UNDP Launches Global Initiatives to Tackle Developing Economies’ Employment Gap

UNDP Administrator Alexander De Croo said developing countries have considerable economic potential and ambitious plans for growth and job creation.

The United Nations Development Programme has launched two global initiatives designed to help developing economies attract more investment, strengthen businesses and turn economic growth into better employment opportunities. Announced during the 2026 IMF-World Bank Group Annual Meetings in Bangkok, the Investment Accelerator and Jobs for Prosperity Facility will bring together UNDP's development experience with expanded partnerships involving the World Bank Group, the European Investment Bank and the European Bank for Reconstruction and Development.

The programmes arrive at a critical moment for labour markets across developing countries. Around 1.2 billion young people are expected to enter the workforce during the next decade, but current projections suggest only about 400 million jobs will be created. Bridging a gap of this scale will require countries to attract much larger volumes of productive investment and build stronger connections between economic policies, finance, private businesses, workforce skills and employment opportunities.

UNDP Administrator Alexander De Croo said developing countries have considerable economic potential and ambitious plans for growth and job creation. He said the new initiatives are designed to connect national priorities with the finance and expertise needed to deliver practical results, supporting stronger companies, better-paid employment and higher incomes through cooperation among governments, development banks and private investors.

Investment Accelerator to Help Countries Turn Projects Into Productive Businesses

The Investment Accelerator will support governments in creating stronger conditions for domestic and international investment, including improvements to policies and regulations, development of investment-ready projects and closer engagement with potential investors. It will also help countries create project pipelines and move viable opportunities beyond the preparation stage into implementation, where investment can expand businesses and productive capacity.

The Jobs for Prosperity Facility will concentrate directly on employment creation by identifying industries with strong potential to generate jobs, connecting workforce skills with the needs of employers and addressing barriers that discourage companies from investing or hiring. Sector-specific investment pipelines will also be developed to create a stronger link between incoming capital and opportunities for better-paid work.

Both initiatives build on UNDP's existing financing work across more than 100 countries. The organisation has identified more than 700 Sustainable Development Goal investment opportunity areas in over 50 countries, and since 2022, UNDP-supported activities have helped align or leverage more than $920 billion in public and private finance towards the SDGs.

World Bank, EIB and EBRD Partnerships Bring Finance and Expertise Together

Partnerships with major development banks are expected to play a central role in scaling the programme. UNDP recently signed a Cooperation Framework with the World Bank Group focused on mobilising development finance and expanding solutions that support jobs and economic growth. Pilot activities are already underway in Nepal, Yemen, Haiti, Lebanon and Ghana, where work is focusing on policy and governance reforms that can create stronger conditions for private investment.

UNDP is also set to sign memoranda of understanding with the EIB and EBRD during the Annual Meetings, expanding cooperation on investment and development priorities. The approach builds on existing partnerships, including cooperation with Generali and work with Italy and Cassa Depositi e Prestiti through the Platform for Investment Support and Technical Assistance, known as PISTA, which helps countries transform national development priorities into investment-ready projects.

Combining UNDP's relationships with governments, policy knowledge and implementation capacity with the financing, transaction and risk-sharing expertise of development institutions is expected to help countries mobilise larger investments and connect those flows more directly with economic growth and employment.

Insurance and Risk Protection Could Unlock Investment in Vulnerable Economies

Risk management was another major focus at the high-level dialogue where the initiatives were launched. The discussion was co-hosted by the Office of the Italian Executive Director at the World Bank Group and Generali, with World Bank Group President Ajay Banga delivering opening remarks and UNDP Administrator Alexander De Croo, Generali Chairman Andrea Sironi and Thailand's Vice Minister of Finance Dr. Santitharn participating.

Asia's experience illustrates the scale of the protection gap. Natural catastrophes caused around $65 billion in economic losses across the region in 2025, but only $5 billion was insured, leaving governments, businesses and households to absorb about 92 percent of the losses. Stronger insurance and risk-financing systems can help companies recover after disasters, protect government budgets and make investment in vulnerable economies less risky.

UNDP and Generali have worked together since 2022 on small-business resilience in Asia, sovereign risk-financing solutions in Viet Nam and coffee value-chain resilience in Uganda alongside UNIDO. Their cooperation also covers insurance innovation, research and risk-management tools for smaller businesses, with the partnership renewed in 2025 for another three years.

The Investment Accelerator and Jobs for Prosperity Facility form part of five new UNDP corporate flagship initiatives supporting the organisation's Strategic Plan for 2026–2029, placing investment, business development and job creation at the centre of its push for more inclusive economic growth.