Over the next decade, 1.2 billion young people in developing countries will become working-age adults, making job creation an urgent priority. Competitive, efficient markets foster economic transformation and job creation.
But growth by itself is not enough. Patterns of growth and trends in income inequality also matter. In countries afflicted by slow growth and pervasive poverty, for instance, poverty declines when growth patterns become more labor intensive and when poor people’s work becomes more productive. Incomes rise when employment shifts from informal to formal arrangements.
Achieving the Bank’s goal or ending extreme poverty will require developing countries to expand market opportunities, enable private initiative, and develop dynamic economies. The private sectors in lower- and middle-income countries and in fragile and conflict-affected states will need to be more dynamic in identifying opportunities, competing and innovating, and creating jobs. They cannot do it alone. Governments will need to ensure economy-wide incentive frameworks for broad-based growth and to improve the business climate and human capital.
Last Updated: Sep 07, 2025
