Supportive Macroeconomic And Industrial Policies For A Broad-Based, Job-Rich Recovery

Supportive Macroeconomic And Industrial Policies For A Broad-Based, Job-Rich Recovery

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This paper, written by Dr. Anis (Anisuzzaman) Chowdhury, responds to the resolution of the 109th General Conference of the International Labour Organization (ILO): “A global call to action for a human-centred recovery from the COVID-19 crisis that is inclusive, sustainable and resilient”, adopted in June 2021.

The resolution suggests, among other actions, the pursuance of “supportive macroeconomic, fiscal and industrial policies that also foster equity and stability”. In response, Dr. Chowdhury outlines the basic features of supportive macroeconomic and industrial policies for a broad-based, job-rich recovery from the COVID-19 crisis.

Beginning by highlighting the key features of the ILO resolution and its significance, followed by a brief overview of the context necessitating the adoption of the resolution in favour of supporting macroeconomic and industrial policies, Dr. Chowdhury highlights the falling labour income share and rising inequality, and reflects on the causes of these trends which have been exacerbated by the COVID-19 pandemic.

The paper then debunks the myths that drive the current neoliberal economic policy paradigm, followed by a presentation of the evidence base for supportive macroeconomic policies, outlining the necessary features of macroeconomic and industrial policies for an inclusive, sustainable, resilient and job-rich recovery, and demonstrating their feasibility through several case studies highlighting the features of such policies.

Further reading: Rethinking Monetary Policy: A Policy Brief