Introduction to MIGA
The Multilateral Investment Guarantee Agency (MIGA) is a distinct entity within the World Bank Group that plays a pivotal role in attracting investment in developing countries. Established in 1988, MIGA has grown to comprise 182 member states, offering political and economic risk insurance to encourage foreign direct investment (FDI). By providing assurance against various risks, MIGA aims to contribute to sustainable economic growth, alleviate poverty, and ultimately improve people’s lives.
Background: Creation and History of MIGA
MIGA was established in response to the need for complementary public and private insurance sources to address non-commercial risks in developing countries. The multilateral nature of MIGA, backed by both advanced and developing nations, fosters confidence among investors looking to expand internationally. In 1985, the World Bank endorsed the creation of a multilateral political risk insurer, leading to MIGA’s establishment in April 1988 with an initial capital worth $1 billion from its founding 29 member states.
MIGA’s Role and Functions
To encourage foreign direct investment into developing countries, MIGA provides essential services that include political risk insurance against foreign exchange restrictions, war risks, imposition of spending limits, and other related asset restrictions. In addition, MIGA offers advisory services to governments in developing countries, sharing insights on optimal policies and procedures for attracting FDI and fostering a conducive environment for investors. Other services offered by MIGA include licensing arrangements, franchising, technology support, and the execution of international projects. One notable example is the Afghanistan Investment Guarantee Facility, established in 2005 to promote investment and reconstruction efforts during the country’s conflict period.
MIGA’s Current Leadership Team
Led by an experienced team, MIGA boasts expertise in political risk insurance, banking and capital markets, environmental and social sustainability, project finance and sector specialties, and international law and dispute settlement. The current leadership includes Hiroshi Matano, Executive Vice President, and Junaid Kamal Ahmad, Senior Vice President, Operations.
Background: Creation and History of MIGA
The Multilateral Investment Guarantee Agency (MIGA), established in 1988, is a vital member of the World Bank Group, dedicated to promoting foreign direct investment (FDI) in developing countries. This international institution offers political and economic risk insurance to investors, serving as a catalyst for economic development and poverty reduction in these regions.
MIGA’s origins trace back to 1985 when the World Bank endorsed the concept of a multilateral political risk insurer. The agency officially came into existence on April 23, 1988, with initial capital totaling $1 billion from 29 member states. These founding nations comprised both developing and industrialized countries, including Bahrain, Bangladesh, Barbados, Canada, Chile, Egypt, Germany, Indonesia, Japan, Korea, Kuwait, Lesotho, Malawi, Netherlands, Nigeria, Pakistan, Saudi Arabia, Senegal, Sweden, Switzerland, United Kingdom, and the United States.
The multilateral nature of MIGA, bolstered by its diverse membership, inspired confidence among investors, leading to significant growth in the number of member states and guarantees issued over the years. By 1991, MIGA’s roster of members had surpassed 100 nations, with guarantees totaling $1.3 billion. The global financial crisis in 2009 prompted the agency to provide essential support to economies in Europe and Central Asia by issuing $1.2 billion in guarantees.
MIGA’s portfolio of services includes risk insurance against foreign exchange restrictions, conflict or war outbreaks, spending limits, and related asset restriction threats. The organization goes beyond traditional political risk insurance by offering advisory services to developing country governments. MIGA provides guidance on policy improvements and attractive investment environments. Furthermore, the agency supports international projects, such as the Afghanistan Investment Guarantee Facility (established in 2005), which aimed to foster foreign investment during the country’s reconstruction efforts amidst an ongoing conflict.
In conclusion, MIGA plays a crucial role in promoting FDI in developing countries and fostering economic growth, poverty reduction, and sustainable development. The agency’s history of innovation and commitment to its mission has earned it recognition as a leading player in the international investment landscape.
MIGA’s Role and Functions
The Multilateral Investment Guarantee Agency (MIGA) is a vital international organization that plays a significant role in encouraging foreign direct investment (FDI) into developing countries by offering political and economic risk insurance. Established as part of the World Bank Group in 1988, MIGA aims to support sustainable economic growth, reduce poverty, and improve people’s lives through the promotion of FDI in developing nations. With a current membership of 182 member states (as of September 2022), MIGA’s services are designed to protect investors against non-commercial risks associated with investing abroad.
