Address by

Hon Mahinda Samarasinghe
 Minister of Employment and Labour, 
Chief Government Whip of Parliament of Sri Lanka

At the "First Plenary Session : Setting a National Agenda for Promoting Employment through Entrepreneurship"
"Thought Leadership Conference" Special Plenary
Date: 30 October 2003
Venue: Balayogi Hall, Parliament Library Building, Parliament House, New Delhi

Today, rising unemployment is taking a heavy toll among young people than never before. They have become a vulnerable group in the labour market. Lay-offs, restructuring and insufficient opportunities condemn many, to a life of economic hardship and despair. Globally, we witness the tragedy of young lives misspent in crime, drug abuse, civil conflict and even terrorism. This is a phenomenon, posing a challenge to all of us gathered here to find solutions.

The changing global trends create an impact calling for strategic planning on an on going basis. Flexibility is needed to implement further change from time to time. The complicity exacerbates the process and makes it a daunting challenge. Youth unemployment is a problem that affects all countries. It is estimated that around 74 million youth around the globe are currently unemployed. According to what has been projected, over the ten years, 1 Billion will be of the working age. Numbers within the working age population will indicate a rapid increase.

Globally, the rate of literacy has been improving over the last few decades. Compared with the previous generations, the current generation of youth, clamouring for employment will be more educated. Yet, the paradox of facing more obstacles in their quest for employment is the reality.

All of us, here as well as back in our own countries, need to develop strategies that will provide youth around the globe, opportunities to find decent and productive work, allowing them to become independent and responsible global citizens. This involves making our youth employable, providing level playing field opportunities, developing individual skills for entrepreneurship and importantly at a macro level, employment creation for youth.

Strategic plans at micro level should address comprehensive development plans by country, to control and mitigate the unemployment issue. In agro-based economies such as Sri Lanka, the development of the agricultural sector, normally the backbone of such economies needs impetus in the planning process. Our planners need to identify, niches, and generate self-employment, with extended assistance to finding stable markets. Vocational training needs to be popularised, and institutions for this purpose set up on a regional basis, with ease of access. This would not only provide more avenues for youth employment locally, but will pave ways for self-employment as well as foreign employment.

At the same time, in an Asian context, we need to address the social stigma and the cultural and social implications of youth, taking up employment under certain occupations. This is more associated with the vocational trades and when joining the industrialized sector for employment. We need to draw a parallel with the developed countries, and thrust positive influences on our youth. We should not down grade a person based on occupation.

The prevailing global trends and the indicators are that ,the economies will become vibrant and more private sector driven. over the next few years, with globalization, the public sector will join hand with the private sector sharing responsibility. Though currently ,the public sector provides direction by playing the role of a catalyst, a gradual transformation towards shared decision- making and responsibility is imminent. In such an environment, securing employment purely on merit in a transparent manner, becomes a vital ingredient and would ,disperse frustration of the youth providing greater confidence and a drive to acquire market oriented skills.

We need to get the youth involved in the planning process, giving them vision and encouragement. For all economies, this is a tedious, and a recurring process. Statistics indicate that, even for countries recognized as developed economies, unemployment is a problem that, looms over them at all times. We need to accept the reality. Over the next 3 decades, what ever we do, how much we do, it would be difficult to eradicate unemployment totally. Therefore, the need to have a safety net for the unemployed youth is a requisite, and needs to be addressed by all of us. In relation to our respective countries and the local economies, issues such as welfare facilities for the youth, social security and unemployment benefits, needs to be carefully examined and addressed.

At all cost, we need to minimize youth unrest and mental depression. A valued asset cannot be allowed to perish or disintegrate. It is our responsibility to nurture, guide and ensure that the societies and the economies at large, derive the benefits from investment made in youth.

Most of the challenges before us in Sri Lanka, are also in keeping with the overall global trends. Currently there are 600,000 youth unemployed, in Sri Lanka. In this figure, there are almost 30,000 people who, are either graduates or with post-graduate qualifications. The unemployed graduates are in the age group of 24 to 35.

We too have identified that the crux of the problem is with the education system. The educational reform process has been set in motion. Yet, I am of the strong opinion that educational reform on its own is not capable of providing a solution to youth unemployment. What we need to address in the planning process is, the negative consequences of a sluggish demand in the labour market.

In Sri Lanka, the majority of youth are wholly or partly dependent on their parents. Great majority are of monolingual character. They only speak their mother tongue. Though English is highly valued in Sri Lankan society, both as a status marker and as a valuable asset in the competition for white-collar urban employment, fluency of the English language is confined to a minority.

