Lilli, the German Adult-Themed Cartoon Character Who Became the Barbie Doll
In defence of Barbie, that waist is at least partially utilitarian.  It's there to hold the cloths on.  Dresses would fall off a more human figure as soon as the kid turned it upside down.  It's an answer to the interesting design challenge of trying to scale clothing down to doll proportions without resorting to paper-thin microcloth.