2025 World Bank ABCDE Plenary Panel
Date:
Tue 22 July 2025
Development in the Age of Populism
Speakers — Rachel Glennerster, Indermit Singh, Danny Quah
Moderator — Justin Sandefur
Venue — World Bank, Washington DC
By most measures of human progress, the world is in better shape today than it has ever been—in life expectancy, in per capita GDP, and in literacy rates, among other things. Yet, profound dissatisfaction has taken root in many countries, at every level of income. The global economic system that has powered much of this progress over the last 80 years is now widely regarded as broken. Nearly two-thirds of the global electorate went to the polls last year to register their displeasure regarding income inequality, cultural insecurity, and elite institutions.
Populism, in short, is ascendant to an unusually synchronized degree, fueled by a fragmenting public consensus on the policies needed for economic progress. It will pose a formidable development challenge in the coming years—and requires a nuanced understanding of the underlying causes as well as a strategic approach to addressing the concerns of affected populations.
Economic theory suggests that trade liberalization yields win-win outcomes in the aggregate for all, but that hasn’t proven to be true in all instances. The gains derived from liberalization are not evenly distributed, and the realities encountered by millions globally have deviated markedly from the positive-sum outcomes predicted by theory.
Populism of the kind we are concerned about here generates tensions not just within but across nations. Such tensions harm the mechanisms that connect people to the dignified, meaningful, and productive jobs that best match their abilities. These disruptions damage growth and development in the most profound sense, of allowing people the dignity that comes from gaining control over their environment.
How can development economics meet this moment?
