Ajay Banga, the President of the World Bank Group, has announced that a “Jobs-Focused Strategy” will be the central theme for the upcoming 2025 Spring Meetings of the World Bank Group (WBG) and the International Monetary Fund (IMF), scheduled to take place from April 21 to 26, 2025, in Washington D.C. Banga stated that this strategy reflects the World Bank’s “urgency and conviction that development must lead to opportunity.”
Speaking at a virtual press conference on April 16, 2025, ahead of the meetings, Banga revealed that the World Bank is ready to expand its efforts in addressing job creation. He emphasized that more information would be shared during the Spring Meetings about the next phase of the private sector lab. “We’re going to expand its membership to include the sectors that we believe are most critical to job creation, and these are energy and infrastructure, agribusiness, healthcare, tourism, and manufacturing,” Banga explained.
The World Bank has also launched the High-Level Advisory Council on Jobs, co-chaired by Tharman Shanmugaratnam, President of the Republic of Singapore, and Michelle Bachelet, former President of the Republic of Chile. This Council, Banga noted, aims to create more employment opportunities and strengthen efforts to address the global jobs crisis.
Job creation, according to Banga, has become the cornerstone of the World Bank’s development agenda. He underscored that over the next decade, 1.2 billion young people are expected to enter the workforce in developing countries. However, current projections show that these economies are only expected to generate 420 million jobs, creating a significant gap in employment opportunities. “And that gap is not just an economic issue. I think it’s a global risk, because without opportunity, the forces of fragility, of illegal migration, of instability, these forces grow stronger,” Banga warned.
In response to questions about the potential impact of reciprocal tariffs under President Donald Trump’s administration, Banga expressed uncertainty. “I don’t know how to predict the timeline, because what I don’t know is how quickly you get to resolution on some of these specific country-by-country negotiations,” he said. Despite the uncertainty, Banga emphasized the importance of sustained dialogue and negotiation. He added that the quicker countries can resolve such issues, the better, and urged nations to continue engaging in regional and bilateral trade agreements with cooperative partners.
Banga acknowledged that the current geopolitical volatility and uncertainty are contributing to a more cautious investment environment. “I think that’s going to affect how governments and businesses make their investment decisions right now. But meanwhile, interestingly, developing economies are playing a far more central role in global trade than they did, say, two decades ago,” he noted.
He explained that countries dependent on export-led growth, especially those relying on commodities or manufactured goods, are particularly vulnerable to disruptions in global trade. However, Banga emphasized that these countries still have policy tools at their disposal to help navigate uncertainty and build long-term resilience. As an example, he pointed out that many developing countries maintain higher tariffs than their advanced counterparts, especially on key imports.
“I think that creates a real risk of reciprocal tariffs and, most importantly, lost competitiveness. So a broad-based liberalization, not just with favorite partners, can help offset these risks and actually expand market access,” Banga said. He also highlighted that trade among developing nations is on the rise, with nearly half of exports from these economies now going to other emerging markets. Banga noted that more efficient border processes, reduced trade costs, clearer rules of origin, and decreased friction can significantly boost trade volumes while fostering stable and diversified growth.
Despite acknowledging the uncertainty surrounding global economic growth, Banga expressed confidence in the World Bank’s ability to respond to challenges. He drew on the institution’s experience during past global crises, such as the COVID-19 pandemic and the 2008-09 financial crisis, to assure that the Bank, in collaboration with the IMF and regional partners, will continue to provide essential technical support, financing, and infrastructure assistance. These efforts, he said, will enhance productivity and promote trade in emerging markets.
Reflecting on the World Bank’s founding purpose, Banga reminded that the institution was established to foster a more stable and prosperous global economy, with the aim of avoiding conflicts. “This was a charity. It was a calculated investment in the global economic architecture, one that I believe has paid off many times over in these 80 years,” he said. He highlighted the significant work of the Bank’s five arms: the International Bank for Reconstruction and Development (IBRD), the International Development Association (IDA), the International Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA), and the International Centre for Settlement of Investment Disputes (ICSID).
“There’s no other institution that brings all of this together in one place, and that’s what makes the World Bank Group uniquely positioned to support countries and investors across the entire development journey,” Banga emphasized. He went on to assert that the World Bank Group remains a smart investment for governments, taxpayers, and the private sector alike. “We’re on the move. We’re trying to change things here and look to deploy proven tools to unlock growth, to reduce fragility, and generate returns for people, for businesses and for the global economy,” he said.
Reaffirming the World Bank’s commitment to creating meaningful and sustainable employment opportunities, Banga concluded, “The idea is to build a Bank that delivers what is demanded – jobs, because jobs are the best way to drive a nail in the coffin of poverty.”
