This year, perhaps even more than in previous years, I am very excited to come to DYS for two main reasons.
First, since its inception in 2014, the Digital Youth Summit has become one of the premier technology conferences in Pakistan. Back in 2014, we got some skeptical responses to the idea of holding a tech conference in Peshawar. National speakers were hesitant to make the trip to Peshawar. Security restriction on international travel were in place for KP up to a week before the event. Several international speakers dropped out because of difficulties getting visas.
But in 2014, the first Digital Youth Summit came on the tech scene, redefining Khyber Pakhtunkhwa as an emerging digital economy. The event brought together local and international participants (some attending their sessions by videoconference) to deliberate on supporting the growth of nascent ecosystems. Local youth showed up, curious about how the internet is shaping jobs of the future. I met one young woman who had traveled on an overnight bus with her child and sister just to learn more about what it means to work online. She told me excitedly that she could not wait to begin her new internet based career. And for the international speakers who made it, the hospitality and warmth of Khyber Pakhtunkhwa reshaped their views of Pakistan.
Fast forward three years to DYS 2017. DYS has become an established event in Pakistan’s tech community. It has provided an international platform to showcase the vibrancy and enthusiasm of Khyber Pakhtunkhwa as it embraces the digital economy. And while it continues to identify with its core objective—to raise awareness among youth—it has also become a platform for Pakistan’s tech community to deliberate the growth of tech entrepreneurship, the future of digital payments, and how to promote Pakistan’s digital transformation. The commitment and presence of the Government, as well as participation of a wide range of international experts, complements each panel discussion. But it is the enthusiasm and excitement of the youth that gives the event its signature energy and vibrancy.
This year, perhaps even more than in previous years, I am very excited to come to DYS for two main reasons.
Women and men agree on Afghanistan’s development priorities according to the findings of the country’s most recent Living Conditions Survey of 2013/14 where more than 20,000 Afghan women and men were separately asked what they thought their government’s main development priority should be.
Both women and men picked service delivery, infrastructure development and increased security as top development priorities. Three-quarters of men and women said that the main priorities were improved access to drinking water, construction and rehabilitation of roads, and improved health facilities. About 15 to 18 percent of the respondents picked more jobs, access to agriculture and veterinary services, and improved local education facilities. Not surprisingly, in districts rated as insecure, priorities for both women and men shifted toward increased security. This emphasis on security meant that men and women in these districts gave a relatively lower priority for infrastructure services especially for road construction and electricity provision.
Over the past several years, innovations in information and communication technologies have fundamentally changed the nature of work.
This has created new opportunities in digital employment for workers and employers in South Asia and beyond.
So what are the pathways to this new employment?
During a recent Facebook live chat on digital jobs, we explored three themes related to the digital jobs of the future. First, we discussed where the digital jobs of the future are. Second, we discussed how South Asia is uniquely positioned to benefit from the growth of these jobs. And finally, we discussed how to get started in the digital economy by finding relevant training and learning opportunities.
Here’s an overview of our discussion in five points:
Digital jobs fall into two categories: jobs within the IT or digital industries, and what are termed digital society jobs. Digital industry jobs include those such as computer programmer, mobile app developer, graphic designer and other jobs where information and communication technologies are the core tool to perform the job functions. However, technology is also changing what we call digital society jobs, where technology is maybe not core to the job functions, but makes more you more efficient and productive, and improves access to markets and networks.
2. What is driving the emergence of these new digital jobs?
The rapid rise in connectivity that is linking more and more people to the internet is changing employment. Today, many jobs can be performed through computers, with workers telecommuting from almost anywhere in the world. Many business processes are being broken down into task based work, and which can be farmed out to people with the skills to do them, anywhere the world. Some of these tasks need higher-level skills, and can pay well – especially compared with many developing countries’ wage levels. But there are also simpler tasks that many more people, even those with limited skills, can do. This mix creates the opportunity to include more people in the global digital economy, while also creating pathways towards better paying and higher quality work for those who perform well and pick up in-demand skills.
A 90 day reflection of the new Country Director of the World Bank
I take this opportunity to thank all the Sri Lankans that opened their minds and hearts to help me understand the country context and constraints. During my first 90 days in Sri Lanka my colleagues and our clients gave me a warm welcome. I first met our core counterparts in the Government of Sri Lanka when I visited in July 2016. I have since travelled outside of Colombo several times, and I have met with many of our clients, development partners and stakeholders. I have also had the privilege to meet with our friends from the media, civil society groups, academia and private sector to better understand the current operating environment and discuss solutions to issues of common interest.
Cricket in Sri Lanka is followed with so much passion and enthusiasm. This thrilled me as it is the same in my home country, Zimbabwe. Many things about Sri Lanka and its people and culture bring back fond memories from home. Sri Lanka to me now is a second home so I am often torn with who to support when Sri Lanka plays Zimbabwe. It’s even harder to know how to react when Sri Lanka beat Zimbabwe recently.
I recently read an article by Kumar Sangakkara on the Spirit of Cricket. What an apt article. It just demonstrated so much what one can do when they find a common thread that they are all passionate about. Sri Lanka has many lessons to teach and to learn from the game of cricket.
