Basic Education - Industry Day - Slide Deck.pdf

USAID Eastern and Southern Caribbean Mission

Proposed New Education Activity for youth in NEET Suriname and Saint Vincent and the Grenadines

September 30th, 2024 Wifi: Ballroom TOR Password: Super_Hotel

Remarks Mervyn Farroe Regional Representative USAID Eastern and Southern Caribbean

Welcome Remarks Ambassador Robert J Faucher U.S Ambassador to the Republic of Suriname

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Ria Jharap Development Assistance Specialist

USAID/ESC

USAID OVERVIEW

Eastern & Southern Caribbean

(USAID/ESC)

What we do

USAID works in coordination with partner countries to:

● Promote inclusive sustainable development worldwide

● Advance U.S. national security, partnerships, and economic prosperity

USAID leads the United States Government’s international development and disaster response efforts globally to:

• Help save lives

• Reduce poverty

• Strengthen democratic governance

USAID/ESC - Area of Responsibility

Trinidad and Tobago*

Grenada

Barbados*

Dominica

Antigua and Barbuda

Saint Vincent and the Grenadines

Saint Lucia

Saint Kitts and Nevis

The Bahamas

Guyana*

Suriname*

USAID/ESC Regional Office

U.S.

Embassy

Bridgetown

U.S.

Embassy

Georgetown*

U.S.

Embassy

Port of Spain

U.S.

Embassy

Paramaribo

* Liaison officer to CCS in Georgetown

**Non-Presence work with U.S. Embassy Nassau

USAID/ESC Goal and Priorities

PACC 2030

Improving climate resilience, responding to food insecurity

Citizen Security Youth, Digital/Cybersecurity, and Anti-trafficking

Economic Growth SMEs and Private Sector Engagement

Health Health Security

GOAL

To promote a safe, prosperous and resilient Caribbean region that supports its vulnerable populations, withstands external shocks, and promotes accountable institutions, economic development, and private sector led growth.

Regional Funding Agreement held with CARICOM

U.S.-Caribbean Partnership to Address the Climate Crisis 2030

(PACC 2030): USAID/ESC Focus

Access to Development Finance

Clean Energy Development and Investment

Local Capacity Building and Food Security

Deepening Collaboration with Partners

STRATEGIC

OBJECTIVES

Increase financial resources

Build capacity of key organizations

Improve climate policies, data, technology and tools

Climate-proof vulnerable sectors like energy and agriculture

USAID’s goal is to ensure that the development work is more effective, sustainable, and tailored

USAID focuses on working more closely with local organizations, communities, and governments

USAID aims to empower local partners by providing them with more resources, decision-making power, and leadership opportunities.

Thank You!

Proposed Basic Education Activity

NEET youth 01

Youth’s education and vocational training at a glance

More than 35% of youth aged 15 to 24 in Suriname are not in education, employment, or training (NEET)1

High drop-out rates At least 50% of the youth drop out at the secondary school level, resulting in a low completion rate and limited access to economic opportunities

1Decent Work Country Programme, Suriname, 2023-2026 (ILO, 2023)

Government commitment03

Key Stakeholders

The Ministries of Education and Labor are tackling the issue through initiatives like the SNTA1 foundation, ILO’s Decent Work Program and an MoL study aiming to identify skill gaps in the labor market

Presence of development partners

05 Interest of private sector Companies like Shell and Staatsolie are investing in vocational training and skills development in the country

The IDB is currently developing a digital skills project with a focus on TVET secondary school to identify and tackle the root causes of youth NEET

*Information based on desk research and insights from the scoping mission in Suriname

1Suriname National Training Authority

However, there are still some gaps to be addressed*…

06 Fragmented ecosystem The ecosystem in Suriname often works in silos, impeding alignment in areas such as standards for quality education

07 Misalignment with the market There exists a low use of data and a mismatch between skills supplied by service providers and skills demanded by the labor market

Lack of connection to job opportunities 08 Providers seldom offer services or guidance to connect participants to the job market and do not have tracking data on results about them after training

*Information based on desk research and insights from the scoping mission in Suriname

How can USAID help address these gaps?

