ROMA (ITALPRESS) – “The world is not facing a shortage of young people ready to work. It is facing a shortage of jobs ready to absorb them. In the next decade, some 1,2 billion young people will enter the world of work in developing countries, far exceeding the present rate of job creation. Africa alone will host a quarter of the world’s youth population by 2050. If this demographic transformation becomes a dividend or a source of instability will depend on our ability to create sufficient jobs.” Thus the governor of the Bank of Italy, Fabio Panetta, on the occasion of a conference organized by the World Bank and the Presidency of the Council of Ministers. “Employment – he added – is not just a development priority. It is a pillar of economic stability and social cohesion.”.
“In the last three decades, globalization has helped reduce poverty by expanding economic opportunities and creating jobs in large parts of the world. However, this progress was fragile,” he observed.
According to Panetta “the first countries must strengthen the very foundations of growth, in particular infrastructure and human capital. In developing economies, the infrastructure financing gap exceeds 4% of the annual GDP, with energy and transport among the most binding constraints. Secondly, the quality of regulation forms the behaviour of the private sector: better regulation of enterprises stimulates the entry of enterprises, investments and growth of employment. These two pillars are complementary. Infrastructure investments without legal certainty are struggling to attract long-term funding; at the same time, a regulatory reform without an adequate physical and human capital produces only limited employment gains. Aligning the two is essential to build resilient and inclusive growth,” he concluded.
-Photo IPA Agency-
(ITALPRESS).
