ILO Tripartite Meeting of Experts on “ Youth employment in the Arab States ” By: Abdulraouf Taher Amman, April 6-8, 2004

Promoting youth employment through the development of entrepreneurship in the Arab countries

Contents Country Cases (Jordan, Lebanon, UAE) Country Cases (Jordan, Lebanon, UAE) - Background - Legislation / Policy / Practice overview - Macroeconomic policy relevance - Institutional and policy support - Proposed measures and mechanisms Educational / Vocational / Cultural development Educational / Vocational / Cultural development Social development programs Social development programs Role of ILO / UN / World Bank organizations Role of ILO / UN / World Bank organizations Conclusions & Recommendations Conclusions & Recommendations

Rationale SMEs role in economy & job creation SMEs role in economy & job creation HR role is more significant in SMEs HR role is more significant in SMEs People-develop-successful businesses People-develop-successful businesses Successful businesses-create-jobs Successful businesses-create-jobs Entrepreneurship culture development Entrepreneurship culture development Involving youth in development cycle Involving youth in development cycle

Case No. 1 - Jordan Culture characteristics Culture characteristics (conservative / risk averse / resisting change / dependent) Legislation / Policy / Practice overview Legislation / Policy / Practice overview (Non-discriminate investment promotion - JIB) Macroeconomic policy relevance Macroeconomic policy relevance (Conservative fiscal policy = Growth stagnation >> >> Need for privatization to comply with WTO / FTAs >> >> Creating tools to facilitate economic growth)

Jordan – cont. Institutional and policy support Institutional and policy support - Culture / education development INJAZ / e-learning / YEA Mentorship - Entrepreneurship support Incubation / EPC – ERADA / Technical Support Practical Learning - ILO-SYB / IYB - Empretec - YEA Handbook

Jordan – cont. Institutional and policy support – cont. Institutional and policy support – cont. - Access to finance Microfinance programs Loan Guarantee programs Corporate Leasing Venture Capital Funds (IDB / Arab Bank) Assets procurement loans (JIB – IPU)

Jordan – cont. Proposed measures and mechanisms Proposed measures and mechanisms - Financing (Special term loans / VC / Leasing) - Taxation (Simplification / Consolidation / Classification) - Business linkages facilitation - Incubation / BDS - One-Stop Support - National awards

Case No. 2 - Lebanon Culture characteristics Culture characteristics (Open / entrepreneurial / independent / communicative) * Child labor / * Women unemployment Legislation / Policy / Practice overview Legislation / Policy / Practice overview (Non-discriminate investment promotion - IDAL) Macroeconomic policy relevance Macroeconomic policy relevance (Controlled growth indicators / Accelerated development plans >> >> Improved GDP linked with increased national debt >> >> Need for privatization of public services >> >> Creating tools to facilitate SMEs growth)

Lebanon – cont. Institutional and policy support Institutional and policy support - Culture / education development LIRA / Youth employment programs (RMF / UNICEF) - Entrepreneurship support Incubation (Berytech) / UNIDO – IPU / BETZ - Access to finance Loan Guarantee program / Subsidized Loans

Lebanon – cont. Proposed measures and mechanisms Proposed measures and mechanisms - Financing (Special term loans / Microfinance) - Incubation (Sector / Location - specific) - BDS - VT - National awards (LIRA)

Case No. 3 - UAE Culture characteristics Culture characteristics (Open / large-scale development / service oriented) * Demography / * Minimal SME role Legislation / Policy / Practice overview Legislation / Policy / Practice overview (Foreign-oriented investment promotion - DDIA) Macroeconomic policy relevance Macroeconomic policy relevance (Accelerated growth path / Accelerated development plans >> >> Drive towards national entrepreneurship >> >> Creating tools to facilitate SMEs growth)

UAE – cont. Institutional and policy support Institutional and policy support - DDIA – Moh ’ d Bin Rashid est. Access to procurement / capital / BDS / Entrepreneurship - Entrepreneurship support Al Tomooh - Mentorship / B-to-B Networking Riyada