By leveraging current local efforts and work to unlock specific bottlenecks

Developing a Basic Education Workforce Readiness Activity Given the identified needs, the following objective was defined

Achieve measurable improvements in NEET youth’s soft skills development and employment outcomes

Revised development hypothesis

Considering the key takeaways, including training misalignment with market needs, youth barriers to access training and training providers capacity, the revised development hypothesis would be:

IF NEET training providers are better aligned with labor market needs and opportunities;

IF vocational training opportunities are accessible and appealing to NEET youth; and

IF government institutions have the capacity to accredit training;

THEN USAID will have unleashed service providers’ capabilities, transforming training and employment outcomes and meeting regional human capital demands with unprecedented effectiveness.

Development hypothesis for the youth workforce readiness activity

Basic Education Workforce Readiness Activity The Activity is divided into three components

Work in progress

Strengthen workforce training providers to ensure their training programs are inclusive, relevant, and responsive to private sector needs

Strengthen the capacity of the National Accreditation

Authority

Develop a workforce ecosystem that promotes inclusive employment solutions with a focus on non-majority groups

RBF COMPONENTMILESTONES BASEDMILESTONES BASED

Basic Education Workforce Readiness Activity The Activity is divided into three components

Work in progress

• Develop a business-sustainability model for strengthening training centers

• Review programs and curriculum to ensure alignment with CVQs, NVQs and national accreditation standards

Strengthen workforce training providers to ensure their training programs are inclusive, relevant, and responsive to private sector needs

• Develop a pathway for accrediting key in-demand skills

• Deliver capacity-building activities to support the accreditation of CVQs

Strengthen the capacity of the National Accreditation

Authority

Develop a workforce ecosystem that promotes inclusive employment solutions with a focus on non-majority groups

• Provide psychological support to youth

• Train youth in in demands labor market skills

• Collaborates with top businesses and SMEs in growth sectors to connect job seekers with employers and businesses with skilled employees

RBF COMPONENTMILESTONES BASEDMILESTONES BASED

Pilot’s target population

Youth between 15-24 years old

Youth not in education, employment or training (NEET) at the start of the intervention

Youth who have completed primary school but not secondary education

Youth living in areas with high socio-economic vulnerability will be prioritized

Paramaribo

Wanica

Commewijne

Prioritized target population by geography

Largely populated area with high socio-economic vulnerability

Reflection and Q&A

Photo Credit YES.SR

● Who are the key players working in this space?

● What are some of the existing programs that focus on upskilling youth?

● Is the Theory of Change Realistic?

● Are there any missing pieces to the puzzle?

Industry Day Proposed New Education Activity for youth in NEET using a Pay-for-Results approach Exploring Pay-for-Results: definition, value-add, trends, and a general overview of the Activity’s Pay-for-Results component

September 30th, 2024

We are a nonprofit with a mission to enhance the effectiveness of development and climate spending in low- and middle-income countries

Introducing Instiglio

We are based in the Global South, with offices in Colombia, Peru, Morocco, Kenya and Mauritius

+25 Countries worked on

+600 USD millions in results

+90 Impact partners

Instiglio’s Pay-for-Results work across regions and sectors Over 100 interventions in 26 countries

Workforce development Advising the MCC on the design of RBF strategies in Morocco

Education

Workforce Development Advised the design of the 1st Social Impact Bond in a developing country and its future 3 interventions

Livelihoods Worked with USAID-DIV to design and launch a Development impact Bond paying for improvements in beneficiary incomes

Top 5 engagement sectors

1. Workforce

Development

2. Poverty Alleviation

3. Education

4. Gender Equality

5. Health

Workforce Development Design of a PBC for the country’s largest employment program (Costa Rica)

Workforce Development Design the largest PBC with the

Bogota Mayor’s Office and designed a SIB to close gaps in energy transition issues (Colombia)

Education

Have you heard of Pay-for-Results programs?

What do you know about it?

Session objectives

Introduce Pay-for-Results and present its value add

Provide recommendations for successful involvement in Pay-for-Results

Give a general overview of USAID’s envisioned Pay-for-Results

Challenges of training and employment programs

Implementing TVET programs is challenging but some elements can help

Working with vulnerable youth in a complex and changing job market is challenging, some strategies that can help include:

Let´s see what Pay-for-Results can do about this!

Introduce flexibility to adapt training paths to specific needs

Use data to understand what works better

Focus on results:

for example, on ensuring job placements for students

Tailor interventions:

profile participants and tailor to their needs, for example, soft skill needs

Link and have ongoing conversations with the private sector

Potential solution

A simple idea: Pay-for-Results

Tying part of funding to agreed and verified results“ ”

How does Pay-for-Results differ from traditional financing?

