MIGA and Foreign Investment : : Origins, Operations, Policies and Basic Documents of the Multilateral Investment Guarantee Agency.

• Author: Shihata, Ibrahim F. I.
• Place / Publishing House: Boston : : BRILL,, 1987.; ©1987.
• Year of Publication: 1987
• Edition: 1st ed.
• Language: English
• Physical Description: 1 online resource (556 pages)

Table of Contents

Intro -- Title Page -- Copyright Page -- Dedication -- Foreword -- Table of Contents -- Introductory Chapter: ENCOURAGING THE FLOW OF FOREIGN INVESTMENT - THE RELEVANCE OF A MULTILATERAL AGENCY -- I. Determinant Factors of the Volume and Impact of Foreign Investment in Developing Countries -- II. The Investment Climate -- A. Institutional and Policy Aspects -- B. Infrastructural Aspects -- C. Legal Aspects -- D. Political Risk Perceptions -- III. Relevance of a Global Agency for Investment Insurance and Promotion -- IV. Conclusion -- Notes -- PART ONE: THE MAKING OF MIGA: A CASE STUDY OF THE PREPARATION AND ACCEPTANCE OF A MULTILATERAL FINANCIAL CONVENTION -- Chapter One: EARLY HISTORY - THE WORLD BANK'S INVOLVEMENT PRIOR TO MID-1983 -- I. The Earliest Proposals -- II. The 1962 Study and its Impact -- III. The 1966 Draft Articles: IIIA-1 -- IV. The 1968 Draft Articles: IIIA-2 -- V. The 1972 Draft Articles: IIIA-3 -- VI. The Clausen Initiative and the MIIA Outline -- VII. The Seven Staff Studies of 1983 -- VIII. Conclusion -- Notes -- Chapter Two: THE MAKING OF MIGA - A PERSONAL ACCOUNT -- I. Introduction - Personal Background -- II. Devising a Strategy -- III. Formulating a New Proposal -- A. A Broad Objective and Two Basic Functions -- B. A Dual Financing System -- C. A Broader Scope of Coverage -- D. Relationship with Existing Investment Insurance Agencies -- E. A More Acceptable Treatment of Institutional Issues: Linkage with the Bank -- Control of the Agency -- F. Settlement of Disputes -- IV. Mobilizing Support -- V. Choosing the Forum (for Finalization of the Text of the Convention) -- VI. Improving the Chances of Reaching Agreement -- VII. Working Methods -- A. A Credible Secretariat -- B. A Drafting Team -- C. Reference to a Future Preparatory Committee -- D. Referral of Certain Issues to Smaller Groups -- E. Role of the Chairman.

F. Drawing on Experts in Specialized Fields -- G. Acting Within a Tight Working Schedule -- VIII. Reaching Consensus -- IX. Concluding Steps -- Notes -- PART TWO: MIGA'S OPERATIONS: LEGAL AND POLICY ASPECTS OF MIGA'S GUARANTEE OPERATIONS AND OTHER SERVICES -- Chapter Three: ELIGIBILITY REQUIREMENTS OF MIGA's GUARANTEE -- I. Introduction -- II. Eligible Investments -- A. Type and Form of Investment -- 1. Equity Investment -- 2. Equity Type Loans and Guarantees -- 3. Contractual Direct Investment -- 4. Export Credits -- 5. Other Forms of Foreign Investment -- 6. Investment in Kind -- B. Time of the Investment -- III. Eligible Investors and Host Countries -- A. Eligible Investors -- 1. Nature of the Investor -- 2. Nationality of the Investor -- 3. Ownership and Mode of Operations -- B. Eligible Host Countries -- IV. Eligible Risks -- A. Currency Transfer Risk -- B. The Risk of Expropriation and Similar Measures -- 1. Scope of Coverage -- 2. Exclusions from the Expropriation Risk -- 3. Covered Interests -- 4. Effect of Covered Measures -- C. Breach of Contract -- 1. Justification of Coverage -- 2. Restrictions on Coverage -- D. War and Civil Disturbance Risk -- 1. Military Action -- 2. Civil Disturbance -- 3. Place of Covered Events -- 4. Covered Losses -- E. Other Non-Commercial Risks -- Relationship between Coverages -- Notes -- Chapter Four: ADMINISTRATION OF GUARANTEE CONTRACTS: UNDERWRITING, CLAIMS, SUBROGATION AND RECOUPMENT -- I. Introduction -- II. Underwriting - The Process and Conditions of the Issuance of Guarantees -- A. Limits of Guarantee Capacity -- 1. Overall Limitation -- 2. Guarantees of Sponsored Investment -- B. Allocation of Guarantee Capacity -- 1. Specific Allocations of Guarantee Capacity -- 2. Portfolio Diversification -- C. Amount of Guarantee -- D. Project Assessment -- E. Risk Assessment.

