world_organizations medium MCQ

Which World Bank Group institution focuses specifically on providing political risk insurance and guarantees to encourage private investment in developing countries?

  1. IBRD
  2. IDA
  3. IFC
  4. MIGA

Answer: MIGA

MIGA (Multilateral Investment Guarantee Agency) issues guarantees against non-commercial risks like expropriation, war, civil disturbance, breach of contract, and currency transfer restrictions. This reduces investor perceived risk, catalyzing FDI for infrastructure, manufacturing, and services in emerging economies.

Topic World Bank
Exam Relevance Banking, UPSC, SSC
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