In a Sri Lankan context, I see the need for social integration of youth, both as a process and state where, youth are accepted and where, youth play a significant role in the functioning of community.

They should not be condemned and destined to be doomed. We have recognized the private sector as our driving force, towards economic prosperity. They too have a responsibility towards society, and needs to support and groom our youth to become responsible and productive citizens. We cannot allow the evils of past systems take our youth as victims. Through various programmes, we have strengthened the hand of the private sector to absorb and support our youth, at a national level. The private sector is recognized as the driving force of the economy. The government is committed to create, the required environment and the climax for the private sector, to operate and expand, providing additional employment opportunities. The government will ensure that, the youth is trained according to market demand, and through educational reform the necessary change is bought about to ensure that, the supply conforms to the requirements. We expect the private sector to partner us in a national endeavour, displaying true social responsibility and commitment, in facing the challenges and finding solutions in relation to Sri Lankan youth. I have taken a principal stand that politicians cannot give jobs and should not give jobs. The task of the politicians is to create a conducive environment to create jobs and to enhance employability of the jobseekers. We also have taken a principal stand to make the government sector smaller and the private sector larger.

For the first time in Sri Lanka, under the present government, I did formulate and present the National Employment Policy for Sri Lanka in May 2002. In a nutshell, under 7 different initiatives, the National Employment Policy deals in structuring and dealing with the employment sector in a planned manner. Most of the challenges in relation to youth employment would be covered comprehensively and objectively when implementing the 7 initiatives and over the next few years will be a boon to the youth.

The 7 initiatives are:

• Human Resource Planning

• Education and Training for Life long Employability

• Re-defining Foreign Employment

• Development and Promotion of Self Employment

• Fulfilling Social Obligations and Responsibilities

• Redefining and Promoting tripartite involvement

• Sourcing and Delivery System for Employment

I have initiated action on all initiatives.

Country Specific Training facilities for migrant workers, especially males are been provided and will be expanded covering most parts of the country. We have over 1 million migrant workers. Foreign Employment too comes under my portfolio.

As a government we have a major responsibility in fulfilling social obligations. Sri Lanka having gone through civil conflict for the last 21 years needs to develop strong post conflict strategies. We need to bring about high value dividends through the peace process. Since the early part of 2002, a relatively conducive environment has been prevailing of which we have taken advantage to set in motion many initiatives. Ex combatants and Child soldiers are two segments receiving high priority. We need to weave them into the social fabric of Sri Lanka by providing them with income generating activity.

The Unemployment Benefit Scheme that is being structured with technical assistance of ILO is to be implemented from January 2004. Initial stage will deal with employees laid-off. Currently though the planning process has not been completed, what has been proposed is to support retrenched employees with financial assistance for a specific period of time which would be mean tested. They would also be provided counselling and market oriented job training, that put in place labour mobility. Assistance will be provided for them to obtain employment through the employment Sourcing and Delivery System. UBS will be a pioneering project in a South Asian context. My efforts will be to take it further, in keeping with social security systems in the developed countries and provide sufficient cover to many more segments of society.

The Employment Sourcing and Delivery System is based on the principals of meritocracy with transparency. It is the first Public, Private Sector Partnership. I have entrusted the management of the Sourcing and Delivery System, known as “JobsNet” to the Ceylon Chamber of Commerce. The system ensures that employment is provided in the private sector purely based on merit of the candidate.

The Prime Minister has launched the Youth Corp programme, under which 40,000 youth ( with G.C.E- O.L. and G.C.E.-A.L. ) will undergo 18 months of extensive training. 10 weeks will be devoted to discipline related training. 25 weeks will be in relation to development work related training. 35 weeks will be training in a vocational field in keeping with the choice of the trainee and the demand in the job market. During the training period IT and English training will be compulsory for all. The youth will be provided food and paid a stipend of Rs.2000/- per month during the training period.

We are also very concerned regarding the education and the University system in Sri Lanka. The unemployment in relation to qualified youth is no fault of theirs. It is the system that has failed to move in keeping with global changes and time. Through reforms across the board, the government is committed to bring about change for a system that would consider the final destiny of their products through employment.

I am also looking at ways of taking high technology to a grass root level to impart knowledge and to up grade the skills of the rural youth. Many in rural areas are deprived of the structures and facilities to enhance their knowledge. In the near future, through web learning and virtual learning, I intend illuminating the lives of thousands of youth. Known as “Servenet”, an element that has been dealt in the overall Employment Policy for Sri Lanka, we intend clearing bottlenecks where education and knowledge is concerned.

