Professional Documents
Culture Documents
August 2009
Foreword
For the youth of Palestine, employment is both a greater challenge and a greater
opportunity than in the past. The Palestinian economy cannot provide sufficient work for
all the young people growing up and leaving education every day. Their education itself
does not prepare them for real work. Their chances to make their own opportunities
through enterprise are stifled. Young women face all of these and additional challenges.
Yet we have the opportunity today, perhaps like at no time in the past, to create effective
solutions to these problems.
Sharek Youth Forum puts forward this white paper boldly, yet humbly. Boldly stating what
we see are the problems faced by young people seeking employment. Humbly
acknowledging our limitations. We cannot guarantee that all of the problems and all of the
solutions are addressed in this White Paper. In fact we can guarantee they are not. We
are aware that we will have made mistakes. We are not prepared, however, to let the
situation continue as it is and we hope that this report creates a new impetus for a
collective effort to solve the problems outlined.
With this, then, we open the debate and invite our friends and colleagues from youth
organisations, institutions and the private sector in Palestine and abroad to join us in
seeking the necessary resolutions.
Sufian Mushasha
General Secretary
2
Background
As a follow-up to the millennium declaration, the UN General Assembly adopted, in
December 2002, a resolution entitled Promoting Youth Employment. The resolution
encourages Members States to prepare national reviews and action plans on youth
employment and to involve youth organisations and young people. While the Palestinian
National Authority (PNA) is not a state, it is recognised as the representative of the
Palestinian people, including the youth, and has committed to the Millennium Development
Goals. This white paper looks, therefore, to the PNA for leadership in following the
recommendations of this resolution by developing and implementing a policy.
In the 2002 resolution, the international community recognised that Governments have
primary responsibility to educate young women and men, to ensure equal access to all
youth living in their country and to create an enabling environment that will promote youth
employment.
Sharek's STEP FORWARD Youth Business and Employment Service is instigating the
process of the development of an action plan in order to give every young Palestinian the
opportunity to participate fully in the economy. Achieving this is a precursor to the creation
of responsible, experienced leaders, a flourishing economy and resilience to external
shocks. Step Forward is not about defining the strategies or writing the plan but about
stimulating the conversation, voicing the opinion of the youth and driving the participants
towards the outcome: a comprehensive plan which is implemented in full.
3
The Youth Employment Challenge
The problem, put simply, is an insufficient number of quality jobs. The core of the problem
can be summarised as poor economic performance combined with high population growth.
Gender inequality then leads to an uneven distribution of quality jobs between men and
women. For youth in particular, there are additional problems relating to enterprise and
education and training that exacerbate the challenge for them. The lack of employment
opportunities for youth has a spiral effect, dragging the poor into ever deeper poverty and
driving migration of the best educated and highest skilled. Finally, the lack of a well
functioning system of institutions means these problems, among others, remain unsolved
and often exaggerated.
The picture as a whole is not hopeless. On the contrary, there are many strengths and
notable achievements of the past years. Key problems remain unaddressed. Key hurdles
are avoided. The current approach to youth employment is fragmented and poorly
targeted. This white paper is aimed at prompting and promoting the discussions which will
provide the solutions the youth need.
The following snapshot of the 5 central problems and their contributing factors provides a
brief insight into the problems referred to throughout this paper. Where relevant,
references have been provided to backup the statements and to provide routes to
extended understanding of the issues. The upcoming report "The Status of the Youth in
Palestine"1 will provide a more detailed consideration of these factors.
1
To be published by Sharek Youth Forum, 2009
4
1. Poor Economic Performance
Poor economic performance alone does not necessarily create a problem for
employment. If the population growth rate exceeds economic growth rates, however,
as it does in the oPt, insufficient new jobs are created to absorb the new entrants to
the job market – the youth. Many problems described below are shared with all
labour-market participants. This merely re-emphasises the importance of addressing
them, not just for the youth but for the entire population. Finally, while this is not the
place for an in-depth economic analysis, the following factors play a big role in limiting
economic growth and are briefly explored with an eye on youth.
