Good Sri Lanka Skill Development Project: Economic Analysis Essay Example

Introduction

The World Bank has approved a USD 101.5 million skill development project for Sri Lanka ("World Bank approves $101.5 million to Sri Lanka"). The project is aimed, according to mandate, is aimed to raise skill portfolio among young Sri Lankans, aged between 15 and 24, who are a particularly vulnerable age group as regards employability and employment rates. The World-Bank-funded project supports Skills Sector Development Program (SSDP) set by Sri Lankan Government as part of a comprehensive investment strategy between 2014 and 2016. According to project officials and Francoise Clottes, World Bank Country Director for Sri Lanka and the Maldives, Sri Lankan younger workforce faces challenge of skill development, notwithstanding a good educational system deemed most advanced in South Asia. Through multiple partnerships and collaborations, planned support for Sri Lankan Government aims to expand supply of skilled and qualified workers. Integral to support efforts, planned skill development project supports improved governance and management of skill development sector as well as access to quality development programs. The project is structured into two components: (1) Program Support for SSDP, and (2) Innovation, Results Monitoring, and Capacity Building. The program is conducted, mainly, by Ministry of Youth Affairs and Skills Development. Broader implications and program's anticipated benefits require a deeper analysis.

Economic Analysis

International aid and economic development is a long-standing and an in-progress issue for developing countries. Sri Lanka is one developing country whose share of international development and aid – particularly from World Bank – and is historical. Conventionally, Sri Lanka has received World-Bank-funded aid for projects aimed at macroeconomic platforms. The planned project is, in contrast, different. Interesting, World Bank's skill development project is one which aims to operationalize at an economic platform lower than macroeconomic one. According to mandated goals, planned projects highlight an area much underrepresented in actual implementation of macroeconomic projects namely, workforce sill development. Paradoxically, past international projects focused on major economic aspects for developing countries, including Sri Lanka, when, in fact, comprehensive economic development and growth rely, above all, on skilled and qualified workforce for more added-value work inputs and further leverage in longer range. Accordingly, a skill development project – funded by World Bank and implemented by Sri Lankan Government – aimed at a particularly vulnerable age segment comes as a welcome development not only for intended skill development programs but also, probably more significantly, for a notable change in international development orientation.
The new project is, moreover, projected to change workplace practices and employment strategies by enhancing workforce skill portfolio. Indeed, based on empirical research conducted for a sample of 487 employees in domestic and foreign‐invested firms in Sri Lanka (Chandrakumara), national culture as well as corporate culture are shown to empower and raise skill transferability for employees. Consequently, by implementing World Bank's intended project, Sri Lanka is set for path of national workplace culture change by which employees – particularly ones for whom planned project is set – and employers alike better understand employability and employment needs, let alone closing gaps in understanding work requirements by employers and potential employees alike.
Further, against a backdrop of high unemployment rate among age segment 15-24, potential young employees are inclined to a pattern commonly referred to in literature as "informalization" (Heintz and Pollin). That is, as employability and employment options in formal, regulated labor market decrease, potential employees, particularly ones vulnerable to unfair employment conditions (only if hired), find options in informal labor market, unregulated by national employment policies or laws, and hence informalization. This is a pattern which is not only common but is characterized, most of all, of being involuntary. Constrained by limited options, younger potential workers face a situation of being unemployed (and hence socially stigmatized) or being employed, informally, and hence are subject to unfair employment conditions. Consequently, by investing skill portfolio of younger potential workers, planned project is projected to not only offer participants development options but also, more significantly, to open up more options for employment as more developed workers are better able to decide independently work options and hence create professional paths which are both fulfilling and sustainable in long run.
Conclusion

Works Cited

Chandrakumara, Anil. "Work orientation as an element of national culture and its impact on HRM policy-practice design choices: Lessons from Sri Lanka."  International Journal of Manpower 25.6 (2004): 564 – 589. Emerlad Insight. Web. 24 Apr. 2015.
Heintz, James and Robert Pollin. "Informalization, Economic Growth and the Challenge of Creating Viable Labor Standards in Developing Countries." PERI Working Paper 60. Social Science Research Network. Jun. 2003. Web. 24 Apr. 2015.  
"World Bank approves $101.5 million to Sri Lanka." World Bank. The World Bank Group, 20 Jn. 2014. Web. 24 Apr. 2015.