Can "gazelles" create jobs and reduce poverty in developing countries? Researchers at RTI International think they might be a key resource in generating the hundreds of millions of jobs needed to absorb new entrants to the global labor market over the next decade. The term "gazelles" refers to a special class of businesses -- most of which are small and medium enterprises (SMEs) -- that have been found to create a vastly disproportionate number of jobs in the United States. Although the link between SMEs and job creation in the US is well established, comparatively little is known about if and how they drive job creation in developing countries. This research report documents a research agenda that will give developing country governments and the donor community information they need to more effectively support SMEs that generate growth, create jobs, and, ultimately, reduce poverty.
It is becoming known that information and communications technology has the potential to increase development in the areas of health, education, governance, and business in impoverished countries. Thus, new levels of integration and applications must be studied in order to expand this research area further. Sustainable ICT Adoption and Integration for Socio-Economic Development is a pivotal publication featuring the latest scholarly research on current updates regarding adoption, integration, and application of communication devices and applications across the various aspects of human progression. Highlighting a number of topics and perspectives such as inclusive education, e-governance, and e-democracy, this book is ideally designed for researchers, government officials, and academicians seeking current information on the application of new technological tools for both social and economic growth in various countries.
While sharing some characteristics with other middle-income countries, South Africa is a country with a unique economic history and distinctive economic features. It is a regional economic powerhouse that plays a significant role, not only in southern Africa and in the continent, but also as a member of BRICS. However, there has been a lack of structural transformation and weak economic growth, and South Africa faces the profound triple challenges of poverty, inequality, and unemployment. Any meaningful debate about economic policies to address these challenges needs to be informed by a deep understanding of historical developments, robust empirical evidence, and rigorous analysis of South Africa's complex economic landscape. This volume seeks to provide a wide-ranging set of original, detailed, and state-of-the-art analytical perspectives that contribute to scientific knowledge as well as to well-informed and productive discourse on the South African economy. While concentrating on the more recent economic issues facing South Africa, the handbook also provides historical and political context. It offers an in-depth examination of strategic issues in the country's key economic sectors, and brings together diverse analytical perspectives.
This book focuses on how to improve the quality of jobs and meet the aspirations of youth in Sub-Saharan Africa. It finds that a strong foundation for human capital development can be key to boosting earnings, arguing for a balanced approach that builds skills and demand for labor.
Economic and social progress requires a diverse ecosystem of firms that play complementary roles. Making It Big: Why Developing Countries Need More Large Firms constitutes one of the most up-to-date assessments of how large firms are created in low- and middle-income countries and their role in development. It argues that large firms advance a range of development objectives in ways that other firms do not: large firms are more likely to innovate, export, and offer training and are more likely to adopt international standards of quality, among other contributions. Their particularities are closely associated with productivity advantages and translate into improved outcomes not only for their owners but also for their workers and for smaller enterprises in their value chains. The challenge for economic development, however, is that production does not reach economic scale in low- and middle-income countries. Why are large firms scarcer in developing countries? Drawing on a rare set of data from public and private sources, as well as proprietary data from the International Finance Corporation and case studies, this book shows that large firms are often born large—or with the attributes of largeness. In other words, what is distinct about them is often in place from day one of their operations. To fill the “missing top†? of the firm-size distribution with additional large firms, governments should support the creation of such firms by opening markets to greater competition. In low-income countries, this objective can be achieved through simple policy reorientation, such as breaking oligopolies, removing unnecessary restrictions to international trade and investment, and establishing strong rules to prevent the abuse of market power. Governments should also strive to ensure that private actors have the skills, technology, intelligence, infrastructure, and finance they need to create large ventures. Additionally, they should actively work to spread the benefits from production at scale across the largest possible number of market participants. This book seeks to bring frontier thinking and evidence on the role and origins of large firms to a wide range of readers, including academics, development practitioners and policy makers.
A large percentage of workers and firms operate in the informal economy, outside the line of sight of governments in emerging market and developing economies. This may hold back the recovery in these economies from the deep recessions caused by the COVID-19 pandemic--unless governments adopt a broad set of policies to address the challenges of widespread informality. This study is the first comprehensive analysis of the extent of informality and its implications for a durable economic recovery and for long-term development. It finds that pervasive informality is associated with significantly weaker economic outcomes--including lower government resources to combat recessions, lower per capita incomes, greater poverty, less financial development, and weaker investment and productivity.
