World Bank President Ajay Banga warned about the "perfect storm of intertwined challenges that is exacerbating inequality globally: declining progress in the fight against poverty, the climate crisis, food insecurity and conflict."
In a note released on the sidelines of the work of the G20 Economy Ministers underway in Sao Paulo, he stated that one of the best ways to reduce inequality is to promote employment, "however in the next 10 years, 1.1 billion young people in the South of the world will become adults of working age, but in the same period only 325 million jobs will be created."
In this context, Banga argues, the International Development Association (IDA) needs more funding to carry out its mission of helping growth and jobs in developing countries.
"So far, IDA has provided 533 billion dollars to 115 countries. It has lifted entire communities out of poverty, protected children from disease, connected homes to electricity and guaranteed access to water for villages. But the legacy will not change the situation in the challenges today. The truth is that we are pushing the limits of this important concessional resource and no amount of creative financial engineering will make up for the fact that we need more financing," he concluded.
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