Independent Evaluation of IFC's Development Results 2009

The World Bank

Description

The 'Independent Evaluation of IFC's Development Results 2009' assesses the development outcomes and additionality (unique role and contribution) of IFC interventions. It analyzes factors driving results, and reviews performance patterns on a thematic topic. This year's thematic is IFC's Advisory Services (AS)-knowledge services that IFC provides to either private companies or governments in support of private sector development. The report's main findings are:
▪ Investment Services results improved overall. Performance was especially strong in Europe and Central Asia (ECA) and Latin America and the Caribbean (LAC). Most operations were implemented prior to the crisis and thus results do not yet reflect the deterioration in global economic conditions.
▪ In terms of results, 70 percent of reviewed AS operations achieved high development ratings. Performance has been strongest in ECA and weakest in LAC. Results were significantly better for infrastructure, business enabling environment, and corporate advice operations and weaker in the case of environmental and social sustainability
▪ Key drivers of AS performance have been: client commitment; programmatic approaches; IFC's additionality; and monitoring and evaluation quality. Charging for AS has been associated with better performance.
To enhance development impact, the report recommends that IFC:
(i) Effectively manage the tension between protecting the portfolio and responding to opportunities during crisis;
(ii) Set out an overall strategy for IFC advisory services, addressing the need for a clear vision and business framework and more closely linked with IFC's global corporate strategy;
(iii) Pursue more programmatic AS interventions;
(iv) Improve execution of the AS pricing policy; and
(v) Strengthen AS performance measurement and internal knowledge management.

Sujets

• Knowledge
• Development
• World Bank
• MDB
• Development aid
• Performance measurement
• Staffing
• Knowledge management
• IFC
• Private sector
• Private sector development

Informations

• Publié par: world-bank-publications
• Publié le: 30 juillet 2009
• Nombre de lectures: 16
• EAN13: 9780821379868
• Langue: English
• Poids de l'ouvrage: 4 Mo

