Setting the Right Goals: Towards Rebuilding the Youth’s Trust in Authority

Eman AssemMA Economics, AUC

Employment By Sector (2013)

Source: CAPMAS and World Bank Databank (2013)

Goals

• Promote the private sector

• Train youth to be skilled for private sector jobs

Private Firms

• Large multinational corporations• Large national companies• Small to medium enterprises (SMEs)• Micro enterprises.

Problems facing Private Businesses

• Limited access to information• Lack of government support• Complex licensing processes• Bureaucratic processes lacking transparency

“Egyptian entrepreneurs spend close to 35% of their time solving problems related to government regulation.” (Sala-i-Martin, 2002)

Regulation of Local Government

• Internal management processes• External central government regulation:

performance indicators, audit and inspection• External public regulation

Idemyx Website

Training for jobsActive Labor Market Policies (ALMP) is categorized into two types:

• Policies that facilitate wage employment, through a better education and vocational training

• Policies that facilitate self- employment, through ease of doing a business and access to finance and credit and providing business support.

Characteristics of TVET

• Singapore’s Institute of technical education • Chiles, Jovenes Program • Brazil’s Serviço Nacional de Aprendizagem

Industrial (SENAI)• Mubarak-Kohl Initiative

(1) Centralisation of planning and quality control

• Brazil’s (SENAI), one of the most successful vocational systems in the developing world, is administered by the National Confederation of Industry.

• In Egypt, the Supreme Council for Human Resources Development (SCHRD) is being restructured since 2013, with steps to establish a National TVET Authority (NTA).

• However, the revival of the Council and the establishment of the Authority appear to have stopped to date.

(2) Decentralisation of training centers

• In the Chile, Jovenes program, The private sector provides training that is decentralized, and forms a link to the job market.

• The program operates through about 1,000 training providers, ranging from companies to non-government organizations.

(3) Financing

• Variation in funding can allow for more cost recovery and increasing relevance of courses.

• Different funding options other than direct budget allocation can include:– performance-based funding. – direct funding from the trainees (individuals or

firms)• Most of the sector’s financing is through

donors

(4) Demand-driven education and training

• In Singapore’s Institute of technical education (ITE), courses are designed by companies and government.

• Performance-based funding means that public funds could be open for competitive allocation among both public and private training providers.

(5) Certification and accreditation

• In Singapore’s ITE, joint certificates with companies such as Microsoft are given.

• Wataneya Society, is an example of an accredited vocational training program. It’s an NGO that works in training childcare providers, accreditied by Edexcel in 2012. And since 2014 it has been working with the ministry of social solidarity to set up the certification criteria to all childcare providers in Egypt.

(6) Targeting

• Of specific groups, to specific companies or industrial sectors.

• Chiles, Jovenes Program: Strong targeting of people with low educational attainment, low-income families, limited work experience.

(7) Flexibility in shifting towards a track in academic education

• Singapore’s ITE; Qualifications can open a track into academic education.

• There is a continued reluctance of many young people to forgo university for the perceived low status vocational or technical training.

Timeline of Employment by Sector

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 20150%

10%

20%

30%

40%

50%

60%

Public Employment 24%

Private Employment 28%

Informal Sector, 48%

Source: CAPMAS (2015)