World Bank | The Development Podcast

Episode: Getting Development Done: 2025 in Review and Look Ahead
Date: December 19, 2025
Host: Tony Carasani
Guests:

• Anna Bjerde (World Bank Managing Director of Operations)
• Raj Kumar (President and Editor-in-Chief, Devex)
• Catherine Kamanu (Farmer, Kenya; guest segment)

Overview

In this flagship year-end episode, host Tony Carasani is joined by Anna Bjerde and Raj Kumar to reflect on the major developments in global development over 2025. The conversation critically reviews economic challenges, debt pressures, shrinking development aid, innovations in development strategies, and looks forward to transformative trends such as digitization and AI in development for 2026. The episode also features the personal perspective of Kenyan farmer Catherine Kamanu, sharing how ground-level adaptation is key amid global uncertainty.

1. Key Themes and Main Topics

Resilience in Uncertain Times

Despite a turbulent year marked by shocks, economic unrest, and funding shortages, a central theme is resilience—both of economies and development institutions adapting to a shifting landscape.

Debt, Aid Cuts, and Shrinking Fiscal Space

Debt burdens and cuts in foreign aid have forced many development organizations and countries to rethink, restructure, and seek new partnerships and financing models.

The Centrality of Jobs

Job creation emerges as a new “North Star” for the World Bank and its partners, vital for demographic shifts and harnessing the energy of young populations—especially in Africa.

Digital Leapfrogging: AI and Tech Solutions

The digital revolution, and particularly advancements in AI, is rapidly changing how development is planned, delivered, and tracked. Tech is increasingly seen as the primary driver of efficiency and scalability.

Case Study: Local Adaptation in Kenya

A conversation with farmer Catherine Kamanu offers a window into on-the-ground adaptation to market and environmental shocks, and the value of ecological farming practices.

2. Detailed Discussion Points & Insights

Reflections on 2025: Reasons for Hope

Anna Bjerde:

• Countries have shown “resilience” by adapting quickly, seeing unexpected growth, and managing to ease inflation. (01:16)
• Markets are re-opening and access to finance is slowly improving.
• Digitization and adoption of AI in developing countries have accelerated opportunities.
• Quote:

  "The outlook or the performance on growth has actually ended up being a bit better than we expected as the year went through." [01:30]

Raj Kumar:

• Philanthropy is rising: "We now have several philanthropists that are bigger than individual countries in terms of their annual giving." [02:49]
• The world avoided worst-case scenarios, though many still struggle.

Persistent and Emerging Challenges

Debt and Fiscal Constraints:

• Many developing countries have paid more on debt than they received in aid for three years in a row. [03:41]
• “Aid cuts have hit a number of countries as well. I'd say the biggest thing is just the uncertainty.” – Raj Kumar [03:20]

The Jobs Crisis and Demographics:

• World Bank's new mission: Operationalizing job creation, identified through three pillars:
  • Foundational infrastructure
  • Enabling policies/regulation
  • Mobilizing private capital
• Focus on five sectors:
  • Infrastructure, health, agriculture, value-added manufacturing, tourism
• Quote:

  "Everywhere you go... the issue of jobs is everywhere." – Anna Bjerde [04:02]
  "We estimate about 1.2 billion over the next 10 years will enter the job market in Africa." – Anna Bjerde [05:01]

Strategic Adaptation by Development Organizations

Adapt to Less Funding:

• Many NGOs and organizations are shrinking, merging, or closing programs due to budget cuts. Some innovate by changing business models to social enterprises.
• Quote:

  "They're firing people, they're shutting down offices... Their budget doesn’t allow it." – Raj Kumar [06:29]

Efficiency and Collaboration:

• The World Bank is pushing for increased focus and selectivity while leveraging partnerships with private sector arms (IFC, MIGA).
• Large flagship initiatives include "Mission 300," "Agri Connect," and efforts to reach 1.5 billion people with better healthcare. [08:15]
• Importance of accountability and maximizing impact for every dollar spent.

