To help staff make better decisions, the International Finance Corporation is introducing a new incentives framework, which will reward achievements in development outcomes. The new framework may be a welcome step, but the World Bank Group, which includes the IFC, has said incentives will reward staff on their ability to mobilize private sector funding. It’s critical that the IFC include in their rewards scheme recognition of staff that respect human rights. This means incentivizing staff to conduct robust due diligence, meaningfully consult with communities, and productively engage with the IFC’s accountability office, the Compliance Advisor Ombudsman, as it responds to complaints from communities affected by IFC investments.

Lifting up positive development impact is a step in the right direction, but AIMM leads to a few questions — how will the IFC define impact? So far, the IFC’s definition of “positive development impact” emphasizes realizing anticipated achievements of a specific project, including its contribution to the creation of markets.  A complete measurement of development impact must include consideration of the critical human rights impacts on local communities, such as displacement, environmental devastation, and heightened inequality.

Moreover, a measurement of development cannot be complete without considering whether staff proactively interact with the CAO to address harms to communities. The CAO aims to improve social and environmental outcomes on the ground by responding to complaints from project-affected communities. Communities can request the CAO resolve their complaints through collaborative efforts or through an investigation into whether the IFC's policies have been complied with.

Read the full article by Emily Gabor about the IFC's incentive framework from Devex International Development