LinkedIn Speaker Series: Dr. Jim Yong Kim
Ladies. And gentlemen please welcome Alan, blue. Good. Afternoon everybody thank, you for coming so great to see so many people here I guess we're bringing in some more chairs so those of you who have no place to sit sorry about that we're getting to it, so, we, are thrilled today to. Welcome. The. President, of the World Bank Jim. Kim to, come speak. To us I want. To remind people that we, do these things in order to inspire, the people in this room and the people who are watching these feeds with. New ideas new perspectives and, things are close to the heart of what we do here at LinkedIn so. Be. Thinking about questions you've got and ways, in which you think you might want to actually participate. In, some of the things are happening or ways you think our company should if, you want to watch us on the stream or you want to catch up on old. Speaker. Series things as it happened in the past you. Can always go to speakers on LinkedIn comm and. Check it out there so without. Further ado I'd, like to welcome the president, of the World Bank Jim. Kim. All. Right so. We. Have a we. Have a tradition, here at LinkedIn. So all new employees when, they not all we, have too many new employees now but many, new employees will be invited, up on stage during. Their first couple of weeks to. Introduce. Themselves the company and they do that in part by talking about things that are not on their LinkedIn profile, and we. Always warn them ahead of time so they're. Ready to talk about it and we've, warned you so tell us what. Is, not. On your LinkedIn profile. Well. I. Thought, there are you gonna show some pictures or something that is that is that the case we are yeah. Okay. All right. So. I. Played. Football at, Muscatine, high school and I, was, a quarterback on the football team and. People. Are usually. Impressed. By that because you, know when I was especially when I was president of Dartmouth College you know huge football. Tradition, there but I always tell them but. The the, second part of the story is what's most important. Muscatine. High school had the longest losing streak in the nation. And. Then that was my senior year in in, in. High school I just, want you all to know that we maintained. A perfect, record of. No. Wins and 56, losses. Seven-year, period Oh congratulations. Thank you yes. But. It wasn't just football right it wasn't just football and I also, played basketball and we, have a picture of basketball, yeah we, do. So. I was we were better at basketball, and. When, I was in, junior. High I, had, aspirations, that, I would you know play basketball. Probably. Not professionally, I thought played in college and I was actually recruited, by one very. Small college in Iowa to play basketball but. It, ended and and. I'm. I, broke. Too many bones and too, slow to play anymore so the only sport, I played that, I can do a little bit competitively, is golf so I still I still play golf I. Was, recently. Did an interview with David Rubenstein he does you know the peer-to-peer Bloomberg.
And, He asked I think, I'm one of the relatively, few people who play golf with both President Obama and president. Trump so. So, that's something that's not on my LinkedIn profile I know, it. Is it is however on your Wikipedia, page and. Your. Handicap, is also yes yeah well they and they asked me and David is always he asked the most impertinent, questions, and he said so, who's the better golfer of, the two so. My answer was that President. Obama in, the six years I've been playing with him has improved more than any golfer I've ever seen right. But. He went from about a 20 handicap, to a 10 handicap which is just tremendous. President, Trump has been playing his whole life and he's he's an extremely, good golfer I mean he's really he's. Really really good so there I said there are two different kinds of golfers one. That started, late in life and is improving and the other who, has been a cotton accomplished golfer for a long time and I looked at David said how's that. So. I've been in Washington long, enough now that those. Answers you have to kind of practice it yeah. Well. Done well, done so. So. One, of Jeff, weiners Jeff readers of CEO I, one. Of his favorite. Books he talks about all the time is mountains, beyond mountains and I, thought it. Might be a good opportunity to talk a little about your experiences, partners. And health you will founder of that organization and. You. Know it, really is a tremendous, story. So you can just spend a few minutes talking about that history, sure, you know I'm will day I. My. My. Background was that you know I grew up in Iowa my father was a dentist my. Mother is. A philosopher, and my father passed away but my mother continues, to do. Her work in in, Confucian. Philosophy she, studies, she. Was. Was, her fur gret her grandfather, were. Was among the first Christians, in Korea this was you know now more. Than a hundred years ago and. But. She ended, up doing, her dissertation, on, on. Confucianism. At the University of Iowa of all places and so I had, you know an extremely practical, father. Dentists. Are among the most practical human, beings on earth and, a philosopher, mother and so, one. Day I was, just home, from Brown and I you know my father picked me up and was swimming we were still living in Iowa and, we were driving home, from.