Extrait

IEG
Independent Evaluation Group
Independent Evaluation of IFC’s Development Results
KNOWLEDGE FOR PRIVATE SECTOR DEVELOPMENT THE WORLD BANK GROUP
WORKING FOR A WORLD FREE OF POVERTY
The World Bank Group consists of fi ve institutions – the International Bank for Reconstruction
and Development (IBRD); International Finance Corporation (IFC); the International
Development Association (IDA); the Multilateral Investment Guarantee Agency (MIGA);
and the International Center for the Settlement of Invt Disputes (ICSID). Its mission
is to fight poverty for lasting results and to help people help themselves and their
environment by providing resources, sharing knowledge, building capacity, and forging
partnerships in the public and private sectors.
THE INDEPENDENT EVALUATION GROUP
ENHANCING DEVELOPMENT EFFECTIVENESS THROUGH EXCELLENCE AND
INDEPENDENCE IN EVALUATION
The Independent Evaluation Group (IEG) is an independent, three-part unit within the
World Bank Group. IEG-IFC independently evaluates IFC’s investment projects and
Advisory Services operations that support private sector development. IEG-World Bank is
charged with evaluating the activities of the IBRD (The World Bank) and IDA, and IEG-MIGA
evaluates the contributions of MIGA guarantee projects and services. IEG reports directly
to World Bank Group’s Boards of Directors through the Director-General, Evaluation.
The goals of evaluation are to learn from experience, to provide an objective basis for
assessing the results of the World Bank Group’s work, and to provide accountability in
achieving its objectives. IEG seeks to improve World Bank Group work by identifying and
disseminating lessons learned from experience and by framing recommendations drawn
from evaluation fi ndings.INDEPENDENT EVALUATION GROUP
Independent Evaluation of
IFC’s Development Results
2009
Knowledge for Private Sector Development
2009
http://www.ifc.org/ieg Washington, D.C.2009 © International Finance Corporation (IFC)
2121 Pennsylvania Avenue NW
Washington, D.C. 20433, USA
Telephone: [phone]
Internet: http://www.ifc.org
All rights reserved
This volume, except for the “IFC Management Response to IEG-IFC” and “Chairperson’s Summary” is a product of the In-
dependent Evaluation Group (IEG) and the findings, interpretations, and conclusions expressed herein do not necessarily
reflect the views of IFC Management, the Executive Directors of the World Bank Group, or the governments they represent.
This volume does not support any general inferences beyond the scope of the evaluation, including any inferences about IFC’s
past, current, or prospective overall performance.
The World Bank Group does not guarantee the accuracy of the data included in this publication and accepts no respon-
sibility whatsoever for any consequences of their use. The boundaries, colors, denominations, and other information shown
on any map in a publication do not imply any judgment on the part of the World Bank Group concerning the legal status of
any territory or the endorsement or acceptance of such boundaries.
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Cover photos: Gas company workers beside containers in China; loan officer from an IFC-client microfinance institution
meeting a borrower in Tanzania; a wind turbine farm in the United States. IFC Photo Collection.
ISBN: 978-0-8213-7986-8
e-ISBN: 978-0-8213-7995-0
DOI: 10.1596/978-0-8213-7986-8
Library of Congress Cataloging-in-Publication Data have been applied for.
World Bank InfoShop Independent Evaluation Group–IFC
E-mail: [e-mail] E-mail: [e-mail]
Telephone: [phone] Telephone: [phone]
Facsimile: 202-522-1500 Facsimile: 202-522-0931
Printed on Recycled PaperContents
vii Abbreviations
ix Definitions of Evaluation Terms
xi Acknowledgments
xiii Foreword
xv Avant-propos
xvii Prólogo
xix ﺪـــــﻴﻬﲤArabic Foreword
xxi Executive Summary
xxvii Résumé analytique
xxxv Resumen ejecutivo
ﻱﺬﻴﻔﻨﺗ ﺰﺟﻮﻣxliii Arabic Executive Summary
li IFC Management Response to IEG-IFC
lvii Chairperson’s Summary: Committee on Development Effectiveness (CODE)
lix Advisory Panel Statement
1 1 Strategic Context
1 Growing Participation of the Private Sector in Development
2 Global Financial Crisis
4 Implications for IFC
5 Part I: Financing Development
7 2 Performance of IFC Investment Operations
7 Portfolio Pattern
10 Project Development Results
20 Impact and Implications of the Global Financial Crisis
27 Part II: Knowledge for Development
29 3 Performance of IFC Advisory Services
29 Knowledge, Development, and the Private Sector
31 Growth of IFC Advisory Services and Strategic Considerations
35 Organizational Alignment of Advisory Services
40 Delivery of IFC Advisory Services
51 Results of IFC Advisory Services
iiiINDEPENDENT EVALUATION OF IFC’S DEVELOPMENT RESULTS 2009
65 4 Conclusions and Recommendations
65 Conclusions
67 Recommendations
69 Appendixes
71 A: Project Sample Representativeness—Investment Operations
73 B: Project Evaluation Methodology—Investment Operations
79 C: Further Details on Results Characteristics—Investment Operations
81 D: Risk-Adjusted Expected Development Outcome Regression:
Model Specification, Analysis, and Preliminary Results
85 E: Chronology of IFC Advisory Services
89 F: Advisory Services Facilities, by Region
91 G: Project Sample Representativeness—Advisory Services
95 H: Project Evaluation Methodology—Advisory Services
97 I: Findings from IFC-Commissioned Reviews of IFC Advisory Services
101 J: High-Level Comparison of IFC Advisory Services with Other Multilateral
Development Banks
115 Endnotes
121 Bibliography
Boxes
12 2.1 How Are Project Development Outcomes Rated?
13 2.2 IFC Investment Outcome Rating
13 2.3 Illustrations of High and Low Project Development Outcomes
14 2.4 Measuring IFC Work Quality
21 2.5 Projects under Implementation in the Downturn Are Most Vulnerable to
the Crisis
51 3.1 How Does IFC’s Delivery Approach Compare with That of Other
Development Institutions?
53 3.2 How Is Development Effectiveness Rated?
54 3.3 What Does Strong Advisory Services Development Performance Look Like?
55 3.4 Illustrations of Low Development Impact
61 3.5 Illustrations of IFC Additionality
62 3.6 How Is IFC Additionality Rated?
Figures
2 1.1 Stronger Growth Has Generally Been Associated with Increased Private
Capital Flows
2 1.2 Knowledge Accumulation Is Key for Future Productivity
3 1.3 Growing Share of Bank Group Financing to the Private Sector
3 1.4 Bank Group Knowledge Services Are Increasingly Aimed at the Private
Sector
8 2.1 IFC’s per Client Exposure Has Doubled in the Last Ten Years
9 2.2 IFC and World Bank IDA Operations Increased over FY06–FY08
9 2.3 IFC Has Made Up a Higher Share of Multilateral Development Bank
Finance in Asia, MENA, and LAC
10 2.4 Project Development Outcomes and IFC Investment Returns Improved in
the Last Three Years
11 2.5 Improvement in 2006–08 Followed Historically Weak Performance in
2004–05
ivCONTENTS
11 2.6 Country Business Climate Risk Improved in Most Regions
12 2.7 IFC Work Quality Improved Again
15 2.8 Strong IFC Work Quality Can Help Clients Overcome Risk
15 2.9 Strong Additionality Is Important for Effective Risk Mitigation
15 2.10 Better Ratings Again in Europe and Central Asia and in Latin America
and the Caribbean
16 2.11 IFC Appraisal Quality and Realized Additionality Were Much Weaker in
East Asia and the Pacific and in Sub-Saharan Africa
16 2.12 External Risks Were Highest in Sub-Saharan Africa
17 2.13 Performance Was Strong in IFC’s Strategic Sectors
18 2.14 Environmental and Social Effects Performance Weakened in 2008
18 2.15 Environmental and Social Effects Performance Has Declined Sharply for
Financial Intermediary Operations
19 2.16 Project Development Outcomes and IFC Profitability Were Strongly Correlated
20 2.17 On a Cumulative Basis, High/High Outcomes Were Achieved Half the Time
21 2.18 Best Results When IFC Investments Were Made in the Wake of a Crisis
25 2.19 Global and Regional Investments Tend to Perform Less Well Than Single-
Country Investments<