A few months ago, the International Finance Corporation (IFC), World Bank’s investment arm, made an investment in two Israeli private companies, based in Israel. This violates IFC mandate to operate only in developing countries.
The International Finance Corporation (IFC) is the arm of the World Bank that funds the private sector in developing countries in an aim to fight poverty, as explained on its website: “IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector in developing countries.” Furthermore, “IFC’s vision is that people should have the opportunity to escape poverty and improve their lives.” It provides funding in the form of loans and/or equities to companies operating in developing countries. By its mandate it cannot invest in high income countries. Continue reading