THE recent wave of economic and technological change emanating from globalisation is demanding from workers more than basic skills. The World Bank’s surveys on investment climate show that over a fifth of the firms in developing countries consider inadequate skills and education of workers as a major obstacle to their operational efficiency.

In Pakistan too, supply of manpower equipped with state of the art technical know-how has not kept pace with the rising demand of such manpower. As labour is the main asset, a slight addition to its productivity can reduce poverty substantially. This requires a system of technical education which imparts technical know-how at affordable price. The development of human resources is necessary for fuelling economic development and creating opportunities for people to earn more money.

While presenting the budget 2004-05, the prime minister (then finance minister) had acknowledged a skill gap in the economy and a dire need to improve of quality of technical education and apprenticeship. This is yet to be implemented. Technical and vocational training enhances employability of workforce. National Technical Education and Vocational Training Authority (NTEVTA) has been established to develop infrastructure of technical education at district level. However, it has yet to make any impression on the skill market.

Employer-led skill development councils developed by the ministry of labour, manpower and overseas Pakistanis, have been established in all provinces to identify needs of geographical areas, prioritise them on market demand and to facilitate training of workers through training providers in public and private sectors. These councils are aimed at diversifying training needs of industrial and commercial sectors.

However, this initiative lacks the commitment and dedication of both —employers and the government as well. It is only doing number’s game by issuing proxy lists of trainees. Advanced countries’ experiences with formal apprenticeships and internships, which provide a “structured work experience”, provide important policy guideline for countries that are rapidly entering into a modern entrepreneurship. In countries like Pakistan, traditional apprenticeships in informal sector firms are very common. Various incentives can be used to improve quality and encourage innovation.

In order to succeed in today’s competitive international market, the younger generation needs to be equipped with advanced skills beyond literacy counts and employment statistics. The World Bank Development Report 2007 has emphasised following three areas to make the young generation turn into productive assets:

Opportunities: Broaden opportunities for developing human capital by expanding access to and improving the quality of education and health services; by facilitating the start to a working life; and by giving young people a voice to articulate the kind of assistance they want and a chance to participate in delivering it.

Capabilities: Develop young people’s capabilities to choose among these opportunities by recognising them as decision-making agents and by helping ensure that their decisions are well-informed, adequately resourced and judicious.

Second chances: Provide an effective system of second chances through targeted programmes that give young people the hope and the incentive to catch up from bad choices.

The government’s decision to develop its human skills, enhancing their employability, and about engaging them with the broader civic community will have long-lasting effects on not only the life of the individuals but have repercussions far beyond them and their families.

In the current situation, the development of the human capital is hampered by poverty, lack of opportunity, finance and the social inequality that results in more frustration among the youngsters.

To create job opportunities for the youth, a more broad-based economic growth is needed. The current growth momentum has given rise to many questions like when the fruits of higher economic growth will reach everyone. High economic growth averaging seven per cent for the last four years has widened the gap between the ‘haves’ and the ‘have not’s’. The government has admitted that income inequality has increased during the last five years.

The World Bank Report has suggested for the policymakers of developing countries like Pakistan that they must:

* broaden the access of previously excluded groups to opportunities for growth and better living standards through active citizenship; encourage young people to actively contribute to development through collective action, public accountability and caring for the community and the environment and; channel young people’s creativity and energy productively.

It is the responsibility of the government to provide a judicious enabling environment for skills development, improve the quality of education, enhance access to basic services. Positive contribution from private sector and leaders of civil society is also needed.