This book discusses the implications for macroeconomic policy of the term inclusive growth, understood as growth with equal opportunities. This is a term that, in different ways (e.g., harmonious society, sufficient economy), is making its way into the policy discourse in many countries in Asia, and multilateral organizations such as the World Bank and the Asian Development Bank have also started using it. To achieve inclusive growth, Asian governments must commit efforts and resources to the pursuit of the full employment of labor to provide jobs to the 500 million unemployed and/or underemployed people in the region. The book discusses the different aspects of the link between inclusive growth and full employment, and offers a menu of policies that will have to be tailored to each country's circumstances.

A summary of the main arguments is as follows:

• (i) The most salient feature of developing Asia's labor markets is the considerable underutilization of labor, which manifests itself in unemployment and underemployment. Having a job that pays a decent salary is the most basic measure of a person's living standard. For this reason, Felipe and Hasan (2006, 2) argue that “improving labor market opportunities for workers is the key to reducing poverty and improving standards of living for the large majority of Asia's workers and their families. Poverty reduction requires helping people as workers.” A high-employment economy is the best single tool for fighting poverty.

• (ii) The main cause of unemployment and underemployment in developing countries is lack of capital equipment and productive capacity. Therefore, the purpose of development must be to increase a country's productive capacity. Only sound policies geared toward full employment will create the foundation for inclusive growth.

• (iii) Unemployment and underemployment as the fundamental causes of lack of inclusiveness are unethical states of a malfunctioning economy. They ultimately are the result of a lack of collective will to make political choices that favor maintaining adequate levels of demand.

• (iv) The most important way in which a person can participate in society and contribute to its progress is through a productive and decent job.