Shibbir Ahmed, NEW YORK: Mastercard and the International Finance Corporation (IFC), a member of the World Bank Group, have launched a $500 million global risk facility aimed at expanding digital financial access in emerging markets.

Announced on September 9, the initiative is designed to help banks, fintech companies and other financial institutions in emerging markets participate more easily in international payment networks. The program will initially focus on emerging markets in Europe and Latin America.

The initiative seeks to reduce financial and risk-related barriers that can prevent local financial institutions from expanding digital payment services. By helping institutions manage international payment-related exposure, the facility is expected to support broader access to secure and modern financial services.

According to the World Bank Group, many banks and fintech companies in emerging markets face difficulties meeting the financial requirements needed to participate in global payment systems. These barriers can leave millions of consumers and small businesses dependent on cash and excluded from the digital economy. The initiative aims to help address that gap by expanding access to digital payments for consumers and businesses, including small enterprises and underserved communities.

According to IFC, the program could support a significant expansion of digital payment activity through participating financial institutions. The initiative is expected to potentially enable around $280 billion in additional digital payment volume, facilitate the issuance of approximately 360 million new cards and bring about 90 million new active users into digital payment systems.

Women are expected to account for a significant share of the new users, with approximately 39 million women potentially gaining access through the initiative. IFC Managing Director Makhtar Diop said expanding digital payments in emerging markets can help create economic opportunities and bring more people and businesses into the formal financial system.

Mastercard said the initiative is intended not only to increase access to financial services but also to strengthen security, trust and resilience across digital payment ecosystems. The program reflects growing efforts to expand financial inclusion in emerging markets, where digital payments are increasing but access to international payment infrastructure remains uneven. By reducing barriers for local financial institutions, Mastercard and IFC aim to help more consumers and businesses participate in the formal digital economy.

Shibbir Ahmed, WASHINGTON DC  — Artificial intelligence could give developing countries a rare opportunity to accelerate economic growth, improve public services and address long-standing development challenges, according to the World Bank’s World Development Report 2026: The Promise of Artificial Intelligence.

The report examines the potential impact of artificial intelligence on 5.6 billion people living in low- and middle-income countries and argues that developing economies do not need to build the world’s most advanced AI systems to benefit from the technology. Instead, the World Bank recommends that countries follow a three-part approach: adopt, adapt and advance.

The report says developing countries can begin by adopting existing AI tools in areas such as health care, agriculture, education and government services. They can then adapt those technologies to local languages, institutions, data and development needs.

AI-powered tools are already helping farmers improve weather-related decisions, supporting medical screening and assisting teachers in preparing educational materials, according to the World Bank.

The institution warns, however, that the benefits of AI will not be automatic. Reliable infrastructure, digital connectivity, education, skills, strong institutions and access to relevant data will be essential if developing economies are to translate AI adoption into higher productivity and broader prosperity.

The report also highlights the risk of a widening global AI divide. A small number of countries and companies currently dominate advanced AI models, semiconductor production and data-center infrastructure, potentially creating new forms of technological dependence.

For most developing economies, the World Bank says building frontier AI models from scratch is unlikely to be a realistic near-term strategy because of the enormous costs involved in computing infrastructure, data and specialized talent.

Instead, countries should focus on practical applications that expand access to expertise and improve productivity while building the infrastructure and skills needed for deeper participation in the AI economy.

The World Bank describes the rapid spread of AI as a historic opportunity for developing economies, noting that AI is spreading faster than earlier general-purpose technologies such as electricity and the internet.

The report argues that strategic adoption and adaptation could allow developing countries to capture significant economic and social gains without having to compete directly with the world’s largest technology companies in developing frontier AI systems.

DHAKA – LGRD and Cooperatives Minister Dr Abdul Moyeen Khan has expressed hope that the World Bank will further strengthen its support for the country’s sustainable development and improvement of people’s quality of life. He said various government initiatives are underway in important areas such as water supply, sanitation, rural development and addressing the impacts of climate change.

Continued support from development partners is necessary to make these activities more effective and sustainable, he said when World Bank Division Director for Bangladesh and Bhutan Jean Pesme paid a courtesy call on him at his office at the Secretariat today.

