Syed Nasir Ershad
Skills are crucial for poverty reduction, economic resurgence and sustainable development. As a consequence, policy attention to technical and vocational education and training (TVET) is increasing worldwide. TVET comprises formal, non-formal and informal learning for the world of work. Young people, women and men learn knowledge and skills from basic to advanced levels across a wide range of institutional and work settings and in diverse socioeconomic contexts.
Skills development in the form of vocational education and training was categorically introduced by the developing nations during the 60’s, right through 80s. This policy orientation was well supported since it favored the notion of increasing GDP by enhancing per capita income. Though this one-dimensional approach gradually ran out of mist, and the policy makers realized that poverty reduction efforts go much beyond vocational education and training. But, Skills development has made a return, once again in an integrated package. Its scope has now become much wider. Now skill development covers all forms of training and education occurring in formal, non-formal and on-the-job setting.
Economists have identified four distinct ways the benefits of demographic dividend can be achieved and one of this is the increased labor supply; thus skills development are needed for a certain age group for proper utilization of this benefit, with a particular focus on employability and linkage to the market. A large number of young people of Bangladesh are working in the informal sector. The informal service sector is particularly important because it requires almost no capital to enter this sector and so it serves as a final resort for all those who fail to find work anywhere else. The informal sector should not be undervalued in a developing country since it provides vital employment opportunities and is a source of dynamism in the economy.
Bangladesh has acquired vast experiences in the domain of skills development. In addition, the three key sectors (public, private and NGOs) have their own characteristics, and mode of operations thereby added to the complexity. Yet they have significant potentials in contributing to poverty reduction process. The skills should be market-driven. The NGO sector seems to be occupied with its apparent success in micro-credit, and its awareness programs covering social, environmental, health and education related issues. The NGOs also have income generating activities, though the scale and intensity of such activities are apparently concentrated with a few numbers of large NGOs. Nonetheless, NGOs are the only sector, which provides skills training to a large number of poor including rural women, can claim of achieving some impact. Although the skills development of women requires looking beyond pure income enhancement; it is often observed that in the name of economic activities, women are burdened with additional activities. This leaves them outside the decision-making process, which is the objective of empowerment. In this regard, it has been argued that women’s empowerment will come with their comprehensive control over market-related activities, begins with market assessment and ends with closing the deal after bargaining.
Moreover, the strategic advantages of NGOs, in reaching the poor apparently remains underutilized in the delivery of skills development leading to market-oriented, sustainable, and gainful employment, but could be enhanced if properly synced with the private sector. The private sector, even though, appears to be better aligned with the demands of market, yet it does not have the required institutional and technical efficiency, in order to make an impressionable change in poverty reduction. A sizeable portion of private skills development organizations provides training to workers, with employment opportunities in the Middle East and East Asia.
The successful formulation of skills development policies and employment is dependent upon the quality of participation with targeting the poor right from the beginning of interventions, to avoid its sour end. Only then, it would be possible to ensure that the contents of learning are relevant to the world of work of the target-poor, thereby ensuring sustainable outcomes leading to poverty reduction.