A Future Skills Strategy for Bahrain _report4

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A Future Skills Strategy for Bahrain(2009 to 2016)

Skills Gaps Research Study

June 2009

Report to Tamkeen, Kingdom of Bahrain


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Disclaimer

INFORMATION ON WHICH THE SURVEY RESULTS ARE BASED

IS REPRESENTATIVE OF THE BEST INFORMATION AVAILABLE

AT THE TIME OF THE STUDYS FIELDWORK, CONSULTATIONS

AND PUBLICATION. ALTHOUGH GREAT CARE WAS TAKEN TO

ENSURE DATA QUALITY, LABOUR FUND (TAMKEEN) DOES

NOT GUARANTEE THE ACCURACY OR COMPLETENESS OF THE

SURVEY OR OF ANY INFORMATION PRESENTED HERE.

NEITHER THE LABOUR FUND (TAMKEEN) NOR ANY AGENCYTHEREOF, NOR ANY OF THEIR EMPLOYEES NOR ANY OF THEIR

CONTRACTORS, MAKES ANY WARRANTY, EXPRESS OR

IMPLIED, OR ASSUMES LEGAL LIABILITY OR RESPONSIBILITY

FOR THE ACCURACY, COMPLETENESS OR ANY THIRD

PARTYS USE OF THE INFORMATION CONTAINED IN THIS

DOCUMENT.


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The Allen Consulting Group ii

The Allen Consulting Group Pty Lt d

ACN 007 061 930, ABN 52 007 061 930

Melbourne

Level 9, 60 Collins St

Melbourne VIC 3000

Telephone: (61-3) 8650 6000

Facsimile: (61-3) 9654 6363

Sydney

Level 12, 210 George St

Sydney NSW 2000

Telephone: (61-2) 8272 5100

Facsimile: (61-2) 9247 2455

Canberra

Empire Chambers, Level 2, 1-13 University Ave

Canberra ACT 2600

GPO Box 418, Canberra ACT 2601

Telephone: (61-2) 6204 6500

Facsimile: (61-2) 6230 0149

Perth

Level 21, 44 St Georges Tc e

Perth WA 6000

Telephone: (61-8) 6211 0900

Facsimile: (61-8) 9221 9922

Online

Email: [email protected]

Website: www.allenconsult.com.au

Suggested citation for this report:

Allen Consulting Group 2009, Skills Gaps Research Study: Final Report A future strategy

for Bahrain (2009 to 2016), Canberra, Aus trali a.

Disclaimer:

While the Allen Consulting Group endeavours to provide reliable analysis and believes the

material it presents is accurate, it will not be liable for any claim by any party acting on such

information.

The Allen Consulting Group 2009
mailto:[email protected]://www.allenconsult.com.au/http://www.allenconsult.com.au/mailto:[email protected]


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The Allen Consulting Group iii

Contents

Glossary

Report overview

vi

1

Future Skills Strategy: Vision and goals 1

The need for a Future Skills Strategy 3

Skills gaps in Bahrain 4

Implementation challenges 5

Four key focus areas 6

Future Skills Strategy: Assessing performance 12

Chapter 1 15

Introduction 15

1.1 Background to the study 15

1.2 Skills Gaps Research Study 17

1.3 Methodology for this report 19

Chapter 2 23

A future skills strategy for Bahrain 23

2.1 Rationale for a skills strategy 23

2.2 The future Bahrain labour market 24

2.3 Future skills strategy 262.4 Four focus areas 28

2.5 Possible solutions 29

Chapter 3 30

Overall skills initiatives for Bahrain 30

3.1 Introduction 30

3.2 Better matching of labour supply to labour demand 31

3.3 A national vocational apprenticeship program 34

3.4 A national transitions framework and careers education 35

3.5

Short courses and programs

36

3.6 National internship and scholarship programs 36

3.7 Investment in joint initiatives 37

Chapter 4 38

Focus area 1 !manufacturing 38

4.1 Manufacturing overview 38

4.2 Future labour market 38

4.3 Proposed solutions 40


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The Allen Consulting Group iv

4.4 Short-term proposed solutions (2009-2012) 40

4.5 Long-term proposed solutions 46

4.6 Summary 52

Chapter 5 53

Focus area 2 !health 535.1 Health overview 53



5.4 Short-term proposed solutions (2009 to 2012) 55

5.5 Long-term proposed solutions (2012 to 2016) 61

5.6 Summary 63

Chapter 6 65

Focus area 3 !tourism and hospitality 65

6.1 Tourism and hospitality overview 65





6.6 Summary 78

Chapter 7 80

Focus area 4 !a strong infrastructure and service base 80

7.1 Overview 80


7.3 Proposed solutions 827.4 Short-term proposed solutions (2009 to 2012) 82


7.6 Summary 89

Chapter 8 91

Education 91

8.1 Education overview 91



Chapter 9 94

Transport and logistics 94

9.1 Transport and logistics overview 94





9.6 Summary 104


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The Allen Consulting Group v

Chapter 10 106Construction 106

10.1 Construction overview 106



10.4 Short-term proposed solutions (2009 to 2012) 10910.5 Long-term proposed solutions (2012 to 2016) 115

10.6 Summary 116

Chapter 11 118Trade 118

11.1 Trade overview 118




11.5 Long-term proposed solutions (2012 to 2016)

123

11.6 Summary 125

Appendix A

Criteria for proposed solutions127

127

Appendix B 130References 130


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The Allen Consulting Group vi

S K I L L S G A P S R E S E A R C H S T U D Y : A F U T U R E S K I L L S S T R A T E G Y F O R B A H R A I N

Glossary

BAPCO Bahrain Petroleum Company

BCCI Bahrain Chamber of Commerce and Industry

BIHM Baisan Institute of Hospitality Management

BIRD Bahrain International Retail Development

BLZ Bahrain Logistics Zone

BTI Bahrain Training Institute

CPP Career Progression Programme

CSB Civil Service Bureau

DMS Document Management System

EDB Economic Development Board

GDP Gross Domestic Product

GOSI General Organisation for Social Insurance

GPIC Gulf Petrochemical Industries Company

IATA International Air Transport Association

IBSA Innovation and Business Skills Australia

IHT International Health Tourism

ILO International Labour Organization

IMF International Monetary Fund

LMRA Labour Market Regulatory Authority

NESS UK National Employer Skills Survey

NIE National Institute of Education

OECD Organization for Economic Co-operation and

Development

RCSI Royal College of Surgeons Ireland

RPL Recognition of Prior Learning

SCTH Specific Council for Training and Hospitality

SME Small Medium Enterprises

TNA Training Needs Analysis

UB University of Bahrain

UNCTAD United Nations Conference on Trade and Development

UNESCO United Nations Educational, Scientific and Cultural

Organization

UTS University of Technology Sydney


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Report overview

It should be noted by the reader that the data for the Skills Gaps Research Study

was collected during 2008 with the conclusions being finalised in June 2009. This

data is relevant to each of the four reports in the series of the Skills Gaps ResearchStudy.

Tamkeen has commissioned the Allen Consulting Group to conduct a

comprehensive study to analyse current skills in Bahrains labour market, as well as

future and emerging skills requirements, and to assess any current or projected

skills gaps. The key output of this study is a Future Skills Strategy (2009-2016).

