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