TVET & Socio-Economic Development in Bangladesh Steps Challenges & Ways Forward

1. TVET & SOCIO-ECONOMIC DEVELOPMENT IN BANGLADESH:
STEPS, CHALLENGES & WAYS FORWARD
Dr. Atiur Rahman
Professor, Dhaka University
Former Governor, Bangladesh Bank
A keynote address given at the International Conference on Skills for the Future World of Work and TVET for Global
Competitiveness, 27-29 July 2017, Dhaka

2. TALKING POINTS
• Background
• Overview of TVET in Bangladesh
• Challenges
• Ways Forward

3. BACKGROUND

4. BANGLADESH AT THE CROSS-ROADS
• Undergoing amazing
developmental transitions
since independence despite
many challenges.
• Some expert considered it to
be a ‘basket case’ back then.
Yet today it is a lower middle
income country of 160 million
people in the midst of critical
transformations.
Rapid Urbanization
Growing Industrial
Sector
Demographic Dividend
Extensive Digitization

5. REWARDING OUTCOMES FROM INCLUSIVE POLICIES
Relative to the regional peers, Bangladesh maintained macroeconomic stability, with lowest
price and output volatility, weathering the post-2008 external shocks well.
Growth performance, (in %, 1995-2015) Price stability (in %, 1995-2015)
6.8
5.5
4.3
5.7
2.1
2.6
2.0
0.6
India Sri Lanka Pakistan Bangladesh
Average Growth Volatility 9.4
8.6
7.3
6.4
4.5
3.8
2.9 2.4
Sri Lanka Pakistan India Bangladesh
Average Inflation Inflation Volatility
Source: Bangladesh Bank Source: Bangladesh Bank

6. REWARDING OUTCOMES FROM INCLUSIVE POLICIES
(CONTD.)
Growth from labor-intensive manufacturing, agriculture, and remittance has been
inclusive, supporting poverty reduction and gains in HDIs.
92% 87%
73%
52% 57% 50% 49% 40% 32% 25%
1970 1975 1980 1985 1990 1995 2000 2005 2010 2015
Reduction in poverty from 1970 to 2015
Source: Bangladesh Bank

7. REWARDING OUTCOMES FROM INCLUSIVE POLICIES
(CONTD.)
Index of real wages from 1993-94 to 2008-09 (1969-70=100)
0
50
100
150
200
250
300
1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
Overall
Manufacturing
Construction
Agriculture
Source: Bangladesh Economic Review 2010
While the overall real wage index has reached from over 100 to over 175, increase in
manufacturing sector real wage index is much higher.

8. BUT, ARE WE CREATING ENOUGH JOBS?
There are three areas to consider-
 Our demographic dividend (possible advantages of the population
structure).
Prevailing employment scenario (employment, underemployment
and unemployment)
Skill level of our labor force.

9. VISUALIZING THE DEMOGRAPHIC DIVIDEND

10. POPULATION STRUCTURE IS IN OUR FAVOR
• Annual growth rate of
population between 2000 &
2013 is 1.47%.
• The growth rate in urban
areas (3.59%) is much higher
than in rural areas (0.78%)
• Over two-thirds of our
population belong to the
working age group
(regardless of gender and
location)
127.5
137.3
148.7 154.2
74.2
84.6
95.6
106.3
2000 2006 2010 2013
Total Population (million)
Working Age Population (million)
Source: Labor Force Survey, Various years, BBS

11. WE HAVE A YOUTHFUL WORKFORCE
Source: Labor Force Survey, 2010, BBS
48.4%
75.9%
92.1%
97.3% 98.3% 98.1% 97.4% 94.1%
88.5%
77.2%
57.9%
29.4%
41.0% 44.7% 46.6% 47.7% 46.2% 47.6%
10.3% 11.2% 6.6% 8.3%
15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65+
Male Female
Age-specific labor force participation rates (%) by gender in 2010

12. EMPLOYMENT SITUATION

13. SHIFTING FROM AGRICULTURE TO MANUFACTURING
Sector composition of employment (%) by year
50.8% 45.8% 47.6% 45.1%
9.6%
11.0% 12.5% 16.4%
2.8% 3.2%
4.8% 3.7%
36.1% 37.4%
35.4% 34.1%
2000 2006 2010 2013
Agriculture Manufacturing Construction Services
Source: Labor Force Survey, Various years, BBS
During these 13 years,
share of agriculture in the
total employment has
decreased by over 5
percent. The space left by
agriculture has been
occupied mainly by the
manufacturing sector.

