WASHINGTON—Global finance officials gathering this week for the spring meetings of the International Monetary Fund and the World Bank are confronting immediate geopolitical risks, but a far larger long-term challenge looms: a massive shortfall in jobs across developing economies, according to World Bank President Ajay Banga.
In an interview with Reuters, Banga said as many as 1.2 billion people in developing countries are expected to reach working age over the next 10 to 15 years, while current projections show those economies will generate only about 400 million jobs—leaving a gap of roughly 800 million.
Banga said the scale of the challenge risks being overshadowed by more immediate crises, including the ongoing conflict in the Middle East, which is expected to dominate discussions in Washington and could weigh on global growth and fuel inflation.
‘Walk and Chew Gum’
“We have to walk and chew gum at the same time,” Banga told Reuters, emphasizing the need for policymakers to address both near-term economic shocks and longer-term structural issues such as employment, access to electricity and clean water.
The spring meetings are taking place amid heightened geopolitical tensions, including a fragile ceasefire between Israel and Iran following recent hostilities. While the truce has reduced direct attacks, disruptions to global energy markets—particularly linked to the Strait of Hormuz—continue to pose risks to the global economy, Reuters reported.
Despite those concerns, Banga said officials must remain focused on policies that can spur job creation in developing markets. The World Bank’s Development Committee is expected to discuss reforms aimed at improving business conditions, including streamlining permits, strengthening anti-corruption measures, and addressing barriers tied to labor laws, land use and trade systems.
Far-Reaching Consequences
Banga said failure to address the employment gap could have far-reaching consequences, including increased migration and instability. United Nations data show more than 117 million people were displaced worldwide as of 2025.
“I don’t know that you can ever get to a situation of utopia,” Banga said, according to Reuters. “But if you don’t do it, the implications are quite severe.”
He pointed to growing multinational activity by companies based in developing economies—such as India’s Reliance Industries and Mahindra Group, as well as Nigeria’s Dangote Group—as a sign of potential momentum.
Clean Water Also a Focus
In addition to employment, Banga said expanding access to clean water will be a major focus, with development banks preparing a new initiative aimed at reaching one billion more people. That effort would complement existing programs to expand electricity access to 300 million households in Africa and improve healthcare systems.
Looking ahead, Banga said the World Bank will continue emphasizing the role of private sector investment, particularly in sectors less exposed to global trade disruptions or advances in artificial intelligence. These include infrastructure, agriculture for small farmers, primary healthcare, tourism and value-added manufacturing.
