CARIBBEAN GROWTH FORUM St. Kitts and Nevis Chapter FIRST ACCOUNTABILITY WORKSHOP Marriott Hotel June 11, 2014

CARIBBEAN GROWTH FORUMSt. Kitts and Nevis Chapter

FIRST ACCOUNTABILITY WORKSHOP

Marriott Hotel June 11, 2014

The Caribbean: The Need to Adapt to Restore Growth and

CompetitivenessWayne Mitchell

International Monetary Fund

Caribbean Growth ForumPhase 2 – Accountability Workshop

St. Kitts and Nevis Chapter


3

The recovery is picking up pace, but global risks remain…

Sources: World Economic Outlook (April 2014) and ECCB

2011 2012 2013 2014 2015

Estimate Projections

World 3.9 3.2 3.0 3.6 3.9

USA 1.8 2.8 1.9 2.8 3.0

Canada 2.5 1.7 2.0 2.3 2.4

UK 1.1 0.3 1.8 2.9 2.5

Euro Area 1.6 -0.7 -0.5 1.2 1.5

Latin America and the Caribbean 4.6 3.1 2.7 2.5 3.0

Caribbean

Tourism-dependent 0.3 0.1 0.7 1.4 1.9

ECCU -0.1 0.2 0.7 1.9 2.4

Commodity Exporters 2.6 3.7 3.2 3.2 3.2

St. Kitts and Nevis will recover lost ground by 2015 but not the rest of the region…

Source: ECCB and IMF Staff estimates

2008 2009 2010 2011 2012 2013 2014 2015 86

88

90

92

94

96

98

100

102

104

ECCU St.Kitts and Nevis flat

5

….. but that’s no cause for complacency. Growth lags that of peer countries.

Source: IMF staff

6

7

• Macroeconomic stabilization is necessary• Allocation - are we doing the right things?

– promote competitiveness and private sector development

• Efficiency – are we doing things right?– Success depends on technical efficiency,

communication, transparency, and discipline.• The CGF is an important initiative that can

facilitate the above

Conclusion

Thanks




Caribbean Growth Forum (CGF): Regional initiative supported by Compete Caribbean, IDB,

World Bank, CDB, DFID and DFATD

Aimed at: Identifying priority actions that contribute to private

sector-led growth and job creation in the region Focusing on their implementation over the medium term Providing accountability in monitoring progress of

implementation

Launched in total of 12 Caribbean countries

OVERVIEW OF CGF PROJECT

CGF Regional Launch held in Jamaica 18-19 June, 2012

CGF St. Kitts and Nevis Chapter Launch

February 26, 2013

CGF St. Kitts and Nevis Draft Action Plans prepared

Feb-May, 2013

CGF Regional Workshop, Nassau, The Bahamas

June 24-25, 2013

First CGF St. Kitts and Nevis Chapter Accountability Workshop

June 11, 2014

HIGHLIGHTS OF CGF PROCESS

Three Thematic Areas: Logistics and Connectivity Investment Climate Skills and Productivity

Action Plans prepared through meetings of stakeholders from the public sector, private sector and civil society

The Ministry of Finance serves as National Focal Point/Secretariat for CGF SKN Chapter

Progress reporting by Ministries/Agencies involved in implementation

CGF ACTION PLANS

Implementation supported by National Budget and CGF Grants

Contributes to the Monitor & Evaluation framework and culture of accountability for SKN.

BENEFITS OF CGF PROCESS




STATUS OF IMPLEMENTATION OF PRIORITY ACTIONSTaking Stock of a 12 month period

Sept. 2013 – August 2014

TRAFFIC LIGHT FRAMEWORK

Implementation of Recommendations is In Progress

Implementation of Recommendations is Delayed

Implementation of Recommendations is Completed

No milestones to be reported for this period

RESUMEN MESA 1

Logistics and ConnectivityThematic Area

Presented by: Theodore Brown and Launlia Archibald

OBJECTIVE 1 : IMPROVE OPERATIONAL EFFICIENCY OF AIR AND SEA PORTS

May2014

1.1 Determine the most appropriate structure for the Customs and Excise Department taking into consideration the functionalities offered by the new system and the potential for streamlining the operations to make Customs and Excise facilitators of trade and not simply collectors of Revenue and source of employment.

