Global Development Forum: Workforce Development Preview

The International Labor Organization estimates that 73.4 million youth were unemployed in 2013, and that youth were three times more susceptible to unemployment than adults. As a result, the role of formal education and training of youth in its influence on the quality and development of the workforce demands urgent attention. Private sector investment, alignment of employment skills, as well as education programs that feed into social stability will play integral roles in creating a more employable youth population and a fortified workforce.

World Youth Day will be celebrated in Krakow, Poland this year.

World Youth Day will be celebrated in Krakow, Poland this year.

Why should the private sector invest?

In 2013, nearly 300 million young people were not in education, employment, or training (NEET). The private sector has a role to play in supporting employment-focused education, but investment in this space should be driven by self-interest—effective workforce development will result in higher profitability in the long run by increasing the overall capability, quality, and efficiency of the workforce. Keeping in mind the relative strengths of both the public and private sectors, there is a clear window to create shared value, allowing both business and communities to jointly prosper. Through increased public-private partnerships and supply of skills training programs, the private sector can offer input where the public sector is unable to through deeper social investment. By financing recruitment, promotion and training, the private sector can better link business and social interests. Moreover, it can make youth more employable by aiding with the management of Technical and Vocational Education Training (TVET) programs, lowering or removing barriers to entry for disadvantaged students, and alleviating other social obstacles faced by youth in need of further education. Continue reading

Global Development Forum: Financing for Development Preview

In July 2015, heads of state, finance ministers, foreign ministers, and ministers for development cooperation will gather in Addis Ababa, Ethiopia for the third United Nations International Conference on Financing for Development. The Addis Conference seeks to identify funds to support the post-2015 Sustainable Development Goals (SDGs). This conference will be fundamentally different from earlier FfD conferences held in Monterrey in 2002 and Doha in 2008. In 1980 low and middle income countries received $32 billion of ODA and $7.6 billion of FDI, but by 2013 those countries received $133 billion of ODA and $735 billion of FDI.  As global incomes rise, emerging donors have taken on a much greater role in development. Developing countries’ themselves have gained a greater ability to finance their own development as private sector economic activity in the developing world continues to grow. Below we have outlined some of the ways development finance has changed to respond to a new set of challenges and development realities.

The UN will host the third Financing for Development Conference in July

The UN will host the third Financing for Development Conference this July in Addis Ababa, Ethiopia.

A New Role for Traditional Donors

While ODA and traditional development financing remain important catalysts for development, donors that were once the main sources of financing for developing countries increasingly find themselves playing a complementary rather than unilateral role. Private financial flows have increased rapidly and ODA and public funding for donor organizations have increased at a more limited rate. As a result, traditional donors are finding new ways to leverage their funds to create maximum impact, often through encouraging private sector growth. Continue reading