Contributing Factors
1.1 Occupation
The occupation is the principal source of most of the economic problems that
currently plague the Palestinian economy. The economic structure is
precipitated by the prior and to an extent current dependence on work in
Israel combined with the prevalence of aid to support the country as it is in
limbo between occupation and self-rule. The lack of access to markets is
partly a consequence of movement restrictions and partly of non-tariff
barriers. These problems have knock-on effects as described below.
Agriculture,
Hunting, Forestry &
Services & Other Fishing
Branches 16%
36%
Mining, Quarrying
& Manufacturing
12%
Construction
11%
Transportation,
Storage & Commerce, Hotels
Communication & Restaurants
6% 19%
5
Economic Activity by Sector (Number of Establishments, 2006)
Financial
Industry Intermediation
14% Construction
1%
1%
Services activities
(profit and non-profit)
Wholesale, retail 22%
trade & repairs
61%
2
Calculations from PCBS Annual Statistics 2007, http://www.pcbs.gov.ps/Portals/_pcbs/Industry/detailed%20tab%201.htm (accessed 14/07/2009), PCBS, 2007
3
World Bank Data Profile, http://ddp-ext.worldbank.org/ext/ddpreports/ViewSharedReport?REPORT_ID=9147&REQUEST_TYPE=VIEWADVANCED (accessed
14/07/2009), World Bank
6
inaccessible through a mixture of foreign import regulations4 including Israeli
or Jordanian registration, extensive border-checks despite the customs union
with Israel, technological requirements, cost5 and non-tariff barriers. With
businesses unable to access important markets, the private sector is stifled
and unable to provide the necessary employment opportunities for youth.
1.5 Underinvestment
A Palestinian manufacturer will not invest in higher quality, advanced
technology and general expansion of production given the uncertainties of
occupation (see 1.1) and the lack of access to markets (see 1.4). Without
such investment, however, the private sector will never grow sufficiently large
to employ the new entrants to the labour market. Meanwhile, with the
Palestinian Authority holding limited jurisdiction across the territory,
investments in infrastructure are neglected that would otherwise support the
private sector. Without a strong, sustainable private sector which attracts
and generates investment, providing sufficient employment for the growing
youth is not possible.
4 "55.0% of the respondent [to the survey] indicated that the import regulation in the foreign markets hindered the export process",
"Main findings of the Survey of the Perceptions of the Owners/Managers of Industries Regarding the Economic Situation", p. 3, PCBS,
December 2007
5
"70.7% of the owners/ managers of the industrial establishments identified the impact of Cost of transportation on production cost",
ibid, p. 1
6
"Survey on the Perception of the Owners/Managers of the Industrial Establishments Towards the Economic Conditions", PCBS,
February 2005, www.pcbs.gov.ps/Portals/_pcbs/PressRelease/Econ_Feb05E.pdf (accessed 15/07/2009)
7
raw materials, industry and the private sector cannot expect to grow, making
job-creation slow or impossible in the private sector.
166
164
162
Index (1996=100)
160
158
156
154
152
150
May.2007
Mar.2007
Apr.2007
July.2007
Aug.2007
Nov.2007
Dec.2006
Jan. 2007
Feb.2007
June.2007
Sep.2007
Oct.2007
Dec.2007
Month
Source: Adapted from Monthly Consumer Price Index Numbers, 20099, PCBS
7
"The Economic Effects of Restricted Access to Land in the West Bank", World Bank, 2008, p.7
8
The value of seized land: "Some 170,000 dunums [(17,000km2)] of fertile agricultural lands are affected, or 10.2% of the total area
cultivated in the West Bank, with an average economic value of US $38 million – equal to roughly 8% of Palestinian agriculture product",
ibid, p. 23
9
Adapted from Monthly Consumer Price Index Numbers, http://www.pcbs.gov.ps/Portals/_pcbs/cpi/551ee164-91d4-436e-b789-1535eca17163.htm (accessed
15/07/2009), 2009, PCBS
8
1.10 Skills and Training
Specifically focusing on small and medium sized enterprises (SMEs), the
technical capacity to employ more people is rarely present. Managers and
owners who intuitively have these capacities will succeed in growing their
businesses, while those who do not will remain small. Given the economic
structure (see 1.2), it is clear that most businesses in the oPt remain small.
The indication is, therefore, that businesses are missing opportunities to grow
and therefore increase employment.
