Responses to the Global Economic Crisis

From APEC HRDWG Wiki

The economic crisis originated in America’s real estate and banking industries and has spread to the rest of the economy and to much of the world.^[1] As a result, measures to protect the most vulnerable through expanded social protection, to invest more in education and training and to apply stronger labor market policies has been the primary focus.^[2]  It has become necessary for APEC members to implement labor market policies and social safety nets in response to the global economic crisis. The recent conference held on July 7-8, 2010 in Jakrata, Indonesia regarding the human resource impacts of the global economic crisis and the upcomming HRD Ministerial Meeting in Beijing China tackle related topics.

Active Labor Market Policies (ALMPs)

Active labor market policies (ALMPs), are policies that seek to integrate the unemployed into work rather than simply providing passive income support.^[3] ALMPs include public employment service, training, and employment subsidies. The overall objective of ALMPs is to increase employment and incomes. These types of policies work to reduce structural unemployment by matching workers to jobs and keeping the unemployed in contact with the labor market while at the same time improving their skills.^[4]

Many APEC economies implement active labor market policies in response to the global economic crisis, and an inventory of labor market responses to the economic crisis among APEC members is available for download, entitled Labor Market Policy Responses in APEC Economies to the Worldwide Recession. The following table shows the types of ALMPs utilized in APEC economies:

Social Safety Nets

Social safety nets (SSNs) protect the real consumption of individuals against a fall in living standards in the event of and during an economic crisis.^[6] SSNs include: food-based programs, community support programs, family/childcare benefits, and public works. These programs are motivated by both equity and efficiency concerns, as these “safety nets” support the most vulnerable members of society.  Additionally, in response to the economic downturn, APEC economies have expanded social protections and food security. 

The table below shows which APEC members are employing social safety net interventions:

Economic Crisis Case Studies

Case studies of the economic crisis are being prepared.  These studies will cover eleven APEC economies, including Australia, China, Japan, Papua New Guinea, Chile, Peru, the United States, Indonesia, Viet Nam, the Philippines, and Thailand.  Each economy study will follow a common economic crisis case study outline.

See also

U.S. Responses to the Economic Crisis: Social Safety Nets

Labor Market Policy Responses in APEC Economies to the Worldwide Recession

References

1. ↑ "Protecting Household Income during the Economic Crisis - Brookings Institution." Brookings - Quality. Independence. Impact. Web. 09 Oct. 2009.
2. ↑ "Protecting People,Promoting Jobs:From crisis response to recovery and sustainable growth."International Labour Organization. Communication to G20 Leaders by ILO Director-General.Pittsburgh Summit, 24-25 September 2009
3. ↑ "Transition Economics Active Labour Market Policies." CEPR (the Centre for Economic Policy Research) a network of over 700 economists based across Europe. Web. 29 Sept. 2009.
4. ↑ "Active Labour Market Policies: Assessing the Macroeconomic and Microeconomic Effects." Organisation for Economic Co-operation and Development. Web. 29 Sept. 2009.
5. ↑ Andes, Scott, and Daniel Castro. "Driving a Digital Recovery:IT Investments in the G-20 Stimulus Plans." The Informatition Technology & Innovatition Foundatition (Sept. 2009).
6. ↑ "Center for Peace and Development Studies::Social Safety Nets in East Asia: How Desirable? How Feasible?" Center for Peace and Development Studies::Home. Web. 30 Sept. 2009.