Public Works Programmes
A public works programme (PWP) is the provision of employment by the creation of predominantly public goods at a prescribed wage for those unable to find alternative employment. This functions as a form of social safety net. PWPs are activities which entail the payment of a wage (in cash or in kind) by the state, or by an Agent (or cash-for work/CFW). One particular form of public works, that of offering a short-term period of employment, has come to dominate practice, particularly in regions such as Sub-Saharan Africa. Applied in the short term, this is appropriate as a response to transient shocks and acute labour market crises.
Investing in public works projects in order to stimulate the general economy has been a popular policy measure since the economic crisis of the 1930s. More recent examples are the 2008-2009 Chinese economic stimulus program, the 2008 European Union stimulus plan, and the American Recovery and Reinvestment Act of 2009.
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