2. Gender Inequality
The inequality of opportunity between young men and women creates an imbalanced
society. In the oPt, traditional roles often exclude women from the labour market the
effect of which is disproportionately large on young women.
Contributing Factors
150
125
100
75
50
25
0
15-24 25-34 35-44 45-54 55+
Age Group
10
"The Youth Talk: Perceptions of the Palestinian youth on their living conditions", Sharek Youth Forum, 2008, p. 29
11
Adapted from Labour Market Statistics, http://www.pcbs.gov.ps/_pcbs/labor/lab_cens_lab_c5.aspx (accessed 15/07/2009), 2009, PCBS
12
The Palestinian Basic Law, Article 25, 2003, http://www.palestinianbasiclaw.org/2003-amended-basic-law (accessed 15/07/2009)
9
empowers women economically and points to an inability of the authorities to
enforce the non-discrimination legislation in place. Women acquire
proportionately more education than men, yet they remain excluded from the
labour market13. Finally, given that only 2% of employees are young women
aged 15-24, while 24% are young men aged 15-24 and that the average
percentage of employees who are female is 11%11, it is evident that women
are not simply under-represented generally, but also that young women are
disproportionately under-represented compared to the average for women.
Average Daily Wages (in NIS) for Wage Employees
100
Average Daily Wage (NIS)
75
50
25
0
2000 2001 2002 2003 2004 2005 2006 2007 2008
Year
Male Female
14
Source: Adapted from Labour Market Statistics, 2009 , PCBS
13
"The overall rate of female enrolment in secondary education amounted to 75.7%, in comparison with 67.6% for males. Females
constitute half the number of students enrolled in universities, as the rate of enrolment in higher education was 107 females for every
100 males in 2004-2005.", "Women in the Palestinian Labour Market",
http://www.pwrdc.ps/PDF/Palestinian%20Women%20and%20the%20Labor%20Market.pdf (accessed 15/07/2009), PWRDC, 2009
14
Adapted from Labour Market Statistics, http://www.pcbs.gov.ps/DesktopDefault.aspx?tabID=4112&lang=en (accessed 15/07/2009), 200914, PCBS
15
In 2000, the median age for marriage for women was 19.0 and for men 24.1. From Population Statistics,
http://www.pcbs.gov.ps/Portals/_pcbs/child/demogrph.aspx (accessed 26/07/2009), PCBS
16
From Gender-focused Statistics, http://www.pcbs.gov.ps/Portals/_pcbs/gender/tim1.htm (accessed 19/07/2009), 2007, PCBS
10
fact that these offer the most interesting and beneficial options to them. Meanwhile
entrepreneurial opportunities are not easily exploited as the West Bank and Gaza Strip
are ranked 172 out of 181 in the world for ease of starting a business by the World
Bank17.
3.1 Occupation
The occupation is the central barrier for new businesses being started. In the
Gaza Strip, in particular, the occupation prevents viable small businesses
from starting up by making procurement of materials and machinery almost
impossible. In the West Bank, such resources are available but the trading
potential is limited and the economic decline caused by the fragmentation
and security restrictions hinder the progress of start-up businesses. Finally,
for young people in particular, travelling around for any reason is at best slow
and unpredictable. At worst, it is impossible.
17
"Doing Business", http://www.doingbusiness.org/CustomQuery/ (accessed 21/07/2009), World Bank, 2009
18
See graph below. The cost of starting a business as a percentage of income per capita was 96.6% in 2008. This compares to 0.7%
for the USA, 4.4% for Israel. "Doing Business", http://www.doingbusiness.org/CustomQuery/ (accessed 21/07/2009), World Bank, 2009
11
Cost of Starting a Business in 2008
200
178.8
Cost (% of income per capita)
150
96.6
100
66.2
62.1
49.4
50
28.6
18.7
5.9 10.6
0.7 4.4
0.3
0
Average MENA
United States
Israel
Italy
Ireland
Jordan
Yemen
Average OECD
Average WORLD
Egypt
Qatar
100
92
Time (days) or Number of Procedures
Time (days)
Procedures (number)
75
63
50 43
33 34
25
14 15
13 13
9
6 6
0
Average OECD
Average MENA
Ireland
Jordan
Average
Israel
Italy
Qatar
Yemen
Egypt
United States
WORLD
19
"Doing Business", http://www.doingbusiness.org/CustomQuery/ (accessed 21/07/2009), World Bank, 2009
20
Anecdotal evidence collected by Sharek Youth Forum's Business Support Units during evaluation of a business start-up project giving
financial support, training and business counselling suggested that youths given grants and training would still prefer to seek illegal work
in Israel.
