Mali - Youth Unemployment : The Role of Education and Training - Sector Study

Document of The World Bank FOR OFFICIAL USE ONLY " COMFIMMTAL Reprt No. US44-MU REPUBLIC OF MALI YOUTH UNEMPLOYMENT The Role of Education and Training SECTOR STUDY August 28, 1994 FILE COPY Sahelian Department Population and Human Resources Division Africa Region FILE COPY This document has a restricted distribution a their ofrwl duties. Its contents may not o CONFIDENTIAL Report No: 13544 MLI Type: SEC CURRENCY EQUIVALENTS Currency unit = CFA Francs (CFAF) US$1 = CFAF 286.1 (June 1993) CFAF 100 = US$ 0.35 (June 1993) WEIGHTS AND MEASURES I kilometer (an) = 0.624 miles I meter (m) = 3.28 feet I square meter (M2) = 10.76 square feet (sq. ft.) I square kilometer (kn2) = 0.39 square mile (sq. m.) I kilogram (kg) = 2.2 pounds (lb.) FISCAL YEAR January I - December 31 SCHOOL YEAR October - June ACRONYMS AND ABBREVIATIONS AGETIPE Agence pour l'Ex6cution de Travaux d'Intdr6t Public et I'Emploi BNDA Banque Nationale du D6veloppement Agricole BT Brevet Technique BTS Brevet de Technicien Sup6rieur CAP Certificat d'Aptitude Professionnelle. CFA Communaut6 Financi6re Africaine CFEPCEF Certificat de Fin d'Etudes du Premier Cycle de l'Enseignement Fondamental DAMO Ddclaration Annuelle de la Main d'Oeuvre DEF Dipl6me d'Etudes Fondamentales DRE Direction Rdgionale de l'Education ECICA Ecole Centrale pour I'Industrie, le Commerce et I'Administration EF Enseignement Fondamental EHEP Ecole des Hautes Etudes Pratiques ENA Ecole Nationale d'Administration ENMP Ecole Nationale de Mdecine et Pharmacie ENSUP Eole Normale Sup&ieure FARE Fonds Auto-renouvelable de l'Emploi INPS Institut National de la Pr6voyance Sociale NGO Non-Governmental Organization ONMOE Office national de la main d'oeuvre et de l'emploi SMAG Salaire Minimum Agricole Garanti SMIG Salaire Minimum Interprofessional Garanti UMOA Union Mon6taire Ouest Africaine UNDP United Nations Development Program VTE Vocational and Technical Education This report was prepared by Andr6 Komenan (Economist, AFTHR); it is based on the findings of a mission which visited Mali in April 1993. During the mission, Messrs Mamadou Cissoko (Director General), Ibrahima Fofana (Deputy Director General), El Hadj Sidibd (Director, Statistics and Data Processing), and Saliha Doumbia (Economist) all of the National Employment and Manpower Office (ONMOE) provided assistance and information. Samuel Carlson (Economist, AF5MLI) provided valuable advice in the course of the mission and the drafting of the study. Djamalddine Rouag (Senior Educator, AF5PH) was the supervisor, and Manuel Zymelman (Senior Advisor, AFTHR), and Arvil V. Adams (Senior Economist, ESP), the Peer Reviewers. Mr. Birger Fredriksen was the Division Chief and Mrs Katherine Marshall was the Director. BASIC DATA Area (thousands of kIn) 1,240 Total 26.3% Arable area Population (1990) Total (millions) 8.5 Female. 51% Urban 20% Growth rate 2.7% Life expectancy (1989) 48 Total fertility rate (Births per woman) 7.0 Active Population (Aged 15-65) 50% Macroeconomic data (1989) GNP per capita (US$) 280 Annual growth in GNP (1965-90) 1.7% Average inflation (1980-90) 3.0% Share of agriculture in GDP (1990) 51% Share of industry in GDP (1990) 14% Share of services in GDP (1990) 35% Total external debt (US$millions) 2,433 Formal Sector Emloyment (1987) Absolute value Percentage Private Formal sector 11,900 18.2 Public Formal Sector 20,100 30.7 Civil service 33,500 51.1 Education Illiteracy (1990) 81% Female illiteracy (1990) 85% Education level of active population (1987) No education 87% At least four years of primary school 5% First Cycle Basic Education enrollment (1990) Total 24% Girls 21.7% Second Cycle Basic Education enrollment (1990) Total 13.2% Girls 8.5% Higher education enrollment (1987) Total 3.3% Girls 1.8k Share of education in the national operating budget (1992) 21% Share of primary education in the education budget (1991) 38% Share of secondary education in the education budget (1991) 36% Share of higher education in the education budget (1991) 21% MALI YOUTH UNEMPLOYMENT SECTOR STUDY The Role of Education and Training CONTENTS Page No. EXECUTIVE SUMMARY ................................. vii I INTRODUCTION: THE SCOPE AND CAUSES OF YOUTH - UNEMPLOYMENT ....................................... 1 1.1 B ackground . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . 1 1.2 Scope of Youth Unemployment: a Worldwide Problem .................. 1 1.3 Causes of Youth Unemployment ................................ 3 II MACROECONOMIC POLICIES AND ADJUSTMENT IN MALI ........ 4 IH POPULATION, LABOR FORCE AND EMPLOYMENT TRENDS ........ 6 111.1 Demographic and Labor ForceTrends ............................ 6 111.2 EmploymentTrends ....................................... 9 IV LABOR MARKET INSTITUTIONS AND REGULATION IN MALI ...... 13 V THE UNEMPLOYEDYOUTH .............................. 19 V.1 General Unemployment and Youth Unemployment ................... 19 V.2 Urban Youth Unemployment: Bamako and Other Urban Centers ........... 25 V.3 Graduate Youth Unemployment --the Issue of the "Jeunes Diplm6s" . .................................... 25 VI THE EDUCATION SYSTEM AND EXTERNAL EFFICIENCY ........ 30 VI. 1 Technicallmbalance ...................................... 32 VI.2 Sociologicallmbalance ..................................... 36 VII REVIEW OF YOUTH EMPLOYMENT POLICIES AND PROGRAMS .... 39 VII. 1 Experiences in OtherCountries ............................... 40 VII.2 Experiences in M ali....................................... 42 VII.3 LessonsLearnt .......................................... 44 VIII CONCLUSIONS AND RECOMMENDATIONS ................... 45 VIII. 1 Improving the Match Between Education and Employment ............... 46 VIII.2 Implementing Short-Term Employment Policies and Programs: The Role of the Social Sectors. . . . . . . . . . . . . . . . . . . . . . . . . . . . ... . . . . . . . . . . . . . . . . 50 BIBLIOGRAPHY ANNEXES Contents (Continued) Page No. LIST OF TABLES Table 11.1 Key Economic Indicators (1985-94) ........................ 6 Table 111.1 Main Population Indicators and Trends (1985-2030) ............... 8 Table 111.2 Evolution of Participation Rates by Sex ...................... 9 Table 111.3 Evolution of the Distribution of Employment and GDP by Sector ..c.t.o. Table 111.4 Employment in the Modern Sector, Active Population and their Evolution (1974-87) ............................. 11 Table 111.5 Characteristics of Employed Labor in Bamako (1988) ........... 12 Table 111.6 Distribution of the Active Population According to the Education Level and the Sex (1987) .................................... 13 Table IV. 1 Evolution of Monthly Wages and Salaries, 1982-91 ............. 16 Table V.1 Relative Incidence of Unemployment Rates by Region and by Sex . . .. 22 Table V.2 Distribution of Unemployment by Age Groups and Sex (1987) ....... 24 Table V.3 Distribution of Unemployment According to Education Level and Sex (1987) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Table V.4 Unemployment Among Educated Youth According to the regions and the Sex (1987) ..................................... 27 Table V.5 Distribution of Unemployed Young Graduates According to the Degree and the Sex 91991) ............................. 28 Table V.6 Distribution of Unemployed Graduates According to their Area of Specialization (1991) ................................. 29 Table V.7 Distribution of Unemployed Graduates According to the Year of Graduation and the Degree (1991) ........................ 30 Table V1. 1 Social and Private Returns to Education ..................... 38 Table VI.2 Main Education Indicators (1990-91) ....................... 39 LIST OF BOXES Box 1.1 Defining Age Boundaries for the Youth ...................... 3 Box IV. 1 Wage Fixing in Mali (ONMOE) ......................... 15 Box IV.2 Description of the National Manpower and Employment Office (O N M O E) ....................................... 18 Box V.1 Defining Unemployment .............................. 20 Box VI. 1 Average Education Stock: Industrial, Developing Countries,a nd Mali (1987) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 1 Box VI.2 Description of the Education System ....................... 33 Box VII. 1 Two Successful Youth Employment Interventions in Africa ......... 41 Box VII.2 Employment Generation Projects in Mali ..................... 43 Box VIII. 1 Togo's Training and Employment Observatory ................. 47 Executive Summary 1. This study seeks to contribute to the understanding of issues pertaining to youth unemployment in Mali, particularly with regards to the role of the education and training system. It proposes a set of policy measures, responding to some of the concerns raised repeatedly by the Malian Government (as well as those of other Sahelian countries) regarding the need to address the social, educational, economic and political problems posed by youth unemployment. The knowledge base resulting from the study will also serve as an input into the Bank's macro-economic and sector work, in future lending operations, especially for human resource development, and in the dialogue with the Government. While the present study focuses on Mali as an example, it will serve as a basis for similar studies to be carried out in other Sahelian countries. 2. Although it is generally considered as a crucial segment of a larger problem --general unemployment-- youth unemployment has specific causes and damaging consequences, requiring not only particular attention, but also specifically targeted solutions. It is now recognized as a problem in its own right. It is especially acute in developing countries, and in Africa where rates of unemployment are already quite high (between 10 and 30% in a sample of 11 countries), youth unemployment is estimated to represent between two-thirds and three-quarters of total unemployment, although young people account for only a third of the labor force. In fact, youth unemployment is systematically higher than that of any other labor force category. 3. Mali's high levels of unemployment worsened during the last decade, doubling between 1976 and 1988 to reach the current 20% mark; and the unemployed youth represents a large proportion of total unemployment. Youth unemployment in this country, and particularly that of secondary and higher education graduates, disproportionate with regards to the other levels, present a real threat to the political stability of the country, and a waste that this poverty stricken sahelian country can ill-afford. According to a 1988 employment household survey carried out in Bamako, young unemployed (aged 15-29 in this survey) make up about two-thirds of the open unemployment and 85% offirstjobseekers. Among the latter, more than 90% have received some formal education, and 35% had graduated from secondary technical/vocational and higher education. There are also indications that among the unemployed, women are increasingly entering the labor market and are disadvantaged (according to the 1988 Bamako household employment survey, 32% of first job seekers were women, and unemployment rates were about 22% for women and 15% for men). 4. In Mali, as in other developing countries, the general issue of youth unemployment is compounded by that of educated unemployment which is likely to worsen in the near and medium future as economic stagnation in many countries is adversely affecting the economy's capacity to absorb the rapidly growing numbers of educated jobseekers. As many as 11,368 persons were reported in a 1991 survey of unemployed secondary and higher education graduates, of which 25% were women and 34% higher education graduates. The youth unemployment problem in Mali may not be resolved in the short term as every year an estimated 200,000 young people enter the labor market, including 3,500 graduates from - vii - secondary technical, vocational, and higher education, while employment opportunities have stagnated over the past few years and prospects for high economic growth are slim. 5. In summary, the features of unemployment in Mali are as follows: (i) youth comprises the largest proportion of the unemployed; (ii) youth unemployment rates (for all particular groups) are typically higher than that of the labor force as a whole, and the proportion of young people among the unemployed is higher than their share of the labor force; (iii) among youth, the burden of unemployment is not shared equally as the better educated youths who aspire to wage employment, and those living in urban areas, tend to bear a disproportionate share; (iv) young women have a higher unemployment rate than men. The main cause of youth unemployment (as of general unemployment) is a stagnant economy in face of steady increase of entrants to the labor market, due to a high rate of population growth. The study has also identified among other causes: (i) labor market operations and wage policies which limits employment opportunities in the private as well as the public sectors; (ii) mismatches between education and work which unduly raises youths job and status expectations, and provide skills that are not in line with the labor market requirements. 