IFIs Harmonization Initiative
22 October 2013
Harmonized Development Results Indicators for Private Sector Investment Operations.
In October 2013, twelve members of the European Development Finance Institutions (EDFI) together with other thirteen International Financial Institutions (IFIs) signed a memorandum to foster collaboration and enhance private sector development impact.
The memorandum signature of the “IFIs Harmonized Development Results Indicators for Private Sector Investment Operations” represents a landmark achievement for developing finance and an important step towards developing a global standard to measure and report on development results in the private sector.
The harmonization will enable a more efficient, consistent and timely analysis of projects’ impact results, a better coordination and partnership between the public and private sector, and will enhance the sharing of best practices and lessons learned among the IFIs.
The initiative harmonizes indicators definitions, units of measurement and reporting standards for 28 core indicators from 12 different sectors. This will allow IFIs to use common datasets to assess the development results of their operations.
The harmonized indicators will make IFIs impact assessment more consistent across institutions. It will be easier to aggregate and compare sector and regional impact results and to better assess the overall development effect of different institutions in particular areas. As a result, private and public institutions will be able to better coordinate their development efforts.
At the same time, clients will also benefit from the harmonization of the reporting standards, especially private sector clients receiving investment from different development institutions, as it will ease the reporting burden and save time.
Finally, the implementation of the harmonized indicators will simplify the projects’ benchmarking and facilitate the sharing of best practices and lessons learned among IFIs.
The signature of the memorandum took place in Washington DC during the World Bank Group Annual Meeting. It is the successful conclusion of a wide consensus reached through an iterative consultation process were many experts and stakeholders from different IFIs and international institutions were involved.
The EDFI members look forward to continuing their collaboration with other IFIs to refining and complementing the initial list of indicators included in the memorandum and improve its application in the future.
For more information: Memorandum - IFIs Harmonized Development Results Indicators