As the private sector lending arm of the World Bank Group, one of the ways in which the International Financial Corporation (IFC) should add value is by fostering sustainable development through consistent application of its Performance Standards (PSs) across its portfolio. However, monitoring of IFC projects reveals a troubling tendency not to prioritize compliance with the IFC’s Performance Standards, as compliance with Performance Standards is not a priority for the IFC or its clients. This is a systemic issue in the IFC’s projects at every stage: appraisal, implementation, remedy, and exit.
In this briefer, we share seven examples of IFC projects in Brazil, Mexico, Argentina, Ecuador, and China that depict the IFC’s lack of compliance with PSs as well as a lack of information disclosure. Also, we provide specific recommendations for the IFC management and Board on how to address these structural problems.
Read the brief here