Targeting employment expansion, economic growth and development in sub-saharan Africa: outlines of an alternative economic programme for the region

Abstract

This paper discusses an alternative economic framework for Africa, one that would create an environment supportive of improvements in the ‘real’ outcomes, which Mkandawire emphasizes. Instead of targeting inflation or financial variables, we propose a framework that would allow targeting of real outcomes, in particular, employment and living standards. There is need for such ‘development-targeting’ as an alternative to the standard prescriptions of economic stabilization. The ultimate objective of economic policy should be improvements in well-being and human development, as reflected in the MDGs. Much of this report focuses on employment as an intermediate ‘real’ side outcome of economic policy. The reason for the emphasis on employment is simple: employment is one of the most significant channels through which growth translates into sustainable poverty reduction. Therefore, it represents one of the primary means through which the broader objectives of human development can be pursued. In this report, it outline the elements of a development-targeted economic framework aimed at creating decent employment opportunities as a path to realizing the core human development goals in Africa.