The Airport and he turned, I said you know Jim woody what do you want to study and, so I said you know that I think I really want to study political science and philosophy and, go into politics right and this, is a true story he literally pulled the car over to the side of the road and. He looked at me and he said you know when you finish your residency you. Can study anything you want, so. So, I had that part. Of me and and, so, I, I, was I was involved in in, the, third world center at Brown I was doing you, know so many political things but, I was also doing my pre-med because my it's, a very strong influence you know I when, I tell this story to, an audience like this people, laugh right but, I told this story wants to a group of second. Generation I mean first, generation, Korean Americans nobody. Laughed right and, they just shook their heads of core of course that's what that's, what you'd say right but, anyway I. Got. Into medical school and then immediately got. Into a ph.d program and I've been there I met Paul Farmer and some of you may know him one. Of the most remarkable human. Beings, alive. Today and he. And I were both studying, medicine and anthropology, so after I got into medical school my, father gave me permission to study other things and so I did. A PhD anthropology. And we, began asking ourselves, and so Paul. Used to call it with our ridiculously. Elaborate, education. What's, the nature of our responsibility. To the world and. So we decided that we were going to start an organization and we were going to work, in the very poorest, areas and then. Continued. To insist that even, the poorest people deserve. To have the best health care the, best education, the, best you, know housing, and it wasn't we. Weren't you know building skyscrapers but, we were saying everyone, deserves you know decent health. Care decent, education. And in health care because that's was our area we. Wanted to go as far as we possibly could. And so we ended up running into, these incredibly. Complicated problems. That. The rest of the world were saying oh they're too complicated to. Tackle among poor, populations. Drug-resistant. Tuberculosis was, the first that we ran into and then we launched this huge effort to convince the world that, they should treat it and and we won that fight the, next which was even bigger was HIV, I mean young people here probably. Can't imagine it but in the early 2000s, we. Had treatment. That, turned AIDS from, a death sentence, into, a manageable, chronic disease, and. Every. Literally. 99.99%. Of, the physicians, who were in the HIV world were, saying it's too complicated to treat in Africa but there were 25 million people who, are living with HIV in Africa so we were essentially. Sentencing. 25 million people to death and and they'll. Tell you different stories now but I can tell you that back then. 99.99%. They were literally handful of us who are saying no we what. What I kept saying is you know this is our, this. Is our moment to define our whole generation if we let 25 million people die because we think it's inconvenient, or complicated, to treat them we will always be remembered as the generation that that 25 million people died and so. Paul. And I were among the first to really push. For HIV treatment and we, won that battle too and, so, that. Partners, in health, continues. To build fantastic. Programs in the most difficult places in, Liberia, in the middle of Ebola outbreak they were building, systems, and building programs and what. What what, we've always done there, it's, it's in many ways we. Hope you know a. Sort. Of kindred spirit of what you guys do we're, constantly, trying to push the boundary of what people think is possible, and so that that's what partners in health does and then I've just been taking the same idea into different realms I, know. At the World Bank Group I feel like my mission hasn't, changed at all from the, work we did at partners now what what we talked about a partner sanella so I think we called making. A preferential option for the poor meaning, that. It's. Not that we value anyone's, life less than others but, we believe that the, that we should value the lives of the poorest a little, bit more just, because they're faced with so many obstacles.
And, So you. Know I had. The great opportunity meet, with with. So. Many different people, including. Pope Francis and I said. To him you know our mission, I and I speak Spanish as our mission is to make a preferential, option for the poor and, you, know it comes from literally. Every religious, tradition in, the world has that basic. Idea and, so, it's, what we're now doing it the World Bank Group we're asking a very straightforward, question what can we do to. Make the global system work. For everyone, especially the poorest and and. For us it's, also the planet and we have to focus on climate change and on environmental, sustainability because. Menudo. And Africa, there's, an there's not a single African leader I've met who, hasn't told me everyone, says to me you, know the boot of climate. Changes on our necks and we, did almost nothing, to put, the carbon in the air our, carbon, footprint has been almost zero, and yet, the, boot of climate change is on our neck more than anyone else's and so the. The Partners in Health work was great because we had a chance to tackle problems that everyone told us was impossible, right and well. You know I, I think you guys are tackling, impossible, problems you know why I know that because, I have two million followers on LinkedIn, you. Know you ask why kids they can't believe that's the only cool thing about me from my kids but effective is, that have two million followers so so be you guys do the impossible to do, you think there's a connection. Between. The. Background, you brought to the problem, and. Your, willingness, to bite, off something which seemed impossible, because one of the things we focus on here in the valley when we think about innovation, is, about. Defining. A problem well and then putting people from different backgrounds. Trying to solve that problem the, people with different backgrounds, are going to produce the most innovative and interesting solutions, so, that, anthropology, background, or maybe even philosophy. Background well. You. Know I guess, when, people ask me for career advice. The. One thing you know I think back and think you know what's, the. What's been sort of the common theme throughout. My life and. It's. Been that I have said yes to, proposals, that, that, either. Were, thought to be impossible or. Said. Yes to jobs that people, later. Soon. After I accepted them would, say that I'm completely unqualified for so. And. I I think I think that you, know think. About a multi, drug-resistant, tuberculosis is, in, San, Francisco, one. If you see a case of that in in, San Francisco General Hospital everyone's. Going to be running around saying, oh my god this is so difficult so complicated, we, treated, it in the slums of Lima Peru we treated, it in rural Haiti and we had better outcomes, I mean to this day our programs have better outcomes than San Francisco General Hospital and it's just the way, we do, it is just very different than the way others. Do it but. When. You've had that experience the first time people. Say impossible that treat impossible, to do impossible, to change policy, and then you do it you. Get a different kind of sense of what. To take on next HIV. Treatment I mean it was we're talking 25 million people in Africa and, everybody. And Bill Gates will admit it even Bill Gates was saying it's impossible to do forget about it and Bill Gates is one of my, you, know absolute, heroes he's taken on so many difficult problems but. You know as somebody as generous, and and. Forward-looking as bill just said I just don't see how we're gonna do it it's impossible so.
