Abstract

​​The climate crisis disproportionately threatens developing countries, where factors such as fragile economies, dependence on agriculture and weak infrastructure increase vulnerability. This paper examines the World Bank’s role in supporting climate adaptation in three developing countries: Bangladesh, Ethiopia and Haiti. It highlights that while Bangladesh contributes little to global emissions, it encounters rising sea levels and devastating floods, leading to financing flood recovery and long-term adaptation programmes. In Ethiopia, where 80% of the workforce depends on climate-sensitive, rain-fed agriculture, the World Bank has invested heavily in electrification projects and agricultural programmes that aim at boosting productivity and increasing long-term stability. In Haiti, one of the most disaster-prone nations, the prioritisation of disaster risk management and sustainable agriculture counters rising hurricane intensity and food insecurity. The paper also highlights key constraints of past and ongoing World Bank projects, including political instability, COVID-19 disruptions and debt distress. The paper concludes that the World Bank’s assistance is necessary but lacking. Although it strengthens short-term resilience, adaptation demands stronger governance and greater emphasis on long-term climate resilience.

Introduction

The World Bank is a financial institution that provides grants and support to developing countries and those facing severe impacts after a disaster. The organisation issues projects that can assist a country in multiple categories, from improving infrastructure and the sustainability of agriculture to recovery from disasters and providing emergency shelters. In recent years, climate change has become a major priority for the World Bank, with billions of dollars directed towards renewable energy, climate-resilient agriculture and disaster preparedness projects. As of 2025, the World Bank’s dedication to aligning its projects with the Paris Agreement highlights its increasing role in the fight against climate change. According to the World Bank Group, an essential part of their vision is “helping people and communities adapt and prepare for the unpredictable and life-changing weather patterns they are experiencing, [since] droughts, extreme heat, flooding and storms push millions into poverty annually, causing unemployment and risking unplanned internal and cross-border migration” (World Bank Group, 2025). Thus, the World Bank is supporting relevant countries to meet these challenges in a way that builds long-term stability.

It is essential to explore how the World Bank has achieved this and the effectiveness of its approach: what relevance does it have today? Globally, the climate crisis endangers many communities, with weather changes directly affecting the industries and income of millions of people. Some countries are at high risk of natural disasters, such as flooding or drought. In recent years, we have witnessed rising sea levels, changing weather patterns and more frequent natural disasters. While some countries are better able to cope with this, others face far more severe impacts from emergencies and disasters. 

In the coming years, the frequency and intensity of natural disasters are expected to increase. Countries that rely on industries such as agriculture may suffer losses in income, driving a greater number of their population into poverty. The increasing risk of floods, storms and rising sea levels poses potential damage to roads, schools, hospitals and homes, which will further strain national budgets. Additionally, energy access is not only an issue of poverty alleviation but also a need for sustainable adaptation. As communities with electricity are better able to access health services and climate information systems, the transition to clean and resilient energy sources is a necessary one.

Many developing countries are extremely vulnerable to the changing climate and its immediate and long-term effects. Bangladesh, Ethiopia and Haiti exemplify this reality: Ethiopia and Haiti are classified as low-income countries, while Bangladesh is a lower-middle-income country, making all three of them a part of the developing world. With relatively low incomes, high poverty rates and heavy dependence on climate-sensitive sectors, these three economies represent the broader challenges of developing nations: limited resources, limited adaptive capacity and high exposure to environmental shocks. Their classification as “developing” shows their structural economic constraints and the inability to independently counter climate shocks without external assistance. In these cases, the World Bank’s projects improve the quality of life of the people living in the affected areas. This paper will explore the World Bank’s contributions to countries vulnerable to climate change and threatened industries. This paper asks: to what extent has World Bank assistance (2019–2025) strengthened climate-adaptation outcomes in Bangladesh, Ethiopia and Haiti?

Methods

We conducted a desk-based comparative review (between 2019–2025) of World Bank documents, UN/regulator datasets and reputable reports. We compiled reported figures (financing amounts, access rates and resilience proxies) and triangulated them where possible. 