1. Relevant Factors: Project Specific and Country Specific Factors -- 2. Enhancement of Risk Profile -- 3. Coinsurance and Reinsurance -- F. Premiums and Fees -- 1. Premiums -- 2. Fees -- G. Required Approvals - Host Country Approval and Approval of Contracts of Guarantee -- 1. Host Country Approval -- 2. Contract Approval -- H. Interaction in the Underwriting Process -- III. Claims Administration -- A. Prescribed Procedures -- B. Valuation of the Loss -- C. Loss Avoidance and Minimization -- IV. Subrogation and Recoupment -- Notes -- Chapter Five: MIGA'S NON-GUARANTEE OPERATIONS -- I. Introduction -- II. The Need for a Comprehensive Promotional Approach - Complementarity between Guarantees and Other Activities of MIGA -- A. Role of Other Agencies -- B. Complementarity of MIGA's Operations -- III. Elements and Funding of MIGA's Comprehensive Promotional Approach -- A. Types of Non-Guarantee Services -- 1. Research -- 2. Information -- 3. Technical Assistance -- 4. Policy Consultations and Advice -- B. Funding of Non-Guarantee Services -- IV. MIGA's Incidental Powers -- V. Conclusion -- Notes -- PART THREE: POLICY AND INSTITUTIONAL ISSUES -- Chapter Six: MIGA AND THE STANDARDS APPLICABLE TO FOREIGN INVESTMENTS -- I. Introduction -- II. Treatment of the Standards Issue in the MIGA Convention -- A. Preamble of the Convention -- B. Article 12(d): Satisfactory Standards as a Prerequisite for MIGA's Guarantees -- 1. Conditions Related to the Investment -- 2. Conditions Related to the Investment Environment in the Host Countries -- C. Article 23(b): MIGA's Role in the Promotion of Satisfactory Standards -- III. Treatment of the Standards Issue in the Regulations -- A. The Specific Investment -- 1. The Requirement that the Investment be Economically Sound -- 2. The Requirement that the Investment Contribute to the Development of the Host Country.

B. Host Country Investment Conditions -- IV. "Consistency with International Law" as the Test of Adequacy of the Law and Practice of the Host Country in the Absence of an Applicable Bilateral Investment Treaty -- A. The Traditional View -- B. U.N. Resolutions -- C. A Treaty-Based Customary Law? -- D. International Case Law -- E. Comparative Domestic Law Practice -- F. Recent Attempts at "Codification" -- G. MIGA's Proposed Approach -- V. Conclusion -- Notes -- Chapter Seven: MIGA AND THE SETTLEMENT OF DISPUTES -- I. Introduction -- II. Disputes Regarding the Interpretation and Application of the Convention -- III. Disputes Resulting from Subrogation -- A. Drafting History -- B. Rationale -- C. Operational Issues -- 1. Conciliation and Arbitration -- 2. Other Methods -- IV. Other Disputes with Members and Disputes with States which have Ceased to be Members -- V. Disputes Arising Under a Guarantee (or Reinsurance) Contract -- A. Arbitration Proceedings -- B. Applicable Law -- VI. Disputes between the Agency and Third Parties Other than Those Already Mentioned -- VII. Disputes Between a Holder of the Agency's Guarantee and a Host Government -- A. The Agency's Contribution to Avoidance of Investment Disputes -- B. The Agency's Role in the Amicable Settlement of Disputes -- VIII. Conclusion -- Notes -- Chapter Eight: MIGA'S ORGANIZATION AND VOTING STRUCTURE -- I. Introduction -- II. Organization and Management of MIGA -- A. The Governing Bodies (the Council and the Board) -- B. The Board/Management Relationship -- C. Powers of MIGA's President -- 1. Distinct Provisions of the MIGA Convention -- 2. Differentiating Facts -- D. Selection of MIGA's Chief Operating Officer -- Linkage with the World Bank and IFC -- III. The Voting Structure in MIGA's Board and Council -- A. Voting Patterns in International Financial Institutions: An Overview.

B. History of the Voting Structure Proposed for MIGA -- 1. Early Drafts -- 2. The 1983 Staff Study -- 3. The Quest for Parity - The 1984 Proposal -- 4. The Debate over the March 1985 Draft - A Compromise in the Making -- 5. The Innovative Outcome -- C. Critique of Article 39 as Adopted -- APPENDICES -- Appendix 1 - Main Features of a Proposed Multilateral Investment Guarantee Scheme, April 30, 1984 -- Appendix 2 - Convention Establishing the Multilateral Investment Guarantee Agency -- Appendix 3 - Commentary on the Convention -- Appendix 4 - Draft Rules and Regulations -- A - Draft By-Laws -- B - Draft Rules of Procedure -- C - Draft Financial Regulations -- D - Draft Operational Regulations -- Appendix 5 - Draft Application Forms -- Appendix 6 - Selected Bibliography on the Guarantee of Investment Against Non-Commercial Risks -- Index -- Principal Publications of the Author.