That Was a second. Experience. And and, so now I. Think my own team my World Bank team some of them are here, they. Couldn't believe this stuff that I took on the first you, know in terms of organizational, change we. Took on a huge. Task. But now you. Know we just received a capital increase that nobody, thought we'd get and again up, until two, three weeks before we. Put the capital increase on the table my own team was telling me it's impossible right, and I think there's just something, that, over. All these years I you. Know there. Are times when things are impossible and there are times when you're wasting your time but. I have, been able to see, through fog, little bit better but. It's only because I've had that experience and so what I would say is and. What I'm not telling you about is all the times we failed there's so many things that we tried that didn't work out right and so, it's, only by doing that that you get the sort of you. Know the the gut that gut feeling, ability. To, be able to say this is really worthwhile I think, that if if, I were to say that what I do is is, biased, in any way it's. It's, biased, in the direction that when people say that something is impossible to, do for, poor people, I really. Really. Resist. That right because it's so easy it's. So easy to accept it because poor. People are not powerful enough to force, you to, to. Say no right and so you're the first president. Of the World Bank comes, from a background which is not in finance, or economics in. Finance, or politics call they've either been they've, either been politicians, or bankers. Got, it so we. Talked a lot about transformation. Of our company, here, in, addition to our own ourselves, and, the world how. Do you go about transforming. A, company, which has. Other. Words a big company, take, on some of those very tough things which that, company thinks may be impossible yeah well. I mean part, of it is you. Know I came, into the. World Bank with, with, with great humility and I didn't I didn't. Assume that I knew what the bank needed so, I brought in great people I mean my friends, mark and Bonita are here and Mark. Thompson is leadership coached as well as being a very successful, entrepreneur, Mark's. Colleague and, close friend Marshall Goldsmith is my leadership coach so I've had a leadership coach for off. And on for about twenty-five years but Marshalls been my coach for ten years and Marshall. Has the most incredible network and so, Alan Mulally the CEO former, CEO Ford at the time he was actually the CEO for it at the time he. Came and he spent two days with me at the bank and I. Mean I I don't, know of a more. Inspiring. Leader than Alan I've seen him in Ford he knows everybody's, name he's always up he's always positive, he, transformed. Ford when, when people didn't think he could. And so Ellen, came and Alan said well Jim you know it's. An incredible, organization it's, incredibly, complicated but, here are the things that I see that, I and he's so polite that, I don't see in a lot of other organizations right, and so, when Alan tells you that these are things you need to look at we, then also brought, in consultants, and there. Was clearly a massive change that was needed in order, to move the organization forward, and. So I went in to the. Board and I said okay I've talked to some of the most brilliant. Managers. In. The leaders, in the world and, it's pretty clear that these are the things that need to be done that's why I laid it out and the board said oh great we know, this we've seen this yes go ahead and change I said but I need to warn you this, is going to be very loud and very. Noisy, and people, are going to come to you and say stop it I just want you to know now put your seat belts on this is what's gonna happen this oh yeah but we're with you we're the--and of course it, got very, noisy. Right away and people. Would go directly to the board and say this guy's crazy and then, the board members start saying gee Jim you maybe maybe, you want to slow down but. I, felt, like unless we. Do this we, cannot, really. Become the organization, for the future that we need to become and the. Great news is that during, the the, during, the discussions, about whether or not we're going to get this increased, capital that now is going to take us to more, than double the size when when, I started, they. Asked about every, single one of the changes we made because, they were looking for reasons to not give us a capital increase well have you done this have you done this have you done this and each, one of those things we could say yeah we did uh-huh it was not easy but, we did every single one of those things and you could imagine that they would say that cuz Alan Mulally asked the same questions, right then one of the greatest leaders you, know in the world when.
He Asks you those questions and no matter how polite he is you, know I took him seriously, I took me Fred Hasson another one of the greatest CEOs, most. Successful CEOs in the u.s. I took, what they told me very seriously, I took what Marshall what mark what others said. To me I took it seriously and I just feel like okay I am, gonna take this sort of you know with knives in my back I add this is and in, my own team was skeptical. So I told them. Worry I'll take all the blame I'll take all the the, heat and then, now that we've gone through it I think everyone is rethinking. Where, they were and now lots of people are saying you know Jim we were always with you that's. Great I mean that you. Know it's funny the way that were it's, good and that's a good moment yeah, I'll, take it so just, give if you could just like a really quick sketch of the World Bank and what it does because I'm sure there are people who are listening to us who don't, know yeah so the World Bank was founded, in 1944. Before, the, end of World War two and originally. There were two organizations, one the International, Monetary Fund that, was really formed to, prevent. Currency. Occurrence. See fluctuations, that we saw there was a lot of beggar-thy-neighbor policies. Where people would ah would, manipulate their currency and, so the gold standard, and the IMF came out and we, came out the International, Bank for Reconstruction Development. To rebuild Europe but, then the Marshall Plan came along and if anybody wants. To study the Marshall Plan it's quite amazing because we we talk about 0.7%. Of, of gross, national income for, aid that. Marshall. Plan was 2.7. Percent of, u.s. GDP was, huge program and so, they took that over and then we moved, and started, focusing on poverty, and economic development, so 75 years we've been in business and, now, our goal is very clear end extreme. Poverty, and boost, shared prosperity but. We're also now by, far the largest funders. Of climate change mitigation. And adaptation in, the developing world where we're at about 25, billion and we're going to keep going up a little, bit about with a theory of change. So. The theory of change it's a it's a it's a cool idea because, what what, we are 189, member countries and because. We have paid in capital and support, from 189. Member countries and because, we have something called a preferred, creditor status, that everyone has to pay us back first. We have about, you know one, of the best triple-a. Ratings in the world and so we're able to borrow at extremely, low levels for any of the finance people we're, borrowing at LIBOR minus 15, or 20 basis points and so we, passed that that that low borrowing costs on to. Our our. Clients. So a middle-income country can. Get 20, or 30 year maturity alone, at. Two to three percent they would never be able to get that you know on, the market and so, in. Giving them those loans we, say okay we're going to give you this but we want to do, something with you we. Want to improve communications. We want to improve your roads sometimes, we give it right to the budget and help them improve their policies, improve, rule of law improve, their ability. To stamp. Out corruption so, we, it's. It's a bank it's really a bank but. It's also a, place of great innovation we invented, the swap and in we invented political, risk insurance, we. Just invented pandemic. Insurance, you know we now the, 75 poorest countries in the world are insured, against, pandemics, and the pandemic insurance, policy, actually, just went into effect with the last Ebola. Outbreak in in Congo, and and, rather than wait eight months that we did you know as we did in Liberia, Sierra. Leone and Guinea we, responded, within two weeks and stamped.