Future Skills Strategy: Vision and goals

The Allen Consulting Group propose a Future Skills Strategy (2009-2016) that is

based on the key objectives of Bahrains Economic Vision: 2030, with some

additional development around how these objectives can be met through skills

development. This vision is one that:

" continues and builds on Bahrains national competitiveness ! especially

within the Gulf States, through improving the skills competency of the labour

force

" enables Bahrain to be the preferred country within the region to create and

grow a business ! through increased Bahraini labour force participation and

building on and improving the skills base of Bahraini workers

" contributes to improved social cohesion and inclusion ! by increasing the

skills and participation of Bahraini women and improving the productivity of

low-skilled workers in the labour market, with an intent to contribute to an

increase in income per capita to 2015.

The Future Skills Strategy (2009-2016), including the strategys vision and goals is

illustrated in Figure 1.


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Figure 1

FUTURE SKILLS STRATEGY (2009-2016)

Source: (Allen Consulting Group and Eidos).

In order to move in the direction of this vision, the Future Skills Strategy is based

on seven goals. These goals include a Future Skills Strategy that:

" builds on current skills initiatives ! that are making a significant contribution

to closing overall and sector-specific skills gaps, through strengthening and

refinement

" improves the skills competency of the labour force in prioritised economic

sectors ! each sector has its own unique requirements and there are some

sectors where the requirements for future skills are particularly acute. Further,

some sectors requiring a focus on specific technical skills for highly-skilled

workers, while other sectors require broad based foundational skills

improvement for low-skilled workers


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" improves Bahraini labour force participation ! in line with the key goals of

the National Strategy for Bahrain to ensure that labour reform is based on

Bahrainis as the employees of choice for the growing private sector

" better meets the need of labour demand ! through a flexible approach so that

the labour market and educational institutions can adjust to changing demands

and emerging needs

" enables a responsive labour market ! with business, government, the

education system and workers providing input into the strategys success.

Including to ensure that initiatives and action plans are well understood,

accepted and #ownedby these key stakeholders

" contributes to an improved eduction and training system ! one that achieves

outcomes (skills development) required to improve productivity in all sectors

of the economy

" monitors performance ! using the data from this study as a base, an ongoing

process of monitoring of progress towards goals and evaluation is in place to

ensure that continuous improvement is sought in light of the input for theresponsive labour market and review.

These goals have been developed based on the key principle that through their

achievement, the goals help to meet the vision outlined above. In order to determine

the appropriate set of goals, information was drawn from the inputs of the study (for

example, stakeholder consultations and international literature) and the intellectual

property of the Allen Consulting Group and Eidos project team to create a list of

potential goals. From this initial task, those goals that best met the key principle,

and would most likely help to meet the strategys vision, were selected to form the

basis of the Future Skills Strategy.

Envisaging the achievement of the seven goals, the overall impacts of the Future

Skills Strategy (as shown in Figure 1) are to:

" improve the overall skills competencies in the Bahrain labour market

" improve the stability of the labour market in the medium to long-term

" to improve the quality of life for people in Bahrain, through social cohesion

and inclusion.

The need for a Future Skills Strategy

A Future Skills Strategy is essential to support skills development to address labour

shortages in key occupations across Bahrain. Understanding and capturing the skills

and workforce needs of employers, and industry and translating them into future

strategies lie at the centre of a responsive and flexible system for skill and

workforce development.

However, these will be managed through a commitment to a strong and integrated

process, which meets the needs of industry and employers. The key drivers of this

strategy are:

" skills gaps in Bahrain at both the high and low end of the labour market

" a high expatriate workforce


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" changed industry requirements not reflected in the education system

" that the labour market is increasingly competitive

" that each of the identified sectors have different needs

" that sectors with low skills gaps have a high level of Bahraini employment

" to prioritise key areas to prevent dilution of effort.

Skills gaps in Bahrain

As identified above, one of the key factors that drive the need for the Future Skills

Strategy is that there are skills gaps present in the Bahrain labour market.

The international evidence suggests that global skills shortages are emerging at the

high and low end of the skills spectrum ! producing a polarised labour market

where there will be increasing demand for both manual/craft oriented skills and

higher level skills based on advanced computational skills and abstract thinking.

In addition, it is likely that there will be growing competition internationally toattract skilled labour. In the future, Bahrain will compete with other GCC States,

the United States, Western Europe, India and China for skilled labour. With an

increasingly mobile labour force, additional pressure will be placed on economies,

like Bahrain, that rely on imported foreign labour for both high and low skilled

workers (see Report 1 for greater detail on the international evidence on global

skills shortages and the growing competition for skilled labour).

This study shows that these international trends in skills gaps/shortages hold true in

Bahrain. In particular, the findings of the employer and employee surveys (which

are detailed for each economic sector in Report 2) undertaken as part of this study,

show the following:

" there are skills gaps at both ends of the skills spectrum, higher than demand formiddle management or intermediate skills

" there are skills gaps for broadly based skills in areas such as communication,

English language and customer relations skills. This suggests that the demand

for foundational, broad-based skills is high, more so than specific technical

skills and that a focus on skills development should be in this area

" a lack of vocationally trained $work ready graduates to fill existing vacancies

and to cater for future growth

" a growing number of female university graduates seeking highly skilled

positions in a number of economic sectors

" Bahraini graduates and employees have a preference to work in specific

sectors ! for example, in public administration, business services, and finance

and banking. There was a lower preference (and potential future participation)

in other sectors, such as tourism and hospitality, manufacturing and

construction. Financial, cultural and perceived work environment factors were

identified as the major reasons behind these preferences.

Further, some of these findings have also been drawn from the outcomes of the

Skills Gaps Conference and scenario planning activity, both of which are detailed in

Report 3.


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In addition to these findings, it is important to note that the occupational analysis,

drawn from the employer survey, highlighted a number of specific occupations that

will be in demand over the next 3 years (see Report 2 for further information by

economic sector). These identified occupations cover the spectrum of skills needs

! for highly skilled technicians to employees with a need for greater foundational

skills. This information together with the findings from the employer survey itself

re-iterates the need for skills development in both the high and low ends of the

skills spectrum.

Bahrain faces similar skills and labour challenges as it GCC neighbours ! it is very

similar in terms of the age profile of the labour force, expatriate workforce

composition and unemployment trends. Where the difference is most marked is in

the makeup of employment ! Bahrain has a more diverse workforce than its

neighbours, which provides an opportunity to carve out a distinctive competitive

position (see Report 1 for greater detail on the demographics of Bahrains labour

force compared to other GCC States).

The present global economic crisis will in the immediate future mask the

underlying trends, with a prospect of a return to rising global unemployment in the

next three to five years. As mentioned above, over the longer term, the likelihood is

that there will be increased competition for skilled labour globally. This places an

even greater premium on the importance of taking advantage of current economic

conditions to build future skills for the Kingdom of Bahrain.

Key proposals have been utilised in the strategy with an aim to address the problem

of skills gaps in the labour market. These proposals include:

" better matching of labour supply and labour demand

" introducing a national vocational apprenticeship program

" a national transitions framework and careers education

" increasing the number of short courses and programs

" expanding the national internship and scholarship program

" investing in joint education initiatives with international universities.

