Investing with Confidence: Understanding Political Risk Management in the 21st Century

by Kevin W. Lu (Editor), Gero Verheyen (Editor), Srilal M. Perera (Editor)

Overview

'Investing with Confidence: Understanding Political Risk Management in the 21st Century' is the latest book in a series based on the MIGA–Georgetown University Symposium on International Political Risk Management. The most recent symposium brought together almost 200 senior practitioners from the political risk insurance (PRI) industry, including investors, insurers, brokers, lenders, academics, and members of the legal community. This volume addresses the key issues relevant for investors today, including arbitration, understanding and pricing for risk, and new developments in investments through timely assessments from 15 experts in the fields of international investment, finance, insurance, law, and academia. Contributors to this volume examine key political risk issues including claims and arbitration, perspectives on pricing from private, public and multilateral providers, and explore new frontiers in sovereign wealth funds and Islamic finance. The volume begins with a look back to the founding of International Center for the Settlement of Investment Disputes (ICSID) and MIGA and the respective visions for both of these important institutions. It continues with a review of new developments in global finance and risk management, including Islamic finance and sovereign wealth funds, and provides an investor perspective of what drives the decision making process on procuring political risk insurance. The volume then turns to consider methodologies of pricing from the private, public, and multilateral perspectives, and examines the expropriation and the pledge of shares. This section focuses on key legal questions such as understanding expropriation and the outcome of arbitration hearings, the latter being particularly relevant given the number of cases currently before arbitral panels. The volume concludes with an overview of the key thoughts raised by the authors and the implications for investors going forward. 'Investing with Confidence' offers valuable insights for practitioners and investors alike and is particularly relevant in today’s uncertain markets.

Product Details

ISBN-13:	9780821378939
Publisher:	World Bank Publications
Publication date:	10/01/2009
Pages:	312
Product dimensions:	6.10(w) x 9.20(h) x 0.70(d)

Table of Contents

Preface ix

Foreword xiii

Abbreviations xix

Part I Global Finance and Potential for Political Risk Insurance

Toward a Greater Depoliticization of Investment Disputes: The Roles of ICSID and MIGA Ibrahim F.I. Shihata 2

The Global Financial Crisis and the Future of International Financial Institutions James Bond 36

Principles and Development of Islamic Finance Zamir Iqbal 43

Sovereign Wealth Funds, Financial Crisis, and Management of Noncommercial Risk Roxanna Faily Kevin W. Lu Shuilin Wang 60

The Changing Face of Political Risk Patrick Garver 81

Part II Advancements in Recurring Issues and New Dimensions for Political Risk Insurance

Linking Political Risk Insurance Pricing and Portfolio Management with Economic Capital Modeling: A Multilateral Perspective? Mikael Sundberg Faisal Quraishi Sidhartha Choudhury 90

Issues Affecting Pricing in the Political Risk Insurance Market, and a Probabilistic Approach to Measuring Country Risk in a Political Risk Insurance Portfolio Edward Coppola 115

Public Sector Pricing: How to Balance a Public Mandate with Adequate Returns for Political Risk Joanne Palmer 129

Expropriation and the Share Pledge Dilemma: An Assessment of Individual Rights and Compensation Claims Srilal M. Perera 146

Emerging Issues in the Enforcement of Foreign Arbitral Awards Joseph R. Profaizer 163

To Risk or Not to Risk? The State's Perspective of Investor-State Dispute Resolution at the 20th Anniversary of MIGA Ignacio Torterola Ronan McHugh 173

Calculating Damages: Arbitrators, Counsel, and Experts Can Do Better Than they Have in the Past Andrea Saldarriaga Mark Kantor 196

An Approach to Financial Valuation for Arbitration AwardsFaisal A. Quraishi 238

Concluding Comments Gero Verheyen Srilal M. Perera 253

Appendixes

I Previous Volumes in This Series 259

II More About MIGA 272

Index 277