It Out right so we. You. Know for me as a medical tucker an anthropologist. You know for the first couple of years I did nothing but just intensively, study both macro economics, and finance and because. I was new to it I kept, saying well, gee why don't we do that and why, don't we do that and of course the first answer was no we can't do that and I just would say well why not and if they couldn't give me an immediate response as to why not I would push and so, pandemic, insurance, I was told 15 times it can't happen but. I enlisted. The CEOs, of Swiss Re and Munich Re who. Whose, teams also told them it was impossible but we did it and it was mostly because we. Put teams together that never sit together and so, now we're thinking hey maybe we can even invent. Something like famine, insurance you. Know famines are almost always related to responding, too late and if you respond earlier you, can actually stop, famines, from happening and so now we're in this wonderful conversation, with the reinsurance, companies about, you know creating famine insurance so we're so we're we're. We're a financial. Institution that can do swaps that trades on the market every day that, you know we we're we're, limited partners for lots of funds you know here in San Francisco. But the point is to end poverty so we, are we. Are a group, has enormous, financial, resources and, our goal is very simple in poverty, boost shared prosperity so. One of the things which I know is a big area of focus for the. World Bank now is around. Human. Capital so. I'm. First interested, in finding out like. When. You think about human capital how do you define, it is I mean and how close has it come to companies, and to the way that companies think about human gap so this is one of the things that I really, want to to emphasize today so. You. Know we're. Just coming. Out with two things are every. Year we put out something called the World Development Report and this year it's on the future of work and then, part of that is a whole section on human capital. Because. We're I am. Concerned, in our organization, is very concerned that. Well, you, know I'm here because we think technology. Has a huge upside a potential, upside for, poor people in developing. Countries but. So many countries are not prepared, to. Compete in the economy of the future how. Do we know that well in. Some countries you see childhood, stunting, and stunting, is just very, simple you measure how.
Much Children are growing in, terms of height weight, varies over time but, height is something that is pretty permanent, and so. When. We see, children, who are two standard deviations, below their. Height for age then. We say that those children are stunted and the, scientific evidence is pretty overwhelming now that when you're stunted, you. Have far fewer neuronal, connections, and so, these, children we've now followed them independently, of anything, else we follow the children who are stunted in many different countries and we know that their learning outcomes are much poorer and their, earning, is, much much lower so, this is a huge problem in the world I've been screaming and yelling about it but, not very many people not very many countries, have taken it seriously you know quality of education, we now have. The best data in the world on quality of education that's, we call it learning adjusted, years of schooling so um you, know a year of schooling in Malawi is worth about half a year of schooling and Singapore and so, we if you put these things together we're. Connecting, them directly, to productivity, and economic growth so. Can tell you how much economic. Growth you're missing out on because. You haven't invested, enough in your people now the. Reason this is going to be controversial, is I, have, really. Pushed and we've now decided, that we're gonna do a ranking so it's a really interesting phenomenon, every year my busiest week is when they're doing business rankings come out and and when the when the World Bank puts out a ranking, everybody, pays attention right. And so I get irate, phone calls every year after doing business indicators and this is from heads of state often because they're angry at where they're coming out and what, I say as well it's just it's a ranking and we can help you next year and the, in the countries, who've done really well are, the ones who have come to us and actually tried, to reform with. Our help right so and, they're gonna be movers this year as well so I, decided we're gonna do a human.
