• News
    • Latest news
    • News search
    • Health
    • Finance
    • Food
    • Career news
    • Content series
    • Try Devex Pro
  • Jobs
    • Job search
    • Post a job
    • Employer search
    • CV Writing
    • Upcoming career events
    • Try Career Account
  • Funding
    • Funding search
    • Funding news
  • Talent
    • Candidate search
    • Devex Talent Solutions
  • Events
    • Upcoming and past events
    • Partner on an event
  • Post a job
  • About
      • About us
      • Membership
      • Newsletters
      • Advertising partnerships
      • Devex Talent Solutions
      • Contact us
Join DevexSign in
Join DevexSign in

News

  • Latest news
  • News search
  • Health
  • Finance
  • Food
  • Career news
  • Content series
  • Try Devex Pro

Jobs

  • Job search
  • Post a job
  • Employer search
  • CV Writing
  • Upcoming career events
  • Try Career Account

Funding

  • Funding search
  • Funding news

Talent

  • Candidate search
  • Devex Talent Solutions

Events

  • Upcoming and past events
  • Partner on an event
Post a job

About

  • About us
  • Membership
  • Newsletters
  • Advertising partnerships
  • Devex Talent Solutions
  • Contact us
  • My Devex
  • Update my profile % complete
  • Account & privacy settings
  • My saved jobs
  • Manage newsletters
  • Support
  • Sign out
Latest newsNews searchHealthFinanceFoodCareer newsContent seriesTry Devex Pro
    • News

    Wanted: Transparency in 'intermediary lending'

    By Jenny Lei Ravelo // 19 April 2012

    There is danger in development finance institutions lending to financial intermediaries that do not follow their poverty alleviation mandate.

    A new report from Oxfam, titled “Risky Business: Intermediary Lending and Development Finance,” puts the spotlight on the lack of transparency and accountability by most FIs receiving funding from DFIs such as the International Finance Corp., the World Bank’s private lending arm.

    Often, the report says, FI-funded activities do more harm than good to local communities. One example is the coal-fired power plant project in Odisha, India, which received a $100 million investment from IFC. The project, according to Oxfam, displaced hundreds of families and took away people’s sources of food and livelihood. Worse, they were not properly compensated for the land lost.

    Oxfam recommends DFIs use their influence to ensure projects by FIs produce “positive change.” They should boost transparency and accountability by establishing a public registry of all FIs, and measure impact not based solely on an FI’s enhanced capacity or the number of SMEs funded.

    The organization also suggests including conditions in contracts permitting DFIs to withhold or withdraw funding from FIs if and when violations are found. Investments that involve wholesale transfer of land should be excluded as well, unless proper consultation, compensation and full transparency were demonstrated.

    Read more development aid news online, and subscribe to The Development Newswire to receive top international development headlines from the world’s leading donors, news sources and opinion leaders — emailed to you FREE every business day.

    • Banking & Finance
    • Funding
    Printing articles to share with others is a breach of our terms and conditions and copyright policy. Please use the sharing options on the left side of the article. Devex Pro members may share up to 10 articles per month using the Pro share tool ( ).

    About the author

    • Jenny Lei Ravelo

      Jenny Lei Ravelo@JennyLeiRavelo

      Jenny Lei Ravelo is a Devex Senior Reporter based in Manila. She covers global health, with a particular focus on the World Health Organization, and other development and humanitarian aid trends in Asia Pacific. Prior to Devex, she wrote for ABS-CBN, one of the largest broadcasting networks in the Philippines, and was a copy editor for various international scientific journals. She received her journalism degree from the University of Santo Tomas.

    Search for articles

    Related Stories

    Transparency and accountabilityOpinion: IFC standards review is chance for more responsible global finance

    Opinion: IFC standards review is chance for more responsible global finance

    Development FinanceCan DFIs be more transparent about their data?

    Can DFIs be more transparent about their data?

    Devex InvestedDevex Invested: What US foreign aid chaos means for DFC

    Devex Invested: What US foreign aid chaos means for DFC

    Devex NewswireDevex Newswire: Sevilla summit tests patience — and global ambition

    Devex Newswire: Sevilla summit tests patience — and global ambition

    Most Read

    • 1
      How low-emissions livestock are transforming dairy farming in Africa
    • 2
      Opinion: Mobile credit, savings, and insurance can drive financial health
    • 3
      The UN's changing of the guard
    • 4
      Opinion: India’s bold leadership in turning the tide for TB
    • 5
      State Department employees in anxious limbo over massive staff cuts
    • News
    • Jobs
    • Funding
    • Talent
    • Events

    Devex is the media platform for the global development community.

    A social enterprise, we connect and inform over 1.3 million development, health, humanitarian, and sustainability professionals through news, business intelligence, and funding & career opportunities so you can do more good for more people. We invite you to join us.

    • About us
    • Membership
    • Newsletters
    • Advertising partnerships
    • Devex Talent Solutions
    • Post a job
    • Careers at Devex
    • Contact us
    © Copyright 2000 - 2025 Devex|User Agreement|Privacy Statement