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How are future blue-collar skills being created?

Victor Mulas's picture

A technology bootcamp in Medellín, Colombia. © Corporación Ruta N Medellín/World Bank

The fourth industrial revolution is disrupting business models and transforming employment. It is estimated that 65 percent of children entering primary school today will, in the future, be working in new job types that do not exist today. These changes have been more noticeable in developed countries, with the 2008 financial crisis accelerating this transformation process. However, they are also affecting emerging economies that have traditionally relied on routine blue-collar jobs (e.g., textiles, manufacturing or business process outsourcing) for broad employment and economic development.

Start-ups are at the core of these disruptions in business models. In recent years, we have witnessed how completely new market categories have been created out of the blue, transforming entire sectors of the economy, including transportation, logistics, hospitality, and manufacturing. When start-ups disrupt a market, a new business category is created and new sources of growth and employment are generated.

When we think about start-ups and employment, the first thing that come to mind is the start-up founders, typically highly educated and motivated individuals. However, evidence from New York startup ecosystem, a testing ground of new jobs generated through technology after the financial crisis, suggests otherwise.

First, most of the jobs generated by the tech start-up ecosystem are not in start-ups but in the traditional industries that either are influenced or disrupted by start-up technologies (with over three times more employment generated in the non-tech traditional industry).

Second, more than 40 percent of these new jobs did not require bachelor’s degree skills or above. These are jobs like building a website, a basic database, a web or mobile app.

What are the skills needed to fill these categories — which we can call tech blue-collar skill jobs — and how people are being trained for them?

Ending Poverty in China: How NGOs can play a role

Wenkui Liu's picture
This blog is part of a series produced to commemorate End Poverty Day (October 17), focusing on China – which has contributed more than any other country to global poverty reduction – and its efforts to end extreme poverty by 2020. Read the blog series here. 
China has 128,000 poor villages with 55.75 million registered poor people. There is no one-size-fits-all solution to lift them out of poverty. Typically, people fall into four categories of poverty, requiring different approaches. Unlike some development players, NGOs are more agile and are innovative in solutions, allowing them to provide support sooner.

The first category comprises those who are temporarily incapable of work due to illness or having school-aged children to support. For these people, rehabilitation or bringing back their capability to work to will help reduce their vulnerabilities.

The second category consists of those who have some resources but lack business skills or efficiency. Working with them to develop new business models and use resources more efficiently will help them get out of poverty.

The third category is made up of those who are capable of work but external conditions or resources like jobs are poor. Relocation or employment skills training may be effective solutions.

The fourth category comprises those who are permanently incapacitated, such as the severely disabled. They should be supported by the social protection system.   

Weekly links October 21: Deaton on doing research, flexible work schedules, 17,000 minimum wage changes, and more…

David McKenzie's picture
  • Three questions with Angus Deaton – why diversity in researchers is good and directed research can be bad “Everyone of us has a different upbringing. Many people in economics now come from many countries around the world, they have different political views and political backgrounds. There’s a whole different social culture, and so on. I think economics in the United States has changed immeasurably in the last 30 years and been enormously enriched by that diversity with people coming from all over the world. That will only work if people bring with them the stuff they had when they were children or the stuff they did in college, the passions they had early on. Either smash them to pieces in the face of the data and see your professors like me telling them to do something else or turn them into something really valuable. So, don’t lose your unique value contributions. Stick to what is really important to you and try to research that” (h/t Berk).
  • Chris Blattman on the hidden price of risky research, particularly for women.

Why/how should corporates defend civil society space? Good new paper + case studies

Duncan Green's picture

I saw some effective academic-NGO cooperation last week, and even better, it involved some of my LSE students.

The occasion was the launch of Beyond Integrity: Exploring the role of business in preserving civil society space, commissioned and published by the Charities Aid Foundation and written by Silky Agrawal, Brooks Reed and Riya Saxena, three of last year’s LSE Masters students. They researched and wrote the report as part of a student consultancy project, and CAF were so impressed that they decided to publish it. Result.

First the content: the authors went looking for cases where businesses had got involved in defending civil society from attacks by government, and identified four really interesting cases (see table). They interviewed a number of the players in each case.

They found some ‘key learnings’ (bit depressing to see them already adopting the barbarisms of aidspeak!):

  • Firms in consumer-facing industries are responsive to large-scale social movements that raise awareness regarding human rights abuses;
  • Privately owned companies with strong ethics and values tied into the core business model, led by engaged leaders, are likely to respond to civil society;
  • At times, privately held dialogues between key stakeholders and host governments can be more effective at initiating positive action than a public challenge, as the respect and dignity of each stakeholder is maintained;
  • Leveraging formal and informal cross-sectoral networks is instrumental in convincing corporations to act on behalf of civil society.

The data revolution continues with the latest World Bank Innovation challenge

Marianne Fay's picture

On September 22, 2016, we launched the World Bank Big Data Innovation Challenge – a global call for big data solutions for climate resilience and sustainable development.

