7.2.1 A pro-poor training strategy: Room for manoeuvre

Recommendations concerning poverty reduction are frequently flawed because they fail to take adequate account of underlying political and social constraints and the ability of the state to fund and deliver effective programmes. Almost everywhere, the room for manoeuvre in developing effective training strategies for the poor is very limited. Furthermore, the unintended consequences of anti-poverty programmes are commonplace mainly because of lack of information and dysfunctional incentives (see Klitgaard, 1998). Consequently, any strategy that is adopted needs to be experimental and participatory and to make the least possible demands on already weak institutional capacity To a large extent, the failure of public training institutions to reorient their activities in favour of the poor is part of a wider political problem. In particular, pro-poor training reforms will invariably threaten powerful vested interests - both those of capital and organised labour in the formal sector - and the state itself. Thus, it is rather ironic that conventional tripartism between employer and worker organisations and the state, which was originally introduced as a progressive, social democratic governance arrangement, has become a major obstacle preventing the poor gaining an effective voice in VET systems in many developing countries.

7.2.1 A pro-poor training strategy What exactly are the main features of a 'pro-poor training strategy'? This is a strikingly simple and obvious question, but the discussion about 'training for the poor' has been mainly preoccupied with the effectiveness of specific training interventions 'on the ground', particularly in relation to the provision of credit and other forms of assistance (see Box 12). Just why so little attention has been devoted to targeted reforms of the training system itself so that training provision is more inclusive of the poor is an interesting issue in its own right. As was discussed earlier, this neglect can, at least in part, be explained by superordinate concerns with meeting the training needs of formal sector enterprises and the almost universal crisis of confidence about the actual and potential role of training in poverty reduction. Current debates about the reform of national training systems are excessively preoccupied with how the 'higher skills' needed to achieve international competitiveness in a rapidly globalising world economy should be provided. There is an urgent need, therefore, for a more balanced and serious dialogue about the provision of (lower) skills for the poor. The ILO needs to take the lead in initiating this process of dialogue among all key stakeholders.

The overall objective of a pro-poor training strategy is to ensure that training needs of the poor are met in an equitable and effective manner. There are, therefore, two sets of issues that must be addressed namely, overall resource availability and the development of the training system itself. Sufficient resources need to be made available that ensure that skill development among the poor is given the priority attention that it deserves. This training needs, therefore, to be mainstreamed in poverty reduction programmes and, more widely, in pro-poor development strategies. Equally important, a coherent, well articulated training system needs to be developed which ensures that resources that are made available are used efficiently and effectively. The main functional components of such a system are the governance, organisation, planning, funding, and actual delivery of training services to targeted groups of the poor and the disadvantaged.

To be effective, all training systems must be demand-driven. How training demands are articulated is, therefore, of paramount importance. Appropriate institutional structures have to be created that ensure that decisions about the control and utilisation of training resources are made not by the suppliers of training services, as traditionally has been the case, but by end users themselves. In the case of the poor, shifting the locus of control and decision-making in this way amounts to a radical change from past practices. In most countries, it can only be achieved as part of a much wider process of development that is based on local economic development initiatives and with poverty reduction as the top priority.

In broad terms, a pro-poor training strategy should be designed in accordance with the following principles:

· In order to improve their livelihoods on a sustainable basis, the poor need both improved skills and more resources in the context of an enabling economic environment.

· Governments must normally take primary responsibility for funding skills development for the poor while enterprises and individuals who are able to pay for training should be required to do so.

· The planning and funding of training by the state should be clearly separated from the provision of training services by public sector training institutions · Training services must be closely integrated with local economic development. Consequently, primary responsibility for the identification of training needs for the poor should be devolved to community-based and other local organisations which also have control over other public resources made available to meet priority needs.

· Wherever possible, effective training markets need to be created by establishing a level playing field on which all suppliers, both public and private, can compete.

· Training should be delivered by a strongly motivated cadre of high level personnel who have the special skills needed for small enterprise and self-employment promotion.

· Business, self-employment and entrepreneurship concepts need to be closely integrated into training activities.

· Training programmes must be carefully targeted both with respect to particular groups of the poor and their particular skills development needs. As a general rule, specific training should be provided only where the required skills are a "key missing ingredient" for the development of the enterprise as a whole.

EMPLOYMENT AND TRAINING PAPERS 43 Learning to change: Skills development among the economically vulnerable and socially excluded in developing countries Paul Bennell Employment and Training Department International Labour Office Geneva First published 1999 To learn more about this author, visit International Labour Organization's Website.

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