ADB, Japan to Boost Rural Incomes, Youth Job Skills in Cambodia

The FINANCIAL
http://finchannel.com

22/04/2009

The FINANCIAL -- Cambodia’s drive to boost rural incomes and provide job skills for unemployed youth in some of its poorest communities are being supported by the Asian Development Bank (ADB) and the Government of Japan.

ADB’s Board of Directors approved a US$2 million grant from the Japan Fund for Poverty Reduction (JFPR) to the Government of Cambodia for a pilot program that will train agricultural producers in post-harvest food handling, storage and processing techniques. It will also fund skills training for jobless and out-of-school youth. The JFPR is financed by Japan.

"Cambodia’s economy grew at double digit rates between 2004 and 2006, helping to reduce poverty and improve school enrolment rates. However, poverty incidence is still over 30% in rural areas while an estimated 2 million young people are unable to continue schooling or undergo vocational training, mainly because of financial constraints. The lack of available training, particularly in rural areas, and the country’s shift towards more labor-intensive industries, such as garment factories, has left a sharp mismatch between the needs of industry and the skills of new entrants into the labor force," ADB reports.

ADB’s pilot program will help address that gap by training specialists who will then teach about 3,000 agricultural producers, including 1,500 women, post-harvest food skills designed to boost their incomes and reduce poverty. The skills bridging component will target about 700 young people who have never enrolled in secondary school or who have little formal education, and give them access to training and employment opportunities through the Technical Vocational Education and Training (TVET) certificate-level program. Funds will be given to community-based groups, non-government organizations (NGOs) and public and private skills providers to draw up the training program. The grant will also be used to build up the skills and capacities of the staff managing and implementing the program.

“The assistance is designed to create new earning and income opportunities among poor agricultural producers in the pilot communes during on and off farm seasons and to create business opportunities and access to training and employment opportunities for out-of-school youth. It is a very relevant response in this critical time for the Cambodian economy,” says Sophea Mar, Social Sector/Poverty Officer with ADB’s Cambodia Resident Mission.

The program puts a strong focus on working with the councils of the 44 target communes to ensure that the training caters closely to their needs and maximizes the number of participating producers. The program will be the only one of its kind in the country and could potentially become a model for future technical vocation and training skills projects.

The total cost of the pilot program is estimated at $2.32 million, with the JFPR grant covering 86%. The balance will be provided by contributions from the Government, relevant international organizations and NGOs, community-based organizations and communities.

The executing agency is Cambodia’s Ministry of Labor and Vocational Training.