Publication: International Political Risk Management : Needs of the Present, Challenges for the Future
Loading...
Date
2007
ISSN
Published
2007
Author(s)
Editor(s)
Abstract
The main subjects discussed in this publication, International Political Risk Management: Needs of the Present, Challenges of the Future, -providing coverage based on bilateral investment treaties (BITs), unifying terrorism and traditional political violence insurance, incorporating recent experiences in the power sector in risk management plans, and improving protection against regulatory takings-are at the core of investors' concerns in the current marketplace. The book is organized into 4 parts. Part I discusses new perspectives on political risk insurance products. Part II examines private power projects in emerging markets. Part III focuses on the challenge of managing regulatory risk and Part IV deals with the international political risk insurance industry in 2010.
Link to Data Set
Citation
“Moran, Theodore H.; West, Gerald T.; Martin, Keith. 2007. International Political Risk Management : Needs of the Present, Challenges for the Future. © World Bank. http://hdl.handle.net/10986/6814 License: CC BY 3.0 IGO.”
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication World Investment and Political Risk 2011(Washington, DC: World Bank, 2011-01)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.Publication Old Risks, New Solutions, Or Is It the Other Way Around?(Washington, DC: World Bank, 2013-02-26)Events like the Multilateral Investment Guarantee Agency (MIGA), Georgetown symposium demonstrate that there is much to be learned through the sharing of experiences and thinking together about the critical issues that confront our industry as well as new products and ideas. MIGA opened a new Asian hub in Singapore with underwriters in Hong Kong SAR, China and business development staff in Beijing and Tokyo. This hub aims to capitalize on Asian emerging as a new center of outbound investment growth. We have seen a growing base of investors in China as well as other Asian countries looking to go into the challenging market. MIGA also opened a business development office in Paris, which will focus on new business opportunities in Europe as well as the Middle East and North Africa. We view both of these hubs as providing an excellent opportunity for MIGA to support the economic growth of low-income countries through providing the support to South-South investments. Providing political risk insurance (PRI) for outbound investment from the rich and other middle-income countries has become more important as the level of Foreign Direct Investment (FDI) growth from these countries has increased.Publication Investing with Confidence : Understanding Political Risk Management in the 21st Century(World Bank, 2009)"A investing with confidence: understanding political risk management in the 21st century", is based on papers at the 2008 symposium on international political risk management, host by the Multilateral Investment Guarantee Agency (MIGA) and Georgetown University on December 4, 2008. The symposium was the sixth such event, and coincided with MIGA 20th anniversary. Both of these milestones attest to the importance of political risk insurance (PRI) and the extent to which the PRI market has developed and grown during this period. The last 20 years have seen tremendous growth in both the number and value of projects that have been insured, and a steady and healthy increase in the number of PRI providers in the marketplace. MIGA, for one, has written over $20 billion in guarantees since the agency was established, and has worked with and received support from a wide range of private, public, and multilateral insurers. Events like the MIGA-Georgetown symposium demonstrate that there is much to be learned through the sharing of experiences and thinking together about the critical issues that confront the industry as well as new products and ideas. The chapters presented in this volume provide the reader with important and current insights into the evolving world of political risk insurance and foreign direct investment. The financial crisis presents us incredible challenges, and at the same time, incredible opportunities. Through cooperation and innovation, the author can emerge from the crisis in a stronger position. Making the most of the lessons the author have learned from the past and applying new tools puts us in a position to mitigate the impact of the current crisis on those countries with the least resilience and with the greatest need for continued foreign direct investment, as well as to benefit from new opportunities as the recovery begins and credit flows and investment levels regain momentum.Publication Review of Risk Mitigation Instruments for Infrastructure Financing and Recent Trends and Developments(Washington, DC: World Bank, 2007)The objective of the Review of Risk Mitigation Instruments for Infrastructure Financing and Recent Trends and Developments is to provide a concise yet comprehensive guide as well as reference information for practitioners of infrastructure financing, including private sector financiers and developing country officials. The work is also intended as a reference for institutions offering (or developing) risk mitigation instruments, allowing