Upstream Advisory for Creating Investment Opportunities, Sustainable Growth, and Jobs: The FIAS FY22-26 Strategy Cycle Fias THE FACILITY

 
Upstream Advisory for Creating Investment Opportunities, Sustainable Growth, and Jobs: The FIAS FY22-26 Strategy Cycle Fias THE FACILITY
Strategic plan for
                                     FIAS operations from
                                     July 1, 2021, through
                                         June 30, 2026

Upstream Advisory for
Creating Investment Opportunities,
Sustainable Growth, and Jobs:
The FIAS FY22–26 Strategy Cycle
Fias
       THE FACILITY
       FOR INVESTMENT
       CLIMATE ADVISORY
       SERVICES
Upstream Advisory for Creating Investment Opportunities, Sustainable Growth, and Jobs: The FIAS FY22-26 Strategy Cycle Fias THE FACILITY
About IFC
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    leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org.

    © International Finance Corporation. July 2021. All rights reserved.

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    About the Facility for Investment Climate Advisory Services (FIAS)
    Through the FIAS program, the World Bank Group and donor partners facilitate reforms in developing countries to foster open, productive, and competitive markets and to unlock sustainable private
    investments in sectors that contribute to growth and poverty reduction. The FIAS program is managed by the International Finance Corporation (IFC), a member of the World Bank Group, and
    implemented by IFC Advisory Services teams. For more information, visit https://www.thefias.info.

2   Upstream Advisory for Creating Investment Opportunities, Sustainable Growth, and Jobs
Table of Contents
About FIAS                                                    4   Part 3: What FIAS Will Do                                   24
Executive Summary                                             6
                                                                  FIAS Priority Areas                                          25
Part 1: Results and Learning—the Evolution of FIAS           9
                                                                  Client-Facing Projects                                       26
From Economy-Wide to Sector-Specific                          9
                                                                  Pillar 1: Improve the Business Environment                   27
‘Foreign’ Becomes ‘Facility’                                  9
                                                                  Pillar 2: Expand Market Opportunities and Increase
The Past Three Strategy Cycles                                9   Firm-Level Competitiveness                                   28

                                                                  Global Knowledge Development Projects                        30
Part 2: FIAS and Upstream in the COVID-19 Context 12
                                                                  FIAS Programmatic Themes                                     33

COVID-19 Undermining Investor Confidence                     12   Gender and Inclusion                                         33

IFC Upstream Well Timed to Respond                           13   Green Competitiveness                                        36

Policy Changes Can Set Stage for Recovery                    13   Digitalization                                               37

FIAS Supporting the Full Spectrum of IFC Advisory Services   14
                                                                  Part 4: Monitoring & Evaluation                             38
FIAS Positioned to Support Upstream                          21

Strategic Shift Required                                     22   The FIAS FY22–26 Scorecard                                   38

Coordination and Collaboration with World Bank               23   FIAS Priorities and Targets                                  39

                                                                  A Note of Thanks                                             42

                                                                                                               The
                                                                                                                TheFIAS
                                                                                                                     FIAS
                                                                                                                        FY22–26
                                                                                                                          FY22–26
                                                                                                                                Strategy
                                                                                                                                  Strategy
                                                                                                                                         Cycle
                                                                                                                                           Cycle   3
About FIAS
    Founded in 1985, the Facility for Investment Climate Advisory Services (FIAS) supports
    World Bank Group projects that foster open, productive, and competitive markets, and unlock
    sustainable private investment in business sectors that contribute to growth and poverty
    reduction. FIAS is managed by IFC and supported by nearly 20 Development Partner countries
    and donor institutions and co-financed by the World Bank Group. FIAS is one of the Bank
    Group’s oldest and largest multi-donor trust funds.

    FIAS operates at the intersection of government      investment and increase their participation in        (IDA), the Sub-Saharan Africa (SSA) region,
    and private enterprise to ensure that business       international markets.                                and countries in fragile and conflict-affected
    environments—as reflected by laws, regulations,                                                            situations (FCS). Through four years of the
    and other elements—enable private sector             The FIAS program is administered by the               five-year FY17–21 strategy cycle, FIAS provided
    growth and avoid imposing unnecessary                International Finance Corporation (IFC), a            support for 177 projects that generated 153
    regulatory burdens. Through economy-wide             member of the World Bank Group. Since 1997,           enabling environment and sector reforms in 57
    and sector-specific work, FIAS aims to develop       $539.2 million has been contributed in support of     client countries, with 60 percent of the reforms in
    dynamic and resilient economies that promote         FIAS activities: $358.4 million from donors; $170.3   IDA, 44 percent in SSA, and 26 percent in FCS.
    economic inclusion through investment growth,        million from the World Bank Group; and $10.4
    economic diversification and innovation, and         million from client countries. Donors supporting      For the FY22–26 strategy cycle, IFC anticipates
    inclusive job-creation. FIAS is supporting an        FIAS in the FY17–21 strategy cycle were Australia,    operating FIAS with an annual budget of
    ambitious and proactive agenda that includes         Austria, the Bill & Melinda Gates Foundation,         $40 million, with expanded work in the
    a strong programmatic focus on gender themes         Canada, the European Union, France, Ireland, the      thematic areas of gender, climate change,
    and greatly increased emphasis on helping            Republic of Korea, Luxembourg, the Netherlands,       and digitalization, and a sharp increase in the
    clients build green, and develop and expand their    Norway, Switzerland, Sweden, Trademark East           proportion of work devoted to sector-specific
    digital economies. By increasing their economic      Africa, the United Kingdom and the United States.     projects supporting IFC’s Creating Markets
    competitiveness, FIAS helps developing                                                                     Upstream Agenda. For more information, visit
                                                         FIAS prioritizes work in borrowing countries          https://www.thefias.info.
    economies attract greater domestic and foreign       of the International Development Association

4   Upstream Advisory for Creating Investment Opportunities, Sustainable Growth, and Jobs
CONTRIBUTIONS TO        Through four years of
FIAS SINCE 1997         the five-year FY17-21
                        strategy cyle, FIAS
$539.2 m                provided support for:
                                                            For the FY22–26
IN SUPPORT OF FIAS
ACTIVITIES              177 PROJECTS                        strategy cycle,
                                                            IFC anticipates
                        GENERATING                          operating FIAS
$358.4 m                153 enabling environment            with an annual
FROM DONORS             and sector reforms in 57 client     budget of
                        countries:

$170.3 m
FROM THE WORLD
                        60    % of reforms
                                 in IDA                     $40 m
BANK GROUP
                        44    % of reforms in
                                 Sub-Saharan Africa (SSA)

$10.4 m
FROM CLIENT COUNTRIES   26    % of reforms
                                 in FCS

                                                                The FIAS FY22–26 Strategy Cycle   55
Executive Summary

    Confronting an unprecedented global economic challenge, the FIAS partnership enters the
    next five-year strategy cycle with the agility to evolve and meet urgent client needs, combined
    with the stability to continue supporting the core mission of improving the climate for private
    sector growth in some of the world’s most vulnerable countries.