6. The Economy. Confronted with unsustainable fiscal and external deficits, the Government embarked in an IMF-supported stabilization program in 1985 under which a number of measures were introduced to reduce budgetary deficits, public enterprise operating losses, and public sector arrears. In this context, civil service recruitment has been tightly controlled and the guarantee of public sector employment to higher education graduates has been abolished. In addition, initial reforms --including market liberalization measures- were introduced to increase the efficiency of resource allocation. Under the most optimistic assumptions that the government's economic strategy remains on track, an average real growth of GDP of 4.2% per year and a low rate of inflation of 2.5% per year are projected in 1993 and 1994. Although such a rate would reverse the trends of declining GDP per- capita, in the short-term it would barely absorb new entrants to the labor force let alone the growing stock of the unemployed. In the long run, the structural reforms that will increase employment opportunities in the agricultural sector, may reduce the inflow of labor to the modern sector. The recent devaluation of the CFA improves significantly the competitiveness of the Malian economy and thereby its ability to create new employment. In addition, new prospects for Mali could be opened if the efforts to promote regional integration among the CFA countries were successful. 7. Population in Mali increases at an annual rate of 2.7%, that is a net addition of 250,000 people every year; close to 70% of the population is less than 25 years old, and in spite of the relatively low labor force participation rate (about 45% nationwide and even 27% in Bamako) such population growth translates into an increase of about 200,000 new persons entering the labor force every year. Migration, which used to play an important role in limiting the pressure on the national economy to create enough jobs and wealth for the increased population, has slowed down because economic conditions in neighboring countries have also deteriorated. The informal sector of the economy plays the role of labor sponge absorbing relatively higher proportions of the unemployed as growth in the modern sector employment is insufficient to absorb the massive entering cohorts of newcomers in the labor force. - viii - 8. Labor Market Regulations. Three (and perhaps four) different regimes can be distinguished in the Malian labor market: (i) the public sector, which comprises the civil service and public, enterprises; (ii) the formal private sector; and, (iii) the informal sector. These sectors differ in many important respects, including recruitment modes, dismissals, job security, promotion, pay, and working conditions. While the informal sector labor market operates according to laws of competition and tradition, labor relations in the civil service and the formal private sector are subject to rigid regulations: the General Civil Service Code and the Labor Code, respectively. As part of the Government economic restructuring efforts, a new labor code which removes many of the rigidities of the past one was adopted in 1992. However, due to social tensions in the country, only some aspects of this code --such as the authorization for private placement agencies to operate-- are enacted, while decrees governing controversial issues --such as conditions and regulations of workers' dismissals-- are held in abeyance. 9. Education and Work. Survey results underline a situation of low education attainment of the employed labor force coupled with a growing graduate unemployment at all levels (including higher education). At the same time, there is a shortage of midlevel skills in specific areas such as maintenance, stock management and supply, and production that explains a high placement of graduates of industrial sections in technical and vocational institutions (ECICA and EHEP). These obvious indications of technical mismatch between education and labor market stem from past and current educational policies and the lack of adjustment of graduates' expectations: (i) the policy of granting systematically scholarships to all higher education students which attracts students to higher levels of education in spite of limited job opportunities; (ii) the inefficient allocation of educational resources leave little room for improving the quality of education; (iii) the structure of the basic education curriculum does not offer preparation for training to the numerous basic education leavers; and, (iv) graduates are not adjusting their job and wage expectations to the new realities of the labor market, for lack of clear information on future employment prospects. 10. Special Employment Programs to alleviate youth unemployment in developing countries have aimed to (i) promote self-employment and enterprise creation; (ii) provide subsidized temporary private employment and training in exchange for subsidized wage or tax credit; (iii) provide direct government job creation through public works. In Mali, most of the special employment programs have focused on enterprise creation for young graduates. Two exceptions are however worth mentioning: a temporary replacement program to fund the employment of young graduates as teachers in secondary and higher education which has been successfully implemented, and a subsidized private employment program which has been initiated with only very limited success. In addition, a direct job creation program (AGETIPE) is being implemented successfully. POLICY RECOMMENDATIONS 11. The study makes two sets of policy recommendations: (i) long-term policy recommendations aimed at putting the education and training system in line with labor market requirements and easing the Malian youths' transition from school to work; and (ii) special employment programs aimed at providing short-term employment to the secondary and higher education graduates. Improving the Match Between Education and Employment Improving Labor Market Operations and Information System 12. The match between education and employment requires not only that the education system adapts to labor market requirements, but also that the labor market itself operates freely. The government has undertaken to improve labor market operations by removing important constraints to its functioning; indeed it recently adopted a new and liberal labor code and allowed the operations of private placement agencies; it has become urgent that, in consultation with its social partners (workers and employers), it take the necessary steps to implement this new labor code. 13. Labor market information is central to the solution of youth unemployment as it provides the feedback necessary for the education and training system to adjust to the labor market conditions. Indeed, the implications of reliable and timely dissemination of labor market information are at least three-fold: first, it permits the best possible match between labor supply and demand; second, it provides the basis for student choices and counseling/guidance on future career streams; and, finally, through regular and wide dissemination of data on the evolution of wages and job opportunities, it facilitates the adjustment of individual expectations, and therefore limits the effects of one of the most important causes of youth unemployment. A system of permanent observation of labor market trends and its training requirements should be established. Such an information system can rely on several sources of information, including (but not limited to) (i) institutional statistics, generated from the records of offices such as the social security (INPS), and public and private employment services; (ii) industrial surveys which describe the characteristics (and the pattern of their evolution, assuming a series of such surveys) of the labor force in a particular sector or industry. For example, annual manpower registration surveys (the D6claration annuelle de la main d'oeuvre -DAMO), could be a valuable source of information on employment in the formal sector; similarly, periodic surveys on the informal sector or on specfic industries or economic sector should be carried out; (iii) tracer studies, which follow a select number of graduates in their careers and provide useful information on the type of education, and curriculum contents, which allow graduates to perform better in the labor market; and, (iv) periodic household surveys to permit cohort studies and to analyze the causes and characteristics of unemployment and the economic and social conditions of the unemployed. 14. The ONMOE, now freed from its previous role of registering demand and supply of labor, could redirect its activities to carry out surveys, and studies on labor market trends. Indeed, a project which would establish an employment observatory, such as the one in place in other African countries (Togo, for example) is now being reviewed, and this study strongly recommends that this project be given due consideration. Improving the External Efficiency of Education 15. Adjust the Production of Graduates with Labor Market Demand. Much of the current mismatches in the labor market are due to the oversupply of graduates in higher and secondary education. Reducing the oversupply will require quantity rationing mechanisms and an effective selection process which would filter access to these levels of education to only those with higher chances of success. One key rationing instruments is the scholarship both in secondary and higher education; it is recommended that the policy of systematic awarding of scholarships to all higher education students be revised, and that this equity-enhancing mechanism be allowed to fully play its role of permitting only capable and needy students to pursue their studies. To achieve this, objective and well publicized criteria and a transparent procedure for granting scholarships should be established. 16. Expand and Inwrove the Quality of Primary Education. Mali's low primary enrollment rates is an important obstacle to development since solid foundation of basic knowledge as provided by quality primary education is key to the acquisition of effective vocational and technical skills. Expanding primary education and improving its quality will require (i) additional resources to primary education, including through re-allocation from higher levels of education, in order to increase the provision of inputs (teachers, books, and teacher training) and improve management of schools; and, (ii) a more efficient use of available resources. The government has undertaken to work towards these objectives, with support from the Bank through its Education Sector Consolidation Project. This study confirms the soundness of this approach and suggests that the drastic budgetary restructuring and the re-allocation of resources in favor of primary education necessary for this policy to succeed would need to be resolutely carried out. 17. Make the VTE School Curriculum more Receptive to the Labor Market Signals. Adapting the school curriculum to the changing patterns of the labor market should be a constant preoccupation. This study has indicated, for example, that in view of the limited job prospects in the modern sector of the economy in the near future, most of the employment generation programs have focused on the creation of small enterprises by young graduates. Unfortunately, the school curricula have not changed to respond to this new demand and to prepare graduates for these opportunities. What is needed is to reorient the curricula in vocational and technical training institution to provide student with a solid general and technical background reinforced with in-school practical training, and to allow for in-firm short specific training. The characteristics of the training and the specialties taught should be in-line with the needs of the Malian economy. This can be achieved only if the management structure of the VTE schools change, and employers be included in the school boards. This reorientation should also aim to promote more entrepreneurial and adaptable behaviors, as well as the acquisition of practical skills preparing graduates for employment in the private modern, and informal sectors, including self-employment. - xi - 18. Establish Short and Medium Term Training for Traditional Apprentices. This study has observed that only very limited technical and vocational training opportunities are offered to students before they reach secondary education. Furthermore, given the low quality of education, very few students reach this level. Interestingly, these students who do not have access to secondary and higher education levels, and who consequently have lower job expectations, face lower unemployment rates; they integrate the informal sector where they acquire technical skills through strictly practical learning-by-doing (traditional apprenticeship system) under the supervision of a master. This kind of training excludes any general and theoretical knowledge which, therefore, limits the capacity of the graduates to adapt to technological improvements in their fields. A system providing short to medium term training (depending on the type of trade being taught) to apprentices having established a solid relationship (at least several months) with an employer/master would contribute greatly to improving the overall skills level and productivity in the informal sector. The formal sector would also benefit indirectly from such training as it often recruits skilled workers having been trained through the traditional apprenticeship system. To be successful, the training modalities should be flexible enough to accommodate both the needs of the trainees and those of the employers/masters; in addition, the training should focus on providing theoretical knowledge leaving to the masters the responsibility for providing practical skills; finally, the sustainability of such a program would require a carefully designed cost-sharing scheme. A few training centers in Mali (such as that of the Pere Michel) are already providing such training (with donor support) at a scale unfortunately too small to satisfy the needs; greater support to these initiatives should be provided. 