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The jobs challenge is bigger than ever in the poorest countries

Akihiko Nishio's picture
Researchers at the CSIR-Crops Research Institute (CSIR-CRI) in Ghana. © Dasan Bobo/World Bank 
Researchers at the CSIR-Crops Research Institute (CSIR-CRI) in Ghana. © Dasan Bobo/World Bank 

Over the next decade, close to 600 million people will be looking for jobs, mostly in the world’s poorest countries. The South Asia region alone will need to create more than 13 million jobs every year to keep pace with its demographics. In Sub-Saharan Africa, despite a smaller population, the challenge will be even greater—15 million jobs will need to be created each year.
 
Adding complexity, the jobs challenge is also a concern for today. Many people in poorer countries who do work are stuck in informal, low-paying, less productive jobs, which are often outside the formal and taxed economy. And as the trends of urbanization continue, scores of internal migrants are searching for work, but can’t find quality, waged jobs, nor do they have the skills demanded by the markets. As a result, too many people are left on the economic sidelines and are limited in what they can contribute to their countries’ growth.  

Creating productive and meaningful jobs for this burgeoning workforce requires economic growth and transformation—moving workers from lower to higher productivity activities—led by a vibrant private sector and supported by public policy actions. To accelerate economic transformation, countries need to connect to markets through sound infrastructure and value chains, build workers’ skills and firms’ capabilities, and create an environment that facilitates private investment. This transformation also needs to be inclusive, with opportunities for all - women, youth, and the disadvantaged groups.

The International Development Association (IDA), the arm of the World Bank Group that works with the poorest countries, has been at the forefront of supporting countries’ efforts to create jobs. In fact, we’ve made jobs and economic transformation a special focus under IDA18—our current three-year funding cycle, which runs through mid-2020. IDA18 is funding innovative jobs-focused projects, using financial instruments and enhanced analytics, and applying new tools to evaluate and measure jobs impact.

IDA18 is supporting projects that build infrastructure, global value chains, regional integration and technology. For example, IDA’s support to the West Africa Power Pool, including solar power in the Sahel, is providing critical energy infrastructure and promoting regional power trade to supply electricity to millions of industries and households in West Africa. In Côte d’Ivoire, IDA is connecting smallholder famers to global markets, raising agricultural productivity and generating jobs. And in Kenya, IDA is helping to build workers’ and firms’ capabilities to make small and medium businesses more innovative and productive.

IDA18 interventions are also improving the enabling environment for economic transformation. IDA18’s support for regulatory reforms and infrastructure development in Ethiopia is improving the investment climate and supporting the government’s ambitious reform programs, while dedicated development policy support focused on jobs is helping Bangladesh implement reforms to improve trade and investment environment, strengthen workers protection, and improve access to jobs for women and youth.

Putting the private sector at the center of the jobs and economic transformation, IDA is linking its work with IFC and MIGA, two arms of the World Bank Group that focus on the private sector and promote foreign direct investment in emerging markets. IDA’s Private Sector Window (PSW) has committed $185 million to 13 projects, many of which are in fragile states. This funding from IDA is enabling $600 million from IFC and MIGA and mobilizing another $800 million from private investors. The PSW window is supporting small and medium size enterprises (SMEs) through innovative ways, such as a risk-sharing facility to extend bank lending to underserved SMEs, equity investment in SME funds, and local currency solutions.

Also, recognizing the potential of digital technology, IDA is supporting the World Bank Group’s ambitious “digital moonshot for Africa” initiative to digitally enable every person, business and government in Africa by 2030. With public and private partners, we are building the foundations of the digital economy, which rest on digital infrastructure, skills, platforms, financial services and entrepreneurship.

Overall, IDA is investing in people—building countries’ human capital—by putting in place the foundations for good health, education and social protection systems, as these are fundamental to the jobs and economic transformation agenda.

Our diagnostics show common challenges across IDA countries. Investments and jobs are concentrated in narrow urban centers, leaving gaps in the overall regional development. Large segments of the population, including women, people with disabilities, and other disadvantaged groups, aren’t economically active. IDA’s interventions are tackling these related issues—women in the labor force, regional trade and integration, climate-smart urbanization and infrastructure, better governance, and migration.

The jobs and economic transformation agenda is complex and will require a long-term, sustained commitment to deliver needed outcomes. Even as we work to make an impact today with IDA18, we are already thinking ahead about how to best continue this work into IDA19, our forthcoming replenishment cycle from 2021–23.

This is why together with United Nations Economic Commission for Africa (UNECA), we are meeting policymakers and practitioners in Addis Ababa on March 5, 2019, to discuss countries’ efforts and emerging priorities. Strengthening our partnerships with country and regional leaders and working together on this agenda will amplify our collective impact for creating lasting economic development.

The jobs challenge over the next decade is clear and immense, and the stakes could not be higher. Success will mean creating quality, productive jobs for hundreds of millions more people, building a better economic future for countries, and giving individuals the opportunities they seek to lift themselves out of poverty. IDA is committed to that success.

Comments

Submitted by Maria-Teresa Lepeley on

Job creation will certainly be a major challenges in the next decade, but consideration and optimal alignment of the following factors will determine and be essential for progress and sustainability:
- intensive efforts to promote entrepreneurial development. This is urgent to compensate for deep changes in the private sector and decreasing hiring by large corporations at global scale due to deeper economic transformation in developing and developed countries imposed by technology, connectivity and outsourcing.
- Overall job creation and increased employment will be contingent with effective alignment of the EDUCONOMY with EDUQUALITY. This argument is based on increasing evidence that the main problem to solve worldwide is not income inequality, but education inequality. Lack of quality education for all is the key factor in job creation.
Closing the economy / quality education gap is critical to generate stimulating jobs leading to wellbeing of people, sustainable growth and inclusive societies.
"Innovative" schools of education will be at the forefront and must be prepared to assume a most important challenge and responsibility in this transformation.
Details how to achieve these parallel objectives in the books with the same titles in Information Age Publishing.

Submitted by Angapat Raghu Menon/Neeraja R Menon on

The poorest countries always strugling for the job creation for the educated and non educated People. First of all the Infrastructure development is needed, The Poorer countries should be more elobarate to allow forgine countries should be invest in the infrastructure development in the west Africa region. The development will take right time when the Govt: should make a effert in the make of Private Public participation(PPP), this will make more job opertunies and infrastructure developments. The job should be making in the region for the local people should be benifited, it will make the eliminating of Poverty in this region and the some extent will make job opertunity for the skilled and non skilled employes. But another grip is in the South Asia the seen is deffrent Pakistan, Bungladesh are among the Population is very high and the poverty is much higher in the region. The investers are the among superior in the Asia region, there are no job guarenty, infra structure development is very high compare to West african region, some is developed and developing countries are the benifiters of the Europian countries in South asia. But India is funded By World Bank for the elimination of the Poverty by the former Exllencey World Bank President. His resigenation makes a big gap for the Africa and the South Asia. But I dont know that how far his ambetion will make full fill of eliminating poverty by 2030.

Submitted by AMANOR AFARI DANIEL on

It seems easier to say but political leaders mostly don't plan well towards such derams of energetic youth in their countries

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