The evidence of skills gaps in Bahrain, in addition to the presence of the other key

drivers identified above highlight the skills problem that faces Bahrains labour

market. Key proposals have been identified that will enable clear action to be taken

to address this problem, for which the Future Skills Strategy provides guidance and

planning.

Implementation challenges

This Report provides a series of proposed detailed actions to be undertaken in both

the short-term and the long-term future in order to address skills gaps, in line with

the strategy outlined previously. Implementing these actions will be challenging:

they will require a strong commitment of time and attention; financial and staffing

resources; political, industry and community support; and ongoing data collection

so as to track progress in achieving desired outcomes.


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The main challenges identified in earlier reports were based on evidence from focus

groups, interviews and scenario planning. They included:

" teaching is a relatively low status profession % a characteristic of many

developed economies, not only Bahrain (see Report 2, p. 51). This will be

constraint on the action plans. A shortage of skilled, high quality teaching and

training professionals will limit the capacity of Bahrain to fill skills gapsthrough education programs, whether in the school and higher education

sectors directly or through short courses

" engagement of skilled staff can be time consuming and complex (for example,

see Report 2, p. 83, in relation to health professionals)

" reported poor working conditions in some sectors (for example construction,

see Report 2 page 124) were seen as discouraging Bahrainis from working in

the sector

" some sectors such as tourism and hospitality have difficulty attracting a skilled

workforce for cultural reasons: for example, where positions involve working

with alcohol or extensive contact with non-Muslim customers; skills formationwill not be able to address these deeper concerns (Report 2, chapter 14).

These concerns were also important considerations in a high-level scenario analysis

and canvassed in a regional conference on skills (see Report 3).

The most important strategy for addressing the challenges % especially, limitations

on the capacity to implement actions due to a shortage of training staff % is to set

priorities so as to allocate limited resources to their most valuable use. The

following two sections of this Report provide more detail on this approach.

Four key focus areas

For this action to take place, some level of prioritisation needs to be included toensure that this action is in sectors where there is likely to be the most benefit to the

labour market and economy as a whole. Prioritisation is especially important given

it is clear that the labour market is increasingly competitive and that different

sectors have different skills needs.

For the purposes of this strategy, prioritisation will focus on those sectors where

there is an acute skills gap and that are expected to be key strategic sectors in the

future. In order to determine key focus areas (economic sectors), a subjective

assessment was undertaken on sectors that best meet the following criteria:

" a significant contribution to economic growth

"

significant skills gaps" solid current strengths and future opportunities for skill development

" potential of skills formation to enhance Bahrains international

competitiveness

" consistency with the Economic Vision 2030.

Education reform will have significant impact on relevant skills gaps. However, for

all economic sectors, this impact of changes to the education system was assessed

as high and was constant across the key focus areas.


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Using these criteria as a subjective assessment tool, the following sectors were

identified to be the key focus areas under the Future Skills Strategy:

" health

" manufacturing

" tourism and hospitality

" infrastructure and service (including public administration, business services,

telecommunications and information technology).

Possible solutions under each of these focus areas were developed (some possible

solutions were also developed for the other economic sectors) to create action plans.

To identify, out of all of the possible solutions, which should be selected as part of

the Future Skills Strategy, a similar subjective assessment approach to identify the

key focus areas (described above) was used. In this case, possible solutions were

selected based on those that best met the following six selection criteria

(see Appendix A for further information):

" meets a goal (or goals) of the strategy

" is achievable

" is likely to be cost-effective

" has some support among stakeholders consulted

" provides an outcome quickly

" aids development of a strong private sector.

Each of the key focus areas, the possible solutions (short-term and long-term) that

form sectoral $action plans, and how these solutions address the goals of the

strategy are summarised below.


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Manufactur ing

The manufacturing sector was selected as the first key focus area because it is

expected to have a high contribution to economic growth, has high levels of skills

gaps, a moderate number of current strengths and future opportunities for skills

development, and is also a sector that holds consistency with the Economic Vision

2030. The possible solutions for the manufacturing sector are illustrated in Figure 2.

Figure 2

POSSIBLE SOLUTIONS MANUFACTURING



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Health

The health sector was selected as the second key focus area because it is expected

to have a moderate contribution to economic growth, has high levels of skills gaps,

a number of solid current strengths and future opportunities for skills development,

and is a sector that holds consistency with the Economic Vision 2030. The possible

solutions for the health sector are illustrated in Figure 3.

Figure 3

POSSIBLE SOLUTIONS HEALTH



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Tourism and Hospita l i ty

The tourism and hospitality sector was selected as the third key focus area because

it is expected to have a moderate contribution to economic growth, has high levels

of skills gaps, a number of solid current strengths and future opportunities for skills

development, and is also a sector that is consistent with the Economic Vision 2030.

The possible solutions for the tourism and hospitality sector are illustrated inFigure 4.

Figure 4

POSSIBLE SOLUTIONS TOURISM AND HOSPITALITY



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Inf rastructure and service

The groups of sectors that make up the final key focus area ! infrastructure and

service include:

" public administrat ion

" business services

" telecommunications

" information technology.

As a group, this key area was selected because it is expected to have a high

contribution to economic growth, has moderate levels of skills gaps, extensive solid

current strengths and future opportunities for skills development, and is also a

sector that is vital to the Economic Vision 2030. The possible solutions for the

infrastructure and service key focus area are illustrated in Figure 5.

Figure 5

POSSIBLE SOLUTIONS

INFRASTRUCTURE AND SERVICE



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Future Skills Strategy: Assessing performance

The Skills Strategy presents an integrated set of solutions aimed at developing a

continuous improvement cycle for review. The following elements should be

undertaken in a disciplined manner to monitor performance:

"

performance management

" performance indicators

" continuous improvement

" review.

Tamkeen will continue to measure the performance of the Skills Strategy over the

lifetime of the strategy. Quantifiable performance measures will allow a true

indication of Bahrains performance.

Implementation of the Skills Strategy will follow an annual cycle to 2016. The

implementation cycle will incorporate yearly updates of the Skills Strategy,

including the announcement of any new initiatives. Tamkeen will maintainresponsibility for updating and maintaining the currency of the Skills Strategy.

The active involvement of Tamkeen allows for the first time in Bahrain, a strategic

approach to skills development and highlights a need in Bahrain to act across a set

of targeted areas. Many of the possible solutions are demanding and a coordinated

and concerted effort by employers, education institutes, industry and the

government will be required to meet them. Collaboration in the development and

implementation of skills, infrastructure and innovation strategies will continue

throughout the life of the Skills Strategy.

The Skills Strategy will drive Bahrains skills development activity alongside other

key strategies being developed, such as those from the Economic Development

Board and other educational institutions.

Foundat ional ski l ls and educat ion

A skills gaps strategy needs to strike an appropriate balance between skills

identified as important for specific industry sectors, and broadly based skills that

have general applicability across a range of sectors. Both are important for building

a highly skilled, competitive labour force. As identified in the United Kingdom

Report Prosperity for all in the global economy - world class skills (the Leitch

review of skills):

There are a large number of different types of skills and they can be split into a number of

different categories. Basic skills, such as literacy and numeracy, and generic skills, such as

team working and communication, are applicable in most jobs. Specific skills tend to be less

transferable between occupations. (Leitch, 2006)

As outlined in Report 2, the data derived from interviews, focus groups and surveys

strongly support a conclusion that basic and generic skills are in high demand. In

the context of Bahrain, a more accurate term might be foundational skills.