them to learn from each other's recent practices. The book is organized into five chapters with the following objectives: Chapter 1 Type of Risk Mitigation Instruments: increases awareness of the different types and nature of risk mitigation instruments currently available for private financiers. Chapter 2 Recent Trends in Risk Mitigation: highlights areas in risk mitigation for developing country infrastructure financing receiving recent attention. Chapter 3 Characteristics of Providers and Compatibility: summarizes the characteristics of multilateral, bilateral, and private providers of risk mitigation instruments and the compatibility of those instruments. Chapter 4 Innovative Application of Risk Mitigation Instruments: presents recent developments and innovative applications of risk mitigation instruments through case transactions. Chapter 5 Challenges Ahead: summarizes areas that pose challenges to the use of risk mitigation instruments as catalysts of infrastructure development. The focus of this book is on the multilateral development banks and agencies (that is, The World Bank Group and regional development banks and affiliates) and bilateral development agencies and export credit and investment agencies of major developed countries that have supported the compilation of this information.Publication World Investment and Political Risk 2013(Washington, DC: World Bank Group, 2014)This report seeks to understand investors' perceptions of political risk as they affect Foreign Direct Investment (FDI), as well as the role of the political risk insurance industry in mitigating these risks. It is found that investors continue to rank political risk as a key obstacle to investing in developing countries, though investors classify macroeconomic instability as their top concern over the medium term. The report confirms a continued increase in the use of political risk insurance as a risk-mitigation tool and reaffirms the industry's health and resilience. Providers have met the challenge of these years with new products and innovative ways to use existing tools as well as substantial capacity to meet growing demand. It also looks at breach of contract risk and its causes. The research helps guide investors and insurers when they participate in a project that involves a contract with a developing-country government entity. As private and public sectors continue to increase their cooperation in service of bringing important investments to fruition, this research is particularly timely.
Users also downloaded
Showing related downloaded files
Publication Poverty Reduction in Indonesia : Constructing a New Strategy(Washington, DC, 2001-10-29)The objective of the report is to point at the need for a new poverty strategy, and the areas of action it should cover, where each area should be specifically discussed, addressing the lives of Indonesia's poor, and the tradeoffs policymakers will need to consider, based on the belief that this poverty strategy should emerge from a broad dialogue among stakeholders. First, in broadening poverty, the report looks at the facts of the late 1990s crisis, which revealed the precariousness of Indonesia's gains in reducing expenditure-based poverty. Thus to extend those gains, the poverty strategy needs to be defined, and then redeveloped by acknowledging the multidimensional reality of poverty, and, it is this notion which will lead to making the strategic choices. Second, within the country's political transition to a democratic, decentralized mode of governance, a poverty strategy needs to be consistent with an empowered populace, and democratic policymaking mechanisms. In creating a policy environment for raising the incomes of the poor, the report identifies the resumption of rapid sustainable growth, with rising real wages, employment opportunities, and, limited inflation, including the economic empowerment of the poor, enhanced by poverty-focused public expenditures. Inevitably, the provision of core public services is an area which should address the people's will in local governance policies, focusing on education and health, while providing appropriate infrastructure, and developing safety nets.Publication Impact Evaluation in Practice, Second Edition(Washington, DC: Inter-American Development Bank and World Bank, 2016-09-13)The second edition of the Impact Evaluation in Practice handbook is a comprehensive and accessible introduction to impact evaluation for policy makers and development practitioners. First published in 2011, it has been used widely across the development and academic communities. The book incorporates real-world examples to present practical guidelines for designing and implementing impact evaluations. Readers will gain an understanding of impact evaluations and the best ways to use them to design evidence-based policies and programs. The updated version covers the newest techniques for evaluating programs and includes state-of-the-art implementation advice, as well as an expanded set of examples and case studies that draw on recent development challenges. It also includes new material on research ethics and partnerships to conduct impact evaluation. The handbook is divided into four sections: Part One discusses what to evaluate and why; Part Two presents the main impact evaluation