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    Anne Desal
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    This document outlines a seven-point consensus among economists for a comprehensive migration and employment strategy in developing countries. The strategy calls for creating a more balanced rural-urban economic relationship to reduce unemployment. It also recommends expanding small-scale, labor-intensive industries in both urban and rural areas through government investment, incentives, and improved access to credit. The goal is to generate more employment opportunities through integrated rural development and the spread of non-farm jobs.

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    This document outlines a seven-point consensus among economists for a comprehensive migration and employment strategy in developing countries. The strategy calls for creating a more balanced rural-urban economic relationship to reduce unemployment. It also recommends expanding small-scale, labor-intensive industries in both urban and rural areas through government investment, incentives, and improved access to credit. The goal is to generate more employment opportunities through integrated rural development and the spread of non-farm jobs.

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    7 views1 page

    Employment Strategy

    Uploaded by

    Anne Desal
    This document outlines a seven-point consensus among economists for a comprehensive migration and employment strategy in developing countries. The strategy calls for creating a more balanced rural-urban economic relationship to reduce unemployment. It also recommends expanding small-scale, labor-intensive industries in both urban and rural areas through government investment, incentives, and improved access to credit. The goal is to generate more employment opportunities through integrated rural development and the spread of non-farm jobs.

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    © All Rights Reserved
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    of 1

    Throughout this chapter, we have looked at possible policy approaches designed to improve the

    very serious migration and employment situation in developing countries. We conclude with a
    summary of what appears to be the consensus of most economists on the shape of a
    comprehensive migration and employment strategy. This would appear to have seven key
    elements:
    First, Creating an appropriate rural-urban economic balance. Since, a more appropriate balance
    between rural and urban economic opportunities appears to be indispensable to both urban and
    rural unemployment problems and to slowing the pace of rural-urban migration. The main thrust
    of this activity should be in the integrated development of the rural sector, the spread of rural
    nonfarm employment opportunities, improved credit access, better agricultural training, the
    reorientation of social investments toward rural areas, improving rural infrastructure, and
    addressing shortcomings of rural institutions, the presence of which has the effect of raising the
    cost of delaying out-migration.
    Second, Expansion of small-scale, labor-intensive industries. The composition or “product mix”
    of output has obvious effects on the magnitude of employment opportunities because some
    products require more labor per unit of output and per unit of capital than others. Expansion of
    these mostly small-scale and labor-intensive industries in both urban and rural areas can be
    accomplished in two ways: First directly, through government investment and incentives and
    improved access to credit, particularly for activities in the urban informal sector, and second
    indirectly, through income redistribution to the rural poor, whose structure of consumer demand
    is both less import-intensive and more labor-intensive than that of the rich.

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