The CARICOM Single Market and Economy and Workforce Development

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1 The CARICOM Single Market and Economy and Workforce Development Presentation to: Workshop for the Caribbean Educational Sector on the Development and Certification of Basic and Labour Competencies Trinidad and Tobago August 17 20, 2004 Myrna C. Bernard Programme Manager Human Resource Development CARICOM Secretariat

2 Focus on Workforce Development: Context Global and hemispheric liberalisation The increasingly important role of knowledge as a factor of production Emergence of new economic activities based on information and knowledge Demand for higher quality of goods and services to enable competition in the global market New jobs associated with higher technology occupations requiring higher entry-level skills. Rapidly changing skill sets required for jobs Existence of high youth unemployment alongside skill shortages in key areas

3 The Context Challenges for CARICOM Small countries with limited leverage Not able to exploit preferential markets Not producing enough Not competitive enough Combination of lack of, or inadequate resources at the same time that there are unused resources Continued outward migration, unemployment, social restlessness and lack of social cohesion

4 THE RESPONSE The Conference of Heads of Government of the Caribbean Community, at its tenth meeting in Grande Anse, Grenada in 1989, decided to deepen the integration movement through the establishment of the CARICOM Single Market and Economy (CSME)

5 The Rationale In deciding to establish the CARICOM Single Market and Economy (CSME). The Conference of Heads of Government noted the : need to work expeditiously together to deepen the integration process and strengthen the Caribbean Community in all of its dimensions to respond to the challenges and opportunities presented by the global economy.

6 The Opportunities Globalisation presents enormous challenges for small economies such as ours in the Caribbean It also simultaneously presents several opportunities to those countries and regions geared to take advantage of it The most important and urgent requirement for seizing the opportunities presented by the global environment is the transformation from a labour intensive to a highly trained knowledge -based workforce

7 CARICOM Single Market and Economy (CSME) A single enlarged economic space achieved by: free movement of goods, services, capital technology and labour non-discriminatory access to the region s resources and markets for CARICOM nationals common external trade policy

8 Main Focus of the CSME The CSME is intended to provide the framework for: greater opportunities for employment, investment, production and trade competitive products of better quality and prices improved services provided by enterprises and individuals greater opportunity for travel for nationals to study and work in CARICOM countries increased employment and improved standards of living

9 LEGAL ARCHITECTURE The Treaty Inter-governmental Agreements Implementing Laws Regulations, Orders And Rules Dispute Settlement Regime Enforcement Under Domestic Law Enforcement Under Caribbean Court of Justice

10 CARIFTA Common Market Single Market and Economy Removal of barriers to regional trade in goods Common External Tariff - Devpt. of capital markets - Standard setting - Competition policy - Consumer protection Removal of barriers Goods, services, capital flows technology Removal of barriers to regional trade in goods Token provision for Est. of business Services Movement of capital Co-ord. of econ. Policy Co-ordinated devpt of productive and econ. sectors Free movement of skilled persons Harmonisation of macro-economic policy Common external trade Policy Rights of establishment of enterprises

11 Fully developed and implemented legal framework Stronger collective governance framework - CCJ, Standards (educ., goods & services) Competition Policy The full enjoyment of national treatment by citizens of all Member States trade in goods provision of services movement of capital A creative, productive and competitive knowledge - based workforce CSME: Expected product Effective coordination of macroeconomic, sectoral and foreign trade policy The freedom to create a company or other legal entity and establish and operate such an entity in any part of the CSME The freedom to: Move around to seek work and compete for employment in any part of the CSME Travel within the Community Common passport

12 THE FREE MOVEMENT OF LABOUR Main Programme Elements: Elimination of work permits Facilitation of immigration points Legislation protecting the right to work of approved categories of skills Harmonisation and transferability of social security benefits Mechanisms for equivalency and accreditation Development of a skills register Coordination of social policies