    The next five years of FIAS-supported work           countries that have already begun to show
    will be dominated by a focus on recovering           dynamism and resilience will need to redouble
    and rebuilding from the economic devastation         their efforts.
    caused by the COVID-19 pandemic. The COVID
    crisis profoundly reshaped the global economic       In the FY22–26 strategy cycle, FIAS-supported
    landscape, creating circumstances that require       advisory services will undergo a decided shift
    daring new approaches by governments, firms,         in emphasis from supporting mainly economy-
                                                         wide reform efforts to focusing on sector-specific
                                                                                                              FIAS aims to become a key
    and households to repair the damage as quickly
                                                         and firm-level reforms that lead client countries    source of support in enabling
    as possible and embrace emerging opportunities.
    New policies will be needed to allow capital,        and key private sector firms and investors in        the development goals of
    labor, skills, and innovation to shift to new        the direction of investments with job- and           the IFC 3.0 Creating Markets
                                                         income-producing potential. FIAS will be setting
    purposes to build a greener, stronger post-                                                               Upstream Agenda and
    COVID economic environment. Domestic and             ambitious targets for advancing the economic
                                                         prospects of women and the green economic            building the private sector’s
    foreign investment in developing countries, a
    priority area of FIAS-supported work, collapsed      development agenda. The FY22–26 portfolio            potential in IFC’s client
    in 2020. Countering the investment headwinds         will also include a set of focused interventions     countries.
    will require a major push to improve business        in advancing the digitalization of developing
    environments. The most vulnerable countries,         economies. The FIAS strategy sees climate
    which form part of the FIAS client country           change not only as an environmental threat that
    portfolio, will need help in rebuilding vibrant      harms livelihoods and threatens health but also
    private sectors laid low by the pandemic. Even       as a tremendous business opportunity.

6   Upstream Advisory for Creating Investment Opportunities, Sustainable Growth, and Jobs
FIAS aims to become a key source of support in         anticipates that COVID-oriented engagements          but the program will place much greater
enabling the development goals of the IFC 3.0          in the Upstream context will dominate the            emphasis on sector-specific work in fields such as
Creating Markets Upstream Agenda and building          FY22–26 strategy cycle. Advisory geared toward       agribusiness, manufacturing, and services, and
the private sector’s potential in IFC’s client         COVID recovery will vary from client to client but   on firm-level work, particularly in cases where it
countries. Upstream activities help stimulate and      with common themes. In the investment policy         might lead to the creation of new IFC investment
create conditions that result in the flow of private   and promotion space, for example, advisory           opportunities under the Upstream initiative. This
capital—domestic and foreign—into productive           teams working in the COVID-19 environment            sector-level focus will include targeted thematic
investment in IFC’s countries of operation.            are focused on helping client countries retain       interventions that support advances in the cross-
Upstream work can be accomplished as quickly           the investment they have already secured in the      cutting thematic areas of climate, gender, and
as in a few months or take several years. It can       face of sharp declines in new investment. Other      digitalization.
entail both regulatory reforms that will unlock        interventions that are already part of IFC’s COVID
more private investment and the creation of            response include helping clients transition from     Part 1 presents a summary of FIAS work since
projects that lead to specific opportunities           emergency economic policies to reformed and          the beginning of the multi-donor trust fund in the
attractive to potential investors. The Upstream        streamlined regulatory regimes, assisting sectors    mid-1980s.
approach recognizes that development                   such as tourism that have been hard hit by the
institutions can no longer achieve their goals         pandemic, and identifying sectors and individual
by waiting for investment opportunities to             firms with the best chance of weathering the
come along. Rather these institutions must             crisis.
work to create opportunities through proactive
interventions and activities that support the          This FY22–26 strategy document is titled
creation and realization of specific projects, for     Upstream Advisory for Creating Investment
which IFC is a likely financing partner.               Opportunities, Sustainable Growth, and Jobs
                                                       to reflect the urgent mission of IFC Advisory
The Upstream initiative was conceived prior to         Services (AS), supported by FIAS, over the next
the emergence of the COVID-19 pandemic in              five years. FIAS is evolving and expanding beyond
2020 but it is highly relevant to the efforts to       its longstanding mission of economy-wide
help developing countries through the phases           advice on reforms that, in a general way, make
of relief, restructuring, and resilient recovery.      it easier for the private sector to do business,
Given the severity of the economic damage              get permits, build new factories, connect to
caused by the pandemic and the long recovery           the power grid, and trade across borders. This
period anticipated, the FIAS Program team              reform work remains part of the FIAS agenda,

