A person interested in foreign relations, business, international trade, finance and related fields may want to know, “What is the International Finance Corporation?” Also called the IFC, the International Finance Corporation falls under the umbrella of the World Bank Group. Its mission and functions are related to promoting economic security and prosperity to people in developing countries.
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Overview of the IFC
The IFC is a part of the World Bank Group. It holds stats as the world’s largest economic development group that is focused on assisting private sector growth and development in specific locations around the world. It primarily works in developing economies. It has two goals to achieve by 2030. Those are to end extreme poverty and to encourage and promote the sharing of prosperity in every nation around the world. The IFC does this by working with private businesses in order to help them expand their services, build additional facilities, hire and train more workers and pay their workers better.
How the IFC Fits in With Sister Organizations
The IFC’s sister organization is the World Bank. While the World Bank focuses on low and no-interest loans and credits and the public sector, the IFC does these things for the private sector of economies around the world. Like its sister organization, it offers financing, technical help, global experience, expert advice and innovative thinking to solve problems and expand markets around the world. It also specializes in sustainable economic development. It has its own leadership board. The IFC is held accountable through its Office of the Compliance Advisor Ombudsman, which is an independent entity.
Where the IFC Gets Its Funding
The World Bank Group has 189 member nations. In addition to getting some of its administrative support and funding through the umbrella group, it also raises funds through bond issuances. Those bonds come from international capital markets. A person who has a retirement account or other type of investment account may be a contributor to those funds. The IFC has consistently maintained a high credit rating through all of the major ratings agencies, including Moody’s, Standard and Poor and others. The IFC also gets some of its funding through discount notes, global benchmarks bonds, green and social bonds, private placements and uridashi notes.
Examples of the Services and Projects of the IFC
The types of services and projects funded by the IFC are diverse. In Armenia, the group helped finance greenhouses for growing produce, explains the IFC. Throughout sub-Saharan Africa, the group has financed the building and expansion of fiber optic cable infrastructure so that people can access the internet. In Uganda, the group has financed small business loans to dairy farmers so that they can expand their herds and sell their dairy products domestically and internationally. In Vietnam, the IFC has set up loans and financing for the building of green housing units and solar-powered buildings.
Anyone who plans on a career in international relations, business, finance, economics or humanitarian work should understand what the IFC is, what it does and how it fits into the global economy. Familiarity with this organization could be helpful to anyone applying for jobs in these areas of expertise. Knowing what the International Finance Corporation is could also help a person advance in their career.
