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The World Bank Revised Minimum Standard Model : concepts and limitations


Nowak, Wioletta

Subject and Keywords:

RMSM   Revised Minimum Standard Model   two-gap model   economic growth   World Bank


Od 2013 pt.: Ekonomia - Wroclaw Economic Review


The Revised Minimum Standard Model (RMSM) became an important analytical tool for the World Bank’s fi nancing projects in the 1970s. Since that time, the model and its sequential extensions (the RMSM-X and the RMSM-XX) have been used to forecast economic growth and development in developing countries, despite their numerous limitations. The RMSM model can be solved in the positive mode and in the programming mode without or with limits on foreign fl ows. The model estimates the levels of investment and foreign fi nancing that are needed to achieve a target for economic growth if it is solved in the positive mode or in the programming mode without constrains on foreign fi nancing. If the RMSM model is solved in the programming mode with constrains on foreign fi nancing then it gives us a feasible level of output growth for available levels of investment and foreign fi nancing. The extended Bank’s models incorporate more complex economic structure. The RMSM-XX model more completely specifi es the behavioural links among economic variables

Place of publishing:



Wydawnictwo Uniwersytetu Wrocławskiego

Date issued:


Date copyrighted:



ISSN 2084-4093




Acta Universitatis Wratislaviensis, ISSN 0239-6661 ; no 3535. Ekonomia, ISSN 2084-4093 ; 19/2 s. 37-48

Is version of:

Czasopisma Naukowe w Sieci (CNS)

Rights holder:

Copyright by Wydawnictwo Uniwersytetu Wrocławskiego Sp. z o.o.

Autor opisu:

WR U/PAdjm