13 THE EMERGING LABOUR MARKET More integrated and competitive for high level skills Emphasis on weightless goods with high knowledge content New technical competencies required, which are relatively less specific than in the past: languages, data processing, logical reasoning, capacity for analysis and interpretation of different codes, etc. Radical changes in occupational profiles, job design and content Security derived from employability rather than employment

14 Which Approach to Competitiveness? Girvan (1997) in examining the implications of global change on the prospects for economic growth and human development: ' In the case of the passive approach, competitiveness tends to be defined as the ability to offer trans-national firms lower production costs and higher returns on their investment. The emphasis of Government policy is on guaranteeing low-cost labour, low taxes, and a liberalised economic environment. The active approach places greater emphasis on the development of human skills and of technological, entrepreneurial, and managerial capabilities as a basis for developing competitive advantages.

15 Specific Challenges for Workforce Development Changing nature of organisations and the nature and organisation of work flexible, problem oriented, and collaborative in contrast to the traditional work place in which work is repetitive, routinised, and organized hierarchically. Changed life plans of individuals no longer linear, education work- leisure "life-long employment" disappearing, the concept of "lifelong training" emerging. Polyvalent training Education /Training which facilitates rapid re-conversion of skills

16 The Market is a Social Institution Anchored in the skills, abilities, attitudes, perceptions, motivations and expectations of people The extent to which the provisions translate into real opportunities depends on the adequacy of our Human Resource / Workforce Development system Key Outputs include: An informed public which understands and supports the CSME and demonstrates this understanding and support by active participation /competition in the markets of individual interests. Stronger presence of the elements of Community and social cohesion

17 WHAT CONCEPT OF HRD? An iterative process embracing three highly interdependent elements: Enhancement of productive capabilities (Education /Training and Health) Efficient utilisation of human resources The participation of people in the benefits of increased output through an enhanced quality of life

18 A Workforce Development System Environment CSME / Global Economy Education / Training Subsystem Governance Subsystem Employment Subsystem Community Participation Subsystem

19 Pertinent Characteristics of the WD system Is itself, part of a larger system Includes the full spectrum of education and training for all levels of workers Encompasses several interdependent sub- systems Education and Training Health Labour relations Community development Is an open, sociotechnical system information, energy, material exchanged with environment integrates human activity around various technologies The development of social and cultural capital is therefore a integral element

20 Who is involved? Ministries of Labour, Education, Industry and Commerce, Youth Affairs National Training Agencies National and Regional Training Institutions Employers Employees (Trade Unions) Professional Organisations Community based Organisations Individuals

21 Governance The governance subsystem Spans the entire system, setting goals, developing strategic and operational plans an establishing control processes. Has an important role to play in ensuring congruence between the system and its environment an among the various subsystems. Triggers and sustains the inter-sectoral systems approach to policy and programme development and execution.

22 Key Components of the WDS Externally efficient formal education system Diverse opportunities for lifelong learning by youth and adults Incentives for sustained public and private sector investment in skill development Strategic linkages among employers, unions, educators, government, NGOs, and individuals Mechanisms for continuous improvement and results-based accountability Labor market information, job placement, work support services Strategies for certifying knowledge and skills however acquired Pathways for continued learning in the informal and formal learning systems.

23 Imperatives for WDS Education and training for citizenship of the region from the earliest levels A demand-led system Clear governance framework Stimulating employer demand Stimulating individual demand Increasing capacity on the supply side and raising quality Tackling the barriers of time and money that prevent individuals taking up opportunities

24 Technical and Vocational Education (TVET) Sound basic and secondary education an important enabler Reorientation to competency based approaches based on occupational standards Benchmarking to international standards Enterprise development Seamless certification system Coordination of training at national and regional levels Training as joint responsibility of providers and end users and also a strategic component of labour relations systems

25 Mainstreaming Key Elements Culture Gender Technology Information and research Application of ICTs

26 Quality Assurance Systems for certification and accreditation are integral to the functioning of integrated markets such as the CSME Importance of providing a seamless system that integrates the vocational and traditional academic tracks Systems for credentialing of skills Portability of qualifications

