This study is based on: (i) a review ofall the forest-based investments approved by IFC duringFY85-98 to identify the changes induced in IFC operations ona ‘before/after strategy’ basis; (ii) a review of selectednon-forest infrastructure projects supported by IFC inFY92-98 which potentially have impacts on forests; (iii) areview of selected financial intermediary investmentsapproved in FY92-98 to assess evidence of adherence by theintermediaries and their IFC-funded sub-projects to therequirements of the forest strategy; and (iv) case studieson a sample of 14 forest-based companies visited to assesstheir on-the-ground results from the perspective of the 1991forest strategy’s objectives. The sampled projects in thecase studies were broadly representative of the regionaldistribution of IFC's portfolio at the end of FY98 offorest-based projects that relied on local resources. Thenext chapter presents a discussion of the documentscontaining the IFC forest strategy and their internaladministration. This is followed by an analysis of IFC’sforest-based projects that have direct impacts on forests.This is continued in chapter five for IFC’s non-forestprojects that have impacts on forests (i.e. projects withindirect impacts). Chapter six considers IFC’s investmentsin financial intermediaries and attempts to analyze theimpact of their sub-projects on forests. The findings of thecase studies are presented in chapter seven, and theyinclude performance ratings for achievement of the foreststrategy objectives. Chapter eight discusses the IFC OP4.36, approved in July 1998, and chapter nine presents theconclusions and recommendations of the study.