I join my view into that of the article, that all Sri Lankans will need to work together regardless of location, gender, ethnicity, religion, political affiliation and social status. The focus should be on Sri Lanka’s priorities for development and how the Sri Lankan people can work together to win the match of ending poverty and sharing prosperity.
In 2014, Nikhil Chandra Roy was struggling to find and keep regular employment. He had extensive experience dating back to 1977, doing the work of an electrician. But because he had no formal training or certification, Nikhil couldn’t win the confidence of employers in Bangladesh to give him anything more than episodic, relatively low-paying work.
At age 55, just as he was giving up hope for career progress, Nikhil saw an advertisement that ended up turning his outlook and life around. The ad introduced him to the Recognition of Prior Learning (RPL) program, aimed especially at people like Nikhil, who have real skills and experience in a particular occupation but no formal, independently recognized qualifications.
Not long later, Nikhil participated in a three-day program, which entails one day of assessment and two days of training. That led to the recognition he had long awaited and needed to boost his career: a Government-endorsed skills certification from the Bangladesh Technical Education Board (BTEB) in electrical installation and maintenance.
“From that point on,” Nikhil said, “there was no looking back. With my years of experience, knowledge and now skills certification, I was ready to progress my career from just an electrician to an entrepreneur.”
Nikhil was one of the many vulnerable informal sector workers in Bangladesh who have no regular jobs and who work on ad hoc opportunities, making it difficult to sustain livelihoods. These workers, with enough experience to perform the technical work well but not the credential many jobs require, improve their employability and bargaining power in job markets when they get the proper certification. And with that certification, workers gain social status in their communities.
The RPL program, which evaluates the skills level of workers and issues government certification to workers who pass an assessment, has operated since 2014 as a pilot activity under the Skills and Training Enhancement Project (STEP). STEP aims to give more Bangladeshis the technical skills they need to compete successfully in domestic and international labor markets.
The demand for RPL certification has been enormous. Since its inception, RPL has assessed more than 9,000 applicants from all over Bangladesh. Every month, RPL offers 600 applicants certification trainings in electrical installation and maintenance; IT support; block, boutique and screen printing; sewing machine operation; tailoring and dress making; motorcycle servicing; plumbing; and welding.
There is now a huge window of opportunity for South Asia to create more apparel jobs, as rising wages in China compel buyers to look to other sourcing destinations. Our new report – Stitches to Riches?: Apparel Employment, Trade, and Economic Development in South Asia – estimates that the region could create 1.5 million new apparel jobs, of which half a million would be for women. And these jobs would be good for development, because they employ low-skilled workers in large numbers, bring women into the workforce (which benefits their families and society), and facilitate knowledge spillovers that benefit the economy as a whole.
But for these jobs to be created, our report finds that apparel producers will need to become more competitive – chiefly by (i) strengthening links between the apparel and textile sectors; (ii) moving into design, marketing, and branding; and (iii) shifting from a concentration on cotton products to including those made from man-made fibers (MMFs) – now discouraged by high tariffs and import barriers. These suggestions recently drew strong support from panels of academics and representatives from the private sector and government when the report was launched mid-year in Colombo, Delhi, Dhaka, and Islamabad. South Asia is now moving on some of these fronts but a lot more could be done.
Moving up the apparel value chain
Stitches to Riches? finds that South Asia’s abundant low-cost labor supply makes it extremely cost competitive (except for possibly Sri Lanka). But rapidly rising living costs in apparel manufacturing hubs, coupled with international scrutiny, are increasing pressure on producers to raise wages. Plus, countries like Ethiopia and Kenya, who enjoy a similar cost advantage, are entering the fray, and some East Asian countries already pose a big challenge. The good news is that the policy reforms needed to keep the apparel sector competitive would likely benefit other export industries and transform economies (view end of the blog).
Recently, the World Bank Education Team on Sri Lanka Higher Education organized its first Facebook Live to discuss how Sri Lanka’s universities can become world class institutions where students acquire relevant skills. More than 50,000 viewers have so far viewed the video and we have received a large volume of follow up questions and comments.
It is evident that there is strong interest among Sri Lankan youth in their education system, particularly the current state and the future of higher education system, as well as their job prospects.
The questions raised by Facebook viewers spanned across issues on the need to increase access for higher education, improve quality of teaching and learning at tertiary education institutions, increase relevance of higher education, enhance skills development for employment.
Here’s a sample of questions asked and discussed:
- Learning opportunities in higher education have been significantly increased but higher education enrollment rate is well below comparator countries. How can Sri Lanka increase higher education opportunities?
- teaching-learning is still one way In majority of Sri Lanka’s higher education institutions: lecturers deliver information and students listen. How can we change our system more towards student-centered learning to get students actively involved in their learning? How can Sri Lanka strengthen its universities’ teaching-learning practices?
- What are the skills employers most want?
- How can higher education institutions help students acquire the right skills to succeed in today’s job market?
