Ever since the beginning of the financial crisis that began in 1997 which later metamorphosed into an economic crisis and finally became a global downturn by mid 2009, the issue of growth and jobs has occupied prime attention and place in public debate. The question was, ‘how do we grow the economy and also create jobs?’
The link between economic growth and job growing/creating is very important. This is so because, at times, governments are obsessed with pushing economic growth numbers without worrying so much about creating jobs at the same time. For example, the government of Botswana announced during the reading of the 2011/12 Budget Speech in February 2011 that beginning in the 2012/13 financial year, the desire for the economy to post a balanced budget, or better-still budget surpluses until the 2015/16 financial year. At the same time, it reiterated its intention to push for growth rates of about 7% per annum in order to deliver Vision 2016 targets and deliver NDP 10. The question has always been and still remains, ‘is it about pushing economic growth numbers without worrying about creating jobs at the same time?’
Ideally, job creation should be at the centre of growth-promoting endeavours. Thus, when the obsession is with pushing economic growth numbers without worrying so much about creating jobs at the same time, this results in jobless recovery or jobless growth. Thus, while the economy is posting growth, employment levels either remain constant or stagnate. Surely this is not a wise macroeconomic policy choice because it has no meaningful benefit for the citizens.
Thus, it is very important for governments to aim for job-creating economic growth initiatives. This point was cogently alluded to by Liberia’s Minister of Finance, Amara Konneh, when addressing journalists when he delivered ‘the state of country economy’ on 21 November 2013. He said, ‘we have grown at an annual average of about seven percent since 2003 reflecting the peace dividends following the end of the protracted civil war. The fundamental challenge has been that the impressive growth in the economy has not produced the levels of employment we desire (The Informer [Monrovia], 21 November 2013; Liberia: Economic Growth without Employment Is Fundamental Challenge – Minister Konneh). He further stated that ‘unemployment, especially youth unemployment, remains the crisis of our time. Creating gainful employment for young people is vital for peace, security and economic transformation of the state (ibid).
Similar sentiments have been expressed by the Global Agenda Council on Employment & Social Protection and IMF. In early 2012, the Global Agenda Council on Employment & Social Protection published a report calling on policy-makers to develop a new model of growth, employment and social protection informed by the principles of sustainability and decent work (World Economic Forum, 2014; Jobs for Growth and Growth for Jobs Global Agenda Council on Employment). Similarly, the IMF released the Jobs and Growth: Supporting the European Recovery book on 10 April 2014. In essence, the book looks at key aspects needed to lead Europe out of its crisis seizing its growth potential and creating new jobs.
In a related vein, some countries have pro-actively passed legislation to promote job-creating economic growth initiatives. For example, the Canadian parliament passed the Jobs and Growth Act, 2012 and Jobs, Growth and Long-term Prosperity Act in June 2012. In South Africa, as the political clock ticks towards the 7 May 2014 election, talk is about growth and jobs. Major macro economic problems are productivity of sectors and people; diversification and implementation of projects as well as the lack of research and development. There is an implication for jobs on all of these.
We need education and skills development that can support expansion of commodity processing base, beneficiation, intra African trade, value creation and a strong continental consciousness. We need clean governments, we need a setting for governance where no one remains behind in order to drive a humming economy and make families happy. In terms of a declaration made on 7th December 2013 in Zanzibar, the ALN member parties commit to working for secure and peaceful development for all the peoples and nations of Africa and believe that fundamental to that is providing jobs and growth for the benefit of all through the adoption by the governments of Africa, acting on the principles of full transparency and good governance, of the following priorities for action;
1. An acceleration of the programme of infrastructure development, particularly in the ICT, transport and energy sectors, where a strong partnership of governments and the private sector is essential.
2. An urgent commitment to simplifying and automating customs and visa procedures, and the elimination of non-state barriers to free trade and the transit of good and services. 3. The rapid development of effective property rights, the rule of law and simplified rules for business establishment, to permit a thriving private sector to grow. 4. A sustained reduction in intra-African tariff barriers, alongside a programme to build capacity to accommodate short-term impacts on government revenues, and in the longer term to open up a continent-wide free trade area. We, the ALN member parties, further believe that delivering these priorities for action will; – Increase trade between the nations of Africa to their mutual benefit, – Increase the well-being of the peoples of Africa, and,
– Enhance the opportunities, choices and freedoms of all. – Care for the environment and protect it as a key resource for the all times to come. – Also open political and economic relations with our campass not only pointing to the traditional developed countries. Our peers across the world and other developing economies should be within the African radar for partnership in creating prosperity for the future.
We commend these priorities to all the governments, parties and citizens of Africa, and urge their adoption for action. It is for this reason that I will be in Addis Ababa at the African Union offices to exchange notes with them on these matters given their various initiatives on Africa that are in progress. It is critical that those who have institutionalized for the good of Africa as we have in the ALN, should ensure that they sing from the same hymn sheet with the rest of their likeness as they together propose prosperity for this continent.
*Motswaledi was co-panelist with ALN President Hon Olivier Kamitatu Etsu, Former Prime Minister Guinea HE Cellou Diallo, LibDems Foreign Affairs spokesperson in House of Lords Baroness Kishwer Faulkner
