The World Bank and Economic Growth: 50 Years of Failure

Abstract:

President Bill Clinton has recommended that the United States give more money to institutions like the World Bank. The Clinton Administration has obligated the U.S. to contribute $800 million to one of the Bank’s agencies, the International Development Agency. This is about $100 million more than was requested for the last fiscal year. Spending more on the World Bank ignores the overwhelming evidence that its programs have done little to promote economic growth in less developed countries. Moreover, it ignores the economic lessons of what really causes countries to develop.