Abstract

‘Inclusive Growth, Full Employment, and Structural Change: Implications and Policies for Developing Asia’ discusses policies to achieve inclusive growth in developing Asia, including those relating to agriculture, investment, certain state interventions, monetary, fiscal, and the role of the state as employer of last resort. Felipe argues that in order to deliver inclusive growth, Asian leaders must commit to the goal of full employment.

'I highly recommend this book as an excellent contribution to development economics and as an extension of the work on the Employer-of-Last-Resort approach to full employment policy to the developing countries.' —L. Randall Wray, University of Missouri-Kansas City

'If only because it gives due attention to full employment as a driving force of growth, and for its emphasis on Keynes, Kalecki, and Kaldor, this book is a must-read. Jesus Felipe argues rightly that developing countries need to coordinate policies in several areas to achieve full employment. The policy conclusions are provocative, thoughtful, compassionate, and realistic.' —Salim Rashid, University of Illinois

Jesus Felipe is Principal Economist with the Central and West Asia Department of the Asian Development Bank, Manila, Philippines. His books include 'Labor Markets in Asia: Issues and Perspectives' (London, 2006).

'Jesus Felipe has unrivalled knowledge of the economies of Asia and of the challenge of employment creation. The book is essential reading for all those concerned with unemployment and poverty in developing countries. It is a beautiful and impressive blend of impeccable theory, fascinating empirics, and personal passion.' —Tony Thirlwall, University of Kent

'Inclusive Growth, Full Employment, and Structural Change: Implications and Policies for Developing Asia' discusses policies to achieve inclusive growth in developing Asia, including agriculture, investment, certain state interventions, monetary, fiscal, and the role of the state as employer of last resort.

Felipe argues that full employment of the labor force is the key to delivering inclusive growth. Full employment is the most direct way to improve the well-being of the people, especially of the most disadvantaged. Since unemployment and underemployment are pervasive in many parts of the region, Asian leaders must commit to the goal of full employment. The book also analyzes the region's phenomenal growth in recent decades in terms of structural transformation. Accelerating it is vital for the continued growth of developing Asia. But efforts to achieve full employment might be held back given that structural transformation requires massive labor shifts across sectors, and these are difficult to coordinate. Moreover, the goal of full employment was abandoned in the 1970s, and governments and central banks have since concentrated on keeping inflation low.

'Jesus Felipe provides a masterful analysis of growth in Asia by highlighting the role played by structural transformation... The road ahead for developing Asia is difficult, but this magnificent book will make the task more manageable for policy makers and analysts.' —Ricardo Hausmann, Center for International Development at Harvard University

'This book demonstrates that full employment is not only possible in policy terms but also necessary, and that it is the very underpinning of inclusive growth. Not to pursue it is to invite human pain, social and political instability, and economic underperformances.' —Duncan Campbell, International Labour Organization

'This book is a very important piece of work. Development economists as well as a wider audience with interest in development issues will benefit from it.' —Santonu Basu, Queen Mary, University of London