Wednesday, February 18, 2026

Why Does the World Bank Think It is Failing?

 


The Economic Institutions formed after the Bretton Woods Conference in 1944 are the International Monetary Fund (IMF), the World Trade Organization (WTO) and the World Bank (WDB).*** These three global organizations were the economic basis of the Rules-Based World Order (RBO). Commentators are now saying (here) the the RBO is finished.

To understand the future of the RBO (or it's replacement, if anything) it would be useful to look at the goals of the underlying institutions and how well they achieved their objectives. The post starts with the World Bank (or World Development Bank, WDB, as it should be named).

Since the 2024 Poverty, Prosperity and Planet Report: Pathways Out of the PolyCrisis, the WDB has been involved in some soul-searching, particularly with regard to Extreme Poverty.

Using Figure 1 above, the WDB argues that extreme poverty has stagnated.

Using my own data and models
















Notes

*** The  World Bank does not have an agreed-upon acronym possibly because it is not a "bank" in the usual use of the term. It does not accept deposits, invest member funds and return interest. It is actually a World Development Bank (WDB) that is tasked with helping Developing Countries increase economic growth. The actual goals, according to Google AI are:


 

Input Indicators Codes



Input Measurement Model


Input Time Plot





Output Measurement Model



Output Time Plot



WL20 Hardship Indicators













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