13
necessarily try as hard as they might to create innovative businesses
because they can always fall back to a dependent state.
3.11 Competition
For youth in the oPt, dominant competition comes from four sources: Israeli
imports, large local businesses with closed distribution networks, OECD
imports and the rest of the world (including Turkey and China). The cost of
competing with any one of these groups makes it almost impossible without
personal connections or funding. Remaining opportunities are, therefore,
limited to completely innovative products or ultra-competitive service sector
niches such as grocery shops, mini-markets, micro-factories and agriculture.
This is reflected in the economic structure (see 1.2) The latter is the most
common but also attracts the lowest margins and so prevents the youth from
growing their businesses sufficiently to enter a more profitable market.
Contributing Factors
4.1 Occupation
The most disruptive element of the occupation with respect to education is
the security restrictions including movement restrictions. For a young person
studying at a university less than 1 hour away, perhaps in a village near
Nablus, the journey each day may involve long waits at checkpoints. This
makes studying much harder than it needs to be. Meanwhile, the difficulties
faced in travelling to other countries, combined with the lack of international
exposure further hinders the quality of the education in the oPt. Finally, the
occupation makes life unpleasant and forces people to study abroad. If they
do return, these young people are better educated and more experienced.
The same advantages of studying abroad are almost impossible to attain in
the oPt and as such those who cannot afford to are faced with even more
limited opportunities.
4.5 Cost
There are two central elements to the cost-challenge in the oPt. The first is
the cost of higher education. Many families can afford to pay tuition fees,
while many cannot. While proposals for universal free higher education have
been made, the cost are prohibitive and there is a clear need to counter the
widening inequality between rich and poor through education. The second
element to the problem is the training and capacity building that dominates
NGO interventions. While training budgets and the resulting industry that
depends on them are inflated, the cost to trainees is almost always zero.
This creates a skewed incentive to attend training and a skewed market for it
both of which lead to low quality. Invariably, training has little or no long term
impact on the trainees despite the vast costs associated with it.
21
"The Youth Talk: Perceptions of the Palestinian youth on their living conditions", Sharek Youth Forum, 2008, p. 56-57
15
economic opportunities available in the oPt creates a problematic imbalance
in expectations.
Contributing factors
5.1 Occupation
While occupation is not the sole cause of any problem in the oPt, with
respect to Youth Employment and the economy in general, the occupation is
the most significant systemic barrier in place to a solution. Even when it
does not directly create a problem, the occupation is hindering a solution.
Specifically, it illegally creates barriers to economic development including
settlements, settlement infrastructure and the separation wall23. It uses the
tools of occupation to create economic barriers, including checkpoints,
security restrictions and the blockade of Gaza. Finally, it creates uncertainty
and dependency both of which stifle the private sector. Its removal would
lead to significant self-generated improvements in the employment situation
for youth.
22
Supported by anecdotal evidence from Sharek Youth Forum's experience providing careers services in universities and Injaaz's
experience providing careers services in secondary schools. Both are providing excellent services but are not able to offer sufficient
coverage for all young people.
23
Settlements in occupied territory and any infrastructure created to serve those settlements are illegal according to International
Humanitarian Law to which Israel is a signatory. UN Security Council, Resolution 465, 1980
16
5.2 Lack of a comprehensive national youth strategy and in particular a
national youth employment strategy
The current document seeks to address directly this problem which until now
has persisted. The lack of a coordinated strategy combined with the regular
donor-funded projects leads to duplication, poor targeting of beneficiaries and
avoidance of the highest priority problems. If a comprehensive strategic
approach was adopted, many of the problems outlined in this paper would
already have been addressed.