methods; Part Three addresses how to manage impact evaluations; Part Four reviews impact evaluation sampling and data collection. Case studies illustrate different applications of impact evaluations. The book links to complementary instructional material available online, including an applied case as well as questions and answers. The updated second edition will be a valuable resource for the international development community, universities, and policy makers looking to build better evidence around what works in development.Publication Boom, Bust and Up Again? Evolution, Drivers and Impact of Commodity Prices: Implications for Indonesia(World Bank, Jakarta, 2010-12)Indonesia is one of the largest commodity exporters in the world, and given its mineral potential and expected commodity price trends, it could and should expand its leading position. Commodities accounted for one fourth of Indonesia's Gross Domestic Product (GDP) and more than one fifth of total government revenue in 2007. The potential for further commodity growth is considerable. Indonesia is the largest producer of palm oil in the world (export earnings totaled almost US$9 billion in 2007 and employment 3.8 million full-time jobs) and the sector has good growth prospects. It is also one of the countries with the largest mining potential in view of its second-largest copper reserves and third-largest coal and nickel reserves in the world. This report consists of seven chapters. The first six chapters present an examination and an analysis of the factors driving increased commodity prices, price forecasts, economic impact of commodity price increases, effective price stabilization policies, and insights from Indonesia's past growth experience. The final chapter draws on the findings of the previous chapters and suggests a development strategy for Indonesia in the context of high commodity prices. This section summarizes the contents of the chapters and their main findings.Publication World Development Report 2004(World Bank, 2003)Too often, services fail poor people in access, in quality, and in affordability. But the fact that there are striking examples where basic services such as water, sanitation, health, education, and electricity do work for poor people means that governments and citizens can do a better job of providing them. Learning from success and understanding the sources of failure, this year’s World Development Report, argues that services can be improved by putting poor people at the center of service provision. How? By enabling the poor to monitor and discipline service providers, by amplifying their voice in policymaking, and by strengthening the incentives for providers to serve the poor. Freedom from illness and freedom from illiteracy are two of the most important ways poor people can escape from poverty. To achieve these goals, economic growth and financial resources are of course necessary, but they are not enough. The World Development Report provides a practical framework for making the services that contribute to human development work for poor people. With this framework, citizens, governments, and donors can take action and accelerate progress toward the common objective of poverty reduction, as specified in the Millennium Development Goals.Publication World Development Report 2009(World Bank, 2009)Places do well when they promote transformations along the dimensions of economic geography: higher densities as cities grow; shorter distances as workers and businesses migrate closer to density; and fewer divisions as nations lower their economic borders and enter world markets to take advantage of scale and trade in specialized products. World Development Report 2009 concludes that the transformations along these three dimensions density, distance, and division are essential for development and should be encouraged. The conclusion is controversial. Slum-dwellers now number a billion, but the rush to cities continues. A billion people live in lagging areas of developing nations, remote from globalizations many benefits. And poverty and high mortality persist among the world’s bottom billion, trapped without access to global markets, even as others grow more prosperous and live ever longer lives. Concern for these three intersecting billions often comes with the prescription that growth must be spatially balanced. This report has a different message: economic growth will be unbalanced. To try to spread it out is to discourage it to fight prosperity, not poverty. But development can still be inclusive, even for people who start their lives distant from dense economic activity. For growth to be rapid and shared, governments must promote economic integration, the pivotal concept, as this report argues, in the policy debates on urbanization, territorial development, and regional integration. Instead, all three debates overemphasize place-based interventions. Reshaping Economic Geography reframes these debates to include all the instruments of integration spatially blind institutions, spatially connective infrastructure, and spatially targeted interventions. By calibrating the blend of these instruments, today’s developers can reshape their economic geography. If they do this well, their growth will still be unbalanced, but their development will be inclusive.