19. Establish Enterprise Internship Programs. The Government has initiated an enterprise internship program which provides financial incentives to the firms who participate in it (lower salary cost for the trainee and tax breaks), and practical training opportunities for graduates. This initiative, which is not yet as successful as expected, given the currently low level of labor demand elasticity in the modern sector, and the limited incentive to firms, should be reviewed to identify the constraints and revised accordingly. Priority should be given to providing graduates with this opportunity to acquire relevant on-the-job training and the experience needed to perform in the labor market. In addition, the participation of firms in this program is a good opportunity for the education/training system to seek and receive the feedback it needs to improve the contents of its curricula and match labor market requirements. 20. Initiate and Systematize Student Counselling. Student counseling and guidance on career opportunities help students make the right career choice for their aptitudes. What is required to set up an effective counselling service are a reliable information system as described above, and trained counsellors who understand and have up-to-date information on the labor market trends (occupational profiles, job contents, skills requirements, wages and remunerations components, employment prospects, education requirements, etc.). Mali lacks such a system and should consider establishing, within the education ministries and in connection with ONAMOE, a counseling/guidance service. Establishing such services will require that extensive training of counsellors be undertaken. - xii - Implementing Short-Term Employment Policies and Programs: The Role of the Social Sectors. 21. The focus of this study is on the role of education and training, and this role is usually (and rightly so) perceived as having only medium to long-term impacts. In a country such as Mali characterized by enrollment rates among the world's lowest, and unusually high graduate unemployment, the education sector is easily seen as a sector with tremendous employment opportunities. Indeed, the government has already perceived this opportunity and has started, through the ONMOE, successful temporary employment programs in secondary and higher education. However, the education priority in Mali is to greatly increase access to primary education; this is likely to be achieved through the implementation of a combination of key policy reforms and special programs to supply primary education with additional teachers and facilities with only limited net budgetary outlay. The policy measures include: (i) the re-allocation of budgetary resources from higher levels to primary education; (ii) the re-deployment of the teaching corps from central education services and urban centers to rural schools; (iii) the active involvement of local communities in the provision of education; and, finally, (iv) the injection of additional resources into the education budget. This study recommends one special program which would link the grant of higher education scholarships to the provision of two years of teaching services in primary education. I. INTRODUCTION: THE SCOPE AND CAUSES OF YOUTH UNEMPLOYMENT I.1 Background 1. This study seeks to contribute to the understanding of issues pertaining to youth unemployment in Mali, particularly with regards to the role of the education and training system. It proposes a set of policy measures, responding to some of the concerns raised repeatedly by the Malian Government (as well as those of other Sahelian countries) regarding the need to address the social, educational, economic and political problems posed by youth unemployment. The knowledge base resulting from the study will also serve as an input into the Bank's macro- economic and sector work, in future lending operations, especially for human resource development, and in the dialogue with the Government. While the present study focuses on Mali as an example, it will serve as a basis for similar studies to be carried out in other Sahelian countries. This study has been seriously constrained by data limitations; indeed, most of the employment and labor market data available are either incomplete in their coverage, outdated, or unreliable. 2. The study is divided into six sections. Section I introduces the study and the scope of youth unemployment; Section 2 provides an overview of the economic situation in the country, the structural adjustment program and its overall impact on employment; Section 3 analyzes important population and labor force trends; Section 4 analyzes labor market regulations; Section 5 describes the characteristics of youth unemployment in Mali and its evolution; Section 6 describes the education system and assesses its relationship to youth employment; Section 7 reviews youth employment policies and programs; and, finally, Section 8 concludes and makes recommendations. 1.2 Scope of Youth Unemployment: A Worldwide Problem 3. Youth unemployment first emerged as a major problem during the 1960s in the United States, spreading soon thereafter to most other Western industrial countries and developing countries. It is now recognized as a problem in its own right; for example, because youth unemployment affects the transition from childhood to adulthood, it generates psychological and economic costs, to be born not only by the concerned individuals, but also by the country as a whole. Besides the obvious loss of production, youth unemployment often results in societal divisions (through, for example, increase in crime and unrest), with serious social consequences, and threats to the social stability needed for economic development. Although it is generally considered as a crucial segment of a larger problem --general unemployment- youth unemployment has specific causes and damaging consequences, requiring not only particular attention, but also specifically targeted solutions. 4. Youth unemployment rates in industrialized countries are observed to be typically two to three times higher than those of adult unemployment. (Touraine, 1991; Gordon and Trow, 1979; Melvyn, 1977) Empirical studies document the linkage between the severity of youth unemployment (as compared to adult unemployment) and economic growth. For example, data for the US show that youth unemployment has become more severe in each downturn of the economy since 1950 (Stevenson and Adams, 1992). In spite of this cyclical direct linkage with -2- the ability of the economy to grow and generate jobs at a pace compatible with population growth, it is apparent that youth unemployment does not disappear during periods of prosperity, and that certain long-term trends in the labor market indicate that youth unemployment is a structural problem that will persist for a long time. 5. In developing countries the problem of youth unemployment, although much less documented than in industrialized countries, is recognized as being more acute than in developed countries. According to ILO, it represents typically more than half of total unemployment (from 48% to 74%). In Africa, where rates of unemployment are already quite high (between 10 and 30% in a sample of 11 countries), youth unemployment is estimated to represent between two- thirds and three-quarters of total unemployment, although young people account for only a third of the labor force. In fact, youth unemployment is systematically higher than that of any other labor force category (Vandermoortele, 1990). 6. In Africa, as in other developing regions, the general issue of youth unemployment is compounded by that of educated unemploymentY, which is likely to worsen in the near and medium future as economic stagnation in many countries is adversely affecting the economy's capacity to absorb the rapidly growing numbers of educated jobseekers. Evidence from seven African countries!' indicate that the relation between education levels and unemployment rates follow an inverted U-shaped curve; these rates are relatively low for the uneducated workforce, they rise with education to culminate with lower secondary education, and decline for upper secondary and university graduates. However, with the rapid education expansion, there is evidence that unemployment is progressively affecting higher levels of education. In the 1970s primary school leavers constituted the bulk of the unemployed; in the 1980s, according to more recent evidence, secondary education graduates increasingly filled the ranks of the unemployed; and there are already numerous signs that higher education graduates are experiencing growing difficulties in the labor markets of the 1990s. On the other hand, the inverted U-shaped curve (and, for that matter, any other pattern than a decreasing one) may suggest that at least some youth unemployment is "voluntary", with more educated youth refusing to work at jobs their less educated peers accept. 7. Mali's high levels of unemployment worsened during the last decade, doubling between 1976 and 1988 to reach the current 20% mark; and unemployed youth (in large part educated) represent a large proportion of total unemployment. According to a 1988 employment household survey carried out in Bamako, young unemployed (aged 15-29 in this survey) make up about two- thirds of the open unemployment and 85% of first jobseekers. Among the latter, more than 90% have received some formal, education, and 35% have graduated from vocational and higher education. There are also indications that among the unemployed, women are increasingly entering the labor market and are disadvantaged (according to the 1988 Bamako household employment survey, 32% of first job seekers are women, and unemployment rates are about 22% for women and 15% for men). The youth unemployment problem in Mali may not be resolved Y While the lack of education and training constitutes the most important characteristics of the unemployed youth in industrialized countries, educated youth in Africa are more prone to unemployment than uneducated youth (Vandemoortele, 1990). C6te d'Ivoire (1985), Ethiopia Addis (1984), Ghana (1987/88), Kenya urban (1986). Mauritius (1983), Nigeria urban (1985) and Zimbabwe (1986/87). -3- Box 1.1: Defining Age Boundaries for the Youth Youth is commonly referred to as the stage of life marked by the transition from childhood and dependence to adulthood and independence, and the assumption of a more active and responsible role in society. Although there are common characteristics for youth, defining the age boundaries of this group can be a difficult endeavor. Indeed, youth is an heterogenous group with diverse socio-cultural and economic backgrounds because each society has different roles for youth and adults, and different ages at which adulthood is reached. Factors that affect the boundaries may include: period of compulsory'schooling, access to higher education and training, legal minimum age for admission into employment, minimum for voting age, etc. and, depending on the context and the factors used, youth may encompass people with such different characteristics as the.15 year old herder in rural Mali who has been earning a living since he was 6, and the 25 year old university student who has yet to graduate and make his/her transition to the world of work. Widely accepted definitions of youth include all those aged between 15 and 24. These limits are admittedly arbitrary, as many young people in developing countries begin work as early as 6 (according to the Mali Census which included them in the labor force). This definition is legitimate as international recommendations (Eight ICLS, 1954) do not prescribe a specific minimum age limit for a person to be included in the labor force. The UN Statistical Commission (1966) indicates that for census questions on economic activity, it is recommended that the minimum age limit be set in accordance with the living conditions in each country, but never higher than 15 years. Labor of young people below 15 is, however, generally defined as child labor. The upper boundary of the definition of youth can also be called into question in developing countries where, because of late enrollment or simply the very low internal efficiency of the education system, students do not graduate from university until their late 20s and often much later. In Mali, for these reasons, there is a marked tendency to include among the "jeunes dipl6ms" graduates as old as 35, some of whom may have graduated years ago but who for lack of suitable job opportunities have not yet made the transition from school to work. in the short term, as every year an estimated 200,000 young people enter the labor market, including 3,500 graduates from secondary technical and vocational and higher education, while employment opportunities have stagnated over the past few years and prospects for high economic growth are slim. 1.3 Causes of Youth Unemployment 8. The most frequently mentioned causes for youth unemployment in industrialized countries are: (i) general job shortage; (ii) downturns in economic cycles; (iii) preference of employers for adult workers; (iv) rigidities in the labor market, legislation and practice, favoring the job security of established workers which inhibits job opportunities for youth; (v) opportunity costs of employing young people at the same wages as those earned by more experienced and productive adult workers; (vi) reduced demand for apprentices, which is in some countries (such as Germany) an effective way of smoothing the transition to work of school leavers; (vii) attitudes of young workers towards work; (viii) loss of jobs and training places; (ix) changing skill structure accompanied by the decline of the relative importance of unskilled jobs; and (x) gap between school and work. 9. Developing countries, including African countries and Mali, share the same causes for youth unemployment as industrialized countries. However, in developing countries four causes play an especially significant role: (i) slow economic growth and general job shortage exacerbated in Mali by the transitory impacts of the measures taken to stabilize the economy (such as the -4- hiring freeze in the public sector and the closure of many public enterprises); (ii) acceleration of population growth and labor force participation; (iii) labor market rigidities and the lack of information, intermediation, and counseling, which often hinders the success of remedial policies and actions; (iv) mismatch between education and work. The next sections analyze the responsibilities of each of these causes in worsening youth unemployment in Mali. II. MACROECONOMIC POLICIES AND ADJUSTMENT IN MALI 10. Mali, a vast (1.2 million square kilometers), land-locked, resource-poor Sahelian country, is one of the least advanced countries in Subsaharan Africa. Its estimated GNP per capita of US$280 in 1991, declined at a rate of -0.1% per year between 1980 and 1991, and prospects for a positive growth of the GNP per capita during the 1990s are highly constrained by a narrow physical resource base, variable climate, the legacy of inappropriate development policies, and by a particularly weak human resource base.2' Agriculture, which occupies 80% of the estimated 8.5 million population, generates less than half of GDP, with cereals and livestock production alone contributing more than one third of total value added. Mali's industrial sector, mainly agro-based, has remained small (about 6% of GDP), while the potential of the mining sector has yet to be fully exploited. The trade subsector, which developed out of the traditional commercial activities, has become increasingly important although it is still dominated by informal sector activities. 