The International Finance Corporation’s and Multilateral Investment Guarantee Agency’s Support for Private Investment in Fragile and Conflict-Affected Situations, Fiscal Years 2010–21 : An Independent Evaluation
The World Bank Group estimates that, by 2030, up to two-thirds of the world’s extreme poor will live in countries characterized by fragility, conflict, and violence (FCV). The Bank’s FCV strategy emphasizes the critical role the private sector play...
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| Format: | Report |
| Language: | English |
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Washington, DC
2022
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| Online Access: | http://documents.worldbank.org/curated/en/099417004272236212/IDU055f7408a08f1504b5c0b3fb06fddb3d79e70 http://hdl.handle.net/10986/37482 |
| Summary: | The World Bank Group estimates that,
by 2030, up to two-thirds of the world’s extreme poor will
live in countries characterized by fragility, conflict, and
violence (FCV). The Bank’s FCV strategy emphasizes the
critical role the private sector plays in providing jobs and
income in fragile and conflict-affected situations (FCS) and
its importance in contributing to sustainable development in
FCS countries. Supporting investments in FCS has been a
strategic priority for both the Bank’s International Finance
Corporation (IFC) and Multilateral Investment Guarantee
Agency (MIGA) for over a decade. In fact, IFC and MIGA
adopted ambitious volume targets for investments and
guarantees in International Development Association (IDA)
and FCS countries. For instance, IFC committed to delivering
40% of its business volume in IDA and FCS countries, and
15–20% in low-income IDA and IDA FCS countries by 2030. MIGA
committed to increasing the share of the volume of
guarantees issued to projects in FCS and IDA countries to
30– 33% of its guarantee volume by FY23. But despite
gradually deploying new tools and instruments in FCS,
increasing investments in FCS has been challenging. This
evaluation assesses IFC’s and MIGA’s effectiveness in
supporting private investment and development impact in
Fragile and Conflict-affected Situations (FCS) and
identifies key factors constraining private investment in
FCS and possible trade-offs that practitioners and
policy-makers need to consider. Based on its findings, IEG
makes three recommendations to strengthen the relevance and
effectiveness of IFC’s and MIGA’s support to investments and
private sector development in FCS. |
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