Employment-Targeted Economic Program for Kenya

Robert Pollin, Professor and founding Co-Director, Political Economy Research Institute, University of Massachusetts-Amherst, US, Mwangi wa Githinji, University of Massachusetts-Amherst, US and James Heintz, Associate Research Professor, Political Economy Research Institute (PERI), University of Massachusetts-Amherst, US

• Contents: Brief Highlights of Major Proposals Summary of Major Findings and Proposals 1. Introduction 2. Employment Conditions and Living Standards 3. Profile of Non-agricultural Household Enterprises 4. Labor Costs, Labor Market Institutions and Employment Expansion 5. The Rural Sector: Institutional Reform for Development 6. Investing in Roads and Water Infrastructure 7. Monetary Policy, Inflation Control, and Interest Rates 8. Exchange Rate Policy and Foreign Trade 9. Restructuring Kenya’s Financial System 10. Fiscal Policy: How to Pay for New Pro-employment Initiatives 11. A Restatement of Goals and Strategies Appendix 1: Earnings Function for Household Enterprises Appendix 2: Supply Shock Inflation Appendix 3: Exchange Rate Overvaluation Model Acronyms Bibliography Index

'. . . an important and necessary contribution. The authors make several innovative departures from standard thinking about macroeconomic policies, both in terms of goals and strategies. While the study is focussed on Kenya, much of the approach and most of the policy conclusions have direct relevance for a wide range of developing countries. . . this is an extremely valuable book, because it provides a clear, systematic and context-driven set of proposals for macroeconomic policies and development strategy that is directed to the generation of decent employment. This is something that is frequently talked about as the desired alternative strategy, but elaborations of this idea to make it practical and feasible are rare. This book is therefore an important weapon in the struggle to bring about more progressive macroeconomics as well as more inclusive development.'