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The OECD Development Centre
Effective Skills Strategies in Emerging
and Developing Countries
Knowledge Sharing Workshop on Human Resource
Development, Skills and Labour Mobility
7 October 2015
Carl DAHLMAN
Head of the Thematic Division
Outline
I. Specific challenges for skills strategy in emerging
and developing economies
II. Implications for effective skills strategy
III.Conclusion
The provision of basic education/training is not ensured
- Still many out-of-school children in developing countries (fueling
already high adult illiteracy)
- Increased enrolment has not entailed enough skills acquisition
The informal sector remains prevalent
- Most labour force is engaged in low productivity and not diversified
activities (agriculture, retailing, service )
- Self-employment is widespread and individuals rely on multiple
activities
- Consequently, a large share of vocational and professional training
is informal
I. Specific Challenges for skills strategies in emerging
and developing economies
The provision of basic education/training is not ensured
- Still many out-of-school children in developing countries (fueling
already high adult illiteracy)
- Increased enrolment has not entailed enough skills acquisition
The informal sector remains prevalent
- Most labour force is engaged in low productivity and not diversified
activities (agriculture, retailing, service )
- Self-employment is widespread and individuals rely on multiple
activities
- Consequently, a large share of vocational and professional training
is informal
I. Specific Challenges for skills strategies in emerging
and developing economies
While enrolment has increased substantially, drop-out rates
are high and students do not complete
education cycles.
0
10
20
30
40
50
60
70
80
90
100
CP1 CP2 CE1 CE2 CM1 CM2 6è 5è 4è 3è 2nde 1ère Tle
2005-06 2006-07 2010-11 2013-14
Cycle primaire Premier cycle du secondaire
Second cycle du secondaire
Figure 1: Enrolment profile in Ivory Coast
(newly enrolled students/population at the age of reference, %)
Source : MDCR Côte d’Ivoire, OECD (2015)
The provision of basic education/training is not ensured
- Still many out-of-school children in developing countries (fueling
already high adult illiteracy)
- Increased enrolment has not entailed sufficient skills acquisition
The informal sector remains prevalent
- Most labour force is engaged in low productivity and not diversified
activities (agriculture, retailing, service )
- Self-employment is widespread and individuals rely on multiple
activities
- Consequently, a large share of vocational and professional training
is informal
I. Specific Challenges for skills strategies in emerging
and developing economies
A large share of pupils do not aquire basic skills at the end of
primary school
45%
34%
34%
30%
30%
22%
17%
15%
15%
9%
30%
23%
24%
27%
28%
25%
21%
21%
19%
21%
25%
42%
42%
44%
43%
53%
62%
64%
66%
70%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Côte d'Ivoire
Tchad
Comores
Congo
Togo
Burkina Faso
Sénégal
RDC
Burundi
Gabon
Faible Moyen Satisfaisant
Source : MDCR Côte d’Ivoire, OECD (2015)
Figure 2: Distribution of students at the end of primary according to their level of
performance in mathematics (%)
The conclusion is similar for 15 year old students in Latin America
compared to OECD countries
-100 -80 -60 -40 -20 0 20 40 60 80 100
Peru
Colombia
Brazil
Argentina
Costa Rica
Uruguay
Mexico
Chile
Portugal
Spain
OECD average
Level 1Below Level 1 Level 2 Level 3
Level 4 Level 5 Level 6
Students at Level 1 or below
Students at Level 2 or above
Source: PISA, OECD 2012 database
Figure 3: Share of students at each proficiency level (%), PISA 2012
The provision of basic education/training is not ensured
- Still many out-of-school children in developing countries (fueling
already high adult illiteracy)
- Increased enrolment has not entailed sufficient skills acquisition
The informal sector remains prevalent
- Most labour force is engaged in low productivity and not very
diverse activities (agriculture, small scale trade or services)
- Self-employment is widespread and individuals rely on multiple
activities
- Consequently, a large share of vocational and professional training
is informal
I. Specific Challenges for skills strategies in emerging
and developing economies
The informal sector is prevalent in many developing countries and
still represents a substantital share of
employment in emerging economies
34.1
43.5
49
52.2
60.2
69.7
72.5
20.2
25
21.7
9.3
12.2
n.a.