MIGA offers various services that cater to both corporations and governments. One primary offering is political risk insurance, which insulates companies from potential risks such as expropriation, currency restrictions, and war or civil unrest. By providing this coverage, MIGA increases the confidence of investors in pursuing FDI opportunities in developing countries.
MIGA’s services extend beyond insurance, with advisory services being another crucial component. The organization provides guidance to developing country governments on best practices for attracting foreign investment and implementing effective policies. Additionally, MIGA offers licensing arrangements, franchising, technology support, and international projects to further facilitate the flow of investment dollars into these regions.
One notable example of an international project supported by MIGA is the Afghanistan Investment Guarantee Facility. Launched in 2005, this initiative aimed to help the country during its reconstruction efforts amid ongoing war by opening up opportunities for direct foreign investment. By providing insurance coverage and advisory services, MIGA played a pivotal role in attracting international investors to Afghanistan.
MIGA’s management team boasts extensive experience in political risk insurance, banking and capital markets, environmental and social sustainability, project finance and sector specialties, and international law and dispute settlement. The organization is headed by Hiroshi Matano, the Executive Vice President, and Junaid Kamal Ahmad, the Senior Vice President of Operations.
In summary, MIGA plays a crucial role in promoting FDI into developing countries through its political and economic risk insurance offerings, advisory services, licensing arrangements, franchising, technology support, and international projects. By providing these services, MIGA fosters sustainable economic growth, reduces poverty, and improves the lives of people in these nations.
MIGA’s Current Leadership Team
The Multilateral Investment Guarantee Agency (MIGA) has a robust leadership team that steers the organization in its mission to encourage foreign direct investment into developing countries. Two of MIGA’s most prominent figures are Hiroshi Matano and Junaid Kamal Ahmad, who hold the positions of Executive Vice President and Senior Vice President, Operations, respectively.
Hiroshi Matano, an accomplished professional with extensive experience in political risk insurance, joined MIGA as Executive Vice President in July 2018. Prior to this role, Mr. Matano spent over three decades with the Japan Bank for International Cooperation (JBIC), where he served various senior positions including Managing Director and Deputy Vice President. During his tenure at JBIC, Mr. Matano gained expertise in international law and dispute settlement, political risk insurance, and infrastructure financing. He has led numerous projects involving public-private partnerships, energy, transportation, telecommunications, and other sectors.
In 2013, Mr. Matano played a significant role in the establishment of JBIC’s Political Risk Insurance Business Unit and served as its founding Managing Director. This division has grown to become one of JBIC’s most important business lines, providing political risk insurance for Japanese companies investing overseas.
At MIGA, Mr. Matano is responsible for leading the organization’s strategic direction and overseeing its operations, ensuring the agency continues to provide top-notch services to investors in developing countries. His unique blend of expertise in banking, capital markets, and political risk insurance will be crucial as MIGA navigates the evolving landscape of international investment.
Junaid Kamal Ahmad, a seasoned professional with a background in banking and finance, assumed his role as Senior Vice President, Operations, in February 2019. Before joining MIGA, Mr. Ahmad served various senior positions at the International Finance Corporation (IFC), part of the World Bank Group. During his tenure at IFC, he headed the project finance division for Central and Eastern Europe, Middle East, and Africa. In this role, Mr. Ahmad oversaw a portfolio of over 100 projects valued at $3.5 billion across various industries such as energy, manufacturing, financial institutions, and infrastructure.
Mr. Ahmad’s experience also includes stints at the European Bank for Reconstruction and Development (EBRD) and Citigroup Global Markets Limited, where he managed public-private partnership projects and worked on structuring complex debt and equity financing deals for clients in emerging markets.
At MIGA, Mr. Ahmad leads a team responsible for designing and executing the agency’s insurance and advisory services, ensuring that the organization remains at the forefront of providing innovative solutions to investors seeking to minimize risk when entering developing markets. With his expertise in banking, finance, and project development, Mr. Ahmad plays an essential role in helping MIGA continue its mission of attracting investment to developing countries.
Together, Hiroshi Matano and Junaid Kamal Ahmad provide strong leadership to the Multilateral Investment Guarantee Agency as it works towards promoting foreign direct investment into developing economies and fostering economic growth and development.