Institutional Reform and Culture Shift

Insider vs. Outsider Perspectives:

• External critiques remain: “They say these are institutions that are very insular, they're slow moving…”

• Positive internal changes:

  • Reduction in project prep time (by 26%), adoption of financial innovations (e.g., originate-to-syndicate), and culture shifts towards knowledge-sharing and scalability.
  • Quote:

    "A lot of what Ajay Banga has been calling for... are pretty key to knowing if the bank’s actually working in the right direction for its shareholders and its borrowers." – Raj Kumar [10:19]

• The need to pair operational changes with cultural buy-in for sustainable progress.

Looking Ahead: 2026 and Beyond

AI & Small-Scale Tech:

• “Small AI” is creating revolutions at the grassroots, e.g., Kenyan farmers using phone apps for diagnostics (Rosalind’s story).
• Quote:

  "Small AI is a revolution that's happening throughout the developing world, particularly in Africa." – Anna Bjerde [14:03]

Digitization as a Survival Strategy:

• Organizations must leverage tech to do more with less.
• Digital tracking, real-time data, and AI-driven insights can replace outdated paper systems.

Demographic Pressures:

• The labor force bulge, particularly in Africa, could be an asset or liability depending on job creation and meaningful opportunities for youth. [15:32]

Wishes for 2026:

• Raj: Humorously wishes for a “slow news year” so his journalism team can rest—recognizing 2025's extreme turbulence. [16:32]
• Anna: Hopes to “make a dent” on big flagship initiatives now that strategies and partnerships are in place. [16:59]

3. Memorable Moments & Notable Quotes

• Resilience despite adversity:
  “It’s a lot better than things could have been.” – Raj Kumar [02:35]
• On debt and development needs:
  “Developing countries actually paid more than they received. And this was three years in a row. And that's really hard at a time when fiscal space is already small and there's so much need for development.” – Anna Bjerde [03:41]
• On transformation in organizations:
  “Are there other ways we can adapt our business model? Can we act more like a social enterprise?” – Raj Kumar [06:54]
• On scaling innovation:
  “The issue is that it becomes one or two projects when we want like 30 to 50.” – Anna Bjerde [11:22]
• On demographic change:
  “If they don't find meaningful jobs… we have a real problem on our hands.” – Anna Bjerde [15:32]
• On digital leapfrogging:
  “Moving to digital systems, being able to track that from anywhere in the world, see what's working, fund more of that, less of the things that are not working. AI is a piece of it.” – Raj Kumar [14:37]

4. Grassroots Perspective: Farmer Catherine Kamanu (Kenya)

[18:06–20:46]

• Catherine shares her journey transitioning from accounting to greenhouse farming in turbulent conditions—marked by unpredictable rains, droughts, and fluctuating market prices.
• Losses were frequent, but rehabilitation through caring for soil, water sources, and bee populations led to “breakthrough” results.
  • Quote:

    "If you take care of your soil, you're going to produce more… if I work with nature, it's going to favor me." [18:54]

• Looking to 2026: Catherine plans to expand her efforts, emphasizing education and awareness—encouraging others to “work with nature” instead of against it, and build resilience to market shocks.

5. Timestamps for Key Segments

• 01:16–02:35: Anna Bjerde on positives and resilience in 2025
• 03:11–05:50: Discussion of challenges: debt, aid cuts, and the central role of jobs
• 06:23–07:55: Raj Kumar on how development organizations are adapting to budget cuts
• 09:12–11:24: On institutional reform in the World Bank and the need for faster delivery
• 12:39–16:23: Predictions for 2026—AI, digitization, and demographics
• 16:32–16:59: Hopes and wishes for the coming year
• 18:06–20:46: Farmer Catherine Kamanu’s reflection on adaptation in Kenyan agriculture

6. Closing Thoughts

The episode highlights a pivotal moment in global development—where resource constraints meet innovation, and the need for inclusive, tech-enabled, job-focused progress is palpable. From institutional boardrooms to small farms in Kenya, the theme is clear: resilience and adaptation are vital, and technology holds the key to delivering meaningful, scalable impact in the years ahead.