Jan 22, 2016 (LBO) – Central Bankers in the modern era should have a dual mandate which concentrate on employment targeting in addition to conventional inflation targeting, lead author of the 2015 Global Human Development Report said.
Making the South Asian regional release yesterday in Colombo Selim Jahan stated that enhancing human development through work requires holistic policy interventions.
“In most countries, the Central Bank has a single mandate and the mandate is inflation targeting,” Jahan said.
“Maybe the time has come that the Central Bank should have a dual mandate; employment targeting in addition to inflation targeting,”
“If that is done, then the monetary policies can really help fiscal policies in order to create jobs and work in economies.” he added.
Jahan who is also a Director of UNDP’s Human Development Report Office said the time has come to change the conventional ideology on growth and employment.
“We have been told that if we grow, jobs will be created automatically; that is not what happened.”
“We have experiences of jobless growth over time, if that is the case why can’t we think about employment led growth?” he asked.
“Why can’t we think about creating jobs, try to enhance their skills and productivity, that will generate growth which will further create employment and will end up with a kind of a virtual circle or a upward spiral,” Jahan further questioned.
The Human Development Index (HDI) is a measurement that assesses long-term progress in three basic dimensions of human development: a long and healthy life, access to knowledge and a decent standard of living.
Accordingly, South Asia´s HDI value of 0.607 is below the average value of 0.666 for the developing world.
Sri Lanka’s HDI value for 2014 however is 0.757— which places the country in the high human development category— ranking the country at 73 out of 188 countries and territories.