Employment, incomes and equality : a strategy for increasing productive employment in Kenya /

"Report of an inter-agency team financed by the United Nations Development Programme and organised by the International Labour Office."

Includes bibliographical references.

This is the third major report in three years that the I.L.O. has sponsored on unemployment in a developing country, as part of its contribution to the Second Development Decade. In this report the authors reject the conventional dichotomy of the " dual economy," in which a " modern " sector, with its up-to-date, western technology is the source of all " progress," and the task of development policy is to draw the great majority who (supposedly) work in the " traditional " or " subsistence " sector into the web of " modern " activities. The non-market oriented subsistence household has virtually disappeared in Kenya (and in the rest of Africa as well), and it is time it made its exit from textbooks and journals also. A more illuminating distinction, the authors suggest, is that between the " formal " and " informal " sectors of the economy. The " formal " sector consists mostly of large, foreign-owned and mainly foreign-managed enterprises, which use capital-intensive techniques and pay (in an African context) high wages. By contrast, the " informal " sector, though just as modern (in the sense of being market-oriented, efficiency-conscious and increasingly urban) consists of relatively small and almost wholly indigenous enterprises, which use capital-saving techniques and where average earnings, though typically lower than in the formal sector, are significantly higher than the average small-farm wage.

rpm 03/04/2018

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