27 COHSOD The Revised Treaty of Chaguaramas outlines specific responsibilities for the Council for Human and Social Development (COHSOD): COHSOD, in consultation with the competent Organ, shall establish common standards and measures for accreditation or when necessary for the mutual recognition of diplomas, certificates and other evidence of qualifications of the nationals of the Member States in order to facilitate access to, and engagement in, employment and non-wage-earning activities in the Community. (Article 35)

28 Regional Accreditation Model developed and approved for Regional Accreditation Authority Functioning National Accreditation Bodies a key pre-requisite Sub-regional body for the OECS Common approach to workforce development and recognition of occupational qualifications in CARICOM Support the management of free movement of skilled labour, a key feature of the CSME.

29 Regional Co-ordination of TVET Regional Strategy Regional Co-ordinating Mechanism for TVET CANTA Endorsed by COHSOD as the implementation arm of the CARICOM Regional Coordinating Mechanism for TVET

30 Type/Level of Programme Orientation And Purpose Credits Entry Requirements Occupational Competence Academic Competence Level 1/ Certificate Completion of a preparatory programme leading to further study in a given academic or vocational area or entry qualification for a particular occupation Minimum 10 Credits To be determined by the local training Institution Semi-skilled, entry level. Supervised worker Grade 10 Level 2/ Certificate To prepare a skilled independent worker who is capable of study at the next level (post-secondary) Minimum 20 Credits Grade 11 or Equivalent Skilled Worker Unsupervised Worker Grade 11 Level 3/ Diploma and Associate Degree A post-secondary qualification emphasising the acquisition of knowledge, skills and attitudes (behavioural competencies) to function at the technician/supervisory level and pursue studies at a higher level. Diploma: Minimum 50 Credits Associate Degree: Minimum 60 Credits 4 CXC s, Level 2 Certification or Equivalent Technician, Supervisory Associate Degree Entry to Bachelor s Degree programme with or without advanced standing Level 4/ Bachelor s Degree Denoting the acquisition of an academic, vocational, professional qualification, who can create, design and maintain systems based on professional expertise Minimum 120 Credits 5 CXC s, Level 3 Certification or Equivalent Competence which involves the application pf knowledge in a broad Range of complex, technical or professional work activities performed in a wide range of contexts. This includes Master Craftsman, Technologists, Advanced Instructor, Manger, Entrepreneur Level 5/ Post Graduate/ Advanced Professional Denoting the acquisition of advanced professional postgraduate Competence in specialized field of study or occupation. Level 4 Certification or Equivalent Competence which involves the application of a range of fundamental principles at the level of chartered, advanced professional and senior management occupations.

31 Towards the Development of CVQs Vocational Qualifications already being offered through Training Agencies Mechanisms being developed for CVQ COHSOD has already endorsed several regional occupational standards CANTA to spearhead development process

32 The CSME Providing the legal and administrative framework to facilitate regional co-operation in building capacity for developing and sustaining an adequate WDS A beneficiary of the WDS through the availability of a wide pool of skilled human resources

33 Beyond Competitiveness and the CSME There are several theatres of integration beyond the CSME for which the region needs to be prepared through guaranteeing the competitiveness of its workforce, e.g. the FTAA, WTO etc. Beyond this however, we should not lose sight of the strategic objective of our HRD efforts: Improved quality of life for all Viewed in this way, HRD becomes the means to, as well as the end product of our development

34 Real Opportunities or Mirage? The benefits to be derived from the provisions made in the CSME will remain a mirage for many of our citizens, unless: the necessary legal and administrative arrangements are put in place at the national level systems for Human Resource Development at both national and regional levels ensure that labour force participants at all levels, in all member states are equipped not only with the information and skills, but also the attitudes and orientations necessary to convert these provisions into real opportunities.

35 Partnerships Co-ordination and facilitation of Workforce Development activities in support of the CSME could not be achieved without significant partnerships with regional and international agencies Important partners in the present context include CANTA Training Agencies in Latin America CXC Universities in the region ACTI ILO OAS

36 Thank You