Annex 3. Ma. Concepcion Sardaña Chief Technical Advisor ILO STED Project in Cambodia & Myanmar 12 August 2015
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1 Annex 3 Ma. Concepcion Sardaña Chief Technical Advisor ILO STED Project in Cambodia & Myanmar 12 August 2015
2 Human Resources Central to Capability of Firms to Trade Strategy choices are influenced by skills and capabilities of business leaders, and are constrained by the skills that can be provided Technology determines many skills needs, and the success of technology choices is influenced strongly by skills Operating processes and business organization determine many skills needs, and their success is influenced strongly by skills
3 Skills for Trade and Economic Diversification STED The ILO s methodology to identify and anticipate skills needed to improve productivity, trade performance and employment in internationally tradable sectors
4 Designed to use skills to: STED Sector based methodology to provide strategic guidance on integrating skills development into policies to strengthen traded sectors Improve competitiveness Improve position in international trade Drive growth in output and sales Create more decent employment Essentially involves: substantial skills sector studies for traded sectors with strong social partner and stakeholder involvement, and often with continuing project involvement in implementation ( Full Cycle STED ) 23/09/2015 4
5 What is Distinctive about STED? Skills (Anticipation, Implementation) Trade, Industrial Strategy STED Sectoral Approach Stakeholder / Tripartite Approach 5
6 STED Applications Ukraine Year: 2010 Sectors: Metal Industry, Tourism Macedonia Year: 2011 Sectors: Tourism, Food Processing Aid for Trade: Tunisia Jordan (RF) Pharmaceuticals Food processing Kyrgyzstan Year: 2011 Sector: Garments Tajikistan (RF) (Commencing) Myanmar (SIDA) Viet Nam (RF) Tourism, Seafood Cambodia, (SIDA) Malawi (SIDA) Aid for Trade: Egypt Sectors: Food Processing Furniture Bangladesh Year: 2011 Sectors: Agro Processing, Pharmaceuticals
7 Current STED Work Russian funded Applying the G20 Training Strategy Project STED technical assistance in Viet Nam, Jordan, and starting in Tajikistan Aid for Trade Initiative for the Arab States STED technical assistance in Egypt and starting in Tunisia SIDA STED project STED technical assistance in starting in Cambodia, Myanmar, Malawi Developing STED programme Research, Results Based Management, Monitoring & Evaluation 23/09/2015 7
8 STED in Cambodia and Myanmar A component of the Sweden ILO Programme Support Time frame: Up to December 2017 Budget: For Cambodia and Myanmar $1.7 million Project Management: DWT Bangkok/ILO Cambodia ILO Yangon STED Project Team Technical backstopping: Skills Department in ILO Headquarters Skills and Employability Specialist and others from the Decent Work Team in Bangkok
9 STED Analytical Framework Stage 0: Choice of sectors Sector Selection Stage 1: Sector position and outlook Sector Characterisation Envisioning the Future Business Environment Stage 2: Business capability implications Gap in Business Capabilities Required to Achieve Objectives Stage 4: How many workers by skill type? Stage 3: What type of skills? Implications for Types of Skills Needed Modelling Employment and Skills Demand Stage 5: Skills supply gap Gap between Skills Supply and Types of Skills Needed Gap between Skills Supply and Numbers Needed Stage 6: Proposed responses Proposed Response to Future Skills Needs 23/09/2015 9
10 Full Cycle STED Consultation with Constituents STED Sector Selection STED Sector Reports Sector Stakeholder Steering/Advisory Groups Sector Implementation Sector stakeholders ILO support Other development partners National / Sector Skills Institutions Stakeholder skills bodies National capability in skills anticipation 10
11 STED Report is Central A skills strategy to promote sector development Key tool to promote implementation Roadmap for implementation of the STED project Roadmap for implementation by stakeholders directly involved in its development Analysis useful to a wide range of ministries, agencies, development partners, donors not directly involved who are interested in planning, trade, enterprise development, education, training, environment Tool to shape action by providers of education and training, funding bodies, quality assurance bodies, qualifications bodies
12 Development Logic of STED Developing the right skills Strengthens Business Capabilities of Target Sectors STED is not a straightforward Training Needs Analysis (TNA). We are not just asking employers what skills they want and need. We are trying to identify what most needs to be done on skills to have a significant impact along this chain, and to take / facilitate / inspire action to achieve this. Greater Productivity & Market Competitiveness More Sales in Traded Markets More Employment in Decent Jobs
13 Sector Selection Criteria Economic development perspective Potential for impact National and sector stakeholders Avoiding duplication / seeking synergies TVET, universities, other provision
14 Sector Selection Economic Development Perspective Which sectors should be priorities? Which traded sectors are potentially strong enough to compete effectively? In what sectors is there a clear basis for competitive advantage? How attractive are markets in terms of growth, potential profitability, offering jobs at a skill level appropriate to the country s economic development path? What is best for economic diversification? (widening range of traded sectors on which country is mainly dependent) Coherence with sector development priorities of the country
15 Sector Selection Potential for Impact Greater value of sales of traded products / services (whether greater volume or greater unit value) Potential for greater decent employment ideally through improving both numbers and job quality Taking some account of employment effects throughout the economy direct employment in the sector, indirect employment in the sector s supply chain, and induced employment arising from consumer spending by those employed directly and indirectly For example: Direct employment in processing food for export Indirect employment in agriculture, transport, agricultural wholesale to supply food processing sectors with raw materials Induced employment in retail, wholesale, consumer services etc. paid for by spending of those employed directly and indirectly
16 Sector Selection National and Sector Stakeholders Approval by national stakeholders Have to choose in coherence with perspectives of constituents and other national counterparts Will want national stakeholders to own the sector analysis and recommendations, as this may be key to an effective institutional response, allocation of resources, enabling of institutional change, complementary action beyond sector stakeholders etc. Hope to mainstream good skills policy approaches nationally Engagement by sector stakeholders Methodology depends on active engagement by sector level stakeholders through interviews, surveys, steering groups, workshops, ownership of implementation
17 Sector Selection Avoiding Duplication / Seeking Synergies When selecting sectors, must understand existing policy and TA context, including existing sectoral development studies, strategies and policies Select sectors and adapt methodology to avoid unnecessary duplication and to make best use of existing high quality analysis, strategies, implementation
18 Sector Selection TVET, Universities, Other Provision STED is designed to cover skills associated with all levels and types of education and training ILO has a particular competence at TVET level Institutionally, preference for sectors in which TVET level skills have a significant role
19 Case Study Sector Selection in Jordan continued Duplication Risk (USAID) Low Competitive Significance of TVET Skills Potential Impact of Skills on Desired Outcome Shortlist Ready made garments Furniture Software and IT Services Tourism Healthcare Tourism Food Processing Pharmaceuticals Financial Services Publishing Printing / Packaging
20 Policy Coherence and STED Planning Industrial and trade policy SMEs, FDI, Competitiveness, GVCs/RVCs National Employment Polices (NEPs) Education and training policies Sustainable and green development Science policy Health, food safety, technical standards, regulation
21 CTIS Ten Priority Export Sectors Garments Footwear Light manufacturing/special economic zones Processed food Fisheries Milled rice cassava Natural rubber Tourism High value silk
22 Proposed selection criteria 1. Current export position (export value, import value, export growth) 2. Potential growth of exports in sector 3. Presence of sector/industry groups 4. Current and potential support agencies 5. Current employment level 6. Potential for employment growth 7. Indirect employment creation 8. Skills shortage/gap 9. Expected occupational demand (of H, M, L skills) 10. Training institutions supporting the sector
23 Thank you
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