Thematic Area 1 – Logistics and Connectivity


May2014

1.2 Strengthen the linkages between the Port Authority and Customs to reduce duplication and save time and reduce costs in the importation process



May2014

1.3 Standardize the clearance of non-commercial items from customs across all points of entry into the Federation

1.4 Operationalize the Trade Facilitation Committee in order to monitor and discuss new procedures, policies concerns, and developments to improve competitiveness


OBJECTIVE 2 : HARNESS THE POWERS OF ICT THROUGH E-GOVERNMENT

May2014

2.1 Identify Government Services that can be delivered through the use of ICT. Develop a migration path and schedule for moving the identified services online. Facilitating the movement of goods

A. Upgrade of the Postal Services

B. EDU NET Programme

C. Closed Circuit Television (CCTV) Project

D. Inland Revenue E-Payments


OBJECTIVE 2 : HARNESS THE POWERS OF ICT THROUGH E-GOVERNMENT

May2014

2.2 Design fiscal incentives for the adoption and use of ICT in the Private sector and its interaction with the Federal Government.


OBJECTIVE 3: FOSTER THE DEVELOPMENT OF INTRA-REGIONAL TRADE

May2014

3.1 Improving access to trade/logistics information available for islands of the region

3.2 Expansion of the Port to serve as a sub regional hub

3.3 Incentivize and facilitate the expansion of the services offered by liners in St Vincent, Grenada, St Lucia and Dominica to include the rest of the island


SUMMARYThematic Area 1 – Logistics and Connectivity

RESUMEN MESA 11512

RESUMEN MESA 1

Investment ClimateThematic Area

Presented by: Dorietta Fraites

OBJECTIVE 1 : ICT REFORM May2014

1.1 Conduct an ICT Audit Review to take stock of personnel (in public, civil and private sectors), infrastructure/incentives/taxes and education system (content, method and delivery)

Thematic Area 2 – Investment Climate

OBJECTIVE 1 : ICT REFORM May2014

1.2 Identify relevant and useful information to 1.1 Adopt the recommendations of the ICT4EDC to establish an ICT Foundation that would consist of private, public and civil society components with at least one third private sector resources suitably qualified


OBJECTIVE 2 : FACILITATE AN IMPROVEMENT IN THE PROPERTY REGISTRATION PROCESS

May2014

2.1 Identify the inefficiencies in the Property Registration System and facilitate its improvement


OBJECTIVE 3 : CREATION OF AN OFFSHORE EDUCATION POLICY

May2014

3.1 Fully operationalizing the Accreditation Board

3.2 Creating the environment to advance the international education (offshore) sector


OBJECTIVE 3 : CREATION OF AN OFFSHORE EDUCATION POLICY

May2014

3.3 Creating incentives for sector expansion, while making it nationally beneficial by developing nationals in accordance with national skills and training gaps and needs

3.4 Canvasing reputable international schools to open branches or segments of their operations in the Federation


OBJECTIVE 4 : ESTABLISHMENT OF AN ENERGY COMMISSION

May2014

4.1 Creation of an Energy Commission by implementing an appropriate organizational / management structure and systems.


SUMMARY Thematic Area 2 – Investment Climate

RESUMEN MESA 13311

RESUMEN MESA 1

Skills and ProductivityThematic Area

Presented by: Spencer Amory

OBJECTIVE 1 : DETERMINE AND ADDRESS THE LABOUR SKILLS GAP

May2014

1.1 Determine Skills sets and capacity of Labour & Statistics Departments for conducting manpower Survey

1.2 Identify Business Sector Needs - Needs will be identified under the Compete Caribbean Project " Consultancy to support Private Sector Development in SKB-NEV - Gap Analysis of the World Bank Doing Business Report"

1.3 Identify Workforce Skills Set

Thematic Area 3 – Skills and Productivity

OBJECTIVE 2 : CURRICULUM REFORM, TO BALANCE SOFT AND HARD SKILLS

May2014

2.1 Identifying the gaps – Soft and Hard Skills.

2.2 Enhancing the implementation and promotion of the White Paper on Education Development Policy 2009 – 2019

2.3 Rebranding TVET


OBJECTIVE 3 : ENHANCE THE QUALITY AND SERVICE PROVISION

May2014

3.1 Conduct an assessment to determine the level of Service Excellence in the Federation.

3.2 Develop a National Culture of Service Excellence.

3.3 Establish a framework for sustainability of Service Excellence within organizations


OBJECTIVE 4 : INSTITUTIONAL FRAMEWORK: IMPLEMENT TRI-PARTITE FRAMEWORK AND A NATIONAL PRODUCTIVITY COUNCIL IN ADDITION TO THE DEVELOPMENT OF A HUMAN RESOURCE MANAGEMENT STRATEGY

