The International Finance Corporation (IFC) – the World Bank’s private sector lending arm – now accounts for more than one third of the World Bank’s work. It has investments of almost $20 billion a year – and about half of this is in the financial sector. According to a recent audit published by the Compliance Advisor/Ombudsman – the IFC’s arm’s length watchdog – the IFC knows very little about the environmental and social impacts of its $10 billion a year investment in the financial sector.
The IFC’s response to this audit fails to acknowledge the gravity of the findings and is notable in its lack of commitment to addressing the concerns raised. This lack of accountability over public development funds is unacceptable. In response, 45 civil society groups from around the world, including Eurodad and members, have sent a letter to World Bank President Jim Yong Kim calling for a fundamental rethink of the nature, purpose and processes of IFC investment in the financial sector.
Read the full letter.