Joblessness is global crisis: IFC chief
"As the world's largest development institution focused on the private sector, we believe that job creation offers the surest path out of poverty," said Jin-Yong Cai, IFC's vice president. "Promoting it in developing countries is a top priority for us." The World Bank has estimated about 200 million people globally are unemployed and that 600 million jobs must be created in developing nations by 2020 to keep up with population growth.
The International Labor Organization warned in September that unemployment among young people is likely to rise globally as slow growth in the euro zone and a weak economic recovery in the United States hits emerging economies.
For years institutions like the World Bank and the International Monetary Fund focused on boosting economic growth as a way to spur jobs, but over the years evidence has shown the answer lies with the private sector, which provides nine out of every 10 jobs.
A new jobs study by IFC published on Monday, which looks at the experiences of more than 45,000 firms in over 100 countries in Asia, Africa and the Middle East, found that weak infrastructure, lack of financing for small and medium-sized enterprises, poor training and skills, and weak investment climates posed the biggest obstacles to companies and their efforts to generate
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