‘Greening ’ the International Finance Corporation: Transnational Environmental Advocacy Networks and Sustainable Development

For decades environmental groups have tried to ‘green ’ the World Bank. Yet another part of the World Bank Group, the International Finance Corporation (IFC) has also been criticised for its involvement in environmentally destructive development. IFC finances private enterprise in developing countries by providing venture capital for private projects. IFC activities have increased, reflecting broader trends of direct foreign investment (FDI). This paper details how IFC, as a ‘development investor and lender,’ has been targeted by World Bank Group critics, characterised here as transnational environmental advocacy networks, to reconstitute its identity to incorporate sustainable development norms. This is based upon socialising IFC’s projects, policies and institutions. Socialisation is a three step process where advocacy networks attempt to first limit, then constrain and ultimately socialise IFC to internalise sustainable development norms. This paper argues advocacy networks have diffused sustainable development norms within IFC, but questions the impact on international development