Bangkok – The United Nations Development Programme (UNDP) unveiled a suite of new initiatives aimed at drawing investment and creating jobs in the world’s poorest nations. Speaking on the sidelines of the International Monetary Fund and World Bank meetings, UNDP Administrator Alexander De Croo said the agency is deepening cooperation with the World Bank, the European Bank for Reconstruction and Development, the European Investment Bank and a range of private investors.
Partnerships to unlock capital
De Croo explained that the UNDP will work with these partners to develop investment‑friendly policies, build project pipelines and move proposals to implementation. The goal is to make developing economies more attractive to investors while aligning projects with sectors that have strong job‑creation potential.
Reforms and rule‑of‑law needed
According to De Croo, progress on governance, rule of law and domestic revenue collection has stalled since the COVID‑19 pandemic. He urged governments to undertake reforms that improve transparency and fiscal discipline, noting that such steps are essential for unlocking the new financing streams.
Energy costs and climate challenges
Developing countries are grappling with soaring energy prices, rising interest rates and the most severe El Niño event since 1950. While many nations have used fuel subsidies to shield citizens from price shocks caused by the war in the Middle East, those measures are draining fiscal buffers. De Croo said UNDP is helping 46 countries design targeted subsidies that are less costly and more sustainable.
Job gap looming
The UNDP warned that roughly 1.2 billion young people will enter the global labor force over the next decade, yet only about 400 million jobs are projected to be available. One of the new initiatives will focus on improving investment regulations and accelerating project pipelines; the other will match skills with employer demand and remove barriers to business hiring.
Pilot projects and insurance innovation
UNDP already has pilot programs underway in Nepal, Yemen, Haiti, Lebanon and Ghana, leveraging its partnership with the World Bank. It is also collaborating with Italy’s Generali to expand insurance coverage for developing nations, a move De Croo said could help manage risk from natural catastrophes. In 2025, Asian disasters caused $65 billion in economic losses, of which only $5 billion was insured.
Looking ahead
De Croo emphasized that while debt‑relief measures are premature, addressing liquidity needs and stabilizing energy markets are prerequisites for any solvency discussions. He called for an end to ongoing conflicts in the Gulf region and Ukraine, noting that sustained wars threaten the flow of aid from Gulf donors and other supporters.
These UNDP efforts reflect a broader shift in how development is financed, moving away from traditional aid toward blended finance models that involve multilateral banks, regional institutions and private capital. The agency hopes the new partnerships will create a more resilient investment environment, generate jobs for millions of young people and help vulnerable economies weather future shocks.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
