How to boost Jobs Participation Rate in this gloomy economy has always been a key interest within our hearts. We have compiled this article gathering the works of experienced Politicians & Experts for your reference. We hope that with our humble contribution, all of us can get out of this Global gloomy economy as soon as possible.
Extracted from ECB Article “The future of the euro area economy” by President Christine Lagarde dated 22 November 2019:
“And when global growth falls, stronger internal demand can help protect jobs, too. This is because domestic demand is linked more to services – which are more labour-intensive – while external demand is linked more to manufacturing, which is less labour-intensive.”
In order to boost Jobs Participation Rate, we need to boost domestic demand, see what the experienced Politicians and Experts said:
Updates on 24 January 2020
Indonesia is set to overhaul 79 Laws in a Push for Jobs and Foreign Investment (via Bloomberg dated 21 January 2020).
1. Ease of Doing Business: The bill will revise nine laws that cover the ease of doing business in the country. It will eliminate costs associated with setting up a business and relax working visa rules for certain sectors. It will also create incentives for downstream mining activities, with some coal miners exempt from royalties and obligations to supply to the domestic market and to be given permits that last the life of the mine.
2. Negative Investment List: A long-awaited overhaul of the so-called negative investment list, which restricts foreign ownership in a range of industries, will be included in the job creation bill. The government will establish a priority list for investment that includes high-tech, digital and labor-intensive sectors. Some areas considered important to national interest or covered by international conventions will still be off limits to foreign ownership, while others would face restrictions.
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Updates on 29 December 2019
Reported on 11 May 2018, Extracts:
In the new globalization era, growth around the world will be driven increasingly by services, personal consumption, and trade in digital goods. We see five key strategies that nations should pursue to enhance their competitiveness and create jobs:
· Promote digitally enabled services and solutions to all sectors of the economy.
· Nurture global centers of expertise and ecosystems of highly skilled workers.
· Enable SMEs to participate in global value chains.
· Digitally empower the self-employed to participate in the so-called gig economy.
· Stimulate domestic consumption by broadening the scope of the formal economy and promoting greater social and financial inclusion.
Updates on 15 December 2019:
1. For this article, just look at the relevant sections on developing “niche export demand” and seeking out “external niche demand” and concentrate growth in those areas.
2. Published online on 9 August 2019: ...The qualitative factors included in the analysis by using Global Competitiveness Index (corruption control, bureaucracy, infrastructure quality, governance efficiency etc.) and Corruption Perceptions Index are strongly and positively correlated with the economic growth and negatively correlated with the Unemployment Rate.
Updates on 11 December 2019:
1. Fiscal Policy (cutting taxes, increase government spending on projects that boost long term benefits and Jobs Participation), Monetary Policy (cutting interest rates), Free Trade Agreements (that is beneficial to your Country’s Jobs Participation), improve education and training for the People to catch up with Global Demands, Improve Infrastructure to boost Trade. (Reported on 5 December 2019)
2. Beijing will increase funding to local governments for infrastructure projects and cut taxes and pay-outs by Corporation to stimulate domestic demand… -Reported on 5 March 2019.
3. Increase in public expenditure on infrastructure have shown to have very substantial positive multiplier effects in stagnating economies, so public investment should be a key instrument for addressing the stagnation in Developed Countries. (Reported on 6 October 2015)
Updates on 7 December 2019:
1. Reported on 5 December 2019: Japan’s total stimulus package amounts to $239 billion, intends to spread over the coming years – aimed to boost growth by 1.4%. It will be used to aid disaster relief, protect against downside risks and prepare the country for long-term growth after the 2020 Tokyo Olympics. The package embarks spending to improve the country’s resilience to extreme weather, to extend a rebate system for cashless payments and put a tablet or device on each school children desk through the end of junior high school.
2. Reported on 24th November 2017, extracted: … the importance of Manufacturing, and its associates services value chains, as central to future jobs creation and inclusive growth, as well as it’s warnings that “premature de-industrialization” would have serious social & economic consequences.
