Previous Year Question

The Multilateral Investment Guarantee Agency (MIGA), International Finance Corporation (IFC), and International Centre for Settlement of Investment Disputes (ICSID) are institutions of the World Bank Group. The World Bank Group has a formal institutional relationship with the United Nations.

The World Bank Group consists of five institutions:

• International Bank for Reconstruction and Development (IBRD)

• International Development Association (IDA)

• International Finance Corporation (IFC)

• Multilateral Investment Guarantee Agency (MIGA)

• International Centre for Settlement of Investment Disputes (ICSID)

Evaluation of the options:

(a) MIGA: It promotes foreign direct investment in developing economies by providing guarantees against non-commercial risks such as expropriation, restrictions on currency transfer, breach of contract and political disturbances. It belongs to the World Bank Group.

(b) IFC: Established in 1956, it supports private-sector development in developing countries through investments, loans and advisory services. It is a World Bank Group institution.

(c) ICSID: Established in 1966, it provides facilities for conciliation and arbitration of investment disputes between foreign investors and member states. It is also part of the World Bank Group.

(d) BIS: The Bank for International Settlements was established on 17 May 1930 and is headquartered in Basel, Switzerland. Commonly described as the “bank for central banks,” it promotes cooperation among central banks and supports global monetary and financial stability.

The BIS is an independent international financial organisation; it is neither a UN body nor an institution of the World Bank Group.