Transcript skills development in barabados :planning for the new economy

Andrew S Downes PhD
Professor of Economics and Pro Vice Chancellor
Planning and Development , University of the West Indies
January 2014
*presented at the Barbados Skills for the Future conference, January 26-28, 2014
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Nature of Skills Development
Skills Development and the Barbadian
Economy
Institutional Framework for Skills
Development in Barbados
Skills for a New Barbadian Economy
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Research has shown that Human Resources Development (
HRD) is critical to the general growth and development of
a country
HRD is involves the development of knowledge, skills,
competencies.... of the persons
Skills development is an important part of HRD usually
focusing on Technical and Vocational Education and
Training (TVET)
TVET relates “the study of technologies and related
sciences and the acquisition of practical skills, attitudes,
understanding and knowledge relating to occupations in
various sectors” in addition to general education [UNESCO]
Skills development provides the basis for wage/salaried
and self employment ( and entrepreneurship)
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The range of skills can be broadly classified into;
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Basic Skills:
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Cross Functional Skills:
◦ Basic –which facilitate the acquisition of knowledge
◦ Cross functional—which permits one to perform effectively in a
range of job settings.
◦ Content skills—literacy, numeracy, listening, writing,
comprehension
◦ Process skills -- critical thinking, active learning
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Social skills –ability to work with ours
Technical skills –related to the occupational standards
Problem solving skills
Resource management skills —time management
System skills –visioning, decision making, monitoring ability
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Alternative Approaches to Skills Development
◦ Human Capital/Productivist: this is the traditional
approach to TVET—training for growth/productivity and
skills for work/employability
◦ Human Centred:
 Human development and capabilities: based on freedom for
ability of persons to choose their own development path
 Human rights: persons have a basic right to education and
training
 Human security : combines the two above in the context of
promoting peace, dialogue and environmental sustainability
 Human flourishing: giving persons the opportunity to
explore their intrinsic creativity and productivity
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Holistic/Integrated Human Development:
involves an encompassing /integrated approach
to skills development –technical (related to a
particular industry); employability (how to get
and keep a job); generic (life or interpersonal)
and basic ( literacy, numeracy etc)
In practice, many of the elements of the above
approaches are involved in the delivery and
development of TVET within institutions and on
the job as education and training are both
dynamic and need to reflect social and economic
needs— current and future
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Since the 1960s the economy of Barbados has
experienced a general decline in economic
growth:
◦ 1960s---relatively high growth rates averaging 6%
◦ 1970s---slowdown in growth to 3% with 1970-75 (
decline) and 1975-80 ( recovery)
◦ 1980s---further slowdown in growth to 1% with
1980-85( decline) and 1985-90 (recovery)
◦ 1990s---slight improvement in growth to 1.5% with
1990-94 (decline) and 1994-2000 (recovery)
◦ 2000s---relatively constant at 1.2% with slight
decline in 2001, recovery=2002-7 and decline
=2008----???
Real GDP Growth (%)
19
75
19
77
19
79
19
81
19
83
19
85
19
87
19
89
19
91
19
93
19
95
19
97
19
99
20
01
20
03
20
05
20
07
20
09
20
11
Economic Growth in Barbados 1975-2011 ( % )
10
8
6
4
2
0
-2
-4
-6
-8
Year
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Decline in agricultural production and manufacturing
output but a growth in the services sector esp
tourism and international business
Transition from agricultural based economy to
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Barbados’ international profile:
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services oriented economy
◦ High income non-OECD country ( World Bank)
◦ Very high human development ( ranked 38 out of 186 countries in the
Human Development Index in 2012- UNDP)
◦ Ranked 44 out of 144 countries (Global Competitiveness Report
2012-13)
◦ Making the transition from the “efficiency” stage of development ( a
focus of efficient production and quality products) to the “innovation”
stage ( focus on unique and new products) (World Economic Forum)
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Two (2) Challenges facing the country in the real
economy:
◦ Barbados has been experiencing a “growth slowdown”
which is usually associated with a “middle income trap”
where countries are unable to push through to the “high
income” stage. Bit of a paradox as Barbados’ international
profile suggests “high income” status. The Economic
Growth Challenge.
