Transcript Skills for Trade Almaty - Cornelius Gregg (Long Version)

Skills for
Trade and
Economic
Diversification
STED
Skills for Trade
Cornelius Gregg
STED Technical Specialist
Employment, Trade and
Sustainable Development in
Central Asia
Almaty, 23 June 2016
Background
• Skills for Trade and Economic Diversification (STED) Programme
• Sectoral approach to anticipating and responding to skills needs
of tradable sectors
• Piloted Ukraine, Kyrgyzstan, Bangladesh, FYR Macedonia 20102012
• Approach formalized 2012
• Viet Nam, Jordan, Malawi, Cambodia, Myanmar, Tunisia, Egypt
• Also, STED component to trade and employment project
covering six countries
Full Cycle STED
Consultation with National
Stakeholders
STED Sector Selection
STED Sector Reports on
Skills Needed for Effective
Participation in Trade
Sector Implementation
- Sector stakeholders
- ILO support
- Other development partners
Capacity development and transfer of STED to
national / sector institutions for skills governance
Sector Stakeholder
Steering/
Advisory Groups
National / Sector Skills Institutions
- Stakeholder skills bodies
- National capability in skills
anticipation
Underpinning Logic - Trade
• Participation in trade impacts on tradable sectors,
with spillovers into wider economy
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Participation in trade as driver of development
Absorption of modern work organization and technologies
Productivity as driver of income growth
Quality and standards compliance benefit consumers
• Participation in trade can (contingently) drive
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Greener operations
Formalization of employment
Greater female workforce participation
Decent jobs
Underpinning Logic Business Matters
• Firms globally increasingly say they are unable to
source the skills they need
• Especially firms in tradable sectors
• Even in countries with high levels of unemployment or
underemployment among people with high levels of
qualification
• On average, exporting businesses
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Pay better
Are larger
Are more likely to offer formal employment
Seem to be more likely to invest in current technologies
and in implementing modern forms of work organization
Underpinning Logic –
Trade and Skills
• Major differences in trade and business outcomes
between sectors in different countries with access to
similar technologies
• Accumulation of knowledge and skills is a key factor
• Skills become more important to economic outcomes
as trade openness increases
• Trade facilitation is necessary, but insufficient
• With greater trade openness, skills development
institutions must become much more responsive
• Skills development policies should complement trade
policies
Underpinning Logic –
Economic Diversification
• Many developing countries have low diversity in exports
• Risky due to volatility in demand from export markets
• Risky with shifts in competitive advantage
• Often positions economy in:
• Sectors characterized by low quality employment
• Sectors characterized by low impact of exports on employment
• Developed economies characterized by higher diversity
• Generating sustainable higher quality jobs requires
diversification of exports
• Skills often one of the principal barriers to export
diversification
Typical Problem Areas in Tradable
Sectors, Based on STED Analyses
1. Efficiency and effectiveness of business operations
2. Compliance with standards
3. Marketing , sales, distribution
4. Innovation, design and product development
5. Supply chain management and logistics
6. Development of value chain
Factors Underpinning Changing
Demand for Skills
• Industrial structure
• Evolution of technology
• Especially automation and Information Technology
• Modern work organization
• Compliance
• Market demand for quality, flexibility, responsiveness
• Competitive pressure to improve and differentiate
All Levels of Education and
Training are Relevant
• All levels of education and training are relevant
1. Compulsory education – key driver of foundation skills and
core work skills
2. TVET (including apprenticeship) – key driver of mid-level skills
3. Universities – key driver of high level skills
4. Continuing education and training – workplace and classroom
– central to updating, upgrading and career progression
• When analysing tradable sectors, we usually see
deficiencies important to trade at all these levels
• Sectoral focus of STED means that recommendations are
usually for TVET, universities and CET
Systemic Deficiencies in TVET
Often Especially Acute
• Supply of mid-level skills often especially important to
strengthening tradable sectors in developing countries
• Rise in demand for skilled operatives and technicians
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Weak TVET management
Curricula out of date
Not responsive to enterprise needs
Skills of teachers out of date and weak systems to train the trainers
TVET colleges poorly equipped for practical work
• No systems to identify and anticipate priority TVET skills
Common Bottlenecks in
Addressing Skills Mismatch
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Weak voice for employers on shaping education and training provision
Lack of coordination between Ministries
Lack of coordination between stakeholders at national level and at sector level
Problems with quality of education and training provision and quality of
qualifications
Informality in on-the-job training and apprenticeships
Weak human resource management and non-modern operations management
Inadequate resources and weak management at education and training
institutions
Small and Medium Enterprises often have scale constraints on identifying and
acting on skills needs
Major gaps in supply of training services available to employers
Weak core skills among school leavers (and weak core skills content to TVET and
Higher Education)
Some Tools to Address Skills
Bottlenecks at Sector Level
• Institutions, such as Sector Skills Councils (SSCs), to facilitate collaboration
on skills between industry, education and training providers and
government
• Courses targeted on skills gaps in initial or continuing education and
training
• Quality apprenticeships
• Occupational standards, new curricula
• Improving Labour Market Information (LMI)
• Improving Human Resource Management
• Capacity development for education and training providers
• Quality assurance in education, training and qualifications
• Industry-led continuing education and training provision
Thank you