May2014

4.1 Review and/or Assess the Barbados Tri-Partite Arrangement for Possible Emulation

4.2 Institutionalize a Tri-Partite Committee

4.3 Create a National Productivity Council


SUMMARY Thematic Area 3 – Skills and Productivity

RESUMEN MESA 14323

Summary of First Accountability Workshop CGF Saint Kitts and Nevis Chapter

June 11, 2014

Status on Implementations Recommendations

Delayed 8In Progress 11

On Track 4Nothing to Report 6

Delayed28%

In Progress38%

Completed14%

Nothing to Report

21%




CARIBBEAN GROWTH FORUMSAINT KITTS & NEVIS CHAPTER

LAUNCH OF THE PRIVATE SECTOR ORGANIZATIONS’ CIVIL OBSERVATORY

BASSETERRE

JUNE 11, 2014

40

WHAT IS THE OBSERVATORY’S ROLE? To provide, under the co-ordination of the St. Kitts & Nevis

Antenna of the OECS Business Council, an independent monitoring of the CGF Action Plan

To engage Government constructively and propose corrective measures in the reforms implementation process

To report every six months, in conjunction with the Government CGF Accountability Workshops, on the progress of reforms and their related impact

41

HOW WILL THIS BE DONE? Inclusion of CGF monitoring in the OECS Business Council’s Work

Programme

Participation in the technical training on reforms delivery and accountability, together with the OECS Government’s CGF Focal Points and Private Sector Organisations (PSOs) in SKN on June 12-13, 2014

Appointment of three PSOs to co-ordinate the monitoring of the three pillars of the CGF Action Plan, which are:

Logistics and Connectivity Investment Climate Skills and Productivity

Collection of evidence through the use of social accountability techniques to monitor reforms

Provision of continuous feedback to Government on reforms’ implementation

42

WHAT ARE SOME EARLY MILESTONES?

Launch of the PSOs CGF Civil Observatory by June 26, 2014 with endorsement of a MOU among interested parties

Publish by June 15th a Work Program for the following 6 months, indicating which reforms will be monitored and which techniques will be used

Organise regular meetings with specific CGF point persons responsible for the implementation of the Action Plan

Present a First Report on implementation in November 2014 (in conjunction with the Government’s Report)

43

WHO

OECS Business Council SKN Antenna

(NAME OF PSO)

Pillar: Logistics and Connectivity

Recommendation X.X

Recommendation X.X

(NAME OF PSO)

Pillar: Investment Climate

Recommendation X.X

…

(NAME OF PSO)

Pillar: Skills and Productivity

…

…

44

WHY IS THIS PROJECT NECESSARY? The PSOs Civil Observatory views this exercise as an

effective means of engaging the Government of St Kitts & Nevis in constructive dialogue

Strengthen the PSOs voice and facilitate their inclusion in decision-making

Contribute to fostering a culture of accountability, dialogue and inclusiveness in the development of public policy

45

Summary of First Accountability Workshop CGF Saint Kitts and Nevis Chapter

June 11, 2014

Status on Implementations Recommendations

Delayed 8In Progress 11

On Track 4Nothing to Report 6

Delayed28%

In Progress38%

Completed14%

Nothing to Report

21%




Youth unemployment in the Caribbean

Preliminary Findings and Policy Considerations

Social Protection and Labor The World Bank

Mónica Parra-Torrado

Saint KittsJune 11, 2014

49

Agenda

I. Unemployment in the CaribbeanA. External shocksB. Unemployment dynamicsC. Gender gap

II. Youth is at higher risk of unemploymentA. Youth unemployment B. Key contributing factorsC. Risks and costs of youth unemployment

III. Policy recommendationsA. Collection of data and information systemsB. Active Labor Market Policies

50

Agenda




51

Unemployment in the Caribbean

Recent external shocks have left most Caribbean countries with high unemployment rates

2008 global financial crisis Fall in commodity prices - softening of the Chinese demand for

raw materials. Natural disasters - Ivan (2004), Dean (2007), Omar (2008), Tomas

(2010), Tropical Storm Nicole (2010), and Haiti’s earthquake in 2009

→ Negative to zero average growth in 2009 and 2010.