I did mention that there are 30,000 unemployed graduates in Sri Lanka. With World Bank assistance, on an initiative of the Prime Minister, a programme brand named: “Sarasavi Saviya”, (meaning strengthening of the graduates) has been launched and is been implemented now. This programme comes under my purview as the Minister for Employment and Labour. Under Sarasavi Saviya we would be providing 10,000 employment opportunities for the unemployed graduates in the private sector over a period of 2 years. Initially the private sector organizations will provide one year comprehensive on the job training and on completion will absorb the graduates to their permanent cadre. During the training period the graduates will be paid a monthly allowance of a minimum of Rs 6,000/- of which the contribution of the government will be Rs 4,000/-. In consultation with the employers and the graduates the programme will arrange for selected specialized training for all. The government will spend up to Rs.40, 000/- per graduate for such training. This programme would ensure that the graduates do not become a burden on the employers during the initial stages and would accumulate knowledge in a demand driven occupational field. With World Bank assistance the commitment to Sarasavi Saviya over the next 5 years will be 10 million dollars.

There is also an initiative within this programme to promote self-employment culture amongst the unemployment graduates. I have been talking of what we have done in Sri Lanka over the last 2 years. On an international platform with a wider perspective, we intend doing more in Sri Lanka. I have been having the wholehearted support for all my programmes from ILO. (Perhaps they realize that it is been done in the interest of all stakeholders, and are of benefit to the economy on the long run in keeping within internationally accepted norms)

Youth unemployment and its global impact have been subject to discussion at many global forums. It has been accepted as one of the biggest challenges that world leaders will face in this century. Having discussed the subject a few years ago at the United Nations, under the Millennium Development Goals, with the assistance of the World Bank and the International Labour Organization, a Youth Employment Network has been constituted. A high-level panel has prepared the policy recommendations for the Youth Employment Network referred to as “YEN”. Having done all the preparatory work, YEN is being implemented by way of action at a country level. It aims to fully mobilise financial resources for youth employment. YEN would build bridges between schools and work. YEN would also get youth organizations actively involved in the design and implementation of action plans at a national level.

I feel honored and privileged that Sri Lanka is among the countries initially selected as the lead countries to implement the YEN programme. My Ministry is also the focal point for YEN in Sri Lanka. Together with Indonesia, Vietnam and Tanzania we have committed Sri Lanka to the Youth Employment Network. My government’s commitment at the highest political level has been pledged for this national programme. We have committed to prepare a national review and action plan on youth employment.

• Youth Employment as an Entry Point into broader employment issues;

• Political Commitment of Government providing a space for action by non-government actors

• A New way of working for the UN system

• Employability through investments in education and vocational training

• Equal opportunities irrespective of gender

• Entrepreneurship development, making it easier to start and run enterprises

• Youth are an Asset - Not a Problem

• Youth are partners of today - Not only tomorrow

Some statistics in relation to youth are nerve racking. There are over one Billion people who are between 15 and 25 years of age today. Nearly 40% of the world’s population is under 20. 85% of the young people live in developing countries, and around 60% of young people live in Asia alone. This amounts to over 650 Million people.

Across the globe, we all know that elections are won or lost to a great Degree based on how the youth employment issues are handled. Most of us gathered here today, carry a time bomb in our briefcases among all policy papers. The solution to the problem lies on our adoptability, flexibility, speed, commitment and the support that would be forthcoming from the International community and the related agencies. I should also stress the point that programmes such as YEN needs to be fine tuned according to the local environments and conditions, and would need implementation guidelines to be drawn accordingly.

YEN is fresh in my mind as it is about to be implemented in Sri Lanka. Around the globe, there are many such programmes been launched to reduce the levels of youth unemployment. The Youth Employment Summit also known as “YES” is another initiative launched in Alexandria in September 2002, during the Alexandria summit. YES is primarily working towards establishing 2 essential goals:

• To build the capacity of young people to create sustainable livelihoods

• To establish an entrepreneurial culture, where young people will work towards self-employment.

With representation from over 120 countries at the summit, all these endeavors argue well for finding solutions to youth unemployment.

I am in favour of tripartite involvement in the design and implementation of youth employment policy. Policies and programmes are much more likely to be successful, when there is a broader base.

We need to recognize youth as one of the most precious assets that any society would have. Are we to perceive UNEMPLOYMENT as the problem?. If this is the premise, YOUTH is the obvious solution. I am confident that all of you would share my views, and together, we could make new inroads, learning from each other’s experience to address an issue, that is close to our hearts concerning our future generations. The current and future social and economic reality that we are to experience is that, adolescents are in need, and will need more support, guidance, and active involvement, than what they have been receiving, if they are to successfully navigate their lives through turbulent times in their youth. Let us galvanize our resources, to provide the craft for a smooth sailing.

Thank You.

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