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Employment Opportunities

Results-based financing links masses of youth with employment in Nepal

HELVETAS Swiss Intercooperation's picture

Building electrician training, NepalBettina Jenny and Sonja Hofstetter of Helvetas Swiss Intercooperation, Switzerland and Gisela Keller of Helvetas USA explain how a skills development program in Nepal has trained over 100,000 youth— with more than 75,000 of them gainfully employed.

In Nepal, about 500,000 young people enter the Nepalese labor market every year. Most of them are unskilled and have not completed formal education. Moreover, the private sector in Nepal is weak, and a ten-year-long civil war (1996-2006) and subsequent ongoing political instability have contributed to the worsening economic and social situation. In short, getting a job is a huge challenge for many young people in Nepal.

Good intentions are not enough. Future employment and earning outcomes are the key indicator to measure the success of skills training. Many development actors provide skills training with the goal of making personal and economic perspectives available to youth in countries with high unemployment. Such programs tend to focus more on training delivery than on employment, and graduates of these kinds of youth skills programs often discover that their newly acquired skills do not meet market demands.

We do things differently. In 2007, the Swiss Agency for Development and Cooperation (SDC) joined with HELVETAS Swiss Intercooperation to establish the Employment Fund to create new and effective ways to scale up approaches addressing the alarming scope of youth unemployment in Nepal. Funded by the Swiss Agency for Development and Cooperation, the Department for International Development (DFID) and the World Bank, the Employment Fund began its operations in 2008. The Employment Fund offers training in about 80 occupations in construction, hospitality, garments and textile, agriculture, and electronics – to name a few -- in locations all over Nepal. The Employment Fund received a prize for good practice in youth employment awarded by the International Labour Organisation (ILO), and was among the ten finalists for the OECD DAC Prize for Taking Development Innovation to Scale.

Unlike many other skills training programs, the Employment Fund applies a results-based financing approach that has proven to effectively lead to gainful employment upon the completion of training. Training providers are paid based on their success in training youth and subsequently connecting them with the labor market. The key result is gainful employment.

Preparing African youth for high-paying engineering jobs

Peter Materu's picture
Training Young Engineers to Transform Africa


At the 2013 Global Social Venture Competition held at Berkeley’s Haas School of Business, two African students, Moctar Dembele and Gérard Niyondiko, won the first prize for creating an anti-malarial soap bar. They tested and developed this product at the International Institute of Water and Environmental Engineering in Burkina Faso, a small country in West Africa.

Equal pay for equal work for migrant workers?

Sanket Mohapatra's picture

The recent negotiations between Philippines and Saudi Arabia about the minimum living wages for migrant workers have resulted in a stalemate. Philippines is demanding a minimum wage of $400 per month for its workers, while Saudi Arabia is willing to stipulate a minimum wage of $200 per month. Saudi Arabia stopped processing contracts of Filipino workers in March, recently the Philippines has said that it will not send Filipino maids to Saudi Arabia until the dispute is resolved. Saudi Arabia hosts 1.2 million Filipino migrants and accounts for nearly 300,000 overseas deployments annually, while the Philippines receives $1.5 billion annually in remittances from Saudi Arabia. Thus, this wage dispute could lead to loss of employment opportunities for Filipinos, involve cost of reintegrating returning workers, and a reduction in remittance flows -- all of which could adversely impact the Philippine economy. 

Did You Kill Somebody Tonight?

Eliana Cardoso's picture

“Did you kill somebody tonight?” Durga Pokkherel asks the police officer while in police custody in Nepal, after hearing terrified screams. As told in her memoir, Shadow over Shangri-la, the police officer replies: “You always imagine something big. He is not killed. As a routine treatment he was enclosed in a sack and beaten. But he would not speak a word, so some other police friends put a couple pins in his fingers. That is all.”

The dialogue took place in late 1990s, when both Maoists and the state committed human rights abuses in Nepal, a country on the top of the world, where caste, ethnicity, gender status and regional disparities have largely determined inequality. Social exclusion fostered state fragility, a Maoist rebellion, and a civil war that lasted for ten years (1996-2006).

After an unpopular royal coup in February 2005, the international community put pressure on the government to accept international monitoring under the UN Office of the High Commissioner for Human Rights. The monitoring created the space for peaceful political protest and, in April 2006, the King restored Parliament. Civil war came to an end with elections and the declaration of the Federal Republic of Nepal in May 2008.