111th Meeting of the Development Committee - April 24, 2025 - Statement by Dr. Muhammad Al-Jasser

Jul 19, 2026

Upload by Hazel

Statement by Dr. Muhammad Al-Jasser, Chairman of the Islamic Development Bank (IsDB) Group, delivered at the 111th meeting of the Development Committee on April 24, 2025, in Washington, DC. The address highlights heightened uncertainty after recent global disruptions and outlines how developing economies face constrained investment, reversals in social outcomes, and dominant downside risks from debt, geopolitical tensions, and trade fragmentation. It emphasizes bold structural transformation and global cooperation, with a focus on enabling private sector growth, expanding jobs through human capital, city empowerment, and MSME support, and concludes with commitments to inclusive, resilient development.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages3

Reading Time8 min

Introduction

Navigating Global Risks and Development Reversals

Enabling the Private Sector for Growth and Resilience

Powering Jobs: Responding to the Global Employment Challenge

Concluding Reflections

Public Disclosure Authorized Public Disclosure Authorized DEVELOPMENT COMMITTEE (Joint Ministerial Committee of the Boards of Governors ofthe Bank and the Fund on the Transfer of Real Resources to Developing Countries) ONE HUNDRED AND ELEVENTH MEETING WASHINGTON, DC – APRIL 24, 2025 DC/S/2025-0014 April 24, 2025 Statement by Dr. Muhammad Al-Jasser Chairman Islamic Development Bank (IsDB) Group Statement by Dr. Muhammad Al-Jasser Chairman Islamic Development Bank (IsDB) Group 111th Meeting of the Development Committee April 24, 2025 Washington, DC Introduction On behalf of the Islamic Development Bank Group, I would like to express my appreciation to the World Bank and International Monetary Fund (IMF) for the invitation to participate in the 111th meeting of the Development Committee. We convene at a moment of heightened uncertainty and subdued global prospects. The aftershocks of recent global disruptions—from the COVID-19 pandemic and regional conflicts to rising global interest rates—continue to constrain growth and test the resilience of economies, particularly in the developing world. These shocks have not only derailed progress toward development goals but have also exposed the fragility of social systems, fiscal buffers, and economic resilience. Navigating Global Risks and Development Reversals The path to recovery remains uneven. Many developing countries, especially those with fragile economies, face constrained investment, eroding social spending, and heightened vulnerability. Gains in education, health, and livelihoods are at risk of reversal—especially in low-income and conflict-affected settings. Furthermore, downside risks continue to dominate the global outlook. Geopolitical tensions, trade disruptions, growing debt distress, and a weakening multilateral consensus threaten to fracture the global economy. The resurgence of protectionist industrial policies and fragmentation of trade pose real risks, particularly for emerging economies striving to diversify and ascend global value chains. What is required now is not just stabilization—but bold structural transformation anchored in global cooperation. Enabling the Private Sector for Growth and Resilience Private sector development is at the heart of inclusive growth and poverty reduction. Across developing economies, the private sector provides nearly 90% of employment. Yet its potential remains underleveraged due to institutional bottlenecks, infrastructure deficits, and limited access to finance. Unlocking this dynamism demands systemic reforms to reduce transaction costs, remove market distortions, and build investor confidence. Governments must establish enabling ecosystems through strong legal frameworks, transparent policies, and investment in reliable infrastructure. Public-private partnerships (PPPs) can be powerful tools in mobilizing private capital, especially in fiscally constrained environments. Blended finance, credit enhancements, and Islamic finance instruments can further catalyze private sector participation in frontier markets. But enabling the private sector means more than financial mobilization—it means shaping systems that direct capital to innovation, resilience, and inclusive opportunity. Powering Jobs: Responding to the Global Employment Challenge The job creation imperative is urgent. In the Global South alone, 1.2 billion young people will enter the workforce over the next decade, but only 420 million jobs are expected to be created. The risks of exclusion, instability, and generational disillusionment are profound. To address this, we must pursue a threefold strategy: 1. Invest in Human Capital: Education, health, and job-relevant skills are the foundation of future-ready economies. Learning poverty must be tackled head-on. 2. Empower Cities: Urban areas must be enabled as hubs of innovation, enterprise, and job creation through infrastructure and digital connectivity

FAQs

What major challenges does the statement identify for developing economies?

It points to heightened uncertainty from global disruptions, constrained investment, erosion of social spending, and increased vulnerability. It also warns that downside risks such as debt distress, geopolitical tensions, and trade disruptions threaten development progress.

How does the statement propose enabling private sector growth and resilience?

It calls for systemic reforms to reduce transaction costs, remove market distortions, and build investor confidence. It also highlights enabling ecosystems through strong legal frameworks, transparent policies, reliable infrastructure, and tools such as PPPs and blended finance, including Islamic finance instruments.

What three-part strategy does the statement recommend to address the employment challenge?

The statement recommends: investing in human capital (education, health, job-relevant skills), empowering cities as hubs of innovation and job creation, and scaling support for MSMEs by expanding access to finance, technology, and market linkages.

Jul 19, 2026

Upload by Hazel