How MIGA Encourages Foreign Direct Investment
The Multilateral Investment Guarantee Agency (MIGA), an integral part of the World Bank Group, is renowned for its role in encouraging foreign direct investment (FDI) in developing countries. By offering political and economic risk insurance, MIGA helps mitigate the risks that can discourage investors from venturing into new markets. This section will delve deeper into the methods employed by MIGA to foster FDI growth.
Political and Economic Risk Insurance: The Foundation of MIGA’s Strategy
MIGA offers political and economic risk insurance, which covers various risks that can hinder foreign investors. These risks include:
1. Political violence or terrorism
2. Expropriation and nationalization
3. Breach of contract by the host government
4. Currency transfer restrictions
5. War, civil unrest, and rebellion
6. Confiscatory taxes
7. Contract repudiation
8. Inconvertibility of currency
These risks can deter investors from entering developing countries, but MIGA’s political and economic risk insurance provides a safety net for corporations looking to invest abroad. By protecting investors from non-commercial risks, MIGA increases the confidence and willingness of companies to invest in these markets.
MIGA’s Advisory Services: Guiding Developing Nations to Attract FDI
MIGA plays an essential role in helping developing countries attract foreign investment. Through its advisory services, the agency assists governments in designing policies and procedures that create a favorable environment for investors. By offering expertise in areas like project finance, sector specialties, international law, dispute settlement, and environmental and social sustainability, MIGA empowers nations to position themselves as attractive destinations for foreign investment.
Collaborative International Projects: Fostering Sustainable Development
MIGA supports international projects aimed at encouraging foreign investment in developing countries. For instance, the Afghanistan Investment Guarantee Facility was launched in 2005 to help the war-torn country’s reconstruction efforts. By providing guarantees for investments, MIGA opened doors to FDI during a time when it was desperately needed. These collaborative projects not only contribute to economic growth but also facilitate sustainable development in these countries.
Effective Leadership at the Helm
MIGA benefits from experienced leaders who understand political risk insurance and are well-versed in banking, capital markets, environmental and social sustainability, project finance, sector specialties, and international law and dispute settlement. With Hiroshi Matano as Executive Vice President and Junaid Kamal Ahmad as Senior Vice President, Operations, MIGA’s team is well equipped to navigate the complex world of foreign direct investment in developing countries.
In conclusion, by offering political and economic risk insurance, advisory services, and collaborating on international projects, MIGA plays a vital role in encouraging FDI growth in developing countries. This commitment to supporting foreign investment not only benefits individual corporations but also contributes to the overall economic development of nations around the world.
MIGA’s Impact on Developing Economies
One of the primary objectives of the Multilateral Investment Guarantee Agency (MIGA) is to encourage foreign direct investment (FDI) in developing countries and promote their economic growth. MIGA achieves this by offering political and economic risk insurance, advisory services, and other forms of support that reduce the perceived risks associated with investing in these economies. The impact of MIGA’s work can be seen through various successful projects in different regions.
In Africa, for instance, MIGA supported the construction and expansion of several power generation plants between 1993 and 2003. These projects contributed to a significant increase in the electricity generating capacity of African countries, improving access to electricity and supporting economic development. Another example is the investment by the Canadian company, Manitoba Hydro International (MHI), in a hydroelectric power project in Mozambique. MIGA provided political risk insurance for this project, enabling it to move forward despite the high political risks associated with investing in the country during a period of civil unrest. The successful completion of the project led to the creation of over 3,000 jobs and generated substantial economic benefits for Mozambique.
MIGA’s efforts have also had a positive impact on countries in other regions. In Central America, MIGA facilitated the financing and implementation of several projects, including an oil refinery and a paper mill. These investments brought significant improvements to the economies of these countries, resulting in increased exports, job creation, and overall economic development.
In Asia, one notable success story is the establishment of the Nong Khai Paper Mill in Thailand. MIGA provided political risk insurance for this project during its early stages when the political climate was uncertain due to economic instability. The successful execution of the project created 500 jobs and contributed to the growth of Thailand’s economy.
MIGA’s role extends beyond just providing risk insurance. The agency also offers advisory services, helping governments implement policies and procedures that attract foreign investment. This was evident during its involvement in a telecommunications project in Guyana. MIGA provided advice on the legal framework for licensing mobile phone companies, which resulted in the country’s rapid expansion of mobile communication services, enhancing connectivity for millions of residents and enabling businesses to grow.
