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Unit 10: International Financial Institutions-II

and other services to the IFC. The IFC’s main responsibilities are (i) To provide risk capital in notes
the form of equity and long-term loans for productive private enterprises in association with
private investors and management (ii) To encourage the development of local capital markets
by carrying out standby and underwriting arrangements and (iii) To stimulate the international
flow of capital by providing financial and technical assistance to privately controlled finance
companies. Loans are made to private firms in the developing member countries and are usually
for a period of seven to twelve years.
The key feature of the IFC is that its loans are all made to private enterprises and its investments
are made in conjunction with private business. In addition to funds contributed by IFC, funds are
also contributed to the same projects by local and foreign investors.
!

Caution Apart from the provision of some administrative and other services, IBRD and IFC
hold separate legal and financial entity.

IFC investments are for the establishment of new enterprises as well as for the expansion
and modernization of existing ones. They cover a wide range of projects such as steel, textile
production, mining, manufacturing, machinery production, food processing, tourism and local
development finance companies. Some projects are locally owned, whereas others are joint
ventures between investors in developing and developed countries. In a few cases, joint ventures
are formed between investors of two or more developing countries. The IFC has also been
instrumental in helping to develop emerging capital markets.

In India, our engagement is a gauge of leadership from IFC and its clients. Our vision is to show
that private enterprises can be partners with the government and NGOs to curb the epidemic.
Along with other players such as UNAIDS, India’s National AIDS Control Organization
(NACO), the International Labor Organization (ILO), the Confederation of Indian Industry (CII),
Federation of Indian Chambers of Commerce and Industry (FICCI), and the World Bank, IFC is
raising awareness about the crucial role that the private sector can play in India to address HIV/
AIDS, a role which is very limited at this time (the number of corporate engaged on HIV/AIDS
in India is estimated to be about 70 companies according to the ILO).
IFC against AIDS is expanding its work in India by providing strategic technical assistance. After
evaluating what could be done to bring value to IFC clients and contribute to the national efforts
to face the epidemic, IFC Against AIDS launched a program in January 2005 aimed at raising the
ability of clients to proactively address HIV/AIDS in three possible areas:

l z Workplaces: By raising awareness about HIV/AIDS and promoting prevention across
company operations, and by extending education programmes throughout their groups
and to supply chain partners.

l z Company Clinical Facilities: By training medical and clinical staff on HIV/AIDS and
sexually transmitted infections (STIs), i.e. modes of transmission, prevention (with a
special focus on universal precautions related to HIV infection in clinical settings), basic
counselling skills, syndrome management of STIs, opportunistic infections related to HIV
and anti-retroviral treatment therapies.
l z Their Communities: By supporting and scaling-up the awareness and prevention efforts
around their operations, particularly among migrant workers and trucking communities
with whom companies interact.
l z IFC against AIDS and IFC’s Corporate Citizenship Facility (CCF) are providing financial
support to clients of up to 50% of eligible costs for projects, up to a year and a half of
engagement.
We consider our current programme as a catalyst for participation by larger corporate which
are within IFC’s area of influence. Our goal with this program is to have a vast geographic area

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