The bank that keeps poor nations poor

What is the point of the World Bank? You probably think of it, if at all, as a benign institution, a kind of giant, multilateral aid agency, whose job it is to bring liquidity to developing nations and help them grow out of poverty.

Until not so long ago, that was indeed its function. Created alongside the International Monetary Fund at the 1944 Bretton Woods Conference, the bank did sterling work in its early years helping countries like France recover from the war; and later, giving mostly third world countries the vital seed money needed to help attract investors to risky capital projects. Its multiplier effect on investment can be extraordinary. In 2013, the World Bank gave Kosovo $40 million towards building a lignite power station. This sent out the positive signal needed to encourage the private sector to complete the funding with another $1,960 million.

Amazing. Except that’s not what the World Bank does now.