Business monthly October 07
 
EDITOR'S NOTE COVER STORY EXECUTIVE LIFE
VIEWPOINT IN PERSON SUBSCRIPTION FORM
IN BRIEF MARKET WATCH ADVERTISING RATES
IN DEPTH CORPORATE CLINIC THE CHAMBER
 

VIEWPOINT

Last month’s Viewpoint emphasized how Egypt’s educational system once produced great thinkers and professionals. But in the not-too-distant past, Egypt was also known for the quality of its technicians and craftsmen. Vocational training was an important option for students whose talents were more technical than intellectual. These students could choose from a variety of technical trades, based on their ability to meet the exacting standards of their teachers, and the high caliber of their work added to the quality of life in Egypt as a whole.

A glance around Cairo today, however, suggests that the availability of top-notch training, whether for professionals, technicians or craftsmen, has greatly declined, at a time when, as Egypt industrializes, many new types of expertise are required in addition to the old. That same glance shows a lot of people without jobs, even though there’s so much to be done.

The mismatch between market demands and qualified individuals has grown to such an extent that everyone – the consumers of services and products, the people who provide them, and the country as a whole – is suffering.

The Industrial Training Council (ITC), founded last year by Minister of Trade and Industry Rachid Mohamed Rachid, has the resources to turn this mismatch into an opportunity. The council’s aim is to improve the level of training available to Egyptians nationwide. In addition to addressing the training needs of university graduates, the ITC primarily aims to increase the supply of skilled workers through a demand-driven training process whereby industry owners and operators identify their needs, and the ITC delivers the proper training through independent, qualified providers – covering 80 percent of the cost. This is a big incentive, and private sector enterprises stand to profit from greater productivity by bringing their human resources up to par.

Many state-sponsored training institutions, programs and facilities are available to provide the training. So far, however, their efforts have not been organized to be mutually supportive, nor have they been aligned with a changing market’s needs. Currently, by ITC estimates, 90 percent of public and private sector funds allocated for training go towards developing managerial skills, with the remaining 10 percent dedicated to labor. This imbalance means that not only are local enterprises unable to find the right staff, but most of the people who have worked hard to become managers will have an even harder time finding a job.

Fortunately, we have the finance – and the motivation – to do things differently. The ITC’s 2007 budget includes state funding of over LE 0.5 billion, in addition to EU, World Bank and other international donor contributions. Under the ministry’s auspices, the ITC will coordinate the various training activities, allocating funds, overseeing accreditation, and conducting assessments of training institutions and trainees, not by the number of certificates that get issued, but by the quality of the work that went into earning them.

The ITC is a step forward, one the business community has every reason to support, but that shouldn’t keep us from pursuing other education-related initiatives. Some readers may recall the Don Bosco school in Rod Al Farag. Established in 1926, it provided an excellent technical background to young men on a secondary school level, alongside other basic skills. Many of those students had shown little aptitude in primary school, and would have had a hard time getting into college, but Don Bosco recognized their potential and gave it a productive outlet. The graduates were so respected, they were granted direct admission to the Cairo University Faculty of Engineering as second-year students. Recently, a private initiative was launched to revive the Don Bosco tradition, updating and adapting it as a model for other vocational high schools. Incidentally, the Don Bosco school is located in a beautiful old building, whose craftsmanship, cleanliness and upkeep were meant to inspire respect and pride.

By now, we know that education is our biggest challenge, especially when university graduates lack the necessary qualifications to get a job. But until we revamp our education system, we’ll need to provide supplementary training to college graduates. At the same time, we need more vocational training schools that directly address Egypt’s changing needs. Not everyone is cut out for every job, but everyone has something they can learn to do well. By providing people with more options for personal development, we’ll get a better match of talent and skill, and beneficial end-results that we can all be proud of.

OMAR A. MOHANNA
President, AmCham Egypt

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