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Sovereign Wealth Funds and Long-Term Development Finance : Risks and OpportunitiesSovereign wealth funds represent a large
 and growing pool of savings. An increasing number of these
 funds are owned by natural resource exporting countries and
 have a variety of objectives, including intergenerational
 equity and macroeconomic stabilization. Traditionally, these
 funds have invested in external assets, especially
 securities traded in major markets. But the persistent
 infrastructure financing gap in developing countries has
 motivated some governments to encourage their sovereign
 wealth funds to invest domestically. This paper proposes
 some basic elements of a conceptual framework to create a
 system of checks and balances to help ensure that the
 sovereign wealth funds do not undermine macroeconomic
 management or become a vehicle for politically driven
 "investments." First, the risks and opportunities
 of domestic investment by sovereign wealth funds are
 analyzed. Central issues are the relationship of sovereign
 wealth fund financing to the budget process and to the
 procurement systems of sector ministries, as well as the
 establishment of appropriate benchmarks and safeguards to
 ensure the integrity of investment decisions. The paper
 argues that a well-governed sovereign wealth fund, with a
 sound mandate and professional management and staffing, can
 possibly improve the quality of the public investment
 program. But its mandate should not duplicate that of other
 government institutions with investment mandates, such as
 the budget, the national development bank, the investment
 authority, and state-owned enterprises. Establishing rules
 on the type of investment (for example, commercial and/or
 quasi-commercial) and its modalities (for example, no
 controlling stakes, leveraging private investment) is one
 way to ensure separation between the activities of the
 sovereign wealth fund and those of other institutions. The
 critical issue remains that of limiting the sovereign wealth
 fund's investment scope to that appropriate for a
 wealth fund. If investments that generate quasi-market
 returns are permitted, the size of the home bias should be
 clearly stipulated and these investments should be reported separately.
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MIGA relatorio anual de 2009 MIGA rapport annuel 2009 MIGA informe anual 2009For Multilateral Investment Guarantee Agency (MIGA), the challenge this year has been promoting foreign direct investment (FDI) into developing countries at a time when investment flows are slumping. While many investors shied away from projects because of the difficult investment climate, those who have been doing business recognized the need for the kind of political risk guarantees MIGA provides. This year, MIGA provided $1.4 billion in guarantees for a range of projects, down from the agency's banner year of $2.1 billion in guarantees in 2008. But MIGA also experienced far fewer cancellations of existing coverage this year than in previous years. MIGA is also supporting projects to help the most vulnerable. This year, the agency entered into an innovative contract to facilitate up to $100 million of investments to small and medium-size enterprises in Sub-Saharan Africa, businesses which account for most of the continent's jobs. MIGA has also focused on internal changes. At a time of financial crisis, promoting FDI depends on moving quickly to meet the emerging needs of clients. This will enhance MIGA's operational flexibility and procedural efficiency, and should lead to more business while strengthening MIGA's position as a self-standing enterprise.
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MIGA Annual Report 2009For Multilateral Investment Guarantee
 Agency (MIGA), the challenge this year has been promoting
 foreign direct investment (FDI) into developing countries at
 a time when investment flows are slumping. While many
 investors shied away from projects because of the difficult
 investment climate, those who have been doing business
 recognized the need for the kind of political risk
 guarantees MIGA provides. This year, MIGA provided $1.4
 billion in guarantees for a range of projects, down from the
 agency's banner year of $2.1 billion in guarantees in
 2008. But MIGA also experienced far fewer cancellations of
 existing coverage this year than in previous years. MIGA is
 also supporting projects to help the most vulnerable. This
 year, the agency entered into an innovative contract to
 facilitate up to $100 million of investments to small and
 medium-size enterprises in Sub-Saharan Africa, businesses
 which account for most of the continent's jobs. MIGA
 has also focused on internal changes. At a time of financial
 crisis, promoting FDI depends on moving quickly to meet the
 emerging needs of clients. This will enhance MIGA's
 operational flexibility and procedural efficiency, and
 should lead to more business while strengthening MIGA's
 position as a self-standing enterprise.