The organisation of IFC consists of a Board of Governors, Executive Directors.The Board of Governors of the World Bank also constitutes the Board of Governors of the IFC.The need was, therefore, felt to institute a specialised financial agency to provide capital to the private sector enterprises in the developing member countries.
It can even hire the consultants from outside for dealing with technical problems like market research etc.
In contrast, the World Bank has been engaged in the economic and social development of the member countries by rendering them aid even at interest rates lower than the market rates.
The President of the World Bank is also the Chairman of IFC.
The Executive Directors of the World Bank represent the member countries also at the IFC.
It is on the recommendations of the Chairman that the Board of Directors of the IFC makes the appointment of its President who is responsible for the conduct of its business.
Although IFC remains under the general control of the World Bank in respect of its functions or activities, yet the charter of IFC mentions that it is an autonomous legal entity having its own separate funds and accounts.
It therefore assists in the vital task of reducing the capital and foreign exchange shortages and speeds up the pace of development.
By the year ending June 1971, IFC had invested 577.8 million U. dollars in 172 projects in 47 developing countries. Major part of the IFC assistance had gone for promoting development of industries such as iron and steel cement, paper, textiles, chemicals and allied industries.
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