World Investment and Political Risk 2011
The mission of the Multilateral Investment Guarantee Agency (MIGA) is to promote foreign direct investment (FDI) into developing countries to support economic growth, reduce poverty, and improve people's lives. As part of this mandate, the agency seeks to foster a better understanding of invest...
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| Format: | Publication |
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Washington, DC: World Bank
2013
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| Online Access: | http://hdl.handle.net/10986/12430 |
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okr-10986-12429 |
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oai_dc |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
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en_US |
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Access to financing accounting adverse effect adverse effects arbitral awards arbitration banking sector banking system barrier brokers budget deficits business environments Capital Flows capital markets capital requirements checks civil wars commodity commodity prices contract renegotiations contractual obligations convertibility restrictions Copyright Clearance Copyright Clearance Center corporate investment Corporate investor Corporate investors credit agency credit default credit default swap credit default swaps credit market Currency devaluation current account balances debt crises debt crisis default risk democracies democracy demographic deregulation developing countries Developing country developing economies domestic economies domestic investors domestic market domestic markets downside risks drivers economic conditions economic crises economic crisis economic downturn Economic Empowerment economic growth economic policies economic recovery emerging markets environmental impacts equity flows equity index Export credit exporters exposure Expropriation expropriation risk Expropriations Finance Corporation financial crisis financial flows Financial instability financial institutions Financial sector financial volatility fiscal consolidation fiscal deficits foreign banks foreign companies foreign currency Foreign Direct Investment Foreign Direct Investments foreign exchange Foreign Investment foreign investments Foreign Investors General Insurance global economy global investors good governance government deficit government guarantees government intervention government regulation Gross domestic product host countries host country host government host governments income income streams income taxes inflation inflationary pressures Innovation Insurance insurance agencies Insurance Industry Insurance Market insurer intangible International Bank International emerging markets International Finance international investment international investors international trade investing Investment Corporation Investment Disputes Investment Flows investment insurance investment opportunities Investment Plans investment projects investment regimes investor perceptions investor perspectives investor uncertainty issuance liability local currency low-income countries low-income economies macroeconomic data Macroeconomic instability macroeconomic stability market conditions market pricing middle-income countries Monetary Fund motivation Multilateral Investment Guarantee Agency natural resources net debt new markets non-performing loans outsourcing policy response political institutions political power Political Regime political regimes Political Risk Political Risk Insurance Political Risks political stability political system political systems portfolio Private Capital Private Capital Flows private creditors Private debt Private Investment Private Investments private investor private investors Private Market productivity property rights public policy Public utilities rate of growth regime change regulatory agencies regulatory frameworks regulatory oversight regulatory regime repayment repudiation reputation reputations return risk assessment risk factor Risk Management risk of expropriation rule of law Settlement Sovereign debt sovereign risk stocks sub-national entities suppliers tax tax revenues Terrorism Transparency Transparency Initiative treaties underwriters underwriting withdrawal world economy World Trade |
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Access to financing accounting adverse effect adverse effects arbitral awards arbitration banking sector banking system barrier brokers budget deficits business environments Capital Flows capital markets capital requirements checks civil wars commodity commodity prices contract renegotiations contractual obligations convertibility restrictions Copyright Clearance Copyright Clearance Center corporate investment Corporate investor Corporate investors credit agency credit default credit default swap credit default swaps credit market Currency devaluation current account balances debt crises debt crisis default risk democracies democracy demographic deregulation developing countries Developing country developing economies domestic economies domestic investors domestic market domestic markets downside risks drivers economic conditions economic crises economic crisis economic downturn Economic Empowerment economic growth economic policies economic recovery emerging markets environmental impacts equity flows equity index Export credit exporters exposure Expropriation expropriation risk Expropriations Finance Corporation financial crisis financial flows Financial instability financial institutions Financial sector financial volatility fiscal consolidation fiscal deficits foreign banks foreign companies foreign currency Foreign Direct Investment Foreign Direct Investments foreign exchange Foreign Investment foreign investments Foreign Investors