WASHINGTON -- The International Finance Corporation (IFC), the private investment arm of the World Bank Group (WBG), aims at providing catalyst for economic growth and job creation in emerging markets as the world is grappling with an uneven economic recovery, said IFC chief Cai Jinyong.

BRIGHT SPOT

"The world is on the way to recovery five years after the outbreak of the financial crisis. Some regions and countries are recovering faster than others," Cai,CEO of the IFC, said in a recent exclusive interview with Xinhua.

"What is unique during this economic cycle is that emerging markets have been holding up pretty well in spite of big challenges," Cai said in his office at the IFC headquarters based in Washington D.C.

Due to factors including favorable demographics and increasingly improved capital markets, emerging markets have been more resilient in this economic cycle than prior ones. The economies of developing countries will continue to grow and will be a "critical part" of the global recovery, said Cai, who is also the Executive Vice President of IFC.

Despite the economic shocks caused by eurozone debt crisis and anemic recovery in some advanced countries, the IFC CEO has seen firsthand during his business trips that economies in Africa, East Asia, as well as other developing countries are growing robustly.

"That's where the hope is," stressed Cai, adding that he is very hopeful that Africa, Asia and quite a few Latin American countries will continue to register strong economic growth.

"We serve our client countries. Because they are growing, that' s where our activities are," said the chief of the IFC, the largest global development institution focused on the private sector in developing countries with 184 member countries and a business portfolio of about 45 billion U.S. dollars.

DEVELOPMENT CATALYST

In his view, the IFC acts as a catalyst for development as it brings in other investors to developing countries, generating economic growth and bolstering global connectivity, particularly in low-income countries.

Cai cited Myanmar as an example to further illustrate his point. Myanmar has rich natural resources and hard-working people, but it was separated from global economy in the past decades. Located in the world's fastest-growing region, the nation was determined to reconnect with the global economy, he noted.

The IFC and WBG are very committed to being part of Myanmar's economic transformation, helping the nation build basic infrastructure and banking system, creating a sound business investment environment, and improving education and healthcare services, Cai said after returning from a trip to the Southeast Asian country.

Cai led a high-level WBG delegation to visit Myanmar last month and met with government officials, private sector partners and other stakeholders, the first time an IFC head has visited the Southeast Asian country in decades.

The WBG is discussing with the government to invest in electricity generation projects to give five million more people reliable electricity, because at present, only one in four people in Myanmar has access to power supply.

"If you look at Myanmar today, the time has stopped for the last several decades. But the world has learnt a lot during the past three to four decades in how to develop the economy," he said.

Creating good-quality jobs is key to poverty eradication in many countries including Myanmar. The world should endeavor to debottleneck the obstacles to job creation in the private sector by enhancing transparency, fighting corruption, improving the investment environment and financing conditions for businesses, according to Cai.

The IFC can provide expertise, training and capacity building for emerging markets in a bid to help entrepreneurship and the private sector prosper, Cai stressed.

At least 600 million jobs must be created by 2020, mainly in developing countries, just to keep up with global population growth, and the answer lies with the private sector that provides nine out of every 10 jobs, showed a recent IFC report on job creation, which remains a priority task for policymakers in many countries.

"We can't create 600 million jobs on our own. We are very much a catalyst. We are viewed worldwide as very objective and capable in helping clients in developing countries to create jobs. As the global leader in small and medium enterprise financing, the IFC has a lot to offer for development," he said.

The IFC's main activities help developing countries achieve sustainable growth by financing investments, mobilizing capital in international financial markets, and providing advisory services to businesses and governments.

"What's important is who can be the ones to create real jobs in the private sector," he argued.

INTERCONNECTED WORLD

The world is diversified and different countries are closely- intertwined with each other. Developing countries cannot be successful without the developed ones. Despite the fast growing pace of developing countries, they only account for a small share of the global economy when compared with developed nations, said Cai.

"In today's world, we have to live with each other. Developing countries including China benefit a lot from the markets of developed countries," stressed Cai, who has worked as an investment banker in industry titans including Morgan Stanley, China International Capital Corporation and Goldman Sachs Group for about two decades.

The 53-year-old economist was tapped by WBG President Jim Yong Kim as the CEO and Executive Vice President of the IFC in August 2012, the first time for a Chinese to lead the IFC since its inception in the 1950s.

Cai reckoned China has performed well economically in past decades, saying "economic fundamentals of China is strong and will continue to be strong."

"Many of the lessons learned and experience accumulated in Chinese economic development have relevance for other countries and can be useful to IFC's clients." China has a lot to contribute to the global economic growth with the fast-growing middle class that have a huge appetite for new products and services, he contended.

"I am a believer in market economy, trade and connectivity which can lift boats for all the people. I hope to facilitate trade and investment. Protectionism is not helpful to anybody," said Cai, who has more than 20 years of experience in the financial service industry and development.

The ongoing urbanization in China is unprecedented in human history in terms of its scale and speed, but a nation cannot develop efficient urban centers without successfully tackling environment challenges and unleashing vitality of the private sector, Cai cautioned.

He added that the IFC can serve as an important bridge between China and the rest of the world in facilitating investments and knowledge sharing.