Changing the Face of Sustainable Development in Developing Countries: The Role of the International Finance Corporation

Different regulatory instruments have sought to promote sustainable development, most especially, the integration of social and economic concerns in development activities. Multilateral Development Banks (MDBs) have taken it upon themselves to promote sustainable development practices by designing guidelines for their project financing activities and promoting sustainable financing practice through their clients. This approach ensures that the people affected by a project are better off as a result of its construction and operation. This article investigates the extent to which the International Finance Corporation (IFC) guidelines are ensuring the diffusion of sustainable development practices in developing countries. The article discusses the updated provisions contained in the IFC’s 2012 Performance Standards in relation to the promotion of sustainable development and considers the critique and the impact of commercial bank project financing activities and its
effect on promoting sustainable development. The article concludes that the guidelines of the IFC provide an important framework for promoting sustainable development practices in developing countries.