Key facts
- UNDP is launching new initiatives to attract investment and jobs to developing countries.
- The agency is increasing cooperation with the World Bank and forging new ties with the European Bank for Reconstruction and Development and the European Investment Bank.
- Developing countries face crises including high energy costs, rising interest rates, and the worst El Niño weather effect since 1950.
- UNDP is working with 46 countries to develop targeted subsidies.
- There is a projected job gap of 800 million jobs for young people entering the workforce in developing countries over the next decade.
- Natural catastrophes in Asia caused $65 billion in economic losses in 2025, with only $5 billion insured.
The United Nations Development Programme (UNDP) is launching new initiatives to help developing countries attract investment and jobs amidst a backdrop of escalating global crises and a decline in official development aid. UNDP Administrator Alexander De Croo announced on Tuesday that the agency is strengthening its collaboration with the World Bank and establishing new partnerships with institutions like the European Bank for Reconstruction and Development, the European Investment Bank, and private investors.
De Croo highlighted that while developing nations need to implement reforms to improve governance, the rule of law, and domestic revenues, progress has been hampered by a series of crises since the COVID-19 pandemic. He noted that the financing of development is evolving, and it's crucial to create space for these countries to enact necessary reforms.
The challenges facing developing countries are exacerbated by high energy costs, rising interest rates, and the severe El Niño weather event, which De Croo described as worse in some aspects than the COVID crisis. He cautioned that alarm lights are flashing orange, and continued difficulties could lead to significant trouble for these nations. The UNDP is actively working with 46 countries to develop more cost-effective, targeted subsidy programs.
Many countries are already depleting their fiscal reserves, and the ongoing war in the Middle East poses a risk of reduced aid from Gulf countries and others if the conflict persists. De Croo emphasized the need for wars to end to ensure safe access to regions and facilitate development.
These new investment and jobs initiatives come as warnings indicate a substantial job gap, with approximately 1.2 billion young people expected to enter the workforce in the next decade, while only about 400 million jobs are projected to be available. The UNDP's efforts will focus on improving investment policies, developing projects, identifying sectors with high job-creation potential, and aligning skills with employer demands.
Pilot initiatives are already underway in Nepal, Yemen, Haiti, Lebanon, and Ghana through the UNDP's partnership with the World Bank. Additionally, the UNDP is collaborating with Italy's Generali to expand insurance coverage for developing nations, a critical measure given that natural catastrophes in Asia caused $65 billion in economic losses in 2025, with only $5 billion insured.