Capital Ranking and this is going to be even more sensitive uh-huh, because everyone. In society is gonna look at this and what's going to happen this countries, are gonna find that they're ranked lower than countries. That they've always felt superior to right, and then, that's going to start a conversation in, those countries that could, be explosive and we're. Not trying to create an explosive, conversation. We're trying to bring attention to something, that heads. Of state and Minister for finance have. Historically. Under, invested, in because. It's it's it's the the returns, to votes is much, faster if you build a road or if, you provide, people with energy it's just if the return is faster so we're trying to create literally. Incentives. And market forces so for people will finally invest in in their, own people and you know the, the countries. That have done the best South, Korea had, nothing in 1963. When I was a four-year-old in South Korea, the World Bank refused, to give South Korea alone because, they thought it was hopeless to hopeless, there, were the industrial, activity and mineral, wealth was all in the North South. Was at the South Korea was just a rural area you. Know in in ten years before, 15. Years before literacy. Rate was 23% and, so they, declared, South Korea a basket case in South. Korea's first loan finally. In 63, was for a road and their second loan was for education, and they, were ridiculed. By, bank staff, we're taking a loan for education but, the, fact that they've invested in it China's done the same Viet Nam's done the same Singapore's, than the same you, know these, the countries that have invested. In health and education before. The World Bank thought that they should are, the ones who are doing so, well economically, and so what we're trying to do is just bring to everyone's, attention so. That they can't ignore it that, investing. In your people in health, and education is, the most important investment you can make for, future, economic growth and they're. Gonna say oh yes we understand, and that's great but, there's no pressure on them to do it this, we hope will create some pressure so how do you think about the, ecosystem. Which, is connected. To health and to, the economy because we know for sure from the work that we do here at LinkedIn that it, really, does effectively, require the famous, village to be. Able to solve some of these problems companies. Educators. And governments. And individuals, and, nonprofits. Actually. All, working, together get. You a solution much further so how do you think about encouraging. The development of that kind of an ecosystem well you know just as to give you an example we've. Always felt that. Healthcare, and education, could. Be huge. Job. Creators because. We're not thinking, creatively. Enough about, who does healthcare work so in, all of a working partners now if that this success, the reason we have better outcomes in, drug-resistant. Tuberculosis and, HIV than, San Francisco general is we use community health workers and the, community health workers visit patients every single day and make, sure that not they're not only not only that they're taking their medicines but they're not depressed, that they don't have other medical problems that they don't have financial problems so that they can't take their medicines and by, doing that we get better outcomes now in country. After country all over the world we, think that instead, of, you. Know. Providing. Subsidies, for fossil fuel which almost so, many countries do if, you remove those and instead, hired a whole cadre of community, health workers and community education workers, community social workers you could actually improve your outcomes very quickly and very rapidly and also, create wonderful. Jobs that, may not be there career. But could be the start of their experience, in formal employment and, then from there move, on to other things so we have a vision for it and our. Annual, meeting which is happening in Bali the. Indonesian snow that they're not going out looking so good on the human capital index, and so they've started a, transformational. Plan to improve and they've, created this, phenomenal. Phenomenal. Community. Health worker program that, is going to bring their stunting, rate down I think very, quickly provide. Early childhood education, and have, an enormous ly positive impact and this is this, is just because I think you know President. Jokowi. And the Minister of Finance he used to work with me at the World Bank Group Sri, Mulyani are our, visionary, and they know that this is an opportunity for them to move financing. In that area and because.
The Ranking is going to come out very soon they're, not gonna have political problems with it and they're gonna in fact have political support, so I, you. Know there are so many job. Rich ways of, improving, your, human capital it makes, just perfect, sense to launch. This right now but they're, gonna be they're. Gonna be people calling for my head up yeah so. I, do want to invite people in the audience to ask questions I have, one more but there's a microphone here in the centre if people do want to ask so, you should feel free if you've got one to head over there um so. One, of the things that LinkedIn has done recently, in. The sort of neighborhood of ecosystems. Is we. Have a partnership, with an organization in India called il NFS are you familiar with them yeah, yeah I've heard yeah I don't know them well so they. Have. What. I certainly. Does the only time I've ever heard of a very interesting way to turn, infrastructure. Investment, into. Investment, in the full-stack, that. Is necessary, to make the economy go, they decide, they're going to build a hospital then. They decide that it oughta make the hospital operate, they need to have a supply chain partner, and so they'll invest in the supply chain partners to get them to the hospital and then, they'll invest in the individuals, who work at the hospital so, that basically they, have a skilled workforce from. The local area and what this has turned into is, ifs. Now operates more than 300, training facilities, across India. They train, basically. People who have no other Avenue no, educational, Avenue towards achievement they, train, them to work, in hospitals, to work at hotels to work in a, wide. Variety of things electricians, and so forth, it. Was actually a really fascinating way in which one company, decided to take responsibility, for the whole ecosystem. The. Reason I bring it up is and, what LinkedIn does is we share our learning opportunities, with them so what. I'm interested, in, how the world bank learns. New. Possibilities. For the things they might do you, mentioned earlier that you. Know and, sort of we know that partners and health inspired, the World Health Organization, to do things differently you're. Moving the World Bank in a different direction now how do you learn from others well. That's why we're here right so my. Former, chief of staff and, now president, vice-president of the middle Middle, East North Africa region Farid is in back of the room he, brought his whole senior team here for three days and. And in it's it's it's two ways I mean the thing we found is that when, we started working. With and you know we're it's so thrilled, about our collaboration with you guys right so we're. Gonna map out you, know what what the jobs are in the world where the skills exist what skills are needed and, I think, this is going to be it's. Going to have really a revolutionary, impact it so we've learned a ton you know done from you guys and we, now are going to, lots. Of different organizations, and we're. Learning from them but we're also challenging, them we're saying look you, know these. Technologies. Could have such a huge impact in the developing world and it also could be very, profitable, for you to, think about the implications. Of your technology in, the developing world but you know what we found was that sitting, in Washington, and then going from Washington, to developing. Countries and then you know we go to other, capitalists. With donors, but, we weren't coming here, and.