Foundation skills are those that Bahraini employers see as providing a firm base on

which further industry specific skills can be built, either through training courses or

through on-the-job learning. A summary of these findings is in Box 1.1 below.


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Box 1.1

FOUNDATIONAL SKILLS ! FINDINGS FROM REPORT 2

In the education sector, the most commonly identified skills required by private education

providers were communications skills (15 per cent of those surveyed) and leadership and

management skills (also 15 per cent). The top skill sets identified by employees as

highly important to their work were literacy, work communication, checking skills,

problem solving skills and customer communication.

In health, although a technical sector where specialized skills were in high demand, there

was nevertheless strong demand for management skills, and identification by health

education institutions that English language skills were in need of development for a

significant number of students.

The public sector was one where comparatively skills gaps were lower (due to the high

skills profile and level of Bahra inisation in the sector); here the foundational skills in most

demand were management and leadership skills.

Survey participants in the construction sector identified communications, problem solving

and checking skills as in high demand; employers noted that technical know-how and

physical skills were the most important needs, but these were followed by literacy and

work communications skills.

In the transport and logistics, information technology and telecommunications sectors,

aside from the high level technology skills required in these sectors, the most important

identified gap was in management skills.In business services and trade, the predominant foundational skills identified were

business communicat ions, literacy, and customer service skills (more frequently

identified in interview data than in other data source for these sectors).

Manufacturing skills gaps were identified in areas such as computational and

communications skills, although ! uniquely to this sector - there was a significant number

of responses identifying engineering as a crucial skills gap.

In tourism and hospitality, employers, employees and graduates surveyed identified

workforce communication and customer communication as key skills. Interviews and

focus groups strongly reinforced these findings.

Source: Surveys, interviews and focus groups

These results suggest that a skills strategy for Tamkeen will need to fosterfoundational skills as well as sector-specific training. A high level of foundational

skills in common across the Bahrain trained workforce would have the additional

benefit of encouraging labour market mobilit y, which will assist the Bahrain

economy to be more adaptive to changes in economic conditions. The foundational

skills in highest demand across all sectors were:

" management

" literacy

" communications

" customer relations.

The proportion of spending to be allocated to foundational skills, versus direct

industry skills, will need to be determined by the Tamkeen Board. As a starting

point for considerat ion, the evidence from stakeholder consultations would suggest

that a high proportion (for example, fifty per cent or more) of spending on skills

gaps should be targeted to meeting foundation skills needs.


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Part AIntroduction


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Chapter 1

Introduction

1.1 Background to the study

Tamkeen

Tamkeen (formerly Labour Fund) was founded in 2006 with the primary objectives

of developing the private sector and making Bahrainis the preferred choice for

employers. Tamkeens goal is to create high-value added jobs for Bahrainis.

Tamkeens strategy focuses on:

" capitalising and developing value added Bahraini talents and skills in

rewarding careers

" supporting the development and attraction of new and emerging industries

" enhancing and leveraging existing industries.

More recently Bahrain has taken vital steps towards comprehensive labour reform

aimed to develop its human capital, support the private sector and liberalise and

improve inherent market systems, standards or policies.

Successful reform of Bahrains labour market will affect the whole economy. In

particular, it will raise Bahraini living standards by challenging private and public

sector establishments to improve employment services, policies and standards and

the working conditions within Bahrain.

Econom y in brief

Bahrain has a long history as a regional centre for trade and commerce. In more

recent times, since the 1930s when oil was discovered, the countrys economic

prosperi ty has been based largely on oil revenues. These have been the main

contributors to national income over the past half-century. Oil revenues have

enabled development of extensive, high quality national infrastructure, and allowed

the government to provide Bahraini citizens with services such as free education

and free or very low cost health care, with minimal taxation. More recently, other

industry sectors ! notably banking and finance ! have become increasingly

important.

Bahrains policy makers have identified the need for longer-term investment

outside the oil sector, for two main reasons.

Firstly, there are the dangers of natural resource income distorting patterns of

economic development. Secondly, Bahrains oil resources are limited, and the

government has prudently sought to develop a strategy for a future where the

country will not be able to rely on oil as the major source of national income.

Current economic development strategies and initiatives aim to mitigate the

potentially significant impacts of this situation. Prominent among these to date, has

been the successful effort to develop Bahrain as a regional provider of financial

services and establish its position as a leader in Islamic banking and financial

services.


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Bahrains economic diversification strategy, shifting focus to non-oil sectors and

industrial and commercial success, has been making notable progress over the last

two decades. As a result, 75 per cent of Bahrains Gross Domestic Product (GDP)

in 2007 was attributable to non-oil sectors (Central Informatics Organisation 2008).

Among the economic successes of the nation, there remain some key issues that

have the potential to act as barriers to future economic diversification. An exampleis that income inequality is high compared to other developed nations with few

middle-income households and many low income households.

In addition, the labour market is expected to change significantly over the coming

decade. These changes include:

" new Bahrainis will enter the labour market, many of whom will be recent

graduates (from either high-school or post-secondary studies)

" an increasing number of Bahraini women will enter the labour market

" those currently unemployed and lacking skills to enter the labour market will

improve their skill base in order to participate in the workforce (Economic

Development Board 2004).

Continuing the aim of economic diversification, Bahrains Economic Development

Board (EDB) has been focussed on a sustainable future for Bahrain. In 2004, the

EDB launched a comprehensive National Strategy for Bahrain to ensure future

sustainability. This strategy aims to:

" re-capture Bahrains leadership position as the pre-eminent economy in the

region

" become the preferred country within the region to create and grow a business,

by both nationals and foreigners

"

achieve a more than two fold increase in income per capita by 2015 (EconomicDevelopment Board 2005).

The strategy consists of three components, which are outlined in Error! Reference

source not found..

Box 1.1

COMPONENTS OF THE NATIONAL STRATEGY FOR BAHRAIN

Enabling the private sector:

" the removal of barriers to growth such as access to capital, land, judicial and legal

infrastructures

" specific sector initiatives to accelerate growth in strategic sectors

" dedicated Small Medium Enterprise (SME) initiative and investment promotion.

Transforming government:

" reducing red tape

" moving from owner-operator to facilitator

" creating a modern civil service.

Investing in people:

" labour market reform

" education system reform.

Source: (Economic Development Board 2005)


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The reforms aim to ensure that the private sector is the driver of future growth in

Bahrain and that Bahrainis are the employees of choice for this growing private

sector (Economic Development Board 2005).

Bahrain has made a strong investment in education, skills and diversification. There

has been a rapid increase in educational standards since the 1980s, and at the same

time a strong increase in the size and value of the services sector. However, thereliance on foreign workers to address the shortage of skilled labour during a period

of rapid growth, perpetuated by mismatches between the profile of skills possessed

by Bahraini nationals and those required in the labour market, is a significant issue

to be addressed.

Economic observers (including the United Nations, IMF and others) have

commented on the importance of resource rich nations investing in human capital.

