Lessons of IFC projects disclosed

CO: International Financial Corporation a part of the World Bank has released a report on their project from the last 10 years, which highlighted successes and made recommendations. The only part that raises alarms is the term "disclosed"...

• Encouragingly, the IFC recognizes that income distribution matters: "Economic growth and its resulting market distribution of income matters in reducing the numbers of poor people." (Recommendations - Chapter 4)
• New York Times' reporter Celia W. Dugger (August 2, 2007) reports "The below-average results in Africa were driven by what the report said were “persistently high-risk business climates, together with below-average I.F.C. work quality, the willingness by I.F.C. to take greater project risks in the region and below-average project environmental and social compliance.”"

• Independent  Evaluation Group report asked:
  
  • "Whether IFC-supported projects have achieved sound development results
  • What lessons have been learned about private sector development through 10 years of evaluation
  • What the strategic implications are for IFC in improving its development performance in the years ahead?"
• The findings were almost universally positive and recommendations were provided:
  • "In its country strategies, ...work on the nexus of rural poverty and sustainable natural resources, on which poor people depend, and to identify and develop high-impact agribusiness and rural microfinance projects with widespread demonstration effects, while simultaneously providing leadership in promoting socially and environmentally sustainable practices.
  • Cooperate more with the World Bank"

• IFC profitability and development impact have tended to go together; IFC has not actively supported projects where there was a trade-off between the two.

• Since 1991, IFC has invested around $50 billion in developing countries, achieving high development ratings in 59 percent of cases (or 65 percent by commitment volume).

• Project performance is closely linked to changes in a country's business climate, to management of risks, and to IFC's work quality.

• While evaluation findings broadly support IFC's strategic directions, they also point to the crucial need for more tailored, country-specific strategies with greater IFC-World Bank cooperation.

• From a client and stakeholder perspective,
  
• From an internal process
• From a human capital perspective,
  
• From a financial and measurement perspective,

To see the full recommendations, please see Chapter 4 of the report.

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