I Had I made, my first trip to to, Israel, which has an incredible, entrepreneurial. Environment. And I just realized that we're missing, a lot and so we've made understanding. Disruptive, technology, you know FinTech. Learning. From from, Silicon Valley we made this one of the real. Central. Fossa, of what we're gonna do going forward and so now I mean freed is I think the third, regional. Vice president to bring his whole team out here and so, we need to have that conversation, because there we're not seeing things that you guys are seeing but, also I think what. We found is, that there's, not a single entrepreneur. Out here that. I've met who, hasn't told me we really, want our. Technology. And our insights to, help in developing countries, but, if you don't start, early enough in thinking, about the implications in developing countries I think, you can end up in a place where, you're focusing, your technology, to fill a particular, need in a particular supply, chain and you're, not really thinking about the. Way it might be used much more broadly so. We're. We're doing it very, systematically. By, bringing folks out here and then, literally, every month we have a tech leader coming to the bank and we do a session and you know ask them what they're thinking I've. Learned a lot from people. Like Jack, Ma of Alibaba, you know I visited, I. Visited. Alibaba, you, know in in Hangzhou and I. Have just learned so much from them and I, you, know it strikes, me that what they've done in, in many ways democratizing. Access to capital to markets to marketing, to procurement that that. Could be. What. The answer, or an. Answer for developing countries you know looks like in the future so, we're. Trying to disrupt ourselves and, that's hard I mean it's hard to disrupt, yourself but, we realized we have to or, we're. Gonna make what. I call the telephone pole mistake right and I haven't. Told the story recently but I used to tell it all the time you know about 25, years ago we, had a an intense, argument, at the World Bank about whether we would invest in telephone poles in India right, now that. Was an intense argument, and we decided not to thank. God right but, we almost we, almost started down the path of telephone poles in India and the question I keep asking is are we, doing the equivalent, of building telephone poles in India now and. Essentially. We're. We, are you, know burdening, countries, with white elephant, projects that by the time they're done they're gonna be completely obsolete and the, honest. Answer was we're not sure right, so that's why that's why we're here that's why that's why I'm here today to learn from all of you yeah. John. What's the question, President. Kim thanks, so much for coming here and thank, you for moderating I am.
Lincoln's Chief economist, in. A very distant. Part my past was actually trained, as a development, economist, and so I have great fondness for the, World Bank and what it does going, back many many moons one. Of the things that I remember from my days studying, developing. Economics, is, that a lot of the people that we were studying in emerging countries when they're talking about having capital, for a business that capital, is a chicken, or an. Ox when, they you know we were talking about human capital it suggested it's not going. To college or having really high quality access. To hard surgery, it's about getting a vaccination or, getting deworm, getting. Basic. Literacy and, when. Very, naively when I think about LinkedIn, score membership and our data it's, you. Know a world away from that we're talking about professionals, even in emerging countries you, know a lot of the people that are on their. LinkedIn members currently, in a place like Malawi, or, Laos, are going to be maybe, software, engineers, or maybe expats, that. Said. I there, are places, where these. Two worlds could potentially intersect and I guess I was interested, in your opinion about where you think you, know the biggest most fertile avenues. For, collaboration. Between our two organizations are yeah. So. You. Know. One. Of the things that that has. Been really striking to me is that. Most. People you. Know the folks down the road at singularity University, had. Told me that probably, by 2025, everyone, in the world will have access to broadband whether it's 5g, or or whatever. It might be by then but, 2025. Maybe 2030, at the latest everyone, will have access to broadband so, everyone will have access to a smartphone they may not own one but they'll be able to watch one, and so, we know what happens, when, you get access to broadband in a smartphone your aspirations, go up right so I wouldn't. Be so sure that those, aspirations. Are going to be so different for very long and we, also and. You'll love this as an economist, our economists, have studied what. Happens, when your reference, income goes up that, means you know if you the. Income to which you compare that your own for. Centuries, it's been that. You know the Joneses right then the folks next door but. It's not the folks next door anymore it's the folks you see on your smartphone and so, we now know that if, you if your reference, income goes up 10% your. Own income has to go up 5% for you to maintain the same level of satisfaction and, as an account you know we know how to measure satisfaction. Now right but, if you're a poor person if your. Reference income goes up 10% your, income has to go up 20% to. Maintain the same level of satisfaction so. One. Of the biggest worries I have is that, aspirations. Are going to explode, all over the world and we are not going to be able to keep up in terms of opportunity, right and so, we. Have completely, changed the World Bank into, an organization, that, focuses less, on being. A lender and a provider of capital but, being but instead being a facilitator of capital so just you know as an example instead. Of giving a loan to a private sector company we. Create a loan, instrument, where we take first loss and then, we, we. In taking first loss we, do risk the the, senior tranche and then, insurance, companies can and so we you know we've turned a, hundred, million into a billion and, that's, what we're trying to do because that's the scale that. We're going to need to go to to. Be able to even begin to touch these. Rising. Aspirations right, so so. For, us. Being. In the middle of the knowledge economy and being able to move knowledge, around and being able to understand how you guys are moving knowledge, around is critical. And so that's why I think this first the, first step that we're taking is we're going to specific, cities with, you with you guys and looking. At the nature of of. The. Needed, skills. And of. The existing, skills in that area and, I just I just think you know giving people, all over Africa, a sense of where the opportunities, are but also giving.
