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IFC transparency promise 'an important first step,' say experts (Devex)

October 11, 2019

From the article:

The International Finance Corporation’s promise to be more transparent about its use of subsidies to the private sector in the world’s lowest-income countries has been welcomed by experts and civil society groups, who said the institution still needs to do more.

“It’s a welcome step in the right direction but it’s a small step covering just one issue,” said Charles Kenny, senior fellow at the Center for Global Development, who has been following PSW from the beginning.

For Kenny, the information on the subsidy estimate is only useful if IFC also discloses its estimate of what financing terms would be without the subsidy.

“The fact that they are not being explicit about what they estimate ... means we still don’t know what’s going on or how reasonable IFC’s subsidy is,” he said.

Kenny believes that IFC could disclose more without revealing sensitive or proprietary information, adding that it could also publish the formula used to calculate the subsidy.

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Director of Technology and Development and Senior Fellow