- The foundation of higher education is laid during the senior years at school. But after-school tuition classes have invaded school children’s lives. How can we ensure that teachers are doing their role effectively during school hours to prepare children for higher education?
While the team has been working on these very issues for over a decade since the preparation and implementation of the first higher education project in Sri Lanka, Improving Quality and Relevance of Undergraduate Education (2003-2010), followed by an analytical work on the sector, The Tower of Learning: Performance, Peril and Promise of Higher Education in Sri Lanka, and a follow up operation, Higher Education for the Twenty-First Century Project (2010-2016), this was an exciting opportunity to directly engage with the stakeholders through social media as the team is embarking on the next phase of engagement for the higher education sector through the preparation of Accelerating Higher Education Expansion and Development.
Transformation of the education system is essential to meet the economic and social challenges of a rapidly evolving and knowledge-intensive world.
Sri Lanka has a well-established system of higher education but its expansion is facing major challenges.
Bringing excellence to Sri Lanka’s higher education where students are able to acquire the relevant skills for the global market was one of the main goals of the World Bank supported Higher Education for the Twenty-First Century Project.
The Accelerating Higher Education Expansion and Development Project will aim to expand access to higher education with a special focus on the Sciences, Technology, Engineering and Mathematics which will increase opportunities for young people, including youth from rural and estate sector families, to access better paid jobs.
In addition, it will aim to improve the relevance and quality of priority areas of higher education and increase research, development and innovation products from universities.
The team is grateful to Facebook viewers’ active engagement through Facebook live on Sri Lanka’s higher education and looking forward to the next rounds of discussions.
The China sourcing conundrum
In conversations with U.S. and European retailers and brands, ELEVATE – a company formed in 2013 to support corporate social responsibility – finds that apparel buyers rate diversifying away from China as one of their top three sourcing goals.
This is not to suggest that there is a desire to exit China – which currently holds by far the largest share of global apparel trade, at 41 percent – but rather a need to significantly reduce dependence on product from China, owing to rising costs, factory closures, unenthusiastic second generation family ownership, new attitudes about working in factories, and a perception that China wants to move to higher-value manufacturing. Sourcing and procurement organizations feel uncertain, and uncertainty is not a friend of supply chains.
The problem is that for all its uncertainty, China still has a huge base of factories, a well-developed transport infrastructure, and a comprehensive eco-system that supplies cut-and-sew operations, and management that has matured with years of experience. Even if a buyer would like to give another country an opportunity, many corporate risk managers view certain countries or regions as quite challenging for doing business.
South Asia could seize this opportunity by better meeting requirements – besides competitive costs – that are vital to global buyers. These include: (i) quality, which is influenced by the raw materials used, skill level of the sewing machine operator, and thoroughness of the quality control team; (ii) lead time and reliability, which are greatly affected by the efficiency and availability of transportation networks and customs procedures; and (iii) social compliance and sustainability, which has become central to buyers’ sourcing decisions in response to pressure from corporate social responsibility campaigns by non-governmental organizations, compliance-conscious consumers, and, more recently, the increased number of safety incidents in apparel factories.
Surveys of global buyers show that East Asian apparel manufacturers rank well above South Asian firms along these key dimensions, as noted in a new World Bank report on apparel, jobs, trade, and economic development in South Asia, Stitches to Riches (see table). So, what can South Asia, which now accounts for only 12 percent of global apparel trade, do to become a bigger player? An encouraging recent development is that buyers have started collaborating to facilitate new sourcing possibilities – as the case of Bangladesh illustrates.
“Despite the global slowdown, India has been one of the few countries to have shown remarkable growth in the last financial year. While this has been an achievement in itself, this growth rate can be taken to double-digits.” This was the key message of Dr. Frederico Gil Sander, Sr. Country Economist, World Bank Group, New Delhi. Dr. Gil Sander was speaking to students at the IIM Ahmedabad as part of the World Bank - IIM Discussion Series. The discussion centered around “Financing Double-digit Growth: Current and Long-term Challenges of India’s Financial Sector”.
Dr. Gil Sander noted that urban consumption and public investment have been the key drivers for current growth. Additionally, a good monsoon this year is expected to give a boost to rural consumption. These, coupled with the promised emphasis on supply-side factors such as labour reforms, the inclusion of more women in the labour force, and the timely implementation of GST can boost economic growth. To further increase this growth rate, potentially to double-digits, these drivers will first have to be augmented by productive capacity investment, which in turn depends on ease of credit availability from banks. However, credit growth in India is marred primarily by high lending rates, priority sector lending regulations and rising non-performing assets (NPAs).
China now dominates the global apparel market – accounting for 41% of the market, compared with 12% for South Asia. But as wages in China continue to rise, its apparel production is expected to shift toward other developing countries, especially in Asia. How much of China’s apparel production can South Asia capture and therefore how much employment could be created? This is important because apparel is a labor intensive industry that historically employs relatively large numbers of female workers.
In our new report, Stiches to Riches?, we estimate that South Asia could create at least 1.5 million jobs, of which half a million would be for women. Moreover, that is a conservative estimate, given that we are assuming no changes in policies to foster growth in apparel and address existing impediments.