52

Unemployment in the Caribbean Real GDP annual growth in the Caribbean, 2000-2012, percentage

Country Name 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Anguilla 3.4 -4.0 5.4 14.0 13.1 20.3 13.2 -1.3 -18.3 -3.7 4.0

Antigua and Barbuda 5.1 -3.1 2.9 6.6 4.9 6.1 13.5 9.6 0.0 -12.3 -7.7 -3.0 2.8

The Bahamas 4.1 2.6 2.7 -1.3 0.9 3.4 2.5 1.4 -2.3 -4.2 1.0 1.7 1.8

Barbados 2.3 -2.6 0.7 2.0 1.4 4.0 5.7 1.7 0.3 -4.1 0.3 0.8 0.0

Belize 13.0 5.0 5.1 9.3 4.6 3.0 4.7 1.2 3.8 0.3 3.9 2.3 5.3

British Virgin Islands 4.7 -3.3 -12.6 3.8 14.3 1.4 0.7 1.5 4.3 4.5 2.5

Dominica -5.6 -0.1 -2.1 7.4 3.0 -0.8 9.5 0.4 8.0 5.9 1.0 -0.3 -1.7

Dominican Republic 5.7 1.8 5.8 -0.3 1.3 9.3 10.7 8.5 5.3 3.5 7.8 4.5 3.9

Grenada 2.5 -2.1 3.6 9.6 -1.0 13.5 -3.9 5.9 1.0 -6.6 0.0 1.0 0.6

Guyana -1.4 2.2 1.1 -1.0 3.3 -2.0 5.1 -3.6 2.0 3.3 4.4 5.4 4.8

Haiti 0.9 -1.0 -0.3 0.4 -3.5 1.8 2.3 3.3 0.8 2.9 -5.4 5.6 2.8

Jamaica 0.9 1.3 1.0 3.7 1.3 0.9 2.9 1.4 -0.7 -4.4 -1.5 1.7 -0.5

Montserrat 2.6 0.0 2.9 2.6 3.2 1.1 4.5 3.3 0.4 -3.8 1.8

St. Kitts and Nevis 0.7 5.2 1.9 -1.4 4.4 9.9 4.7 2.8 4.7 -6.9 -2.4 2.1 6.9

St. Lucia 0.7 -4.8 0.1 4.4 8.4 -1.9 9.3 1.5 5.3 0.1 0.4 1.3 0.5

St. Vincent and the Grenadines -0.6 1.6 6.3 7.6 4.2 2.5 7.7 3.4 1.4 -2.2 -2.8 0.1 2.3

Suriname -0.1 4.6 4.3 6.0 9.3 4.6 3.8 5.1 4.1 3.0 4.2 5.3 3.9

Trinidad and Tobago 6.1 4.1 8.0 14.4 7.9 5.8 13.7 4.8 3.4 -4.4 0.2 -1.6 1.5

Average 2.29 1.42 1.87 3.51 3.93 5.03 6.4 3.66 2.27 -2.2 0.0 1.95 2.33

53


Rapid rising unemployment: The Bahamas, Barbados, St. Lucia and Belize.

Slower pace of rising unemployment: Jamaica, Grenada, Antigua and Barbuda.

Relatively stable unemployment: Dominican Republic at around 14% since 2008 and Guyana at around 21% since 2007.

In contrast, Trinidad and Tobago experienced a decreasing unemployment rate since 2000. But stable after 2008. The lowest unemployment rate in the region

54

Unemployment dynamics 2000-2012, OECS countries.

Unemployment in the Caribbean2

00

0

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

0

10

20

30

8.4 10.0

Chart Title

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

0

10

20

30

11.013.9

Dominica

0

10

20

30

10.2

24.929.0

Grenada

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

0

10

20

30

13.0 12.0 11.0

Montserrat

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

05

101520253035

16.514.69999980926

51

22.20000076293

95

14

18.1 20.6

St. Lucia

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

05

101520253035

21.1 18.8

St. Vincent & The Grenadines

0

10

20

30

5.1 5.1

St. Kitts and Nevis

55

Unemployment dynamics 2000-2012, non-OECS countries.


