Summary: Foreign direct investment and private capital flows are highly concentrated geographically, with almost half of them reaching five top destinations. These flows tend to evade many high-risk countries. Regulatory and contractual risks, particularly in infrastructure, have inhibited investments in many parts of the developing world. A core objective of the World Bank Group (WBG) has been to support the flow of private investment for development; guarantees and insurance have been among the instruments that the WBG has used to pursue this objective.This study examines three main questions: * Should the WBG be in the guarantee business? * Have guarantee instruments in the three WBG institutions been used to their potential as reflected in WBG expectations and perceived demand? * Is the WBG appropriately organized to deliver its range of guarantee products in an effective and efficient manner?