3. Extracted from “A review of global fiscal stimulus” by ILO: Indonesia’s stimulus package contained up to IDR12.2 trillion for infrastructure development, including the improvement of highways, ports, bridges and irrigation systems. At the end of 2009, 93.1 percent of the government’s stimulus package had been disbursed, creating an estimated 1million jobs…
4. Extracted from “A review of global fiscal stimulus” by ILO: One key to understanding the effectiveness of fiscal stimulus measures in developing Asia is the relatively healthy state of government finances because such financial stability allowed governments to implement a sizable fiscal expansion. The IMF notes that the emerging market countries with lower public debt and better budget balances going into the crisis were able to accommodate the economic downturn better by letting their fiscal positions ease more substantially. With the notable exception of India, public debt to GDP ratios is significantly lower in the developing Asia in comparison to industrialized countries. For instance, most countries in developing Asia other than India have debt output ratios below 60 per cent with the nine major regional economies averaging 32.9 per cent in 2007. The ratios stand in stark contrast to the G7 average of 84.1 per cent. The only countries with any risk of seemingly unsustainable debt were India and Philippines, averaging at 61.94 per cent and 65.25 per cent respectively in the period of 2004-2008 respectively. In sum, years of fiscal prudence have given the region a relatively high degree of fiscal freedom with plenty of scope to pursue expansionary policies to cushion even large external shocks… In terms of composition, the Asia’s fiscal stimuli were heavily focused on public spending, specifically infrastructure endowments, which had the effect of increasing direct private demand for goods and services to compensate for the significant loss of foreign demand. It seems that tax cuts did not have much positive impact on the region’s output, partly because tax cuts were a much smaller part of the region’s fiscal stimulus packages with their overwhelming emphasis on higher spending. Partially due to its greater focus on government spending, spending measures seem to have helped the developing Asia achieve its V-shaped recovery.
5. To boost high value-added exports (Reported on 21 February 2017).
Updates on 5 December 2019:
1. Construction of mega infrastructure projects is expected to have positive spill-over and multiplier effects on the economy through greater output, income and employment. A wise Government will ensure that the majority of the workforce engaged in the works is citizens who will gain from the employment.
3. With the foreseen tough economic conditions overseas, investments tailored to domestic structural changes as well as measures for the activation of human resources will be needed. Focusing the efforts on balancing domestic supply and demand will in turn lead to economic stimulation.
5. Extracted from United Nations Conference on Trade & Development: To maximize the incremental benefits of such spending and boost aggregate demand relatively quickly, public expenditure on job creation is best directed to the regions, places and activities where unemployed persons and poor households can best benefit. This would suggest taking workers as they are and providing jobs tailored to their current skills and abilities, while including training and retraining as part of the programmes, instead of only providing training for jobs that might subsequently become available. This may be particularly well suited to some work programmes where training can be provided relatively fast, for example, pollution clean-up, infrastructure repair, reforestation and care-related activities. The added advantage is that such an approach is likely to benefit from popular support. Meanwhile, multilateral initiatives should at the least ensure that there are no impediments to national Governments expanding public employment or procurement. This is particularly important in the context of the explicit or implicit constraints on such employment promotion in international trade and investment agreements… Without significant, sustainable and coordinated efforts to revive global demand by increasing wages and government spending, the global economy will be doomed to continued sluggish growth, or worse. Now is the ideal time to crowd in private investment with the help of a concerted fiscal push to revive the growth engines of the economy, and at the same time help rebalance economies and societies that, after three decades of hyper-globalization, are seriously out of kilter. However, in today’s world of mobile finance and liberalized economic borders, no country can do this on its own without risking capital flight, a currency collapse and the threat of a deflationary spiral. What is needed, therefore, is a globally coordinated strategy of expansion led by increased public expenditures and with improving employment conditions a central goal, offering the opportunity to all countries to benefit from a simultaneous boost to their domestic and external markets.
Updates on 30 November 2019:
1. More support should be given to innovation, research and development in strategic products and processes. Artificial Intelligence with the emergence of robots, combine with the digital economy, we can improve domestic demand that allows us to boost Jobs Participation. People should be trained to protect themselves from fraud especially when digital payments become common in transactions.
2. Create “a new driver of the economy”. For Kazakhstan, it is Agriculture. What is yours?
3. China seeks to boost Car, Electronic Sales as Economy slows. What kind of sales we should start to boost now?
4. Promoting exports and stimulating internal demand. To push exports, the Government must respond swiftly to changes in the International Environment, help Manufacturers sell their Products abroad and tap into Emerging Markets.
5. What to sell to boost Jobs Participation? Almost 2/3 of consumer spending is on services, like real estate and healthcare, other services, such as banking, investment, cable and internet services and even from non-profits.
8. Policymakers must quickly address decline demand for your country’s products, both among domestic consumers and in export markets. Beware of sharp rise in imports: People may be over-invoicing, in order to shift $$$$ abroad. If you are proud of your Medical Services, encourage Medical Tourism Industry.
9. (Exports, consumption & Investment) are important to (Economic Growth) and vice versa. There is a tendency that Exports have a stronger impact on Economic Growth when a Country has a higher ratio of openness to International Trade.
Acknowledgments: First, we want to thank our Creator for helping us to make the search on the Articles quick and easy! Click on the hyperlinks above to see the authors of the articles. We thank them for their precious contributions to make this publication possible. Many Thanks.
Emmanuel & Maria International Consultants LLP on 24 November 2019.
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