World Bank finds its aid works best where governments are weakest, if it sends its best people

The World Bank reviewed 2,500 infrastructure projects over six decades and found they created high economic value. It turns out these projects performed best in countries with weak institutions when the World Bank sent its most skilled staff.

Many people assumed that aid to countries with weak governance was largely wasted. This paper shows that targeted, high-quality intervention can overcome institutional challenges and deliver strong returns. It means development banks might need to rethink how they allocate their best talent and where they focus their efforts.