At roughly 4 percent per year, labor productivity in Tanzania has grown more rapidly over the past 14 years than at any other time in recent history. Employment growth has also been strong, keeping up with population growth at roughly 2.5 percent per year; the bulk of employment growth (90 percent) has been in the nonagricultural sector. However, the vast majority of this nonagricultural employment growth has occurred in informal sector. Using Tanzania’s first nationally representative survey of micro-, small-, and medium-sized enterprises, this paper shows that firms in the informal sector contributed roughly half a percentage point to economywide labor productivity growth in Tanzania between 2002 and 2012. However, virtually all of the labor productivity growth contributed by informal firms came from a small subset of firms called the “in-between firms.” This paper considers attributes of the in-between firms that could be used for targeting financial and business services to firms with the potential to grow. This paper finds two salient characteristics of in-between firms that might lend themselves to targeting—their owners are more likely to keep written accounts and more likely to keep their savings in formal bank accounts.
This publication brings together a set of IMF papers that prepared as backgrounds for the various sessions of the conference and will help put into broader dissemination channels the results of this important conference. An official IMF publication is well disseminated into academic and institutional libraries and book channels. The IMF metadata will also make the conference papers more discoverable online.
Jobs provide higher earnings and better benefits as countries grow, but they are also a driver of development. Poverty falls as people work their way out of hardship and as jobs empowering women lead to greater investments in children. Efficiency increases as workers get better at what they do, as more productive jobs appear, and less productive ones disappear. Societies flourish as jobs bring together people from different ethnic and social backgrounds and provide alternatives to conflict. Jobs are thus more than a byproduct of economic growth. They are transformational —they are what we earn, what we do, and even who we are. High unemployment and unmet job expectations among youth are the most immediate concerns. But in many developing countries, where farming and self-employment are prevalent and safety nets are modest are best, unemployment rates can be low. In these countries, growth is seldom jobless. Most of their poor work long hours but simply cannot make ends meet. And the violation of basic rights is not uncommon. Therefore, the number of jobs is not all that matters: jobs with high development payoffs are needed. Confronted with these challenges, policy makers ask difficult questions. Should countries build their development strategies around growth, or should they focus on jobs? Can entrepreneurship be fostered, especially among the many microenterprises in developing countries, or are entrepreneurs born? Are greater investments in education and training a prerequisite for employability, or can skills be built through jobs? In times of major crises and structural shifts, should jobs, not just workers, be protected? And is there a risk that policies supporting job creation in one country will come at the expense of jobs in other countries? The World Development Report 2013: Jobs offers answers to these and other difficult questions by looking at jobs as drivers of development—not as derived labor demand—and by considering all types of jobs—not just formal wage employment. The Report provides a framework that cuts across sectors and shows that the best policy responses vary across countries, depending on their levels of development, endowments, demography, and institutions. Policy fundamentals matter in all cases, as they enable a vibrant private sector, the source of most jobs in the world. Labor policies can help as well, even if they are less critical than is often assumed. Development policies, from making smallholder farming viable to fostering functional cities to engaging in global markets, hold the key to success.
This is an open access title available under the terms of a CC BY-NC 4.0 International licence. It is free to read at Oxford Scholarship Online and offered as a free PDF download from OUP and selected open access locations. Sub-Saharan Africa's rural population is growing rapidly, and more young people are entering the labour market every year. This raises serious policy questions. Can rural economies absorb enough job seekers? Could better-educated youth transform Africa's rural economies by adopting new technologies and starting businesses? Are policymakers responding to the youth employment challenge? Or will there be widespread unemployment, social instability, and an exodus to cities and abroad? Youth and Jobs in Rural Africa: Beyond Stylized Facts uses survey data to build a nuanced understanding of the constraints and opportunities facing rural youth in Africa. Addressing the questions of Africa's rural youth is currently hampered by major gaps in our knowledge and stylized facts from cross-country trends or studies that do not focus on the core issues. Youth and Jobs in Rural Africa takes a different approach, drawing on household and firm surveys from selected African countries with an explicit focus on rural youth. It argues that a balance between alarm and optimism is warranted, and that Africa's "youth bulge" is not an unprecedented challenge. Jobs in rural areas are limited, but agriculture is transforming and youth are participating, adopting new technologies and running businesses. Governments have adopted youth employment as a priority, but policies often do not address the specific needs of rural populations. Youth and Jobs in Rural Africa emphasizes that by going beyond stylized facts and drawing on more granular analysis, we can design effective policies to turn Africa's youth problem into an opportunity for rural transformation.
