Technical Education :Skill Enhancement

1

• Technical Education Skill Enhancement
• a FNCCI initiative
• Kush Kumar Joshi
• Second Vice President
• FNCCI
• Second NRN Global Conference
• 7-9 October 2005
• Kathmandu, NEPAL
• 08,October 2005

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Introduction

• Nepal is an agricultural country having poor
  economic base and diverse topographical situation
• The agricultural sector, where more than 80
  percent of the labour force is involved, is
  contributing almost 40 percent to the national
  GDP
• Non-Nepali workers are displacing the Nepali
  workers both in formal as well as informal sector
• Large numbers of Nepalese are suffering from
  unemployment and underemployment.
• The income and labour situation is becoming
  alarming

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Facts figures

• GDP Contribution
• ? Agriculture, Fisheries Forestry
  38.81
• ? Manufacturing 7.71
• Underemployment as the percentage of labour force
  is 4.1 - 4.8 in urban and 4. 0 in rural areas

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Formal and informal Employment 0f the person 15
(by Sector)
Sector Agriculture Non-agriculture formal Non-agriculture informal
Total 7,203,000 (76.12 ) 603,000 (6.37 ) 1,657,000 (17.51 )
Male 3,176,000 (67.05 ) 509,000 (10.74 ) 1,052,000 (22.21 )
Female 4,027,000 (85.20 ) 94,000 (2.00 ) 605,000 (12.80 )
Source NLFS 1998/99
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Trends in the Labour market

• Lack of overall planning in labour market
• Most basic data on employment and the labour
  force are either lacking or unreliable
• Lack of statistics on labour market information
• The productivity of labour is very low
• Assessment of labour market condition in Nepal
  depends on analytical judgment
• A recent study showed that the unemployment rate
  among persons with a School Leaving Certificate
  (SLC) or higher education to be 39 for the age
  groups 25-29 years and 20 for the age group 30
  years and older        

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Labour Market Industrial Manpower Training
System

• The labour situation in Nepal is characterized by
  rapidly growing labour forces (more than 3 per
  annum)
• Insufficient growth in employment generation,
  particularly in non-agricultural sectors
•   Public sector employment is also disappointing
  due to administration reform programmes
• Women population into the labour market is
  increasing due to the change of economic base
  from agriculture to industry.

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Labour Market Industrial Manpower Training
System
Contd.

• Nepalese Enterprises are even now experiencing
  problems in the labour market concerning
  competitiveness, motivation, creativity and
  labour flexibility
• Enterprises face more challenges than ever
• The productivity, competitiveness, motivation and
  creativity of workforce are deteriorating because
  of the lack of appropriate education and
  training.

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Technical Education and Vocational Training

• To overcome the shortages of unskilled and
  semiskilled manpower, comprehensive technical and
  vocational education has been introduced in the
  country.
• People benefit from the provision of special
  training programmes aimed at updating skills and
  bringing them into closer conformity with local
  labour market needs.

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Present Scenario

• Vocational and technical training is poorly
  developed
• Lack of coordination and linkage between users
  and producers (industries and training
  institutions)
• Lack of manpower planning and mechanisms for the
  systematic and regular assessment of the
  requirements of modern industries and business .
• Absence of such mechanisms makes it difficult to
  devise the training system to respond to the
  skill shortages faced by the industrial sector.
• The areas of vocational education and training,
  personal development and foreign employment until
  now have operated in isolation. This is due to
  lack of overall planning, labour market
  information and coordination.

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Idea of Trade School

• Considering the present scenario of the nation,
  FNCCI came up with an idea or concept of
  establishing the "Trade Schools" in the year
  2003.
• to develop and conduct quality and demand driven
  (need based) training programs/packages
• expected high placement rate of trainees as a new
  employee and enhance capacity of working
  (employed) labor force due to our CCI and local
  Businessmen (Private Sector) validated training
  programs

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Idea of Trade School Contd..

• Covers the basic and advanced theory and
  laboratory practice required to provide the
  successful trainees with the necessary skills for
  entry-level positions as well as on the job
  training for semi or unskilled youths including
  male and female.
• Provide technical and employment oriented
  training

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Goal and Achievement

• The goal of establishing the Trade School (Ilam
  Prasikchan Kendra) is already achieved in Five
  Development Regions with the initiative of FNCCI
• Five Trade Schools established in
  Damak,Nuwakot,Taulihawa,Surkhet and Kanchanpur to
  address the problem of unemployment through
  conducting employment oriented training to the
  unemployed youths of the districts.

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Federation of Nepalese Chambers of Commerce
Industry TRADE SCHOOLS
Kanchanpur
Nuwakot
Damak
Surkhet
Taulihawa
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Goal and Achievement (contd)

• employment oriented skill training on different
  trades is imparted to 1000 unemployed young men
  and women so far.
• productivity of business, industry and
  entrepreneurs through skill training is enhanced.

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Objectives of the Trade School

• To develop and implement the concept of
  public-private partnership
• Conduct training for unskilled local people to
  enhance their skill from unskilled to
  semi-skilled
• Open job opportunities in national and
  international level (including India)
• Necessary agreements and mechanism have been made
  between Government, CTEVT, and FNCCI. Working
  modalities for each trade school have also been
  designed.

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Implementation and Execution Modality
Steering Committee
Implementation Committee
Project Implementation Unit at FNCCI
Trade School
Trade School Management Committee
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Benefits

• Employment Generation Basic and semi-medium
  level manpower are generating in different
  regions, hence opening job opportunities for the
  individuals
• Income Job-opportunities with the skill
  upgrading generate more income for themselves
  and their families.
• Enhancement of Productivity The trade school
  will enhance the country's economy boosting up
  its GDP.
• Skill Development Non-skilled student can hence
  possess semi-skill and can further improve their
  skills.
• Enhancement of DCCI's Capability District
  Chamber of Commerce and Industry's (DCCI's)
  capability will improve by holding such
  activities and can link the job opportunity for
  the skilled man power.

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Finance and sustainability of Trade School
(provision)

• Contribution by HMG/N as a seed grant (as a
  revolving fund)
• Investment by FNCCI and DCCI
• Users fee/Training fee
• Contribution of Donors and NGOs/INGOs/Individuals
  
• Coordination with donor organization for seeking
  fund and assistance by synergy effect means 225

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Main Thrust of the Trade School

• Quality
• Flexibility and Innovative training packages
• Demand driven training (Need based)
• Targets for Employment and Self-Employment
• Provide approximately Skilled workforce
• Sustainability Approach

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Partnership with NRN Community and Linkage with
International TEVT Institutions.

• In view of these main thrust there is a need to
  develop partnership scheme with International
  TEVT Institutions. Following suggestions can be
  made to develop partnership scheme in the areas
  of skill training and skill bench marking.
• Community like NRN with their linkages and
  expertise can provide technical assistance to
  update the latest trend of skill bench marking as
  well as skill development in the pace of
  technology changing context.

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Contd

• It is necessary to make demand assessments of the
  different types of technical/skilled manpower
  required by enterprises, their current
  availability and projections of future. This
  should help Trade School to design training
  module and start course in those areas that are
  highly demanded by industries.

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Suggestions to Develop Partnership
Scheme Contd.

• The government and training institutions like
  CTEVT has become the main producers of manpower.
  In view of the rapid growth of private sector
  investment, strong partnership between private
  sector, NRN, government and CTEVT is needed.
• A comprehensive system for providing labour
  market information system is lacking, especially
  in vocational and technical sector. Partnership
  scheme in this area should move ahead.
• Coordination with vocational education and
  training, personal development and foreign
  employment

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Thankyou