59407 September 2010 . Number 31 INVESTING IN YOUTH IN THE MENA REGION: LESSONS LEARNED AND THE WAY FORWARD Gloria La Cava, et al. 1 ranging from 18 to 43 percent, with rates higher for young women than young men. In Algeria Introduction: Young people represent a and Morocco unemployment rates rise with significant asset - in economic terms alone, they education levels, but this varies sharply across can contribute to productivity, increased countries. The two key constraints to consumption, and income taxes.2 But youth are employment are insufficient labour demand also an important asset for social change and and skills mismatches due to failures in the innovation. Arab youth see themselves as education system. Investment climate surveys change agents, with young women as likely to note lack of appropriately skilled labour as a be key to future progress as young men.3 key constraint to growth for one-third of Young people constitute well over half of MENA businesses6. MENA's population. Over 30% of MENA's population, 100 million individuals, were The Costs of Youth Exclusion: If proper between 15 and 29 years of age in 2007. This investments are not made in youth there is a can be a demographic opportunity if countries risk that the youth bulge may manifest itself as had a majority of youth enter their productive a drain on growth and society. According to peak while the elderly population still remains recent analysis by the Middle East Youth small. This window of opportunity will remain Initiative, MENA countries' performance in open in MENA for nearly 10 years. In Iraq, reducing youth exclusion has deteriorated in Yemen and West Bank and Gaza, the window recent years and is among the furthest away will be open beyond 2050.4 from the best performers. The cost of youth unemployment for the 11 countries reviewed The Youth Inclusion Challenge: Indicators on was at 2.32 percent of GDP when assuming a the degree to which youth are part of the zero target rate, with the highest costs in development process in their countries are not Morocco (6.86 percent) and West Bank and good. The global average youth unemployment Gaza (6.63 percent).7 rate is 14 percent; in the MENA Region it is 25 percent ­ the highest of any region.5 Youth Lessons learned from global experiences: The unemployment rates vary across the region, most comprehensive global analysis of youth employment initiatives found that those 1 This note was prepared by Gloria La Cava with inputs targeting youth from poor households work from Haneen Ismail Sayed and Iqbal Kaur, and guidance better. 8The three case studies from LAC and from Roberta Gatti, Social Protection Sector Manager the US, illustrate scalable self-standing (MNSHD) and Anna Bjerde, Urban and Social Sector Manager (MNSSD). 2 World Development Report, Development and the Next 6 Generation, World Bank, 2007. Benhassine, N, World Bank Staff, From Privilege to 3 Gallup, Inc. (2009) The Silatech Index: Voices of Young Competition : Unlocking Private Lec growth in the Middle east Arabs and North Africa, 2009. 4 Youth- An Undervalued Asset: Towards a New Agenda in the 7 Jad, Chabaan, The Costs of Youth Exclusion in the Middle Middle East and North Africa, MNSHD and MNSSD, 2007. East, The Middle East Youth Initiative Working Paper N. 7, 5 Middle East Youth Initiative, Meeting the 100 Million Youth The Wolfensohn Center for Development and Dubai School Challenge, The Wolfensohn Center for Development at of Government, May 2008. Brookings and the Dubai School of Government, (2007). 8 Betcherman et al. interventions in support of youth inclusion benefit from mentoring and training for through skills development, job creation, youth business plan preparation. After the selection entrepreneurship, and active participation, all process, they are offered mentoring, training of which are needed in the MENA Region. and internships and can have access to micro- credit. Every year the implementing NGO 1. The Jóvenes Employment Programs for opens up a competition for interested youth. Disadvantaged Youth in Eight Latin American Countries9: The Jóvenes programs offer Impact estimates suggest an increase of 7.8 comprehensive training to unemployed and percentage points in the probability of having a economically disadvantaged youth 16 to 29 business operating and an 8 percent increase on years of age, though targeting focused on 16- to the beneficiaries' average income. Also there 24-year olds (about 70 percent of participants). was an important secondary effect - The demand-driven model has been beneficiaries employed 17.3 percent more customized for Argentina, Chile, Colombia, the workers than the control group. Total Cost per Dominican Republic, Panama, Paraguay, Peru, beneficiary was USD 536. and Venezuela. Private and public institutions contracted through public bidding mechanisms Initial Lessons from MENA Region: There provide training and organize the internships. are multiple state-funded youth employment The Table below provides an overview of the initiatives, as well as small-scale NGO projects benefits in Chile and Argentina: focusing on Arab youth- especially on increasing their employability and entrepreneurship opportunities.11 However (i) they reach a limited number of young beneficiaries, mostly tertiary educated young urban males; (ii) they lack rigorous impact evaluations and analysis of their cost- effectiveness, and hence (iii) provide limited lessons for replication and scaling