Bahrain has adopted a far-sighted program to do exactly this. This Skills Gaps

Research Study is one element of that broader strategy.

1.2 Skills Gaps Research Study

Tamkeen has commissioned the Allen Consulting Group to conduct a

comprehensive study to analyse current skills in Bahrains labour market, as well as

future and emerging skills requirements, and to assess any current or projected gaps

and needs.

The study aims to build on reforms in place and improve the quality and quantity of

skills being developed, in order to ensure that Bahrain maintains a strong

competitive economy and high quality of life.

The project will provide an information base to underpin strategies to improve

labour force participation, and responsiveness to the demand for skills using a

flexible, market based approach. The objectives of this project are outlined in Box

1.2.

Box 1.2

OBJECTIVES FOR THE SKILLS GAPS RESEARCH STUDY

1. To establish a detailed understanding of the current composition of the Bahraini

workforce " the deliverable at this stage will be a set of data on current labour

market conditions, skills and components.

2. To provide analysis of the gaps in the current skills makeup in light of projected future

demands. This will be identified on the basis of in depth analysis of the likely

demands from both current employers and prospective new industry sectors.

3. To develop a strategy for overcoming such gaps. The strategy will be based on the

most contemporary thinking in economics and labour market analysis.

4. Provide action plans that give clear guidance for identified priority sectors on how to

implement the strategic directions proposed.

These objectives have been addressed in a series of four related reports (see Box

1.3).


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Box 1.3

SKILLS GAPS RESEARCH STUDY REPORTS

Report 1: Skills Gaps Research Study: A Comparable Country Scan:

This report provides an outline of the international environment in which Bahrain

operates and which determine Bahrains points of national advantage. It also considers

how a sample of other comparable countries have aided skill development in the past.

Report 2: Skills Gaps Research Study: Sectoral and Skills Gaps Analysis:

This report outlines a baseline for the labour market and associated skills in Bahrains

industry sectors, forecasting the labour and skills needs for each sector into the future

(assuming no predicted changes to the status quo) and identifying skills gaps within each

sector. It also identifies strengths, weaknesses, opportunities and threats in terms of the

labour market in each sector and associated skills gaps.

Report 3: Skills Gaps Research Study: Future Skills and Workforce Needs:

This report summarises the key lessons drawn from the scenario planning exercise and

the Regional Conference on Skills Gaps, conducted in Bahrain in November 2008. The

report highlights key findings that will contribute to the outcomes of the future strategy.

Report 4: Skills Gaps Research Study: Final Report

This report identifies the future needs of the Bahraini labour market and associated skills

gaps using the information collected in each of the previous reports and incorporating

economic modelling of this information.

The report provides an overarching strategic framework and includes sectoral actionplans that will address the future strategy.

The Skills Gaps Research Study is one piece of a broader spectrum of issues that

relate to the labour market and skill development. Other key issues such as labour

market reform (including skill development concessions such as the current training

levy scheme), wage policy, labour laws, the education system structure and

Bahrains inherent cultural and social values are not addressed within the scope of

this study (see Figure 1.1). Although these are important areas for consideration in

national skills policy, they are well beyond the mandate of an external consultantsreport; rather, they are matters for national determination by senior policy makers in

the Kingdom of Bahrain.

This study has been specifically targeted to identify and create strategies to address

future skills gaps in Bahrain. Specifically, the Allen Consulting Group are using a

definition of skill as $a proficiency or facility that is acquired or developed through

education, training or experience to ensure that the study meets its objectives

(see Box 1.2).


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Figure 1.1

THE MANY FACETS OF THE LABOUR MARKET


The Skills Gaps Research Study builds on previous work undertaken in Bahrain on

skills development, such as a skills development analysis by McKinsey & Company

for Tamkeen, and a study of Skills Gaps & Competency Requirements for the

Financial Services Industry by Ernst & Young Bahrain for the Human Resources

Development Fund. Although the Skills Gaps Research Study is based on a unique

methodology, key findings and lessons from these and other previus research

programs have been drawn on to inform the study.

1.3 Methodology for this report

The methodology for Report 4 draws on the information collected and analysed in

all of the previous three reports that make up the Skills Gaps Research Study. Theobjective of Report 4 is to:

" develop a strategy for overcoming future skills gaps based on the most

contemporary thinking in economics and labour market analysis

" provide action plans that give clear guidance for identified priority sectors on

how to implement the strategic directions proposed.

The strategy and action plans in this report do not consider the petrochemical or

banking and finance sectors, given that both sectors are well developed and already

have well developed skills strategies in place. However, they do provide excellent

models for an effective Bahraini approach to addressing skills gaps, and the

experience of those sectors has provided valuable insights to assist in developingaction plans for other sectors.

In order to develop an effective future skills strategy for Bahrain five main tasks

were considered:

" understanding the rationale for the future skills strategy for Bahrain, including

the objectives of the strategy

" determining an effective skills strategy framework to highlight how the

objectives of the skills strategy will be met


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" developing a high-level skills strategy including focus areas in order to

prioritise skills gaps in economic sectors

" identifying the overarching skills initiatives for Bahrain from which the

majority of the solutions in each of the focus areas can be drawn

" developing action plans for each of the focus areas (and in a shorter form for

other economic sectors) that detail $what to do and $how to do it as a means

of achieving the strategys objectives.

Each of these five tasks have been completed and documented in Part B and Part C

of this report. The action plans in Part B have been prioritised given the importance

of the focus areas identified and hence are more detailed than the action plans in

Part C.

In addition to developing action plans, a structure has been drawn to ensure that

action plans (particularly for focus areas) are viable, effective, and provide

sufficient detail of $what to do and $how to do it. Each action plan considers the

following:

" an overview of the skills gaps, and future occupation and qualification issuesthat face the economic sector and were highlighted in Report 2

" the future labour market for the economic sector, predicted to 2012, based on

sector-specific assumptions additional to the status quo forecast outlined in

Report 2

" short-term solutions ! to be considered between 2009 and 2012, including

detail on the method, responsibility, cost and priority of each possible solution

" long-term solutions ! to be considered between 2013 and 2016, including

detail on the method, responsibility, cost and priority of each possible solution

" a summary of the action plan to be used as a high-level planning tool for each

focus area or economic sector.

Structur e of Report 4

The remainder of this report is structured as follows:

" Part B presents a future skills strategy for Bahrain, including the following

components:

% Chapter 2 outlines the rationale for a skills strategy, what the future

Bahrain labour market is expected to look like and presents the high-level

future skills strategy for Bahrain, including the four focus areas that

underpin the strategy

% Chapter 3 provides detail on a set of overall, high-level, overarching skills

initiatives for Bahrain from which the majority of the solutions in each of

the focus areas can be drawn, including an overview of how the education

system can be improved to better match labour supply to labour demand

% Chapter 4 through Chapter 7 details the short-term (2009-2012) and

long-term (2013-2016) action plans for the four focus areas that underpin

the future skills strategy for Bahrain.


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" Part C (Chapter 8 through Chapter 10) details the short-term (2009-2012) and

long-term (2013-2016) action plans for the other economic sectors included in

the Skills Gaps Research Study.


