Reducing Poverty by Promoting Employment of Youth and Other Vulnerable Groups in the Informal Economy of Central Asia and Caucasus ILO Sub-regional Office for Eastern Europe and Central Asia EMP/STRAT, COOP, IFP/SKILLS, SFU, GENPROM, IFP SEED, INTEGRATION, ITC Turin March 2004 Geneva

Geographical coverage of DFID Project 4 countries:2 Caucasus 2 Central Asia AzerbaijanKazakhstan GeorgiaKyrgyzstan

2.Linkages to international development frameworks and initiatives Azerbaijan: PRSP (SPPRED) Georgia: PRSP Kyrgyzstan: CDF (until 2010) and PRSP ( , ) Kazakhstan: National PRP ( ), and “Kazakhstan 2030”

3.“Vehicles”: National policy initiatives a. National Employment Strategies (Azerbaijan, Kyrgyzstan, Kazakhstan) Azerbaijan: National Employment Strategy, followed by National Action Plan (2004) Kyrgyzstan: National Employment Concept, 2003, followed by National Employment Programme (2004) Kazakhstan: National Employment Programme (2004) b. Local Economic Development Strategies (Kazakhstan, Georgia) Kazakhstan: Almaty region (Taldykorgan), Karaganda region (DWPP) Georgia: Borjomi region

2.Target groups Youth and Other Vulnerable Groups in the Informal Economy School leavers and other youth, refugees and IDP’s, workers in the informal sector

Output 1.1 National employment strategies with special focus on youth employment embedded in national PRSP’s formulated and accepted by national authorities Activities i Assessment of current employment and labour market situation ii Preparing background studies and research on the situation and labour market attachment of target groups iii Working with national institutions to increase their analytical capacities iv Carrying out broad consultations with social partners and other stakeholders v Assisting the Government and constituents in the preparation of National Employment Strategies

Output 1.2 Country becomes a Youth Employment Network Champion Country Activities i Undertaking stakeholders’ analysis ii Providing assistance in creation of national forum on youth employment issues with the involvement of youth organisations, social partners, other key stakeholders iii Providing assistance in the expansion of social dialogue and strengthening of social dialogue mechanism as a consultation forum for the youth employment issues iv Preparing concrete measures of Youth Employment strategy v Including the Youth Employment Strategies into NES vi Facilitating broad consultative process in the country on the issues of youth employment vii Co-ordinating involvement of YEN partners (UN and WB) and other international agencies

Output 1.3 Instruments produced for monitoring and evaluating decent work in the informal economy, labour market information for the informal economy improved Activities i Carrying out Decent Work Indicators Survey with the State Statistical Offices as a special module within existing Labour Force Survey ii Carrying out “School-to-Work Transition” Survey

Output 1.4 Increased capacity of national authorities to analyse current employment and labour market situation for the purposes of policy planning and evaluation Activities i Organising a core group of experts among the staff of the State Statistical Office, Ministry of Labour, eventually other relevant institutions (Ministry of Economic Development, PRSP Secretariat, etc.) ii Training the core group on analytical and methodological issues

Output 2.1 Territorial diagnoses and institutional mapping for local economic development Activities i Carrying out feasibility studies ii Carrying out interviews iii Carrying out data collection and analysis

Output 2.2 LED structures created (LED Fora or LED Agencies) Activities i Sensitisation and intermediation with local regional and national authorities ii Providing assistance in the expansion of social dialogue and strengthening of social dialogue mechanism as a consultation forum for LED issues iii Preparing analysis and providing advice to existing organisations iv Networking, co-ordination, and training v Setting up twinning relationships with existing ILO LED programmes in other countries of the region (Russia, Estonia, etc.) vi Providing assistance in creation of new structures

Output 2.3 LED strategies formulated in selected regions Activities i Carrying out analysis of local economic opportunities ii Working with the regional LED structures on development of concrete LED strategies

Output 3.1 Training for Rural Economic Empowerment adjusted to local conditions and delivered to vulnerable groups (depending on the assessment of current situation including elements of CBT, SIYB, KAB, etc). Activities i Organising Corporate Community Groups and providing training in group management, Community Enterprise System, and Community Fund System ii Providing skills and entrepreneurship training to target groups iii Developing institutional and staff ability of partners and target groups to utilise the TREE methodology iv Adapting the methodology for the needs of a particular region

Output 3.2 Market access for informal economy workers improved Activities i Data collection and capacity building of local stakeholders to sustain data collection ii Facilitating formation of groups of young people (rural and urban environment) around saving or production activities, or area- based principles iii Training of target groups on economic opportunities identification iv Knowledge base and lessons learned from the GENPROM/SEED project on Improving Market Access for Women in the Informal Economy will be used

Output 3.3 Micro-credit schemes designed by MoL and MoE improved Activities i Carrying out survey on microfinance issues (module attached to existing HBS or existing UNDP Social Survey (Kazachstan)) ii Providing recommendations to MoL, MoF and Central Bank on monitoring and implementation of micro-credit programmes for vulnerable groups using elements of subsidies from state/local budgets (Kazakhstan) iii Carrying out assessment of previous system of guarantee funds (Georgia) iv Providing recommendations to MoL on achieving sustainable functioning of guarantee funds system (Georgia) v Providing recommendations to MoL on experimental ALMP programmes of start-ups and subsidised job creation based on micro-credit (Georgia)

Output 3.4 Business Development Services provided in pilot regions Activities i Carrying out market studies ii Setting up business database iii Developing business plans for programme participants (youth, women, displaced persons)