Monday, 29 August 2016

What Kind of Aid Does the Pacific Need (Part 3) - Jobs

Jobs, jobs, jobs, jobs. Broken record, yes? It’s what’s needed in the Pacific as lifestyles change, as communities develop. It’s doubtful policy makers thought too far ahead in terms of what would happen as economies transitioned due to trade. What would people do?

This is of particular concern for youth in the Pacific, specifically educated youth. Here is a whole subset of the labour force that is unemployed or underemployed - unproductive if you think in terms of its productivity potential. We need jobs for youth, and they need to be productive, allow for social protection AND promote the idea of sustainability. Ideally, they would also focus on transferable skills that can move across sectors and borders.


The Asian Development Bank undertook a study on labour market challenges in Fiji, which can, without too much controversy, be extrapolated across the Pacific. They note that there is low economic investment (to scale up sustainable home industries and develop domestic markets), there is a significant rural-urban wage gap, there is a definite youth unemployment and skills gap, and a significant skills mismatch where people are in productive employment.

One of the challenges is that many youth career aspirations lean towards white collar jobs (think doctor, teacher, civil servant) while trade or technical skills are severely lacking across the region. With encroaching climate change, trade and technical skills to facilitate adaptation are critical.

There is also the option of opening up the region to new types of employment. One very interesting suggestion was to transition part of the labour force to digital labour - focussing on the knowledge economy. It has a significantly smaller ecological footprint, and focuses on skills that are transferable across sectors AND countries.

What are the benefits in the context of the Pacific? You can work anywhere. It is often micro-work (meaning it doesn’t require years of post-secondary schooling) focussing on transcribing audio and video files, or updating databases. It does, however, necessitate good ICT, which has been unreliable and disproportionately expensive in the Pacific to date. The World Bank identifies four ‘pillars’ that underpin a knowledge economy, of which some aspects could well suit Pacific island economic development needs in the sector.

1.     Institutional structures that provide incentives for entrepreneurship and use of knowledge (think: how to get global companies to outsource digital micro work to the Pacific)
2.     Skilled labour availability and good education systems (education needs more prioritization on being digitally literate)
3.     ICT infrastructure and access (expensive but a worthwhile investment not just for economic growth but also service provision such as distance education and health care)
4.     A vibrant innovation landscape (building up academia, the private sector and civil society to act as ‘laboratories’ for ideas that could generate digital and knowledge-based economic opportunities).

A benefit of a knowledge and skills based economy is that it is more resilient to the challenges of climate change, and it provides opportunities to diversify from traditional employment in the region such as agriculture, fisheries, tourism and government.


Investment in trade and technical skills development will, by far, have a faster payoff, as long as there is parallel investment in developing businesses that employ trades and technical skills. Investing in developing a knowledge economy is a long game, and requires equal if not more investment to improve education to meet knowledge economy needs. Both are options, in some combination, for countries in the region. Both allow for the development of transferable skills whether in the Pacific or abroad. It is a win-win. An expensive win-win, so development aid will a crucial component of any decision to walk this path.

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