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Part BA futur e ski ll s strategy for Bahrain


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Chapter 2

A future skills strategy for Bahrain

2.1 Rationale for a skills strategy

Bahrains future skills strategy needs to be based on a set of objectives that

illustrate the key issues facing employers, employees, the education system and the

Bahrain Government in terms of skills gaps. Drawing on the information and

analysis undertaken in the three previous reports for the Skills Gaps Research

Study, the four key objectives for a future skills strategy are to:

" increase the skills competency of the labour force

" increase Bahraini labour supply participation

" better meet the needs of labour demand

"

contribute to an improved education system to aid skills development.

The strategy also targets and prioritises solutions that best achieve the set of

strategy objectives.

Figure 2.1 illustrates a mechanism to target the strategy and solutions purely

dependent on an industry sectors contribution to economic growth. If those sectors

that most directly impacted on Bahrains economic growth were chosen as target

areas for a future skills strategy, drawing on the labour market pool, education

system and the infrastructure and service base, potential targeted economic sectors

include:

" health

" manufacturing

" construction

" petrochemicals

" banking and finance


" transport and logistics

" trade.

Section 2.4 takes this targeting mechanism one step further using the information

and analysis undertaken in the previous Skills Gaps Research Study reports to

identify four strategic focus areas.


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Figure 2.1

INTERACTION BETWEEN SECTORS TO ACHIEVE ECONOMIC GROWTH


In order to help prioritise the strategy and solutions, proposed solutions can also be

measured against the extent to which they assist in meeting the strategy objectives.This measurement has been conducted through subjective scoring to determine

priorities ! assigning a high, medium, or low score against the four objectives as

well as an average priority score as a means to determine $high priority solutions

relative to others.

2.2 The future Bahrain labour market

For the purposes of the Skills Gaps Research Study, the future Bahrain labour

market is being considered in two segments:

" the future labour market comprising the 11 economic sectors selected for this

study

" other economic sectors (such as the petrochemical and banking and finance

sectors) that make up the entire Bahrain labour market.


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2

The Labour Market Regulatory Authority (LMRA) estimated the total labour

market to equal 439 174 employees (both Bahraini and non-Bahraini workers, but

excluding domestic workers) in December 2007. Assuming the status quo, the

labour market would be forecast to equal around 694 000 employees in 2012

(excluding domestic workers). However, given the current and expected economic

climate, an estimate using the status quo alone is not considered a reasonable basis

for forecasting. Therefore, assumptions on how the labour market may change

between 2007 and 2012 have been made for each of the 11 economic sectors

selected for the Skills Gaps Research Study and are described in Chapter 4 through

Chapter 10. In addition to these assumptions regarding the 11 economic sectors,

some assumptions were made on the extent of future employment in all other

sectors contributing to the total labour market, including:

" an increase in Bahraini labour of 5 per cent

" a decrease in non-Bahraini labour of 5 per cent.

Using the historical data available from the LMRA and including these shocks in

the 2008 year, an autoregressive 1 period model was applied to the entire dataset to1

forecast the total future Bahrain labour market, which is shown in Figure 2.2.Under these assumptions the total Bahrain labour market is estimated to comprise

of around 592 300 employees in 2012 (an increase in the labour market of 34 per

cent from 2007). This estimate excludes domestic workers. Of this total, 75 per cent

would be employees in the 11 selected economic sectors and 25 per cent would be

employees in other economic sectors .

Further, of those employees in the 11 economic sectors, 23 per cent (102 000

employees) are estimated to be Bahraini and 77 per cent (344 000 employees) are

estimated to be non-Bahraini. In 2007, 30 per cent of the total labour market was

made up of Bahraini workers. However, these results assume that no additional

mechanisms are introduced to improve the participation of Bahrainis in the labour

market.

1

An autoregressive 1 period model is a tool to forecast data based on historical information. A series is formedfrom the one previous period in addition to the historical base. The formula used in an autoregressive 1 periodmodel isLabour_Force(t) = b(t) + &(t) Labour_Force(t-1) + error.

2

The total labour market for the 11 economic sectors does not separately identify the labour market in the ICT

sector (as this data is included in the telecommunications sector). Further, public health and education labour isnot included as these values are captured in the public admini stration sector labour force.


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Figure 2.2

THE FUTURE BAHRAIN LABOUR MARKET TO 2012

Note: Domestic workers have been excluded from the data from 2007 onwards and explain thereduction in the total labour market in 2007.

Source: (Allen Consulting Group and Eidos); (Labour Market Regulatory Authority 2008); (Civil Service

Bureau (CSB) 2008); (General Organisation for Social Insurance (GOSI) 2008).

2.3 Future skills strategy

To assist the Government of Bahrain deliver its ambitious agenda for addressing the

skills shortages across 11 economic sectors as outlined in the Skills Gaps Research

Study a future skills strategy is essential to support skills development to address

labour shortages in key occupations. The development of future skills strategies for

Bahrain as outlined in this report will aim to enhance rather than constrain labour

market diversity.

Skills shortages have a number of causes and the strategies suggested in this report

reach beyond purely training-based solutions by taking a workforce developmentapproach to addressing the skills gaps. These are both short-term and long-term and

will require collaboration between government, industry and the workforce. The

majority of the strategies in this report are premised on this type of collaboration

although not all of the strategies require equal input from all parties.

To determine what future skills strategies should be considered for meeting the

needs of the labour market in Bahrain a skills strategy framework was developed

(see Figure 2.3). This framework considered the results of the research from

Report 2, the analysis undertaken through the surveys and also took into account the

current initiatives being introduced by Tamkeen.


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Figure 2.3

SKILLS STRATEGY FRAMEWORK


A comprehensive response to the skills gaps challenges requires a set of

overarching strategies that address and strengthen each need. The outcomes of the

analysis in this area identified that each of the key strategies should address the high

likelihood to contribute to future growth and fall in the category of having a high

level of skills gaps. The following four dimensions were considered within theskills strategy framework:




" contribute to an improved education system to aid skills development.

To ensure that the strategies put in place are being addressed and continuous

improvement is being made the final part of the skills gaps strategy implementation

process is moni toring and evaluation.

This not only involves monitoring the progress of action plans but also conducting

evaluations at the conclusion of each of the implemented strategies to ensure the

goals have been met.


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2.4 Four focus areas

It is difficult to predict with any certainty the required skills mix to meet both the

demands of employers and the requirements for effective participation in the wider

workforce over the longer term. However, the projections contained in Report 2 and

this Report provides a broad indication of the occupations and sectors in which

additional skills will be required. Given that, and the analysis undertaken in Report1 to Report 3, it was determined that there are four focus areas under the overall

skills strategy, as highlighted in Figure 2.1 which include:

" manufacturing

" health


" a strong infrastructure and service base, including components of the Public

Administration, ICT, Telecommunications and Business Services sectors.

These selected sectors were considered to show projected growth and would

continue to be a key component of Bahrains enterprise base. After considering theexisting strengths and opportunities for further development and growth in these

high value-added sectors along with the desired outcomes already identified by the

economic vision 2030 strategy for Bahrain it was decided to develop detailed action

plans for these four focus areas.

A key component of this strategy is the focus across four of the 11 economic

sectors outlining the proposed solutions to address the skills gaps in each area. This

consists of action plans being developed for all sectors and in particular for four key

areas as identified in Figure 2.4 below which highlights the high priority elements

of the action plan described in the remainder of this report.