11. The state-dominated development strategy pursued until the early 1980s led to serious inefficiencies in public resource management and the incentive framework such as: disproportionate share of personnel with respect to operating and maintenance expenditure, inadequate investment decisions, overly complex fiscal system which distorted resource allocation signals, price controls, restrictive trade regime and excessive regulation which allowed scarce economic resources to be drawn into inefficient economic activities. In addition, the private sector (about 12,000 employees) face tremendous constraints derived largely from the inefficiencies mentioned above and also from the underdevelopment of the physical infrastructures, a burdensome administrative machinery, an overvalued real exchange rate, and inadequately trained workers. 12. Confronted with unsustainable fiscal and external deficits, the Government embarked on (a) an IMF-supported stabilization program in 1985 under which a number of measures were introduced to reduce budgetary deficits, public enterprise operating losses, and public sector arrears; and (b) Bank-supported structural and sectoral adjustment programs implemented since 1988 which emphasize policies to (i) foster an environment conducive to the promotion of private sector activity, savings and investment, and international economic competitiveness; (ii) improve public resource management; (iii) develop the human resource base and strengthen the management of natural resources. In the context of these programs, the country has undertaken a revision of the major components of the regulatory framework: between 1990 and 1992, new investment, labor and commercial codes have been adopted, and a revised procurement code has been approved. In addition, sectoral restructuring programs have been undertaken: for example, The illiteracy rate is estimated at 81%, primary education enrollment rates are among the lowest in the world, and availability of health services is limited. -5- the major government-controlled financial institutions (Banque de Developpement du Mali, and the postal checking and savings system) have been restructured; cereal marketing has been fully liberalized, and a medium-term restructuring program is under implementation in the cotton sector; civil service recruitment has been tightly controlled and the guarantee of public sector employment to higher education graduates has been abolished; initial reforms --including market liberalization-- were introduced to increase the efficiency of resource allocation; in the education sector, stricter criteria for granting scholarships have recently been adopted and plans for introducing double shift have been prepared. 13. The measures already implemented have contributed to major economic improvements; for example, (i) real GDP has averaged about 3.3% per year since 1987;1' (ii) the current government budget improved from a deficit of 0.3% of GDP in 1987 to a surplus of 2.1% of GDP in 1991, and the current account deficit fell to 13.7% of GDP in 1991 from a peak of 28.5% in 1985. However, the recent process of political transformation (which has slowed down the pace of implementation of the reforms), combined with the country's structural problems (such as the limited diversification of agriculture, the economic mainstay of the population), and the highly variable climate affecting agricultural production, have limited the sustainability of economic growth. In addition, significant slippage with respect to the program of economic reform occurred; these slippage, largely attributable to significant extra budgetary outlays, unplanned fiscal concessions and growing custom fraud, financial scandals at the Treasury, and sharper than anticipated drop in world prices for cotton, have contributed to deteriorate the recent economic performance of the country and tarnish further its economic prospects. 14. The worsening macro-economic situation during the 1980s, has exacerbated the already critical employment situation in the modern --mostly urban-- sector, particularly that of young people. In addition, the deficit of the public enterprises, which represented 6% of the GNP in 1982, prompted a drastic restructuring resulting in the retrenchment of 25% of their workforce between 1979 and 1985, followed by an additional 3,400 layoffs. Since then, unemployment has increased steadily, and the relative economic growth observed at the end of the 1980s, was insufficiently sustained to absorb the additional supply of manpower. This is because the tremendous constraints still faced by the private sector limits its ability to drive economic growth, and therefore create enough jobs to absorb the large number of unemployed. 15. Under the most optimistic assumptions that the government economic strategy remains on track, an average real growth of GDP of 4.2% per year (for an inflation which should remain low -2.5% per year) is projected in 1993 and 1994. Although such a rate would reverse the recent trends of declining GDP, it may not translate, in the short-term, into an increase in employment sufficient to absorb the stock of already unemployed and the flow of newcomers in the labor market (200,000 per year). However, the structural reforms have increased employment opportunities in the agricultural sector, which may reduce the negative impact of layoffs in the industrial and commercial sectors. In addition, new prospects for Mali could be opened if the efforts to promote regional integration among the CFA countries were successful. The annual nominal GDP growth rate was 5.4% per year between 1985 and 1992. Large annual variations related to both climatic conditions and the heavy dependence on agriculture are observed during this period. -6- Table 11.1. Key Economic Indicators (Percent, 1970-1992) 1970-80 1980-85 1985-92 Annual GDP Growth Rate 4.0 1.1 5.4 Distribution of GDP 1970 1982 1991 Share of Agriculture in GDP 61 46 44 Share of Industry in GDP 11 11 12 Share of Manufacturing in GDP 7 -- 11 Share of Services in GDP 28 43 43 Source: World Development Report (1985, 1993). The World Bank III. POPULATION. LABOR FORCE AND EMPLOYMENT TRENDS 111.1 Demographic and Labor Force trends 16. This section analyzes the demographic and labor force trends in Mali and compare them with the employment past and projected trends to identify the potential job gaps and their impact on youth. An attempt is made to identify all sources of employment including primary, secondary and tertiary sectors, modern and informal activities. The data used in this section come from the World Population Projections, the 1987 Population Census, and other Government official statistics. 17. Labor market analysis in Mali is limited by scarce and largely unreliable and inconsistent statistical information. First of all, this information is patchy; the only recent studies available are: (i) the 1987 Population Census; (ii) the 1988 employment and unemployment survey in Bamako; (iii) the 1990 modern enterprises employment census (Diclaration annuelle de la main d'oeuvre --DAMO); (iv) the 1990 Bamako Employment Household Survey; and, (v) the 1991 Census of Unemployed Graduates (which would have greatly enhanced the understanding of the issue of graduate unemployment in Mali, but which has hardly been analyzed). In addition, the studies available are mostly focused on the urban sector, and/or utilize concepts, definitions, recall periods, age limits, and categories which are often incompatible, leading to large variations when comparing results. For example, according to the 1987 Population Census, there were only 28,218 unemployed in Mali (computed from a labor force including all 6-year and older persons), a figure only 5% higher than that found in the 1988 Bamako Household Employment Survey for the city of Bamako alone (26,856). Finally, no national household labor force survey results or other microdata on labor force is available and consequently the report has not been able to test some important hypotheses such as: what is the role of the high reservation wages in youth -7- unemployment? What is the impact of youth unemployment on economic hardship of families? What is the duration of youth unemployment (long or frequent short spells)? What are the relative importance of unemployment or under-employment? Are there labor market re-entry problems associated with long spells of youth unemployment and with withdrawal from the labor force? What are the current social and private returns to education? 18. Population in Mali is estimated at 8.5 million, with another 3 million Malians estimated to be living abroad. Although the current population growth rate is currently among Africa's lowest (2.7% per year between 1990 and 1995), it is rising; the fertility rate is among the highest in Africa (7 births per woman) and total population is projected to rise until 2005 when the growth rate is expected to reach 3.2% (Table 111.1). The impact of such potentially high population growth on youth unemployment cannot be overemphasized in a country which faces tremendous constraints to economic growth. Each year there is a net addition of more than 250,000 people to the country's population. With an estimated 50% of the population between 15 and 65 (47% are 15 or younger, and'67% are less than 25 years old), the dependency ratio ', currently 100, has regularly increased during the last 30 years from 62 in 1976. These trends have a detrimental impact on the employment situation by increasing labor supply far beyond the capacity of the economy to generate jobs. Furthermore, such trends hinder the efforts undertaken by the government to improve the disastrous social indicators of the country by increasing the demand for social services' 19. The labor force participation rate (defined as the percent of the population aged 15-59 participating in the labor force) was just 45% in 1987 --an increase from 35% in 1976-- and even lower in urban centers (27% in Bamako in 1988, slightly higher than the 1976 rate of 25%). These figures hide larger increases in participation rates among women, whose participation tripled nationwide between 1976 and 1987, from 12% to 33%, an increase much higher than men's (from 39% to 56%, see Table 111.2). Every year, more than 200,000 new persons enter the labor force (equivalent to one-fourth the population of Bamako), far exceeding the number of those leaving for retirement. In addition, although school enrollment rates have stagnated over the last decade (expansion of the education system has not kept pace with population growth), the absolute number of educated youth entering the labor market has increased at a higher rate than the economy can absorb. 20. Migration! is a widespread response in Mali to unsatisfactory employment opportunities, although little reliable information exists for analysis. We can observe the important role of labor market adjustment played by emigration in the fact that the natural rate of population increase (about 3.2%) exceeds population growth (3%). Further, a study in the Bougouni region revealed that migrants represent as much as 12% of the surveyed population, and that 82% of these migrants are part of the active population (aged 14 to 60). The destination of most of the migrants is abroad (C6te d'Ivoire, Guinea, S6n6gal and France, principally), while about 20% The ratio of the population defined as dependent (under 15 and over 64 years) to the working age population (15 to 64). Adult illiteracy is 81%, life expectancy at birth is 48 years, and infant mortality rate is 166 per thousand (the average in Subsaharan Africa is 107 per thousand). 