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Views from the Center

CGD experts offer ideas and analysis to improve international development policy. Also check out our Global Health blog and US Development Policy blog.

 

IFC's headquarters. Photo via wikimedia

IFC’s Accountability Review Is Welcome but Must Translate to Action

International Finance Corporation CEO Philippe Le Houerou announced that the IFC’s board will undertake a review of its accountability mechanisms, including the office of the Compliance Advisor Ombudsman. The announcement is timely. By initiating a review, IFC’s Board is taking the first step toward a more transparent and accountable operating structure. 

Inside the IFC's Portfolio: The IFC Responds

IFC Spokesman Frederick Jones has replied to our blog on the IFC’s risk appetite. First off, thanks to Fred and the IFC for replying. The Corporation has a unique role to play in global development finance and we’re keen for that role to grow, so we’re happy that the report has generated so much conversation about IFC’s portfolio, both within and outside IFC. And second, we commend IFC for its plans to do more in poor countries and those that are classified as fragile states—it is where the Corporation can have the most impact and where it is most needed.

Is the IFC Taking On Even Less Risk Than We Suggest? Our Readers Respond

Since the publication of our paper on the IFC’s project portfolio last week, we have received several helpful comments from readers. They plausibly suggest that the portfolio may be (even) less risky than we suggested, with even more space to pivot towards the low income countries where the IFC can make the most difference. But until the IFC publishes more information, we won’t really know.

The International Finance Corporation’s Mission Is Facilitating Risky Investments—So Why Is It Taking on Less and Less Risk?

The IFC is designed to catalyze investments in countries that investors might consider too risky to invest in alone. But our recent analysis of IFC’s portfolio found that it is shying away from risky investments, raising serious questions about whether the IFC is focusing on the places where it can make the most difference.

How to Avoid Indicator Scandals: Three Ways to Fix the Doing Business Index

On Friday, the World Bank’s chief economist, Paul Romer, told the Wall Street Journal that the Bank unfairly influenced its own competitiveness rankings. He highlighted the case of Chile which suffered lower rankings on the Doing Business index during the Bachelet administration versus the Piñera years, and recalculated these rankings on his personal blog. Today, he issued a clarification of his views.  

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