Washington, April 10: Ajay Banga, President of the World Bank, has praised India’s cooperative sector as a remarkable model for global development. He emphasized that job creation should be at the core of development strategies worldwide.
Speaking at the Atlantic Council ahead of the annual Spring Meetings of the World Bank and the International Monetary Fund, Banga stated that development efforts should shift focus from isolated projects to significant outcomes centered on employment and economic opportunities.
“Development is not charity. It is a strategy. Creating jobs is essential for maintaining growth and stability,” he remarked.
Banga highlighted a significant demographic challenge, noting that 1.2 billion young people are expected to reach working age in the next 15 years, while job creation is likely to remain limited. He stressed the importance of providing these youths with employment opportunities, stating that jobs offer individuals dignity and hope.
To promote job creation, Banga outlined a three-part framework based on infrastructure development, business-friendly governance reforms, and access to catalytic finance.
The first pillar focuses on physical and human resource infrastructure, including roads, energy, education, and healthcare services. The second pillar emphasizes reforms that assist businesses of all sizes in operating and expanding. The third pillar concentrates on financial instruments, such as blended capital and insurance mechanisms, to encourage investment.
Additionally, he identified five key sectors for job creation: infrastructure, agriculture, primary healthcare, value-added manufacturing, and tourism.
Banga cited India’s dairy cooperative model as a successful example of how technology and organization can transform rural livelihoods. “Having grown up in India, I have seen how cooperative structures in the dairy sector have helped small producers access better markets and pricing,” he noted.
He warned that failing to create sufficient job opportunities could lead to far-reaching consequences, including increased migration pressure and social instability. He connected the lack of jobs to significant global challenges, asking, “Consider the impact if 800 million people are deprived of hope and dignity.”
Banga emphasized that development strategies should be tailored to the circumstances of each country, particularly those that are vulnerable or conflict-affected. However, he maintained that the overall framework remains consistent. Governments play a crucial role in creating a conducive environment for business while ensuring necessary regulatory safeguards.
He stated that the World Bank is shifting its focus from project numbers and financing volumes to measurable outcomes. “I am trying to move from inputs to outcomes, which are jobs and growth,” Banga said.
He also highlighted the importance of transparency and accountability in development efforts, asserting that results must be visible and measurable.
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