NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Tuesday, April 7, 2015

World Bank Group President Jim Yong Kim today announced a broad strategy to end extreme poverty by 2030, and he welcomed emerging players such as the Asian Infrastructure Investment Bank and the New Development Bank, established by the BRICS countries, as potentially strong allies in the economic development of poor countries and emerging markets.

“If the world’s multilateral banks, including the Asian Infrastructure Investment Bank and the New Development Bank, can form alliances, work together, and support development that addresses these challenges, we all benefit – especially the poor and most vulnerable,” said Kim. “It is our hope – indeed, our expectation – that these new entries will join the world’s multilateral development banks and our private sector partners on a shared mission to promote economic growth that helps the poorest.”

“I will do everything in my power to find new and innovative ways to work with these new institutions.”

Speaking today at the Center for Strategic and International Studies (CSIS) in Washington in advance of the World Bank/IMF Spring Meetings, Kim noted that to achieve the World Bank’s twin goals — ending extreme poverty by 2030 and boosting shared prosperity among the poorest 40 percent in low- and middle-income countries — “there is more than enough work to go around.”

The new multilateral banks could help bridge financing gaps in areas such as infrastructure, energy, and water, said Kim. “We estimate that the world needs an additional US$1 to 1.5 trillion dollars every year to be invested in infrastructure – roads, bridges, railways, airports, and energy plants. By 2030, we will most likely also need 40 percent more energy and face a 40 percent shortfall of water – pressures that may well be further accelerated by climate change.”

Kim hailed the substantial development progress over the past 25 years. “In 1990, when the world population was 5.2 billion, 36 percent of the world lived in extreme poverty. Today – with 7.3 billion people — an estimated 12 percent live in poverty. Over the past 25 years, the world has gone from nearly 2 billion people living in extreme poverty to fewer than 1 billion.”