00

0

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

0

10

20

30

6.910.8

7.614.2 13.7

Bahamas

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

0

10

20

30

9.3 11.07.4

11.6

Barbados

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

0

10

20

30

9.1 11.08.2

13.0

Belize

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

0

10

20

30

13.918.4

14.1 14.7

Dominican Republic

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

0

10

20

3028.1

24.4 28.5

20.2

21.0

Guyana

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

0

10

20

30

15.59.4

12.7

Jamaica

05

101520253035

12.1

4.6 4.8

Trinidad & Tobago

56

Unemployment in the region tends to be of long duration

Individuals who spend more than a year unemployed after they lost or left their last job:

⁻ Dominica: 51% (2008-09)⁻ Grenada: 48% (2007-08)⁻ Barbados: 34% (2010)⁻ St. Kitts and Nevis: 32% (2007-08)


57

Unemployment is considerably higher among females than among males in most countries.

2011

2012

2009

2012

2008

2011

2011

2007

2008

2012

The Ba-

hamas

Barbados Belize Dominican Republic

Grenada Guyana Jamaica St. Lucia St. Vincent & The

Grenadines

Trinidad & Tobago

0

5

10

15

20

25

30

35

0.0

0.5

1.0

1.5

2.0

2.5

14

11

810

18 17

10 1012

4

1412

2022

32

26

1719

26

7

Male Female Fem./Male

%F

emale/M

ale


58


Dynamics of unemployment gender gap:

It has decreased in recent years in The Bahamas and Barbados.⁻ But because unemployment increased more for males

than for females

The gender story has been more positive in the Dominican Republic (2004-2011)⁻ Female’s unemployment actually decreased more than

male’s

59


00

0

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

5

7

9

11

13

15The Bahamas

%

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

56789

10111213

Barbados

%

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

0

5

10

15

20

25Belize

%

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

05

101520253035

Dominican Republic

%

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

05

101520253035

Grenada

%

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

05

101520253035

Guyana

%

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

4

9

14

19

24Jamaica

%

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

5

10

15

20

25

30 St. Lucia

M...

