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World Development Report 2012

Arab World: A New Social Contract

International Economics and Trade

How Risky, Really, Is the Arab World for Investors?

Submitted by Paul Barbour on Tue, 06/22/2010 - 15:57
On Political Risk and Emerging Markets
 
 
Recent events surrounding the Dubai World debt standstill raise broader questions about the political risks of investing in the Arab World. The good news is that growth and FDI have risen markedly in recent years; yet, risks undoubtedly remain. I researched the issue in depth for a new Perspectives from the Multilateral Investment Guarantee Agency (MIGA) that highlights the diversity of risks within the Arab World.
 
The Arab World, like other developing regions, provides both potential risks and rewards for international investors. The most important message from the Perspectives piece, though, is that risks vary significantly by country, by sector, and by project. As a result, it’s crucial not to take a one-size-fits-all approach to investing in the region.
 
Case in point: The Arab World is perceived as being prone to war and civil disturbance. Yet available data from the Berne Union shows no claims for war and civil disturbance in Arab countries. Here we see a considerable gap between perceptions and reality.

Iraq: Meaningful Reconstruction and Development

Submitted by Louis Bedoucha on Wed, 05/12/2010 - 16:15
On Political Risk and Emerging Markets

I recently represented MIGA in a special working group of the OECD focused on Iraqi reconstruction.  It was an interesting and useful gathering, attended by Iraqi civil servants from across the administration, export credit agencies, and of course private sector representatives interested in doing business in the country.

Experts Weigh in on FDI and Political Risk

Submitted by Michael Strauss on Tue, 05/11/2010 - 14:44
On Political Risk and Emerging Markets

On Wednesday, May 5, 2010, MIGA convened a panel discussion on the state of political risk in the world economy, which proposed to answer the pregnant question: “Are we moving into a riskier world?”  

MIGA Chief Operating Officer, James Bond, moderated a panel that included:

Lebanon: Open for Business

Submitted by James Bond on Tue, 02/23/2010 - 16:10
On Political Risk and Emerging Markets

Lebanon is a country of expatriates.  Nine million of its 11 million inhabitants live abroad, in places as diverse as Terra del Fuego, Côte d’Ivoire, and Columbus, Ohio. The Lebanese Diaspora remains profoundly committed to its mother country, remitting money to family back home, investing, and visiting as tourists. 

 

Political Risk Perceptions and the Financial Crisis

Submitted by Michael Christopher on Tue, 02/23/2010 - 11:24
On Political Risk and Emerging Markets

MIGA recently launched its new World Investment and Political Risk report in London to a gathering of investment and political risk experts. Based on a joint MIGA – EIU Political Risk Survey conducted last year, the report underscores that political risk remains one of the main obstacles to FDI in emerging markets.

Investor Interest in Sierra Leone Grows

Submitted by Michael Durr on Thu, 12/03/2009 - 15:24
On Political Risk and Emerging Markets

I'm in a unique position in MIGA, responsible for fielding initial investor inquiries about MIGA’s political risk guarantees. Over the last few years I have noticed a jump among investors considering MIGA cover in several countries. One of those countries is Sierra Leone. 

Why Dwell Time Matters

Submitted by Henry Sandee, co-authors: Julia Oliver, Natalia Cubillos Salcedo on Tue, 02/07/2012 - 00:00
On Growth & Crisis

The state-owned operator of Indonesia’s Tanjung Priok Port is taking major steps to decrease congestion at the country’s main gateway. The company, Pelindo II, recently announced it will increase storage fees at the port to discourage shippers from leaving containers there for long periods of time. It has also said it will install a new information technology system to better monitor and direct traffic at the port.

The two initiatives are an effort to boost the performance of a port that handles two-thirds of Indonesia’s international trade. The container traffic at Tanjung Priok has grown at a rate of about 20 percent the last two years and is expected to double by 2015. But containers arriving at the port spend an average of 6 days to obtain clearance and get removed, one of the highest “dwell time” rates in the region and up from 4.9 days in 2010.

Economists and government officials are trying to bring down this number. As a statistic, dwell time is a vital measure of a country’s ease of trade. When dwell time is high,

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