Research Aims

This research paper aims to provide an analysis of the World Bank’s assistance to developing countries in relation to the climate crisis and adaptability. The paper examines how vulnerability to the climate crisis affects different sectors in three developing countries: Bangladesh, Ethiopia and Haiti. It further traces the World Bank’s role as both a financial institution and policy advisor for large-scale interventions such as electrification, agriculture and infrastructure. Furthermore, the paper evaluates whether these interventions have a long-term impact or only offer short-term relief, as they are affected by social, economic and political issues. Through this paper, the research highlights both the limitations and achievements of the World Bank’s assistance in addressing climate risks.

Bangladesh: Vulnerability to Climate Risk

Bangladesh is a developing country that has been consistently aided by the World Bank due to its vulnerability and exposure to climate-related risks and disasters. “Despite contributing only 0.3% of global greenhouse gas emissions (2022 data), Bangladesh ranks ninth on the 2024 World Risk Index of countries most vulnerable to extreme weather and climate impacts.” (The Climate Reality Project, 2025) The vulnerability of Bangladesh to climate risks has significantly impacted many sectors of its economy. An average tropical cyclone costs the country approximately $1 billion annually. In addition to this, between 2000 and 2019, Bangladesh suffered climate-related economic losses worth $3.72 billion and experienced 185 extreme weather events. The impact of climate change in Bangladesh has been widely felt across livelihoods, food and water security, ecosystems and infrastructure. Furthermore, climate-related hazards are projected to intensify in the future due to a gradual increase in temperature and precipitation in Bangladesh, as well as overall weather patterns becoming more erratic due to the worsening of climate change. With a trend in global sea levels rising since 1993, this poses a significant threat, with most of the area of Bangladesh being less than 10 m above sea level. 

Figure 1: Global Sea Level Change (1993-Present) (World Bank Climate Change Knowledge Portal).

Looking forwards, the consequences of the inability to adapt could be devastating to the country. A report by the World Bank (2022) states that, “by 2050, Bangladesh may lose one-third of its agricultural GDP due to climate variability and extreme events”. This would significantly impact the livelihoods of millions, as agriculture accounts for roughly half of national employment. Furthermore, the report states that 13.3 million people may become internal migrants within the next 30 years due to climate-related drivers such as rising sea levels, water stress and declining crop yields. The impacts of displacement and job losses would disproportionately affect women and marginalised communities. Additionally, in the case of severe flooding, the country’s GDP could decline by as much as 9%, placing enormous strain on both development and recovery. The data from this report clearly highlights the urgency of the challenges facing Bangladesh due to increasing climate change.

CLIMATE ADAPTATION AND RESILIENCE-BUILDING

In response, the World Bank has shown many instances of supporting Bangladesh’s climate adaptation and resilience-building. More recently, on 14 May 2025, the World Bank approved $270 million in financing to bolster Bangladesh’s recovery from the devastating August 2024 floods. This initiative, known as the Bangladesh Sustainable Recovery, Emergency Preparedness and Response Project, focuses on rebuilding and strengthening rural and flood protection infrastructure. The official proposed development objectives of this initiative are to “(a) rehabilitate and enhance the resilience of critical public infrastructure, and (b) support flood-affected households to strengthen livelihoods” (World Bank, 2025). The project also includes support for climate-resilient agriculture, community recovery and livelihood restoration, especially for those most affected by climate-induced disasters.

Beyond emergency response, the World Bank has been involved in longer-term climate projects, such as improving urban water and sanitation systems, supporting solar energy access and helping implement the Bangladesh Delta Plan 2100, which aims to safeguard water, food and environmental security for the next century. 

LIMITATIONS AND EFFECTIVENESS

While the World Bank has played an essential role in Bangladesh’s climate adaptation journey, there are several limitations to its financing approach that must be addressed to safeguard Bangladesh’s future. A significant limitation is the overreliance on large-scale infrastructure projects, such as embankments, flood control structures and cyclone shelters. While these are necessary, they often overshadow other possible adaptation measures – like investing in local capacity, ecosystem-based solutions and community engagement. Despite agriculture being one of the most vulnerable sectors to climate change in Bangladesh, the level of funding and innovation directed toward agricultural adaptation remains inadequate. Given that agriculture sustains millions of people and is highly climate-sensitive, it must be prioritised more directly in World Bank-funded initiatives.

