This article traces the history of the concept of poverty within the institutional framework of the World Bank, from its inception to its establishment of the dollar-a-day global poverty threshold. The Bank's evolving conceptualization of poverty and how it related to the development process affected the policies that were advanced to boost the productivity of underdeveloped countries. Internal and external influences and constraints conditioned the Bank's approach to poverty and its alleviation from the beginning, when poverty was conceived as a political issue beyond the scope of the Bank's mandate. Separating the political implications of poverty alleviation from the Bank's development agenda was tenuous, and by the 1970s a universal, absolute concept of poverty became the focal point of Bank operations. The eventual monetization of global poverty reflected the increasingly technical nature of the Bank's development work and its need for a practical yardstick by which to measure the success of its anti-poverty policies.

According to most reconstructions of development debates, poverty and social issues were not part of the development agenda until the late 1960s. In contrast, this article shows that development practitioners and institutions were already addressing poverty and social issues in the late 1940s and early 1950s. However, economic multilateral organizations soon marginalized those inclusive views and focused exclusively on economic growth. This article discusses those early policy options and why they were marginalized. It argues that this happened for ideological reasons, specifically because of the ideological anti-New Deal post-war backlash and the adhesion of Western countries and multilateral organizations to what Charles Maier defined as the politics of productivity. This ideological backlash explains the rise and early demise of Keynesian ideas in international organizations, and, conversely, their stronger influence in developing countries, where the direct influence of the US and Bretton Woods organizations was somewhat mitigated.