General Insurance global economy global investors good governance government deficit government guarantees government intervention government regulation Gross domestic product host countries host country host government host governments income income streams income taxes inflation inflationary pressures Innovation Insurance insurance agencies Insurance Industry Insurance Market insurer intangible International Bank International emerging markets International Finance international investment international investors international trade investing Investment Corporation Investment Disputes Investment Flows investment insurance investment opportunities Investment Plans investment projects investment regimes investor perceptions investor perspectives investor uncertainty issuance liability local currency low-income countries low-income economies macroeconomic data Macroeconomic instability macroeconomic stability market conditions market pricing middle-income countries Monetary Fund motivation Multilateral Investment Guarantee Agency natural resources net debt new markets non-performing loans outsourcing policy response political institutions political power Political Regime political regimes Political Risk Political Risk Insurance Political Risks political stability political system political systems portfolio Private Capital Private Capital Flows private creditors Private debt Private Investment Private Investments private investor private investors Private Market productivity property rights public policy Public utilities rate of growth regime change regulatory agencies regulatory frameworks regulatory oversight regulatory regime repayment repudiation reputation reputations return risk assessment risk factor Risk Management risk of expropriation rule of law Settlement Sovereign debt sovereign risk stocks sub-national entities suppliers tax tax revenues Terrorism Transparency Transparency Initiative treaties underwriters underwriting withdrawal world economy World Trade Multilateral Investment Guarantee Agency World Investment and Political Risk 2011 |
| description |
The mission of the Multilateral Investment Guarantee Agency (MIGA) is to promote foreign direct investment (FDI) into developing countries to support economic growth, reduce poverty, and improve people's lives. As part of this mandate, the agency seeks to foster a better understanding of investors' perceptions of political risk as they relate to FDI, as well as the role of the political risk insurance (PRI) industry in mitigating these risks. Today's economic turbulence and fragility in developed countries are again posing challenges for the global economy. Developing countries are feeling the impact through multiple channels, including through the flows of FDI and private capital. Having rebounded sharply in 2010, FDI flows to developing countries continued to increase in 2011, but are expected to moderate going forward. The report highlights once again the salience of political risk as an important concern for multinational enterprises that seek to invest in developing countries. This is also reflected in the increased issuance of new political risk insurance in 2010, a trend that seems to be continuing in 2011, helped by a growing awareness of insurance as a risk-mitigation tool. This year the report also pays special attention to the FDI picture in the Middle East and North Africa region in light of the Arab Spring, as well as the reaction of multinational enterprises to these developments. This year's report puts a spotlight on expropriation, a political risk with a long and recurring history, and examines motivations of host-country governments in deciding whether to expropriate. The report also highlights the role of political or economic shocks in triggering expropriations. It finds that investor disputes are more likely to be resolved by democratically elected governments rather than non-democratic regimes. This suggests that the propensity to expropriate is significantly higher in countries with non-democratic regimes, a finding that should be of interest to investors who are more concerned about political stability than about regime type and political institutions. Research conducted for this report, including the MIGA- Economist Intelligence Unit (EIU) survey and discussions with London-based private sector PRI underwriters and brokers, showed that the views of investors and PRI providers regarding regime type and expropriation risk differ slightly. Underwriters and brokers did not find the empirical results surprising and agreed that these results support their overall underwriting views. |
| format |
Publications & Research :: Publication |
| author |
Multilateral Investment Guarantee Agency |
| author_facet |
Multilateral Investment Guarantee Agency |
| author_sort |
Multilateral Investment Guarantee Agency |
| title |
World Investment and Political Risk 2011 |
| title_short |
World Investment and Political Risk 2011 |
| title_full |
World Investment and Political Risk 2011 |
| title_fullStr |
World Investment and Political Risk 2011 |
| title_full_unstemmed |
World Investment and Political Risk 2011 |
| title_sort |
world investment and political risk 2011 |
| publisher |
Washington, DC: World Bank |
| publishDate |
2013 |
| url |
http://hdl.handle.net/10986/12430 |
| _version_ |
1764422351322087424 |
| spelling |