Them A sense of what they might want to study in the future because, that's where, the needs are I think, that's revolutionary, and then once we get that going, my. Hope is that we will find other things to do together right I just think I think you know if we can get this right this, will have a huge impact on, the. Movement of people around, Africa, and I'm telling you you, know both. Chancellor, Merkel and president, McCrone talked about this all the time this is the biggest thing we're doing with both Germany and in. France which, is what they called the compact with Africa, because. They will be they're very explicit, about it they said you know we saw from the Syrian refugee crisis that that. A relatively, small, number of migrants, almost. Changed the character of what life in Europe was like and if. We, don't invest in in. Africa, you know in the Sahel in Nigeria, Ethiopia if those countries fall. But, if those countries collapse, in some, way then. Life. In Europe will change fundamentally right, and so the, good the good news that these people are so that these two are so visionary, that they know that the answer is to develop, Africa, and so, we, feel that what we're doing with link with LinkedIn is a real, advance. A real important. Step in the area of really thinking about what the skill mix is in Africa and what we can do to. Really provide people more opportunities, to use their skills and then to know what skills they need to get so, and. And, you. Know it what, we have found is that when you start a collaboration you, have to be concrete and you have to be very specific and then from there it can, grow so we're thrilled, about this yeah. Thank. You thank, you again President came for joining us and thanks Alan my name is Nick T Porter I'm on the public policy team of. All the current, disruptors, that are out there in the work force gig economy autonomous. Vehicles, what what, concerns, you the most. Yeah. So. The. Two things that concern me the most are what, I just talked to you about the, rise in aspirations. And our inability, to meet. Those, demands right you. Know the story tells my, parents. Through. Just. Sheer. Dumb, luck got, to the United States in the, mid 1950s and it. Was just luck that got them there they met here in the United States married. My older, brother was born in the US and then they went back and cuz that was the idea to go back but. Then we moved back here because their aspirations, had had and had been, been. Raised up by living, in New York City right so, that's, happening everywhere, in the world now and it's not happening by, having to come they're seeing it on their smartphones so I'm really worried about this the, other thing I'm really worried about frankly, is climate change I mean, we're looking at this hurricane Florence right and it. You. Know have, hotter. Air holds, more water and. Warmer. Water. Makes. Hurricanes. More serious, and, again. I see it all over the world and I think we're not moving fast enough and so, you.
Know Having, been a a, physician. And activist, I had, always seen. The solution to be more more, giving by rich countries but, at this point it's not anywhere, near enough, and and. The. The. The the speed, and. Power. Of philanthropy, will never, meet. The. Demands that I'm, talking about in climate change or in aspirations, and so, the most important, thing is that we've got to move capital to where it can be used most effectively but. If you look at most of the people who are, owners. Of capital or acid or acid. Allocators, for. Them all, of Africa is just a single you, know a risk. Group, and it's, all risky right so there's, so many things we have to do to make the system work for everybody but those are the two you know everyone's. Rising aspirations and, climate, change and we're way behind on both of them I. Have. A question from the stream so from the LinkedIn employees that are watching in other locations as. Automation, takes away more and more jobs what. Are your thoughts on the need for more expansive. Social, protection, or, even universal, basic income. You. Know so the gig economy. My. My, son just start, you, know college a couple weeks ago and, he's. Basically preparing, himself to do, bunches a bunch of gigs right I mean he's gonna that's, how his life he thinks is going to be especially in the early part and. That's fine for him right but, but, in Africa seventy, five percent of all working, people are in, informal, employment and. They don't have any social protection, so, the. Informality, that, may lead to you. Know dynamism, and you. Know a variety of careers, for. You know let's say Ivy, League graduates, can. Lead to disaster for you. Know people. Living in Africa for example so. Social. Protection is really important, and what, and what we're saying in, this report, on the future of work is that social, protection should follow people, regardless. Of their employment status right and so so. Much so, many countries, social. Protection is related to a job and and, almost always related to a formal job so. We're trying to figure out how to. How, countries. Can provide social protection to everybody, whether. They're in, informal, employment or not and so this is something we're doing along, with the International Labor Organization and, it's an extremely high priority. Now you. Know there are different views of this and so Jack Ma told. Me he said you know my. Grandfather, worked, six. Days a week six. To 18 hours a day and he felt very busy I work. Five days a week eight. Hours a day and I feel very busy, my, children are going to work three hours a day three. Days a week and they'll feel very busy right and that's. You know his, vision is that not everyone's going to be working and there. Will be enough income, around. For everyone and there, will be a lot of leisure time activities, well I I have, to tell you having, worked in some of the poorest countries for a very long time I don't, think that's what's going to happen in a lot of poor countries III. Think what it's going to mean is dislocation, I think it's going to mean that. People. Will, on the one hand see what life could be like and then feel. That their, lives are pretty hopeless and I, think you're gonna see the potential for fragility, conflict, violence all those things that we already see in so many places so, social protection is a critical part of it but. The other part human you, know they're, not gonna feel hopeful, unless. They have had the kind of health care and education that that. Makes them feel that they can compete it, you. Know our sense is that if people feel like they've had the kind of health care and education and they, feel that they actually can compete, it's, different, from, feeling, like just because of the accident of their birth that. They've been dealt. A hand that, that literally. Is excluding, them from the global economy that's when you're gonna have the biggest problems, with with, unrest I think yeah. My. Name is Shelley I'm from the economic graph team we work very closely with the World Bank research, yes thank you for your work I. Mean I'm looking at some of the things that you guys are finding it's just so fascinating, right you know we're where middle the middle eastern north I just looked at a graph today where, the Middle East and North Africa are gaining skilled. Workers and where they're losing skilled, workers - very, cool stuff thank you thank, you. So. As, we talk about the future of work one. Of the things that come to mind is automation, the impact of automation in AI and.
