Updated
Updated · The New York Times · Sep 17
World Bank Draws $112 Billion in Private Capital for Developing Countries, Up 62%
Updated
Updated · The New York Times · Sep 17

World Bank Draws $112 Billion in Private Capital for Developing Countries, Up 62%

2 articles · Updated · The New York Times · Sep 17

Summary

  • $112 billion in private capital flowed through the World Bank in 2026 for projects in developing countries, marking a 62% jump from a year earlier.
  • Ajay Banga has made private financing a central strategy as debt burdens, high interest rates and tight budgets leave poorer countries struggling to fund roads, housing and other development needs.
  • The bank has expanded that push by courting pension funds, multinationals including Nestle and General Motors, asset managers such as BlackRock, and local financial institutions.
  • Political risk insurance, greater risk-taking by the bank and pressure on governments to clarify investment rules have helped pull money into poorer markets.
  • The total has nearly tripled in the three years since Banga took over, as the bank's focus has shifted from climate-finance ambitions toward infrastructure and job creation.

Insights

With $112 billion unlocked, will shifting global development to private investors leave unprofitable but vital social safety nets completely unfunded?
As the World Bank pivots to Wall Street for development funding, who truly profits from de-risking emerging market infrastructure?
How exactly does the World Bank plan to protect massive private investments from volatile foreign-exchange risks in deeply indebted nations?