11.5
0 10 20 30 40 50 60 70 80 90
Mexico (2009)
Viet Nam (2009)
Peru (2009)
colombia (2010)
Indonesia (2009)
Cote d'Ivoire (2008)
Philippines (2008)
persons employed in the informal sector
persons in informal employment outside the informal sector
Source: ILO, Statistical Update on employment in the informal economy, Department of Statistics, 2012
Figure 4: Size of informal employment
(% of non-agricultural employment)
1. Labour
Force Status 2. Time Use 3. Employment Status 4. Working? 5. Job Quality 6. Formality
In the labour
force
Full-time
worker
Wage employed
Employed
Wage
employment
Formal
informal
Self-employed
Vulnerable
employment
Contributing family
worker / unpaid
worker
Part-time
worker
Voluntary part-time
employed
Involuntary =
Underemployed
Job seeker Unemployed Broad
Unemploy-
ment NEET
Out of the
labour force
Inactivity or
housework
Discouraged
Inactive
In education Student Student
Figure 5: The Rosetta Stone of labour markets (AEO,2012)
Challenges related to the economic structure:
The provision of basic education/training is not ensured
- Still many out-of-school children in developing countries (fueling
already high adult illiteracy)
- Increased enrolment has not entailed sufficient skills acquisition
The informal sector remains prevalent
- Most labour force is engaged in low productivity and not very
diverse activities (agriculture, small scale trade or services)
- Self-employment is widespread and individuals rely on multiple
activities
- Consequently, a large share of vocational and professional training
is informal
I. Specific Challenges for skills strategies in emerging
and developing economies
The provision of basic education/training is not ensured
- Still many out-of-school children in developing countries (fueling
already high adult illiteracy)
- Increased enrolment has not entailed sufficient skills acquisition
The informal sector remains prevalent
- Most labour force is engaged in low productivity and not very
diverse activities (agriculture, small scale trade or services)
- Self-employment is widespread and individuals rely on multiple
activities
- Consequently, a large share of vocational and professional training
is informal
I. Specific Challenges for skills strategies in emerging
and developing economies
I. Specific Challenges for skills strategies in emerging
and developing economies
The potential of diaspora and the risk of brain drain
Lack of institutional capacity and strong financial
constraints
Demographic pressure (on the education system and the
labour market) and urbanisation
Not only a large share of qualified individuals emigrate,
graduates with scarce skills leave the country
more often.
18%
12% 11%
25%
19% 19% 19%
17%
10%
16%
27%
12%
17%
12%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
Figure 6 : Share of graduates abroad, by diploma/topic
Source : Enquête de suivi professionnel auprès des diplômes de l’enseignement supérieur et de l’enseignement
technique et de la formation professionnelle du Togo, génération 2008, République Togolaise (2013)
I. Specific Challenges for skills strategies in emerging
and developing economies
The potential of diaspora and the risk of brain drain
Lack of institutional capacity and strong financial
constraints
Demographic pressure (on the education system and the
labour market) and urbanisation
II. Implication for effective skills strategies
A. In terms of analytical framework
Specific attention should be given to:
The dynamics of skills provision:
– Provide the right skills at the right time
– Link the skills strategy to the overall development strategy of the country
The mobility of workers across sectors and the transferability of skills
The provision of skills to self-employed workers
Quality provision of technical and vocational training
The universal provision of basic skills and the potential of alternative
provision of skills (informal apprenticeships, community level,
MOOC,… )
II. Implication for effective skills strategies
B. In terms of methodology :
Necessity to pinpoint cost-effective policies
Include a financing strategy in the skills strategy
Elaborate a strategy to overcome the lack of data:
– Rely on secondary sources
– Collect original data
Engage in capacity building
Conclusion
DEV experience on skills in developing and emerging countries :
Multi Dimensional Country Review (Myanmar, Côte d’Ivoire, Peru)
Latin American Economic Outlook 2015 : Education, Skills and Innovation for
Development
Pilot Skills Strategy in Togo
Social Cohesion Policy Review of Vietnam
Potential avenue for future work :
Rural Development and Skills
Long term effect of technical and vocational education