A new logic to achieve results: more focus on impact and reducing administrative burden

• CV workshops • Jobs gained and retained Verified resultsActivities

Part of the financing tied to…

• Purchase of training supplies • Reduction of drop-out rates

Reporting and compliance…

• Reporting based on invoicing

• Rigidity in the delivery of trainings Activities are pre-agreed

• Reporting based on verified results

• Flexibility in delivery of trainings to achieve results

How does a Pay-for-Results mechanism work?

Pay-for-Results is a flexible tool that incentivizes predefined results

Key characteristics The results are decided in advance, and are based on the objective of the program: for example, ensuring placement in employment opportunities

While Pay-for-Results is about financing, its success also depends on clear accountability, strong information systems, transparency, and capacity building

Pay-for-Results creates the incentives and flexibility for service providers to innovate and adjusting programing in pursuit of impact

Only part of the payments are linked to the achievement of pre-defined and verified results, while the rest is given out over the course of the project

A growing evidence base of experience highlights the potential of Pay-for-Results as a driver of training and employment outcomes

Increased focus on gender and vulnerable populations

Incentives aligned with job placement

Incentives aligned with decent work results

More than 65% of program beneficiaries were women

For 83% of the participants, the time to find employment was reduced by four months

The program increased non-agricultural employment by

16%

Greater innovation and agility to improve retention

Across 2 Social Impact Bonds, 75% of those placed in employment kept their jobs for at least 3 months

Added value of Pay-for-Results:

An example from Bogota, Colombia

Pay-for-Results program to promote inclusive employment in Bogota Identified challenge

Bogotá

Between 2020 and 2021, the unemployment rate in Bogotá doubled to 19.5%, leaving a total of 908,000 people seeking employment

This especially impacted women and young people, with unemployment rates of 23% and 30%, respectively

The Bogotá Mayor's Office set a goal to place over 200,000 people in jobs

Structure of the Pay-for-Results program The program paid for job placement results at scale with 14 service providers

Results payer

~ 28,000 employment seekers with a focus on women

Service providers

Signing of the Pay-for-Results contract & advance payment

Results verification

15% of the payments were conditioned on job placement results + 5% bonus for higher job placement of women

Provision of training and employment services

• JuanFe Foundation

• Carvajal Foundation

• Colombia Incluyente

• etc

Bogotá Mayor's Office

What benefits did Pay-for-Results have in the case of the Bogotá Mayor's Office?

1. FOCUSED ATTENTION ON

MEASURABLE RESULTS

• Program designed in response to the specific employment needs of women and youth

• 78% of the job placement target reached

3. ALIGNED INCENTIVES WITH

BENEFICIARY WELLBEING

• Service providers received payments tied to achieving results aligned with participants' aspirations and government objectives

2. PROVIDED FLEXIBILITY TO

ACHIEVE RESULTS

• Service providers had the flexibility to innovate and respond to the population needs (i.e., they offered three different interventions for different needs)

4. PROMOTED ACCOUNTABILITY

AND TRANSPARENCY

• Use of public information systems for verifying results in a more reliable and efficiently way

Global Pay-for-Results trends

Resources invested in Pay-for-Results are growing year by year The use of Pay-for-Results strategies is an increasingly mature practice worldwide

Over USD 26.5 billion have been tied to results in middle – and low – income countries (16% of the total global Official Development Assistance)

+250 Training and employment programs use Pay-for-Results

The Pay-for-Results is widely used in development programs, especially in health, employment, education and institutional strengthening

Between 2015 and 2022, +100 countries have used Pay-for-Results

Legend Countries where the

Pay-for-Results has been implemented between 2005-2022

JobActive Australia Chile Califica

MÁS PpR Taheil Program

Rotterdam SIB

Benazir Income Support

SKY program

Employment Fund

Skills Sector Development

Priority Skills for Growth

Innovation Fund Guizhou Vocational Education Program

Pay-for-Results training and employment programs

Vínculo de Impacto Social de BA

Massachusetts Pay for Success

USAID plan for the Eastern and

Southern Caribbean

USAID is betting on implementing Pay-for-Results within a potential new Activity

The Pay-for-Results program will include pilots aimed at gradually creating a results-oriented ecosystem. Some of the elements defined for the first pilot include:

This will be done through a Pay-for-Results program, starting with a pilot in Suriname and St.

