Founded in 1944 to assist countries ruined by World War II, the World Bank has grown in scope and now focuses on eradicating poverty and raising the prosperity of the world’s poorest people. World Bank President Jim Yong Kim, in a speech delivered in April 2017 at the London School of Economics, stated the need for a new approach to development finance.
The entire finance development system should look for innovative ways to encourage private investment in development projects which can provide commercial returns while also benefiting all stakeholders. Reforms must be introduced to not only reduce the risk of individual projects, but also to reduce the risk to entire countries while making projects commercially viable. There will still be projects, though, that cannot work under commercial terms and that will require concessional financing.