Focuses on the impact of the global economic crisis on developing countries and their capacity to respond to it. Argues that the creation of fiscal and policy space for developing countries on a sustainable basis needs to be a central feature of the global development agenda.

Introduces the notion of employment elasticity and describes statistical methods for its estimation. Based on annual labour force surveys and censuses, estimates the employment elasticity of major sectors in Indonesia between 1977 and 1996. Makes recommendations based on a comparison of the...