◦ Relatively high level of unemployment especially among the
youth ( although there has been some decline the early
1990s): 1992-23% to 2007-7.4% 2012-11.6%. There has
been universal secondary level education since the mid
1960s but 48% of population aged 15+ years have no
certification!! (population census 2010). The Human Capital
challenge.
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Employment growth has been relatively low—
average annual rate of 1.4% over the 1987 to
2008 period ( with a decline over the “Great
Recession” period).
Relatively constant number of skilled agricultural
workers ( about 3000) but a decline in
plant/machine operators/assemblers (from 9000
in 1995 to 7300 in 2012)
Growth in senior
officials/managers/professionals/technicians (
esp females) over past two decades. This
grouping constitute about 30% of the employed
labour force and reflects the services-orientation
of the economy.
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Service/shop workers have growth over the years
and constituted 19% of the employed in 2012.
Employment in Elementary occupations has
decline moderately over the years from 26,500 (
23%) in 1996 to 22,500 (18%) in 2012.
Labour market has seen an overall improvement
the human capital base (as measured by
occupational classification) but there is some
concern about a “missing middle” in the
occupational skill ladder ( ie Skilled crafts and
trades and Technicians/Operators). Some
“creative destruction” may be taking place in the
economy
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Using a measure of mismatch based on the national
and occupational unemployment rates:
◦ MM= (1-ui)/(1-u) where ui is the unemployment rate
among occupation i, and u is the national unemployment
rate
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MM less than 1 for elementary occupations over
1996-2012 period and for clerks/service
workers/skills agric workers over 2006-2012(
indicating mismatch or unemployment rates in these
groups higher than national rate). Need to re-allocate
these resources
MM greater than 1 in senior officials /professional
technicians/ associate professionals ( no mismatch,
possible shortage as evident by work permits data)
MM equal to 1 in craft/plant and machine operators
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Preliminary econometric research(Earning
Equations) using data from the labour force
survey for 2003 indicate that the private
Rates of Return for Vocational education and
training were
◦ Males----- 17%
◦ Females ---11%
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Comparable with university education
◦ Males ----18%
◦ Females---16%
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Increase in the number of persons reporting as “
self employed” from 14,000 in 1996 to 17, 500
in 2001 to ???? In 2012
Ageing of the population esp those 60+years
(1970—11.6% to 2010—17.8%)
Some degree of migration of skilled persons over
the years esp nurses and teachers
World Competitiveness Reports have cited
weaknesses in labour market with respect to:
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Labour market efficiency
Higher education and training
Work ethic
Labour Productivity/performance
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Several institutions exist to provide training and
skills development along the skills/competences
ladder ( basic to high)
The percentage of the population 15+ years that
has received institutional training has increased
from 39% in 1980 to 58% in 2010, while noninstitutional training ( on the job, private study
and other forms) has declined from 59% to 38% .
NB: surveys of enterprises still report a high level
of on-the-job training amongst its workforce.
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Main institutions involved in the skills
development enterprise include:
University of the West Indies (UWI)
Barbados Community College (BCC)
Samuel Jackman Prescod Polytechnic (SJPP)
Barbados Vocational Training Board (BVTB)
Technical and Vocational and Education Training
Council (TVET Council)
◦ Along with Erdiston Teachers’ Training College,
Youth Entrepreneurship Scheme ( YES) and private
providers
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An examination of the data for these institutions
indicate the following:
◦ General upward trend in persons enrolled and
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graduating over the past decade
UWI and BCC provide higher level skills—degrees and
associate degrees
Relatively flat enrolment in SJPP and Erdiston over the
past decade
SJPP and BVTB provide mid and lower level training—
diploma and certificates in technical and vocational
areas
General increase in persons in BIMAP’s long term and
short/special courses, but decline in professional
courses over the past decade.
No. of Students
Enrolment in Tertiary Institutions 2003-2009
8000
UWI
7000
6000
BCC
5000
SJPP
4000
Erdiston
3000
2000
1000
0
Year
BVTB Persons Trained in Skills Training 2000-2011
1800
1600
number
1400
1200
1000
Persons Trained
800
600
400
200
0
2000
2001
2002
2003
2004
2005
2006
Year
2007
2008
2009
2010
2011
Participants in BIMAP Courses 2000-2012
2000
1800
1600
1400
no.