MIGA’s impact on economies is not limited to individual projects or countries. Its contributions extend to entire regions through its international projects. For example, the Afghanistan Investment Guarantee Facility (AIGF) was established in 2005 to help support the country during a time of conflict by opening up opportunities for direct foreign investment. This initiative contributed to economic stabilization and laid the groundwork for future development efforts.
The success stories illustrate MIGA’s crucial role as a catalyst for FDI in developing countries, offering risk insurance and advisory services that help reduce perceived risks and support economic growth. By fostering a stable environment for foreign investment, MIGA is an essential partner for governments and investors alike, making a significant impact on the lives of millions around the world.
Case Studies: Success Stories from MIGA
One of the most effective ways to demonstrate the value that the Multilateral Investment Guarantee Agency (MIGA) brings to developing countries is through its success stories. Since its inception in 1988, MIGA has played a crucial role in encouraging foreign direct investment and promoting economic growth in various regions across the world.
A prime example of MIGA’s impact can be seen in its collaboration with the Indian telecommunications company, Bharti Airtel Limited, to expand its operations into Tanzania. In 2000, when Bharti expressed interest in investing in Tanzania’s telecommunications sector, the country faced significant political instability and an uncertain economic climate. However, thanks to MIGA’s political risk insurance coverage and advisory services, the company was able to successfully navigate these challenges and establish a strong presence in the region.
Another notable achievement for MIGA comes from its work with the South African solar energy firm, SolarReserve, which aimed to build a large-scale concentrated solar power (CSP) plant in Egypt. The project faced numerous risks due to political instability and economic uncertainty, but MIGA stepped in by providing a comprehensive package of advisory services and political risk insurance coverage for the project’s equity investors.
More recently, in 2019, MIGA supported an investment by the South African-based company, Wisa Pharmaceuticals, to expand its manufacturing operations in Ethiopia. By providing political risk insurance and advisory services, MIGA enabled Wisa to navigate various challenges such as regulatory uncertainties and the overall political climate in Ethiopia. As a result, this investment not only created new jobs but also helped improve access to essential medicines for millions of people living in Ethiopia.
These success stories are just a few examples of how the Multilateral Investment Guarantee Agency has supported foreign direct investment and contributed to economic growth in developing countries over the years. By offering political risk insurance, advisory services, and other resources, MIGA plays a vital role in helping companies mitigate risks and thrive in uncertain environments, ultimately leading to improved socio-economic conditions for the people of these nations.
MIGA and the Environment
The Multilateral Investment Guarantee Agency (MIGA) not only fosters economic growth in developing countries by promoting foreign direct investment but also contributes to sustainable development through its commitment to environmental and social sustainability policies and practices. As a member of the World Bank Group, MIGA plays an essential role in ensuring that investments financed through it promote long-term positive impacts on the environment, people, and communities.
MIGA’s Environmental and Social Framework
To minimize potential negative environmental and social impacts associated with foreign direct investment projects, MIGA has established a comprehensive environmental and social framework. This framework requires project proponents to follow rigorous assessment procedures, which include conducting initial screening, environmental and social impact assessments, stakeholder consultation, and ongoing monitoring and reporting. Additionally, the agency offers advisory services to help governments implement policies and best practices that promote sustainable development and improve their ability to attract foreign investment.
Support for Renewable Energy Projects
MIGA’s commitment to environmental sustainability is further emphasized through its efforts to support renewable energy projects in developing countries. The agency recognizes the importance of transitioning away from fossil fuels towards cleaner and more sustainable sources of energy. For instance, MIGA has provided political risk insurance coverage for a solar power project in Egypt, enabling the country to diversify its electricity generation mix and reduce greenhouse gas emissions.
Collaborations for Sustainable Development
MIGA has partnered with various organizations and initiatives aimed at promoting sustainable development and climate change adaptation efforts in developing countries. One such collaboration is with the United Nations Development Programme (UNDP) to help countries build capacity for managing climate risks, increasing their resilience, and reducing greenhouse gas emissions. By combining resources and expertise from these partnerships, MIGA can amplify its impact on foreign direct investment while promoting sustainable development objectives.
MIGA’s Role in the Global Response to Climate Change
As the world grapples with the challenges posed by climate change, MIGA continues to play an essential role in supporting developing countries in their transition towards low-carbon economies. By offering political risk insurance coverage for projects that help countries mitigate and adapt to climate risks, the agency encourages investment in sustainable infrastructure and green technologies. In doing so, MIGA supports the global efforts to reduce greenhouse gas emissions while promoting economic growth and development in developing nations.
