What the D in OECD stands for

by Barbara Ischinger
Director for Education

Did you know that the Organisation for Economic Co-operation and Development helped to lay the groundwork for the United Nations’ Millennium Development Goals? Even though Development is part of our name, there are many people who don’t realise just how much of our resources are devoted to developing economies and not only to the development of the OECD’s 34 member countries.

The focus of this year’s International Economic Forum on Africa, held at the OECD’s Paris headquarters in early October, was youth employment, but this issue cannot be separated from another one just as important:  education. The African Economic Outlook 2012 notes that in Egypt, for example, about 1.5 million young people are unemployed at the same time that private-sector firms cannot fill 600 000 vacancies. And in South Africa, there are 3 million young people who are neither in education nor employed and 600 000 unemployed university graduates, yet 800 000 jobs are vacant. At the Forum itself, I heard many participants ask themselves whether they were equipping their students with the skills their economies needed.

This is exactly where the OECD’s expertise in collecting and analysing data can help. Already, many of the countries and economies that participate in the OECD’s Programme for International Student Assessment (PISA) are in the developing world; but we think all countries would benefit from even greater participation by developing countries. By participating in PISA, countries can see whether the skills they are teaching their 15-year-olds are relevant to “real life”. They can also learn from other countries’ experiences how to improve their own education systems, and can benchmark their progress over time. The assessment, itself, benefits by gaining a deeper understanding of student performance in a broader range of countries and cultural contexts.

We have completed a review of Egypt’s system of higher education and have also reviewed the education systems of South Africa, Gabon and Mauritius. These in-depth analyses – conducted in close collaboration with local actors, regional organisations and other international partners – can guide countries in reforming their education policies so that students leave school with the skills needed to participate productively in the economy. We also stand ready to work with our partners – in Africa and elsewhere – to build stronger links between labour markets and education systems. That would help to avoid the situation, seen in so many countries, where universities train students to become civil servants when what the country or region really needs are engineers and health workers – and also people with the mid-level trade, technical and professional skills that can be acquired through well-designed vocational programmes. At the moment, vocational education accounts for only 5% of training among African youth.

As the 2015 target date for achieving the Millennium Development Goals approaches, the international community has begun to consider a framework for goals beyond 2015. For the first set of goals, progress in education is measured by access; I hope that future goals will complement such measures by looking at learning outcomes. Again, this is one of the OECD’s specialties, and we’re keen to offer our work and expertise to an even larger number of countries. I thought you’d want to know.

Links:
OECD Development home page
The OECD and the Millennium Development Goals
OECD Strategy on Development
The OECD Strategy on Development: Giving fresh impetus to a core mission
2012 International Economic Forum on Africa
OECD Skills Strategy
Photo credit: Orphan students in Swaziland / Shutterstock

Making the right connections

by Barbara Ischinger
Director for Education

It’s becoming clear to me that the crisis in youth unemployment around the world is not just one of the aftershocks of the global economic downturn, but may also have roots in education systems that are not adequately preparing students for 21st-century economies. I took that message to a regional conference on Promoting Youth Employment in North Africa,  held in Tunis in mid-July, where I presented not only the OECD Skills Strategy but also discussed the importance of improving the quality of education and of teachers, and of making quality education accessible to all.

Some 41% of 15-24 year-olds in Tunisia are unemployed – a statistic that is devastating in the present and potentially catastrophic for the future of the country and the region. In more than half of OECD countries, the rate of unemployment among young people approaches or exceeds 20%; and many of the underlying conditions are the same as those found in Tunisia. These include not only weak or stagnant economic growth, but education systems that cling to outdated policies and practices and are divorced from the labour market.

Today, education systems are expected to provide graduates not only with foundation skills and knowledge in given disciplines, but also with the skills needed to adapt to changing employment circumstances and to transfer what they have learned to different environments – what are known as generic skills. To do this effectively, there has to be more co-operation between education systems and industry. Without dialogue, education systems will not know which skills are in demand in the labour market, while prospective employers will not know whether graduates are leaving education with the skills they are looking for. Employers, too, have to be willing to invest in further training for their employees; and policy makers need to provide fiscal incentives to make it attractive for employers to do so.