24
1995 Palestinian Elections Law, www.palestinianbasiclaw.org/downloads/1995-elections-law.pdf (accessed 26/07/2009)
25
The youngest member is Moshir el-Masri, born 1978. "The Palestinian Legislative Council, A Handbook", The Washington Institute,
http://www.washingtoninstitute.org/html/pdf/PLCHandbook.pdf (accessed 26/07/2009)
26
Estimations from PCBS population statistics, PCBS, 2009
27
Youth was even combined with prisoners' affairs in the emergency cabinet in 2009
(http://www.jpost.com/servlet/Satellite?pagename=JPost%2FJPArticle%2FShowFull&cid=1181813054710, accessed 11/08/2009).
Previous cabinets listed at the
Jerusalem Media and Communication Centre, http://www.jmcc.org/politics/pna/pagovfeb05.htm (accessed 11/08/2009).
28
The youth comprised about 27% of the total population of whom 40% were adolescents (15-19) and 40% where 60% were young
people (20-29). "Palestine Youth: Figures and Statistics", Sharek Youth Forum et al, 2007, p. 1
17
Recommendations
Introduction
It is with some hesitancy that STEP FORWARD and Sharek Youth Forum take on the vast
task of putting forward recommendations to address the host of problems identified above.
We are more than aware of the complexity of the task ahead but we face it with open eyes
and open arms. We acknowledge our limitations in knowledge and capacity. We have not
however, limited our ambition. We invite our colleagues in youth organisations, national
and international NGOs, government ministries, national and international institutions and
of course, the private sector to join us in setting out a clear action plan to take Palestinian
youth forward. So, although we may have made mistakes, we hope that by beginning the
discussion and continuing it together, we will reach the right conclusion.
Structure
The section broadly reflects the problem analysis and the identifying numbers (such as 1.4
or 3.2) match up. The problem analysis is both an overview of the situation and a
reference to inform the discussions on the recommendations. Where factors are omitted
from the recommendations section, it indicates that no recommendations have been
suggested. For example, with reference to occupation, no recommendations have been
made since only the end of the occupation will solve the problem and this goes beyond the
scope of this white paper.
Each factor is taken in turn. A rough estimate is given regarding the possible cost (where
1 is almost without cost and 10 is in excess of millions of dollars) and the time (where 1 is
almost instant and 10 is on the 3-5 year timescale). Pre-requisite factors are those
necessary to be solved prior to the implementation of the recommendations given.
Dependent factors, on the other hand, are those which depend on the implementation of
the recommendations connected with the factor under consideration. The numbers match
those of factors listed in the problem analysis.
18
Problem 1 Poor Economic Performance
1.1 -
No recommendations
Occupation
9 9 1.1, 1.6, 1.8, 2.1 1.4, 1.5, 1.6, 1.9, 3.1, 4.3
19
Cost Band Time Band Pre-requisite Factors Dependent Factors
20
Cost Band Time Band Pre-requisite Factors Dependent Factors
1.6 -
Technological No recommendations
Development
1.7 - Import
No recommendations
restrictions
21
Cost Band Time Band Pre-requisite Factors Dependent Factors
Research and address the Research and implement Investment in Research into the most
supply-side causes of strategies to avoid creating efficiency measures to appropriate measures to
inflation inflation with foreign aid cut costs reduce imported inflation
5 2 1.5
1.10 - Skills
and Training Government Youth Organisations Private Sector International
22
Problem 2 Gender Inequality
23
Cost Band Time Band Pre-requisite Factors Dependent Factors
Coordination between
ministries responsible for
youth and women
Public ranking for
Provide legal aid for female
Introduce clear penalties for companies adherence
workers
breaking this law to the legislation
Mainstream gender-sensitive
education
24
Cost Band Time Band Pre-requisite Factors Dependent Factors
Establish two-way
2.3 - Opacity of employment promotion Awareness raising campaign
the role of service on the role of women in
women and employment
Strengthen women's
underemploym
business networks
ent
Review the classification of Organise forums for
unemployment statistics unemployed young women
Organise regular projects for
Tracking graduates to identify unemployed and
ongoing needs underemployed young women
building their capacity
Use community networks to
