Federal Department of Foreign Affairs FDFA Swiss Agency for Development and Cooperation SDC

1. Federal Department of Foreign Affairs FDFASwiss Agency for Development and Cooperation SDC Swiss Cooperation Office Bangladesh Swiss Cooperation Office Bangladesh – AHMTA – October 2010 South-Asia Division – Frank Wiederkehr – September 2010 MTR of Bangladesh Cooperation Strategy 2008 - 2012STEP 2:SKILLS DEVELOPMENT SUB-DOMAINEMPLOYMENT AND INCOME PORTFOLIOSkills Development Sub-Domain

2. Federal Department of Foreign Affairs FDFASwiss Agency for Development and Cooperation SDC Swiss Cooperation Office Bangladesh Step 2: Skills Development (SD) 2.1 SD context in Bangladesh2.2 Synoptic view of SD related changes 2.3 SD related donor mapping2.4 Snapshot of SD results2.5 Conclusions for SD sub-domain

3. 2.1 SD context in Bangladesh SD providers – Increase in interest but capacity constraints, fragmented, uncoordinated efforts: Public Sector: 22 ministries and their directorates / departments / bureaus provides parallel interventions, mostly project based. GoB institutions highly politicized. Non Formal Sector: Playing a huge role in NF training but lacks standardization and sustainability Private Sector (including trade bodies, recruiting agencies): Not yet linked to SD / training / education. Informal Sector: Low skills = low income Overseas Sector: Huge potential but massive reforms required Human resource & productivity - Huge gaps in HRD continue to exist and become acute: In 150 million, 50% youth and young adults are illiterate , low/semi skilled. This cohort (14-45) consists of the most 'productive' group in the population. 60 civilian workforce & 2.5 million people join the labour force each year. Under-employed 30% A ‘social bomb’ is said to be in the making due to the mismatch of demand and supply of decent job opportunities. 5.5 million (professional 3%, skilled 31%, semi skilled 16%, low skilled 50% ) overseas employees send remittance of US $ 10.72 b per year (13% of GDP & 5 times of ODA).

4. 2.2 Synoptic view of SD related changes • Changes in SDC Position / Policy BD Policy Environment Change in ODA Environment BD CONCLUSION

5. 2.2.a. Changes in SDC Position / Policy • Employment and Income confirmed as key thematic priority for SDC overall (REO), within SASIA and within the CS-Bangladesh • SD focus shifted to E&I Network, which emphasizes more on the link between SD / education / training & E+I / M4P • SD is promoted as Swiss specialty (dual education system, apprenticeship, and innovations etc.) • New skills development relevant global issues: e.g. migration • Focus: less education, more skills

6. 2.2.b. Change in SD related Policy Environment BD • SD (pro-poor & inclusive) high on agenda (e.g. new policies: Skills Development Policy, Education Policy; reinstating National Skills Development Council /NSDC; new projects) of the GoB and DPs, but not yet reflected in national budget or JCS, etc. • Increased demand for skilled human resources in all sectors results in stakeholders initiating large projects looking at systemic reforms with improved coordination. • Stronger emphasis on Public Private Partnership (e.g. Industrial Working Committees) but Private Sector yet to become adequately responsive. • Migration viewed as strategy for development and dealing with high demand for employment but traditional large scale manpower hosting countries (Middle East, Malaysia etc) have restricted recruitments from Bangladesh. • NGO regulation guidelines being formulated. • Social mobilization campaigns (e.g. TVET Week) are being carried out to address the existing (negative) attitude problem towards SD.

7. Some highlights of the new SD Policy • Comprehensive, coordinated approach • Expansion (formal, non formal, informal, private sectors) & inclusion (removal of grade 8 prerequisite, 5% quota for PWD, gender responsiveness) • Sets standards, equivalence and nationally recognized qualifications (e.g. National Technical Vocational Qualification Framework /NTVQF; Ladderisation; Industry Standards & Qualifications; Skills Quality Assurance System; Competency Based Training & Assessments; Code of Conduct for informal economy; Recognition of Prior Learning; Labour Standards, etc) • Focus on Partnerships (e.g. PPP Board, Industry Skills Councils) & role of different actors • Highlights capacity development of service providers, including a Skills Data System, M&E, R&D (needs & evidence based policy planning) • Decentralized system (recruitment, flexible training to meet local demands etc.) • Social marketing & campaigns • Shared investments; Outcome Based Funding; HRD Fund (based on SD Investment Plan)

8. 2.2.c. Change in SD related ODA Environment BD • Large DPs investing in SD (ADB+SDC:SDP, EC+ILO:TVET Reform, WB: STEP etc). Increase in aid for major DPs (DFID, EC, AusAid, CIDA etc) with shift to support large projects for cost effectiveness. Some DPs (Norway, Denmark, etc.) prioritizing away from SD. • Trends to channelise aid more through the government & DP channels – even those meant for NGO-implemented projects. Thus these are becoming more subject to the government bureaucracies. • DP programs are more result oriented, but varying expertise on result based management on partner side • Increased focus on governance but challenges remain when working in a consortium • Efforts for increased coordination and collaboration but competitive attitude yet to change (e.g. multilaterals) • Small actors promoting innovations being pushed out of the scene, once the idea develops / excels. On one hand, it proves success but on the other hand it leads to a challenge of being side- lined. • SDC playing a lead role (as Chair of the SDWG) in SD (& migration) policy dialogue .