                                                                                                                              The FIAS FY22–26 Strategy Cycle    7
Part 2 outlines the development challenges           cross-cutting work planned under the Gender            retained—a priority in the difficult economic
    confronting IFC client countries, particularly       and Inclusion, Green Competitiveness, and              conditions created by the COVID-19 pandemic.
    low-income and conflict-affected states, and         Digitalization thematic areas.                         FIAS will be developing an approach for
    describes how the Upstream approach can play                                                                measuring and reporting on the integration of
    a crucial role in helping economies hobbled by       Part 4 focuses on FIAS Monitoring & Evaluation         digitalization components into client-facing
    COVID-19 ‘build back better.’ This section also      (M&E), beginning with a revised FIAS Scorecard         projects.
    describes the interrelationship between IFC          for the strategy cycle, with new measurements in
    regional advisory strategies and the advisory        the areas of investment, gender, climate change,       FIAS-supported work has demonstrated the
    work supported by IFC industry and operational       and jobs. This will include new measurements           importance of a conducive business environment
    teams, and how FIAS, in funding projects that        made possible by a jobs pilot project examining        to private sector development. At the same
    emerge from these agendas, will be supporting        FIAS impact on job creation in both economy-           time, it has shown that an adequate business
    a broader spectrum of advisory work than in          wide and sector-specific spheres. The Scorecard        environment is necessary but insufficient,
    previous strategy cycles. Part 2 also covers the     will track gender and climate-change-related           especially as economies deepen and broaden
    important continuing collaboration between the       activities in the FIAS portfolio, including the goal   sector diversification. Developing countries
    World Bank and IFC through FIAS.                     of doubling the corporate climate and gender           need to engage with strategies and policies
                                                         commitments from the FIAS Core Account. This           geared to sector and firm levels so that their
    Part 3 describes in detail what FIAS will do over    will position FIAS as a key driver in advancing        private sectors can recover from the COVID crisis,
    the next five years through a program supported      the gender inclusion and climate-related work          retain and expand their domestic and foreign
    by two strategic pillars—Improve the Business        across IFC. It will also report on the strong and      investment flows, and generate transactions and
    Environment and Expand Market Opportunities          continuing linkages between FIAS-supported             investments that produce income and create
    and Increase Firm-Level Competitiveness—             work and Development Policy Financing (DPF)            jobs. FIAS, which is under IFC management
    and by developing advisory programs tailored         and Development Policy Operations (DPOs)               as of FY21, is eager to move ahead with its
    to the specific needs of countries and regions.      undertaken by the World Bank. The revised              Development Partners in pursuing this exciting
    The strategy document outlines the mutually          Scorecard will collect impact data not only on         and challenging agenda.
    supportive role of both client-facing and global     new investment generated with the help of
    knowledge development projects and the               FIAS-supported projects but also investment

    Developing countries need to engage with strategies and policies geared to sector and firm levels so that
    their private sectors can recover from the COVID crisis, retain and expand their domestic and foreign
    investment flows, and generate transactions and investments that produce income and create jobs.

8   Upstream Advisory for Creating Investment Opportunities, Sustainable Growth, and Jobs
Part 1: Results and Learning—
the Evolution of FIAS
From Economy-Wide                                      contributions from clients. From FY97 through            their indigenous economies and become more
to Sector-Specific                                     FY20, $539.2 million has been contributed                attractive to international investors and traders.
                                                       to support FIAS activities: $358.4 million in
FIAS got its start in the mid-1980s as a single-       donor contributions; $170.3 million in Bank              Looking at the priorities established by the
client endeavor helping the government of China        Group contributions; and $10.4 million in client         FIAS Development Partners over the past three
revamp its economy to be more conducive to             contributions.                                           strategy cycles stretching back a dozen years, a
attracting foreign direct investment (FDI) and                                                                  trajectory toward more fine-grained, investment-
more competitive with global industrial peers.         ‘Foreign’ Becomes ‘Facility’                             and job-oriented work comes across clearly. This
IFC’s initial success led to the development                                                                    trajectory continues into the new cycle, with an
                                                       Originally the ‘F’ in FIAS stood for ‘foreign,’ as the   intensified focus on investment generation and
of an advisory project and, eventually, an             program focused on helping developing countries
advisory services program supported over the                                                                    the Upstream initiative geared toward leading
                                                       attract greater cross-border investment. This            to specific private sector investment response,
ensuing decades by more than 20 Development            remains a priority for FIAS and, in fact, will grow
Partners—both countries and philanthropic                                                                       including IFC investments.
                                                       in importance during the FY22–26 strategy cycle.
institutions. The list of donors has included          But the emphasis in international development
Australia, Austria, the Bill & Melinda Gates                                                                    The Past Three Strategy Cycles
                                                       evolved to include building domestic economies
Foundation, Canada, Denmark, the European              by assisting in business formation and                   FY08–11 Strategy Cycle: Client-facing projects
Union, the Ewing Marion Kauffman Foundation,           formalization, supporting initiatives to promote         were economy-wide in scale. The approach to
Finland, France, Iceland, Ireland, Italy, Japan, the   the growth of small and medium enterprises               client needs was product centric. The use of
Republic of Korea, Luxembourg, the Netherlands,        (SMEs), and helping client governments establish         indicators and benchmarking was centered on
New Zealand, Norway, Portugal, Spain, Sweden,          special enterprise zones (SEZs)and other                 the Doing Business model. The role of FIAS-
Switzerland, Trademark East Africa, the United         initiatives to encourage domestic investment             funded activities was to design solutions and
Kingdom, the United Nations Development                and growth. FIAS thus became a Facility for              support implementation. Teams managed for
Programme, and the United States. FIAS has             Investment Climate Advisory Services, supporting         outcomes. Cross-cutting themes were accorded
been co-financed by the World Bank Group and           initiatives to help countries simultaneously build       little emphasis and only anecdotal results were
Development Partners, with modest additional                                                                    available as to their outcomes.

                                                                                                                                   The FIAS FY22–26 Strategy Cycle   9
FY12–16 Strategy Cycle: A majority of client-                 IN FY12–16,               FIAS-SUPPORTED
     facing projects were done on an economy-
     wide basis, with the addition of projects in the              FIAS-SUPPORTED            PROJECTS GENERATED:
     agribusiness and tourism sectors. The approach                PROJECTS RECORDED
     to client needs increasingly emphasized issue-
     based programmatic approaches. Benchmarking
     highlighted investment climate indicators and                 341                       $208m
     product-level assessments. The role of FIAS-                                            IN COMPLIANCE COST
     funded activities was to promote innovation and               REFORMS DURING
                                                                                             SAVINGS REFLECTING
     facilitate and catalyze the incubation of ideas.              THE FIVE-YEAR CYCLE
     Teams managed for development impact. Key                                               LOWER BUSINESS COSTS
     cross-cutting themes were identified in the areas                                       DUE TO STREAMLINED
                                                                        83
     of social inclusion, economic governance and
     transparency, the promotion of competition, and                                         REGULATIONS
     green growth. Global knowledge development                    IN                        AND PERMITTING
     products (KDPs) were increasingly emphasized
     as the Global Practices structure was launched in
                                                                   DEVELOPING                PROCESSES.
     FY14, with FIAS coming under joint World Bank-                COUNTRIES
     IFC oversight in the Trade & Competitiveness

                                                                                             $1.58b
     Global Practice. FIAS-supported projects
     recorded 341 reforms in 83 developing countries,              EXCEEDING THE
     well above the target of 250 reforms for the
     five-year cycle. Nearly three-quarters of the
                                                                   TARGET OF

                                                                   250                       IN NEW INVESTMENT
     reforms were recorded in IDA, two-thirds in Sub-
     Saharan Africa, and one-third in FCS countries.
     FIAS-supported projects generated $208 million
                                                                                             TO CLIENT
     in compliance cost savings, reflecting lower
                                                                  REFORMS WERE               COUNTRIES.
     business costs due to streamlined regulations
     and permitting processes. FIAS-supported teams               ACHIEVED DURING
     helped generate $1.58 billion in new investment              THE FIVE-YEAR CYCLE
     to client countries.