Vincent & the Grenadines

Target population Desired results Implementer Payment for results

Youth currently not in employment, education, or training (NEET) between the ages of 15 to 24 years old

Different results can be defined (i.e., training completion, job placement, job retention, etc). This will be defined after a careful understanding of country context

Multiple service providers with the capacity and expertise to work with NEET youth and provide employment training

Usually, 5-20% of the total resources are paid when specific results are achieved*

The rest of the funds are given based on activities (i.e., deliver a work plan) throughout the project

Pay-for-Results programs may offer more payment compared to a program without this structure

*This will be defined after a careful understanding of country context

The Pay-for-Results program will include pilots aimed at gradually creating a results-oriented ecosystem. Some of the elements defined for the first pilot include:

Implementer Payment for results

How would a pilot look in practice?

Example of a pilot aimed at training 1000 NEET youth and paying for employment outcomes

Main elements of the hypothetical pilot Objective (targets) Train 1000 NEET youth and place 500 of them in jobs

Payments for implemented activities

• Workplan

• Training enrollment

• Training completion

Payments for achieved results

• NEET youth placed in employment

Payments distribution These are all illustrative figures not related to the final program

Total budget for the pilot

Training completion (40-50%)

Job placement (10-20%)

Resources tied to activities (80-90%)

Resources tied to results

(10-20%)

Training enrollment (20-30%)

Hypothetical road map of a pilot The common duration of a pilot is 12 months

Payments for activities Payments for results

Workplan

Service providers are paid around 5-10% of the total budget for providing an intervention work plan, this may include:

• defining market-aligned training curriculums

• developing a strategy for participants' outreach

Training enrollment

Service providers are paid 20-30% of the total budget upon enrolling students to the trainings

Training completion

Service providers are paid 40-50% of the total budget upon students completing the trainings

Job placement

Service providers are paid 10-20% of the total budget when students are placed in employment

General advantages from being involved in a Pay-for-Results Pay-for-Results projects can benefit service providers

Greater evidence of results Demonstrates your capacity to delivering effective and scalable programs helping you to attract potential donors

More flexibility to innovate Gives you the opportunity to innovate and optimize your resources as needed

Reduced administrative burden Reporting based on verified results instead of based on invoicing may reduce your administrative burden

Local capacity and ownership Pay-for-Results recognizes your local expertise and helps you keep on building your capacity to offer even better trainings and achieve results

Testimony from a service provider of a Pay-for Results program in Colombia

…We decided to participate in this first pilot because we knew these are models that are gaining ground globally…

…Participating in these models becomes excellent evidence of what the organization is capable of, and this give confidence to all donors…

…This model required us to be truly effective and to have systems and a trained team to measure what we did…

What makes participation in a Pay-for-Results scheme successful?

Recommendations to successfully engage in Pay-for-Results programs Five main success factors based on past experience

Understand how Pay-for-Results works (risks and the opportunities) and ensure everyone involved in the program (e.g trainers) is motivated and on-board: ask questions, raise awareness in your organization

Be proactive: get to know the context and keep checking the needs of each group you are working with. Remember, these needs will always be different

After understanding the needs of your group, look at the services being offered to: i) adjust it to fit those needs and ii) find any parts of the process that might have problems

Set up a system that allows you to track performance in real-time and use the information to make decisions based on data. For example: how many drop-out and why, how many get interviews, etc.

Work with your team to build skills to successfully deliver in a Pay-for-Results program: links with the private sector, course-correct if something is not working, think what innovations could work, etc.

Benjamin Stephens Associate Partner at Instiglio benjamin.stephens@instiglio.org

Lucía Perez Manager at Instiglio lucia.perez@instiglio.org

Mariana Noguera Associate at Instiglio mariana.noguera@instiglio.org

Sofía Gordillo Associate at Instiglio sofia.gordillo@instiglio.org

Manuela González Analyst at Instiglio manuela.gonzalez@instiglio.org mailto:benjamin.stephens@instiglio.org mailto:lucia.perez@instiglio.org mailto:mariana.noguera@instiglio.org mailto:sofia.gordillo@instiglio.org mailto:manuela.Gonzalez@instiglio.org

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