| Username |
Post |
| kalanidhi |
Posted
on 09-Nov-02 12:35 AM
Hi friends,
How are you doing?
This is my opinion about World Bank insurance wing!!! An obscure World Bank agency that guarantees private investment in developing countries, including Nepal, should be abolished and its funds redirected toward efforts that help people and the environment.
Their target is the Multilateral Investment Guarantee Agency (MIGA), which provides corporations and banks with insurance coverage against political risks in developing countries. Armed with a new report, entitled ‘Risky Business’, MIGA’s critics are kicking off a campaign to pressure the US and European governments to cut off funding or withdraw from the agency.
I think MIGA has the worst environmental and public disclosure policies of any World Bank lending agency. It’s more interested in helping multinational corporations than advancing development. MIGA officials reacted sceptically to the report, saying it was filled with factual mistakes and unsubstantiated allegations that reflect the authors’ failure to visit MIGA clients or conduct an in-depth review of MIGA operations. But they said MIGA would conduct a careful review of the critique and issue a formal response.
The bottom line for MIGA’s critics is its alleged lack of accountability on improving the environment. Investments by large multinationals in mines, power plants and other infrastructure projects, the report claims, are poorly monitored and often result in serious pollution and other damage to the local environment.
In conclusion, MIGA has no screening process to ensure that its investments do not benefit corporations that have track records of harming the environment and human rights. MIGA does not explain how making Coke readily available will alleviate poverty or promote health.
Keeping in mind, Nepal is going through so many political crisis and instability, how do MIGA provides corporations and banks with insurance coverage against the risks?? On top of that, corrupted leaders and bureaucrats?!!!!
Kalanidhi Sharma (Upadhaya)
UCLA
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| kalanidhi |
Posted
on 09-Nov-02 10:24 AM
Also I want to remind you that MIGA strategies are poorly monitored and often result in serious pollution and other damage to the local environment.
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| czar |
Posted
on 09-Nov-02 12:37 PM
Kalanidhi,
I would be interested in seeing the numbers that substantiate the contentions. While I am inclined to acknowledge the adage of 'lies, damned lies and statistics' having facts and figures to examine would help the arguments.
Further, it may easy to disagree on metrics used to measure some subjective issues. Even given these limitations, I argue that its easier to consider the thrust of the reports when I can grapple with measurements that clearly support the claims made. If not, while stirring, its merely unfounded rabble rousing.
Let it be clear that I am not rushing to defend the Bank in all its questionable glory. Merely asking for more information to form an opinion.
Still, an interesting issue.
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| svengali |
Posted
on 09-Nov-02 05:16 PM
Not that I am an expert on these issues...
Granted your criticisms have merit, why is there burden always on the other side of the aisle? MIGA is good to the extent that Multinationals will seriously consider investing in risky countries. Without such an institution, the risk factor would only increase. Overt criticism of MIGA would be unproductive even if valid.
If the "investee" country has a gripe, it can toughen its stand and drive a hard bargain. But then the issue becomes they really need these dollars. It is unfair that the game is pegged, of course it is. None of the LDCs started these sort of channels for cross border cooperation and development. And they really cannot go back to the drawing board and start from scratch. Value driven sustainable development (i.e. environmentally sound, stress on equality etc.) would be good for the long run. But what is in the best interest of LDCs is not in the best interest of the Capitalists. so LDCs can either toughen up or submit. If there is total penetration by the western markets everywhere, every country and every culture will have a bland Coca-colized taste and sensibility. From that flattened field, you could pursue reengineering, I suppose.
Naturally world bank agencies, if they seamlessly integrated and threw their weights behind development issues, it would be better in terms of how practice relates to a vision.
Re: Nepal that's probably why its not attracting too much investment right now. Insurance is only so good to the extent that that the offeror's have an expectation of reasonable return (Oh yes bottom line makes a difference). This is including the kickbacks and bribes--> even if so there is no positive return, why'd any investor get in? Irrelevant how responsible their profit seeking model is?
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