Figure 2.4

FUTURE STRATEGY KEY FOCUS AREAS



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2.5 Possible solutions

Possible solutions under each of these focus areas were developed (some possible

solutions were also developed for the other economic sectors) to create action plans.

To identify, out of all of the possible solutions, which should be selected as part of

the Future Skills Strategy, a similar subjective assessment approach to identify the

key focus areas (described above) was used. In this case, possible solutions wereselected based on those that best met the following selection criteria:

" meets a goal (or goals) of the strategy !which is necessary in order to be able

to achieve the goals and, in turn, assist to meet the Strategys vision;

" is achievable ! or is an implementable solution given the economic, labour

market and sectoral environments

" is likely to be cost-effective !will see significant outputs and outcomes in line

with, or exceeding, the cost of the possible solution

" has some support among stakeholders consulted ! is in line with the many

interviews that were conducted as part of the study

" provides an outcome quickly !so that there is a mix of possible solutions that

include both those that have a long term measurable outcome, but also staged

solutions that will show the impact of the Future Skills Strategy across its

entire timeframe (i.e., not just outcomes at the end of the timeframe, but all

along the time continuum)

" aids development of a strong private sector ! which is a key objective of the

EDB and one of the primary drivers behind the creation of Tamkeen.

The subjective assessment of the key focus areas and other economic sectors are

outlined in Appendix A.


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Chapter 3

Overall skills initiatives for Bahrain

3.1 Introduction

It is clear from the analyses undertaken in this study that Bahrain has already taken

considerable steps forward in reforming its labour market and education-training

system in order to improve productivity, competitiveness and a thriving private

sector (all goals of the Economic Vision 2030 statement).

In particular, the Ministry of Labour and Tamkeen have played a leadership role in

facilitating the development of the skills needed by Bahrainis for the Kingdom to be

a productive, globally competitive economy. Consultations with stakeholders

suggest that most of the initiatives being undertaken by government in reforming

the labour market and the education-training system are moving the economy in the

right direction.

This study confirms that some sectors of the Bahraini economy are both productive

and globally competitive: in these leading sectors most employees are well

qualified, highly skilled Bahrainis and there are relatively few skills gaps.

On the other hand, some sectors have become increasing reliant on non-Bahraini

labour, and at best make a modest contribution to the development of a $broad

middle classof skilled, productive and pioneering Bahrainis.

The evidence from these consultations suggests that there are some imbalances and

weaknesses in the skills and attitudes of entrants to the labour markets that hamper

progress in the policy of Bahrainisation and efforts to improve the productivity and

competitiveness of under-performing sectors.

The analysis undertaken in this study has focused on identifying the skills gaps of

major sectors of the economy. Not surprising, the analysis reveals that each sector

has its own unique requirements; there are some sectors where the requirements for

future skills in particular fields are particularly acute, and action plans for dealing

with these are outlined in following chapters of this report.

At the same time, there many areas in which the skill requirements now and in the

future are common to all sectors. Some of these skills are broad based:

computational and mathematical, Arabic and other language skills, customer

service, development and maintenance of networks, communications skills and the

like. These were raised not only in surveys but were mentioned time and again in

stakeholder consultations. These skills needs are identified in each sectoral chapter

of the report.

In addition, there is an important set of future skills needs that neither survey nor

interview methodologies can identify: skills required for industry sectors that may

emerge in the future as a result of new technologies, processes or investments but

which at present do not exist in the Bahrain economy.


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A skills strategy should balance individual sectoral needs with the development of

flexible, robust institutional mechanisms that allow the labour market to adjust to

changing demands and emerging needs. The purpose of this chapter is to identify

areas where the current institutional framework might be adapted to provide this

additional flexibility, including an overview of how the education-training system

can be improved to better match labour supply to labour demand.

In suggesting initiatives that might be considered, it is important that:

" skills initiatives undertaken in the light of the results of this study contribute to

the strengthening and refinement, rather than the abandonment, of current

initiatives that are making a significant contribution to closing overall and

sector-specific skills gaps

" existing and new overall and sector-specific initiatives form a coherent

framework of priorities for action that are essential for reforms of the labour

market and the education-training sector to be effective in realising the

national vision

"

initiatives and action plans are well understood, accepted and#

owned

by keystakeholders (government, public and private employers, workers, entrants to

the labour market, education and training providers)

" government labour market and education-training policies provide the

incentives needed to encourage implementation of key initiatives

" using the data from this study as a base, an ongoing process of monitoring of

progress towards goals and evaluation is in place to ensure that necessary

adjustments and refinements are made in the light of feedback.

Drawing on the information and analysis undertaken in the three previous reports

for the Skills Gaps Research Study, key objectives of any overall skills initiative are

to:




" contribute to an improved education-training system that achieves the

outcomes (skills development) required to improve productivity in all sectors

of the economy.

Six areas in which overall skills initiatives seem to be needed in Bahrain are

identified.

3.2 Better matching of labour supply to labour demand

In consultations and focus groups for this study, one of the most common

complaints from employer groups was that the supply of labour from the formal

education-training system does not match the skill demands of their enterprise and

sector.


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The most common observation was that the education-training system has not

produced enough Bahrainis with scientific, technological and technical

qualifications, but instead too many arts-social science-humanities graduates and

school leavers leading to high levels of youth unemployment. While the education

system cannot be expected to provide all the industry-specific skills demanded by

employers, it is expected to ensure that those leaving the system have the generic

skills and work-attitudes critical for any worker in a modern economy to be

productive.

The current EDB Education Reform program provides a comprehensive framework

for the overall reform of the education-training aimed at improving the quality and

relevance of education, that is, closing the skills gaps. The initiatives set out below

need to be considered within the framework of the EDB Education Reforms.

Tighten l inks between educat ion, tra in ing and indu stry

The strategic approach most likely to succeed is to build on the success of

initiatives of sectors where the match between supply and demand is sound, the

links between education, training and the industry are close, skills gaps are

minimal, and the level of Bahrainisation is high.

The petrochemical sector (in particular, the scholarships and training initiatives of

companies like BAPCO and GPIC) and the Banking and Finance Sector

(particularly the Bahrain Institute of Banking and Finance) provide casebook

studies of what works. Both sectors have a long history of investment in the

development of the human capital they need to be productive and internationally

competitive, one in which strong leadership has been provided both by the

management and the government over a prolonged period. They provide a

workable, Bahraini model of how to develop an institutional approach that matches

supply with demand.

Bahrains Government should consider making it mandatory for education and

training providers to ensure adequate industry involvement in course design,

teaching, practiciums and assessment as a condition for funding support and

accreditation of vocationally oriented courses. This would ensure that the roles

played by the Ministry of Education (particularly the Educational Research and

Development Centre), the Bahrain Higher Education Council, the High Council for

Vocational Training and its Specific Councils, and the Bahraini Quality Assurance

Agencies are strengthened in:

" mapping skills requirements, graduate employment rates and employer

satisfaction with skills of recent graduates

" ensuring that courses provided by schools, training institutions (like BTI,

Bahrain Polytechnic and private colleges) and universities focus on developing

key skills and competencies, and meet international standards and benchmarks

" refusing accreditation or re-accreditation of courses and institutions failing to

meet requirements of industry involvement and/or standards required for

professional or trade certification

" establishing a National Qualifications Framework

" encouraging industry involvement in course design, work experience

programs, internships and apprenticeship programs


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" introducing a compulsory training levy for within-industry training, and

legislation requiring all companies with more than 50 employees to provide

vocational competency development programmes, as in Korea).