Case Study: Solar Power in Egypt
MIGA’s commitment to supporting renewable energy projects is exemplified by its involvement in the Benban Solar Park project in Egypt. The project, which covers an area of 37 square kilometers and comprises over 40 solar power plants, was financed through a public-private partnership between the Egyptian government and private investors. With MIGA’s political risk insurance coverage, foreign investors were assured protection against potential risks such as currency restrictions and expropriation, enabling them to invest in this transformative project. By supporting the Benban Solar Park project, MIGA demonstrated its role as a catalyst for sustainable development through foreign direct investment while promoting Egypt’s transition towards renewable energy sources.
MIGA’s dedication to sustainability not only benefits the environment but also ensures that foreign investments have long-lasting positive impacts on people and communities in developing countries. Through its robust environmental and social framework, collaborations with organizations focused on sustainable development, and commitment to supporting renewable energy projects, MIGA is making a difference in the world one investment at a time.
Criticisms and Controversies Surrounding MIGA
Despite its noble mission to promote investment in developing countries and contribute to economic growth, the Multilateral Investment Guarantee Agency (MIGA) has faced criticisms and controversies. Some critics argue that the agency supports projects that contribute to environmental harm or human rights abuses.
One of the most notable issues surrounding MIGA revolves around its involvement in supporting large-scale extractive industries, such as mining and oil exploration, which can often lead to negative environmental impacts and potential human rights violations. For instance, in Guatemala, MIGA insured a hydroelectric dam project that was met with resistance from local indigenous communities due to concerns over displacement and the impact on their traditional land use. In another case, the agency backed a coal mine expansion in Colombia which led to protests from environmental activists and human rights groups, who claimed the project threatened the health of local residents.
Another area where MIGA has faced controversy is its role in supporting infrastructure projects in countries with weak governance structures and human rights records. For instance, the agency provided insurance coverage for a port development project in Mozambique that was found to be riddled with corruption, leading to significant financial losses for investors. In addition, critics have accused MIGA of turning a blind eye to reports of human rights violations and environmental damage at various projects it has insured.
Despite these criticisms, MIGA argues that its role is to provide insurance coverage to promote foreign direct investment in developing countries, not to endorse or condone specific projects or their potential negative impacts. The agency has implemented various policies and measures to address environmental and social concerns, such as mandatory Environmental and Social Impact Assessments for all insured projects. Additionally, MIGA requires its clients to comply with certain standards related to human rights, labor practices, and the environment.
However, some argue that these measures are not sufficient to mitigate the potential harm caused by MIGA-supported projects. In response, the agency has launched initiatives focused on sustainability and transparency, such as its Environmental, Social, and Governance (ESG) strategy and its commitment to promoting sustainable infrastructure development.
As the debate over MIGA’s role in promoting foreign investment in developing countries continues, it is essential for the organization to remain transparent, accountable, and responsive to concerns regarding environmental sustainability and human rights. Only through a concerted effort to address these challenges can MIGA effectively contribute to economic growth while minimizing potential negative consequences.
In conclusion, understanding the Multilateral Investment Guarantee Agency (MIGA) is essential for anyone interested in international finance and investment. By offering political and economic risk insurance to investors looking to invest in developing countries, MIGA plays an important role in fostering economic growth and reducing poverty. However, controversies surrounding its support of projects that may cause environmental harm or human rights abuses have brought both scrutiny and criticism. Ultimately, it falls on the agency to address these concerns through transparency, accountability, and a commitment to sustainability.
By Hiba Abo Fakher Eldeen.
Note: The data for the number of member states and guarantees issued has been updated to reflect current numbers as of September 2022.
MIGA’s Future and Expansion Plans
The Multilateral Investment Guarantee Agency (MIGA), founded in 1988 to promote investment in developing countries by offering political and economic risk insurance, continues to play a vital role in fostering economic growth and reducing poverty. With the world becoming increasingly interconnected, MIGA’s mission is more important than ever before. The agency has set its sights on expanding its reach and focusing on sustainable development to ensure long-term progress.
