Dams have been emblematic of the World Bank’s approach to development for many decades. From the bank’s early years in the 1960s and 1970s, large-scale infrastructure projects such as dams, power plants and transport networks were central to its strategy for economic growth and poverty reduction. This reflected a top-down modernisation paradigm.
But the controversial social, economic and environmental impacts of dams sparked widespread criticism. This prompted internal scrutiny and a reduction in funding by the 1990s. Notable examples included the bank’s withdrawal from India’s Narmada Dam and Nepal’s Arun III hydropower project. Both followed large-scale protests.
From 2007, the bank’s support for dams began to rise again, reflected in an increasing portfolio of projects. There were two main drivers. Hydropower gained renewed appeal as a low-carbon energy source. And infrastructure-led economic growth regained prominence in development policy. Yet, earlier debates were not erased: questions about social, environmental and political consequences continued to influence decision-making.
