Rene Cuartero

Regional Advisor for Asia and the Pacific

Child & Youth Finance International

December 17, 2014

Financial Education and Beyond: Empowering and Encouraging Youth Entrepreneurship

OECD/Thailand Seminar on Financial Inclusion and Financial Literacy in Asia

Youth Unemployment: A Global Challenge

Youth make up 37% of the world’s unemployed

The current youth employment rate is 13.1%,

which is nearly 3 times higher than the adult

unemployment rate

400 million additional jobs need to be created in the next 10 years just

to absorb the new entrants to the job

market

SOURCE: “Global employment trends for youth 2013”, International Labor Organization *Youth: Age 25 and below

Asia and the Pacific alone accounts for more than half of this challenge globally – therefore, there is a need to structurally address this growing problem.

Total of 357.7 million youth worldwide were not in education, employment or training – and this

is expected to further increase*

62% are from Asia-Pacific • 101 million from South Asia • 119.4 million from East Asia

and the Pacific

$40 billion in losses per year† due to youth unemployment & gender gaps in NEET

Asia and the Pacific By The Numbers

*Organisation for Economic Co-operation and Development (2010). “Off to a Good Start? Jobs for Youth”; and World Bank (2012). “Youth Employment in the Developing World – A profile: Data from World Bank Micro Surveys”.

†Asian Development Bank (2013). “Youth Employment and Skills Development in Asia and the Pacific”. ‡United Nations (2014). “Regional Overview: Youth in Asia and the Pacific”.

Other Key Vulnerabilities‡

• Absence of unemployment support measures for youth

• Long-term unemployment is more prevalent for the youth

• Youth unemployment leads to vulnerability to social exclusion

• Job creation can’t be anchored by government and companies alone

Support for the young demographic should go beyond providing jobs or training youth for jobs.

CYFI Model of Economic Citizenship

Various studies have shown that higher financial literacy and increased financial capability is a key driver in generating and maintaining sustainable drive for entrepreneurial ventures.*†

Strengthen financial

capabilities

Achieve economic empowerment and

make sound financial decisions

Generate interest and initative to start

entrepreneurial ventures

Stimulate job creation and

drive economic growth

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*US President’s Advisory Council on Financial Capability (2013). “President’s Advisory Council on Financial Capability Report on January 29, 2013”. †Junne, G., Knoote, F., Rodima-Taylor, D., de Winter, D. (2014). “CYFI Network Brief 1 – Youth and Remittances: Implications for Policy”.

Some policies extend from just providing financial education up to supporting initiatives that holistically empower young entrepreneurs

Description

▪ Unlocking of potential of youth through entrepreneurship, encouraging training programs, increasing access to finance, which are key aspects in Kenya’s Vision 2030 Strategy

▪ Establishment of entrepreneurial hubs in Kenya

▪ Creation of the Youth Enterprise Development Fund with the core purpose of supporting young entrepreneurs to reduce youth unemployment

Kenya

Malaysia

▪ Strong focus on young entrepreneur education and training through the Ministry of Entrepreneur and Co-operative Development

▪ Added emphasis on forming entrepreneurial culture and practical training sessions

▪ Role-out of 1Malaysia Entrepreneurs (1MeT, Ministry of Finance) – a “National Blue Ocean Strategy” considered as a key pillar for Malaysia’s overall social transformation agenda.

European Comm.

▪ Since the crisis in 2008, the European Commission has increased its commitment to entrepreneurship and youth capacity-building

▪ Establishment and funding for Erasmus for Young Entrepreneurs – a program that allows young entrepreneurs to learn from experienced entrepreneurs

▪ Integrating to the EU strategy a specific focus on youth employment and entrepreneurship

Key Program(s) Case Example

These policies could be complemented by initiatives that directly engage youth and empower them through financial education and awareness

Some initiatives from the Child and Youth Finance International (CYFI) Secretariat:

Ye! Community Global Money Week

A global platform of young entrepreneurs to help develop themselves by connecting with their peers, finding resources & training, receiving coaching & mentoring, and raising funding.

An annual celebration that brings together stakeholders from various sectors (governments, central banks, financial institutions, (i)NGOs, academics, youth, and more) to raise awareness on financial education, financial inclusion, and entrepreneurship of young people.

http://www.yecommunity.com http://www.globalmoneyweek.org

In summary:

Growing Global Challenge of Youth Unemployment

Strengthening Financial Literacy and Financial Capabilities at a Young

Age

Generate drive for Entrepreneurship and

Develop Long-Term Sound Financial

Behaviour

Strong recommendation for Financial Education

Policies Coupled with Drive for Youth

Entrepreneurship

Complement Policies with direct

involvement of Young Generation

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2

3 4

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Stimulate Job Creation and Drive Economic Growth within the

Vulnerable Youth Sector

www.childfinanceinternational.org

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Rene Cuartero Regional Advisor for Asia and the Pacific rene@childfinance.org +31 20 520 3900 | @LetsGoRene

Thank You!