2/ Migrants are estimated to be 3 million, most of them in C6te d'Ivoire. - 8- migrate to other regions of the country, mostly to urban centers. Foreign emigration, justified in the past by prospects for higher income abroad, has lost much of its attraction recently because of slower growth in C6te d'Ivoire and limited job opportunities, absence of exchange rate premium since Mali was admitted in the West African Monetary Union (UMOA), and the improvement of agricultural prices in Mali. As a consequence, according to the above study the duration of migration of 90% of the migrants does not exceed one year. 21. Within Mali, the 1970s and 1980s witnessed massive rural exodus from the desertic northern areas into the cities--largely due to 15 years of recurrent drought. The high rate of rural to urban migration, presumably to take advantage of better employment opportunities and social services (education and health), is reported to have slowed down considerably. Table 111.1 Main Population Indicators and Trends (1985-2030) 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 Total Population (th.) 7,389 8,460 9,766 11,410 13,371 15,562 17,988 20,643 23,482 26,399 Active Population' (th.) 3,728 4,251 4,881 5,695 6,689 7,901 9,430 11,271 13,318 15.560 - % of Total Pop. 50 50 50 50 50 51 52 55 57 59 Population 15-25 (th.) 1,395 1,716 1,913 2,231 2,639 3,096 3,680 4,345 4,933 5,457 - % of Total Pop. 19 20 20 20 20 20 20 21 21 21 - % of Active Pop. 37 40 39 39 39 39 39 39 37 35 Growth Rate 1985-90 1990-95 1995-2000 2000-05 2005-10 2010-15 2015-20 2020-25 2025-30 Total Population (%) 2.7 2.9 3.1 3.2 3.0 2.9 2.8 2.6 2.3 Active Population " 2.7 2.8 3.1 3.3 3.1 3.8 3.6 3.4 3.2 Pop. 15-25 (%) 4.2 2.2 3.1 3.4 3.2 3.5 3.4 2.6 2.0 * Potentially active population (Population aged 15-65). Source: World Population Projections. 1992-93 Edition. -9- Table 1.2 Evolution of Participation Rates by Sex (Percentages, 1976-88) 1976 1988 National Males 39.0 55.9* Females 12.0 32.9' Total 35.0 45.1* Bamako Males 43.2 42.6 Females 7.0 10.2 Total 25.2 26.5 Source: Lachaud (1990): Le March6 du Travail au Mali: Analyse et Politiques ' Denotes data for 1987 instead of 1988. 111.2. Employment Trends 22. Confronted with a lack of reliable data to directly measure the evolution of employment in Mali, indirect approaches must be used. In a labor surplus economy such as Mali's, trends in employment can be assessed by labor demand alone, primarily through analysis of trends in production growth (GDP). F During the 1960s and the 1970s, growth of GDP per-capita averaged 3%, and 5% , respectively, but then declined during the 1980s (and even turned negative, -0.1 %, for the period 1980-1991). During the same period, important transformations in the structure of employment in the country occurred: as the results of changes in the structure of the GDP, employment in the primary sector decreased while that of the secondary and tertiary sectors increased (See Table 111.3). While the development of tertiary sector activities has been faster than the other sectors, it has absorbed proportionately fewer workers. Interestingly, urban centers2' display a different pattern due to the growth of the informal sector. In Bamako, for example, a strong evolution towards tertiary employment is observed (the share of tertiary employment in total rose from 43% in 1976 to 63% in 1988). Considering employment alone, the national trends are rather troublesome as they indicate limited prospects for reducing 91 It is recognized that demand for labor is determined by two factors: production growth and labor productivity, with the latter being influenced by technical advances, elasticities of substitution, labor intensity, and variations in labor costs. In the absence of reliable data on all these factors, this study relies only on production growth. 2' During the same period, the percentage of the urban population rose from 13% to 19% while a decline in the annual growth rate of the same population was observed (from 4.8% between 1965 and 1973 to 3.4% between 1980 and 1987). - 10 - unemployment. However, given that added value per worker in agriculture is about 20% to 25% that of industrial and services workers, and the tremendous constraints to the development of industrial activities, agricultural-based growth in Mali could achieve the dual objective of economic growth and increases in employment. 23. Public sector employment is the most important formal workforce in the country. It comprised in 1987 3,000 workers, representing 80% of the total modem sector employment and 3% of total employment, including some 33,000 civil servants,:0' and 20,000 public enterprise workers. Since 1980, recruitment in the civil service has been limited to filling vacancies for which a budgetary allocation has been made, because of the government's inability to sustain financially the past rapid growth of public employment, and since 1983, recruitment has been subject to passing a competitive exam. During this time the number of vacancies has been reduced regularly; on an annual basis only 250 recruits are planned, while more than 600 civil servants reach retirement age (in 1993, an exception to this policy was made and 300 custom agents and 600 military personnel were recruited). In addition, a voluntary departure program began in 1991, resulting in the resignation of some 1,000 civil servants and the departure of another 2,500 temporary government employees who did riot pass the civil service exam administered to them. Finally, the restructuring of the agriculture sector is expected to result in a loss of about 2,000 positions in the Rural Development Operation. Employment in public enterprises has also declined considerably as the result of the Government's divestment from a number of sectors, which involved the rehabilitation, privatization or liquidation of some 36 public enterprises leading to a net loss of some 3,700 employees between 1988 and 1992. 24. Two important phases need to be distinguished in the past evolution of modern sector employment: from 1974 to 1981, and 1981 to 1987 (for lack of more current data). Table III.4 shows that during the first period total employment rose at a rate of 4.5% per year, while public sector employment rose at a rate of 8.6% annually, and private sector employment expanded very little (1.3% per year). After 1981 recruitment in the public sector slowed down, especially from 1983 (1.3% growth per year in the civil service and 0.3% in the public enterprises), while private sector employment expanded by 5% per year; however, its role was limited by its very narrow base, about 18% of total modem employment. 25. The informal sector of the economy clearly plays the role of labor sponge, absorbing relatively higher proportions of the unemployed. Indeed, Table III.4 shows that the increase in modern sector employment (by and large located in urban centers) has been insufficient to provide jobs to all the newcomers in the urban active population; the annual rate of growth of the active urban population is about 5%, that is much higher than the 1.4% increase in modern sector employment between 1981 and 1987 (and even the 4.5% increase between 1974 and 1981). In the absence of data, one can assume that much of the gap between non-agricultural population growth and that of modern sector employment during this period has been absorbed by the informal sector (another important proportion of the excess supply labor has certainly resorted to emigration or remained in the country as unemployed). According to some sources, 60% to 70% of the urban labor force operate in the informal sector, with informal urban employment in Mali growing much faster than the formal sector. However, the number of jobs created in this Lo Excluding about 10,000 non-permanent staff. More current figures for public sector employment are 57,000, including 37,000 civil servants. - 11 - sector is certainly lower during the current economic crisis than it would have been in times of economic growth; the reduction of the purchasing power of the Malians have -undoubtedly had a negative long-term impact on demand for goods produced in the informal sector and consequently on its capacity to generate additional jobs. Therefore a large proportion of the observed growth in informal sector employment could be the result of job sharing, a common phenomenon in this sector. Table W.3 Evolution of the Distribution of Employment and GDP by Sector (Perc.) 1965 1976 1987 Sector Employment GDP Employment GDP Employment GDP (1965) (1976-77) (1985-86) Primary 91 65 88 61 80 51 Secondary 1 9 5 9 9 14 Tertiary 8 25 7 30 11 35 Total 100 100 100 100 100 100 Source: R6publique du Mali. Plan Quinqu6nal 1987-91. Table 1.4 Employment in the Modern Sector, Active Population, and their Evolution (1974-87) (Thousand and Percentages) Employment 1974 1981 1987 AGR" 81/74 AGR* 87/81 AGR'87/74 Central Administration 17.4 31.0 33.5- 8.6 1.3 5.2 Modem Sector Industry/Services 26.8 29.1 32.0 1.2 1.6 1.4 - Public 18.4 19.8 20.1 1.1 0.3 0.7 - Private 8.5 9.3 11.9 1.3 4.9 2.6 Total Employment 44.2 60.1 65.5 4.5 1.4 3.1 Urban Active Population- 248.8 351.8 475.0 5.0 5.0 5.0 Source: Lachaud (1990): Le Marchi du Travail au Mali: Analyse et Politiques * AGR: Annual Growth Rate Excluding temporary employees. Estimated by projecting 1976 Census data, assuming a 5.0% growth. - 12 - Table 1.5 Characteristics of Employed Labor in Bamako (Distribution, 1988) Formal Sector Informal Sector Total Sex Males 78.7 89.0 82.0 Females 21.3 11.0 18.0 Total 100.0 100.0 100.0 10-14 2.8 5.1 4.3 15-24 16.4 31.7 24.6 25-39 51.8 31.4 40.8 40-54 25.8 20.3 22.5 > =55 2.9 10.8 7.1 ND 0.4 0.7 0.6 Total 100.0 100.0 100.0 Education None 15.7 80.9 69.2 Primary 8.5 11.2 10.7 Secondary General 1 (DEF) 7.9 1.8 2.8 Secondary General 2 (BAC) 4.2 0.8 1.4 Secondary Technical I (CAP) 22.0 3.3 6.7 Secondary Technical 2 (BTN) 18.0 1.3 0.7 Higher 24.0 0.8 5.0 Total 100.0 100.0 100.0 Note: The informal sector category includes: self-employed, apprentices, and family workers Source: Lachaud(1990): Le Marcht du Travail au Mali: Analyse et Politiques (1990) - 13 - Table 111.6. Distribution of the Active Population According to the Education Level and the Sex (1987) Males Females Total Number Percent Number Percent Number Percent No Education 1.811.369 84.23 1,189,970 92.45 3,001,339 87.31 Basic Ist Cycle 143,417 6.67 35,716 2.77 179,133 5.21 Basic 2nd Cycle 52,210 2.43 12,064 0.94 64,274 1.87 Secondary 10,801 0.50 1,890 0.15 12,691 0.37 Professional 22.301 1.04 7,562 0.59 29,863 0.87 Higher Education 9,729 0.45 1,648 0.13 11,377 0.33 Other Diplomas or Titles 613 0.03 161 0.01 774 0.02 Literacy Campaigns 11,703 0.55 689 0.05 12,392 0.37 Undeclared 85,259 3.96 37,431 2.91 122,690 3.57 All 2,150,402 100.0 1,287,131 100.0 3,437,533 100.0 Source: 1987 Population Census in Mali. IV. LABOR MARKET INSTITUTIONS AND REGULATION IN MALI 26. This section reviews Malian labor market institutions and their operations, and analyzes their role in regulating the interplay between supply and demand. This study is carried out at a turning point in the evolution of Mali's labor market institutions. A new and liberal labor law has been passed in 1992; however, key articles of this law are not yet enacted. For example, while the new labor code recognizes the right for an employer to layoff workers for economic causes (defined, in Art. L47.6, as economic distress, restructuring of the work process, and technological change) it also give workers the right to challenge their dismissal before a labor tribunal, thereby suspending the layoff decision. A Government decree expected to regulate the adjudicatory process has not yet been taken. For this reason, this section focuses on past practices of hiring, dismissals, wage fixing, promotions, etc. and analyzes the current labor market information system in the country and its potential role. 27. Three (and perhaps four) different regimes can be distinguished in the Malian labor market: the public sector, which comprises the civil service-and public enterprises; the formal private sector; and the informal sector. These sectors differ in many important respects, including recruitment modes, dismissals, job security, promotion, pay, and working conditions. In these aspects Mali's situation is similar to most Sub-Saharan African countries. - 14 - 28. The framework for labor relations in the civil service is the General Civil Service Code (Statut Gingral de la Fonction Publique). This code determines salaries according to a rigid and detailed scale (grille indiciaire), corresponding to specific grades and steps. It also provides strict guidelines for employee promotion based on annual evaluation which, in principle, accounts for merit and professional value, but in fact amounts to an automatic promotion by seniority for most employees. Recent information on the distribution of civil servants salaries are not available (see Annex IV). According to 1992 data, the total civil service salary bill was CFAF 41,249 million for 36,829 employees; therefore, the average monthly salary was CFAF 93,335 that is 5 times the current SMIG. Benefits, many of which do not vary with salaries (family allowances, housing allowances, etc.), represented in 1991 about one-third of the total earnings of the lowest categories and 3 to 5% of that of the highest categories (See Annex IV). These proportions account for the solidarity allowance (a progressive allowance which benefits the lowest salary groups) which is granted since 1991. Labor relations in the public enterprises are regulated by specific texts contained in a public and mixed enterprises personnel status. They represent in many respects (hiring, promotions, dismissals, and pay) a middle ground between that of the civil service, and that of the strictly private firms. In summary, the civil service provides for secure employment and promotion, and is highly sought after; in addition, because it is the largest employer in the country, it provides a standard which has a tremendous impact on the private sector employment practices. 29. The labor market in the formal private sector is subject to rigid labor regulation (the labor code-L"), which determines the conditions and terms of employee hiring and dismissals, the format of contracts, working conditions, limits on union activities, etc. and provides strict guidelines for wage fixing. For example, prior authorization from the labor office is required for dismissals of workers having been employed for more than 3 months. The request for this authorization is usually the beginning of a lengthy and cumbersome procedure to be undertaken by employers and an important disincentive for them to hire and retain new workers. In addition, severance packages, as regulated by law, are reportedly very high (Lubell, 1991); in such conditions, permanent workers become virtually a cost that could not be easily reduced in a downturn of the economy by layoff (See A. V. Adams: World Bank Internal Memo). During interviews, employers have stressed the constraint of such regulations to their ability to undertake much needed restructuring to enhance productivity and, as a result, generate additional jobs in the future. 