But equally important, education systems need to adopt more innovative, project-focused teaching methods, particularly in science, to spark students’ curiosity and involvement. I’m encouraged to see this already happening in many places: from France’s La Main à la Pâte programme, developed by the French Academy of Sciences, which aims to reinvigorate a hands-on approach to the teaching of science in elementary schools, to the Agastya International Foundation, which dispatches mobile science labs throughout rural India, to the science education company  founded by Sally Ride, the first American woman in space, who died last month, whose aim is to develop and support young girls’ and boys’ interest in science, math and technology.

There are – and will be – many more of these kinds of initiatives. Their value is not only that they help to make science more meaningful to students, but they can also help to make the important connection between what students learn in school and how that knowledge and those skills can be used effectively in the wider world. And if we can also make more connections between education systems and employers, then we may be able to help more young people fulfil their potential – and help more societies prosper – by creating a better match between young people’s skills and the jobs that propel economies.

Links
OECD Skills Strategy
Related blog posts:
“Creativity” is spelled with a “why”
Understanding youth, unemployment and skills in Africa
Photo credit: Stack of pebbles / Shutterstock

Understanding youth, unemployment and skills in Africa

by Denielle Sachs
McKinsey Social Sector Office

For those working on employment issues, one thing is clear: the tense imbalance between the demands of the labor market and the supply of appropriately skilled workers is reaching its breaking point. Last week, the McKinsey Global Institute launched, The world at work: jobs and skills for 3.5 billion people. The report found that by 2020 there could be as many as 40 million too few high-skill workers and up to 95 million too many low-skill workers out in the job market.
Avoiding such massive imbalances will require a radical approach to accelerate education and skills building, and to boost job creation for less-skilled workers. Anything less and we will see a growing shortage of high-skill workers, persistent joblessness for many low- and middle-skill workers, rising income inequality, and distressingly high rates of youth unemployment. The numbers are clear: by 2030, the world will have as many as 1 billion workers without even secondary education, and most of them will be living in India, South Asia and Africa.

A lot of institutions are looking at these issues , including OECD and their recently launched Skills Strategy. As part of our ongoing research on youth unemployment and the skills-jobs mismatch, we asked a few experts what a solution might look like for young people in Africa where the under 25 represent three-fifths of sub-Saharan Africa’s unemployed population, and 72 percent of the youth population lives on less than $2 a day.

First, we have to understand who we mean when we talk about the young and out-of-work in Africa. Fred Swaniker, Founder and CEO of the African Leadership Academy, tells us that, on average, she is an 18-year-old girl, living in a rural area, literate but not attending school. To his mind, entrepreneurship – both the technical skills and the mindset — is the answer. It should be an integral part of every child’s education whether that schooling be formal or informal.

 For the Chief Economist for the World Bank’s Africa Region Shantayanan Devarajan, the answer lies in productivity. “The challenge of youth employment in Africa is not just to create more wage and salary jobs but to increase the productivity, and hence earnings, of the majority of young people.” This can only happen by “first, increasing their basic skills, which they can take with them when they move to new enterprises; and second, creating jobs in the formal sector by improving the economy’s competitiveness, so that this sector can absorb more qualified workers into a productive workforce.”

In South Africa, a very specific socio-political context post-apartheid, Thero Setiloane, CEO of the Business Leadership South Africa, explains that access to education and the quality of that education (“Only 35 percent of the children in third grade are able to pass the literacy and numeracy tests.”) are major stumbling blocks. His preference is for a joint government-business solution. “Business must work with government to adapt the school curriculum… so that young people leave school ready for work. Training programs must be tailored to demand…We also need to build in incentives for businesses to address the social-capital deficit in poor communities.”

Moataz Al Alfi, CEO of the Egypt Kuwait Holding Company could not agree more. Coming from the Middle East where the “paradox of the labour markets”, as he calls it, is perhaps at its worst, he calls for “a solution that requires a strong partnership between business, with its urgent need for skilled workers, and government, which is charged with educating young people.” The region currently has the highest youth unemployment rate in the world, at 25 percent. And, on the heels of the Arab Spring, and in the midst of the lingering economic crisis, it is only expected to rise.  He too returns to the issue of a failing education system that does not prepare young people for the jobs that the market desperately needs to fill.

Links:
Join the debate and register for our online panel event on June 26th at 8am EDT //2pm CEST , featuring experts from the OECD and IFC
See also: OECD Skills Strategy

Visit our interactive portal on skills: http://skills.oecd.org
OECD Development Centre

Photo credit: African youth / Shutterstock