Many countries face severe political instability or struggle to emerge from years of conflict. These conflicts can destroy once vibrant businesses, sending more people into poverty. These challenges are often exacerbated by the effects of climate change, environmental degradation, and health crises such as the COVID-19 pandemic.
Good corporate governance can help companies operating in fragile and conflict-affected situations (FCS) weather difficulties, increasing their potential to attract investment and address sustainability challenges. At the policy-making and regulatory level, IFC works in partnership with the World Bank to improve the business environment, strengthen governmental and regulatory institutions, introduce market-level standards, increase access to finance and mobilize domestic and international investment. IFC also provides companies with the tools and advice they need to manage through crisis, make informed decisions, take proactive steps in a situation of fragility, conflict and violence, and design business strategies to meet economic sustainability challenges.
Given the complex challenges faced by companies operating in fragile markets and the unique circumstances of each of these situations, IFC has developed a corporate governance framework to guide activities in these markets. It is based on IFC’s Corporate Governance Methodology for evaluating companies’ corporate governance practices.
