The Role of the World Bank in the Economy: An Evidence from Selected Developing Countries from 2015 Through 2021

This study critically examines the impact of World Bank Group (WBG) borrowings on the economic development of selected developing countries. Drawing on regression analysis, the findings present a complex narrative: while theoretical models suggest that WBG financial support should drive positive development outcomes, empirical evidence reveals a mixed reality across different nations. Notably, countries like Ukraine and Nigeria exhibit some developmental benefits from WBG loans, whereas China, Brazil, and Mexico do not report significant gains. These findings underscore the non-universality of development models, highlighting the influence of regional, cultural, and political dynamics in shaping economic outcomes. The research affirms that without tangible improvements in human capital and quality of life, the costs of WBG membership may outweigh its benefits. It also raises concerns about governance practices within the World Bank, including infrequent oversight by its Board of Governors and the lack of objectivity in project appraisals. On the side of borrower nations, the study emphasizes the need for stronger institutions, transparent fund management, and prioritization of human capital investments in health and education. Ultimately, the research argues for a re-evaluation of the WBG’s strategies and encourages the development of context-sensitive economic support models that align with the unique socio-political realities of borrowing countries.