The Least Developed Countries Report 2013

Growth with Employment for Inclusive and Sustainable Development

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The Least Developed Countries Report 2013 analyses the employment challenge of the Least Developed Countries (LDCs). Demographic projections indicate that around 225 million people in LDCs will be entering the labour force until 2030. Hence, creating sufficient and decent employment opportunities for all will be a real challenge. However, recent experience shows that the link between growth and employment in LDCs is not automatic. The LDC Report 2013 aims to raise awareness and galvanize the attention of policymakers to the magnitude of the problem. It also reviews and analyses recent labour market performance of the LDCs, compares it with the future needs in relation to job creation, and elaborates concrete policy recommendations for growth with employment.

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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.

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