NEW YORK: The United Nations Development Programme (UNDP) has launched two global initiatives to encourage investment and expand employment opportunities, warning that 800 million young people could be left without jobs over the next 15 years.
The initiatives, announced by UNDP Administrator Alexander De Croo during the IMF-World Bank Group Annual Meetings in Bangkok, aim to help developing countries attract investment, improve business conditions and create employment opportunities.
The two programmes, the Investment Accelerator and the Jobs for Prosperity Facility, are designed to address investment barriers and strengthen the link between economic growth and job creation.
The Investment Accelerator will support governments in improving investment policies and legal frameworks, preparing projects for investors and moving them towards implementation.
Similarly, the Jobs for Prosperity Facility will help countries identify industries with strong employment potential, equip workers with relevant skills and address obstacles that discourage businesses from investing and hiring.
Speaking at a press briefing, De Croo highlighted the growing gap between the number of young people entering the labour market and the jobs available to them.
He said around 1.2 billion young people would graduate and enter the workforce over the next 15 years. However, only about 400 million jobs are expected to be available, leaving approximately 800 million young people without employment opportunities.
De Croo stressed that the problem would not resolve itself and called for stronger government action. He said countries needed active labour-market policies, investment in employment-generating industries and financing mechanisms that could support job creation despite rapid technological changes.
He also described employment generation as the most sustainable way for people to escape poverty.
Beyond employment, De Croo warned that the global economy’s resilience was uneven. While some countries continued to benefit from strong economic fundamentals and productivity gains associated with artificial intelligence, many developing economies were facing growing financial and economic pressures.
He identified high energy costs, the El Niño phenomenon and elevated borrowing costs as three major challenges affecting developing countries.
The UNDP chief also referred to a report released earlier this week, titled No Time to Recover: Mounting Crises, Eroding Fiscal Buffers and the Implications for Developing Economies.
According to the report, the median developing country spends 9.5 per cent of its total government revenue on interest payments alone. The finding highlights the increasing pressure debt servicing is placing on public finances and the limited fiscal space available to governments.
High interest payments can leave governments with fewer resources to invest in infrastructure, public services and programmes that support economic growth and employment.
De Croo also highlighted findings from the latest Multidimensional Poverty Index, produced by UNDP and the Oxford Poverty and Human Development Initiative at the University of Oxford.
The findings showed that the number of people living in multidimensional poverty worldwide had increased for the first time since 2010.
The index measures poverty beyond income, taking into account disadvantages in areas such as education, health and living standards.
De Croo said the latest figures should serve as a serious warning to governments and international institutions, reinforcing the need for policies that promote inclusive growth, investment and employment.
Through its two new initiatives, UNDP aims to help developing countries turn investment opportunities into operational projects and translate economic activity into jobs. The broader challenge, however, remains ensuring that investment and growth deliver meaningful employment and improved living standards for the millions of young people entering the workforce in the coming years.
FACEBOOK COMMENTS