The COVID-19 crisis has once again highlighted the important role of pro-employment macroeconomic policies, especially fiscal measures, in protecting businesses and jobs from complex shocks. This experience has added to the significant lessons learned from the global financial crisis (GFC) and the mistakes made during the interim years, most notably premature austerity delayed recovery from the GFC in several advanced economies. Developing countries face a range of constraints to maximizing the impact of pro-employment macroeconomic policies, including limited domestic productive capacity, large informal sector and restricted fiscal space. In these economies, policies that support structural transformation need to go hand in hand with macroeconomic policies, but the shocks felt over 2022 have made this task even more challenging. Adopting such an approach is not only important to tackle future shocks and crises, but also to facilitate transformation and shifts to more inclusive and sustainable economies.
In this uncertain environment, Track I will seek to address the following questions:
What have been the impacts of macroeconomic policies on labour markets during and after the COVID-19 crisis?
How should fiscal and monetary policies be adjusted to support a human-centred recovery, while addressing the inequalities and deficits left over from the COVID-19 crisis, along with the cost-of-living crisis? What lessons from income policies in previous decades can be applied to address today’s crises?
How can countries manage public debt while financing the recovery and necessary just transitions, including tackling climate change?
How can developing countries implement a coherent framework covering both macroeconomic and sectoral policies that support structural transformation, job creation and improved quality of employment, including universal access to social protection?
What are the successful approaches to achieving coherent macroeconomic and sectoral policies in developing countries? How can mission-oriented macro and sectoral policies be implemented successfully?
How to manage post-COVID-19 public debt and financing challenges in developing countries to support a job-rich recovery and just transitions?
What are the different mechanisms for financing social protection and job creation for just transitions, including transitions towards the formalization of the economy? What innovative financing mechanisms can be implemented to increase the fiscal space in developing countries (e.g., sovereign wealth funds, payment for eco-system services)?
What are the different approaches for gender-responsive macroeconomic policies? What employment policies are needed for a gender-responsive recovery?
What is the impact of crises on inequality? What is the role of macroeconomic policies in promoting more inclusive labour market outcomes?