30. Wages in the private modern sector are, in principle, determined by collective bargaining, and in the absence of such an agreement, suggested wages by categories (including a guaranteed minimum wage) are fixed by the Government. The current monthly minimum wage (SMIG) is about FCAF 18,190 monthly (about US$64, that is about 2.6 times the higher national poverty line, and 4.3 times the lower one), and the minimum agricultural wage (SMAG)LY is FCFA 18,190 (about US$60, and about 2.4 times the higher national poverty line, and 4 times the lower A new labor code has just been elaborated which removes many of the rigidities of the past one, and therefore addresses some of the issues outlined here. However, this labor code is not yet fully enacted, although some of its reforms are already in effect (such as the authorization of private placement agencies to operate). 2/ SMIG: Salaire Minimum Interprofessionel Garanti. Equivalent to US$64.00 per month at the current exchange rate of about CFAF300 to the US Dollar. SMAG: Salaire Minimum Agricole Garanti. Equivalent to US$60.00 per month at the current exchanRe rate. - 15 - Box IV.1 Wage Fixing in Mali Wage fixing in Mali results from a complex combination of several factors including (i) a basic wage determined by sectoral collective bargaining agreements (most of the them very old) or government suggested wages by categories; and (ii) a series of salary increases, premiums, and allowances, decided by decrees: Salary Increases Since 1973 * 1973: Special and Lump Sum Allowance CFAFl,000 * 1974: Cost of Living Allowance (10% of basic wage) with a minimum of CFAP2,250 * 1976: Salary increase 10% of Basic Salary * 1978: Salary increase 5% of Basic Salary * 1980: Salary increase 10% of Basic Salary * 1982: Special Allowance CFAFI.000 * 1985: Salary increase 10% of Basic Salary The Labor Code or the collective bargaining agreements determine a set of premiums to be paid to workers either as part of their salaries or in particular circumstances; the list of premiums include: seniority, 13th month, dirtiness, transportation, retirement, separation, and overtime. Seniority Premiums are regulated in the Labor Code, and vary according to the collective bargaining agreements; typically, they grant to workers 3% of the minimum salary of their category after 3 years of continuous work. 5% after 5 years, and 1% every year thereafter, up to a ceiling of 20%. Separation Premiums are determined by the Labor Code and is computed as follows: number of years of service multiplied by the average salary over the last 12 months multiplied by 20% for the first 5 years 25% for the period from the 6th to the 10th year 30% for the period beyond the 10th year one) per month.2 However, in reality, the determination of market wages is difficult to understand as it results from a complex combination of several factors: base salaries determined by collective agreements signed in the 1950s, a series of related government decisions to increase base salaries in all sectors taken over the years, a series of premiums (such as seniority premiums), and a number of allowances (special allowance, cost of living allowance, adjustment of March 1980, solidarity allowance) most of which have remained unchanged for the last ten years. Between 1976 and 1986, the SMIG increased in nominal terms twice as fast as the wages of other categories, thereby reducing large wage disparities. Overall, it appears that the average salary in the modern sector is about 3.7 times higher than the SMIG (Lachaud, 1990), although the distribution is very skewed (and less equitable than in the civil service), since as much as 75% of workers in this sector earn less than this average. There is also evidence that the SMIG had decreased in real terms (with respect to the price index) by as much as 33% between 1976 and 1988, and no wage increase occurred between 1985 and 1990; however, in 1991, a solidarity allowance has been granted to all employees. Besides wages, employers are faced with other L3/ Data on the poverty line come from the Mali: Assessment of Living Conditions report (June 1993). - 16 - charges such as the contributions to the Institut National de Pr6voyance Sociale (INPS) which represent from 17.4% to 20.4% of the worker's salary, and other miscellaneous charges amounting to an additional 9.5% of the worker's salary.LI' The sum of all these charges amount to as much as 26.9% to 30.9% of the total wage bill of enterprises. Table IV.1 Evolution of Monthly Wages and Salaries in the Formal Sector, 1982-91 1982 1985 1990 1991 Contractual Workers Minimum wage in agriculture (SMAG) 8696 9 19 Basic wage 5,446 8,440 8,440 8,440 Special allowance 1,000 1,000 1,000 1,000 Cost of living allowance 2,250 2,250 2,250 2,250 Solidarity allowance 6,500 Minimum wage in other sectors (SMIG) 9.730 A N 19 Basic wage 6,403 9,403 9,403 9,403 Special allowance 1,000 1,000 1,000 1,000 Cost of living allowance 2,250 2,250 2,250 2,250 Wage adjustment (March 1980) 77 77 77 77 Solidarity allowance 6,500 Government employees Grade 100 2505 Salary 17,040 22.525 22,525 22,525 Housing allowance 1,500 1,500 1,500 1,500 Special allowance 1,000 1,000 1,000 1.000 Solidarity allowance 6,500 Grade 316 6 3 69.38 69,368 7 Salary 59,232 67,868 67,868 67,868 Housing allowance 1,500 1,500 1,500 1,500 Solidarity allowance 2,000 Grade 650 12;336 j4110j3 1410 1J43 Salary 59,232 67,868 67,868 67,868 Housing allowance 1,500 1,500 1,500 2,000 Solidarity allowance 2,000 Source: IMF data 14/ These include a 7.5% contribution on wages and benefits, a 1% housing tax, and the 1% contribution to the Employers' Association (FNEM). - 17 - 31. Little is known about promotion practices in the private sector. Practically, it seems that seniority and personal relations are the key factors in determining promotions, although the operation of the enterprises' internal labor market is impossible to describe. The new labor code when enacted would limit the delays resulting from the labor inspector's review of the requests for layoffs and would result in a more transparent dismissal process, and more rapid restructuring to face changes in market conditions. 32. The labor market in the urban informal sector in Mali operates according to a blend of competitive market laws and tradition. Hiring, pay, and dismissals in this sector, far from being regulated by any official text, are determined by market considerations (supply and demand for specific skills as derived from goods markets), and family/regional relations. Because the life of informal sector activities is usually relatively short, employment in this sector is more insecure than in the formal sector. The cost of entry in the informal sector is usually quite low (little or no capital being required) and specific knowledge of a trade is not required for some activities (such as small trading). For those for which such knowledge is required (mostly artisans such as the production of utility goods or technical services), specific on-the-job training is provided through apprenticeship arrangements. Apprenticeship can be started as early as primary school age, lasts from 2 to 10 years and typically consists of a young person working full time in a small enterprise at zero cash wage (and in some cases a fee is required from parents) while learning the trade. The training provided to apprentices is practically oriented but limited in scope; no academic training is provided, and it is therefore widely perceived as an inferior form of skills acquisition mode, and for this reason appeals mostly to illiterate youth or primary school leavers. There are no specific government regulations that pertain to apprenticeship contracts in the informal sector. The job outlet for the large majority.of "graduates" from this system is the informal sector itself; graduates either continue to work with their former master, as partner/employee, or open their own shop. Apprentices represent about 6% of total urban employment. 33. Information is central to the operation of the labor market; the increase in the number of school graduates requires that accurate and timely information be provided on labor demand. The contribution of this information to the functioning of the labor market is at least threefold: first, it permits the best possible match between labor supply and demand; second, it permits an adjustment of individual expectations; and, third, it provides the basis for student counseling and guidance on future career streams. Public employment services are often set up to act as intermediaries between jobseekers and employers. Their accumulated knowledge of the labor market situation and trends, and the quality of information and analysis they can provide, put them in an unique situation to orient not only individuals, but also training institutions, towards the type and content of occupations needed. These institutions play an important role in industrialized countries. Unfortunately, most of them have failed in developing countries because they typically lack the resources (financial as well as human) to carry out their mission. In addition, they usually cover only a very small part of the labor market (the modern urban sector - -less than 10% of employment in Africa). 34. In Mali, the Office National de la Main d'Oeuvre et de I'Emploi (ONMOE) is responsible for labor market information collection and dissemination (see Box IV. 1). According to the Labor Code (Art. 382), it is responsible for: (i) collecting from employers accurate and detailed information on vacancies; (ii) providing information on the labor market; (iii) counselling jobseekers on employment opportunities; (iii) carrying out research on employment creation - 18 - Box IV.2 Description of National Manpower and Employment OMce (ONMOE) ONMOE plays a central role in the design and implementation of the Government's employment strategy; its missions include (i) providing the necessary information on labor market situation and trends; (ii) matching demand and supply of labor (as a placement center); (iv) registering workers; (v) training; and, (vi) designing and implementing government's employment policy. Until recently, ONMOE was the only official placement center in the country; private placement centers are authorized since 1991. ONMOE is headed by a Director General assisted by Deputy Director General, and is organized in 5 services and one directorate in each administrative region of the country; its Board of Directors is tripartite workers, employers and Government and is presided in turn by a representative of the workers or the employers unions. A brief description of each service follows: The Information and Employment Promotion Division (DIPE): the principal mission of this division is to provide support to enterprises and jobseekers; in this context, it organizes information seminars, initiates employment projects and organizes financing for them. * The Placement and Registration Division (DPI): As is clearly reflected in its title, this division registers job demand and supply, match them, and register all legally employed workers (it provides them with a work booklet (Carnet de Travail). * The Statistics and Data Processing Division (DSI): This division organizes the collection and publication of labor market data. It (i) publishes a quarterly statistical bulletin, (ii) organizes, analyzes, and publishes the annual manpower declaration (DAMO), an establishment survey of employment in the formal sector; this division has also two strictly administrative functions (but with implications on the information system) which are to deliver a certificate to all new firms being created in the country (this is a requirement for a firm to get the government agreement), and also to keep record of all the work certificates delivered ("certificat de travail") -- a requirement for workers retirement benefits. The division is currently preparing a project of establishing an employment observatory. * The Reconversion and Skills Uparadinx Center (CPR) organizes training for upgrading workers skills. Most of its activities have been focused on organizing courses on typing and other secretarial skills. The Young Graduates Insertion Support Unit (CAIJD) initiates and support activities aimed at promoting employment of young graduates. The Regional Directorates (9 such offices staffed with 7 employees in each) carry out the ONMOE activities in each of the regions (placement, seminars, training, administrative duties, employment creation projects, etc.). ONMOEenjoys, since 1991, a large financial autonomy; in 1992, most of its resources(70%) came from employers contributions; the other sources included government's subsidies, and other miscellaneous sources. opportunities in all categories; (v) setting up a permanent information system on manpower and employment; and, (vi) disseminating labor market statistics. In addition, until 1992, ONMOE was the country's sole official placement service for all job categories, and private enterprises were obliged to recruit employees through ONMOE; Article 384 of the Labor Code stipulated that all job openings were to be communicated to ONMOE which would assign applicants with corresponding profile or authorize the recruitment. This restriction has now been eased, and the operation of private placements agencies is now legal. 