In addition to this, the initiatives created by the World Bank can generally benefit from more strategic planning where an understanding of the long-term needs of Bangladesh is present. For example, the $270 million approved in May 2025 was a direct response to the floods that occurred in August 2024. This funding generally acted as a means of recovery for the nation and was effective in the shorter-term. A more long-term goal for a similar initiative should focus more on strengthening Bangladesh’s resistance for the future and most likely stronger, climate disasters.

When addressing the goal of climate resilience, many of the World Bank’s initiatives focus on building resilience to natural disasters such as floods and cyclones. While these are essential and have proven helpful for the country, there should also be an additional focus on a reduction of global greenhouse gas emissions. While Bangladesh only accounts for 0.3-0.4% of greenhouse gas emissions globally, its rapid population growth indicates an eventual increase in these emissions. Additionally, a high level of air pollution poses a significant threat to Bangladesh’s economy, costing 9% of GDP annually (World Bank Group, 2022). By implementing policies that abate both air pollution and emissions, Bangladesh can reduce deaths from air pollution by half or save nearly 1 million lives by 2030. 

To be truly effective, future World Bank financing must be more balanced in assessing the current and future needs of Bangladesh, with greater emphasis on agricultural resilience and community-led adaptation. Investments in physical infrastructure should be complemented by efforts that build human capital, protect ecosystems and empower vulnerable populations. Without these reforms, Bangladesh risks being unable to achieve the climate-resilient future it urgently needs.

Ethiopia: World Bank Contributions to Climate Crisis

Countries like Ethiopia, where the dominant source of income is “rain-fed agriculture”, are highly vulnerable to climate change and frequent droughts (Isak, 2024). Ethiopia’s limited adaptive capacity remains inadequate to counteract seasonal rainfalls in much of the country, which makes the population vulnerable to environmental shocks. Accordingly, the World Bank has directed significant funding to support Ethiopia’s efforts to address climate change, focusing primarily on expanding electricity access and strengthening climate-resilient agriculture. As the World Bank emphasised in its development policy operation, it “will support Ethiopia in achieving its climate change goals and building more resilience to climate risks” (World Bank Group, 2024). Additionally, further interventions in fields like finance, water and sanitation illustrate how the World Bank effectively uses funding to aid climate mitigation and adaptation.

EXPANDING ELECTRICITY ACCESS IN RURAL AREAS

The electricity problem in Ethiopia is as crucial for climate resilience as it is for overall development. Millions of Ethiopians, mostly residing in rural areas, remain disconnected from reliable power sources, with urban coverage at 94.3% compared to 42.8% in rural areas (Gasheye, 2025). Thus, the World Bank places high importance on aiding Ethiopia in electricity access through projects that combine large-scale renewable energy investments with decentralised systems, all aiming to enable rural areas to access electricity. In 2018, the World Bank launched the Ethiopia Electrification Programme (ELEAP) to increase access to electricity in Ethiopia.

Figure 2: Access to electricity (% of population): Ethiopia (World Bank Open Data).

This programme effectively increased electricity access in Ethiopia until 2021. After the success of ELEAP, the World Bank launched the Access to Distributed Electricity and Lighting in Ethiopia Project (ADELE) in 2021, which aims to provide electricity to 5 million more people (World Bank Group, 2025). To further support its Mission 300 goal to connect 300 million people in Sub-Saharan Africa by 2030, the World Bank launched ASCENT Ethiopia, where “nearly six million Ethiopians will gain electricity under ASCENT Ethiopia, supported by World Bank financing and Denmark’s grant contribution” (AHK, 2025). This project represents a major step toward energy access and simultaneously reducing vulnerability to climate risks by shifting rural households toward clean energy sources. These efforts by the World Bank reflect the recognition that energy access is not only an issue of poverty alleviation but also a need for sustainable adaptation, allowing connected communities to more easily access water pumps, health services and climate information systems.

BUILDING RESILIENT AGRICULTURE SYSTEMS

The agriculture sector employs nearly 80% of Ethiopia’s labour force, yet it is one of the most climate-sensitive sectors in the country (Isak, 2024). Constant droughts, rainfall and floods negatively impact national food security and workforce, incentivising the World Bank to invest heavily in agricultural growth programmes. 

Figure 3: World Bank Commitments to Ethiopia by Sector (Isak, 2024).

