76431 Skills for Solomon Islands: NHRDTP Opening new opportunities The National Human Resource Development and Training Plan (NHRDTP) Meeting the needs of Solomon Islands’ growing and youthful workforce, the NHRDTP serves as a national skills strategy framework supporting labour supply in Solomon Islands to better meet the demands of employers both at home and abroad. A serious skills deficit in Solomon Islands constrains its people from taking advantage of the economic opportunities available to them. Firms report that if they could find employees with the right skills they could add over 50 percent more jobs. Yet only about 20 percent of 15–24 year old Solomon Islanders are employed,1 while over 40 percent of youth are inactive.2 The working age population will increase by 30 percent in the next decade, and seven out of every ten Solomon Islanders are under 29.3 While constraints on economic growth are broader than skills alone, new growth opportunities will be accessible for more Solomon Islanders if the skills needed to explore them are built in the growing youthful population. Solomon Islanders recognise the skills challenge and have initiated important policies and programmes to address this constraint on growth. Actions across the full range of life transitions from early childhood to labour force matching are needed to close the skills gap. The Solomon Islands Government (SIG) can build on current initiatives, turn concepts into implementation and action, and develop new partnerships across sectors that create opportunities benefiting rural and women Solomon Islanders, and plan for further growth opportunities and demand for labour overseas.4 This Informal Briefing Note is extracted from the World Bank report, Skills for Solomon Islands: Opening New Opportunities, Stephen Close, World Bank Sydney, October 2012. Please see the full report for full references and copyright information. 1 Based on the measure in the 2006 HIES including those ‘Not working’ AND ‘actively looking for employment’ (including subsistence activities). However, figures vary greatly as per discussion (page 10 of full report). 2 ‘Inactive in the labour market’ is defined as those who are not in school, not working, and not looking for a job. This includes the truly inactive, those active in non- market activities, and other reasons. 3 UNDP and Pacific Islands Forum Secretariat, Urban Youth in the Pacific report, 2008. 4 World Bank, Remittances Data, 2011. 1 Skills for Solomon Islands: NHRDTP The goal of the NHRDTP is that “Sufficient Solomon Islanders with the required skills and attitudes are available to satisfy local and international labour market demand.� The objective is “To ensure that the education and training system supports economic and social development by systematically meeting the needs and requirements of the local and international labour markets�. The NHRDTP approach is part of a transition from manpower planning to flexible skills strategising. Previously, manpower planning was undertaken to prevent worker shortages and expand economic growth. However the approach assumes an inflexible labour market and stable economic and technological structures in which precise manpower numbers can be calculated. It also assumes governments can ‘pick winners’ among industries. Few countries have done this successfully. Today’s economy is one of rapid change. It is more difficult to predict the rapidly shifting needs of private sector demand.5 It is therefore important instead to complement broad skills planning with flexible, responsive, Photo: Annette Leith, World Bank. demand-led frameworks that quickly and accurately transmit market signals to people seeking to build their skills, such as the area, quality and configuration of technical competencies needed The NHRDTP supports private sector involvement in planning, to gain employment. employer-based training, and preparation for international The NHRDTP is a strategic response to the mismatch labour migration. Alternative pathways are a priority for between skills supplied by households in Solomon Islands employment and production skills for those outside formal and current demand from employers, and focuses on education and training, including community-based, enterprise- demand, private-sector participation, implementation- based and ‘second chance’ education. A priority is the reform of readiness, and use of existing resources.6 It provides practices which reduce, restrict or disincentivise the demand for policy directions to reconfigure the training supply system local labour, or the acquisition or application of skills. into a demand-responsive system, in which decisions on The NHRDTP maximises inputs and services from existing education and training, such as budget, policies, programmes, ministries, project groups, stakeholders and service organisations. curricula, and training, are driven by medium and long-term The NHRDTP has the commitment and participation of a range development priorities. of SIG agencies, and was approved by the Cabinet Ministers of The NHRDTP adds analysis and recommendations particularly Solomon Islands in February 2013. It still requires strong private for building job-relevant skills, supporting entrepreneurship sector participation, and full implementation by stakeholders and innovation, and in particular to support the labour market to start turning the supply of labour to meet demand. In to better match supply with demand. National planners need implementing the NHRDTP, the Ministry of Development to address the broad system in which training takes place: in Planning and Aid Coordination (MDPAC) has a central formal and non-formal training institutions and work places. coordinating role with multiple stakeholders, and the need for Accreditation and other systems need to be further developed strong private sector participation. The NHRDTP also needs to be and implemented to ensure the quality and relevance of coordinated with the ‘National Advisory Board for Technical and education and training provided formally or informally Vocational Education and Training’ (NABVET) concept proposed (including on-the-job apprenticeships). as part of EU support to Technical and Vocational Education and Training (TVET).7 5 Wang, Y, Education in a changing world: flexibility, skills, and employability, World Bank, 2012. 6 The NHRDTP was developed in response to a request from the Solomon Islands Government (SIG). It built on the findings and recommendations of an earlier AusAID, NZAID and World Bank-supported ‘Study for a National Skills Training Plan’ advice to SIG. These recommendations were used as the basis for the establishment of a National Human Resource Development & Training Council and the commissioning of the plan development. The NHRDTP report was prepared in collaboration by a team of the Social Sector Division of the Ministry of Development Planning and Aid Coordination, facilitated by technical advisor Alan Male. Its findings were consulted on in two workshops held in Honiara, Solomon Islands, during 2010 and 2011, and among members of the interim NHRDTP working group. The final NHRDTP report was provided to the members of the working group in May 2011. The NHRDTP was endorsed by the Cabinet Ministers of the Solomon Islands Government in February 2013. 