35. In fact, the ONMOE is ill-equipped to fulfill its role. For example, labor market information is processed manually, no national job classifications are available, there are no procedures or mechanisms for testing the suitability of job applicants to vacancies, and there is a lack of internal coordination (Lachaud, 1990). As a result of this limited capacity, the quality - 19 - of the information provided by ONMOE is dubious, and long delays and improper workers assignment to published- job vacancies have been frequently observed. This resulted in high transaction costs --essentially in terms of opportunity costs-- incurred by firms in urgent need of manpower with specific characteristics. It is estimated that only about 20% of enterprises inform the ONMOE of their manpower needs, and many of those which do so often find that the workers proposed by ONMOE are unsuitable to fit their needs, and refusal rates are high. Similarly, few jobseekers utilize ONMOE's services; according to the results of the 1988 Bamako Household Survey, only 9% of jobseekers having already worked, and 4% of first-time jobseekers, reported that they rely principally on ONMOE for their placement; and only 9% of graduates unemployed reported that they rely on the ONMOE's Young Graduates Promotion Unit. According to ONMOE's statistics, only about 20% of recruitment in 1987 were made through ONMOE, and this figure was much lower for high level staff (about 8%) and women 13%). 36. To improve the functioning of the labor market, private placement firms have now been authorized, and ONMOE has in practice lost its grasp on labor market trends. According to the ILO Convention No 96 (dated 1949) countries may accept the provisions of one of two parts of this convention; Part II refers to the Progressive Abolition of Fee-Charging Employment Agencies, and part III to the Regulation of Fee-Charging Employment Agencies. Mali which had so far adopted the terms of Part II of the Convention has now elected to adopt those of Part III. Furthermore, according to the Convention, fees may be charged to either the employer or the employee; the new regulations in Mali require that employer pay the placement agency's fees and the agencies may not collect fees from job-seekers. 37. At least 7 such placement services are known to be operating, but the Directorate of Employment, Labor, and Social Security of the Ministry of Labor, Civil Service, and Modernization of the Administration (which would normally monitor their activities) knows very little about them. The main activity of these agencies is to offer security services, and because of the lack of Government promotion, guidance and incentive, they do not perceive job placement as a potential area for growth. This is reinforced by the fact that in Mali, as in all SSA countries, personal and family connections are the main channel for finding a job (80% to 90% of jobseekers utilize this channel). 38. Since January 1992, a unit to support the job insertion of young graduates (Cellule d'appui A l'insertion des jeunes dipl6m6s) has been established within ONMOE. Its main activities are to promote employment of young graduates through wage employment, or through self employment. V. THE UNEMPLOYED YOUTH V.1 General Unemployment and Youth Unemployment 39. This section analyzes the extent of unemployment in the country and determines the importance and characteristics of youth unemployment as well as that of graduate unemployment. It first analyzes the pattern of unemployment across the regions, education levels, sex, and age. Then it looks at unemployment in the urban centers where it is reportedly the highest, and finally considers graduate unemployment. - 20 - Box V.1: Defining Unemployment Conventional labor force concepts, starting with the standard international definition of open unemployment, draw largely from labor market conditions in industrialized countries and have consequently failed to capture many of the features typical of labor market operations in developing (especially African) countries. For example, analysts have encountered difficulties determining the size of the labor force in rural areas (where typically 80% of the population and labor force live) because of the prevalence of subsistence activities, and in urban areas where the informal sector labor force comprises self-employed, casual and unpaid work. The concept of work in industrialized countries is associated with that of jobs and even wage employment, as found in formal sector employment; however, this type of employment typically represents only a tiny fraction of total employment in Africa (6 to 10%). Defining unemployment in Africa is a particular challenge, as the conventional subdivision of the economically active population between employed and unemployed does not capture the large number of those falling in neither of these categories. Underemployment, also termed *disguised unemployment", refers to economies where there is an amount of surplus labor that can be withdrawn without a fall in total product. Underemployment can be cyclical, for example in the commodity export sector which experiences fluctuating world demand. It can also be seasonal, especially in agriculture, and the main reason workers do not seek alternative jobs is the lack of employment elsewhere. Finally, it can be structural, due to the factor proportions in the economy which do not permit workers to contribute effectively in production. Whatever, the causes, five broad categories of unemployed can be distinguished: First there are the unemployed er se, those out of job and actively looking for work. Second, there are the underemployed, those who are working involuntarily less than full time, or those who are working long hours but earning less than the minimum living standards income. Third, there are the seasonal workers, in important numbers because of the prevalence of agriculture in these countries. Fourth, there are the "discouraged" unemployed, usually not included in official statistics because they are not actively looking for jobs (and therefore not part of the active labor force), but who would be looking for one if labor market conditions improved. Fifth, there are the "voluntary" unemployed who would find jobs corresponding to their qualifications but would not accept them because they consider the wages too low. In Mali, data for Bamako (see table below) indicates that among the 34.1% of the active labor force which is unemployed, the largest proportion includes the discouraged and voluntary unemployed (the data does not permit a distinction within them). This proportion is very high for women (48% of the labor force), and much lower for men (8.2%). Unemployment in Bamako (Percent of the Active Population 10 years or Older, 1988) Males Females Total Unemployment 10.7 7.3 9.5 Underemployment 2.8 1.1 2.2 Discouraged & Voluntary Unempl. 8.2 48.0 22.4 Total 21.7 56.4 34.1 Source: Bamako 1988 Employment and Unemployment Survey. 40. Statistics show that the largest proportions in open unemployment are primarily those of young people, illiterates or school leavers with little or no training or skills. In fact, the number - 21 - of unemployed young people will continue to grow, as 200,000 new people enter the labor force annually, and the female labor force participation rate rises. This is linked to the high rate of population growth, and the economic slump in the country which has limited job creation. While significant levels of unemployment exists among older workers, presumably due in part to enterprise restructuring and public sector layoffs, it currently does not represent the most significant proportion of unemployment. 41. Confronted with the lack of data (and its inconsistency when available), this study makes use (though limited) of the 1987 Census data, the most recent nationally collected database available in the country. However, one should bear in mind that census and survey data on unemployment in Mali, like in many developing countries, are to be taken with much caution because of the prevalence of informal, undeclared, and untaxed activities (see Box V.1). Indeed, there are increasing incentives for people involved in such activities (especially school graduates and leavers) to report themselves as unemployed to government enumerators rather than illegally employed, and the extent of such overstatements is difficult to assess. According to the Mali 1987 Census, educated unemployment makes up as much as 40% of total unemployment; however, the unemployment rate in Mali is for unspecified reasons largely understated; it is estimated at only 0.8% nationally (1.08% for men and 0.38% for women), while other data sources indicate rates as high as 20%. 42. According to the Census, any active person (6 years or older) not engaged in any activity providing income for him or his family is considered .unemployed. ' Open unemployment is observed essentially in urban areas while under-employment is prevalent in rural areas (see Box V.1); this is evidenced by the fact that unemployment rates in Bamako are more than six times higher than the country's average (Table V.1), and that one out three unemployed Malian lived in Bamako. Unemployment rates are also relatively high in Gao and Tombouctou regions where agriculture and modern economic structures are the least developed (1.5 and 2.3 times the national average, respectively) and are, with the District of Bamako. Unemployment rates are higher among women than men. Indeed, in Bamako, where labor force participation rates are known to be the highest, the incidence of unemployment among women there is 13 times the national average (while it is 5 times the national average for men). Given that the Census defined an active person as one occupied or looking for a job, this definition of unemployment corresponds to the ILO definition which is: "is considered as unemployed any person having reached the legal working age, who is actively looking for a job but does not find any, and who is physically, morally, and intellectually capable of holding a job". - 22 - Table V.1 Relative Incidence of Unemployment Rates by Region and by Sex (1987) Regions Males Females All Bamako 5.1 13.2 6.6 Kayes 0.7 0.8 0.6 Koulikoro 0.5 0.8 0.5 Sikasso 0.3 0.3 0.3 S6gou 0.6 0.5 0.8 Mopti 0.8 0.3 0.8 Tombouctou 1.9 0.3 1.5 Gao 1.7 4.7 2.3 Source: Calculated from the 1987 Population Census. Note: These figures are the ratios of each group's unemployment rates and the national average for males (1.08), females (0.38). or total (0.8), respectively. 43. Although most unemployed have received no education (55.6%) (Table V.3) at least 40% of them have received some and more than 25% of them reported having passed the elementary level. ' Among these, a strikingly high percentage (close to 10%) have received vocational education, and the unemployment rate is the highest among them (10%, a percentage equivalent to that of higher education graduates). It appears therefore, that those having acquired specific skills and therefore are the least expected to be found among the unemployed are disadvantaged in the labor market. This would suggest a mismatch between their training and job expectations and the characteristics of the jobs available in the economy. On the other hand, unemployment rates among illiterates is the lowest of all (0.5%), and open unemployment rates seems to increase with education level. This situation can only be explained by the fact that in the context of generalized shortage of jobs, unskilled workers with low expectations are better prepared to accept available jobs in the informal sector which are in low-paid and less secure. This evidently raises the issue of the relevancy of the current education system which raises student expectation without providing skills that are in demand in the economy. The data of the 1988 Bamako employment survey showed that 65% of unemployed in the District were looking for their first job (60% among unemployed men and 83% among unemployed women); among them, only 18% had received no education, and 28% had received professional or higher education (elementary and basic education leavers represented about 46% and secondary education leavers 8%). Of those looking for their first job, only 15% were engaged in a temporary income generating activity. 6/ In comparison with the active population at large, the unemployed are more educated as, as much as 87.3% of the labor force at large have received no education, 5.2% some elementary, and 1.9% some second cycle of fundamental. Each of the other levels represent less than I% of the labor force. - 23 - 44. The analysis of unemployment by sex displays quite a different pattern for men and women. Unemployed women are on average more educated than unemployed men; this corresponds to the pattern observed in many SSA countries which stems from the fact that employment opportunities for uneducated women are more limited that men's and therefore they tend to either stay out of the labor force or to engage in informal sector activities, which keep them out of unemployment. Consequently, while very few women are reported as unemployed relatively to the total number of unemployed (about 17% of open unemployment), 40% of them have received no education at all compared to close to 60% for men, 22% have received professional training compared to only 7% for men, and 4.3% of them have had at least some higher education for only 3.6% for men (Table V.3). Unemployed women tend to be younger than men, as more than 3 out of 4 of them are below 30. Worth noting also is the very high percentage of reported unemployment among women below 15 (21.7%), which corresponds to the group where the incidence of illiteracy if the greatest among them (84%) (Table V.2). The higher level of education among unemployed women might signal the existence of cultural or other obstacles to employment which prevent them from being hired as readily as men with the same skills. If this were the case, this would be strong evidence of discrimination in employment opportunities which imposes additional obstacles to women's employment by forcing them at the end of the job search queue. As a result, the country's investment in human resources of these women is not being used efficiently, so contributing to increasing the cost on a labor market which evidences shortages of skilled labor. 