Bringing a systemic perspective to
skills development
Skills Development through
Public and Private Sector Partnerships
Lessons from India’s Jewellery Sector
ACCESS Development Services
The SEEP Network
Connecting microenterprise practitioners
in a global learning community
Enabling Economic Empowerment
Project Partners
JaipurJewellery Artisans Development (JJADe) Project
ACCESS India – Implementing Partner
Incorporated 2006 in India as “not for profit”
company facilitated by DFID (Govt of UK) and CARE
India
SEEP Network – Technical and Learning Partner
Nonprofit network of over 120 international
organizations, which believe in the power of
microenterprise to reduce global poverty. SEEP
member organizations collectively work in over 170
countries around the world.
Jaipur Jewellery Artisans Development (JJADe) Project
Jaipur’s Gem & Jewellery Sector
HISTORICALLY
LABOR
MARKET
Largest gem & jewellery hub of India
~225,000 people
•135,000: Gem cutting and
polishing (95% of all semi-precious
stones)
•65,000: Metalwork
•Remaining: Lac
% EXPORTS
GROWTH RATE
EQUITY
13% (>US$ 2 billion p.a)
15-20%
Growth has not successfully
translated into increased benefits
to the poor, who have largely
been excluded from recent gains
Jaipur Jewellery Artisans Development (JJADe) Project
Market Analysis of Jaipur’s Gem & Jewellery
Sector
Lack of Social
Identity
&
Lack
of Social
Identity & Security
Security
(D) Large partLack
of workforce
is Workforce
migrant
of Skilled
(S)
Lack of Skilled Workforce
Not officially
by government
artisans
(D) recognized
Long working
hours hinderas
skills
development
(S)
Little or no
to existing
government
artisan
services
(S)access
Perception
of low
skills across
workforce
discourages
Working Children
and
amongst
lead firms
Working
and Bonded
Apprentices
(S) LowChildren
trustinvestment
between
firms
and
artisans
prevents new biz
Bonded Apprentices
linkages
Dated
Designs and
(S) Existing
training
programs
not relevant to BOP
clients
Dated
Designs
and
Technologies
(S) Laborers tied to masters
Technologies
(S) Existing trainings expensive & for middle-/upper-class
(D) High
demand ID
for cards
new styles
(S) Masters have no incentive
to facilitate
Low has
Artisan
Wages
Low
Artisan
Wages traditional designs
(S)opportunities
Industry
strong
bias toward
(S) Reduced educational
(D)
(D) Relative
abundance
of low-skilled
labor common
(S) Little/no
design training
Over-supply
of labor
Reduced Sector
(D) Fragmented producers and production
Competitiveness
(D)
Easy entry undercuts existing producers
(D)
Informal home based industries lead to disguised unemployment
Skills Development Market System: Key Constraints
Design Institutes only
serving high end
consumers
SUPPORTING
MARKET
High opportunity cost of
training
Institutes lack
understanding of BOP
market
Trainings not suited to
artisan requirements
Lack of affordable
technology prevents
upgrades
Disconnect between
industry needs and
available services
Gem & Jewellery Market
Artisan schemes only
available to recognized
artisans
Master craftsmen have
no incentive to train
staff
Regulated by Ministry
of commerce
Lapidary artisans not
recognized as artisans
RULES
Jaipur Jewellery Artisans Development (JJADe) Project
Skills Development Market System: Key Actors
SUPPORTING
MARKET
MSME Institute
(Govt.)
Private Design
Institutes
Indian Institute of
Gem and Jewellery
(Public/Private)
GEM & JEWELLERY MARKET
(Artisans & Lead Firms)
Ministry of Rural
Development
National Skill
Development
Mission
Ministry of Human
Resource
Development
Jewelers Association
Ministry of
Commerce
Ministry of
Handicrafts
Ministry of Labour
and Employment
RULES
Key Principles Guiding Interventions
1. BUILD TRUST among the Value Chain Players
2. REDUCE ATTRITION
due to improved Social Security Measures
3. SHIFT FOCUS of Institutions from low-volume, high cost training courses to highvolume, low cost trainings
4. BRING TOGETHER the concerned Industry Players, Technical Institutions, Financial
Institutions through one platform (Project Advisory Committee)
Jaipur Jewellery Artisans Development (JJADe) Project
Skills Development Market System: JJADe Interventions
SUPPORTING
MARKET
Upgrading
Skills/Capacity Dev
Artisan database for
Institutes
Training modules for
Institutes
Facilitate Interface
Artisans & Institutes
Kaarigar Sabhas
Demonstrate
GEM & JEWELLERY MARKET
(Artisans & Lead Firms)
Smart subsidy piloting of
training modules
Lobby Govt.