In recent years, MIGA has taken significant strides in its efforts to support renewable energy projects. In 2021 alone, the organization issued guarantees for more than $3 billion worth of investments in various clean energy ventures. This marked a new record for the agency and demonstrated its commitment to backing projects that have a positive impact on the environment while also attracting foreign investment.
Moreover, MIGA has expanded its role beyond just providing risk insurance. The organization now offers advisory services designed to help governments in developing countries implement policies and procedures that make their economies more attractive to foreign investors. These advisory services cover a wide range of topics, from environmental sustainability to regulatory frameworks.
Looking ahead, MIGA intends to strengthen its presence in regions that have traditionally faced challenges in attracting foreign direct investment (FDI). The organization is actively exploring opportunities to expand its operations into Sub-Saharan Africa, where FDI levels are relatively low compared to other developing regions. By offering tailored insurance and advisory services to governments in these countries, MIGA hopes to encourage more FDI and contribute to their economic development.
MIGA is also working to streamline its operations and improve its risk assessment capabilities. The organization is investing in technology and data analytics tools that will enable it to better evaluate the risks associated with potential investments in developing countries. By providing more accurate and timely assessments, MIGA can offer insurance coverage that is more competitive and attractive to investors.
In addition to these initiatives, MIGA continues to work closely with the World Bank Group and other international organizations to promote sustainable development and economic growth. The agency’s involvement in projects like the Afghanistan Investment Guarantee Facility demonstrates its commitment to supporting countries as they navigate complex economic challenges.
The future looks bright for MIGA, which has proven itself to be a valuable partner in promoting investment and economic progress in developing countries. With its focus on sustainable development and innovative approaches to risk management, the organization is well-positioned to continue making a difference in the lives of millions around the world.
FAQs: Common Questions About MIGA
1. What is the Multilateral Investment Guarantee Agency (MIGA)?
The Multilateral Investment Guarantee Agency (MIGA) is an international financial institution established in 1988 as a member of the World Bank Group. It specializes in offering political and economic risk insurance to promote foreign direct investment (FDI) in developing countries, fostering economic growth, reducing poverty, and improving people’s lives.
2. What are the services provided by MIGA?
MIGA offers various services designed to encourage FDI, including risk insurance against foreign exchange restrictions, conflicts or wars, imposed spending limits, asset restriction risks, and other political risks. Additionally, MIGA provides advisory services to governments on attracting investment and developing policies. Other offerings include licensing arrangements, franchising, technology support, and international projects.
3. What is the history of MIGA?
MIGA was established in 1988 as part of the World Bank Group to complement public and private insurance sources against non-commercial risks in developing countries. It had an initial capital of $1 billion among its 29 member states, consisting of both advanced and developing nations. The agency’s membership has grown significantly since then, with currently 182 members as of September 2022. MIGA’s guarantees have also increased over the years, topping $1.3 billion in 2009 following the global financial crisis.
4. Who runs MIGA?
MIGA is led by an executive vice president (EVP), currently Hiroshi Matano, and a senior vice president of operations, Junaid Kamal Ahmad. The agency’s team consists of experienced professionals in political risk insurance, banking and capital markets, environmental and social sustainability, project finance and sector specialties, and international law and dispute settlement.
5. What is the role of MIGA in promoting foreign direct investment?
MIGA plays a crucial role in fostering FDI by offering political and economic risk insurance to corporations looking to invest in developing countries, thereby mitigating the risks that could deter investors. Furthermore, MIGA’s advisory services help governments create an attractive environment for foreign investments through sound policies and procedures. Additionally, international projects supported by MIGA facilitate investment into specific regions where it may otherwise be challenging to attract FDI.
6. How does MIGA support economic growth in developing countries?
By offering political and economic risk insurance, MIGA reduces the uncertainty faced by corporations considering investments in developing countries, making these markets more attractive for investment. This leads to increased capital inflows, job creation, technology transfer, and knowledge sharing between developed and developing economies.
7. How does MIGA improve people’s lives?
By encouraging FDI through risk insurance and advisory services, MIGA creates opportunities for employment, better infrastructure, and access to essential goods and services in developing countries, ultimately leading to improved living standards for local populations.
8. What is the significance of MIGA being a member of the World Bank Group?
Being a part of the World Bank Group enables MIGA to collaborate with other international financial institutions like the International Monetary Fund (IMF) and the International Finance Corporation (IFC) to offer comprehensive solutions for economic development and poverty reduction in developing countries.