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Will Possible Labor Policies by Gulf Countries Affect Remittances to South Asia?

Ceren Ozer's picture

My entry last week gave a quick profile of the South Asian overseas workers and discussed the crucial role of remittances received from the Gulf Cooperation Council (GCC) countries (Saudi Arabia, the U.A.E, Kuwait, Qatar, Bahrain and Oman) for South Asian economies. Today I’d like to discuss whether changes in the labor market policies of the GCC countries could jeopardize job prospects for South Asian migrant workers.

Creating jobs for GCC citizens is already on the top of the agenda in some of these countries and is bound to gain more momentum with the youth bulge. Efforts to create jobs for nationals through the “nationalization of the labor market” have been further intensified as a response to the recent events in the Middle East. Across the GCC, additional policy measures are being announced highlighting the need to replace expats with nationals in private and public sector. These messages have been the strongest in Saudi Arabia, but also in the U.A.E. and Kuwait.

Can the Diaspora contribute to the creation of jobs in the Middle East and North Africa?

Sonia Plaza's picture

Recent attention has shifted from analyzing the impact of skilled migration on sending country labor markets to a broader agenda that also considers the channels by which diasporas promotes trade, investment, innovation and technological acquisition. Several developed and developing countries are increasing their ties with their Diasporas to take advantage of these transfers beyond remittances. It will be important to assess what could be the potential of strengthening the linkages with their Diasporas for countries in the Middle East and North Africa. Can these countries tap into their Diasporas as a source and facilitator of innovation, research, technology transfer, trade, investment and skills development?

Nolland and Pack (2007) have analyzed whether Arab-communities in North America and Europe can play a similar role as countries in Asia (China, India, South Korea and Taiwan, China) in revitalizing the Middle East. The authors also indicated that “given the limited extent of manufacturing activity in the Middle East and the lack of equivalents to the Indian Institutes of Technology, it would make difficult to benefit from this option.”

Education: the 2010 Year in Review

Christine Horansky's picture

2010 was a banner year for education as global attention brought by the UN Millennium Development Goals summit in New York City spotlighted the catalytic role education plays in fighting poverty and meeting a number of critical development goals. As countries and development partners alike strive to maximize development effectiveness, investing in education has emerged as a clear priority for this reason -- as well as as part of the solution to rising unemployment, a point echoed by US President Barack Obama in last week's State of the Union. The World Bank's forthcoming Education Strategy, which launched global consultations in 2010, takes special aim at the critical need for learning to translate into skills for work and life. While the global economic downturn has threatened to slow hard-won progress, the World Bank scaled up development assistance with over $5 billion in support to education during FY2010.

Education is Fundamental to Development and Growth

Elizabeth King's picture

Earlier this month, I was invited to be a keynote speaker on the theme of "Education for Economic Success" at the Education World Forum, which brought education ministers and leaders from over 75 countries together in London.

Education is fundamental to development and growth. The human mind makes possible all development achievements, from health advances and agricultural innovations to efficient public administration and private sector growth. For countries to reap these benefits fully, they need to unleash the potential of the human mind. And there is no better tool for doing so than education.

Homework from the Seoul G-20: Measuring Skills

Ariel Fiszbein's picture

The Seoul G20 summit in November ended with some homework for the World Bank. We were asked to work with the ILO, OECD and UNESCO to develop internationally comparable indicators of skills that can help countries in their efforts to better match education and job training to market needs.  The G20 was right to make this a priority. 

In this post-financial crisis period, jobs play an important  role in recovery. Making sure that people have the right skills to get these jobs is the other side. Developing countries, especially, know that skills development is necessary if they are going to attract investment that will create decent jobs and raise productivity.

Are Non-Cognitive Gains in Education More Important than Test-Scores?

Jishnu Das's picture

Most educational interventions are widely considered successful if they increase test-scores -- which indicate cognitive ability. Presumably, this is because higher test-scores in school imply gains such as higher wages later on. 

However, non-cognitive outcomes also matter---a lot.

Elephants on the Autobahn?

Tanya Gupta's picture

When it comes to use of social media in development, development institutions remind me of lumbering elephants walking down the autobahn.  In any other sphere, development organizations would not be at such a disadvantage.  We have been building roads for ever.  There has not been any fundamental change in the technology of building roads.  Development organizations learnt slowly but well about development challenges in various sectors and are now legitimate experts in these areas.  All the same the title of “knowledge institutions” is a bit hard to swallow.  The reason, probably somewhat unfair, is that knowledge today, for most people is intimately tied to technology, social media too is viewed as a medium for knowledge, much like the network of roads and highways are a medium for commerce.  

Jumpstarting Jobs: Skills Start with Education

Christine Horansky's picture

As the World Bank's Annual Meetings met to discuss global development this October, the issue of jobs was front and center. The new Open Forum 2010 allowed leading thinkers and engaged citizens from around the globe to weigh in on the ultimate question of how to jump-start jobs, as well as cultivate economic stabilty for future generations.  

Read the Human Development Network's Vice President Tamar Manuelyan Atinc's commentary, as she discusses the Jumpstarting Jobs session from the Meetings Center blog:

Universalizing Opportunities through Investing in Education in India

Joe Qian's picture

The World Bank released a report this week on the current state of the educational system in India and concluded that while investments and performance have improved at the primary and higher education levels, there remains a rather considerable gap in access, distribution, and achievement at the secondary level.

As India continuously develops and entrenches itself as a major player in the global knowledge economy, the majority of growth have been in the skilled services and manufacturing sectors. This requires that the 12 million young people who join the labor force every year have the necessary skills to access these more lucrative jobs and compete successfully in the global economy, especially as the IT sector has become an essential driver of the economy.

“Evidence from around the world suggests secondary education is critical to breaking the inter-generational transmission of poverty -— it enables youth to break out of the poverty trap.” Lead Education Specialist Sam Carlson said.

However, India's gross enrolment rate (GER) at the secondary level of 52% is lower than the GERs of countries like Sri Lanka (83%) and China (91%). However, I was quite surprised that the rate was also lower than countries with lesser GDP per capita such as Vietnam (72%) and Bangladesh (57%).