Anticipated Impact Measurement and Monitoring (AIMM) Q&A: Crisis Impact

How Does IFC Analyze Development Impact During Crises?

Overview of IFC's Approach to Development Impact

• Condra Krahidar introduces her role at the International Finance Corporation (IFC), focusing on assessing development impact during crises like COVID-19.

• The assessment approach remains consistent with normal times, comparing scenarios with and without IFC support while capturing specific effects crucial for crisis objectives.

Prioritization During Crises

• In crisis situations, speed is prioritized over efficiency to help firms survive and preserve jobs.

• Emphasis is placed on maintaining market functioning, as a resilient private sector is essential for recovery post-crisis.

Importance of Avoiding Negative Effects

• Preventing negative impacts during financial stress can be as critical as generating positive outcomes in stable conditions.

• Debt restructuring may play a vital role in avoiding service disruptions or job losses during crises.

Contextual Considerations in Assessment

• Country context significantly influences development impact assessments, especially during crises.

• Vulnerability varies by country; for instance, tourism-dependent nations face wider development gaps due to COVID-19 than before the pandemic.

Adjustments in Performance Assessment

• Assessments of IFC's contributions are adjusted based on more modest growth assumptions during crises.