Monterrey Consensus

The Monterrey Consensus emerged out of a meeting of the International Conference on Financing for Development in Monterrey, Mexico, in March 2002 . With more than 50 heads of state in attendance, along with representatives of the World Bank, the International Monetary Fund, and the World Trade Organization, a new partnership for global development was conceived.

The Monterrey Consensus is a landmark framework for global development partnership in which the developed and developing countries agreed to take joint actions for poverty reduction. The Monterrey Consensus is distinguished by its recognition of both the need for developing countries to take responsibility for their own poverty reduction and the necessity for rich nations to support this endeavor with more open trade and increased financial aid.

Multilateral Debt Relief Initiative

The Multilateral Debt Relief Initiative provides for 100 percent relief on eligible debt from three multilateral institutions to a group of low-income countries. The initiative is intended to help them advance toward the United Nations' Millennium Development Goals, which are focused on halving poverty by 2015.

Multilateral Investment Guarantee Agency

The Multilateral Investment Guarantee Agency (MIGA) is one of the five organizations included in the World Bank Group. Its mission is to promote foreign direct investment into developing countries by providing risk insurance (guarantees) and credit enhancement and thereby to help support economic growth, reduce poverty, and improve people's lives.

MIGAs operational strategy attracts investors and private insurers into difficult operating environments. MIGA focuses on insuring investments in the areas where it can make the greatest difference:

• Countries eligible for assistance from IDA

• Fragile and conflict-affected environments

• Complex projects that can be transformational, especially in infrastructure and extractive industries

• Middle-income countries where the Agency can have impact

MIGA has comparative advantages in all of these areas—from its unique package of products and ability to restore the business community's confidence to its ongoing collaboration with the public and private insurance market to increase the amount of insurance available to investors.

As a multilateral development agency, MIGA supports only investments that are developmentally sound and meet high social and environmental standards. MIGA applies a comprehensive set of social and environmental performance standards to all projects and offers extensive expertise in working with investors to ensure compliance to these standards.

MIGA offers coverage for five noncommercial risks. Coverages may be purchased individually or in combination:

• Currency inconvertibility and transfer restriction. This coverage protects against losses arising from an investor's inability to legally convert local currency (capital, interest, principal, profits, royalties, and other remittances) into hard currency (dollar, euro, or yen) or to transfer hard currency outside the host country where such a situation results from a government action or failure to act.

• Expropriation. This coverage protects against losses arising from certain government actions that may reduce or eliminate ownership of, control over, or rights to the insured investment.

• War, terrorism, and civil disturbance. This coverage protects against loss from, damage to, or the destruction or disappearance of tangible assets or total business interruption caused by politically motivated acts of war or civil disturbance in the country, including revolution, insurrection, coups d'etat, sabotage, and terrorism.

• Breach of contract. This coverage protects against losses arising from the government's breach or repudiation of a contract with the investor (for example, a concession or a power purchase agreement).

• Nonhonoring of financial obligations. This coverage protects against losses resulting from a failure of a sovereign, subsovereign, or state-owned enterprise to make a payment when due under an unconditional financial payment obligation or guarantee related to an eligible investment.

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