Being the third largest industry to receive World Bank financing, the agriculture sector was aided with the trio of the Agricultural Growth Programme 1 (AGP1), the Agricultural Growth Programme 2 (AGP2) and the West Africa Food System Resilience Programme (FSRP) (World Bank Document, 2025). AGP1 is a project aimed at increasing agricultural productivity by boosting rural income and food security with an investment of $51.5 million. The World Bank supported agricultural growth with its project AGP1 from 2011 to 2017, yielding encouraging results that contributed to AGP2’s huge financial support. AGP2 scaled up interventions from 83 woredas in four regions under AGP1 to 167 woredas in AGP2, adding components on agricultural research and expanding the programme’s scope (World Bank Document, 2025). Targeting agricultural goals that are crucial for Ethiopia’s development and gross domestic product growth, AGP2 increased real revenue from cereals and pulses by 113.5% and from fruits and vegetables by 75.5%. Additionally, revenue from livestock products such as “milk, honey and eggs increased by 204%, 44.6% and 41.9% respectively” (World Bank Document, 2020). The project created nearly one million rural jobs, supported productivity and created economic opportunities. While AGP1 and AGP2 are the first and second phases, FSRP represents the third phase: overcoming the growing risks of climate change. FSRP represents the World Bank’s emphasis on increasing the resilience of Ethiopia’s food systems and the country’s preparedness for food insecurity (GCA). Expanding to a span of ten years, this project aims to reflect a broader shift from short-term productivity toward long-term resilience and systemic transformation of Ethiopia’s agriculture sector. To sum up, these three programmes were “strategically designed to complement each other, incorporating lessons learnt and ensuring lasting agricultural development in the country” (World Bank, 2025).

LIMITATIONS AND EFFECTIVENESS

Despite considerable gains, the effectiveness of World Bank interventions in Ethiopia’s distinct sectors has been affected by external shocks and challenges related to governance. One of the most persistent constraints has been political instability, which undermines long-term project impact. Conflict in regions such as Tigray, Oromia and Amhara led to the destruction of critical infrastructure, such as farm training centres, market hubs and irrigation canals, as well as leading to severe humanitarian crises, displacing millions and destroying infrastructure before a peace accord in 2022. The ICR notes that “violence and security issues [] crippled the project’s progress” and delayed the completion of infrastructure and the World Bank timeline (World Bank Document, 2020). Political volatility also discouraged investment in new technologies and market progress, limiting the impact of World Bank support. 

The economic environment has also limited effectiveness. Ethiopia’s own development model led to a rapid growth period from the mid-2000s until 2015. However, by 2018, growth slowed and inflation rose, leading to a large debt distress (World Bank, 2023). COVID-19 further reduced GDP growth to 5.6% in 2020–21, constraining the government’s ability to co-finance World Bank projects. Finally, Ethiopia is one of the most climate-vulnerable countries in Africa, depending highly on agriculture. In a world where the climate crisis becomes worse every day, climate shocks continue to erode resilience. 

The World Bank’s contributions to Ethiopia highlight the dual reality of climate assistance in developing countries. The extent to which the World Bank effectively assists the climate crisis in energy access and agricultural resilience cannot be clear without taking the structural vulnerabilities posed by political fragility and intensifying climate crises into account. The interventions by the World Bank are therefore best understood as necessary but requiring stronger domestic force and cooperation to become a lasting resilience against climate change.

Haiti: Threatened by Natural Disasters

The largest industry in Haiti is agriculture: the country exports organic products, including vetiver oil and mangoes. Haiti is classed as a low-income country, with 58.5% of the 2012 population living in poverty (World Bank, 2023) and a lower capacity to cope with emergencies. Unfortunately, due to its location and topography, Haiti is one of the most vulnerable countries to natural disasters and global warming has increased the risk of hurricanes, floods and tropical storms in the area. In the coming years, the frequency and intensity of hurricanes are expected to increase, and the melting of polar ice and rising sea levels subject Haiti’s low-lying coastal areas to a greater risk of flooding.

Figure 4: Accumulated Cyclone Energy Index (1950-2020) (NOAA & Emmanuel, United States Environmental Protection Agency).

Figure 5: Power Dissipation Index and Sea Surface Temperature (1950-2020) (NOAA & Emmanuel, United States Environmental Protection Agency).