%

10

15

20

25

30St. Vincent and the Granadines

%

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

3579

11131517

Trinidad and Tobago

%

MaleFemale

60

Agenda




61

Youth at higher risk of unemployment

Total

Males

Females

20

07

20

10

20

07

20

08

20

11

20

11

20

10

20

08

20

12

The Ba-

hamas

Barbados* Dominican Republic

Grenada Guyana Jamaica St. Lucia St. Vincent & The

Grenadines

Trinidad & Tobago

0

20

40

60

7.90 11

.14

15.6

0 24.9

0

21.0

0

12.7

0

20.6

0

18.8

0

4.85

18

.90

27

.54

30

.30 42

.00

46

.05

30

.10

34

.00

33

.80

11.9

9

Total Total youth

%

20

07

20

07

20

11

20

11

20

08

20

12

The Bahamas Dominican Republic

Guyana Jamaica St. Vincent & The Grenadines

Trinidad & Tobago

0

20

40

60

6.7 9.3

17

.2

9.6 12

.2

3.6

16

.7 21

.2

43

.6

23

.9 27

.8

10

.5

Male Male youth

%

20

07

20

07

20

11

20

11

20

08

20

12

The Bahamas Dominican Republic

Guyana Jamaica St. Vincent & The Grenadines

Trinidad & Tobago

0

20

40

60

9.1

25

.4

25

.7

17

.2 26

.2

6.6

21

.7

44

.5 50

.0

37

.9

41

.4

14

.5

Female Female youth

%

62

Particularly the teenagersBarbados, 2012

15-19 20-44 45-64 65+

0

10

20

30

40

50

60

43

14

8

0

50

13

6 5

47

14

73

Female Male Total

%

14 - 19 20-24 25 - 49 50-64 65+

0

10

20

30

40

5043

28

1621

9

26

16

5 6 5

33

20

10 116

Female Male Total

%

15

-19

20

-24

25

-29

30

-34

35

-39

40

-44

45

-49

50

-54

55

-59

60

-64

65

+

0

10

20

30

40

50 47

28

2224

1613

8

14

5

0

9

37

27

13

57

36

11 11

5 5

41

27

1815

128 7

128

36

Female Male Total

%

10 - 19 20 - 39 40 - 59 60 +

0

10

20

30

40

50

6052

27

12

3

29

115 3

36

18

83

Female Male Total

%

Belize, 2009

Dominica, 2008/09

Dominican Republic, 2012 Trinidad & Tobago, 2012

15

-19

20

-24

25

-29

30

-34

35

-39

40

-44

45

-49

50

-54

55

-59

60

+

0

5

10

15

2017

14

7

4

6 75

64

3

14

10

5

13

2 12 3

2

15

11

6

25 4

34 3

1

Female Male Total

%

63

Youth unemployment Although it’s a global phenomenon, some Caribbean countries are

among those with the highest youth unemployment rates in the world.

0 10 20 30 40 50 600

10

20

30

40

50

60f(x) = 1.86682399864685 x + 3.15162895925413R² = 0.9112915568382

Total Unemployment (%)

You

th U

nem

plo

ymen

t (

% )

TTO

BHS (2007)

JAMDOM (2007)

VCT (2008)

LCA (2010)

GDR (2008)

GUY

45◦ line

64

Key contributing factors There are two main factors preventing young people entering the labor market.

Lack of skills ⁻ Quality of education is a known issue: passing rates of CSEC in Math and English are around 45%

on average and it is not better in other subjects. Only 21.36% of students passed 5 or more CSEC examination, others are far from this. (CXC, 2012)

⁻ Supply of skills does not respond to demand: 72% of educators vs. 42% employers think graduates are adequately prepared for the labor market. (Mourshed et al. 2012; IDB, 2013)

⁻ Employers value socio-emotional skills, followed by higher-order cognitive skills and technical skills but have difficulty recruiting due to lack of such skills. (Cunningham & Villaseñor, 2014)

⁻ Employers value work experience: adult workers are more likely than younger ones to successfully apply job-specific skills and to have stronger socio-emotional skills and work ethics, and therefore to be more productive in the workplace

Lack of information⁻ Use of informal methods of job search.⁻ Employers don’t have information on young workers: resumes but not work experience.⁻ Lack of experience is an issue: no possibility of referrals and lack of skills learned and proven on

the job.

Other factors are low labor demand and specific vulnerabilities.

65

Risks and costs of youth unemployment

So, youth is out of the education and training systems, without job opportunities, and exposed to risky behaviors: are we losing a generation to discouragement?

The share of youth NEET in the Caribbean is also high. 28% in Belize (17% of males and 39% of females) and 21% in DR (33% of males and

27% of females). Despite higher investment, school enrollment rates are still low in several countries in

the region. Decreasing labor force participation of youth compared to adults.

Youth is also exposed to risky behaviors (“ways out”): Early sexual activity and adolescent fertility.

Although in a declining trend, youth fertility rates are considerably high in some Caribbean countries, some among the highest in the world.

Use of illegal substances, crime and violence. It seems to be an increasing problem in the region.

66

Risks and costs of youth unemployment

Costly risks to be concerned about:

Youth unemployment leaves permanent scars for life: it reduces employment prospects and earnings. Gregg (2001), Gregg and Tominey (2005)

Unemployment and inactivity affect negatively the individual’s mental health status and are not compensated when securing employment. Milner et al. (2013), Mckenzie (2014), Flint et al. (2013)

High youth unemployment, early school leaving, and risky behaviors have long-lasting individual and social costs. Chaaban (2009), Cunningham and García-Verdú (2008)

67

Agenda




68

Policy recommendations

Two main policy recommendations

Collection of data and information systems.

Active Labor Market Policies.

69


Collection of data and information systems

The lack of information is a challenge for better diagnostics of labor markets in the Caribbean that should be further addressed. Collect micro-data on a regular basis to understand labor markets Monitoring and evaluation systems

There are some recent promising initiatives in the region aimed at closing the information gap. Monitoring information systems - World Bank IDF grant with University of the

West Indies Sustainable Household Data Collection Programme (SDP) for the Measurement of

Living Standards in the OECS⁻ Under the leadership of the OECS Living Standards Measurement Committee (LSMC),

with the additional support of ILO.⁻ World Bank team has been supporting the OECS Statistical Office in the

strengthening of the statistical units in OECS countries and the development of harmonized labor force survey.