10   Upstream Advisory for Creating Investment Opportunities, Sustainable Growth, and Jobs
FY17–21 Strategy Cycle: Client-facing projects        reforms, with 60 percent in IDA countries, 44          FY17–21 Strategy Cycle:
incorporated economy-wide endeavors and an            percent in Sub-Saharan Africa, and 26 percent in

                                                                                                             93        % client
expanded agenda focused on the competitiveness        FCS. The cumulative client satisfaction rating for                        satisfaction rating
of specific sectors in client countries. The          the cycle was 93 percent (against a target of 90                   for the cycle
approach to client needs integrated solutions         percent), and 75 percent of completed projects
for connectivity and open markets. Indicators         received positive Development Effectiveness

                                                                                                             75%
                                                                                                                           of completed projects received
and benchmarking involved diagnostics that            ratings, ahead of the 71 percent average for all                     positive Development
helped clients define their competitive position      IFC AS over the same period.                                         Effectiveness ratings
and options. FIAS-funded activities sustained
implementation results, leveraged World               The independent Mid-Term Evaluation conducted
Bank Group instruments and private sector             by Economisti Associati found the FIAS program
engagement, and established global thought            to be well aligned with current World Bank Group
                                                                                                             • Active engagement to streamline the
leadership. Competition policy worked to address      strategy. The evaluation noted that while FIAS
                                                                                                               allocation process and ensure timely
price-fixing cartels, strengthened competition        is performing well at the project level, frequent
                                                                                                               deployment of available funds to FIAS client-
laws and policies, eliminated unreasonable            reorganizations have contributed to weaknesses
                                                                                                               facing and global knowledge projects.
constraints on competition, and enhanced the          at the program level and had yet to make good
technical capacity of government agencies             on commitments to expand impact targets, for           • Development of a methodology for jobs
that work to ensure open and competitive              example, to measure the job-creation effects of          measurement to provide another indicator
markets. Teams managed for impact in jobs and         FIAS-supported work. Well before the completion          for FIAS-supported projects.
productivity geared toward achieving the Bank         of the Mid-Term Evaluation, the FIAS team was
                                                      taking proactive steps to address the issues           • Strengthened organizational ties between
Group’s Twin Goals. Themes were mainstreamed
                                                      raised. These include:                                   the FIAS program and IFC, whose personnel
across the three FIAS pillars (Improve the Business
                                                                                                               do most of the client-facing advisory work
Environment, Expand Market Opportunities,               • Stabilization of program management under            supported by FIAS.
and Strengthen Firm Competitiveness) and were             a newly appointed FIAS Program Manager
monitored through improved results tracking.              with extensive experience with IFC AS and        These steps have placed FIAS on a solid footing
Reorganization of the Global Practices culminated         trust fund management.                           to move ahead into the FY22–26 cycle playing a
in FY21 with the shift of FIAS management from                                                             leading role in mobilizing Development Partner
the joint Equitable Growth, Finance & Institutions      • More frequent direct interaction with            support for a more sector-focused advisory
(EFI) practice group to IFC management.                   Development Partner representatives in           strategy. It is geared toward creating the
                                                          bilateral meetings between FIAS donors           conditions for investment opportunities to be
Through four years of the five-year strategy cycle,       and the FIAS program Global Director and         initiated and actuated by IFC teams under the IFC
FIAS-supported teams helped bring about 153               Program Manager.                                 3.0 Creating Markets Upstream strategy.

                                                                                                                             The FIAS FY22–26 Strategy Cycle   11
Part 2: FIAS and Upstream in the COVID-19 Context

     The pandemic has triggered the deepest global recession in decades, and what may turn out to
     be one of the most unequal in terms of impact,” World Bank Group President David Malpass told
     G20 Finance Ministers and Central Bank Governors in July 2020. “For the poorest countries,
     poverty is rising rapidly, median incomes are falling, and growth is deeply negative. Debt
     burdens—already unsustainable for many countries—are rising to crisis levels.