Various issues including the World Bank’s support for various ongoing development projects in Bangladesh, water supply and sanitation systems, rural development, climate change and local government sector were discussed.

The minister said the government and development partners need to work in coordination to accelerate and sustain the country’s development activities. He said WB support could play an important role in strengthening the capacity of the local government sector and ensuring quality civic services reach people at their doorsteps.

The minister expressed gratitude for the World Bank’s longstanding support for Bangladesh’s development journey and hoped that the bank would continue its support for the country’s key development initiatives in the future.

During the exchange of views, emphasis was placed on further strengthening the existing cooperation between Bangladesh and the World Bank. LGD Md Shahidul Hassan, senior officials from the ministry and the WB were present at the meeting.

Shibbir Ahmed, Washington DC: Nearly 600,000 jobs in Bangladesh could be at risk if the economic fallout from the ongoing Middle East conflict persists, according to a World Bank assessment. The warning comes as Bangladesh faces rising fuel prices, severe gas shortages, disruptions to fertilizer production and growing pressure on industries and household incomes.

The World Bank’s mid-June assessment, prepared as part of a proposed Contingent Emergency Response Project, said the conflict could significantly weaken Bangladesh’s economic recovery and slow the pace of poverty reduction.

The assessment estimates that the number of people expected to move out of poverty in 2026 could fall from around 1.7 million to about 500,000 because of the conflict. Bangladesh had already been facing rising poverty. The World Bank estimated that the number of poor people increased by about 1.4 million in 2025, as weak job creation, slow growth in labor incomes and persistent inflation reduced the poverty-reducing impact of economic growth.

Energy crisis adds to pressure

The energy sector is among the areas most severely affected. Natural gas accounts for more than half of Bangladesh’s primary energy supply, while domestic gas production has fallen significantly from its 2016 peak. The country also relies heavily on the Middle East for imported energy, sourcing about 60–65% of its crude oil and 55–60% of its LNG from the region.

The conflict has disrupted LNG supplies, with five of Petrobangla’s six LNG supply contracts reportedly placed under force majeure. Spot LNG prices have risen to around $24–$28 per million British thermal units (MMBtu), more than double their previous level.

Higher energy costs are also expected to put additional pressure on inflation. The World Bank assessment said that passing higher energy prices on to consumers could increase inflation by more than 0.5 percentage points, with further effects on food and non-food prices.

Fertilizer production disrupted

Bangladesh’s agriculture sector is also vulnerable to the crisis. Gas shortages have forced five of the country’s six domestic urea fertilizer plants to suspend production, while international urea prices have increased by around 30%. The World Bank warned that fertilizer prices could potentially rise much further if the disruption continues, increasing production costs for farmers and putting additional pressure on food prices.

Smallholder farmers, who represent a significant share of Bangladesh’s population, could be particularly exposed to higher input costs and supply disruptions.

Industries and workers under pressure

The energy crisis is also affecting industrial activity. Factory operating hours, production and new industrial gas connections have reportedly been affected, while some businesses have faced rising operating costs.

The World Bank’s projection of nearly 600,000 jobs at risk reflects the broader economic consequences of higher energy costs, supply disruptions, weaker production and inflation. Economists have also pointed to signs of the crisis already appearing in the labor market, including factory closures, reduced working hours and job losses.

Government finances face additional strain

The crisis could also increase pressure on Bangladesh’s public finances. Higher energy subsidies could substantially increase government expenditure, potentially reducing the fiscal space available for social protection and emergency programs, according to the World Bank assessment.

The World Bank has already approved $1.1 billion in emergency financing for Bangladesh to help protect food security, support vulnerable households and businesses, and address volatility in global fertilizer and fuel markets.

Risk, not a confirmed job-loss figure

The World Bank’s figure of nearly 600,000 should be understood as a projection of potential job losses if the crisis continues, rather than a confirmed number of workers who will definitely lose their jobs.

The final impact will depend on how long the Middle East conflict lasts, global energy and fertilizer prices, supply conditions and Bangladesh’s ability to manage the economic shock. For Bangladesh, however, the warning highlights the vulnerability of an economy already struggling with inflation, weak job creation and limited fiscal space.

Source: World Bank assessment on Bangladesh’s proposed Contingent Emergency Response Project.