The IEG report finds that the development results of IFC-supported private sector operations in developing countries improved in the last three years, driven by better performance in two regions with a large share of IFC operations: Latin America and Europe and Central Asia. However, project performance stagnated in Africa, Asia and the Middle East – where IFC is growing fastest, and where sound IFC work quality and portfolio risk management will be crucial for better results going forward. In a first, detailed look at IFC additionality – or unique value added – IEG found that while most projects exhibited at least one form of additionality, the quality of additionality appeared to be much better in LAC and ECA than in Africa and Asia. Better strategic consideration, operationalization and tracking of additionality across all regions will be fundamental to IFC’s success as a development institution, given the close connection the report finds between additionality and development outcomes. more...

Bank Group support for the environment has grown during the past 15 years and performance has improved. At the same time, environmental challenges have increased, and problems in the critical areas of pollution, congestion, loss of species, and climate change have worsened. In view of the public goods nature of these concerns, the Bank Group has a special role to play with respect to environmental issues—and has indeed been a leader in the analysis and advocacy that helps countries focus on these challenges. It is also the largest multilateral source of environment-related financing. But far greater progress is needed. These concerns must be given increased operational priority, as should how the Bank, IFC, and MIGA work together, in recognition that long-term economic growth, poverty reduction, and environmental sustainability are interlinked. more...