WASHINGTON — The U.S. International Development Finance Corporation’s Impact Quotient framework may be complex and promising, but it will not succeed without the right resources in place, experts say.
The IQ system has three key pillars: economic growth, inclusion, and innovation. Within each of those is a number of potential development objectives, including job creation, inclusive supply chains, and financing structures that attract new capital.
A specific project can have multiple development objectives within the same pillar or across the pillars and can get additional points if a company is more inclusive of women or if a financial structure helps build a country’s enabling environment, among other factors. It can also lose points for environmental or governance issues or if it fails to mitigate risks.