the skill crisis assessment tomorrow conference bangalore october 10, 2007
TRANSCRIPT
The Skill Crisis
Assessment Tomorrow ConferenceBangalore
October 10, 2007
•Agony and Ecstasy
• India’s labour markets– Labour force and work force almost equalized– Misplaced Focus of education/ skills regime; Input rather than outcomes– Unemployability bigger problem than unemployment
•Einsteins exam– Only throwing money at the problem won’t solve it– Crisis and Tragedy; economic equivalent of a right to vote
Background
India’s labour market
Context
Demographics
Lopsided GDP
Unorganized Sector
Youthification
Employment elasticity;
labour saving bias
LowProductivity
Inability to afford social
security
Poor HRD Regime
India
Demand/ Supply Mismatch
High Drop out
Low penetration of
higher education
High variability within
qualifications
Unemployment highest among
graduates/ diploma holders
Low literacyLow returns to
education
What is the Urgency for Skill reform?
India
Unviable agriculture
Demographics
Employee Productivity
High forced self-
employment
Rising Inequality
Unemployability; working poor
Inflation; salaries, titles, responsibility
The Reform Agenda
Skills
Review labour laws that hinder learning while earning/ doing
Link financing to outcomes
Separate financing from delivery
Separate Repair from Prepare
Regulatory re-architecture
Vocational Training in India
•Missing skills– Functional/ Industry specific– English/ Communication– Soft Skills– Basic Computers
•3 kind of unemployability– Last Mile 6 months– Interventional 12 months– Structural 24 months
•Private Ecosystem– Only for last mile repair– Three financing risks– Manage; entry gate, exit gate, cost, co-pay, employer reimbursement
Closing Thoughts
•India; WSJ in 1994– But Indian journey far from over– Only fixed sins of commission not ommission– Skill deficit is worse than infrastructure deficit
•Labour vs. Education/ Skill reform– Mancur Olson; distributional coalitions– Complex change process; planning commission, CNBC– Not blue vs. white but farm vs. non-farm– Scratches on our minds; Harold Isaacs
Closing Thoughts
•Role of State
– Private ecosystem can complement but never substitute– Repair pipeline will run dry if prepare not fixed– Money without change will be wasted; leaky pipes
• India; tryst with destiny– Unique time in India– But equality of opportunity? 300 million– Only giving our youth skills will put poverty in the museum it belongs
The Skill Crisis
Assessment Tomorrow ConferenceBangalore
October 10, 2007