We hear from IMF youth fellows on the most critical issues for their generations and how to reform
The IMF Youth Fellowship Program takes place annually and aims to foster a lasting network with and among young leaders from across the globe. Since its inception in the virtual world of 2020, the program has expanded to include engagements at the IMF Headquarters, Washington D.C., and beyond, such as in Marrakech, Morocco in 2023. At its heart, fellows participate in various seminars, workshops, and policy discussions with both internal and external experts to further bridge the IMF’s response to global economic challenges with the critical role youth play.
Marking the fifth anniversary of the IMF’s Youth Fellowship Program, this year brought together an inspiring group of fellows from previous cohorts, hailing from 14 countries. From public policy professionals to founders and entrepreneurs, these youth leaders engaged in two days of discussions with IMF staff.
Youth fellows tackled the following issues: AI, climate change, and gender equality. Together with IMF experts, fellows discussed numerous case studies, from assessing different job profiles and their likeliness to be replaced by AI, the symbolic image of the stranded horse on the roof following Brazil’s floods, to evaluating workplace policies for women post-childbirth, violence against women and their impact on economic progress. On the final day, through a series of workshops, fellows concluded with three keywords encapsulating their policy proposals.
Here are their ideas.
Case Study #1
Equipping Young People for AI:
Amidst the ongoing transition to AI adaptation, young people need to be equipped with the right skills and curriculum to stay ahead of the curve. Not a feat to be done alone, fellows proposed partnering with education ministries, universities, the private sector, and international organizations such as the IMF to invest in the technical capacity of younger populations and setting the short- and long-term vision.
Government Role in Innovation Ecosystem and public-private partnerships:
Governments are a key player in setting up the right ecosystem for innovation, from enhancing the patent system, streamlining business administrative processes, and providing digitalized public services like e-procurement and e-taxing. There is much room for the private sector too, from Fintech to telecommunications, in supporting and collaborating with entrepreneurs, start-ups, and those who work in the informal sector, who may have less access to traditional business practices. However, what should sit at the top of their priority list is to ensure widespread internet access and penetration first, especially in rural areas.
Global Tracking and AI Preparedness:
Using tools like the IMF’s AI Preparedness Index Dashboard for 174 economies, fellows advocated tracking the adaptation of digital skills and infrastructure on a global scale. Countries should move to set up autonomous agencies focused on education, training, and implementing AI assistance for students. Creating a curriculum about AI, focusing on coding, digital literacy, problem-solving, and data science, for instance, in schools, upskilling hubs, and training centers, would largely advance countries’ readiness in leveraging the potential benefits of AI.
Providing apprenticeships, internships, and scholarships for the youth and particularly women in STEM can also encourage more gender balanced participation in AI-related work going forward.
Financing AI Capacity Building:
How will this be financed? It will take more than just a village – from employer contributions to set up national training funds, and a blended finance split between the government and private sector. Fellows suggested that IMF resources can help set the stage; the fellows also hope to see IMF loan financing evolve to have a dedicated fund for AI capacity building and training in the future.
Case Study #2
A rising tide of natural disasters in these regions call for the urgent transition to greener policies and practices globally. Mired in extreme droughts, floods, heatwaves, and forest fires, sectors like agriculture, housing, and urban infrastructure are increasingly at risk, particularly for more vulnerable populations.
Thankfully, the work is ongoing but needs to be expanded. There are, at present, only 73 public or partially public climate funds which are not being coordinated effectively. The current movement for sustainable development financing is also falling short of the $2.5 trillion gap. To take a closer look at this issue, IMF Youth Fellows studied ways three countries are working to address these gaps and provide recommendations to accelerate these solutions.
The Kenya Green Bond Programme was launched in 2017 to promote financial sector innovation in green projects, from researching the potential of green bond issuance to developing environmentally-friendly and affordable housing for students in Nairobi. Similarly, Kazakhstan introduced its first green bonds in 2020 and has since established the legal and financial infrastructure to support additional mechanisms like carbon markets, Sustainable Development Goal (SDG) bonds or Green Sukuks, and green financing, even at the municipal level. In late 2023, Brazil successfully debuted a $2 billion sovereign sustainable bond, notably attracting 220 offers from international investments since. Its proceeds are allocated to a mix of environmental and social priorities, from deforestation control and biodiversity conservation to programs combating poverty and hunger.
In addition, more public and private partnerships can aid in building the momentum for expansion by:
Related: The IMF's Climate Change Indicators Dashboard
Case Study #3
Barriers to gender equality include many factors, not least a lack of sufficient policies supporting women and labor market readiness.
Closing the gap between men and women who work must be a priority for policymakers, particularly to help stimulate weak or slowing economies. The average female labor force participation rate is more than 25 percentage points lower than the male rate, with women largely under-represented in senior leadership positions. For emerging and developing economies, the IMF estimates that raising the rate of female labor force participation by 5.9 percentage points can boost gross domestic product by about 8 percent over the next few years.
Fellows came up with various policy recommendations centered around the three “P’s”: imagining possibilities, enhancing productivity, and fulfilling potential – of women as key economic actors:
Strengthening institutions and implementing governance reforms are a solid starting point. Equipping government officials with the knowledge and tools of gender-specific policy – such as a policy to promote gender equality in more senior governing bodies – and project implementation can have a trickle-down effect on increasing female labor force participation in other sectors.
To build on this foundation, it is crucial to consider the environment in which women work. Beyond government reforms, the everyday realities faced by women in the workplace demand attention. Governments and employers should also continue to advocate for family-friendly policies, like paid maternity and paternity leave, in-house nurseries and affordable childcare services as these can help women maintain their jobs and rejoin the workforce more quickly, thereby lifting a weight of worries that many currently face.
However, creating a supportive environment for working women extends beyond policy changes; it involves direct interventions that target specific sectors where women are underrepresented. Uplifting women in STEM and female-owned MSMEs by streamlining business processes, setting up digital incubator programs, and targeting investments toward these groups are additional ways to support their economic resilience while inching closer to equal representation in this sector.
Yet, these strategies, while vital, must be part of a broader, more proactive approach. These efforts to break down barriers to women’s participation in the labor market have to start early. Focusing on broadening access to education, health, financial assets, legal rights, and care services must be considered and acted upon now.
Opinions expressed in this article are those of the fellows; they do not necessarily reflect IMF policy.
For more information on the IMF's work on youth, visit: IMF and Youth
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