Youth Employment Programs - Independent Evaluation Group

Box E.2e4e Initiative for Arab YouthIn 2011, McKinsey undertook a study commissioned by IFC and the Islamic Development Bankto assess the growing skills gap among Arab youth in relation to labor market needs. Accordingto one-third of the employers surveyed, graduates do not have the necessary work-relevantskills when hired, in large part because of the quality and relevance of education and trainingavailable to youth.In June 2011, IFC developed the e4e Initiative for Arab Youth, with the objective of strengtheningthe link between education and employment opportunities. It focuses on reducing themismatch between the skills that young people have and those demanded by the private sector.The program has three pillars: (i) investments in Vocational Education and Training, universities,work readiness programs, and entrepreneurship training; (ii) improving the investmentclimate for private sector companies, including the regulatory framework for private educationproviders, setting up a qualifications framework, establishing independent standards andquality assurance bodies; and (iii) advocacy. These pillars require the collaboration of differentstakeholders. IFC and the World Bank will work closely together to leverage the expertise andexperience of the World Bank Group in the region. This initiative is in its very early stages. Theconceptual framework and program components are consistent with the need for an integratedapproach to address the issue of youth unemployment.Source: e4e Initiative for Arab Youth documents.IFC usually tracks the number of people trained and client satisfactionwith the training to measure its development effectiveness. However, thetranslation of the knowledge gained through the training activities toperformance has been seldom measured. 5The SME toolkit is one common tool that IFC uses to improve the skills ofexisting entrepreneurs and SMEs. The program uses information and communicationtechnologies to help small and medium enterprises in emergingmarkets learn sustainable business management practices. So far, the SMEtoolkit has not been designed for new entrepreneurs, but it could be easilyexpanded to this group.Business Edge, a program that delivers management training products andservices, is specifically designed for SMEs and entrepreneurs. The product is apackage of 36 different management workbooks in marketing, human resources,production and operations, finance and accounting, and productivityskills. It also includes trainer manuals, training of trainer sessions, and additionalcapacity-building tools for training firms. IFC delivers management,financial, and technical training to SMEs through the supply chain approachand targets managers and owners of SMEs. Since 2002, 60,000 people havebeen trained through the program. The Gender Entrepreneurship MarketsProgram targets women entrepreneurs with advisory assistance so that they132 Youth Employment Programs