‘Need to create jobs for poverty alleviation’:India attracts far less tourists than its true potential, adds World Bank president Ajay Banga

World Bank President Ajay Banga said that to eliminate poverty in developing countries, jobs must be provided. He had a detailed discussion with Zerodha CEO Nikhil Kamath on People by WTF about the global economy, India’s progress, and the future of youth. He praised the changes in India’s infrastructure, while also expressing concern about the low number of tourists in the country. Sharing his career experiences, Banga explained how his journey from being an ‘army brat’ to the top position at the World Bank was based on resilience and right decisions. Read edited excerpts from this conversation: Question: How do you view India’s current economic situation and future? Answer: I am very optimistic about India’s future. In the last 20-25 years, India’s infrastructure – whether it’s roads, ports or electricity-water – has completely transformed. When people have basic facilities and are positive about the future, consumption increases. India is currently in that phase where the middle class is expanding. Infrastructure, health and education are the strongest pillars for prosperity and India is moving in the right direction. Question: What role can the tourism sector play for the Indian economy? Answer: India has everything from mountains to coastlines, excellent food and rich culture. Despite this, less than 2 crore (20 million) tourists visit here annually. This is far less than India’s real potential. If we focus properly on tourism, it can prove to be a game-changer for the economy. Question: You mentioned DQ along with IQ and EQ for success, what is this ‘DQ’? Answer: Earlier people only looked at intelligence (IQ), then came the era of understanding teamwork and emotions (EQ). But in today’s era, ‘DQ’ meaning Decency Quotient is most essential. This means how decent and honest a person you are. Do people want to work with you? Do you give others a fair chance to progress? Simplicity and respect for others is the biggest leadership skill today. Question: What statistics do you have regarding employment? Answer: This is a serious challenge. In the next 15 years, approximately 120 crore youth in emerging markets will reach working age (18 years). However, according to the current situation, we will only be able to create 40 crore jobs. This gap of 80 crore jobs can become a cause of instability and violence in the world. That’s why the World Bank’s entire focus is now on creating ‘hope and opportunity’. Question: How does the World Bank function? Answer: The World Bank is not just a money-lending bank, but a ‘Knowledge Bank’ that has 80 years of experience. It has five main components. IBRD provides loans to middle-income countries, while IDA gives grants to the poorest countries. IFC increases investment in the private sector and MIGA insures against political risks. We deploy approximately 120 billion dollars in the market every year. Due to our ‘Triple-A’ rating, we are able to raise cheaper money from the market. Question: Which model do you consider most effective for eliminating poverty? Answer: The most effective weapon to eliminate poverty is ’employment’. I believe that instead of taking from the rich and giving to the poor, we should ‘raise the water level of the river’ so that all boats can rise higher. The government’s job is to create proper regulations and infrastructure, while creating jobs is the work of the private sector, especially small and medium enterprises. A job doesn’t just bring money, it also instills confidence and hope in a person. Question: Is Artificial Intelligence posing a threat to jobs? Answer: In developed countries, ‘Big AI’ may be a challenge for the service sector and coding, but for countries like India, ‘Small AI’ will be a boon. AI that can provide farmers with information about pesticides on the phone without internet or help doctors identify diseases will bring real change. If we give our youth the right skills, then technology will not be a burden but a path to progress. Question: Indian-origin CEOs are leading the world’s biggest companies, what is the secret behind this? Answer: There are three main reasons for this. Question: What is your special advice for the youth? Answer: Always remain flexible and adaptable. Never become an ‘armchair critic’, meaning don’t just sit outside and criticize, but step into the field and become part of the change. And most importantly – always remain optimistic.