The International Finance Corporation (IFC) is in the process of a considerable transformation, designed to grow its operations and expand their development impact. By 2030, the Corporation has committed that 40 percent of annual own-account commitments will be in International Development Association (IDA) and fragile and conflict-affected states, requiring a quadrupling of annual program delivery in those countries. In addition, the corporation has promised to invest more heavily in climate-friendly projects, as well as focus more on projects with the potential for significant development outcomes.
IFC’s board and leadership understand that meeting these goals requires a change in the way that the corporation operates, and a number of recent reforms will help it to deliver. But while these reforms are a welcome start, the IFC will have to change further if it is to meet its targets and reach its development potential. This paper discusses the rationale and elements of that change agenda, focused on ensuring the IFC best serves its ultimate clients.