This volume rests on three thematic pillars: the limits of conventional macroeconomics; the long-run agenda of structural transformation and the development of capabilities. Islam and Kucera highlight the tenuous links of conventional macroeconomics with core development concerns. The chapters of this book enunciate an empirical approach to track the various sources of structural transformation and nurture the thesis that investment in infrastructure leads to the inculcation of capabilities, broadly defined to include knowledge accumulation, dissemination and application. The editors reinterpret social protection from the perspective of inclusive development and structural transformation. The volume examines secular trends in the functional distribution of income and explores their possible macroeconomic consequences by developing a two-country macroeconomic model for open economies. It seeks to establish whether growing inequality in many countries combined with stagnant real incomes is one of the sources of the global and financial crisis of 2007-2009.
Iyanatul Islam and David Kucera Part I: Limits Of The Conventional Macroeconomic Policy Framework 2. Dispensing Macroeconomic Policy Advice to Developing Countries: The IMF's Article IV Consultations
Iyanatul Islam, Ishraq Ahmed, Rathin Roy and Raquel Ramos 3. Fiscal Consolidation: Issues and evidence
Anis Chowdury and Iyanatul Islam 4. Should Developing Countries Target Low, Single Digit Inflation?
Sarah Anwar and Iyanatul Islam Part II: STRUCTURAL TRANSFORMATION AND THE DEVELOPMENT OF CAPABILITIES 5. Structure Matters: Sectoral Drivers of Development and the Labour Productivity-Employment Relationship
David Kucera and Leanne Roncolato 6. Creating Productive Capacities, Employment and Capabilities for Development: The Case of Infrastructure Investment
Irmgard Nubler and Christoph Ernst 7. Investing in People: Extending Social Security through National Social Protection Floors
Christina Behrendt PART III: INEQUALITY, WAGES AND THEIR MACROECONOMIC CONSEQUENCES 8. Wages and Growth in Open Economics: A Policy Dilemma?
Massimiliano La Marca and Sangheon Lee 9. Keeping Up With the Joneses Or Keeping One's Head Above Water? Inequality and the Post-2007 Crisis
David Kucera, Rossana Galli and Fares Al-Hussami