9. 3.2 Synoptic View of Changes Changes in SDC Position / Policy Changes in ODA Environment Changes in Policy Environment • CONCLUSIONS • Growing awareness about skills crisis & steps being taken. Challenges: implementation of the SD policy, inclusion in national budget; making functional the NSDC; ensuring reforms & coordination & change of attitude remain a problem also. However, there is adequate scope for SDC to work in SD, including play a lead role in policy dialogue & coordination (loud voice, small funds). • SDC was able to make the required shift & re-orient towards E+I (Edu, MSEP, SLU to E+I; basic education & training, MSEP to SD, market orientation & put in place a functional E+I team

10. Tertiary 2.3. SD related donor mapping BU IED (EKN, BRAC, SDC ) 9 mio NSDC (?) SDP 66 mio (ADB, GoB, SDC) TVET Reform Project (EC) 21mio Skills & Training Enhancement Project / STEP (WB) 88 mio UCEP (DFID DANIDA, SDC SC, UCEP) 28 mio TVET Higher Secondary 11 - 12 MIGRATION REFORMS (SDC) 4 mio APPRENTINCESHIP (SDC, Leather Industry, PRICE) DFID 50 mio Secondary 9 - 10 CMES (SIDA SDC) 5 mio PLCE2 (ADB, DFID, GoB, SDC, Community) 92 mio CAMPE (EKN, NOVIB, SDC) 5.5 mio Secondary 6 - 8 SEQAI (WB) 68 mio Education SWAP (PEDP II, Prog 3) (GoB, DFID, UNICEF, NORWAY, WB, ADB, AusAID, SIDA, JICA, EC, CIDA,EKN, WFP) 1.4 bio BLCE (?) Primary 1 - 5 ASHRAI (SDC) 1.6 mio ROSC (WB GoB, SDC) 64 mio UNIQUE (EC) 40 mio Pre primary

12. 2.4 Snapshot of SD results for 2009 Objective 1: Promote employment opportunities & increased income for the poor CMES ~ Self & wage employed : 269 male & 488 female. The average monthly income increased BDT 3'000 + (34%), BDT 2000 + (34%) and BDT 1000+ (24%). UCEP ~ In 2009, 3'496 (1365 girls) employed & income increased by 350% compared to income before graduation. ASHRAI ~ 10,500 indirectly benefited & 2'060 employed: Full time: 56% (40% women, 27% self employed); Part-time 44% (90% women); Self-employed 27% (12 % women). The average annual family income increased (120%) from BDT 25'000 to BDT 40'000 –70'000. PLCE 2 ~ 307’320 (50% are women) trained of which 40% are self or wage employed with an income of BDT 1'500 – BDT 5'000.

13. Objective 2: Making markets accessible for the poor CMES ~ Increase of production (17,067 kg vermi-compost, 260 kg mushroom, 790 kg honey, carpentry items etc.), demand from market and sale (garments = BDT 12,80,402, steel work BDT 875,774, masonry items BDT 720,000. ASHRAI ~ 70% (1'442, with 45% women) enhanced skills in farm (agriculture, livestock etc.) & off-farm sectors; 70% (1'442 with 35% women) could avail access to farm & off-farm value chain actors. 70% (1'236, with 40% women ) are availing supports from different service providers. 2'060 producers organized into 100 clusters in 5 sub-districts. As a result of these initiatives, productivity in agriculture increased 15% , off-farm sector increased by 70%, productivity in livestock sector also increased and mortality rate of livestock decreased. PLCE 2 ~ 307’320 availed access to 16 different trades and related service providers.

14. Objective 3: Improving local economic framework conditions for the benefit of the poor SDP ~ Worked together with TVET Reform Project to develop a Skills Development Policy, promoting inclusiveness (poor, limited literacy, women, disabled, ethnic minorities etc.) and decentralization. Inclusion of UCEP & CMES in the project's 'Informal Sector Working Committee' to ensure the link between grassroots good practices and policy. Promoting relevance, effectiveness and decentralization of SD delivery. PLCE2 ~ Establishing an Equivalency System and Public Private Partnerships to ensure the linkage between formal, non formal, private sectors. Link with service providers through Continuing Education Centers (CEC) CMES ~ 43 Community Social Enterprise were set up as local business enterprises. ASHRAI ~ 151 Community Organizations (through Lahanti Akhras, which bring together local govt & local business institutions), 27 UZ networks & 9 UZ forums established providing services, to 7'728 Adivashi families I9 districts. (e.g. Recovered5 acres of accessorial land, 74 families = homestead khas land; 1'085 members = Vulnerable Group Feeding cards; 150 members = Vulnerable Group Development cards; 201members = Old Age Allowance; 102 students = stipends; plant 428 trees planted; 39 became members of different committees i.e. 28 in School Management Committees, 7 in Community Policing Committee and 4 in UP Standing Committee; constructed 4.7 km road and 6 culverts; 45% families started to use sanitary latrine; providing legal aid, conflict resolution etc etc.)

15. 2.5 Conclusions for SD sub-domain • Proposed Adaptations to CS • The present objectives of the CS 08-12 remain valid, & should be maintained. • Migration & TVET (working with the formal sector) should be included. • PPP: Apprenticeship • Strategic partnerships (NSDC) • Open Issues • The E+I objectives are relevant in the strategy & we attain the objectives through two sub domains (SD & M4P) with two teams (two will remain as two legs of E+I). • Link with LG projects still do not happen (automatically), not always possible or necessary. • Value addition is a challenge without strong presence, specially when co financing large project with multiple DPs (UCEP, ROSC, etc.) • How to maintain status as innovator? • How to deal with challenges of governance in a consortium / co financed projects. • Prospects 2015 / 2020 • Both SD & migration are issues which will strengthen further in the future • Improve integration of skills and market focus • Public Private Development Partnerships (PPDP)