70

Policy recommendationsActive Labor Market Policies (ALMPs)

Social Protection and Labor System based on three pillars. ALMPs Social assistance Social insurance.

ALMPs. Job search, job counseling, intermediation Training and skills development

ALMPs in the region (preliminary analysis). Important spending but small coverage Considerable redundancy and duplication Lack of coordination and evident gaps in the supply of services

71


Youth education and employment programs to address lack of skills and information

There are several models of programs, three main groups:

Programs that focus on skills development Chilecalifica, National Guard Youth ChallenGe and Job Corps

Programs that focus on matching employers and job seekers Argentina’s Servicio Público de Empleo, UK’s Jobcentre Plus, A&B’s One Stop Job

Centre, Subsidio al Empleo Jóven and Colombia’s Contrato de Aprendizaje

Programs that aim both at developing skills and bringing together employers and job seekers German dual VET System, Career Academy model and YouthBuild in the US, Entra 21 and New Employment Opportunities in LAC, DR’s Programa Juventud y

Empleo, Jamaica’s Steps-to-Work

72

Policy recommendationsYouth education and employment programs to address lack of skills and information

Of all youth programs, those that combine skills development with on-the-job training or work-based activities and job placement components are more effective in improving employability and earnings

Skills are better learned on the job, in particular life and work skills. Chance to see how the real world works in terms of the work-specific activity but

also in terms of the relationships and situations that evolve in regular days at work. See how the topics learned are applied in real life. In working environments students get the chance to face real problems,

consequences and challenges that helps them in the development of self-confidence, problem-solving and critical thinking abilities, work ethics, among other life and work skills (Lerman, 2013; Halpern, 2012; Halpern, 2009; Rauner, 2007).

There is evidence that youth prefer to learn in interactive settings: on the job (62%), hands-on (58%), multimedia (54%) (Mourshed et al., 2011).

73


Implementing key factors: actors

The participation and commitment of employers is fundamental. Employers know their demand for skills. Training and mentoring. Feeding information systems.

Government coordination and regulation is essential to ensure quality and proper functionality of the schemes. Beyond design and financing. Provide institutional infrastructure. Provide spaced for communication among actors, guide dialogue, make sure

action is taken

74

Policy recommendationsImplementing key factors: SPL System One size does not fit all: the need for a one-stop shop with tailor-made

services. One-stop shop: centralizing the supply of information and services in one place

Services

⁻ Job seeker obtains information on all services in one place (referrals).

⁻ Coordination of programs and services’ supply: avoids duplication and closes any gaps in provision (System approach).

⁻ Policy makers can design programs in an interconnected manner ensuring a path out of unemployment towards a self-sustained income generating status (quality job).

⁻ Facilitates the collection and maintenance of databases to the authorities, for example, using a single data registry for targeting and service provision (Cadastro Único in Brasil).

75

Policy recommendationsImplementing key factors: SPL System One size does not fit all: the need for a one-stop shop with tailor-made

services.

Tailor-made services: recognize the heterogeneity of job seekers and their needs⁻ Not of all individuals have the same

needs, not of all of them lack the same skills, not all of them lack skills at all!

⁻ It’s not just standard demographics or academic qualification. It’s also its interaction with life trajectories what better explains the needs of service.

⁻ It’s more effective in responding to needs.⁻ It’s more efficient: more accurate

targeting of programs and services.

76

Policy recommendationsImplementing key factors: SPL System

Ensuring programs are cost effective and financially sustainable.

Scarce resources: Government needs to assess which programs are most cost effective and suited to country context.

Monitoring and evaluation of programs allows a feedback loop to policy makers who can then assess whether programs are well designed, financially sustainable and effective in achieving their outcomes. Piloting interventions and evaluating them prior to scale up is essential.

77

Thank you!




Continued implementation and monitoring of priority actions by relevant Ministries/Agencies

Staging of next CGF SKN Chapter Accountability Report on Progress – November/December 2014

Participation in Final CGF Regional Workshop to compare with other countries and take stock of the first year of reforms

CGF PROCESS – NEXT STEPS




Documents

CARIBBEAN GROWTH FORUM St. Kitts and Nevis Chapter FIRST ACCOUNTABILITY WORKSHOP Marriott Hotel June 11, 2014