The International Finance Corporation (IFC) is the private sector lending arm of the World Bank. The IFC arguably has some of the greatest impacts on indigenous lands, as it directly funds numerous multi-national companies and private actors throughout the world. As of February 21st 2006, the IFC approved a new set of Safeguard Policies and Performance Standards. These performance standards cover a range of issues, including impacts on indigenous peoples and involuntary resettlement
The IFC's safeguard policies do not just affect the obligations of the IFC and its private sector borrowers. More than twenty commercial banks have agreed to follow a set of environmental and social standards—known as the "Equator Principles"—that are based on the IFC's safeguard policies and performance standards. These banks provide over 75% of all development project financing around the world. In addition, national export credit agencies (ECAs) are increasingly relying on IFC safeguard standards. The IFC’s newly revised and approved performance standards are likely to set environmental and social standards for privately financed development projects.
Key Documents:
IFC Sustainability Policy (2006)
IFC Performance Standard No. 7 on Indigenous Peoples (2006)
Equator Principles