The World Bank President, Ajay Banga, has urged policymakers not to lose sight of a far more significant long-term challenge amid the Middle East conflict,
which is job creation. He highlighted a stark imbalance: nearly 1.2 billion people in developing nations will enter the workforce over the next decade to 15 years, but current projections suggest only 400 million jobs will be created. This leaves a massive shortfall of 800 million jobs, a gap that could have profound socio-economic consequences. Banga acknowledged the difficulty of maintaining attention on long-term structural issues during periods of repeated global shocks, from the COVID-19 pandemic to ongoing geopolitical tensions. "We have to walk and chew gum at the same time. Short-velocity cycle is what we're going through. Longer velocity is this job's circumstance or water," Banga said in an interview, according to a Reuters report. He spoke in Washington, where global finance leaders assembled for the spring meetings of the World Bank and the International Monetary Fund. Where geopolitical tensions in the Middle East are expected to dominate discussions, Banga raised a different issue. The ongoing US-Iran conflict has injected fresh uncertainty into the global economy, raising fears of slower growth and rising inflation. Despite a temporary ceasefire announced by Donald Trump, concerns remain elevated. While the truce has reduced direct hostilities, disruptions such as Iran’s blockade of the Strait of Hormuz continue to impact global energy supplies. Additionally, parallel conflicts in the region have kept markets on edge, preventing any meaningful sense of stability. Reforms And Investment Key To Job Creation Efforts are now underway to address systemic barriers that have historically slowed job growth in developing economies. The Development Committee of the World Bank is working with countries to improve regulatory frameworks, enhance transparency, and reduce bottlenecks that hinder investment. Key areas under discussion include labour and land laws, trade systems, logistics, and easing the process of starting businesses. Banga expressed cautious optimism that progress in these areas could unlock employment opportunities while improving overall economic resilience. "I don't know that you can ever get to a situation of utopia and everybody is taken care of in the coming 15 years. I would doubt that's going to happen, but if you don't do it, the implications are quite severe in terms of illegal migration and instability," Banga said. Beyond Jobs: Water, Energy And Private Sector Push Alongside employment, access to basic resources remains a top priority. The World Bank, in collaboration with other institutions, is preparing initiatives aimed at expanding clean water access to one billion more people. This builds on ongoing programs to connect millions of households in Africa to electricity and improve healthcare systems. Banga also emphasised the importance of private sector participation in driving large-scale job creation. Future discussions, including those scheduled in Bangkok, will focus on mobilising investments in sectors such as infrastructure, agriculture, healthcare, tourism, and manufacturing, areas less vulnerable to automation and global trade disruptions. "The problem is, we can't do this alone. We've got to get this snowball to roll downhill, gathering a lot of snow as it goes along, to reach that amazing number of 800 million," he said.
