The Global Risks Report 2024

large financing gaps in reaching development goals in the medium term (Figure 2.21) – and geopolitical instability could further hinder international financial efforts to support these economies, from debt restructuring to foreign aid (Box 2.8). This global gap between job-creating investments and willing workforces will therefore lead to divergent risks in the demand and supply of labour. The demographic dividend of some developing markets may quickly turn into a demographic dilemma in which unemployment becomes a chronic risk. In the absence of substantive domestic or foreign investment, some economies may be unable to generate sufficient green- and tech-related income opportunities to absorb a growing workforce, while other sectors also could become at risk in a low growth, high-rate, low-investment world. This is a challenge that will not be limited to the LDCs – select middle-income economies that have sought growth through an export-led model may also face substantial job erosion. 93 Mirroring trends in manufacturing, several countries have relied on rapid growth in digitally delivered services exports (Figure 2.22), 94 yet the industries and job functions most impacted by generative AI are among those most commonly outsourced and offshored, such as information technology, finance and human resources. 95 Although higher-value income opportunities will be created through AI augmentation, these jobs are likely to be Dollars per capita0 750 1000 1250 1500 1750 500 250Funding gaps in the Least Developed Countries FIGURE 2.21 Source UNCTAD, 2023.Note As of 31 August 2023, six Least Developed Countries (LDCs) were in debt distress and 15 were at high risk of debt distress.Financing need Projected spendingProjected spending in 2025 on Sustainable Development Goals and financing needs to reach those goals by 2030, dollars per capita BeninBangladeshAngola Bhutan Burkina FasoBurundiCambodiaCentral African RepublicChadComorosCongo, Dem. Rep. of theDjiboutiEritreaEthiopiaGambiaGuineaGuinea-BissauHaitiKiribatiLao PDRLesothoLiberiaMalawi Mali MauritaniaMozambiqueMyanmarNepalNigerRwandaAfghanistan Sao Tome and Principe SenegalSierra LeoneSolomon IslandsSomaliaSouth SudanSudanTimor-Leste Togo TuvaluUgandaTanzania, United Republic ofYemenZambia Global Risks Report 2024 62