Policies for employment-intensive growth in the LDCs

Chapter 4 of this Report argued that in the medium to long term, the only sustainable way of ensuring that the LDC economies generate jobs in sufficient quantity and quality is through the development of productive capacities. However, while in theory the private sector should generate most jobs, it is still weakly developed in these countries. This requires a dual role for the State: enacting policies to promote output expansion and employment creation in the private sector, and directly generating jobs through the expansion of public employment in socially essential or desirable activities. Achieving these objectives will require implementing a broad range of mutually supportive policies aimed at building productive capacity and fostering structural transformation. Policy interventions should cover three broad areas: macroeconomic policies, enterprise development, and public sector investment and actions for job creation. This chapter presents the broad policy direction that LDC Governments need to follow in order to attain employment-rich growth and to establish the strong investment-growth-employment nexus described in chapter 4.

Related Subject(s): Economic and Social Development