Wednesday, 2 April 2014 00:00
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The Asian Development Bank (ADB) has approved a US$ 100 million loan to the Sri Lankan Government to provide Vocational and Technical Training (VTT) to foster employment opportunities for youth and provide trained employees to the private sector. Such moves are indicative that the once conveyor-belted road to university is slowly changing.
Sri Lankan parents in general have dreams of their children becoming doctors, engineers, accountants or lawyers. Other options are seen as less prestigious or stable and most children are actively discouraged from taking a different route. However, changing economic demands as well as opportunities for technical workers abroad have served to change this state of mind. Such a change is also helped by the high rate of unemployment among youth, which at 17.3% is more than double the national rate.
The skills mismatch has become even more evident during the recent period of economic growth as both education and VTT systems have not been able to adapt to the rapid labour market shifts. Private sector employers often cite lack of skilled workers matching their needs.
Under the new program, the Government will introduce a targeted stipend scheme for disadvantaged groups including the poor, women, school drop-outs to increase their participation in skills training in skill shortage areas.
Though a large number of women are enrolled for training in traditionally female occupations, women’s participation is low at around 26% in technology-related courses that would lead to higher-paying jobs. The program therefore aims to increase women’s participation in VTT and improve their rates of employment, especially in the four priority sectors of construction, tourism, information technology, and manufacturing.
The loan marks the second results-based lending (RBL) program approved by ADB, which links loan payments to the achievement of goals. As a prerequisite of RBL, the Government adopted a sector results framework and a medium term expenditure framework with which relevant development partner support can be aligned. RBL will help the Government prioritise actions that are contributing most to the goal of youth employability.
The importance of skilled technical jobs, from machinists to construction engineers, is they’re generally interesting in themselves, they’re less likely to be outsourced or “de-skilled” than even some white-collar work, and they are better paid than retail or low-end service work. Everyone recognises this when economies from Europe, or closer to home, Singapore are trotted out as examples of countries that have evolved their VTT to match new industries and services.
The issue today is not so much about the value and importance of VTT but how to ensure its relevance, responsiveness and value in an increasingly global economy. While Sri Lanka has dabbled in VTT in the past, this has not been functionally or constructively linked to the greater economy. Not only is VTT essential to promote the private sector, it is also imperative if Sri Lanka is going to pursue its five-hub strategy. Industries such as aviation, shipping, infrastructure and tourism that are all earmarked by the Government as growth sectors need the support of competent VTT.
The real tests of success of VTT are the employability of graduates, personal development, opportunities for further education and career development, public acceptance and image. Ultimately, the effectiveness and responsiveness of a VTT system should be measured by its impact on the social and economic development of the nation.
