MIGA was established in 1988. Its main purpose is to promote the flow of foreign direct investment among member countries by insuring investments against non-commercial (political) risk, and by providing promotional and advisory services to help member countries create an attractive investment climate. MIGA offers four basic types of coverage:
Currency Inconvertibility. Protects against losses arising from an inability to convert local currency investment returns into foreign exchange for transfer outside the host country;
Expropriation. Protects against loss from acts by the host government that may reduce or eliminate ownership of, or control over, rights to the insured investment;
War and Civil Disturbance. Protects against losses arising from military action or civil disturbance that destroys or damages tangible assets of the project enterprise or interferes with its operations; and
Breach of Contract. Protects against losses from the investor's inability to obtain and/or enforce a decision or award against a host country that has repudiated or breached an investment contract.
Since its inception, MIGA has issued more than 500 guarantees for projects in 78 developing countries. As of June 2001, total coverage issued exceeded US $9 billion, bringing the estimated amount of foreign direct investment facilitated since inception to more than US $41 billion. As of 30 September 2002, 159 countries had completed membership requirements with an additional 11 countries in the process of becoming members.