okr-10986-124292021-04-23T14:03:06Z World Investment and Political Risk 2011 Multilateral Investment Guarantee Agency Access to financing accounting adverse effect adverse effects arbitral awards arbitration banking sector banking system barrier brokers budget deficits business environments Capital Flows capital markets capital requirements checks civil wars commodity commodity prices contract renegotiations contractual obligations convertibility restrictions Copyright Clearance Copyright Clearance Center corporate investment Corporate investor Corporate investors credit agency credit default credit default swap credit default swaps credit market Currency devaluation current account balances debt crises debt crisis default risk democracies democracy demographic deregulation developing countries Developing country developing economies domestic economies domestic investors domestic market domestic markets downside risks drivers economic conditions economic crises economic crisis economic downturn Economic Empowerment economic growth economic policies economic recovery emerging markets environmental impacts equity flows equity index Export credit exporters exposure Expropriation expropriation risk Expropriations Finance Corporation financial crisis financial flows Financial instability financial institutions Financial sector financial volatility fiscal consolidation fiscal deficits foreign banks foreign companies foreign currency Foreign Direct Investment Foreign Direct Investments foreign exchange Foreign Investment foreign investments Foreign Investors General Insurance global economy global investors good governance government deficit government guarantees government intervention government regulation Gross domestic product host countries host country host government host governments income income streams income taxes inflation inflationary pressures Innovation Insurance insurance agencies Insurance Industry Insurance Market insurer intangible International Bank International emerging markets International Finance international investment international investors international trade investing Investment Corporation Investment Disputes Investment Flows investment insurance investment opportunities Investment Plans investment projects investment regimes investor perceptions investor perspectives investor uncertainty issuance liability local currency low-income countries low-income economies macroeconomic data Macroeconomic instability macroeconomic stability market conditions market pricing middle-income countries Monetary Fund motivation Multilateral Investment Guarantee Agency natural resources net debt new markets non-performing loans outsourcing policy response political institutions political power Political Regime political regimes Political Risk Political Risk Insurance Political Risks political stability political system political systems portfolio Private Capital Private Capital Flows private creditors Private debt Private Investment Private Investments private investor private investors Private Market productivity property rights public policy Public utilities rate of growth regime change regulatory agencies regulatory frameworks regulatory oversight regulatory regime repayment repudiation reputation reputations return risk assessment risk factor Risk Management risk of expropriation rule of law Settlement Sovereign debt sovereign risk stocks sub-national entities suppliers tax tax revenues Terrorism Transparency Transparency Initiative treaties underwriters underwriting withdrawal world economy World Trade The mission of the Multilateral Investment Guarantee Agency (MIGA) is to promote foreign direct investment (FDI) into developing countries to support economic growth, reduce poverty, and improve people's lives. As part of this mandate, the agency seeks to foster a better understanding of investors' perceptions of political risk as they relate to FDI, as well as the role of the political risk insurance (PRI) industry in mitigating these risks. Today's economic turbulence and fragility in developed countries are again posing challenges for the global economy. Developing countries are feeling the impact through multiple channels, including through the flows of FDI and private capital. Having rebounded sharply in 2010, FDI flows to developing countries continued to increase in 2011, but are expected to moderate going forward. The report highlights once again the salience of political risk as an important concern for multinational enterprises that seek to invest in developing countries. This is also reflected in the increased issuance of new political risk insurance in 2010, a trend that seems to be continuing in 2011, helped by a growing awareness of insurance as a risk-mitigation tool. This year the report also pays special attention to the FDI picture in the Middle East and North Africa region in light of the Arab Spring, as well as the reaction of multinational enterprises to these developments. This year's report puts a spotlight on expropriation, a political risk with a long and recurring history, and examines motivations of host-country governments in deciding whether to expropriate. The report also highlights the role of political or economic shocks in triggering expropriations. It finds that investor disputes are more likely to be resolved by democratically elected governments rather than non-democratic regimes. This suggests that the propensity to expropriate is significantly higher in countries with non-democratic regimes, a finding that should be of interest to investors who are more concerned about political stability than about regime type and political institutions. Research conducted for this report, including the MIGA- Economist Intelligence Unit (EIU) survey and discussions with London-based private sector PRI underwriters and brokers, showed that the views of investors and PRI providers regarding regime type and expropriation risk differ slightly. Underwriters and brokers did not find the empirical results surprising and agreed that these results support their overall underwriting views. 2013-02-20T18:58:05Z 2013-02-20T18:58:05Z 2011-01 978-0-8213-8850-1 http://hdl.handle.net/10986/12430 en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank Washington, DC: World Bank Publications & Research :: Publication Publications & Research |