Increased v ariat ion in funding levels would be a useful signal l ing mechani sm

Long lead times in the design and delivery of educational courses are common, inBahrain and in higher education sectors worldwide. The investment required to

develop a curriculum recruit and train teaching staff, and develop course material,

are all reasons why secure, long term funding is desirable.

However, too high a degree of security in funding means that existing provision can

be locked in at the expense of emerging needs. There is a balance that needs to be

struck between certainty of funding in order to promote long term planning and

responsiveness to the immediate needs of the economy. Consultations with industry

suggested that a majority of industry leaders perceive rigidity of funding as a

problem with the higher education system in Bahrain, and would prefer the balance

to be shifted towards responsiveness.

Options for increasing the level of funding variation to help close the gaps betweensupply and demand could be based on the budgetary allocations to higher education

bodies (e.g. provision of a higher funding base for University and BTI faculties

where major supply gaps are evident, reduction for those where there is an over-

supply of graduates) or built around incentives (e.g. scholarships, government

supported-internships) aimed at attracting more students to areas where private

sector finds it difficult to recruit Bahrainis with the appropriate qualifications and

skills. These are proposals that are to be considered within the context of broader

education reform % they are covered here in recognition of the employer interest in

improving responsiveness, but the report recognises that overall education reform is

outside the scope of the project.

Greater transparency in labour m arket i nformat ion

A well-functioning market is characterised by widespread dissemination of

information. This applies equally to labour as to commodities markets. Information

that is relevant, accessible and up to date is a crucial factor in encouraging the

matching of supply and demand.

As shown in the findings outlined in Report 2, there is a considerable amount of

information on Bahrains skills and occupations available from official sources.

However, little of this information is published in a form that assists potential

employees, parents, or employers, to match their aspirations and needs. The relative

paucity of online information on trends in employment patterns and in demand for

skills is a potential barrier to further labour market reform.

As a first step, the publication online of information currently collected on labour

numbers and trends would improve the capacity of the Bahrain labour market to

anticipate and react to emerging pressures and demands.


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3.3 A national vocational apprenticeship program

A number of sectors report skills shortages in key technical and skilled trade areas.

Whereas BAPCO has long had an apprenticeship programme to ensure that it has

the skilled tradesmen it needs, it is evident that there is an overall skills gap % one

filled largely in other sectors by non-Bahrainis. The BAPCO experience was noted

in a large number of industry leaders interviewed in the consultations for this reportas a model that could be applied elsewhere. This was particularly so in relation to

manufacturing and transport industries.

A possible approach would be for Bahrain to consider establishing a national

apprenticeship scheme.

The scheme would focus on technical and craft apprenticeships in areas of high

demand across sectors identified in this study (such as electrical trades;

refrigeration and air-conditioning; welding; health, laboratory, IT technicians;

administrative and clerical workers; small business management), particularly

where those areas in which the level of Bahrainisation is low.

Appropriate Diploma and Advanced Diploma courses would need to be establishedor further developed by BTI (and potentially the Bahrain Polytechnic) allied with

on-the-job apprenticeship programs where job-specific skills can be learned.

In establishing a national program, the experience of BAPCO as well as that of

international organizations (e.g. UNESCO-UNEVOC, ILO) and countries with a

long tradition of apprenticeship systems within a governmentally supported

framework (such as Austria, Great Britain, Germany, Australia and New Zealand)

should be sought in the design and implementation of the programs. This should

also apply in the harmonisation of a national (and regional) system of standards,

assessment and accreditation.

Of course, for such an initiative to work, employers would need to be willing to

participate in the program, to take on apprentices, to provide them with on-the-jobtraining generally over a two to three year period, to accept that they need blocks of

time for formal training at BTI or an approved training provider. As in many

countries, a considerable effort needs to be made to improve the status and image of

technical and craft trades, and thus this would need to be a focus of a public

information campaign.

During training, apprentices are engaged in working for an employer and being

trained on-the-job by them as well as being engaged in a formal training program

provided by approved vocational education/training provider such as BTI. For

apprentices, the level of income provided during training is a key issue. Ideally the

monthly income of an apprentice should not be much lower than that of a semi-

skilled employee of the same age; although life long earning potential is higher for

a more highly skilled employee, the immediate incentives effects of a lower income

while training would discourage potential trades apprentices. This suggests that an

allowance around BD300 per month in present values would be required to

encourage take up of apprenticeships.


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To proceed, this proposal would require both a detailed business case for funding,

and consideration within the overall Bahrain education strategy. In addition to the

costs of supporting apprentices, the costs of training itself would need to be found

either from employers, government, or some agreed combination of both.

Additional funding would also need to be provided to BTI and the Bahrain

Polytechnic to enable them to hire or enter into joint agreements with overseas

counterparts to ensure that the training and standards reached are comparable with

those achieved by Bahrains major trading partners.

3.4 A national transitions framework and careers education

For many students completing their studies at secondary school, a training institute

or university, the transition to work is a hazardous one. UNESCO and international

experience suggests that transition problems can never be eliminated, but for many

students transition is made easier by provision of information, advice and

counselling. Career and transitions services assist students in planning for a career

and to prepare and support them to make successful transitions to post-school,

college and university destinations.

Such services need to include career guidance and information on the changing

nature of work and the labour market and the work ethic expected by employers,

public and private. Information can be disseminated via online programs, classroom

teaching, careers advice, events such as open days and career markets, and

simulation exercises focussing on career pathways and #resources generators' that

allow access to, and sharing of career development resources and experiences of

graduates during the transition period.

Governments have a variety of options to encourage such services. They can be

made a regulatory requirement through legislation or government instructions;

comprise a condition for licensing or funding schools and tertiary institutions; or be

funded directly by governments in whole or in part. The options available to the

Kingdom of Bahrain include a mix of these approaches.

In the first instance, a pilot program for a transitions service could be developed

jointly between a leading institution (the Universit y of Bahrain is an obvious

candidate) and a government agency such as Tamkeen. The introduction of a

transitions service via a pilot program would be a low risk approach allowing

lessons to be learned on how best to introduce such a service in Bahrain before any

regulatory or funding program were developed more generally.

Other possible elements of a transition program might include assistance for

students to experience work while they continue to study at university. Internships %

short placements with employers that allow students to experience possible future

work options%

are a common feature of transitional programs in many countries.They provide on-the-job experience as a complement to university study. A

remuneration component for students is necessary (to be paid possibly in part by

employers and the Government of Bahrain) to trigger interest in such a program.

The internship program could focus on sectors that make up Bahrains

infrastructure and service base, including the public administration, business

services, ICT and telecommunications sectors, if it were designed to support the

development of these services within an overall economic development plan.


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A complementary approach to development of a transit ions program wou

A Future Skills Strategy for Bahrain _report4

Documents

Transcript of A Future Skills Strategy for Bahrain _report4