identify young women who
would like to work
25
Problem 3 Exclusion from Entrepreneurial Opportunity
3.1 -
No recommendations
Occupation
26
Cost Band Time Band Pre-requisite Factors Dependent Factors
Increase social
responsibility activities
Effective guidance of youth Effective guidance of youth
and refocus towards
towards high potential sectors towards high potential sectors
provision of Business
Development Services
27
Cost Band Time Band Pre-requisite Factors Dependent Factors
Creation of innovative
Ease regulations financing schemes for youth
business Creation of a fund for Support research into
youth to launch community investment funds
Provide youth specific innovative businesses managed by professionals
Introduce compulsory programmes to support
financial education in schools access to micro- and
commercial-finance
3.5 - Lack of Cost Band Time Band Pre-requisite Factors Dependent Factors
access to
markets 4 3 1.4, 3.1 3.11
28
International market access
Establish and build up local
programmes for youth
market infrastructure
businesses
29
Cost Band Time Band Pre-requisite Factors Dependent Factors
4 4 3.4
Establish a monitoring
Introduce specific rules and
system to monitor
incentives for youth
improvement and progress in
businesses
improving the system
30
Cost Band Time Band Pre-requisite Factors Dependent Factors
Establish business
Organise campaigns to
3.9 - Culture Incentives to start a business networking clubs with
promote youth enterprise and
and attitudes in marginalised areas membership open to
support young entrepreneurs
youth
Motivational business-
Campaign against work in
focused capacity building for Establish
illegal settlements
apathetic youth entrepreneurs'
volunteer mentor
Introduce business and Research and development programme
entrepreneurship elements at of business ideas which
all education levels capable youth can take up
3.10 - Capital Cost Band Time Band Pre-requisite Factors Dependent Factors
or technology
intensity 7 8 3.1, 3.4, 3.7
31
Provision of capital and
technology at favourable rates
32
Problem 4 Education and Training
4.1 -
No recommendations
Occupation
4.2 - Gap Cost Band Time Band Pre-requisite Factors Dependent Factors
between
education and 4 5 4.4, 4.8, 5.2
the labour
market Government Youth Organisations Private Sector International
33
Provision of systematic
career guidance
4.3 - Economic
No recommendations
structure
4.4 - Over- Cost Band Time Band Pre-requisite Factors Dependent Factors
academic
courses 4 5 4.6, 5.2, 5.3 4.2
34
Establish enterprise clubs in
schools and universities
4.5 - Cost Cost Band Time Band Pre-requisite Factors Dependent Factors
5 3 5.3
35
Cost Band Time Band Pre-requisite Factors Dependent Factors
37
service delivery, information
kiosks
38
Problem 5 Barriers created by failures in the system
5.1 -
No recommendations
Occupation
1 1 5.3 1.3, 2.2, 2.3, 3.4, 3.7, 4.2, 4.4, 4.6, 4.7, 4.8, 5.4, 5.5
39
and needs into
macroeconomic policies
1 3 2.3, 3.3, 3.7, 3.9, 4.4, 4.5, 4.7, 4.8, 5.2, 5.4
40
Cost Band Time Band Pre-requisite Factors Dependent Factors
41
Cost Band Time Band Pre-requisite Factors Dependent Factors
3 7 5.2, 5.4 1.3, 1.5, 2.2, 3.3, 3.6, 3.9, 4.8, 5.4
42
Appendix A:
Meaning of Items in Recommendations Section Tables
Problem:
The main problem to be addressed connected to the problem analysis
Contributing factor:
The element of the problem that the recommendations address connected to the
problem analysis by the identifying number (eg. 3.2 or 1.4)
Cost Band:
An estimate of the cost, where 1 is almost zero and 10 is in the millions of dollars
Time Band:
An estimate of the time needed to implement all of the recommendations, where 1
is almost immediate and 10 is 3-5 years
Pre-requisite Factors:
Contributing factors to this and other problems that are important or required to be
solved before this contributing factor can be addressed comprehensively
Dependent Factors:
Contributing factors to this and other problems that depend on this factor being
addressed
Government:
Includes the executive (including ministries), legislature and the judiciary as well as
educational institutions or other government run institutions.
Civil Society:
Includes community-based organisations, national NGOs and international NGOs
that are working in the oPt.
Private Sector:
Includes micro, small, medium-sized and national companies, private institutions
and foundations
International:
Includes international NGOs, foreign governments, bilateral and multilateral donors
and international institutions.
43