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Second thoughts on MIGA

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Intereconomics

Abstract

The world Bank’s proposal to establish a new international organization whose purpose would be insuring foreign direct investment (FDI) against political risk was launched at its annual meeting in Seoul in October 1985. This paper is an attempt to evaluate the proposed Multilateral Investment Guarantee Agency (MIGA) from the point of view of allocation theory.

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References

  1. Commentary on the Convention Establishing the Multilateral investment Guarantee Agency, p. 1; Ibrahim Sbihata: The Role of ICSD and the projected MIGA, In: Außenwirtschaft, Vol. 41 (1985). pp. 111–112.

  2. Ibrahim Shihata, op. cit., The Role of ICSD and the projected MIGA, in: Außenwirtschaft, Vol. 41 (1985). p. 116.

  3. Commentary, op. cit., on the Convention Establishing the Multilateral investment Guarantee Agency, p. 1; Ibrahim Sbihata: The Role of ICSD and the projected MIGA, in: Außenwirtschaft, Vol. 41 (1985), p. 8.

  4. Ibrahim Shihata: Increasing private capital flows to LDCs, in: Finance & Development, Dec. 1984, p. 7.

  5. Ibid. Ibrahim Shihata: Increasing private capital flows to LDCs, in: Finance & Development, Dec. 1984, p. 7.

  6. Ibrahim Shihata: The Role of…, op. cit. The Role of ICSD and the projected MIGA, in: Außenwirtschaft, Vol. 41 (1985).p. 121

  7. World Bank: Multilateral Investment Guarantee Agency, Questions and Answers, July 3, 1984, pp. 8, 12, 31, 34.

  8. For a treatment of this problem see Hans Werner Sinn: The Efficiency of Insurance Markets, in: European Economic Review, Vol. 11 (1978), pp. 329–335.

  9. Marie-Chantal Boutard-Labarde: Nationalisations imposées, nationallsations négoolées, Paris 1984; Louis T. Wells: Negotiating with third world governments, in: Harvard Business Review, Vol. 55, No. 1, 1977, pp. 72–80.

  10. Stephan J. Kobrin: Expropriation as an attempt to control foreign firms in LDCs: Trends from 1960 to 1979, in. international Studies Quarterly, Vol. 28 (1984), p. 337.

  11. O. E. Bring: The impact of developing states on international customary law concerning protection of foreign property. In: Scandinavian Studies in Law, Vol. 24 (1980), pp. 97–132.

  12. Stephan J. Kobrin, op. cit.; Expropriation as an attempt to control foreign firms in LDCs: Trends from 1960 to 1979, in: international Studies Quarterly, Vol. 28 (1984), David Jodice: Sources of change in third world regimes for foreign direct investment, 1968–1976, in: International Organization, Vol. 34 (1980), pp. 177–206.

  13. David Jodice, op. cit., Sources of change in third world regimes for foreign direct investment, 1968–1976, in: International Organization, Vol. 34, (1980), Table 1.

  14. Ibid., David Jodice, op. cit., Sources of change in third world regimes for foreign direct investment, 1968–1976, in: International Organization, Vol. 34 (1980), p. 199.

  15. Paulgeorg Juhl: Direktinvestionen in Entwicklungsländern unter dem Einfluß politischer Risiken, Munich 1983, p. 224.

  16. Ibrahim Shihata, Increasing…, op. cit., Ibrahim Shihata: Increasing private capital flows to LDCs, in: Finance & Development, Dec. 1984, p. 6.

  17. Rotand Vaubel: The moral hazard of IMF lending, in: World Economy, Vol. 6 (1983), p. 293.

  18. OECD: Investing in developing countries, 5th, rev. ed., Paris 1983, pp. 39ff.

  19. Ibid., OECD: Investing in developing countries, 5th. rev. ed., Paris 1983, p. 33.

  20. World Bank: Questions and Answers, op. cit., Multilateral Investment Guarantee Agency, Questions and answers, July 3, 1984, p. 16.

  21. C. Tyler: Political risk is private cover here to stay?, in: The Banker April 1984, pp. 39–42; Julian Hadcliffe: Coverage of political risk by the private insurance Industry, in: Außenwirtschaft, Vol, 41 (1986), pp. 135–139.

  22. C. Tyler, op. cit. Political risk: Is private cover here to stay?, in: The Banker April 1984 pp. 39–42.

  23. Julian Radcliffe, op. cit., Converage of political risk by the private insurance industry, in: Außenwirtschaft. Vol. 41 (1986), pp. 135–136.

  24. Commentary, op. cit., on the Convention Establishing the Multilateral Investment Guarantee Agency, p. 1; Ibrahim Shihatat: The Role of ICSID and the projected MIGA in: Außenwirtschaft, Vol, 41 (1986), p. 1.

  25. Harold Demsetz: Information and efficiency: Another viewpoint, in: Journal of Law and Economics, Vol. 12 (1969), pp. 1–22.

  26. H. W. Sinn, op. cit. The Efficiency of Insurance Markets, in: European Economic Review, Vol. 11 (1978), pp. 329–335.

  27. H. W. Sinn, op. cit. The Efficiency of Insurance Markets, in: European Economic Review, Vol. 11 (1978), pp. 329–335.

  28. Roland Vaubel: The international organizations and the international debt problem: The next steps, in: The Report of the Technical Committee of the Global Economic Action Institute, New York 1985.

  29. R. M. Hogarth, H. Kunreuther: Ambiguity and insurance decisions, in: American Economic Review, Vol. 75 (1985). Papers and Proceedings, pp. 386–390.

  30. Art 22 (b) (it) of the Convention allows for this possibility.

  31. Roland Vaubel: The international organization…, op. cit. and the international debt problem: The next steps, in: The Report of the Technical Committe of the Global Economic Action Institute, New York 1985.

  32. Commentary, op. cit., on the convention Establishing the Multilateral Investment Guarantee Agency, p. 1; Ibrahim Shihata: The Role of ICSD and the projected MIGA in Außenwirtschaft, Vol. 41 (1986). p. 16.

  33. Ibrahim Shihata Increasing private capital flows…, op. cit., Ihrahim Shihata: Increasing private capital flows to LDCs, in: Finance & Development, Dec. 1984, p. 7.

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  1. University of Mannheim, Mannheim

    Stefan Sinn

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  1. Stefan Sinn
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Sinn, S. Second thoughts on MIGA. Intereconomics 21, 269–276 (1986). https://doi.org/10.1007/BF02925172

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