World Bank President Ajay Banga is sounding the alarm about a looming jobs crisis. Over the next 10 to 15 years, 1.2 billion people in developing countries will reach working age, but current economic trajectories suggest only 400 million jobs will be created, leaving a deficit of 800 million.
Banga emphasized the need to address long-term challenges like job creation, electricity access, and clean water, even amidst current global economic shocks. He stated, "We have to walk and chew gum at the same time. Short-velocity cycle is what we're going through. Longer velocity is this jobs circumstance or water."
The World Bank's Development Committee is planning to work with developing nations to streamline policies and regulations hindering investment and job creation. Discussions will cover transparency, anti-corruption, labor and land laws, business startups, logistics, and trade.
Banga is optimistic that solutions can be found to provide employment and dignity for young people, creating opportunities for private companies. "If you don't do it, the implications are quite severe in terms of illegal migration and instability," he cautioned.
In addition to jobs, water access will be a major focus, with plans to ensure one billion more people have secure access to clean water. The World Bank is also pushing initiatives for electricity access and improved healthcare.
The bank identified five sectors for private investment: infrastructure, agriculture, primary healthcare, tourism, and value-added manufacturing. These sectors are considered less susceptible to immediate impacts from artificial intelligence.