Fireside Chat, Conference Presentation
MIc'd Up | Part 2: Jim Yong Kim in Conversation with Michael Milken
- Global health leadership faces a critical risk of inaction leading to mass mortality, with specific projections warning that failure to act on HIV treatment could result in 25 billion deaths.
- By 2027, the World Bank aims to be recognized for facilitating capital allocation that simultaneously generates high returns for investors and creates significant social outcomes in developing countries.
- New economic models are being developed to attract private sector capital through enhanced returns, utilizing the World Bank's ability to borrow at LIBOR minus 10 basis points, provide political risk insurance, and offer credit enhancement to mitigate risk.
- The "fourth industrial revolution" is expected to eliminate low-scale agriculture jobs and reshape light manufacturing globally, creating specific economic risks for Africa which is projected to account for 100% of the world's net population growth for the remainder of the century.
- Failure to create new economic opportunities is predicted to lead to societal disruption driven by frustration, potentially resulting in increased extremism, migration, and refugee crises similar to the Arab Spring.
- A strategic partnership is planned to train and develop 1,000 financial experts in emerging markets to return to local financial institutions, addressing the current lack of awareness regarding the World Bank's capabilities among investors.
- Future development strategies must shift from assuming traditional industrial paths, as heavy industry has changed dramatically and technology will make nearly every industry capital-intensive, necessitating innovation-driven trade rather than ideological constraints.
- The World Bank intends to leverage its presence in 140 of 189 member governments and its deep ground-level knowledge to initiate immediate deals with private sector investors and educate the market on its role in moving capital toward equal opportunity.
- Capital flows are expected to focus on buying distressed assets directly connected to boosting economic growth in developing countries, under the premise that without higher returns for capital owners, global stability is at risk.
- Long-term goals include lifting everyone out of extreme poverty and creating a stable, peaceful world by ensuring capital moves to create opportunities for all, regardless of the specific organization employed or the dominance of global market capitalism.