Paschal Donohoe on the World Bank's Role in a Changing World

Why It Matters

Focusing on job creation and stable regulations aims to unlock private investment, helping developing economies recover from shocks and sustain long‑term growth.

Key Takeaways

• Middle East crises could cut emerging economies' growth 0.4‑1.4%
• Up to 15 million jobs at risk from regional instability
• World Bank pushes stable policy reforms to attract private capital
• Knowledge Bank offers scalable policy tools for health, infrastructure, prosperity
• New Managing Director emphasizes job creation as core development agenda

Summary

The interview with Paschal Donohoe, World Bank Managing Director and Chief Knowledge Officer, at the 2026 spring meetings centers on the Bank’s response to geopolitical shocks and its renewed job‑creation agenda.

Donohoe warns that the Iran‑related crisis and broader Middle‑East conflict could shave 0.4‑1.4% off growth in emerging markets, jeopardize up to 15 million jobs and spur food‑energy inflation. He stresses that the Bank must mobilize both public and private financing, but private investors need stable, predictable regulatory environments.

He highlights the Knowledge Bank as a repository of scalable policy solutions—from health to infrastructure—designed to help countries do more with constrained resources. “We are here to help with jobs… and our knowledge to achieve more,” he said.

The emphasis on regulatory reform and private‑capital mobilisation signals a shift toward market‑based growth strategies, while the Knowledge Bank’s tools could accelerate development outcomes, making the World Bank’s agenda more actionable for member states.

Original Description

In his Impact Interview, World Bank Managing Director and Chief Knowledge Officer Paschal Donohoe joins the Atlantic Council's Charles Lichfield for a conversation on the World Bank's reaction to global crises, the role the Bank can play and his transition from Irish Finance Minister to World Bank leadership.