VAT Reduction
Facilitate Interface
Institutes & Govt.
Project Advisory Committee
Lobby Govt.
Piloting public vocational
education module
Lobby Govt.
Recognition/expansion of
Artisan ID cards
Lobby Govt.
Min Handicrafts to use smart
subsidies in schemes
Sensitize Govt.
RULES
Training modules
Impact Chain for Skill Training Market Development
• Improve delivery mechanism for Identity cards
Interventions
Output
Outcome
•
•
•
•
•
facilitate shift to capture Biz Volumes by serving BOP market
Facilitate Private institutions to Leverage Government schemes/grants
Facilitate Private institutions to become accreditation agencies
Connect artisans and service providers through karigar sabhas and Internship programs
Advocacy through Project Advisory Committee
•
•
•
•
Artisans access to trainings and benefits earmarked for artisans
Artisans recognized as skilled artisans
Private institutions offer more short term training modules based on market trends
Dynamic flow of information between artisan and Institutes about needs and market trends
•
•
•
•
•
Improved small enterprise profitability
Improved employability among small firms due to use of improved technology
Sustained livelihood in the jewellery sector
Formalization
Artisans meet industry demand for skilled workforce
Jaipur Jewellery Artisans Development (JJADe) Project
Selected Achievements
IMPROVED
BUSINESS
ENABLING ENVIRONMENT
CROWDING
IN THE
1.
Govt. convinced of market & strategy – JJADe II (USD 700,000)
2.
System for issuing ID cards in place: institutional & agency delivery models
3.
Decrease in the Value Added Tax (VAT), from 14.5% to 5% on the small
equipment purchase makes technology upgrade easier
1.
Five training institutes offer customized training modules for artisans
2.
Existing institutes lobby to leverage Govt. programs
3.
One design institute started by lead firm
4.
One organization became a skills accreditation agency; others in pipeline
1.
Artisan database & platform for direct needs assessment
by training institutes
2.
Private firms see business in the artisan market segment
3.
Project Advisory Committee to continue lobbying Govt.
MARKET TO IMPROVE
COMPETITIVENESS
IMPROVED
INFORMATION
FLOW AND COORDINATION
Jaipur Jewellery Artisans Development (JJADe) Project
Selected Achievements
IMPROVED
BUSINESS
ENABLING ENVIRONMENT
CROWDING
IN THE
1.
Govt. convinced of market & strategy – JJADe II (USD 700,000)
2.
System for issuing ID cards in place: institutional & agency delivery models
3.
Decrease in the Value Added Tax (VAT), from 14.5% to 5% on the small
equipment purchase makes technology upgrade easier
1.
Five training institutes offer customized training modules for artisans
2.
Existing institutes lobby to leverage Govt. programs
3.
One design institute started by lead firm
4.
One organization became a skills accreditation agency; others in pipeline
1.
Artisan database & platform for direct needs assessment by training
institutes
2.
Private firms see business in the artisan market segment
3.
Project Advisory Committee to continue lobbying Govt.
MARKET TO IMPROVE
COMPETITIVENESS
IMPROVED
INFORMATION
FLOW AND COORDINATION
Key Lessons Learned
1.
Identifying and addressing the critical bottlenecks in the system has
catalytic effect on several functions within the Value chain
2.
Better understanding of weaknesses in Govt. delivery channels enables
program to engage in selective advocacy that…
– Ensures inclusion of key Government officials in the process of system
development eg: PAC and DCH for ID cards
– Creates feedback loops between Govt., lead firms, and supporting
market actors (e.g. Design Institutes)
3.
Smart subsidies incentivize both Govt. to improve service delivery and
private sector to realize market potential by demonstrating…
– Sustainability through cost-effectiveness
– Value of relevant service(s) to the overall market system (e.g. indirect
impacts)
Bringing a systemic perspective to
skills development
Skills Development through
Public and Private Sector Partnerships
Thank You!
[email protected]
The SEEP Network
Connecting microenterprise practitioners
in a global learning community
[email protected]
ACCESS Development Services
Enabling Economic Empowerment