Work Force displacement and, one. Of the industries, that come to mind is, self-driving. Cars or autonomous cars and as, we think about these industries, are newer industries, that, are emerging to disrupt, these, disruptive, industries, so, for example companies like uber and Airbus are working on, autonomous. Vehicles. For. Basically. They're. Called self piloted, passenger, aircrafts. So. They're replaced let, you guys take those first flights before I get us. They're, actually testing these right now they're supposed to be a short-range, urban. Transfer to replace short-range. Urban transportation. Horizont, trains so. Do you think that the rate at which this change is happening is, sustainable, for the economy, and what can we do to prepare for it well you know the thing is I don't think we have a choice I mean my understanding is, that this is going to happen whether we like it or not and so, the reason we're here, is we're. Not trying to to to. Readjust. Our attitude, to say look. It's. It's not a matter I mean I to. Be honest you know three. Four years ago we. Were only saying, things like oh this, is gonna be terrible in developing countries and we've, completely, changed our tune to say well it could be terrible in developing countries but we better get our heads around this to see how this might be helpful and one of them one, of my favorite. Companies that I talk about all the time zip line right they they're, using, their drones to. First deliver, blood in Rwanda, then. They're now, they're in many, countries and are, delivering, health care products of all different kinds they've, just begun a conversation, with Indonesia a, country, with tens of thousands of islands, and now. Are trying, to think about completely, disrupting, the, nature of healthcare by not having to develop these supply chains for, blood and other medical products but then using, using, drones and, for. Them they. Had to get. Into Rwanda early, and they, adjusted, the way they thought about their technology because. Of their experience, in Rwanda, that's one example but. We'd like to see hundreds, of other examples where. People really see that, they can make a profit that they can have a huge social, impact and that, they can take the best technology, and then maybe even learning to, call it reverse innovation right, you know General Electric was famous for having gone into India and in. And had to rethink the way they built ultrasound, machines and they found that the new machines were so useful that they're now in all the hospitals in the United States right so that's. What we hope we see but. You, know our experience now has been that unless we keep knocking at the door and keep putting, problems, in front of the most brilliant innovators. They're not going to think necessarily, about, implications. Of their technology, say for Central Africa right but if we keep if we keep doing it I found. That that entrepreneurs. Out here are really excited, about the possibility, that their, great, technology, could, transform, the lives of somebody in central, Africa. Ann. Arbor is owned by. Dr.. Kim thanks for being here I'm really interested in hearing your thoughts on, China, and Africa and, the increase of Chinese, developmental, finance in Africa I know that as a historically, appreciate. Like Western institutions, sometimes the World Bank can run up against critiques about neo colonialism are, just different feelings. That the West can be very paternalistic, and in doing development work in Africa whereas China seen as more of a South, South partner, that's helping.
A Fellow emerging. Economy, so. It's wondering how you perceive, them as a player in the space of any, other thoughts there well. You know the. The. The role, of China, first, of all there are just some basic facts. About China that are really important to know first of all they're they're, about a I don't know 15 16 trillion, dollar a year economy just behind the u.s. in terms, of being one of the largest economies, in the world but. Just like Korea, and Japan, 20-30. Years ago they, have an extremely, high savings, rate so, that so, the the population saves. Their money and so, in the u.s. the. Savings, rate as a percentage of GDP is actually negative people, are in debt right in China, is 40 percent of GDP so if you have a 15 trillion dollar economy and an, additional, 40 percent going, into the banks in terms of savings that's, a lot of capital that, you have to get a return on over, time right, and so, that's. That's just a fact about China and they continue to grow at six percent right so this is you. Know and there and China is only at 25 percent of u.s. GDP per capita and, and. Japan. And Korea didn't start slowing down until they reached 75, percent of u.s., GDP per capita so there's a lot of room here for China to grow look. I I know the. Chinese leaders in, you know the you know in a bizarre twist of fate President. Xi when. He spent time in the Midwest, United States, to. Learn about American, agriculture, he, actually stayed for three weeks in my hometown in Iowa that I grew up Muscatine, Iowa every time I see him we talk about Muscatine, our friends in Muscatine Iowa. So, I I know the leaders and I, and I know that, what they what what they want the world to see is that. They're they really want to find what they call win-win solutions, where, they get a return on their capital right, and and, not, necessarily, huge returns in their capital but reasonable, returns in their capital and they. Provide. Risk. Capital meaning that they were acting, they're actually putting their capital, at risk in. Projects. To develop infrastructure. In Africa they, you know there's a lot of critiques one of the critiques is they, need to be more transparent about, who they're giving the money to what, the interest rate is so that we know where, these countries stand and, you. Know this is something I've talked to them about directly, and they know that they need to do that they know that that's the direction that they need to go and. If. You ask the Africans, I mean there's it's some more critical, of what China has done others, are saying hey they're, the only ones putting risk capital into infrastructure, projects, in our, countries, and so they're. They by definition have, an important role to play so I. Think. That there have been some hiccups along the road I mean I think that, there. Are things right now that the, President Xi has said he wants to improve but. Their commitment, to creating, win-win, situations, in Africa, it's very, real I can tell you it's very real, and so. The, the the the, task, is not to critique back and forth but the task is to say okay so, you have a 15 trillion dollar economy with a 40 percent savings rate and the president, wants to invest in infrastructure. In Africa that's. Positive, that's a good thing right now, you, know how do we make it work better how do we make it more transparent how, do we make, sure that these projects actually are contributing. To job growth in these countries well, that's, that's something that we're doing right now and it's in the context of the belt and road initiative and you. Know there will always be critiques, but I think what the Chinese will point out is that. There. Were countries that engaged in colonialism. And they're. Not one of them. Right. So you have to say compared. To what what. They're doing now compared. - what they didn't force any country, to learn Chinese right, they, didn't force any country, to adapt, mannerisms. And legal structures, that, look like the colonizing, country, and you. Know in quiet. Moments you, know over a Maotai they'll tell me you know we were never colonizers. So. I just think historical. Reality, has, to be brought into the picture we have to have a fair. Evidence, based historical, conversation, from my perspective the, fact that they're putting so much risk capital into, places that so badly needed, is something that we can work with okay so. Much thank. You thank.
You. Thank and you know let me just say from, the from, the all, of the World Bank employees, any of you who are working with us thank, you for doing it it's, one of the coolest, collaborations, we have let's keep it going.