     As the FIAS FY22–26 strategy cycle began on          with as many as 100 million people being pushed    COVID-19 Undermining Investor
     July 1, 2021, the COVID-19 pandemic had been         into extreme poverty by the economic effects of    Confidence
     wreaking havoc on global health and global           the pandemic.
     economies for nearly 18 months. Even the                                                                The pandemic has worked to depress investor
     most optimistic forecasts on the distribution        “The pandemic has triggered the deepest            confidence to historic lows, according to analysis
     of vaccines to prevent the disease envision          global recession in decades, and what may turn     by the FIAS-supported Indicator-Based Reform
     continuing health risks—and associated               out to be one of the most unequal in terms of      (IBR) team. COVID-19 and government measures
     economic fallout—for an extended period. IFC         impact,” World Bank Group President David          to contain the health crisis, coupled with
     estimates that domestic private investment and       Malpass told G20 Finance Ministers and Central     international production networks and globalized
     FDI in emerging economies will have fallen in        Bank Governors in July 2020. “For the poorest      consumption, disrupt business activities through
     2020 by almost $700 billion and $250 billion,        countries, poverty is rising rapidly, median       four distinct channels: falling demand, reduced
     respectively, and may not return to pre-crisis       incomes are falling, and growth is deeply          supply, deteriorating credit conditions and
     levels until 2023 or later. The impact of the        negative. Debt burdens—already unsustainable       liquidity, and rising uncertainty. The crisis is
     pandemic is expected to be especially severe         for many countries—are rising to crisis levels.”   disrupting the pathways through which countries
     on the world’s most poor and vulnerable,                                                                achieve productivity growth—and, by extension,
     jeopardizing decades of hard-won development         World Bank Chief Economist Carmen Reinhart         job and wage growth. Disruptions in international
     gains. For the first time since 1998, the World      calls the pandemic-driven economic downturn “a     production threaten spatial integration, for
     Bank is warning of an increase in global poverty,    once-in-a-century global—truly global—crisis.”     example, while reduced cross-border investment
                                                                                                             is undermining technological upgrading.
12   Upstream Advisory for Creating Investment Opportunities, Sustainable Growth, and Jobs
The economic effects of the pandemic                   create opportunities. The essence of Upstream is      Group scale its private sector development
are expected to persist long after cases of            that rather than passively waiting for investors,     impact on the ground through increased high-
COVID-19 subside. This means that virtually            IFC will approach them directly with investment       quality private sector investment and the
the entire FY22–26 FIAS strategy cycle will be         proposals. It is about creating public good as        generation of new transaction opportunities in
taken up with the task of relief, recovery, and        Upstream increases investment opportunities           sectors and places where none existed.
restructuring from the pandemic’s economic             for the global investing community by growing
impact to build resilience against future shocks.      the pie and, as a result, channeling funds into       Policy Changes Can Set the Stage
Much of the challenge that lies ahead centers on       developing economies.                                 for Recovery
policymakers—the ministers, parliamentarians,
and other senior government officials who need         Upstream interventions are grouped into two           With FIAS support, IFC AS will play a critical role
to craft effective strategies to preserve and          broad categories:                                     in this process. Government actions designed
improve their countries’ investment climates and                                                             to control or limit the spread of the novel
expand the private sector’s role in driving jobs         • Creating Markets with Sector Interventions        coronavirus were a prime factor driving the
and economic transformation. This is the core              seek to create markets via sectoral or            COVID-related economic downturn. It follows,
area of FIAS work.                                         market-wide intervention that will facilitate     then, that government action will be integrally
                                                           private sector investment and for which IFC       involved in unlocking the private sector to set
IFC Upstream Well Timed                                    could be a potential financing partner. FIAS      country economies on a course to recovery.
to Respond                                                 will be supporting these sector Upstream          Accelerating private investment will require
                                                           interventions.                                    policy and regulatory reforms to create the
A timely coincidence has brought the IFC 3.0                                                                 right conditions for business, and to generate
Creating Markets Upstream approach to the fore           • Creating Markets with Project Interventions       bankable projects. This was true before the
just as the relief, recovery, and restructuring work       seek to create markets by supporting the          pandemic, and the urgency of reform is even
in response to the COVID-19 economic crisis gets           creation and realization of specific projects     greater now.
underway. Though the Upstream strategy was                 that will provide wider demonstration or
developed before the pandemic hit, the timing              set broader market precedent, for which           Across emerging and developing economies,
of its rollout into operations could not have              IFC is a likely financing partner (e.g. early-    economic recovery over the next two to five years
been more fortuitous. The concept underlying               stage project development or transaction          will need to focus on how to reenergize firms
the Upstream approach is that IFC will engage              advisory).                                        and recreate and strengthen markets damaged
in activities that help to stimulate and create
                                                                                                             by the pandemic’s effects. As they were prior
conditions that result in the flow of private          IFC AS, which form the heart of FIAS-supported        to the COVID-19 pandemic, FIAS-supported IFC
capital—domestic and foreign—into productive           client-facing operations, are part of an integrated   AS teams are being urged to look for reform
investment in IFC’s countries of operation.            approach tied to World Bank Operations, IFC           recommendations on how best to leverage
If countries with economies hobbled by the             Upstream, IFC Investment, and an expanding            and incentivize the private sector. The new
pandemic are to attract investors, they need to        IFC portfolio. The goal is to help the World Bank     context places greater emphasis on assessing

                                                                                                                                The FIAS FY22–26 Strategy Cycle    13
constraints and reform roadmaps to support           from EFI management to IFC. The trust fund now            country-level engagements and globally
     the restructuring and recovery of key sectors        resides in IFC Corporate Operations Management,           applicable platforms. Upstream work can be
     and firms—which will be a key task of the teams      placing FIAS institutionally at the center of IFC’s       accomplished as quickly as in a few months;
     undertaking Country Private Sector Diagnostics       operations. Shifting FIAS to IFC management               the strategy envisions an investment line of
     (CPSDs) that identify both constraints and           means that the trust fund will now be able                sight of no more than five years. As noted
     opportunities for creating dynamic, sustainable      to support a broader range of advisory and                above, FIAS will be supporting Creating
     economies.                                           Upstream activities originated and implemented            Markets with Sector Interventions through
                                                          by IFC regional and industry teams. One result of         sectoral or market-wide interventions that
     Upstream is core to realizing the mandate of IFC     this should be a closer connection between FIAS-          will facilitate private sector investment and
     3.0. The Upstream agenda focuses on generating       supported activity and tangible economic results,         for which IFC could be a potential partner.
     investment opportunities to grow IFC’s potential     including investment and job creation.                    FIAS will not be involved in Creating Markets
     pipeline and meet the development finance                                                                      with Project Interventions linked to specific
     commitments made by IFC in gaining support           With this background, IFC AS and Upstream                 projects in which IFC is a likely financing
     for the capital increase. The Upstream approach      Services supported by FIAS can be                         partner.
     builds on relevant experience from investment        conceptualized in four ways: first, the type
     and advisory initiatives that successfully created   of advisory service; second, the category of            • Firm-Level Advisory: Supports new and
     new market opportunities and applies innovative      donor support; third, the client country and              portfolio clients by building capacity,
     models around staffing, funding, indicators, and     region involved; and fourth, the IFC industry or          expanding impact, and managing risks for
     operations to enable delivery.                       operational team most closely associated with             long-term success. It can be accomplished
                                                          the services to be delivered.                             quickly over a few months or involve a
     FIAS Supporting the Full Spectrum                                                                              long-term relationship over several years.
     of IFC Advisory Services                             Advisory type: Under the Creating Markets                 The sector work and select firm-level work
                                                          Upstream approach, IFC AS will fall into one of           supported by FIAS can help identify key
     IFC has completed the integration of AS into         three types:                                              insights related to industry challenges and
     industry and services departments, a process that                                                              test potentially scalable solutions, thereby
     began in 2015. IFC’s 2018 Advisory update to the       • Enabling Environment AS: Aims to improve              helping policy makers, firm-level clients,
     Board covered the integration of the standalone          client country business environments to               and IFC.
     Cross-Cutting Advisory Department into IFC               unlock a broad range of new private sector
     operations. The relocation of IFC AS teams from          investment opportunities—a longstanding           Category of donor support: Donor contributions
     EFI to IFC Operations (industry and regional             area of service delivery supported by FIAS.       to FIAS break out into three categories: core
     departments) on July 1, 2020, completed this                                                               contributions, programmatic contributions, and
     process. FIAS moved as part of this restructuring      • Upstream AS: Supports the development             project specific support. IFC encourages donors
                                                              of investable projects and markets with           to earmark roughly half of their contribution

