This section presents strategic perspectives on advancing sustainable growth in developing countries by encouraging stronger engagement with the private sector. It introduces practical approaches and partnerships that contribute to job creation, expanded access to infrastructure, and the development of future-oriented industries. Through knowledge sharing and collaboration, this section aims to highlight how inclusive engagement with private actors can complement national development goals and support resilient, self-sustaining economic progress.
Compiled by: Kyoungshin Kim, KGGTF Consultant
Decent Work: A Path to Sustainable Growth Through Private Sector Engagement
The Significance of Decent Work
First introduced by the International Labour Organization (ILO), the concept of Decent Work goes beyond the mere expansion of employment opportunities. It encompasses four fundamental pillars: productive employment, the protection of workers’ rights, social protection, and social dialogue. This concept was formally recognized in 2015 as the United Nations Sustainable Development Goal (SDG) 8, Decent Work and Economic Growth, and has since become a core value for advancing sustainable prosperity in developing countries.
The World Bank defines Decent Work not simply as a metric of economic performance, but as a critical pathway for enabling poverty reduction and long-term sustainable growth. Given the clear limitations of relying solely on public sector resources, the Bank emphasizes that active participation by the private sector is indispensable, both for creating jobs and for expanding the foundations of resilient industries.
The World Bank’s Approach: Linking the Private Sector and Decent Work
1. Jobs: The Surest Path out of Poverty – Overview (World Bank, April 2025)
The World Bank identifies jobs as “the surest path out of poverty.” This report underscores the need to build employment stability and resilience through expanded private investment and economic diversification. It highlights that private sector–led activities across a wide range of sectors—such as agriculture, energy, manufacturing, tourism, health, and education—strengthen community resilience and provide the foundation for sustainable growth.
In this context, Decent Work is framed not merely as an increase in the quantity of jobs, but as a process of securing quality employment and establishing stable social and economic foundations.
Jobs: The Surest Path out of Poverty Overview
2. Unlocking Futures: IDA Private Sector Window (World Bank/IFC, July 2025)
The importance of private sector participation is vividly demonstrated by the achievements of the IDA Private Sector Window (PSW). Through blended finance, the World Bank and IFC have leveraged concessional IDA resources as a catalyst to mobilize private capital. This approach has attracted approximately $31 billion in private investment, projected to generate more than 3 million jobs, provide over 4 million SME loans, and expand digital service access to tens of millions of people.
These outcomes go far beyond simple financing—they underscore that such transformative impact is only possible with active private sector engagement. The PSW stands as a flagship example of how public–private collaboration is becoming an increasingly indispensable tool in international development finance.
IDA Private Sector Window (PSW) and Job Creation
3. Private Sector Investment Lab – Focus on Job Creation (World Bank, April 2025)
The World Bank has also launched the Private Sector Investment Lab, an innovative platform that brings together private investors and development finance institutions. Its central mission is to dismantle the key barriers hindering private sector participation in developing markets.
Challenges such as regulatory uncertainty, foreign exchange risk, and insufficient early-stage capital have long constrained private investment. The Lab is designed to address these constraints through institutional and financial mechanisms, thereby fostering a more investment-friendly ecosystem. In doing so, it lays the groundwork for mobilizing large-scale private capital flows, which can ultimately translate into millions of new jobs across emerging economies.
Implications for KGGTF
The World Bank’s recent emphasis on Decent Work and private sector driven development strategies offers critical lessons for KGGTF. Above all, viewing job creation not merely as a social benefit but as the core pathway out of poverty and toward sustainable growth is fully aligned with the values that KGGTF seeks to embed in its support for developing countries.
The World Bank has demonstrated how large-scale impact can be achieved by mobilizing private capital and leveraging public–private partnerships (PPPs). In parallel, KGGTF is making concerted efforts to move beyond stand-alone grant projects, seeking to build stronger linkages with private enterprises and attract follow-on investment. This approach ensures that pilot projects are not confined to short-term outputs, but rather evolve into sustained investment and broader industrial development.
The strongest message from recent World Bank reports is that job creation lies at the very heart of development. For KGGTF, this means going beyond technical assistance and policy advice to also track how its projects contribute to local employment stability and youth job creation. In this regard, the KGGTF Internship Program stands out as a powerful example: it not only builds capacity but also provides young people with tangible pathways to careers and long-term employment opportunities.
Just as the World Bank’s Investment Lab works to lower barriers to private sector engagement, KGGTF is helping partner countries foster investment-friendly environments through institutional and regulatory reforms. These efforts go beyond policy recommendations, they create the enabling conditions that encourage active private sector participation, thereby transforming advisory support into measurable development impact.