Source: World Bank

The World Bank Group today launched two websites designed to make it easier for investors-and developing countries-to get the most out of investment opportunities in the developing world.

FDI net and Political Risk Insurance Center  (pri-center.com) offer a unique view of the international investment picture, combining information on investment opportunities with political risk assessments and details on development policy, says Stephan Dreyhaupt, manager of online services at the Multilateral Investment Guarantee Agency (MIGA), which developed the websites.

PRI-Center provides information on political or noncommercial investment risks, as well as ratings for 160 countries, research, tools, directories, news and events.

FDI.net brings previously offered services under one roof, offering information on specific foreign direct investment opportunities, business and legal environments; up-to-the-minute feeds on news and events; links to investment promotion agencies and location consultants, quick-search by sector and/or country; cases studies, and sources of investment finance for 175 countries, says MIGA

Both websites are “one-of-a-kind one-stop-shops” for the type of information commonly sought by investors who want to invest wisely in developing countries, Dreyhaupt says.

“FDI.net is like no other web service out there,” says MIGA Executive Vice President Yukiko Omura.

“The site is investor-focused in a unique way, combining business and public resources with World Bank Group analysis to provide users with a single entry point for the full spectrum of information needed to make a decision about investing in a foreign country.”

“And the service is free,” she adds.

MIGA drives foreign investment in developing countries by providing guarantees to foreign investors against losses caused by noncommercial risks, such as expropriation, currency inconvertibility, and transfer restrictions, war and civil disturbance, or breach of contract. It also provides technical assistance to help countries disseminate information on investment opportunities.

Foreign direct investment in the developing world is on the rise, with flows (excluding portfolio investment and private bank lending) reaching $238 billion in 2005, according to MIGA. The World Bank’s 2006 Global Development Finance report estimated total international capital flows to developing countries reached a record $491 billion in 2005.

But not all countries are winners, and investment flows are expected to decline in coming years, according to some projections.
“This makes it even more imperative for us to encourage foreign investment in emerging markets,” says Omura.

“MIGA is uniquely positioned to address the challenge of getting FDI into developing countries. In addition to offering political risk insurance for difficult investment environments, we are committed to offering the best online services possible to make sure investors have up-to-date and accurate information on investment conditions and business opportunities.”

MIGA partners with local information providers such as investment promotion and privatization agencies and business information providers to keep website content fresh and accurate, says MIGA. Inquiries from would-be investors are often sent directly to the local information provider. Both FDI-net and PRI-Center also give investors a forum for networking and exchanging information, the agency says.

MIGA’s online services complement other Bank Group websites and services related to foreign direct investment, such as Rapid Response, a website on private-sector development, and Development Gateway , which offers web-based solutions to strengthen governance and improve aid effectiveness.

Country analysis on PRI-Center includes selected political risk insurance-specific indicators from the Doing Business  report, which ranks countries based on their business environment.

“The bottom line is that both FDI.net and PRI-Center can reduce the transaction-related cost associated with searching for reliable and timely investment information—an important consideration for a developing country competing for scarce FDI,” says Dreyhaupt.