14   Upstream Advisory for Creating Investment Opportunities, Sustainable Growth, and Jobs
to FIAS Core in support of the overall trust
fund strategy. From FY17 through FY20, donor          FIAS Donor Contributions by Category
contributions to FIAS Core made up 23 percent of
all donor contributions. Programmatic projects
made up 45 percent of all donor contributions.        In the FY12–16 strategy       From FY17 through FY20,
Project-specific contributions represented 32         cycle, donor contributions    donor contributions to
percent of all donor contributions. In the FY12–16    to FIAS Core made up          FIAS Core made up

                                                      35%                           23%
strategy cycle, donor contributions to FIAS Core
made up 35 percent of all donor contributions.
FIAS Core donor support provides the flexibility
to allocate FIAS funds in support of FIAS strategic   of all donor contributions.   of all donor contributions.
priorities—including IDA, Sub-Saharan Africa,
and FCS projects. It also enhances the ability
                                                      Programmatic projects         Programmatic projects
of IFC teams to respond rapidly to emerging           made up                       made up

                                                      42%                           45%
challenges such as the economic fallout of the
COVID-19 pandemic. In addition, Core funding
supports the design and development of global
knowledge products which inform and facilitate        of all donor contributions.   of all donor contributions.
innovative client-facing solutions. Programmatic
and project-specific contributions are best when
                                                      Project-specific              Project-specific
they can be applied as broadly as possible. For
                                                      contributions represented     contributions represented
example, support to investment climate advisory
in the countries of the Organization for the
Harmonization of Business Law in Africa (OHADA)
would support a single project but one that
                                                      23%
                                                      of all donor contributions.
                                                                                    32%
                                                                                    of all donor contributions.
would be applicable to the 17 member countries
of OHADA.
                                                      Total Donor Contributions
Client country regions: Implementation of IFC

                                                      $134.5 m                      $91.5 m
AS happens at the country level. IFC regional
management is closely involved in decision
making on which of the projects in their regions
get FIAS support, while the FIAS Program              through 5-year cycle.         through 4 years of 5-year cycle.

                                                                                                      The FIAS FY22–26 Strategy Cycle   15
Management team ensures projects fit the             are being identified by joint World Bank–IFC         Sub-Saharan Africa: Regional challenges include
     agreed FIAS Strategy. This approach reflects         CPSDs and integrated into IFC country strategies     weak institutions and poor policy and legal
     the World Bank Group’s increasing emphasis           (for more on CPSDs, see page 32). It is IFC’s        frameworks, fragility and conflict, and displaced
     on aligning financial and advisory services          ambition to intentionally drive the IFC business     populations. Urbanization is happening at
     with country strategies developed jointly and        based on the recommended interventions               the highest rate in the world. The region’s
     tailored to client country needs. To be sure, some   highlighted in the country strategy instead of       economies suffer from weak industrialization,
     strategies and best practices apply equally well     taking on projects opportunistically. These          with Africa accounting for less than 1 percent
     across regions—for example, helping developing       will be the source of FIAS-supported project         of global manufacturing output. Population
     country exporters meet food safety standards in      implementation plans for the next strategy           growth means that the region’s workforce will
     major markets such as the European Union—and         cycle. FIAS supports projects in all regions, but    continue to increase by 30 million per year.
     the World Bank Group continues to deploy global      it is important to note that Sub-Saharan Africa      Women remain at a disadvantage in many of
     expertise. However, tailored solutions aligned       is a FIAS priority region, and the Multi-Country     the region’s economies, held back by outdated
     with country strategies developed through            Investment Climate Program (MCICP), which is         laws and regulations. A digital divide—with
     deep dives, analytics and diagnostics, and           part of FIAS, prioritizes Europe and Central Asia.   less than a quarter of the region’s population
     close working relationships with clients, are the    Here are some of the key advisory themes and         able to access the internet—hampers economic
     dominant theme. Upstream is also deeply rooted       work areas identified by IFC regional teams as       growth. Of the 25 least connected countries
     in country strategies. IFC took bold moves to        priorities:                                          in the world, 21 are in Africa, but the pace at
     reform its budgeting process in FY21 to hardwire
     the links between country strategies, IFC AS and
     Upstream pipeline, and resource allocation by
     introducing a targeted country-driven budget
                                                                                                               21
                                                                                                               of Africa’s countries lack connectivity
     allocation. Upstream budget is allocated at the
     country level based on Upstream initiatives                                                               Of the 25 least connected countries in the world,
     prioritized through country business plans.                                                               21 are in Africa, but the pace at which the internet
     Country Managers now have the authority to                                                                is growing in Sub-Saharan Africa is also one of the
     release funds to approved Upstream initiatives.                                                           fastest in the world.
                                                             FY20: FIAS
     Accordingly, each IFC regional team has
     developed a suite of country strategies aimed
                                                             projects in 16
                                                             FCS countries
                                                             in Africa.
                                                                                                               2.5%
     at addressing the most urgent development                                                                 GDP per capita increase with mobile broadband
     problems of clients in those regions and
                                                                                                               Research shows that a 10 percent increase in mobile
     countries. Development obstacles and                                                                      broadband penetration in Africa would result in an
     opportunities to be addressed in these strategies                                                         increase of 2.5 percent of GDP per capita.

