Added to concerns about whether or not the IFC is taking enough risks by investing in countries and sectors that really need it, there is also worry that the IFC might be 'crowding out' the private sector.
An evaluation of the World Bank's private sector lending finds that amidst overall high development outcomes, poor environmental and social performance continues to plague projects in Africa. For the first time, the evaluators look at the sensitive question of 'additionality'.
The main findings of this year's report echoed those of previous years' IEDRs (see Update 57):
* 63 per cent of projects evaluated received "high development outcomes" (up from 59 per cent in 2007);
* Large operations tend to be more successful than smaller ones; Project performance in Eastern Europe and Central Asia (ECA) and Latin America and the Caribbean (LAC) was much stronger than that in Asia, Africa and the Middle East;
* Weak environmental and social effects continue to be a key feature of underperformance in Africa; and
* Development outcomes were strongest in the infrastructure and finance sectors, and weakest in manufacturing, services and ICT.
Read the whole article (a link to the Independent Evaluation of Development Report 2008 is also available) here =>Recommend this Post