1.2 Billion Youngsters Will Compete For 400 Million Jobs!: Ajay Banga, Nandan Nilekani On Job Crisis

Summary

The conversation focuses on addressing global youth unemployment in emerging markets, with a special emphasis on creating jobs through infrastructure, small businesses, and technological innovation. Key sectors like primary healthcare, agriculture, tourism, and value-added manufacturing are explored as potential job creators. The discussion also touches on leveraging AI to enable job creation and entrepreneurship, highlighting efforts to empower individuals with digital tools like mobile banking and ID systems to build businesses. The goal is to create sustainable job opportunities and economic growth in developing economies.

Takeaways

• 😀 Focus on job creation is central to the strategy, especially for young people in emerging markets, with an estimated 1.2-2 billion youth entering the job market over the next 12-15 years.
• 😀 The challenge is significant: only 400 million jobs are projected to be available in these economies, creating a gap of 800 million job opportunities.
• 😀 Jobs are crucial for generating optimism and energy, and the creation of employment drives societal progress, benefiting both the present and future generations.
• 😀 President Thurman is actively working on strategies to create jobs for young people, contributing his expertise and commitment to the cause.
• 😀 The importance of infrastructure (both physical and human capital) and the right policies for business growth is highlighted, with government playing a role in enabling the private sector.
• 😀 The private sector, especially small and micro-enterprises, is key to creating jobs. Catalytic financing can drive job creation by supporting these businesses.
• 😀 The Jobs Council focuses on five key sectors: infrastructure, primary healthcare, agriculture, tourism, and value-added manufacturing as avenues for job creation.
• 😀 The strategy avoids relying solely on outsourcing jobs from developed countries and aims to leverage local growth through sectors with high job creation potential.
• 😀 Small AI, such as localized technologies on phones and computers, is considered a powerful tool for improving efficiency in sectors like agriculture, healthcare, and education.
• 😀 Structured opportunities, like providing IDs, bank accounts, and access to digital services, are essential for fostering entrepreneurship and empowering people to create jobs.
• 😀 Aggregating small producers through digital networks and providing them with access to credit, markets, and systematic resources can significantly boost entrepreneurship and job creation.

Q & A

What is the central focus of the discussion in the script?

The central focus is on the creation of jobs for young people, particularly in emerging markets, and the steps required to tackle the challenge of job creation through infrastructure, human capital development, business-friendly policies, and catalytic financing.

What is the significance of President Thurman in this conversation?

President Thurman is highlighted as a key figure who has played a pivotal role in supporting job creation initiatives, especially for young people in emerging markets. His involvement is central to the discussion about creating the right conditions for job growth and entrepreneurship.

How many young people are expected to enter the job market in the next 12-15 years in emerging markets?

Over the next 12 to 15 years, 1.2 to 2 billion young people in emerging markets will become eligible for jobs, but the economies are projected to produce only about 400 million jobs, creating a significant employment gap.

What role does AI play in the job creation strategy discussed?

AI, particularly small AI systems delivered locally, is seen as a tool that can enhance productivity in sectors like agriculture, healthcare, and education. The focus is on using AI to empower workers, such as farmers and healthcare professionals, with tools that help them do their jobs more efficiently rather than replacing them.

Why is outsourcing from developed markets not the primary strategy for job creation in emerging markets?

Outsourcing jobs from developed markets is avoided because of the unpredictable nature of geopolitics, trade models, and technological disruptions. The focus is instead on sectors that can create jobs locally through sustainable, domestic growth.

What are the five key sectors identified for job creation?

The five key sectors for job creation are: 1) Infrastructure, 2) Primary healthcare, 3) Agriculture for small farmers, 4) Tourism, and 5) Value-added manufacturing.

How does the proposed primary healthcare model aim to improve job creation?

The proposed model aims to create a distributed network of physical and digital clinics that connect nurses, midwives, medical diagnostic technicians, and doctors, optimizing resources and improving the quality of healthcare in underserved areas, which could also lead to job creation in these sectors.

What is the specific focus on agriculture within the job creation strategy?

The strategy focuses on improving the livelihoods of small farmers by providing them with access to scalable pricing, commodities, markets, and technology. This aims to prevent them from selling their farms and becoming urban poor, while also boosting local job creation.

How is technology being used to support small businesses in India?

In India, technology is being used to create structured opportunities for entrepreneurship by providing individuals with IDs, bank accounts, mobile connections, and access to digital payments. This allows small businesses to access loans, grow, and potentially create more jobs in the future.

What is meant by aggregating small producers through digital networks?

Aggregating small producers refers to using digital networks and open platforms to bring together smaller retailers, giving them access to credit, markets, and other resources that they otherwise wouldn't have. This approach helps small producers become more competitive and scalable.