16   Upstream Advisory for Creating Investment Opportunities, Sustainable Growth, and Jobs
which the internet is growing in Sub-Saharan          Europe and Central Asia (ECA): The main                foundations for inclusive growth by expanding
Africa is also one of the fastest in the world. The   challenges are declining competitiveness,              opportunities for women. The cities agenda and
potential benefits are enormous: research shows       underdeveloped financial markets, challenging          Public-Private Partnerships (PPPs) will be key
that a 10 percent increase in mobile broadband        climate change effects, insufficient digitalization,   parts of the connectivity agenda. Enhancing
penetration in Africa would result in an increase     inefficient public sector governance, inefficient      competitiveness through reforms in key sectors,
of 2.5 percent of GDP per capita. Priority advisory   state-owned enterprises, and geopolitical risks.       entrepreneurship, and disruptive technologies
activities for the region: improving access to        As one of the more industrialized developing           will be among other areas of activity.
power, reforming laws and regulations relating to     regions, ECA stands to benefit from IFC Advisory
getting electricity, supporting better functioning    geared toward green growth and climate change          Middle East and North Africa (MENA):
power grids; advisory in support of agribusiness      mitigation. The ECA program seeks to develop           Development obstacles include persistent
growth and agro-processing; skills development;       competitive markets, address climate change and        low growth, limited opportunities for women,
sector work in tourism and manufacturing;             inclusiveness, foster connectivity and integration,    and high poverty and unemployment. MENA
commercial property reform; digital financial         and work in sectors including agri-finance and         has five FCS countries (Iraq, Lebanon, Libya,
services, particularly in the mobile sector;          supply chains, financial infrastructure, climate       Syria, and Yemen) and one territory (West
financial products geared toward micro, small,        finance, digital financial services, cities issues,    Bank and Gaza) with significant internally
and medium enterprises (MSMEs); investor              and energy. The program is trending away from          displaced and underserved populations. State-
protections; modernized ICT and broadband             economy-wide engagements in favor of sector            owned enterprises dominate in many of the
systems; better data access.                          development in support of industry priorities.         region’s economies resulting in weak private
                                                      Priority countries Ukraine and Uzbekistan, and         sector engagement, low levels of competitive
East Asia and Pacific (EAP): The regional team        the Central Asia region, will receive focused          neutrality, entrepreneurship constraints, and an
is prioritizing the recalibration of the advisory     attention.                                             underdeveloped digital economy. Infrastructure
portfolio to create space for new programs to                                                                gaps include poor access to electricity,
ensure strategic alignment, with a bigger focus on    Latin America and Caribbean (LAC): The                 broadband, and multi-modal transport facilities.
Upstream-related advisory. Key advisory themes:       advisory agenda is limited in LAC because              Global warming threatens agricultural production
inclusion; support to supply chains; access to        much of the region consists of middle-income           in an already arid region. The advisory program
financial services; sector work in agribusiness       countries. But teams will focus on Haiti, an IDA       envisions focusing on COVID-19 responses to
and tourism; support to the sustainable cities        and FCS country, and struggling Caribbean              minimize the destruction of markets and bring
agenda, including transportation, green               economies. FIAS and MCICP also support a robust        about economic recovery and job creation.
buildings, resource efficiency, and climate           advisory agenda in LAC, including in middle-           Markets will need to be restructured to support
smart agriculture; innovation and disruptive          income countries such as Peru and Colombia.            private sector activities, setting the stage for
technologies; broadband infrastructure; COVID         Furthering regional integration will be a key          sustainable recovery by ‘building back better.’
recovery.                                             goal in addition to building climate resilience by     Features of the advisory program include
                                                      promoting green buildings and strengthening the        support for entrepreneurship, the creation and

                                                                                                                               The FIAS FY22–26 Strategy Cycle   17
expansion of SMEs, expansion of the digital           improving the business environment—a core FIAS        Here are some examples of the strategic
     economy, and increased access to finance for          area of work—developing clean energy, energy          approaches under implementation:
     small firms, including firms owned and led by         efficiency, green building, resource efficiency,
     women. Economy-wide reforms to improve the            climate smart agriculture, and green finance.                     FIG: Seeks to support women
     investment climate are still needed in many           Inclusion encompasses support for financial and                   customers and SMEs through financial
     client countries across the region. Country teams     social inclusive growth by fostering SME value                    intermediaries to help clients
     will support steps to close infrastructure gaps.      chains, digitalization, affordable housing, support   close gender gaps in the private sector. The
     Climate and gender will be the key cross-cutting      to supply chains, and access to basic financial       strategic objective involves funding new IFC
     themes.                                               and health facilities. In addition to the gender      AS in the Banking on Women program, as well
                                                           and climate cross-cutting themes, the program         as delivering global research and knowledge
     South Asia Region (SAR): Afghanistan,                 will also seek to enhance competitiveness             products. In the Upstream space, FIG is engaging
     Bangladesh, Bhutan, Nepal, and Pakistan are all       through disruptive and innovative technologies.       with stakeholders to conduct policy dialogues to
     IDA borrowing countries. India has one-fourth                                                               validate the viability of proposed programmatic
     of the world’s poor. The pillars of the advisory      Industry and operational teams: The areas             changes. FIG advisory helps clients increase the
     strategy in SAR are infrastructure, sustainability,   of work that make up these regional advisory          reach and breadth of financial services to people
     and inclusion. The program seeks to address           strategies span IFC industry and operational          who currently have limited or no access through
     development gaps in infrastructure by supporting      structures and teams are: the Financial               the expansion of digital financial services. IFC
     the energy, transport, and logistics sectors in       Institution Group (FIG); Manufacturing,               actively champions and supports responsible,
     addition to the cities agenda. The sustainable        Agribusiness & Services (MAS); Creating Markets       innovative solutions to reach unserved and
     infrastructure program will focus on renewable        Advisory (CMA); Infrastructure (INFRA); Disruptive    underserved populations at scale.
     energy. The sustainability agenda focuses on          Technology and Funds; Energy and Mining;
                                                           Telecom, Media & Technology; Climate Business;                     MAS: Seeks to improve productivity
       The sustainability agenda focuses                   Gender; PPPs; Environmental Social Governance                      at the factory level to increase
                                                           (ESG); and Upstream. Advisory and Upstream                         competitiveness and add a gender
              on improving the business
                                                           groups within these units have updated their          lens for inclusive job creation. Advisory efforts
       environment—a core FIAS area of                     delivery strategies designed to align with the        involve increasing professionalism in supply and
         work—developing clean energy,                     overall IFC 3.0 Creating Markets Upstream             distribution chains. In agribusiness, advisory
       energy efficiency, green building,                  strategy and with the tailored regional and           provides a blend of technical and commercial
                                                           country strategies. Working in coordination with      approaches to increase efficiency of value
       resource efficiency, climate smart
                                                           the regions, these teams will be able to put forth    chains, build competitiveness to enable client
          agriculture, and green finance.                  ideas for advisory projects that may be eligible      integration into regional and global value
                                                           for FIAS support.                                     chains, address core environmental and social

