Investing in African Youth: The North African Experience. Macroeconomic Outlook: Challenges and Opportunities
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1 Investing in African Youth: The North African Experience The African Economic Outlook 2008 Measuring the Pulse of Africa Macroeconomic Outlook: Challenges and Opportunities HB Solignac Lecomte Policy Dialogue Manager OECD Development Centre November 2008 FEMIP Seminar on Human Capital European Investment Bank 1
2 Role of TVSD Key Facts Sustained economic growth but: Low productivity partly due to limited technical skills Increasing youth unemployment Large informal sector Notable improvement in primary education, but: Big pressure on secondary schools and TVET systems High drop out rates 29
3 Definition Technical and vocational skills development Acquisition of knowledge, practical competences & knowhow Public or private TVET schools Dual Training Workplace training in enterprises Informal Apprenticeship Formal Degree of formalization of labour market Informal 3
4 Role of TVSD MDG 1: Eradicate Extreme Poverty and Hunger SMEs development GINI Achieving the MDGs MDG 2: Expand Primary Education Better jobs for parents Elimination of child labour MDG 3: Improve Gender Equality in Educ. Empowering Rural Women MDG 8: Develop Decent Work strategies for youth Info & counselling MDG 7: Environmental Sustainability Technical and Vocational Skills Development Water & soil mgt MDG 6: Combat HIV/AIDS, Malaria, etc. For community health workers MDG 4: Lower Mortality Rates MDG 5: Enhance Reproductive Health 4
5 Constraint s Access: ODA for vocational training in Africa back on track? The donor development agenda (commitments in USD millions, 2005) Source: OECD Development Centre / DAC Creditor Reporting System,
6 Access Enrolment in Secondary Technical and Vocational Training in formal systems International Comparison Percent, average % 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% Sout h East ern Asia Lat in America & Caribbean East ern Asia OECD Sub-Saharan Africa North Africa Source: OECD Development Centre / UNESCO-UIS (2006),
7 North Africa Technical & Vocational Education & Training (TVET): a case for reform Evaluation Low prestige, high attrition rate Weak budgets, underequipped and outdated; teachers poorly qualified and remunerated; curricula obsolete; no proper follow-up and evaluation. Can t meet needs of new entrants to labour market or provide skills required by expanding modern private sector. Private sector: insufficient efforts to design and deliver training (esp SMEs), no incentives Informal workers: no proper training Access remains more problematic for the poor and vulnerable, especially in rural areas. 7
8 Algeria Early stages of reform Reform started in 2006 Revival of traditional craft trades and manual trades (esp. agriculture and construction) New knowledge-based economy Funding of training of teachers Diversification of funding sources 8
9 Egypt Most active Several initiatives Future Generation Foundation (FGF 1998) = training scholarships Senior Executive Programme The Advanced Management Programme The Microsoft Scholarship Programme Basic Business Skills Acquisition programme Mubarak-Kohl Initiative Public/private With external support (GTZ) Supreme Council for Human Resource Development, (2000) Reorganisation of TVET programmes Support from partners : Eu, World Bank 9
10 Morocco Promising National decade of education and training Meet the needs of firms for skilled workers and getting trainees into the job market. Boost the TVET sector s institutional autonomy from the rest of the education system Own ministry financially-autonomous national office for vocational training and work promotion (OFPPT). Welcome participation by the private sector and a range of providers. Results: Share of women trainees rising 70 per cent leave with certificate, over half find a job within 9 months Number of pupils on the rise (est in 2009/10) 10
11 Tunisia New impetus needed MANFORME 1997 All planned actions to be based on meeting the demand in skills Respond to industry needs Flexibility autonomy Efforts to get private sector involved still in infancy Training centres mostly state financed Weak links with firms Weak tax incentives Challenges Attract applicants (VT = failure ) New management model for training centres 11
12 1. Further diversification of funding sources 2. Develop private training markets, competition public / private, encourage more and higher quality enterprise training Strong private sector organisations 3. Tackling obstacles to youth employment 4. Informal sector 5. Migration policies Challenges 12
13 The African Economic Outlook 2008 THANK YOU Measuring the Pulse of Africa Macroeconomic Outlook: Challenges and Opportunities 13
14 Thank you For more information: 14
15 Lessons Learnt Vision and Planning 1. Adopt an integrated vision and clear lines of authorities Training authorities need to be given clear mandate and authority over resources. 2. Improve Forecasting and Planning for Skills Needs Long-term planning + skill audits, monitoring and Evaluation mechanisms 3. Improve the quality of TVSD Switch to demand-driven training model + TVET National Qualification Framework (NQF): 4. Address the informal sector s skill needs (and those of vulnerable groups) In view of its large size, Training in the informal sector should be recognised. 15
16 Lessons Learnt Innovation & Partnership 5. Set up accompanying measures Design of integrated programs that couple training with access to finance, Business development services, Marketing support, network 6. Foster Partnership with All stakeholders Policy design and actual delivery of education and training can best be achieved through a partnership between government, social partners and various stakeholder groups in the formal and informal sectors of the economy. Tunisia: strong partnership with private sector Egypt: The most successful example of PPP between training institutions & businesses is the Mubarak-Kohl Initiative (MKI). 7. Involv Local Communities and Strengthening Local Management of TVSD Delegation of responsibilities to regional authorities.(tunisia: decentralization = devolution of responsibilities to training centres) But... local authorities and school mgt often have Insufficient pedagogical, managerial, and administrative capacity 16
17 To sum up Coherent vision and governance to TVSD 2. Make TVSD bankable: Strategies, action plan and identification of objectives & resources needed 3. Increase awareness about benefits of TVSD among firms and parents 4. Foster evaluation and monitoring mechanisms To be fully effective, TVSD strategies must be integrated into comprehensive employment policies and focus on sectors experiencing employment growth and skill shortages 17
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