Skills & Training In A Globalised World Economy
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Transcript of Skills & Training In A Globalised World Economy
Indo – EU Seminar on Skills Development, Training and
Employment
“Skills & Training in a Globalised World Economy”
Lt Gen (Retd) S S Mehta, PVSM, AVSM and Bar, VSM
Director General
Confederation of Indian Industry
IndiaIndia
Size: 2,973,190 sq km Population: 1096 Mn Languages: National –
Hindi (14 other official languages)-English enjoys Associate Status.
Multi Ethnic,Multi Religious; Pluralistic Society
Largest Democracy. Confluence of Civilizations
IndiaIndia
One of the fastest growing economies – avg 7% since 1994 and 7.5 - 8.1% in 2005.
Inflation – 4-5 %. Forex Reserves – USD
150 Bn. GDP – USD 650 Bn. Leadership in ICT.
ChallengesChallenges
•Social Appreciation of Skills As a Livelihood Asset
• Linking Education to Employability in the Global Knowledge Economy.
• No One Solution. Every Region demands an innovative approach.
India’s AdvantageIndia’s Advantage
• Demographic
• Societal Building Block
• English Language
• Affinity to Maths
• Credible IT Image
• Steady Growth Trajectory
Snapshot: Global Snapshot: Global DemographicsDemographics
Country2000 2025 2050 2000 2025 2050
India 23.7 31.3 38 8.1 12.1 22.6Mexico 23.3 32.5 39.5 7.6 13.8 30USA 35.5 39.3 40.7 18.6 29.3 34.9Australia 35.2 40.5 41.9 18.2 29.3 37.9China 30 39 43.8 10 19.4 37.2Canada 36.9 42.9 44 18.5 32.6 40.9France 37.6 43.3 45.2 24.5 36.2 46.7UK 37.7 44.5 47.4 24.1 34.8 47.3Europe 37.7 45.4 49.5 21.7 33.2 51.4Russia 36.8 43.8 50 18 27.6 47.1Germany 40.1 48.5 50.9 24.1 39 54.7Japan 41.2 50 53.1 25.2 49 71.3Italy 40.2 50.7 54.1 26.7 40.6 68.1Spain 37.7 49.2 55.2 24.8 36.1 73.8
Indicators of Aging in Selected Countries (2000, 2025, and 2050
Median Age (Years) Old Age Dependency Ratio
Global Demographics Global Demographics ScenarioScenario
47
Note: Potential Surplus is calculated keeping the ratio of working population (age15-59) to population constant. Source: US Census Bureau; BCG Analysis
An IdeaAn Idea
India has the unique opportunity to:
• Complement what an ageing world needs the most -- Productive Workers.
• Provide investment opportunities for ageing population to earn high levels of post –retirement income.
GlobalisationGlobalisation
A complex series of economic,
social, technological, cultural and
political changes are increasing
interdependence, integration and
interaction between people and
companies in disparate locations.
…. IMF
Trends to WatchTrends to Watch
• Centres of economic activity will shift profoundly, not just globally, but also regionally.
• Shifts within regions will be even more dramatic
• Today, Asia (Excluding Japan) accounts for 13 percent of the world’s GDP, while Western Europe accounts for more than 30 percent. Within
20 years the two will converge.
……. Mckinsey Quarterly Web Exclusive 2006
• Global Talent deficit is fundamental to sustainability.
• Owing to the flux in the global economy it is difficult to forecast where a skill shortage will arise next.
• External markets are not delivering the right skills at the pace of change
…….Infosys Davos 2006 Panel Debate
Pumping the Global Talent Pipeline:
The 21st Century Imperative
• The challenge is to have the right people, at the right place, at the right time.
• The Paradox of ‘Skill versus Will’.
• The need for the public and private sectors to work together towards the vision of the future.
…….Infosys Davos 2006 Panel Debate
Pumping the Global Talent Pipeline:
The 21st Century Imperative
Skills: A Global CurrencySkills: A Global Currency
• "Skills" are a global currency for a globalising world.
• Countries with a significant skills capital can innovate; remain competitive and enable sustainable growth.
• “Skills Development” will create inclusive societies.
• Global Skills Development should be added as a UN Millennium Goal.
India - Sectors Demanding Multi- India - Sectors Demanding Multi- Level Skills OptionsLevel Skills Options
Construction
Finance, Real Estate, Insurance & Business Services
Transport, Storage & Construction
Wholesale & Retails Trade
Manufacturing
Community, Social and Personal Services
Agriculture
Electricity
Mining & Quarrying
Four Collar Work ForceFour Collar Work Force
White Collar - Well understood across the World
Grey Collar – The knowledge worker, which includes ICT Skills, problem solving, analytical and effective communication skills.
Blue Collar – Shop floor work in the manufacturing and service sector.
Rust Collar – Skilled worker at the grass root level in currently unorganised and un-benchmarked sectors like – Construction, Agriculture and related trades.
Guiding PrinciplesGuiding Principles
• Independent Assessment and evaluation
• Competitive basis for quality
• Employment Orientation
• Global Benchmarking
• Levels and Progression routes
• License to Practise
Features of the CII ‘Skills Initiative’Features of the CII ‘Skills Initiative’
• Localised Approach – Relevant to local needs
• Scaleability
• Short Duration, Focussed Programmes
• Modular Approach
• Smart Card Certification
Smart Card CertificationSmart Card Certification
Biometric Identification
Tamperproof
Multifunctional
Convenient
Access to a gateway of Services
Possibility of bank linkages for Micro-Credit
ConclusionConclusion
• Skills formation delivers not only needed economic benefits but important social benefits as well.
• "Skilling a Million Indians" is a catalytic project of CII.
• Need for Quality Certification which is credible at Regional, National and International levels.
Focus on Developing Human Focus on Developing Human ResourceResource
Countries that get addicted to selling their natural resources rarely develop their human resource and the educational and innovative companies that go with that. So, after the ore has been mined, the trees cut, and the oil pumped, their people are actually even more behind.
………Thomas Friedman
We need to do more to get each stakeholder deeply involved, to have a sense of where society is going. …… Professor Jagdish Bhagwati
What we need is a……. What we need is a……. Thought ShiftThought Shift
• We need a “thought shift ” from employment to employability ; from providing fish to teaching how to fish.
• Our progress will not be worth the trip if we do not give a majority of our people the strength and self esteem that comes with a job .
• The Journey has just Begun…..
India & EUIndia & EUEU
India
Relations go back to early 1960.
India – EU Key Trading Partners
Demographic Dividend
Shared Values:
•Democracy
•Pluralism
•Liberalism
•Open, Inclusive Societies
Thank You