# 1 DEVELOPMENT AND EMPLOYMENT: A POLICY FRAMEWORK Proposed by Fred Fluitman, Presented by Mostefa Boudiaf International Training Centre of the ILO Turin, Italy, 2007

# 2 the usual suspects: development economic growth national income gross domestic product production factors technique and technology employment

# 3 development = more than mere economic growth

# 4 economic growth is the relative increase in the national income the so-called real GNP

# 5 the national income is closely related to total output of the economy the so-called GDP

# 6 gross domestic product measures the output produced with domestic inputs, or production factors notably capital and labour

# 7 these production factors may often be used in different combinations that are equally efficient that is, from a technical point of view

# 8 such combinations are also known as techniques; the range of techniques is known as technology according to economists

# 9 choice of technique is, theoretically at least, decided on the basis of factor costs or economic efficiency

# 10 economic growth is explained by an increase in the quantity or quality of production inputs

# 11 economic growth is an essential ingredient of development but…..

# 12 development = more than mere economic growth

# 13 development = economic growth that is shared and sustainable

# 14 development = economic growth with social change

# 15 development = economic growth with poverty reduction

# 16 development = economic growth with more & better jobs

# 17 development depends on: agreed objectives a conducive environment pertinent policies long-term investment effective institutions on each and all of the above

# 18 investment institutions policies income growth external factors infrastructure

# 19 agreed objectives economic growth social equity rural development basic education for all clean air safe work such as:

# 20 agreed objectives

# 21 a conducive environment

# 22 a conducive environment peace and stability health and safety fertile land and good weather relevant infrastructure favourable external factors -----

# 23 pertinent policies macro-economic adjustment employment promotion social protection poverty reduction gender equity environmental protection ----

# 24 long-term investment human capital –health –education and training physical capital –infrastructure –plant and equipment –repair and maintenance -----

# 25 effective institutions policy making education and health legal system civil society business services -----

# 26

# 27 African labour markets urban rural wage- employed mostly self- employed informal sector formal sector mostly agriculturalnon-agricultural

# 28 there are, by far, not enough formal sector wage-jobs for all who are seeking one a majority of the labour force are underemployed, as own account workers in subsistence farming or in the informal sector

# 29 no work means no income, means poverty very few labour force participants in Africa can afford to be unemployed

# 30 low productivity means low income, means poverty the working poor represent a majority in the labour force of most African countries

# 31 reducing poverty means: achieving growth in output, by increasing both the quantity and the quality of labour inputs the labour force in most African countries grows at 2.5 per cent per year or more

# 32 reducing poverty means: achieving growth in output by creating additional jobs and raising productivity the labour force in most African countries grows at 2.5 per cent per year or more

# 33 O =+ O W W

# 34 more output more and better jobs more productive workers related policies:

# 35 fiscal and monetary reform removing trade restrictions broadening access to credit as well as access to technology investing in infrastructure more output

# 36 promoting the use of efficient, yet employment-intensive techniques reallocating investment in favour of labour-absorbing sectors targeting the disadvantaged improving conditions for small and micro-enterprises more and better jobs

# 37 education and training heath and nutrition appropriate technology safety at work more productive workers

# 38 IN struction vestment novation stitutions frastructure centives where policy comes in

that’s allthanks

# 40 International Training Centre of the ILO,Turin, Italy

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