up. These circumstances have so far limited regional prospects for launching larger-scale youth investments a la Latin America and Africa. Young Micro Entrepreneurs' Qualification The Bank is now aiming to establish a presence Program in Peru10: The Programa de Calificación by piloting innovative programs and learning de Jóvenes Creadores de Microempresas is lessons on the ground. The Jordan and Syria implemented by the Peruvian NGO Colectivo pilots below exemplify this approach. The Integral de Desarrollo to address the significant Morocco Youth Inclusion study is an analytic lack of entrepreneurial skills among the young. approach to address youth unemployment and The program's objective is to provide assistance social exclusion via tailored youth investments. and training in developing business plans and establishing profitable businesses. The target Providing school drop-outs with equivalency population is economically disadvantaged 15 to education, job training and life skills in the 25 year olds, with some entrepreneurial skills Hashemite Kingdom of Jordan: The project or owning a small and/or informal business was initiated by the World Bank through a with less than a year of operation, and in Japan Social Development Fund (JSDF) grant12 targeted localities. During the first phase, youth 11 For an assessment of NGO-run youth employment 9 The WDR 2007, p. 117. Aedo and Nuñez (2001); Aedo and initiatives see Angel-Urdinola, Semlali and Brodman, Non- Pizarro Valdivia (2004); de Moura Castro (1999); Elias and Public Provision of Active Labor Market Programs in Arab others (2004); Inter-American Development Bank (2005); Mediterranean Countries, SP Discussion Paper N. 1005, July and Santiago Consultores Asociados (1999). 2010. 10 12 The Japan Social Development Fund (JSDF) was Olga Susana Puerto, Interventions to support Young workers in LAC: Regional Report for the Youth Employment Inventory, The established in June 2000 by the Government of Japan (GoJ) World Bank (2007). and the World Bank as a united mechanism for providing direct assistance to the poorest and most vulnerable groups September 2010 · Number 31· 2 through the Ministry of Social Development respond to labor markets and the psycho-social and the NGO Questscope to support youth in needs of beneficiaries. earning income in day-jobs while attending evening classes in public schools. Certified The project relies on partnerships between teachers helped youth earn a proficiency vocational institutions and establishes a certificate (10th grade level), leading to network of referral services for marginalized vocational certification. Vocational graduates youth, supporting skills training and also received business management training, employment. Two Private Sector Councils of enhancing future employability and livelihood Employers were formed to hire marginalized options. Other learning elements included youth in Damascus and Aleppo and develop coaching in life, social and coping skills, which the curricula. Vocational training schools and would help young beneficiaries to integrate NGOs receive capacity building on life skills into society.13 and entrepreneurship development, improved vocational training design and implementation, Young participants expressed increased self- and techniques for better case management and confidence and improved relations with family, psychosocial support and upgraded training friends and authority figures. A key outcome of equipment. Participants rely on job matching the program was the development of a "Street services, including counseling and advisory Education" program and its integration into the services and an interactive jobs and skills needs Ministry of Education's 3-Year Alternative database based on employer surveys in Education Curriculum, which supported Damascus and Aleppo. A rigorous impact learning among school dropouts to obtain a evaluation program is in place. 10th grade equivalency certification. 80,000 to 100,000 school dropouts benefitted from the The expected outcomes include (i) enhanced 10th grade certification program to diversify technical and work skills for 10,400 their training and employment opportunities. marginalized youth; ii) 50% of trained youth to In 2007, the Ministry of Education authorized be employed within 8 months of graduation Questscopes Non Formal Education Program as and the remaining 50% to enroll in further the official program to an alternative 10th grade education; (iii) 20% of trained youth to develop certification. This Government-NGO entrepreneurial skills; (iv) Government partnership offered the first certification Vocational schools to start e education/training program for school dropouts. The cost for each services for marginalized youth. child was around USD 350 per year. Morocco Study on Youth Inclusion: The Syria - Improving Employability of objectives are to identify the key factors leading Marginalized Youth through Enhanced to the social and economic exclusion of young Capacity and Local Partnerships: In another people (15 to 29 years), provide an investment JSDF supported intervention, the World Bank roadmap for youth inclusion; and support with awarded a grant to the Syria Trust for data and analysis the national youth strategy, Development for an integrated youth currently being formulated by the Ministry of development project for disadvantaged youth14. Youth and Sports. The survey will present data The objectives are to: (i) Improve employability on youth economic inclusion, community and job placement opportunities; (ii) Deliver participation and active citizenship as well as technical training and work skills in two access to key public services. The survey will governorates and (iii) Build partnerships across highlight under-studied issues such as: labor providers of youth service and develop force participation and intermediation, career capacities of local institutions and NGOs to choices and opportunities, the situation of youth in rural areas, use of free time and of in eligible World Bank group member countries. Since its recreational and learning opportunities start, 278 grants with a total value of $295 million have been complementary to formal education. approved. 