BANKING & INSURANCEOne of MIGA’s more dubious projects, the report claims, was its decision last October to insure a $24 million investment by Coca-Cola in Bosnia-Herzegovina to modernise a bottling plant.
MIGA “does not explain how making Coke readily available will alleviate poverty or promote health,” the report says. It also argues that soft drinks promote obesity. In any case, said Welch, “Coke certainly has the capacity to go to private insurers instead.”
Varkie, MIGA’s marketing manager, rejected those arguments. In a country torn by war and food shortages, “obesity is not the issue,” she said. “In an area where people are desperate to get their economy going, without support from agencies like MIGA those companies wouldn’t go in. Projects like this are critical in getting the confidence back of the investment community.” Many companies that receive MIGA guarantees, Varkie said, “make a huge difference and go way beyond what’s necessary from a corporate responsibility point of view.” - SUNS4941
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