Washington D.C., October — World Bank President Ajay Banga has cautioned that the world could face rising instability if governments and financial institutions fail to create enough jobs for the growing youth population.
Speaking at the Civil Society Organizations Town Hall during the 2025 World Bank Group–IMF Annual Meetings in Washington, the President stated that inaction on economic reform and development could turn the energy and optimism of the younger generation into despair, leading to instability, unrest, and mass migration.
He described jobs as “the cornerstone of dignity and stability, and the most effective weapon against poverty,” urging countries to rethink employment strategies to include both formal jobs and entrepreneurship. According to the World Bank President, entrepreneurial ventures are key to sustainable employment, with the private sector accounting for nearly 90 percent of jobs worldwide.
While acknowledging the government’s role in early job creation, he emphasized that long-term growth relies on the private sector. For entrepreneurs to thrive, he said, they need supportive policy frameworks, infrastructure, and access to finance—areas where the World Bank is focusing its efforts through partnerships, reforms, and capital investments.
The Bank’s current strategy to boost employment centers on three priorities: infrastructure, good governance, and private sector empowerment. The President called for investment in physical and human capital—from roads and power to education and healthcare—backed by transparent rules that encourage private investment.
He highlighted five industries with the greatest potential for job creation: infrastructure and energy, agribusiness, healthcare, tourism, and value-added manufacturing, including critical minerals. To attract private capital, the World Bank has launched the Private Sector Lab, a new platform offering regulatory clarity, political risk insurance, and financing tools such as local currency solutions and junior equity funds.
The President also outlined a vision of “smart development,” focused on building economies resilient to both financial and environmental shocks. “We need infrastructure that survives storms and droughts, public finance systems that avoid debt crises, and governance rooted in transparency and accountability,” he pointed out.
He stressed that gender inclusion must be central to any growth strategy, calling it not only a fairness issue but “essential to lasting economic progress.”
The World Bank, he noted, is increasing investments in climate resilience, debt-for-development swaps, and digital anti-corruption tools, while helping governments redirect spending toward high-impact priorities through public finance reviews and training.
“Jobs are not a byproduct but the ultimate objective of development efforts,” the World Bank President concluded. “Every investment in health, education, infrastructure, or digital access serves the purpose of enabling people to earn livelihoods and support their families.”
