The relationship between the concepts "full employment" and "sustainable livelihoods" was examined in the context of international efforts to promote economic development and eradicate poverty worldwide. After a comparison of the very different economic problems facing developing nations and the nations of Eastern Europe and Central Asia, it was proposed that the concept "sustainable livelihood" be viewed inclusively rather than exclusively and be applied to all forms of making a living satisfying the following conditions: be pursuable independently without compromising personal security; remain reasonably stable over time; be mutually beneficial to individuals and their immediate social groupings; and be compatible with the physical environment. Intergovernmental perspectives and current research on sustainable livelihoods were reviewed, and an approach to public policy was proposed that shifts the focus from labor-intensive growth to sustainable livelihood-intensive change by including explicit consideration for the following in all economic policy decisions: natural resources, redistribution, prices, health, abolishment of restrictions, and safety nets. A working definition of the term "sustainable livelihoods" was proposed that integrates all economic activities now defined as relevant to employment under the International Labor Organization definition with the social dimensions of sustainability and equity. (Contains 38 endnotes.) (MN)