By Liam J. Miller
A week from now, the annual IMF – World Bank Meetings will be taking place in Washington DC Given that it is the 80th anniversary of the Bretton Woods Conference which led to the founding of the IMF and the World Bank these meetings are of historical significance.
The IMF – World Bank annual meetings are highly anticipated due to their promise to catalyze the development and implementation of policies that will shape the trajectory of the global economy. While the focus will be given largely to the issues plaguing the “grownups”, these sessions provide opportunities to advance a manifesto for a thriving global youth economy.
To begin, it’s essential to define the scope of the youth economy. According to the International Institute of Inspiration Economy, a youth economy is “an economy that is based on the youth’s currency, which comes from youth energy or a renewed spirit.” Building on this definition, the youth economy involves leveraging the factors of production – land, labor, capital, and entrepreneurship – to create opportunities specifically for young people. These opportunities comprise entrepreneurial ventures, such as launching a startup, and employment in innovative industry sectors. At its core, the youth economy empowers young people to control their destinies.
For young people to thrive in a youth-driven economy, they must first have access to the opportunities it presents such as education and financing. Yet, how accessible are these opportunities for today’s youth? Statistics from the Global Fund for Children found that 89 percent of the world’s youth live in developing countries, with 55 percent of employed youth still living in poverty.
This year, a report titled “The Price of Inaction: The Global Private, Fiscal, and Social Costs of Children and Youth Not Learning” revealed a $10 trillion economic loss due to children not attending school or dropping out early. As a result, many young people lack the knowledge and skills needed to not only survive but to thrive in a youth economy. In The Bahamas, this reality is seen with figures showing that high school students are performing below standard in STEM subjects, coupled with a persistently high youth unemployment rate. A lack of youth involvement in the economy weakens its sustainability and harms social stability for all.
To address these issues, relevant stakeholders – including academia, civil society, and the public and private sectors – must collaborate to create a blueprint outlining what the aim and design of the youth economy. Such a blueprint can be built on three foundational principles:
Inclusivity: As a marginalized group, young people often face systemic barriers that perpetuate inequalities. These barriers are often exacerbated by factors like geography, gender, income, and race. A concerted effort is needed to establish educational and employment programs that specifically target these marginalized youth populations. Through these actions, we can democratize opportunities and create a more inclusive youth economy.
Resilience: Even when young people gain the knowledge and experience required for employment, they may still struggle to find jobs or receive fair compensation relative to their qualifications. This creates both a “quantity of jobs” and a “quality of jobs” dilemma. Stakeholders must ensure that job opportunities for youth not only exist but also provide meaningful responsibilities that align with their lived experiences.
Vibrancy: A vibrant youth economy prioritizes innovation over stagnation. This can be achieved by aligning educational curricula with emerging sectors like the blue, green, and orange economies, as well as prioritizing STEM subjects. By exposing young people to these areas, we prepare them for the jobs of the future and ensure the economy remains dynamic and forward-thinking.
By focusing on these areas, we can lay the foundation for a sustainable youth economy – one in which everyone has the opportunity to benefit. The decisions made at these sessions are crucial in building the youth economy of tomorrow.
The views expressed in the article are entirely my own and do not necessarily reflect the opinions of any employers and affiliated organizations.
