World Bank

The World Bank's Country Policy and Institutional Assessment is done annually for all its borrowing countries. It has evolved into a set of criteria, which are grouped in four clusters: (a) economic management; (b) structural policies; (c) policies for social inclusion and equity; and (d) public sector management and institutions. The number of criteria, currently sixteen, reflect a balance between ensuring that all key factors that foster pro-poor growth and poverty alleviation are captured, without overly burdening the evaluation process. Ratings for each of the criteria reflect a variety of indicators, observations, and judgments. They focus on the quality of each country's current policies and institutions - which are the main determinant of present aid effectiveness prospects. To fully underscore the importance of the CPIA in the IDA Performance Based Allocations, the overall country score is referred to as the IDA Resource Allocation Index (IRAI)

Global growth is expected to hold steady at 2.7 percent in 2025-26. However, the global economy appears to be settling at a low growth rate that will be insufficient to foster sustained economic development. Emerging market and developing economies are set to enter the second quarter of the 21st century with per capita incomes on a trajectory that implies feeble catch-up toward those of advanced economies. Most low-income countries are not on course to graduate to middle-income status by 2050. Policy action at the global and national levels is needed to foster a more favorable external environment, enhance macroeconomic stability, reduce structural constraints, address the effects of climate change, and thus accelerate long-term growth and development.