The Nuts and Bolts of Market-Driven Skills Training
Bangladesh trained 1.5 million people by linking directly to the real-world needs of employers.
Despite impressive recent growth in the Bangladesh economy – about 6% annually since 2003 and the poverty headcount index sharply down to 31% in 2010 from a high 57% in 1992 – the 2010 labor force survey indicates low education levels. More than 60% of the labor force reported either no education (40%) or have only reached primary education (22.8%). About 2 million young people enter the labor force every year and while their education profile is improving, skills shortage remains one of the main constraints to the growth of economic opportunities in Bangladesh.
In order to accelerate its economic growth rates, the government committed to improve skills development and training. It developed the Skills for Employment Investment Program (SEIP) – a skills development program for skilling new entrants and upskilling existing workforce to enhance the productivity and growth of priority industry sectors. A major component of the program is a partnership between the government and the private sector through the country’s various industry associations.
- 1.5 million trainees for the 10-year period
- 100,000 enrollees for 2016
- July 2014 to December 2024: Program period
- US$ 500 million loan: Asian Development Bank
- US$ 40 million grant: Swiss Agency for Development and Cooperation
- US$ 125 million counterpart fund: Government of Bangladesh
- US$ 7.5 million contribution: Bangladesh industry associations
- US$ 682.5 million: Total Program Cost
- Asian Development Bank
- Swiss Agency for Development and Cooperation
- Government of Bangladesh
- Bangladesh industry associations
- Skills Development Coordination and Monitoring Unit, Finance Division, Ministry of Finance
Bangladesh, Education, Industry and trade
Last updated: February 2017
The views expressed in these articles are those of the authors and do not necessarily reflect the views of the Asian Development Bank, its management, its Board of Directors, or its members.