A. M. 
The World Bank has highlighted the critical labor situation in developing countries, where approximately 70% of jobs are informal. This informality translates into precarious working conditions, with low productivity and insufficient remuneration, which poses a significant challenge for the economic and social development of these nations.
Although the private sector is the main economic engine, generating close to 90% of jobs and 75% of investment in these economies, its ability to foster sustainable growth is threatened. With 84% of the global working population concentrated in developing countries, the fact that only 25% of paid jobs are in these countries indicates a profound inequality in the distribution of employment opportunities.
The World Bank Group’s Business Ready 2024 report reveals that while the need for a favorable business environment is recognized, many economies have not yet succeeded in establishing the right conditions for business development. This limits the private sector’s ability to attract investment and generate formal jobs that can improve workers’ quality of life.
The slow global economic recovery, marked by the lowest growth rate in three decades, adds pressure on the private sector in developing countries. Difficulties in establishing a favorable business climate contribute to perpetuating informality and job insecurity, creating a vicious cycle that impedes progress.
To break with this situation, it is essential that governments and institutions work to create policies that encourage the formalization of employment and improve working conditions. This is the only way to harness the potential of the private sector and ensure inclusive growth that benefits the entire population.
