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The development contribution of IFC operations (English)

Development is not only growth in output and incomes, but also change - new technologies, better management, improved financing techniques. The activities of the International Finance Corporation (IFC) promote growth as well as support these changes. Therefore, this paper reports not only on growth effects measured by economic rates of return, but also on the process of transformation set in motion by IFC's activities. Perhaps the most fundamental way in which the Corporation contributes to development is by investing only in projects that offer a satisfactory ex-ante economic rate of return. This paper presents the results of an analysis of 110 IFC projects for which comparable data are available. It then focuses on the crucial process by which IFC translates potential benefits into reality. It is during the appraisal process that IFC uses its technical, financial, and managerial expertise to improve the viability of a project. Another important development contribution is the help that IFC provides companies in trouble; without financial viability there can be no development benefit. Further sections of the paper illustrate other important development contributions such as the achievement of externalities as well as IFC's role in helping governments to attain sectoral or broader policy objectives. Lastly, the paper deals with noninvestment operations.


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    The development contribution of IFC operations

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The development contribution of IFC operations (English). International Finance Corporation discussion paper,no. IFD 5*IFC working paper series Washington, D.C. : World Bank Group.