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Skills For Trade and Economic Diversification: Updated Version of 2017
Skills For Trade and Economic Diversification: Updated Version of 2017
Trade and
Economic
Diversification
www.ilo.org/STED
Why Technical Assistance on Skills for Trade ?
SKILLS CONTRIBUTE TO HIGHER AND MORE DIVERSIFIED EXPORTS WITH MORE
JOB CREATION. PROVIDING THE RIGHT SKILLS AT THE RIGHT TIME IS IMPORTANT
AND REQUIRES POLICY COORDINATION.
A Sectoral Approach
STED is designed for sectors that have potential to The organization of technical work aims to make best thus lays a foundation for social dialogue on skills such as a National Skills Council or a system of
make substantial contributions to export develop- use of expertise available locally, and to develop the and better policy coherence based on a strategic Sector Skills Councils.
ment and diversification, or need to improve com- capacity of partner institutions and experts in the vision for a sector’s future.
petitiveness in the face of foreign competition. They country to do similar work themselves in future. Providing support and backstopping for imple-
can be sectors that are still in their infancy, or estab- mentation by country partners, by other ILO proj-
lished sectors with potential to diversify, for example
Implementation Phase ects or by other development partners.
through better products or new markets.
Local Partners and Ownership and Follow-up
A key factor for the success of STED is to involve The STED analytic process contributes to improve- STED can also be embedded in broader techni-
local partners in both analysis and implementation, ments on the ground by raising awareness and cal assistance projects in the areas of skills,
Methods in Analytic Phase and ensure that stakeholders have ownership of the stimulating dialogue on skills development among trade, sectoral and private sector development,
The analytic phase of STED typically involves a analysis and a desire to implement the findings. stakeholders within a sector. Ideally, a STED appli- and employment promotion. In this case, the
combination of technical work, dialogue with and cation will include an implementation phase with fol- analytical results from STED inform follow-up
among national and sector partners, and building The ILO’s strong relationship with labour ministries, low up activities to support implementation. work through established ILO methodologies in
institutional capacity. Technical work is undertaken unions, and employers’ organizations greatly facili- areas such as Technical Vocational Education and
at country level, backstopped by ILO field specialists tates access to well-positioned partners for STED. These include one or several of the following: Training (TVET) Reform, Dialogue on Trade and
and by trade and skills experts at ILO Headquar- STED initiatives often also partner with trade Employment, Skills Anticipation, Labour Market
ters. It typically includes desk research, a survey of ministries and education ministries, and with line If STED is applied as a stand-alone project, follow- Information Systems and Enterprise Development.
employers, an examination of skills supply for the ministries responsible for target sectors such as up activities can include direct implementation
sector, and interview consultations with experts and those responsible for industry, tourism or agriculture. under the project in collaboration with partners, Finally, the STED methodology can be the basis
key partners. for example in areas such as development and for capacity building and support to existing
4 Partners are systematically involved in the process piloting of competency standards and new curri- institutions for skills anticipation and education 5
Dialogue with and among partners takes place from the beginning, including in the selection of sec- cula or other targeted support for education and planning. In this case, the focus is on developing
through a steering committee organized at national tors. In some cases, tripartite institutions for social training providers. in relevant local institutions the capacity to apply
or sector level, or through stakeholder workshops, dialogue on skills already exist as natural counter- STED independently on an ongoing basis.
or sometimes through a combination of both. parts. In other cases, STED brings the relevant stake- Building and maintaining an institution for continu-
holders in a sector together for the first time, and ous skills dialogue and support to implementation,
Sector Position Business Capability What Type How many Workers Skill Supply Proposed
and Outlook Implications of Skills? by Skill Type? Gap Responses
Internal What business capabilities What skills are needed by How is labour demand likely What are the critical gaps How can existing and future
QUESTIONS
• Sector size are required to support the firms to acquire the priority to develop for workers of between current and future critical skill gaps be closed?
• Growth trend preferred growth scenario capabilities from STAGE 2 ? different skill types (both labour demand and supply
• Structure (firms, value from STAGE 1 ? new and existing)? by skill type? How can existing training/
chains) What are the existing skills education institutions be
• Employment Which capabilities already gaps that should also be To what extent does the improved to match demand?
• Sources of competitive exist, which need to be bridged? existing education and train- What other sources of skill
advantage / disadvantage improved or newly created? ing system produce workers supply can be used?
• Investment Demand for which skills with the required skills?
• Entrepreneurship is likely to newly emerge / How can skill demand be
• Sectoral strategy expand / contract? What other sources of skills better anticipated in the
supply (learning by doing, future?
migration, etc.) are available?
External How can enterprises con-
• Enabling environment tribute to enhanced skills in
• World market growth & their workforce?
structure
8 • Position in world market 9
• Drivers of change
• Competitors
• Prices
Growth scenarios such as: Gaps and priorities in Qualitative information on Quantitative and qualita- Identification of current Recommendations at
RESULTS
• Business as usual business capability types of skills demanded tive outlook on labour and future skill gaps policy, institutional, and
• More of the same development demand by skill type enterprise level to close
• Upgrade the sector critical skill gaps
Food exporting firms Accessing higher end Production line workers will Accessing large high end There is a shortage of Include training on safe food
SIMPLIFIED EXAMPLE
currently serve mainly markets requires regulatory need better skills in safe markets will raise demand production workers trained handling in technical educa-
neighbouring low income approval and compliance food handling. for production workers, and in safe food handling skills. tion curricula.
markets. They see an with quality standards. a need for specialists in a
opportunity to export higher Laboratory skills are range of areas relating to Too few specialists on Provide training in safe
quality products to more required for quality control. quality control, assurance compliance with EU and US food handling to production
developed markets in the and certification. food safety regulations and workers.
future. documentation are available.
Establish partnership with
a leading university on food
science education.
STED Results
THE FIRST STED INITIATIVES AIMING PROGRESS TO ENABLING IMPLEMENTATION
OF STED RECOMMENDATIONS COMMENCED IN 2013.
STED work so far Aid for Trade Initiative for the Arab States
(AfTIAS) project
Macedonia
Year: 2011
• Tourism
Kyrgyzstan
• Food Processing
Year: 2012
• Garments
Tunisia
• Metallurgy
• Food Processing Viet Nam
• Tourism
www.ilo.org/STED
Jordan
• Pharmaceuticals
• Food Processing
Cambodia
• Food Processing
Bangladesh • Light Manufacturing)
Year: 2011
• Agro Processing
• Pharmaceuticals Myanmar
• Tourism
• Vegetable & fruits
Egypt
Malawi
• Furniture
• Oilseeds • Food Processing At early stages of STED work in Benin, Ghana,
• Horticulture Guatemala, Morocco and the Philippines