Much of Haiti’s land is low-lying coastal areas; parts of the capital, Port-au-Prince, are only 15 m above sea level. Due to soil erosion in mountainous areas, agriculture is best carried out in arable plains and fertile coast. All of this means that Haiti will likely experience an unprecedented rise in flooding in the near future, threatening numerous farms and population income.

Figure 6: Sea Height Variation (1993-Present) (Satellite Data).

CASE STUDY: 2010 HAITIAN EARTHQUAKE

In January 2010, Haiti experienced the “worst humanitarian disaster in recorded history in Latin America and the Caribbean” (World Bank 2021 report), killing around 200,000 people and displacing a further 1.5 million people. The 7.0 magnitude earthquake struck near the capital city and aftershocks soon followed. It caused widespread damage, hindering the effectiveness of emergency response and destroying homes, farms and infrastructure. While earthquakes are not influenced by climate change, they present the severity of impact that natural disasters have on Haiti and the country’s diminished capacity to cope. 

In response to this and the threat of global warming, the World Bank has funded climate and landscape projects to assist recovery from natural disasters. This aims to enhance future risk management and mitigate the severity of disaster impacts in Haiti.

IMPROVING CLIMATE RESILIENCE AND BOOSTING AGRICULTURE

In 2019, the World Bank’s Strengthening Disaster Risk Management and Climate Resilience Project was approved. This aims to upgrade the emergency capacity and natural disaster response in “high climate risk-prone areas” (World Bank, 2023) by bolstering the Haitian government’s capacity to respond to emergencies. One component of this is to “improve the resilience of the population against hydro-meteorological hazards”. For this, the World Bank provided a grant of $8 million. Another component involved improving the capacity of response and evacuation. By enhancing early warning systems and providing emergency shelters, the project aims to reduce the potential number of injuries and fatalities from natural disasters.

The largest Haitian industry, agriculture, provides an income to the majority of the population. However, the expansion of agricultural production has had adverse environmental impacts, contributing to air and water pollution and harming the ecology. Without intervention, this is unsustainable in the long term. In 2025, the World Bank approved another grant ($50 million) for the Resilient Productive Landscapes project in Haiti, collaborating with the Global Environmental Facility. To improve agricultural sustainability, the World Bank has supplied enhanced agricultural technology to local farmers and taught sustainable farming practices to small communities. This should directly strengthen food security. Furthermore, it involves updating various environmental policies to ensure the sustainability of farming practices in the future.

LIMITATIONS AND EFFECTIVENESS

However, the effectiveness of such projects has often been undermined by Haiti’s political fragility and limited governance capacity. Delays in implementation and insufficient long-term financing reduce effectiveness, leaving most of the population still vulnerable to natural disasters and economic struggles. Overall, the World Bank’s assistance aims to protect the Haiti population from natural disasters and reduce poverty. This has proven to be vital, especially over the last 15 years, due to the worsening effects of global warming and the unsustainability of certain agricultural practices. In the coming years, we are expected to observe a drastic increase in the intensity and frequency of natural disasters, putting more of Haiti’s population at risk of fatality. Without the World Bank’s contributions, Haiti could face far more severe impacts, driving more people into poverty and threatening lives. 

Conclusion

Overall, the World Bank has been able to effectively aid all three developing countries – Bangladesh, Ethiopia and Haiti – in coping with vulnerabilities to climate-related risks. Its financial and technological assistance has often acted as a vital force, allowing these nations to rebuild after natural disasters and to invest in areas where the budgets of respective governments fall short. Thus, the assistance of the World Bank is crucial to each country’s success in building climate resilience in the midst of an ever-worsening climate crisis. Many of the World Bank’s initiatives for these countries have involved boosting their agricultural industries, improving infrastructure and overall attempts to reduce economic losses in various sectors. However, the effectiveness of these projects often depends on political stability, as well as the ability to integrate community-based solutions with large-scale infrastructure. These initiatives can have a greater impact by assessing each country’s needs beyond its current situation. A stronger emphasis on innovation, such as climate-resilient farming practices and renewable energy diversification, could make these interventions more sustainable and benefit nations in the long term, further focusing on building a sustainable future for each of these countries.

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