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foreign direct investment

Ethiopia: Uptick in Investor Interest

Michael Durr's picture

Here at MIGA, I’m responsible for fielding initial investor inquiries about our political risk guarantees, which is an interesting vantage point from which to note trends. Last year I blogged about the rising interest of foreign investors in Sierra Leone. Talking with investors around the world interested in emerging markets and examining MIGA’s Preliminary Application (PA) data, I see a similar trend emerging in Ethiopia. Investor interest has grown dramatically.

MIGA was created to promote foreign direct investment into developing countries by mitigating political risk. The agency offers insurance to private investors against

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

Paul Barbour's picture

 

 

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.

Lebanon: Open for Business

James Bond's picture

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. 

Afternoon with Joe—Thoughts on Risk and Foreign Direct Investment

Michael Strauss's picture

My thanks again go out to the World Bank InfoShop for the opportunity to hear and meet former World Bank Chief Economist—and, indeed, Nobel Laureate—Joseph Stiglitz, who came to speak yesterday about his new book, "Freefall: America, Free Markets, and the Sinking of the World Economy".  His trademark frank analysis was both refreshing and enlightening; especially interesting, if troubling, was his view that central bankers’ inflation-hawk instincts will increase the likelihood of a double-dip recession.Freefall

This was a very general presentation about some of the hubristic, anti-regulatory thinking that created the conditions for the recent crisis and the errors in countries’ responses to it.  Stiglitz also excoriated the failures of political will and the power of the strongly entrenched, well-represented interests currently standing in the way of true reform.  These are his views, of course—I make no claims to know enough about what “really” happened to be authoritative on the subject, other than to say that his arguments were persuasive and his examples illuminating.

One subject I was surprised to hear him discuss, however, was the role of interconnected global capital markets in financial crises.  This was a key issue raised after the Asian crisis in the late 1990s; less so for the current “great recession”—although Stiglitz’s tag line that this was a crisis “made in America” and exported around the world reflects a common conclusion of much recent analysis.  

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