IEG Releases the First Comprehensive Evaluation of IFC's Knowledge Services
WASHINGTON, June 2 /PRNewswire-AsiaNet/ --
In its 2009 Independent Evaluation of IFC's Development Results released
today, the Independent Evaluation Group (IEG) provides a first global review of
International Finance Corporation (IFC) advisory services -- knowledge services
to private firms and governments in support of private sector development,
including customized training or advice on investment promotion and policy. The
report finds that about 70 percent of advisory projects achieved overall high
ratings for development effectiveness. Performance was strongest in
Southeastern Europe and Central Asia and weakest in Latin America and the
Caribbean. IEG also found gaps in delivery, particularly matching corporate
intent with consistent implementation on the ground, including execution of its
pricing policy, ensuring good quality project designs, getting the right
staffing mix and effective collaboration with other advisory service providers,
including the World Bank.
IFC's advisory portfolio has grown tenfold, to nearly $1 billion since
2001, and IFC now has more advisory than investment staff in the field.
Substantial growth of this business line raises important questions related to
the appropriate balance of advisory and investment services for maximum
development impact. IEG finds that despite organizational improvements in the
delivery of advisory services, IFC's expansion came without a coherent global
strategic framework. The main performance drivers were client commitment to the
project; the quality of IFC's project design; local presence and level of
involvement by IFC; adopting a programmatic approach by carrying out advisory
projects in sequence or parallel and complementary to each other; and effective
monitoring and evaluation.
"Over the last five years, IFC enhanced the effectiveness of advisory
projects, striving to bring greater structure and clarity to its growing
product line. However, much work remains to be done, especially in setting a
clear strategic vision and a funding mix to ensure long-run sustainability and
impact of the business," said Marvin Taylor-Dormond, Director, IEG-IFC.
The report's review of IFC investment projects that matured between 2006-08
found that overall 72 percent achieved successful development results --
compared to 63 percent last year. Results were strongly affected by local
economic conditions, which generally improved up to 2008, and IFC's work
quality in terms of structuring, appraising, and supervising investments.
Results for IFC's investments in early implementation are likely to suffer from
the global downturn.
At times like this, IFC's roles as financier and knowledge provider assume
special importance. "IFC is in a unique position to help mobilize funding for
private sector clients," said Vinod Thomas, Director-General, and Evaluation.
"Moreover, IFC's knowledge expertise, with that of the World Bank, is crucial
in promoting risk management, governance, and standards to ease the impacts of
the current crisis."
To enhance IFC's overall development impact, IEG recommends that IFC:
effectively manage the tension between protecting the portfolio and responding
to opportunities during crisis; define an overall strategy for IFC advisory
services, including clear articulation of goals, comparative advantage,
staffing approach, and meaningful performance targets; pursue more programmatic
(rather than stand-alone) advisory interventions; improve execution of its
advisory services pricing policy; and strengthen the performance measurement
and internal knowledge management of advisory services projects worldwide.
About IEG
IEG, an independent unit within the World Bank Group, evaluates the
relevance and impact of the Bank Group's support to developing countries for
reducing poverty and improving people's lives. IEG-IFC discloses all of its
Board-distributed reports to make the public aware of findings and lessons from
evaluations and to promote accountability and transparency.
For more information, including IFC Management's response to the report,
SOURCE: Independent Evaluation Group - International Finance Corporation
CONTACT: Sona Panajyan of International Finance Corporation
+1-202-299-6210
Spanajyan@ifc.org
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