Investing with Confidence

Kevin W. Lu, Gero Verheyen And Srilal M. Perera

Description

'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.

Informations

• Publié par: world-bank-publications
• Publié le: 01 octobre 2009
• Nombre de lectures: 28
• EAN13: 9780821379813
• Langue: English

Extrait

investing
with confidence
UNDERSTANDING POLITICAL RISK
stMANAGEMENT IN THE 21 CENTURY
Kevin W. Lu
Gero Verheyen
Srilal M. Perera
Investing with ConfidenceInvesting with Confidence
Understanding Political Risk
stManagement in the 21 Century
Kevin W. Lu, Gero Verheyen,
and Srilal M. Perera
Editors
Washington, D.C.© 2009 The International Bank for Reconstruction and Development / The World Bank
1818 H Street, NW
Washington, DC 20433
Telephone [phone]
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All rights reserved.
1 2 3 4 12 11 10 09
This volume is a product of the staff of the International Bank for Reconstruction and
Development / The World Bank. The findings, interpretations, and conclusions
expressed in this volume do not necessarily reflect the views of the Executive Directors
of The World Bank or the governments they represent.
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ISBN-13: 978-0-8213-7893-9
eISBN: 978-0-8213-7981-3
DOI: 10.1596/978-0-8213-7893-9
Library of Congress Cataloging-in-Publication Data
Investing with confidence : understanding political risk management in the 21st
century / Kevin W. Lu, Gero Verheyen, and Srilal M. Perera, editors.
p. cm.
Includes bibliographical references and index.
ISBN 978-0-8213-7893-9 (alk. paper) -- ISBN 978-0-8213-7981-3 (ebk.)
1. Country risk. 2. Investments, Foreign. 3. Risk management. I. Lu, Kevin W.
II. Verheyen, Gero. III. Perera, Srilal Mohan.
HG4538.I65438 2009
332.67'3--dc22
2009032582Contents
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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Ibrahim F. I. Shihata
The Global Financial Crisis and the Future of International
Financial Institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
James Bond
Principles and Development of Islamic Finance. . . . . . . . . . . . . . . 43
Zamir Iqbal
Sovereign Wealth Funds, Financial Crisis, and Management
of Noncommercial Risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
Roxanna Faily, Kevin W. Lu, and Shuilin Wang
The Changing Face of Political Risk. . . . . . . . . . . . . . . . . . . . . . . . . 81
Patrick Garver
vvi CONTENTS
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?. . . . . . . . . . . . . . . . . . . . . . . . . . . . 90
Mikael Sundberg, Faisal Quraishi, and
Sidhartha Choudhury
Issues Affecting Pricing in the Political Risk Insurance
Market, and a Probabilistic Approach to Measuring
Country Risk in a Political Risk Insurance Portfolio . . . . . . . . . . 115
Edward Coppola
Public Sector Pricing:How to Balance a Public Mandate
with Adequate Returns for Political Risk . . . . . . . . . . . . . . . . . . . 129
Joanne Palmer
Expropriation and the Share Pledge Dilemma:
An Assessment of Individual Rights and Compensation
Claims. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146
Srilal M. Perera
Emerging Issues in the Enforcement of Foreign Arbitral
Awards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163
Joseph R. Profaizer
To Risk or Not to Risk? The State’s Perspective of
Investor–State Dispute Resolution at the 20th Anniversary
of MIGA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173
Ignacio Torterola and Ronan McHugh
Calculating Damages:Arbitrators, Counsel, and Experts
Can Do Better Than They Have in the Past. . . . . . . . . . . . . . . . . . 196
Andrea Saldarriaga and Mark Kantor
An Approach to Financial Valuation for Arbitration
Awards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238
Faisal A. Quraishi
Concluding Comments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 253
Gero Verheyen and Srilal M. PereraCONTENTS vii
Appendixes
I Previous Volumes in This Series . . . . . . . . . . . . . . . . . . . . . . 259
II More About MIGA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 272
Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 277