Addis Ababa, April 24/2025 (ABN)
In an era of shifting global priorities and mounting development challenges, the World Bank must reclaim its foundational mission. Like the International Monetary Fund (IMF), the World Bank is at a crossroads. Its core mandate to foster economic growth, reduce poverty, and empower private investment must not be diluted by buzzwords or half-measures.
The World Bank Group plays a crucial role in helping developing countries strengthen their economies, create jobs through the private sector, and reduce dependency on foreign aid. It provides affordable, long-term, and transparent financing aligned with nations’ development priorities. Together with the IMF, it also promotes debt sustainability in low-income nations enabling them to resist coercive lending terms from opaque creditors. These vital functions support broader global economic stability, including the prosperity of the United States.
Yet, in recent years, the World Bank has strayed from these foundational goals. What the institution needs now is not vague rhetoric, but reform-driven action that demonstrates real value to all member states.
One of the most strategic and immediate opportunities for the Bank lies in energy access. Inadequate and unreliable power supplies are frequently cited by global business leaders as a major deterrent to investment in developing markets. The joint World Bank and African Development Bank initiative “Mission 300”, which aims to bring electricity to 300 million people in Africa is a significant step forward.
However, the World Bank must remain tech-neutral and focus on solutions that are affordable, scalable, and reliable. Rather than chasing arbitrary climate finance benchmarks, it should prioritize energy systems that can deliver consistent economic growth. This includes a strong endorsement of fossil fuel investments like natural gas, which serve as critical baseload sources in many emerging markets.
The recent announcement that the World Bank may lift its ban on financing nuclear energy is also encouraging. Nuclear energy has the potential to transform the energy landscape for many developing countries. The Bank must now go further, embracing all technologies that can fuel affordable and dependable electricity for all.
A balanced, all-of-the-above approach fossil fuels, renewables with backup, and nuclear is key. History proves that energy abundance is the foundation of economic abundance.
Another major area for reform is the application of the Bank’s graduation policy. Resources should be focused where they’re most impactful supporting poorer, less-creditworthy countries. Yet, the World Bank continues to extend financing to countries that have already met the criteria for graduation.
This ongoing lending to creditworthy nations diverts vital resources, hampers the development of local capital markets, and weakens incentives for self-reliance and reform. Notably, the case of China the world’s second-largest economy continuing to receive support as a “developing country” under World Bank frameworks is no longer defensible.
The time has come for firm graduation timelines and a sharpened focus on the nations truly in need.
To maximize the effectiveness of its spending, the World Bank must adopt transparent, value-based procurement policies. The current model, which often rewards the lowest-cost bids, opens the door to subsidized distortions, corruption, and collusion. Over time, this approach inflates costs and undermines both private sector development and long-term sustainability.
Adopting a best-value model in procurement will promote innovation, reward quality, and support genuine development outcomes. This shift must also include strong ethical standards particularly in conflict-affected areas.
In the case of Ukraine, the Bank must send a clear and uncompromising message: Entities that financed or supported Russia’s war machine will be excluded from any reconstruction-related funding.
If the World Bank is to remain relevant and effective in the 21st century, it must return to basics empowering the world’s poorest, backing job-rich growth strategies, and financing transformational energy projects. Reforms must be bold, transparent, and uncompromising. Only then can the Bank truly fulfill its promise as a global catalyst for sustainable development and economic opportunity.