As the world grows more connected--through mobile phones, social media, internet, satellites, ground sensors and machines—governments and economies need better ways to harness these data flows for insights toward targeted policies and actions that boost climate resilience, especially amongst the most vulnerable. To make this data more useful for development, we need more data innovations and innovative public-private arrangements for data collaboration.

The World Bank Big Data Innovation Challenge invites innovators across the world to reimagine climate resilience through big data solutions that address the nexus areas of food security and nutrition, and forests and watersheds – high priority areas of the World Bank’s Climate and Forest Action Plans and the UN Sustainable Development Goals.

Citizen Engagement in Kenya: From law to practice

Tiago Carneiro Peixoto's picture
Citizens mapping projects at ward level in Makueni County
Citizens mapping projects at ward level in Makueni County

The introduction of “citizen engagement” into law is an idea that is gaining popularity around the world.

New provisions in Kenya’s recent Constitution enshrine openness, accountability and public participation as guiding principles for public financial management. Yet, as citizen engagement practitioners know, translating participation laws into meaningful action on the ground is no simple task. Experience has shown that in the absence of commitment from leaders and citizens and without appropriate capacities and methodologies, public participation provisions may lead to simple “tick the box” exercises.
Thanks to the support from the Kenya Participatory Budgeting Initiative (KPBI)* and the commitment from West Pokot and Makueni** County leaders, participatory budgeting (PB) is being tested as a way to achieve more inclusive and effective citizen engagement processes while complying with national legal provisions. The initial results are quite encouraging.

Prices seen rising for oil and other commodities in 2017

John Baffes's picture

Prices for most commodities, including oil, are forecast to rise in 2017 as a long period of declining prices appears to be bottoming out, according to the October Commodities Markets Outlook.

Oil prices are forecast to rise to $55 per barrel next year from $43 per barrel in 2016 as markets readjust after an era of abundant supply that outpaced demand. Energy prices, which also include coal and natural gas, are forecast to jump 24 percent in the coming year. The decision in September of the Organization of the Petroleum Exporting Countries (OPEC) to resume limiting oil production is another important factor behind the higher price forecast.

A tale of twin demographics: Youth in cities

Nicole Goldin's picture
60% of urban populations will be under the age of 18 by 2030.  How can we harness youth potential as a growth engine for cities? Photo: Arne Hoel/ World Bank

This week thousands of policy-makers, experts, NGOs and urban-minded citizens of all stripes are convening in Quito, Ecuador to discuss the New Urban Agenda at Habitat III – a significant global convening that occurs every 20 years. And, in a couple weeks, amid the costumes and candy, ghosts and goblins of Halloween, the world will mark UN World Cities Day on October 31st. For good reason, youth are part of the conversation.  In today’s global landscape, two demographic patterns should stand out:  rapid urbanization and large youth populations.  These patterns are especially robust across developing nations.  Already the worlds’ cities host half of its citizens, and Asia and Africa are expected to account for 90% of urban growth. While growing, cities have also become younger – many of the world’s nearly four billion people under the age of 30 live in urban areas, and according to UN-HABITAT, it is estimated that 60% of urban populations will be under the age of 18 by 2030.

Do PPPs have a future?

David Baxter's picture

Photo Credit: Thomas Hawk via Flickr Creative Commons

In September, a whirlwind of meetings took place with agencies and development banks in Washington, D.C., and Europe that were focused on the current and future implementation of public-private partnerships (PPPs) across the global market. The healthy debate on the topic exposed the participants to interesting insights provided by proponents and naysayers of PPPs.
Many PPP experts that I met shared ideas on the changing context of PPPs and how these changes will impact the implementation of PPPs across regions and sectors in the near and far future. All agreed that the long-term consequences of future political, economic and societal changes are particularly difficult to predict.

Giving voice to the poor: Adding a human touch to poverty data in South Sudan

Utz Pape's picture

We humanize what is going on in the world and in ourselves only by speaking of it, and in the course of speaking of it we learn to be human. –Hannah Arendt

We all know that measuring poverty is critical to monitor progress and to tailor effective policy response. But what the numbers mask is the pain and suffering that people go through to make ends meet. Let’s take the case of South Sudan. The country has had a very tumultuous time, witnessing more than its share of a few crises between 2015 and 2016. The collapse of a fragile peace accord led to a renewed military confrontation while simultaneously international oil prices dropped, depriving South Sudan of its main source of foreign exchange. This triggered a severe fiscal and economic crisis, leading to sky rocketing prices as documented in our real time market price dashboard. Securing livelihoods has become more and more difficult with 66 percent of the population now living in poverty, a new peak.

The 66 percent number certainly summarizes the country’s poverty level, which is unquestionably useful for comparisons and analyses to inform policies and programs. However, what the number doesn’t reveal is the struggle that families go through daily. To capture this aspect and give a humane feel to an abstract poverty number, we have started collecting short video testimonials from people living in South Sudan as part of the High Frequency Survey: