The Multilateral Investment Guarantee Agency (MIGA)
The Multilateral Investment Guarantee Agency (MIGA) is the insurance arm of the World Bank Group (WBG) – providing guarantees to investors and lenders across borders, in the form of political risk insurance and credit enhancement.
MIGA was created in 1988, with a mandate to “promote cross-border private investment in developing countries”. The guarantees that MIGA provides are designed to protect investors from potential losses resulting from non-commercial risks, such as restrictions on currency conversions and transfers, breach of contract, expropriation, war and civil disturbance. Since many developing countries are often classed as ‘risky’ for business and human rights, MIGA’s so-called ‘de-risking’ makes investing in those countries more appealing for commercial banks and companies.
Although MIGA is smaller than other World Bank Group agencies it is projected to grow as the WBG seeks to expand innovative financing models to facilitate private finance. Its role is to deliver the goals of the World Bank and its private sector arm, the International Finance Corporation (IFC). Since July 2024, MIGA has housed a ‘one-stop’ guarantee platform bringing together all of the Bank’s guarantee products and experts to “deliver faster, easier access to guarantees for businesses”, as claimed by World Bank President Ajay Banga. However, using public money to ‘crowd in’ private capital is likely to result in negative social and environmental impacts, as it puts profit before people’s rights and needs.
Recourse’s work on the Multilateral Investment Guarantee Agency
Working with our partners and allied organisations, Recourse critically assesses MIGA’s guarantees for investments in the energy sector as well as for financial intermediaries. These two sectors are critical in determining if the World Bank Group is fulfilling its moral obligation to protect people and the planet through its policies and practices, not least its 2023 commitment to the Paris Agreement. To that end, Recourse also contributes to processes that aim to strengthen the Agency’s accountability.
- In 2024, we examined MIGA’s guarantees for investments in energy projects and found continuous support for fossil gas, a significant contributor to greenhouse gas emissions.
- In 2019 and 2020, we joined a group of civil society organisations in submitting comments and recommendations on the external review of the IFC and MIGA accountability framework, including on the role and effectiveness of the Compliance Advisor/Ombudsman (CAO).
- In 2024, we contributed to joint civil society statements and recommendations on the IFC and MIGA’s Remedy and Responsible Exit Framework.
Browse below for examples of Recourse’s work on the Multilateral Investment Guarantee Agency.
