World Bank Chief Ajay Banga cautioned that a major socio-economic crisis is looming for developing countries. Over the next decade and a half, 1.2 billion people will reach working age; however, at the current pace of economic development, only 400 million jobs will be created. This 800-million-job gap threatens to trigger a surge in illegal migration and global instability.
This was reported by Reuters, according to Dengi.ua .
Geopolitical Shocks and Long-Term Economic Priorities
Banga’s statement was delivered during the spring meetings of the World Bank and the International Monetary Fund (IMF) in Washington. Currently, the primary focus of global financial leaders remains the conflict involving the U.S., Israel, and Iran, which has caused significant energy supply disruptions through the Strait of Hormuz. Although a two-week ceasefire announced by Donald Trump has temporarily eased tensions, Banga urged governments not to overlook long-term strategic challenges.
He emphasized that the world must learn to simultaneously manage short-term geopolitical shocks and address fundamental structural issues. Providing youth with employment and access to essential services like water and electricity must remain a top priority for world leaders.
A Strategic Blueprint: Job Creation and Deregulation
The World Bank plans to collaborate closely with governments in emerging markets to mitigate this catastrophic labor shortage. A primary objective is to simplify the regulatory environments that have stifled investment for years. This initiative includes increasing transparency in permitting, reforming labor and land laws, combating corruption, and removing non-tariff barriers to international trade.
The Bank's anti-crisis plan also seeks to mobilize large-scale private capital. Five key sectors have been identified as high-priority, as they are less susceptible to AI-driven automation and do not rely on global outsourcing:
- basic infrastructure;
- agribusiness;
- primary healthcare;
- tourism;
- value-added manufacturing.
Infrastructure and Global Basic Needs
Beyond employment, international institutions are focusing their efforts on critical infrastructure. The World Bank, in partnership with other global organizations, is launching an initiative to provide sustainable access to clean water for one billion people. This project complements existing programs, such as the electrification of 300 million households in Africa and significant upgrades to global healthcare systems.
