Hello our readers.
‘International’ or ‘Global’ is one of the most often-used words, when we are taking about finance. Right, we are interested in international financial system, global financial crisis, and other international financial issues. And to regulate all those cross border activities, there are international organizations responsible for global governance.
‘International Financial Corporation’ is one of those international organizations, as a member of the World Bank (WB) Group. It shares the same mission with the WB, ‘to reduce global poverty.’ Its vision states that ‘people should have the opportunity to escape poverty and improve their live.’ Accordingly, it aims at ‘creating opportunity for people to escape poverty and improve their live.’
For this ends, what does IFC do? Financial markets account for almost half of IFC’s new investments each year. The reason for such a large portion is that sound financial markets are vital to development. Being vital to development means sound financial markets are supposed to ensure efficient resource allocation, create jobs, and spur economic growth.
To build sound financial markets worldwide, IFC seeks to blend investment with advice. Namely, IFC has three businesses, Investment Services, Advisory Services, and IFC Asset Management. Being closely inter-related, those businesses are mutually reinforcing.
By carrying out those businesses, IFC pursues sound, inclusive and sustainable financial markets leading to shared prosperity worldwide. This notion is somehow similar to FSC’s previous mention, “Our financial system should be socially responsible, allowing financial and economic benefits to be shared by people.” It appears that FSC’s pursuit and measures to help out the financially vulnerable are well aligned with the values sought by IFC.
Shall we have a look at what was achieved by IFC last year? Let me introduce you the 2012 annual report for the next blog post!