BANKING &INSURANCERecent projects listed on MIGA’s website include joint ventures with the Greek Export Credit Insurance Organization and South Korea’s Export Insurance Corporation to encourage Greek and Korean investment in developing countries.

The NGO report takes MIGA to task on several fronts.

First, it says, MIGA guarantees corporate investment in mines in Indonesia, Peru and elsewhere that are “environmentally damaging and developmentally dubious.”

Second, it claims that MIGA’s guarantees mirror existing trends in FDI rather than “catalysing FDI for positive purposes into the regions and countries that need it the most.”

“There’s a need to channel investment to countries not getting it,” particularly in Africa and Central America, said Welch.

Third, the report argues that too much of MIGA’s portfolio, nearly 38%, is focussed on the financial sector, including guarantees to multinational banks for opening new branches or expanding operations to provide loans in the developing world. These are geared towards middle- and upper-income individuals rather than the poor, and benefit large banks such as Citigroup, the report says.

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.

“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,” it says. The report claims that the US government’s Overseas Private Investment Corp. and the World Bank’s International Finance Corp. have much better oversight