Frequently Asked Questions
The Harmonized Indicators for Private Sector Operations are the result of an effort to standardize the criteria that Development Finance Institutions use to assess the impact of their work with private sector clients. These criteria are measured via a system of indicators, and collected via reports that most DFIs require of their clients.
Many private sector entities receive financing from multiple DFIs. As a result, they are often required to report on their activities multiple times, but with different criteria that depends on the reporting requirements of each DFI involved. Subsequently, these clients – shared by multiple DFIs – carry an added administrative burden. This burden can be reduced by harmonizing the definitions of at least some indicators.
They allow DFIs to compare results across their portfolios.