Educational / Vocational / Cultural development Areas of need: Entrepreneurship culture development Entrepreneurship culture development Improved access to modernized VT Improved access to modernized VT Structured mentoring programs Structured mentoring programs Achievement award programs Achievement award programs Educational / VT content for: Educational / VT content for: - Entrepreneurship / communication skills - Matching with market needs / use of technology

Social / youth-oriented development programs Areas of concern: Unfairness in youth employment in terms of age and working conditions Unfairness in youth employment in terms of age and working conditions Deprivation of basic education due to poverty Deprivation of basic education due to poverty Traditional Social and cultural negative attitudes towards youth Traditional Social and cultural negative attitudes towards youth Opportunity restrictions limiting the development of knowledge, creativity, and energy of younger generations Opportunity restrictions limiting the development of knowledge, creativity, and energy of younger generations

Role of ILO / UN / World Bank organizations ILO programs and initiatives: ILO programs and initiatives: - Boosting employment through small enterprise development (SEED) - Young Business International (YBI) - (BYST) - Youth Employment Network (YEN) - Start Your Business / Improve Your Business

Role of ILO / UN / World Bank organizations – cont. ILO programs and initiatives – cont.: R DEFINITION, PURPOSE AND SCOPE 1. DEFINITION, PURPOSE AND SCOPE Definition of SMEs, their employment structures, roles in the economy, objectives from providing support, and perceived scopes of activity within larger economic structures. 2. POLICY AND LEGAL FRAMEWORK 2. POLICY AND LEGAL FRAMEWORK Comprehensive framework should address relevant issues to small business creation and sustainability, employment criteria and regulations, and success facilitation tools.

Role of ILO / UN / World Bank organizations – cont. ILO programs and initiatives – cont.: R DEVELOPMENT OF AN ENTERPRISE CULTURE 3. DEVELOPMENT OF AN ENTERPRISE CULTURE Creating and facilitating cultural change, adaptation and awareness to market needs, and definition of foreseeable roles of small enterprises as economic development promoters. 4.DEVELOPMENT OF AN EFFECTIVE SERVICE INFRASTRUCTURE 4.DEVELOPMENT OF AN EFFECTIVE SERVICE INFRASTRUCTURE Comprehensive services facilitating establishment, development, and enhancement of small businesses. This includes legal and regulatory framework and socio-economic aspects

Role of ILO / UN / World Bank organizations – cont. ILO programs and initiatives – cont.: R ROLES OF ORGANIZATIONS OF EMPLOYERS AND WORKERS 5. ROLES OF ORGANIZATIONS OF EMPLOYERS AND WORKERS Facilitating communications between private and public sector counterparts, providing direct support to SMEs and involving them in their structures 6. INTERNATIONAL COOPERATION 6. INTERNATIONAL COOPERATION International exchange of information and knowledge bases, and establishment of cross-correlation between international programs with similar agendas

Conclusions & Recommendations Awareness: Awareness: National campaigns on culture / skills / services Aligned Educational / training / mentoring programs Finance: Finance: Establishment of financing schemes especially designed to address Entrepreneurs / SMEs needs (Grace period / term / collateral / rate) Facilitate VC / Leasing / Loan Guarantee programs Introduce seed capital programs based on training qualification plan Develop credit rating programs Legislation: Legislation: Taxation (Simplification / Consolidation / Classification) Implement IPR / anti-trust regulations

Conclusions & Recommendations – cont. Incubation / BDS: Incubation / BDS: Sector-specific / geographical concerns / services provision Interconnected Training programs – Monitoring – National Awards Develop B-to-B networking Education / VT systems development: Education / VT systems development: Address Entrepreneurship culture development Develop programs for market needs / technology / communication Develop SME - VC / SME – education centers partnerships BSOs: BSOs: Invest in developing / utilizing independent national knowledge base Involve international experts / business leaders