Ajay Banga, president of the World Bank, has decided to put employment at the center of its strategy to combat poverty. This was stated in his speech this Friday at the plenary session of the annual meetings of the International Monetary Fund (IMF) and the World Bank (WB) being held this week in Washington. “The World Bank Group is prepared to embark on the next phase of our mission: Ensure that job creation – and employment – ​​are not a by-product of our projects, but rather an explicit objective of them,” he said.

The projects financed by the World Bank focus on issues such as education, food security, infrastructure, digitalization and the fight against climate change. When they get going, they generate activity and employment, but that was given more as an addition, not as an explicit objective in itself. That is the change that Ajay Banga wants to make.

“Throughout the history of development, employment has proven time and again to be the surest and most lasting panacea against poverty,” he said. “A job is more than a source of income; It brings dignity, a sense of purpose and elevates the spirit and human condition. Jobs are the key to unlocking potential. “They provide a path out of poverty, empower women, give hope to younger generations and build stronger communities,” he added.

The World Bank’s sights are set above all on young people. Ajay Banga has referred to an immense generation of 1.2 billion young people about to join the workforce in emerging economies. However, it is only projected to produce 420 million jobs. “The specter of unemployment hangs over 800 million young people without meaningful employment, threatening to destabilize societies and hinder economic growth,” the president of the World Bank has warned, highlighting that forecasts are not destiny.

The organization has launched a specific initiative aimed at generating employment for young people. Tharman Shanmugaratnam, president of Singapore, and Michelle Bachelet, former president of Chile, are leading that effort with a group of business, civil society and academic leaders, who have met for the first time this week in Washington.

“This approach is necessary because jobs are not created in isolation. They require a marriage between preparing people and preparing opportunities, because although talent is everywhere, opportunities are not. This marriage is based on fundamental pillars that the World Bank is deeply committed to supporting: health, infrastructure, education and training, food security, clean air and clean water,” indicated the president of the World Bank.

The reform of the bank

Ajay Banga took office 16 months ago and launched a plan to reform the organization to be more effective and have greater impact, as announced at last year’s annual meeting in Marrakech (Morocco).

For now, the World Bank has reduced the project approval period from 19 to 16 months on average. Its goal is to reach 12 months in June 2025. At the same time, it is trying to simplify its organization. For example, by unifying many administrative functions – budgeting, corporate purchasing and real estate – you can deliver services more quickly and function better as a Group. In fact, it is developing a unified country partnership framework, appointing joint country heads representing all agencies in the group. It has already taken that step in 21 countries and plans to do so soon in another 20.

In parallel, it is trying to strengthen ties with other multilateral development banks. In the last year, the World Bank has formalized partnerships with five other institutions. “We work together on everything, from the Amazon with the IDB to cross-border trade with the ISDB, to strengthening health services with the AIIB. Looking ahead, we will soon finalize an agreement with the Asian Development Bank that will bring new efficiencies to our clients,” said Ajay Banga.

In addition, it has created an online platform that allows development institutions to share projects for co-financing and discuss them securely and transparently. This new platform allows us to reduce administrative burden and transaction costs, better coordinate financing and, ultimately, achieve greater development impact. “In just six months, we have 100 projects in the pipeline and some are beginning to be financed,” said the president of the World Bank.

At the same time, the World Bank has placed emphasis on the impact of its programs, simplifying the reference indicators and measures in this regard. It also wants to be bigger, through new financing and replenishment of resources of the different organisms that are part of the group.

“Our mission requires unwavering resilience, an insatiable will to continue moving forward despite time, setbacks and challenges. I hope that as we move forward, our ideas will lead us to action, which in turn will change lives. That’s why we are here,” concluded Ajay Banga.