1200
Long Term
1000
Short/Special
Professional
800
600
400
200
0
Year
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Policy Framework for skills development
◦ A Social Demand approach to education and training adopted—
supply side focus
◦ Provision of “free” and low fee education and training which
encourages oversupply in some cases ( even a “diploma disease
effect” and some “bumping down effect”)
◦ Largely public provision of education and training ( BIMAP has a
commercial focus for business education and training)
◦ Tax incentives provided for education and training along with
scholarships, grants and loans ( training and re-training)
◦ Emphasis recently on “competency based training” which can be
extend to “ capabilities based training”
◦ Adoption of National and Caribbean Vocational Qualification
frameworks (NVQ/CVQ)
◦ Use of information technology in teaching and training ( Edutech)
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Emergence of a “new economy” for Barbados based
on trends in:
◦ Demography
◦ Technology /Innovation
◦ Economic policy and creative destruction
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Skills development would be largely demand driven
as these trends provide the basic for human
resources planning (ie labour market signalling
approach to HR planning)
There is a “time to educate and to train” which varies
according to the level of skill/competency needed to
perform effectively/efficiently on the job.
Some supply driven skill development can result in
entrepreneurship/new ventures —supply can create
its own demand
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Guiding documents for medium and long term growth and
development in Barbados:
◦ The National Strategic Plan of Barbados 2006-2025---a fully
developed society that is prosperous socially just and globally
competitive
◦ Medium Term Development Strategy of Barbados 2010-2014 –
globally competitive and productive economy, growth rate of
above 3%, reduced unemployment, poverty reduction, stable
macroeconomic environment, entrepreneur development and
environmental sustainability
◦ Revised Medium Term Fiscal Strategy 2010-14– establishment of
fiscal targets
◦ Protocol for a Social Partnership VI
◦ Throne Speech 2013 ( socially balanced, economically viable,
environmentally sound and characterised by good governance)-
productivity growth of 2 to 3 % per annum
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Several areas of economic activity can be developed
based on demographic trends, changing
consumption patterns and technological
developments as Barbados moves to the
“innovation driven stage of development” (WEF)
◦ Personal care—domestic market linked to tourism
◦ Cultural/creative sector( including heritage) —regional and
international markets
◦ Geriatric care—domestic market
◦ ICT—international market
◦ Tourism and Hospitality—regional and international market
◦ Construction –domestic market ( possible regional market)
◦ Health/wellness ( Medical Tourism)—regional and
international markets
◦ Fashion and Design—regional/international markets
◦ New Agriculture ( linked to health and wellness—domestic
and regional
◦ New Manufacturing ( based on new technologies)—
domestic and regional markets
◦ Green economy services/Renewable energy— all markets
◦ Financial services—international market
◦ Natural products—international market
◦ Educational services—domestic, regional and international
markets
◦ Blue economy services—yachting, boat repair—regional and
international
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Preliminary evidence in Barbados indicates the
following areas of skill demand:
◦ Personal care (skin care specialists, manicurists/ pedicurists,
cosmetologists, hairdressers, dental assistants, hygienists)
◦ Cultural sector (make-up artists, theatrical and performance
technicians, visual artists, film assistants, models)
◦ Geriatric care (medical nursing assistants, home care assistants,
social/human services assistants, pharmacy technicians, physical
therapist aides)
◦ Maritime sector (welders, electricians, plumbers, chefs, cooks)
◦ ICT sectors (programmers, data entry, computer repair
technicians, electronics, maintenance workers)
◦ Construction (masons, carpenters, joiners, electricians, plumbers,
interior designers, draftspersons)
◦ Hospitality (customer service reps, spa assistants, tour
operators/guides, golf course attendants)
◦ Health/Wellness (therapists, personal trainers, gym personnel)
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Human Resources Development Strategy 2011-2016
and National Training Plan 2011-16 provide the
planning framework for skills development in
Barbados
Need to focus on implementation
Use of a strategy map which would link different
elements of the Plan and strategy in a systematic way
◦ Which agencies would focus on what type and level of
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training
Role of the school system in the training function
The certification/accreditation process
The sources of financial and human resources
The HR information system needed—esp leading indicators
The national-regional-international dimension of training
This is the charge of the Skills for the Future project
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THANK YOU