18   Upstream Advisory for Creating Investment Opportunities, Sustainable Growth, and Jobs
sustainability issues at the sector level (including              Climate Business: The development          access to health, finance, insurance, housing,
gender), and pilot and scale ag-tech solutions.                   gaps to be addressed by Climate            and technology. Increasing employer-supported
MAS will also work on supporting hotel reopening                  Business advisory include a lack of        childcare can help in redistributing the unpaid
with proper protocols that address cleanliness,        commercially viable business models, regulatory       care workload. FIAS has a strong record of
health, and safety.                                    and financial incentives, and private sector          support for removing legal barriers to women
                                                       finance. Projects in this area will seek to develop   identified by the Women, Business & the Law
             CMA: Prioritizes areas including          and scale up investment in biodiversity and           program (WBL) and will be pushing to exceed
             enabling environment, enabling            nature finance, clean energy, green buildings,        institutional targets for including gender
             sectors, and enabling finance and         climate-smart cities programs, climate-sensitive      components in IFC AS projects.
investment. Developing country regulatory              agriculture, and green finance.
regimes often discourage risk-taking, suppress                                                                    		Digitalization: Digital technologies
competition and innovation, and impose undue                    Gender: Women are severely                   		 provide a unique opportunity for
costs and constraints—obstacles amplified by                    underrepresented in private sector           		 countries to accelerate economic
COVID-19. The economic effects of COVID-19                      leadership and do not participate            growth and connect citizens to services and
exposed sector-level weaknesses, particularly          equally in the formal workforce. Women shoulder       jobs. FIAS will be supporting advisory services
in industries such as travel and tourism. The          a disproportionate share of unpaid care work.         that help clients unlock innovative solutions
pandemic also collapsed FDI, undermining client        Access to technology, finance, insurance, basic       to complex development challenges and help
country growth strategies and threatening the          services, and infrastructure are constrained for      countries accelerate their pace of development
withdrawal of investments that client countries        women entrepreneurs. Women experience more            in areas from digital banking to blockchain and
have already secured. CMA is built around the          legal discrimination than men, stifling their full    telemedicine. Fostering digital inclusion is of
notion that job creation does not happen at            economic participation. Women experience high         paramount importance. With potential tie-ins
the economy-wide level but at the sector and           levels of sexual harassment and violence. These       to project activities in gender, climate change,
firm level. CMA leverages analytics and applies        and other gender gaps lead to macroeconomic           Africa, and COVID-19 recovery, to name just a
experience and expertise on reforms and                and firm losses. The private sector can help          few, FIAS will be providing extensive support to
strategies to address private sector constraints,      close these gender gaps by enabling men and           digitalization advisory in the coming strategy
either economy-wide or sector-specific. CMA            women to participate more equally in corporate        cycle.
helps deliver solutions in the investment              leadership, in the workforce, as consumers,
policy and promotion and business regulation           and as suppliers. Strategic priorities of the IFC     In summary, IFC’s current overall approach
space that promote sector- and firm-level              gender strategy include enhancing women’s             to development is called Creating Markets
diversification in the most promising areas for        access to assets and services through increased       Upstream. Under this initiative, IFC and other
recovery and growth.                                   participation by women in business leadership         members of the World Bank Group work closely
                                                       and the labor force, and by increasing women’s        together on comprehensive approaches to

                                                                                                                               The FIAS FY22–26 Strategy Cycle   19
development that link policy reform, advice,                                                           Can IFC Engage in this Country?
                                                                                                              • Macroeconomic analysis                           NOT
     investment, and the mobilizing of additional                                                             • Security situation
                                                                                                                                                                 OK:
                                                                                                                                                                 EXIT
     finance. The approach is closely associated with                                                         • Governance

     the World Bank Group’s Maximizing Finance for
     Development (MFD) program, which prioritizes                                                                           OK
     private sector solutions, where possible, to
                                                                                          Are there Viable Market Opportunities for Private Enterprise?
     conserve scarce public resources. It also fosters                                      • Input from IFC networks, local offices, and client relationships            NOT
                                                                                                                                                                          OK
     the private sector’s contributions to achieving                                        • CPSDs
     the Sustainable Development Goals (SDGs) and
     the 2040 Agenda. The Creating Markets Upstream                                                                                           Creating Markets Approach: Upstream
                                                                                                                             OK               project development, policy reform and
     approach is especially important in FCS, where                                                                                           capacity building to create viable markets.
     extensive efforts are required to improve policy,
     build capacity, address environmental issues,                                               ESC Performance               Integrity Due Diligence
                                                                                      NOT         • Are ESC and conflict         • Are there investors/firms            NOT
     and mitigate risks to enable the private sector                                  OK
                                                                                                 		issues manageable?          		 we can work with?
                                                                                                                                                                        OK

     to thrive. The strategy development process
     can identify the most appropriate focus areas                  Work with investor/firm to                                                      Encourage FDI, venture capital for
                                                                    identify ways to manage or                               OK                     start-ups, and capacity building for
     for engaging the private sector, as well as the                mitigate the risks.                                                             clean, but weak sponsors.
     instruments needed to foster private sector
     growth and economic development.                                                 Commercial Viability                      Impact (for Development Finance
                                                                          NOT          • Viable investment plan                 Institutions/Impact Investors)
                                                                          OK                                                                                                      NOT
                                                                                       • Qualified investor/firm                  • Anticipated Impact Measurement and 		OK
     Engaging in IDA and FCS: The adjacent figure                                      • Financial operational risks            		 Monitoring (AIMM) framework results -
     illustrates the overall process that IFC follows                                                                           		 is the impact assessment satisfactory?

     in its approach to investing in FCS and IDA. In
     practice the steps are far from linear, with several           Market Creation: Advice for                                                     Improve Impact: linkages, gender
                                                                    upstream project development,                           OK                      interventions, corporate social
     iterations involved at different investment stages.            capacity building.                                                              responsibility (CSR) for non DFIs.
     These include preliminary engagement with
                                                                                                    Can the Project be Financial on
     investors and firms, an early look at projects,                                                                                                       NOT
                                                                                                    Commercial Terms, with IFC Participation?              OK
     detailed field appraisal, and a formal review                                                      • Given the risk/return profile
     before decisions are made. Nevertheless, the
     illustration captures four important aspects of                Invest and implement with project                                        Structuring, guarantees, blended finance to
     IFC’s investment process: (1) early engagement                 development and risk mitigation                         OK               improve the risk/reward balance if there are
                                                                    instruments, as needed.                                                  important external benefits (e.g., climate
     on critical fragility issues such as integrity                                                                                          resilience, poverty reducing).

20   Upstream Advisory for Creating Investment Opportunities, Sustainable Growth, and Jobs
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