For Tanzania, a predominantly rural economy striving to achieve middle-income status by 2025, a major challenge is to create employment for 800,000 youth entering the labor market each year.
Labor and Social Protection
On World Youth Skills Day, we acknowledge the millions of young people that are falling in between the cracks because of a “skills gap” – a mismatch on the skills that they have acquired and the skills demanded by today’s employers.
When I was a high school student in Belgium, our history textbook included a reproduction of a painting entitled “The Drunkard” by Eugène Laermans. The painting was included in the section describing the history of the labor movement in the country and its achievements in passing legislation aimed at improving the situation of the working class. In particular, the painting was meant to illustrate why the Belgian law introducing child benefits – monthly transfers to all families raising children until age 18 (or until age 25 as long as they are still students) - stipulates that these benefits are paid to the mother. The law still holds today, even if it allows for exceptions when the mother is not present in the household.
It’s Ramadan and the Arabic TV channels are festooned with shows that vary from recurring popular soap operas, cooking and competition shows — but one has become the talk of the town.
Al Sadma, or The Shock, the Arabic version of the popular American show What Would You Do, is a reality TV prank show. But it’s not like many other tasteless reality shows that invoke fright and even terror, it is a show that invokes morality and examines humanity.
As many as one billion children under the age of 18 experience some form of violence every year. This exposure is not only a violation of child rights; it can also hamper children’s cognitive development, mental health, educational achievement, and long-term labor market prospects.
Meanwhile, an estimated 1.9 billion people in 136 countries benefit from some type of social safety net, such as cash transfers and public works that target the poor and vulnerable—presenting a vast policy instrument with potential to help prevent childhood violence.
There is increasing evidence that labor markets in developed countries are polarizing or hollowing out. On the one hand, the share of employment in high-skilled, high-paying occupations (managers, professionals and technicians) and low-skilled, low-paying occupations (elementary, service, and sales workers) is growing. On the other hand, the share of employment in middle-skilled, middle-paying occupations (clerks, plant and machine operators) is being squeezed. There is ample evidence of polarization in the United States (see Acemoglu and Autor, 2011; Autor and Dorn, 2013; and Autor (2014) for a less technical discussion), and also in Western Europe (Goos, Manning, and Salomons, 2014). Harrigan, Reshef and Toubal (2016), more recently, document the same phenomenon in France, using firm-level data.
In the coming years and decades, China is expected to slowly relinquish its lead position in the global apparel market, opening the door to other competitors. This is a huge opportunity for South Asia to create at least 1.5 million jobs that are “good for development” – of which half a million would be for women – according to a new World Bank report Stitches to Riches? But those numbers could be much higher if the region moves quickly to tackle existing impediments and foster growth in apparel, which will also yield dividends for other light manufacturers (like footwear and toys).
How South Asia fits in the global apparel market
Currently, China holds by far the largest share of global apparel trade – at 41 percent, up from 25 percent in 2000, with about 10 million workers. But as China continues to develop, it is likely to move up the global value chain into higher-value goods (like electronics, and out of apparel) or switch production among sectors in response to rising wages. A 2013 survey of leading global buyers in the United States and European Union (EU) found that 72 percent of respondents planned to decrease their share of sourcing from China over the next five years (2012-2016).
Already, the top four apparel producers in South Asia – Bangladesh, India, Pakistan, and Sri Lanka – have made big investments in world apparel trade, now accounting for 12 percent of global apparel exports (see figure). In terms of apparel export value, Bangladesh leads the pack (at $22.8 billion), followed by India ($12.5 billion), Sri Lanka ($4.4 billion), and Pakistan ($4.2 billion).
(Country share of global apparel exports)
Source: Stitches to Riches?
Why apparel jobs are “good for development”
When we think of jobs that are “good for development,” the main yardstick is whether they will help translate growth into long-lasting poverty reduction and broad-based economic opportunities. Apparel fits the bill for numerous reasons.