Keynote address by Anna Bjerde, World Bank Managing Director of Operations, at the APEC 2025 CEO Summit

As prepared for delivery

Excellencies, ladies and gentlemen,

It is an honor to join you, and I am thrilled to be back in the Republic of Korea.

Korea is in many ways a model of what my organization, the World Bank Group, works to achieve.

When the Republic of Korea joined the World Bank in 1955, it was one of the poorest economies in the world. More than 60 percent of the population lived in extreme poverty.

Today, it's one of the largest and most advanced economies. Unemployment is under three percent.

It has also become a technological and digital powerhouse. A number of Korean companies are globally renowned for their innovation.

This was an intentional effort that capitalized on emerging technologies of the day.

Let me give you an example.

In the early 1970s, it was still difficult for Korean companies to obtain financing.

A local electronics manufacturer named Goldstar encountered that exact problem as it looked to expand internationally. With commercial bank finance unavailable, the World Bank's private sector arm, IFC, stepped in to assist with a $17 million loan.

Importantly, we also provided critical market advice and introductions to our partners in the financial world.

Goldstar's business boomed. Over the years, the World Bank Group helped Goldstar become one of the first globally competitive emerging market companies.

Goldstar would grow to employ over a quarter of a million people and contribute massively to Korea's economy.

The company also changed its name. You know it today as LG.

Now we wouldn't take all the credit for LG's success, but it is a perfect example of the development continuum the World Bank Group works along.

Early on, the public sector drives job creation.

Over time, private capital and entrepreneurship take the lead.

For LG, the cutting-edge technology was consumer electronics.

Today, the equivalent might be AI.

So, the question is: Can developing economies benefit from AI in the same way as others did from past technological progress?

The answer is yes-but with a caveat.

There is Big AI and Small AI.

To benefit from Big AI, you need four things:

You need a lot of computing power.

You need affordable and reliable electricity.

You need data. Lots of it. In its simplest form and shared across multiple regions to generate the most predictive power.

And then you need people who understand how to use and manipulate that data.

Not many developing economies will have these four.

The numbers tell the story. As of June this year, high-income countries hosted 77% of global data center capacity, compared to less than 0.1% in low-income countries.

Low-income countries represent less than 1% of global ChatGPT traffic.

Developing economies are on the back foot with Big AI.

Small AI, on the other hand, uses localized models and smaller computer systems, and can be transformational in developing economies.

Small AI can help a farmer identify a disease in their crops-and get the right treatment.

Small AI can help a doctor working across remote clinics to diagnose a patient.

The World Bank is looking at scaling Small AI to unlock new ways to solve local development challenges that don't require massive servers or frontier models.

Our goal is to empower economies to leverage AI to improve lives, create opportunities, and power jobs and economic growth to achieve development impact.

But we are working on this challenge in difficult economic times.

The global economy is losing steam. Growth will barely reach 2.3 percent this year, the weakest in fifteen years outside of a crisis.

For emerging markets and developing economies, growth has essentially flatlined at around 3.8 percent.

Meanwhile, foreign direct investment to these economies is at its lowest level since 2005.

We are also living through a major demographic shift.

In developing economies alone, 1.2 billion young people will enter the workforce by 2035, but current trends suggest only 400 million jobs will be created. Young people deserve opportunity, not frustration.

We need to strengthen local businesses so they can compete, which will unlock jobs where people actually live.

But for businesses and entrepreneurs to start, grow, and hire, they need the right conditions.

This is where the World Bank Group comes in. We are taking a three-pillar approach to job creation.

• First, we are supporting governments to build foundational infrastructure, both physical and human. That means roads, ports, and hospitals. It means electricity that can act as a building block for AI, or schools to provide digital upskilling.

• Second, we are supporting policy and regulatory reforms that create a business-friendly environment with clear rules and predictable policies.

• Third, once the basics are in place, we help the private sector scale up investment. Our private sector arms, IFC and MIGA, provide capital, equity, guarantees, and political risk insurance.

We are working on ways for private investors to achieve both financial returns and meaningful impact.

Let me give you a few examples.

• First, we are working on bundling assets into investable products to bring institutional capital into emerging markets at scale. Just last month we completed our first transaction-packaging $510 million of IFC loans into rated securities. Demand was strong. We're working on more of these transactions.

• Second, we know many investors worry about political and regulatory risk. Our answer is to use the World Bank Group's balance sheet differently. Through our unified guarantee platform, we are targeting an increase in annual guarantee insurance across the Group to $20 billion by 2030. We are well on our way.

• Third, we are increasing local currency financing to reduce foreign exchange risk. About one-third of IFC's long-term financing is now in local currencies. Our goal is to raise that to 40% by 2030.

When I speak with policymakers, I encourage them to reduce non-tariff barriers and deepen regional integration. Economies grow stronger when they are connected - within their borders, across regions, and with global partners.

APEC is already one of the world's most integrated regions. But there is still room to go further.

Make domestic and intraregional trade faster, simplify customs, and clarify the rules-so goods move freely, businesses thrive, and economies grow together.

There is a significant, untapped opportunity here. For example, East Asia's Regional Comprehensive Economic Partnership could boost trade among its members by as much as 12%.

Connectivity is even more critical in the digital age we live in.

APEC is already home to some of the world's most dynamic digital economies. Imagine the possibilities if more small businesses across the region had universal access to digital platforms and simple, affordable cross-border payment systems.

That combination could mean millions of new jobs in services, manufacturing, and creative industries.

That's why we are supporting digital public infrastructure. We have committed a $6 billion lending portfolio across more than 60 projects, reaching over 100 economies to accelerate impact.

This includes connectivity efforts in APEC economies around things like digital IDs and payments systems.

We're also working with governments and private sector players to scale training and skills programs.

Let me conclude with three opportunities for the private sector leaders here today.

• First, co-invest with us. Join us in piloting guarantees and securitizations. Work with us to shape the instruments that can unlock institutional capital for developing APEC economies.

• Second, partner on regional integration. Work with us and with governments to set standards, improve transparency, and deepen trade links.

• Third, invest in people. Join us in scaling training programs, apprenticeships, and AI and digital upskilling initiatives across the region.

This is how-together-we can spur investment, kickstart growth, and ensure that innovation translates into jobs.