ICTSD/QUNO Dialogue The Mode 4 Issue and LDCs: Reaping development benefits through building competitive capacities and tackling market access difficulties WMO, Geneva Switzerland 26 February 2009 Facilitating Temporary Labour Mobility in African LDCs: addressing Mode 4 related supply-side constraints

OUTLINE Background Focus of paper, structure and methodology/approach Main messages Conclusion

BACKGROUND Follow up to LDC requests on Mode 4 TOR central concern with building productive capacity Focus on African LDCs* and supply side issues Biggest problem lack of data

FOCUS OF PAPER, STRUCTURE OF PAPER AND APPROACH/METHODLOGY Existing studies tend to focus on the end product – specific trade/non-trade agreements and their related management issues Many cross-cutting issues, hence ‘joined-up policy’ approach Therefore focus of this paper on the skills dimension and the ‘pre’-mode 4/TLM considerations

FOCUS OF PAPER, STRUCTURE OF PAPER AND APPROACH/METHODLOGY Examples of types of issues paper explores: - To what extent are African LDCs are in a position to supply trading partners with temporary low skilled workers? - What are the main policy and institutional constraints on the supply-side? - To what extent is mode 4/TLM recognised in national development plans? How is it addressed regionally? - How can the development impact be maximised and costs minimised? - Are there good practices?

FOCUS OF PAPER, STRUCTURE OF PAPER AND APPROACH/METHODLOGY Structure of paper: - Main features of labour market - Specific skills related challenges - Overview of whether TLM is being used in the skills development context - An assessment of existing regional policy mechanisms - Considerations for a revised Mode 4 request - Recommendations

MAIN MESSAGES: Overall themes Various policy and institutional issues/constraints related to mode 4 supply side need to be addressed for development benefits of market access at trade level to be realised Mode 4/TLM should be embedded in a broader skills development strategy. Therefore TLM should be used as a policy tool for facilitating training, work experience, work values and up-skilling with a view to ensuring consistency with the needs of the sending economy.

MAIN MESSAGES: Skills dimension Existing education and training (formal and non- formal) is not meeting needs of African LDC economies due to weak labour market analysis and lack of overall coherent strategy Little comprehensive assessment of the skills challenge despite skills shortages in a range of areas: – Private sector/business; vocational; agricultural; high end; service related; public sector; also basic and transferable etc

MAIN MESSAGES: TVT Due to the importance of the informal sector and low skilled labour, particular focus on role of TVT. Overview of TVT: lack of practical experience in training programmes; management issues; relevance; poor infrastructure and materials; funding; actors. Some positive TVT initiatives: Rwanda, Gambia, Mozambique, Mauritania, Benin, Senegal, Zambia, Ethiopia.

MAIN MESSAGES: Priority of mode 4/TLM at national level & links to skills Based on PRSPs/DTISs/NDPs for Uganda, Zambia, Senegal, DRC, Mozambique, Rwanda, Tanzania, Benin, Gambia, Guinea, Mali, Malawi and Mauritania - commonalities: job creation/cross cutting issue (social sector); TVT; migration hardly discussed and TLM not mentioned; no overall strategy - contrasts: visions

MAIN MESSAGES: Existing policy and institutional capacity to facilitate mode 4/TLM Policy initiatives at downstream level covering specific aspects Changing landscape: new generation of development cooperation on TLM (eg. Senegal, Cape Verde*) Existing work shows that the most positive TLM arrangements are those which are specific, transparent, take a holistic approach and have shared mutual responsibility by both sending and receiving countries Examples: Philippines, Bangladesh, Pacific region, Abu Dhabi Declaration

MAIN MESSAGES: Regional policy frameworks AU Migration Policy Framework AU Strategy to Revitalise Technical and Vocational Training in Africa AU Framework for Post-conflict Reconstruction and TVT NEPAD, Migration Dialogue for Southern Africa, Education Institutions, Dakar Declaration RECs (COMESA, SADC) Limited regional cooperation on the ground: lack of capacity, expertise, resources, fragmentation and lack of prioritisation

MAIN MESSAGES: GATS Prospects for mode 4 low skilled further limited by current economic climate: expectations should be realistic Flexibility and readiness to share responsibility Existing work shows that development dimension can be addressed in GATS architecture Skills development agenda can also be pursued through other GATS provisions such as Articles 4, 7 and 8 of the LDC modalities on attaching conditions Knock-on effects, eg. TVT, mode 2

MAIN MESSAGES Recommendations at National Level: 1. Develop core vision for skills development 2. More emphasis on TVT 3. Assess relevance and applicability of TLM in context of national development plans/skills development agenda 4. Address policy and institutional gaps

MAIN MESSAGES Recommendations at Regional Level: 1. Facilitate information systems 2. Training, teaching materials and curricula needs 3. Qualifications framework? 4. Harmonisation of education policies to address skills shortages

MAIN MESSAGES Recommendations at GATS level: - More specific based on priority areas - Target trading partners whose needs are in common interest with LDCs - Extend definition of CSS to CSS-2 - Possible use of a model framework for addressing development dimension - Consider how other modes can be used for skills development

MAIN MESSAGES Role of international community and donors: - Capacity building, diagnostics, funding, implementation and monitoring - EIF, ODA and other bilateral agreements - Provide MA for LDCs in mode 4 areas of interest

THANK YOU