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Launch update: World Investment and Political Risk
Just back from London where MIGA launched its new report, World Investment and Political Risk, and partnered with the Financial Times to host a symposium on Managing Global Political Risk. The event was standing-room only, packed with experts from the political risk insurance industry. Debate was lively on the future for investing in emerging markets, managing global political risk in uncertain times, and whether investors are moving into a riskier world. We heard a thought-provoking keynote speech from Bank MD Graeme Wheeler. MIGA’s Executive Vice President Izumi Kobayashi spoke about the need to understand how investors perceive political risk so the industry can become more effective. The bottom line is to help restore foreign direct investment flows to countries that need it most. One of the panelists, Herta von Stiegel from the private equity firm Ariya Capital Group, spoke passionately about the need for private sector investment in Africa. She sees the continent as having excellent opportunities, especially for impact investors—those who want to see a return on their investment while having a strategic impact on the ground that helps reduce poverty.
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Awesome!
I'm so excited that MIGA is blogging! Thanks for the Wheeler Address. I've been waiting for details to emerge from the conference. It looked like a superb lineup!
Private sector investment in
Private sector investment in Africa could definitely be a benefit. Their is always a political risk. In my opinion you need to look for private investors that have the financial stability and that have a good reputation. If these companies are meeting their payroll, financially stable, and have political ties that would help increase the probability of other private investors taking interest, I think it could be a "win win" situation. They need encouragement that their investments will help those that are in poverty.
http://blogs.worldbank.org/miga/lets-have-more-of-these
Why was regulatory discrimination against risk not discussed?
I just cannot understand how MIGA could write a 104 page long report on World Investment and political risk in emerging countries and not reference the issue of how the capital requirements for banks discriminate against perceived risks based on credit ratings.
That regulatory pillar, unwillingly and clearly unknowingly to most, places, one way or another, an additional layer of costs on top of what the market would ordinary charge for risk.
additional info
Thanks for the post! And I have come across an interview with Izumi Kobayashi on a web http://www.mp3hunting.com/ mp3 source. Really, we should understand how investors perceive political risk so the industry. The bottom line is to help restore foreign direct investment flows to countries that need it most. Anyways, small things always add up and make a big effect. :)
Re:
It is about time to start working on the world investment and consider political risk, and as it was mentioned in the post to create and develop the private sector in africa, maybe it could help a bit to increase the economic sector and capture more investors from the world. Besides, if we plan this considering all the basic investment risks (I got interested and made a small research on this topic http://bytesland.com/investment+risk ), the losses can be avoided.
Private sector investment in
Private sector investment in Africa could definitely be a benefit. Their is always a political risk. In my opinion you need to look for private investors that have the financial stability and that have a good reputation. If these companies are meeting their payroll, financially stable, and have political ties that would help increase the probability of other private investors taking interest, I think it could be a "win win" situation. They need encouragement that their investments will help those that are in poverty.
I agree that if you can find
I agree that if you can find private investors with the financial stability needed, it could really help Africa. It sounds like Africa could really use more private investors that really pay some time and attendance to solving this poverty problem. I agree with Jeremy and think it could be a "win win situation". The important thing to remember is that it is the poverty we are concerned about, not the political risk.
Responsible Investors...
Ramona,
I think you'll like our most recent blog. "Let's have more of these." This is a great example of a responsible private sector investor making a difference.
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