The International Finance Corporation (IFC) was established in 1956 and is owned by 186 member countries, collectively influencing its policies. This unique structure includes a Board of Governors and a Board of Directors, through which member countries provide guidance on IFC’s programs and activities. Each member country designates one governor and one alternate to represent their interests within the corporation.
The Board of Governors consists of one governor from each member country, usually a finance minister or equivalent. They meet annually and are responsible for major decisions such as admitting new members, amending the Articles of Agreement, and electing the Board of Directors. This board serves as the highest authority within the IFC, ensuring that the corporation’s operations align with the goals and interests of its diverse membership.
In addition to the Board of Governors, the IFC has a Board of Directors responsible for the overall conduct of its general operations. Composed of 25 executive directors, the Board meets regularly to oversee the IFC’s financial and operational policies. These directors are elected or appointed by member countries or groups of countries, ensuring a diverse representation of perspectives. Their responsibilities include approving investments and providing strategic direction to support the IFC’s mission of promoting sustainable private sector investment in developing countries.
(Response: The International Finance Corporation (IFC) has a structure that includes a Board of Governors and a Board of Directors. The Board of Governors, comprised of one representative from each of the 186 member countries, convenes annually to make significant decisions regarding the IFC’s operations. On the other hand, the Board of Directors, consisting of 25 executive directors, oversees the corporation’s day-to-day activities and policies. Together, these bodies ensure that the IFC’s initiatives align with the interests of its diverse membership, promoting sustainable private sector investment in developing nations.)