Shanti Jagannathan, Senior Education Specialist, ADB ADB International Skills Forum December 2012

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The Skills Development Reform Roadmap in ADB Developing Member Countries Shanti Jagannathan, Senior Education Specialist, ADB ADB International Skills Forum 11-12 December 2012

Why is skills development important for ADB? Skills development is important to our developing member countries - at the heart of strategies for inclusive growth More jobs, industrial up gradation to avoid middle income trap, innovation and knowledge based economies : all require a highly skilled work force Skills development is key to address inequality which is growing

ADB s portfolio in skills development/tvet Ongoing and planned projects in 12 DMCs in South Asia, South East Asia, East Asia, Central West Asia and the Pacific Currently ongoing projects and future pipeline projects for 2013-15 of the order of about $ 1.1 billion Diverse settings and varied approaches, yet considerable underlying commonality of issues and approaches

Common issues that ADB projects are addressing: Lack of relevance and poor linkage to markets Weak learning environments and poor quality of trainers Poor access to training opportunities leading to employment; jobs issue Large informal markets and low wage employment Poor quality of training and skills mismatches

Common reforms and activities Modernization of infrastructure/equip ment Updating curriculum and trainers Competency based training Qualification frameworks with assessment and certification Skills vouchers, student loans Skills challenge fund to expand training offerings Skills development for informal sector Training to industry standards and sector skill councils Promoting schoolindustry linkages

Skills Development in ADB Developing Member Countries Approach to skills development projects Strategy Approach Move from skills development to workforce development; improving relevance and fit; bridging with the world of work ond Process Approach Innovative delivery of training; modular approaches; work place solutions; participation of private providers; collaboration with employers People Approach Work for different demographic profiles; for large populations; disadvantaged communities; life long learning and upskilling opportunities; scholarships, stipends for girls, ethnic groups Sustainability Approach Strengthen sustainable financing of skills development but also skills for sustainability such as green sectors Business Approach Accelerate economic and industrial progress support core growth sectors of the economy. Redress skills mismatch for employers; leverage new, technologies and ICT

Key issues for the region Strengthening foundational skills Consolidating secondary and tertiary education Addressing vulnerable employment

Secondary and TVET enrolments Lower Secondary Enrolment Upper Secondary Enrolment Tertiary Enrolment TVET enrolment as % of total secondary enrolment TVET enrolment as % of total upper secondary enrolment 2010 2010 2010 2010 2010 Bangaldesh 66 40... 4 9 Cambodia 60... 13 2 8 China 92 71 26 21 46 India 81 50 18 1 2 Indonesia 92 63 23 17 41 Krygystan 94 62... 3 15 Lao 55 32 17-1 Mongolia 89 90 53 10 29 Sri Lanka 103 97 15 5 11 Timor Leste 63 49... 6 14 Vietnam 88 65 22...... Source: UNESCO, UIS

Patterns of unemployment % of total unemployed with secondary education % of total unemployed with tertiary education Share of vulnerable employment in total employment Bangaldesh 24.4 15.9 85 Cambodia 86.7 India 37.7 33.3 82.8 Indonesia 40.7 9.6 63.7 Krygystan 77.1 9.6 47.3 Lao 88 Mongolia 45.8 18.5 Sri Lanka 22 32.6 39.8 Vietnam 73.9 Source: UNESCO, UIS (various years, 2004-2009 data)

A Skills Development Eco System Skills Development Building an Eco System Skills eco system: Industry for demand side Governmet for regulation and affirmative action Professional bodies for quality assurance and certification Constituent Elements

A holistic policy framework Skills Development: Key Policy Strands Cooperation with stakeholders Innovations in ADB financing, eg MFF Financing ++ approach with knowledge partnerships An Integrated Approach to Skills Developent

To conclude How can different agencies coordinate a coherent approach to skills development? What are the most pressing reforms that must be implemented? What are the top 2-3 messages for ADB and its DMC partners? What kind of continued dialogue is required? Should the ADB Skills Forum be sustained?