A new study by IFC, a member of the World Bank Group, finds that much-needed jobs in developing countries can be created at a faster rate if policymakers and development institutions make it a priority to remove the key obstacles to growth that
private-sector companies face.
The study, “Assessing Private Sector Contributions to Job Creation,” concludes that four obstacles pose a particular challenge to job creation in the private sector: a weak investment climate, inadequate infrastructure, limited access to finance for micro, small, and medium enterprises; and insufficient training and skills. Removing these obstacles
can significantly increase job creation.
The study was released yesterday as a companion report to the World Bank’s World Development Report 2013 on Jobs that was released last October. In a joint communiqué issued at the launch, several leading international finance institutions immediately pledged to work together to address job creation, and learn from each other’s experience.
600 million jobs need to be created by 2020 in the developing countries
About 200 million people are unemployed globally. The World Bank estimates that 600 million jobs must be created by 2020, mainly in developing countries, just to keep up with population growth. The answer lies with the private sector, which provides nine out of every 10 jobs.
“Joblessness is a global crisis that is especially urgent in the poorest
countries,” said Jin-Yong Cai, IFC’s Executive Vice President and Chief
Executive Officer. “As the world’s largest development institution focused
on the private sector, we believe that job creation offers the surest path
out of poverty. Promoting it in developing countries is a top priority for