This study is based on: (i) a review of all the forest-based investments approved by IFC during FY85-98 to identify the changes induced in IFC operations on a ‘before/after strategy’ basis; (ii) a review of selected non-forest infrastructure projects supported by IFC in FY92-98 which potentially have impacts on forests; (iii) a review of selected financial intermediary investments approved in FY92-98 to assess evidence of adherence by the intermediaries and their IFC-funded sub-projects to the requirements of the forest strategy; and (iv) case studies on a sample of 14 forest-based companies visited to assess their on-the-ground results from the perspective of the 1991 forest strategy’s objectives. The sampled projects in the case studies were broadly representative of the regional distribution of IFC's portfolio at the end of FY98 of forest-based projects that relied on local resources. The next chapter presents a discussion of the documents containing the IFC forest strategy and their internal administration. This is followed by an analysis of IFC’s forest-based projects that have direct impacts on forests. This is continued in chapter five for IFC’s non-forest projects that have impacts on forests (i.e. projects with indirect impacts). Chapter six considers IFC’s investments in financial intermediaries and attempts to analyze the impact of their sub-projects on forests. The findings of the case studies are presented in chapter seven, and they include performance ratings for achievement of the forest strategy objectives. Chapter eight discusses the IFC OP 4.36, approved in July 1998, and chapter nine presents the conclusions and recommendations of the study.