14. INFORMAL EMPLOYMENT & UNDEREMPLOYMENT
50.0%
55.0%
60.0%
65.0%
70.0%
75.0%
80.0%
85.0%
90.0%
95.0%
2003 2006 2010 2013
Total Male Female
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
2000 2006 2010 2013*
National Male Female Rural Urban
Employment in informal sector Underemployment
Source: Labor Force Survey, Various years, BBS

15. DYNAMICS BETWEEN EDUCATION & EMPLOYMENT
Source: Labor Force Survey, 2013, BBS
Unemployment rate (%) in 2013, by gender and level of education
13.5
8.5
8.4
11.7
7.9
16.2
8.7
12
1.9
11
18.2
8.8
9.8
7
7.4
13.2
8.7
17.3
0.7
8.8
Male Female

16. EDUCATION OF THE WORKFORCE

17. VERY FEW HAVE TECHNICAL DIPLOMAS
Labor force by education, 2010
Source: Labor Force Survey, 2010, BBS
No
Education
40%
Class I-V
23%
Class VI-VIII
14%
Class IX-X
9%
SSC, HSC or
equivalent
10%
Higher
4%
55.3%
36.8%
5.3%
2.6%
54.3%
37.0%
4.3%
4.3%
55%
36%
5%
5%
Total Male Female
Higher education here includes technical diploma holders.
Disaggregation of this group is shown in the bar chart on
the right
Composition of labor force with
above HSC qualification, 2010

18. Top 6 employment creating sectors of the country still rely heavily on unskilled labor. This
needs to change to attain the medium and long-term macroeconomic objectives.
Sector Number
employed (in
thousand)
Share in total
employment
(%)
Share of
Unskilled
Labor (%)
Share of
Informal
Employment
(%)
Construction 2,144 3.69% 92.8% 92.2%
Transportation, storage & communication 3,745 6.45% 98.7% 84.0%
Other service activities 3,832 6.60% 82.4% 70.4%
Textile & wearing apparel 4,847 8.35% 96.8% 93.2%
Trade, hotel & restaurants 8,393 14.45% 96.7% 79.4%
Agriculture, forestry & fishing 26,190 45.10% 100.0% 97.8%
PREVALENCE OF UNSKILLED LABOR
Source: Labor Force Survey, 2013, BBS

19. RELEVANCE OF TVET
TVET needed to ensure
maximum benefit from youthful
population structure
More jobs will be created in the
urban sectors. TVET needed to
prepare the labor force to cope
with rising urbanization.
More women now are willing to
participate in the workforce.
TVET is the key to create the
needed opportunities for them.
Formalization of the informal
sector is a must. But lack of
skills is the challenge. TVET
needed to address this.

20. OVERVIEW OF TVET IN BANGLADESH

21. POLICY IMPETUS
• 7th Five Year Plan (2016-2020): Gender equity in TVET, new
technical/vocational courses at school & college level, double shift in
technical schools, 100 new technical schools at upazila level, emphasis on
industry based training & workforce development.
• Vision 2021: Developing skilled manpower for both home & abroad.
• Education Policy 2010: Expansion, access and vertical mobility of TVET
prioritized
• National Skills Development Policy: focuses on a demand-oriented
strategy and looks for direct connection with the industry owners and
overseas employers.

