MIGA and foreign direct investment: evaluating developmental by Gerald T. West

By Gerald T. West

Publication by means of West, Gerald T., Tarazona, Ethel I.

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9 It was gratifying to verify that about half of the evaluated projects provided specific "value-added" training (see Table 4). Table 4. Type of Training Provided by MIGA-Assisted Projects Sector Total projects General training Specialized project training Financial Services 14 14 4 Manufacturing 7 7 6 Other Services 4 4 4 Total 25 25 14 9 MIGA has not assessed the benefits of general training versus specific training. Specialized training in the context of this analysis refers to training programs, alongside general training, available exclusively to employees involved in the project enterprise.

MIGA's evaluation methodology was designed to optimize the use of staff time and minimize costs. MIGA also sought to ensure that, as far as possible, the project evaluation process was not too burdensome to the Agency's clients. Mr. Wiener also recommended that MIGA should assess the financial, technical, environmental, economic, and social benefits of its projects, "mainly on the basis of information in sponsors' applications, it being understood that material misstatement could invalidate future claims" (emphasis added).

Since it was designed as a special purpose entity, MIGA was given a modest capitalization and ordered to conduct itself in a financially prudent manner. Article 25 of the Convention states: The Agency shall carry out its activities in accordance with sound business and prudential financial management practices with a view to maintaining under all circumstances its ability to meet its financial obligations. A significant number of constraining parameters were specified in the Convention and the Operational Regulations with respect to how the Agency can offer its guarantees.

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