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An Employment-Targeted Economic Program for Kenya

An Employment-Targeted Economic Program for Kenya

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`Three decades after the International Labor Organization's ground-breaking study, Employment, Incomes and Equality, Profs. Pollin, Mwangi and Heintz re-open the path with 21st century economic analyses and instruments. Kenya's policymakers would be unwise not to study these ideas, and then study them again.' - Mbui Wagacha, Former Director of Research, Institute of Policy Analysis and Research (IPAR), and Economic Consultant to the African Development Bank and United Nations Economic Commission on Africa `A key challenge faced by African countries today is to translate economic growth into meaningful improvements in living standards at the household level. One of the effective means of addressing this challenge is to design macroeconomic and sectoral policies that explicitly target the creation of decent employment to allow households to overcome poverty. This detailed and innovative study on Kenya provides a valuable contribution on how this can be accomplished by offering a wide range of policy suggestions.' - Leonce Ndikumana, United Nations Economic Commission on Africa `Average incomes in Kenya have been stagnant for about a quarter century and the rate of investment has declined. This important study contains a strategy for development that focuses on creating employment that lifts workers out of poverty by increasing public investment in roads and water infrastructure and promoting private investment in small enterprises by increasing the quantity of credit and lowering its cost. The strategy advocated stands in sharp contrast to those who believe the solution to Kenya's economic problems is to cut formal sector wages and increase "flexibility" in the labor market.' - Keith B. Griffin, University of California-Riverside, US The Kenyan economy has experienced improved economic growth in recent years, and the government has maintained a commitment to generating 500,000 new jobs per year. But the country still faces severe problems of poverty-level employment - people working full-time yet living with their families in poverty. This study develops detailed proposals for greatly expanding decent employment opportunities in Kenya, and to accomplish this in a manner that also creates a wide range of employment and business opportunities, including those for small and medium-sized enterprises, agricultural small holders, commercial banks, and microfinance institutions.