COLOMBO (News 1st); World Bank President Ajay Banga has stressed on the urgent need to create opportunities for a rapidly growing young population, warning that the ability of developing countries to generate productive employment will determine whether a historic demographic shift becomes an economic advantage or a missed opportunity.
Speaking on the future of jobs and artificial intelligence in emerging markets, Banga noted that approximately 1.2 billion young people will reach the age of 18 over the next 15 years, describing the figure as a potential demographic dividend if governments and institutions succeed in providing them with the foundations needed to thrive.
“1.2 billion young people in the coming 15 years are going to become 18 years of age,” he said, adding that the opportunity can only be realized if young people have access to clean water, clean air, healthcare, education and skills development while growing up, followed by meaningful economic opportunities once they enter adulthood.
Banga stressed that employment should be viewed more broadly than simply working for a company or starting a business. He said being productive in society provides individuals with optimism, dignity and a sense of purpose, making job creation one of the most important priorities for policymakers around the world.
The World Bank, he said, has increasingly centered its development agenda on creating employment opportunities, while continuing to invest in schools, healthcare facilities, highways and skills training programmes. However, he noted that such investments must ultimately contribute to expanding economic opportunities and improving livelihoods.
According to Banga, sustainable job creation depends on a combination of strong physical and human infrastructure, effective governance, sound policies and the ability to attract private investment. He emphasized that governments play a critical enabling role, but it is the private sector that generates the majority of employment opportunities.
“Private capital creates jobs,” he said, noting that between 75 and 85 percent of jobs in most countries are created by the private sector.
Addressing concerns about artificial intelligence, Banga drew a distinction between debates in advanced economies and the realities facing emerging markets. While discussions in wealthier countries often focus on the potential displacement of workers by large language models, he said developing nations stand to benefit significantly from practical AI applications designed to improve productivity.
He highlighted the potential of what he described as “small AI” solutions to strengthen education, healthcare and agriculture, particularly in developing economies where access to technology can help schools, health systems and small-scale farmers achieve greater efficiency and scale.
Banga said the World Bank is placing particular emphasis on expanding the use of such technologies across emerging markets, arguing that AI should be viewed not merely as a disruptive force but as a tool capable of boosting productivity and expanding economic opportunity.
“The rollout of small AI into the emerging markets as a productivity enhancer” is a key priority, he said, describing technology-driven productivity gains as an important component of future economic growth and job creation across the developing world.