13 Questscope International. www.questscope.org Econometric analysis will highlight the 14 relationship between various dimensions of Defined as those out of work for more than 2 years and having less than a 9th grade education. youth exclusion and household backgrounds. September 2010 · Number 31· 3 Financial assistance for a follow-up youth and interventions are developed with critical investment could include the expansion of impact at the community level15, the needed infrastructure for youth services, better delivery results will not materialize. The MENA Region of integrated youth-friendly services at the will continue to support policy reforms in community level, including direct youth to education and labor policy to more directly youth engagement (IT, language, life skills and benefit unemployed graduates, while technical training, and job intermediation increasing focus on investments to address services). Support could also be had for income disadvantaged young males and females, the generating activities (apprenticeships, majority within the 15 to 29 years age group. 16 internships and youth entrepreneurship) and assistance for youth participation in national Investing in Youth in MENA: The increasing and local youth policies. attention of many governments and the League of Arab States indicates that the time is right to Public service programs and Developing Soft advance policy dialogue for adequate youth Skills: Young people in MENA have few investments at the country level and in the opportunities to build soft skills through context of the Arab World Initiative's regional volunteering or community service. A Morocco integration efforts. There is a continued need to government youth survey in 2000 showed only expand the knowledge base - particularly on 15 percent of youth participating in any youth-related data - to many more countries in association activities - including sports. A 2009 the MENA region, through analytic work survey in Egypt by the Population Council had similar to the Morocco youth inclusion study, only 3.3 percent of young males and 1 percent and the upcoming Egypt and Tunisia ones. As of young females in voluntary activities. of FY11, the youth program will aim at scaling Gaining soft skills ­ leadership, the ability to up and launching a new youth-focused lending work independently and in teams, solve operation in at least one country. Specific youth problems and communicate effectively is components will also be developed in important in reducing skills mismatch in the upcoming urban, rural, environmental, and labor market and in promoting constructive skills employment projects. engagement by young people. Youth service programs also serve as a positive alternative to Contact MNA K&L: out of school and unemployed youth. Emmanuel Mbi, Director, MNA Operational Core Participation in service programs empowers Services Unit young people to become active citizens, greatly David Steel, Manager, MNA Development contributes to self-esteem while meeting Effectiveness Unit community needs through volunteer work in Regional Quick Notes Team: public health, conservation, tutoring, etc. Omer Karasapan, Roby Fields, Hafed Al-Ghwell indicating an important area for future and Aliya Jalloh investments. Tel #: (202) 473 8177 MENA K&L Quick Notes: http://www.worldbank.org/mena-quicknotes The need for a Multi-dimensional Approach: The MNA Quick Notes are intended to summarize Although comprehensive assessments of youth lessons learned from MNA and other Bank Knowledge employment and inclusion programs in MENA and Learning activities. The Notes do not necessarily countries are still at early stages, evidence reflect the views of the World Bank, its board or its indicates that government focus and financial member countries. resources have been primarily directed towards job creation for unemployed university graduates. Less educated and underprivileged 15Betcherman, G., M. Godfrey, S. Puerto, F. Rother, and A. youth have received limited attention, both by Stavreska. 2007. "Global Inventory of Interventions to Support Young Workers: Synthesis Report." World Bank, policy-makers and in applied research. Global Washington, DC; Bamfield, Louise. 2007. "The Contribution research and experience shows that single- of Non-formal Learning to Young People's Life Chances." sector policies and interventions offer only A Fabian Society report for the National Youth Agency. partial solutions. Unless a youth-tailored National Youth Agency, Leicester, England. 16 La Cava et. al, Young People in Arab Countries: Promoting approach across multiple sectors is established Opportunities and Participation, MNA Fast Brief, April 2010, September 2010 · Number 31· 4