22. STRUCTURE OF TVET
Public and
private
polytechnic
institutes
offer four-
year post-
secondary
engineering
diploma
courses.
Diploma
SSC
(Vocational)
& HSC
(Vocational).
SSC
(Vocational)
is equivalent
to general
SSC.
Certificate
360-hour
skills training
course.
Applicant
has to pass
at least
grade VIII to
get enrolled
in this
program.
Basic
384 diploma
institutes covering
42 technological
areas. 50%
student from SSC
(Vocational). 25%
from general SSC.
25% from SSC
Dakhil.

23. TVET PROVIDERS
• 19 Ministries of the Government along with various departments are
responsible for numerous skills development programs.
• Major Govt. Actors:
• National Skills Development Council (NSDC)
• Ministry of Education (MoE)
• Bangladesh Technical Education Board (BTEB)
• Directorate of Technical Education
• Bureau of Manpower, Employment and Training (BMET)
• Private training providers sustain their operations by charging fees to
students, while NGOs that run skills development programs rely on
financial assistance from development partners

24. TVET PROVIDERS
• A total of 309 polytechnic and mono-technic institutes are run
commercially.
• Many of these private training institutes run short training courses for
students who intend to go abroad.
• Industry-based organizations
• BGMEA Institute of Fashion Technology (BIFT)
• Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA)
• National Institute of Textile Training Research and Design (NITTARD)
• Chittagong Skills Development Center (CSDC)
• DCCI Business Institute (DBI)

25. SOME DEVELOPMENT PARTNER SUPPORTED TVET
PROJECTS
• TVET Reform Project: Focused on market oriented flexible TVET
system.
• Skills Development Project (SDP): Focused on ensuring access to
TVET for the poor (who cannot pass the 8th grade).
• Skills & Training Enhancement Program (STEP): Focused on quality
and employability of trainees, especially those from disadvantaged
groups.
• Skills for Employment Investment Program (SEIP): Long-term and
comprehensive approach to skills development.

26. CHALLENGES

27. WHERE DO WE LACK?
Governance Challenges
• Policies & plans not consistent with market, cost implications not
considered, lack of effective coordination etc.
Gap between Demand & Supply
• There are not enough TVET institutions. Existing ones often do not
offer programs most suited for the current market.
Lack of Participation of the Employers
• Employers are not consulted adequately when developing
curriculum.

28. WHERE DO WE LACK?
Lack of Proper Market Research
• TVET institutions do not have a well-established feedback mechanism
which can help change or offerings.
Responding to Fast Changing Demand
• Training programs run by the TVET institutions are ‘lengthy’ and
‘inflexible’. But demand changes very fast.
Need for Coherence in TVET Curriculum
• There is a disconnect between the quality of graduates produced by
TVET and the market demand on the ground.

29. WAYS FORWARD

30. WAYS FORWARD
• Coherence of the policies related to TVET should be ensured.
• While all the policies and plans intend to ensure greater access to TVET
system, improving the quality has not received equal emphasis.
• Studies should map out both current situation as well as project
future demand (short and medium-term) for TVET.
• Policy decision informed through such studies is sure to be more effective.
• Private sector will be naturally interested to participate in TVET
related policy making. The public actors need to open up further to
capitalize on this interest.

31. WAYS FORWARD
• TVET system must be able adapt to the changing global scenario
(changing skill demand in the global market).
• We should not limit ourselves to low paying jobs abroad.
• Instead of gigantic institutes we have to prefer smaller and more
flexible institutes spread all over the country.
• Refurbishing existing institutes that lack resources and operational
autonomy should be prioritized.
• Mindset must change. We still think desk-based jobs are more
desirable than technical jobs.

32. CONCLUDING REMARKS
TVET can provide us with the opportunity of killing ‘two birds with one
stone’.
It will make our youths ready for the changing job market.
It will ensure a stream of potential workforce for our growing industrial
sector.

33. CONCLUDING REMARKS
“In Europe the society evolves
itself to mould the minds of the
younger generation … and
education system tries to capture
the direction of those minds.”
Rabindranath Tagore, 1398, Volume 13, Goal and
Education, p.696