7 EU, Draft Concept Paper for NABVET, 2012. 2 3. Thirdly, key mechanisms and actions are proposed to make the education and training system more responsive to labour demand. This includes defining standards for training based on skills’ outcomes achieved, not only length of training, with industry-led definition of outcome descriptors and alignment of assessment systems. A post-scholarship transition programme could facilitate scholarship holders into employment. Continued curriculum reform and development of a National Qualifications Framework (NQF) can help integrate the ‘soft skills’ that employers say they need. Supplementing training courses with practical demonstration or recognition of prior learning supports clear definition of outcome standards. Quality assurance systems for all government/donor-funded post-school trainings can ensure compliance with standards. A student loan scheme to finance study or targeted grants for poor students would help expand access and opportunities to those Holy Cross literacy school in Honiara, with a class of intermediate level currently disadvantaged. English students. Photo: Stephen Close, World Bank. Improved scholarship support and supervision systems There are five key components of would ensure that Solomon Islands’ major investment in tertiary scholarships leads to better economic and the NHRDTP employment outcomes. Locally-based tertiary training by University of South Pacific (USP) and University of 1. Firstly, strengthening cross-sector planning and Papua New Guinea (UPNG) will also help widen access coordination includes establishment of the National Human and reduce costs of training. Purchasing and competitive Resource Development and Training Council (NHRDTC) as tendering arrangements by ministries and donors from the advisory body analysing demand and recommending public and private training providers would help shift human resource development priorities. focus from investment in fixed infrastructure and staff 2. Secondly, developing an evidence-based system to (input costs) toward increased supply efficiency, reduced identify priority skill development areas that can be met cost, and improved outcomes. through local education and training and scholarships. Workplace-based training would support on-going skills Development of information collection and analysis acquisition even when workers are not able to return to systems would include all economic sectors, public and institutional training, and at lower cost. Policy options private, international, national and provincial, to provide a would be considered to encourage or require employers coherent, reliable basis for the identification of priorities. to provide workplace training or pay a training levy as Much of the data and information resources already exist an alternative. Pathways for semi-formal and non-formal in Solomon Islands agencies, and could be supported by training would include more people in skills recognition, specialist technical expertise and/or current ILO support and motivate acquisition of relevant skills, including for a Labour Market Information System.8 Once the through mechanisms within the NQF for achievement to NHRDTC identifies priorities through a transparent process be recognised and progress scaffolded for non-formal and and they are endorsed by SIG, the NHRDTC would monitor second chance education. Importantly, such programmes responsiveness of training supplied by providers. would integrate substantive national efforts to increase functional literacy for those who have not gained it. 8 ILO, Initiatives on Youth Employment in the Pacific, 2010. 3 Skills for Solomon Islands: NHRDTP 4. Fourth is developing enterprise and skills to improve 5. Fifth, identifying and developing labour opportunities livelihoods in a context of limited formal job creation. overseas, matching skills supply with demand, This recognises the need for entrepreneurial workers, facilitating labour mobility and job matching at home and the need for labour force participants to participate and overseas. Implementing the mechanisms identified productively in self-employment and the informal sector. in the NHRDTP will support the orientation of skills supply Enterprise skills could be included in education and training systems to demand through improved information flow curricula and qualifications, and relevant work placements from the labour market. Encouraging labour migration expanded with private sector consultation. Schools and supported by skills development is a priority. In 2010, TVET institutions could expand school-to-work transition Solomon Islands derived only 0.3 percent of GDP from preparation programmes to include attitudes and emigrant remittances, compared to 20–40 percent for behaviours. Inclusion of non-formal competency-based some smaller island states.9 Expanding this opportunity for qualifications would increase the pathways to gain skills. growth and welfare requires: removing barriers to Solomon A National Skills Competition could promote occupational Islanders accessing foreign labour markets; improving the skills, choices and innovation. Development of the right match of skills provision and foreign market demands; funding system formula would incentivise learning expanding labour sending coordination capacity; and opportunities for women. Rural area approaches including integrating market access arrangements within regional a feasibility study of livelihood skills programmes at village trade agreements. Increasing migration opportunities for level, such as community-identified training, mobile TVET Solomon Islanders are key contributions which Australian, delivery, and links to RTCs and community-based training New Zealand and other governments could make. centres, could expand education opportunities for the The NHRDTP also prioritises actions to increase access rural majority, enabling them to meet skills gaps at home and participation by women in education, training, and or move to towns bringing job-relevant skills. employment. Many women are currently involved in traditional activities and the subsistence economy. The NHRDTP prioritises the participation of women in training in skills to increase productivity and enhance rural, subsistence and non-formal livelihoods. A way to achieve this is through the NHRDTP’s proposed incentives for women to participate in higher levels of formal education and training, particularly in non-traditional occupations. A demand- oriented human resource development and training system would include a funding formula that incentivises learning opportunities, and that would aim to increase the numbers of women participating in literacy courses, TVET courses, and enterprise-related courses. This would increase and motivate providers to seek greater enrolment by women.10 The NHRTDP was approved by the Cabinet of Solomon Islands in 2013. Early, committed and participatory prioritisation and implementation of its actions will make a major contribution to addressing Solomon Islands’ skills mismatch, and to expanding economic opportunities for Solomon Islanders at home and overseas. 9 World Bank, Remittances Data, 2011. 10 SIG, NHRDTP, 2011. 4