45. Young people, especially the age group 15-35, are clearly affected by unemployment more than any other group (Table V.2) .' They represent about 53% of total open unemployment (50.4% among men, and 60.7% among women); this is also the age group where unemployment rates are the highest. Overall, young people's share of stock of unemployed is about 25% higher than their share of the labor force, 85% higher for the age group 25-29, and 60% for the age group 20-24, which are the groups most affected by open unemployment. High unemployment rates are also observed among the elderly (aged 60+) who are returning in activity (or attempt to prolong their working life beyond retirement age) in increasing number; this may be due to a combination of factors including: the overall reduction of family incomes, and the high unemployment rates among younger people which reduces the level of support the elderly usually receive from them. .L7/ Although the data available do not show directly this age category, this study chooses to focus on this category which includes most young graduates. Consequently, some of the numbers in the text are extrapolations from those in the tables. - 24 - Table V.2 Distribution of Unemployment by Age Groups and Sex (Percent, 1987) Regions Males Females All < 15 6.3 21.7 9.0 15-19 7.4 10.4 7.9 20-24 16 21 16.9 25-29 17.7 24.3 18.9 30-39 18.6 10.7 18.3 40-49 13.3 3.1 11.3 50-59 9.8 2.6 8.5 >60 10.4 6.0 9.9 N.D. 0.5 0.3 0.5 Total 100 100 100 Source: 1987 Population Census. Table V.3 Distribution of Unemployed According to Education Level and Sex (Percent, 1987) Education Level Men Women Total None 57 39 55 Basic Ist Cycle 11 10 11 Basic 2nd Cycle 10 15 11 Secondary 3 4 3 Vocational 7 22 10 Higher 3 4 4 Technical Diploma 0 0 - 1 Literacy Campaign 0 0 - + 1 Literacy Campaigns - - - ND 7 15 6 Total 100 100 100 Source: 1987 Population Census. - 25 - V.2 Urban Youth Unemployment: Bamako and Other Urban Centers 46. The relative impact of labor market adjustments in Mali have been felt more in urban areas than in rural areas. At least three factors may explain this: the role of the subsistence mode of production, the price of some crops (cotton) which has not been affected by the adjustment programs, and migration to urban areas and foreign countries. The partial data available show the important labor market imbalances; while the active labor force in Bamako grew annually by 3.9% between 1976 and 1988, employment grew only by 3.2% (2.6% for men and 6.3% for women); and the annual manpower report shows no net job creations in the modern enterprise sector in Bamako and in other regions, as well as very little job turnover. These data do not even account for the public sector retrenchment which would have indicated an overall net loss of jobs. 47. According to data from the 1976 Population Census, and the 1988 Household Employment Survey in Bamako, total unemployment in Bamako has doubled from 8.1 % to 16.0% (for men it increased from 7 to 14.7%, and for women it increased from 15.4% to 21.6%). From the 1987 Population Census, it is established that one out of three unemployed in Mali lives in the District of Bamako, that the unemployment rate in this city is more than six times higher than the national average, and that 61 % of the educated unemployed lives there. This situation fully justifies the special attention paid to general and youth unemployment in this area. Further, the 1988 Bamako Household Employment Survey evidences the prevalence of unemployment among the youth and women (two out of three unemployed in Bamako are between 15 and 29, and the unemployment rate is as high as 30% among those aged 25-29). The number of unemployed graduates looking for their first job has increased every year since 1983- 84 when the automatic recruitment in the civil service stopped. 48. This section, so far, has stressed the quantitative importance of youth unemployment in Mali and particularly that of the graduates. Indeed, on the basis of the available data, the features of unemployment in Mali could be summarized as follows: (i) youth (aged 25-35) comprises the largest proportion of the registered unemployed (at least 53%); (ii) youth unemployment rates (for all particular groups) are typically higher than that of the labor force as a whole, and their share of the labor force; (iii) among youth, the burden of unemployment is not shared equitably, as the better educated youths who aspire to wage employment, and those living in urban areas, tend to bear a disproportionate share; (iv) young women represent a higher share of unemployment among women than young men do among men. The rest of this section will focus on defining the characteristics of the unemployed youth, with a special emphasis on the educated unemployed. V.3 Graduate Youth Unemployment --the Issue of the "Jeunes Diploms". 49. The issue of graduate unemployment in Mali f' has reached an unprecedented level which constitutes an important threat to the political stability of the country. The 1987 Population Census indicates that about 11,000 educated young people, including 25% female, were unemployed; 61% of them were living in the District of Bamako alone (Table V.4). According to the more recent 1991 Survey of unemployed graduates, there were 11,368 young secondary and higher education graduates still unemployed; among them 75% were men (Table ff/ Unemployed graduates in Mali are officially defined as those aged 35 or less, having earned a higher education or secondary level degree, and looking for their first job (Ordinance No 92-022. April 13, 1992. See Annex). - 26 - V.5), and 69% were living in the District of Bamako. Every year as many as 3,500 new graduates enter the labor market and the unemployment spell of the graduates is unusually high: more than 25% of them had been without stable employment for 5 years (Table V.7). -M There are several reasons for this situation, chief among them is the current economic crisis with a dramatic decline in production and the subsequent adjustments required which also had a severe impact on the labor absorptive capacity of the economy. Other factors are public enterprises closures with massive layoffs and civil service reform with departures and reduction in recruitment. 50. The data on the characteristics of unemployed young graduates shows the great number of unemployed higher education graduates in an economy in need of enhancing the technical skill level of its manpower. Indeed, according to the 1987 census data (see earlier sections for a cautionary note on the quality of these data), unemployment rates increase steadily with education level (from 0.5% unemployment among the uneducated to 10% among the higher education graduates), suggesting that more education make people less employable, and pointing to a structural mismatch between education and economy. Further, higher education graduates which represent about 15% of the total number of graduates (there are about 500 higher education graduates each year), were disproportionately represented among the unemployed; they represent 34% of the graduate unemployment (Table V.5). In Mali, as in other developing countries, educated youth are usually poorly prepared to face this kind of situation. High educated unemployment can also signal more fundamental problems; indeed, the analysis of the area of specialization of the graduates (Table V.6) shows clearly that between 80% and 90% of them normally lead to civil service employment (teaching, health, and other administrative occupations) which has been drastically curtailed as part of the country's economic stabilization program. However, the strikingly high number of unemployed medical doctors (117) in a country where medical coverage is among the lowest in the world, as well as that of agricultural engineers (533) in a country in urgent need for improving the efficiency of its agricultural production, points to either a lack of coordination between economic and social policy and manpower development, or the low quality of education and training provided. N1 51. Those officially listed as unemployed graduates comprise a diverse group that includes, besides the hard core of unemployed, people engaged in informal activities, the underemployed, those who have decided to remain unemployed due to expectations of getting a job according to their qualifications in the future. Many of the young school graduates and leavers would belong to the latter group; an important concern will be to find ways to route school leavers toward job tracks that will provide them with skills, productive employment, and income. This, however, can only occur in an economic environment of growing demand for labor which should be the result of macroeconomic stability and efficient growth policies, and in particular the continuation of the efforts to eliminate the extensive distortions that permit the current rent-seeking activities (automatic employment in the civil service and large overall public employment, stringent labor L9/ A large (though unknown) proportion of those who reported being unemployed in the 1991 survey had in fact an occupation which may not correspond to their expectations. This can also point to the type of capital and skill mix prevalent in the economy, and therefore the relevancy of labor skills to the requirements of the labor market. Unfortunately, the data available does not permit further investigation in this direction. - 27 - regulations, etc.). A critical element in this effort will be to align the skills and expectations of young job seekers with the new realities of the market. 52. As previously mentioned, public employment has been curtailed drastically over the 1980s and recruitment limited to 250 civil servants per year. Yet, in spite of the limited absorptive capacity of the economy, increasing numbers of higher education and secondary graduates continue to enter the labor market (Table V.7). Such a situation, typical of the lack of response of the education system (students and management included), stems in Mali, from the combination of several factors: (i) the policy of systematically granting scholarships to all higher education students; (ii) the lack of vocational training opportunities for school leavers before reaching the DEF; (iii) the lack of labor market information and studies to help forecast the future trends of the labor market; and, (iv) the lack of guidance on career and training opportunities in the country. Table V.4 Unemployment Among Educated Youth According to Regions and Sex (1987) Regions Graduates' Drop Outs Total Men Women Total Men Women Total Total Distribution (%) Bamako 2,368 1,145 3.513 2,475 772 3,247 6,760 61 S6gou 209 92 301 655 240 895 1,196 11 Kayes 226 66 292 656 128 784 1,076 10 Sikasso 161 78 239 308 72 380 619 6 Koulikoro 189 57 246 342 71 413 659 6 Mopti 107 48 155 196 21 217 372 3 Gao 59 20 79 180 12 192 271 2 Tombouctou 34 11 45 141 13 154 199 I Total 3,353 1,517 4,870 4,953 1,329 6,282 11,152 100 Source: 1987 Population Census All education levels. - 28 - Table V.5 Distribution of Unemployed Young Graduates According to Degree and Sex (1991) Degree Men Percent Women Percent Total Percent Doctorate 96 1.1 37 1.3 133 1.17 - Percent 72.2 27.8 100.0 D.E.A. 123 1.4 18 0.6 141 1.24 - Percent 87.2 12.8 100.0 Masters/Licence 2,567 30.0 419 15.0 2,986 26.27 - Percent 86.0 14.0 100.0 DUTS/BT 408 4.8 203 7.3 611 5.37 - Percent 66.8 33.2 100.0 Sub-total Higher Education 3,194 37.3 677 24.2 3,871 34.05 - Percent 82.5 17.5 100 B.T.N. 2,875 33.5 950 34.0 3,825 33.65 - Percent 75.2 24.8 100.0 C.A.P. 2,507 29.2 1,165 41.7 3,672 32.30 - Percent 68.3 31.7 100.0 Sub-total Secondary Education 5,382 62.7 2,115 75.7 7,497 65.95 - Percent 71.8 28.2 100.0 Total 8,576 100.0 2,792 100.0 11,368 100.0 - Percent 75.4 24.6 100.0 Source: Recensement des Jeunes Dipl6m6s. Avril 1991. - 29 - Table V.6 Distribution of Unemployed Graduates According to their Area of Specialization (1991) Graduation Date Doctorate % D.E.A. % Masters/ % DUTS % BTN % Licence BT Agriculture 4 3.1 29 17.6 533 21.0 658 18.0 Law 2 1.6 19 11.5 232 9.2 41 1.1 Economy 1 0.8 18 10.9 172 6.8 1 0.3 6 0.2 Environment 1 0.8 23 13.9 103 4.1 285 7.8 Finances 1 0.8 6 3.6 104 4.1 257 67.8 289 7.9 Gastronomy 1 0.8 2 0.1 Health 117 90.7 9 5.5 9 0.4 241 6.6 Transp/Comm. 2 1.6 2 1.2 5 0.2 2 0.5 216 5.9 Biology/Chemistry 2 1.2 172 6.8 320 8.8 Constr./Pub. Works 13 7.9 94 3.7 95 2.6 Commerce 1 0.6 3 0.1 56 1.5 Electricity 8 4.8 22 0.9 43 1.2 Electro-Mechanics 6 3.6 30 1.2 39 1.1 Geology 3 1.8 40 1.6 53 1.5 History/Geography 8 4.8 143 5.6 278 7.6 Computer Science 6 3.6 6 0.2 13 0.4 Languages 3 1.8 302 11.9 159 4.4 Literature 140 5.5 Mathematics/Physics I 0.6 45 1.8 214 5.9 Mechanics 3 0.1 1 0.3 38 1.0 General Mechanics 1 0.6 19 0.5 Psycho-Pedagogy 7 4.2 138 5.4 Administration 238 9.4 1 0.3 27 0.7 Office Management (Secretariat) 117 30.9 34 0.9 Art 240 6.6 Banking/Insurance 6 0.2 Customs 62 1.7 Physical Education/Sports 107 2.9 Rural Engineering 89 2.4 Cabinetmaking 17 0.5 N.D. 6 0.2 Total 129 100.0 165 100.0 2,534 100.0 379 100.0 3,653 100.0 Source: Recensement des Jeunes Dipl6m6s (Avril 1991) Note: This table excludes the CAP graduates - 30 - Table V.7 Distribution of Unemployed Graduates According to Year of Graduation and Degree (1991) Graduation Date Doctorate D.E.A. Masters/Licence DUTS/BT BTN Total N.D. -- 1 54 4 59 Before 1983 -- 2 2 1 6 1983 -- 3 47 3 54 107 1984 3 3 129 17 160 312 1985 7 18 142 30 321 518 1986 11 2 273 53 408 747 1987 2 7 526 71 582 1.188 1988 12 11 395 18 651 1,087 1989 35 38 473 82 667 1,295 1990 45 74 476 97 787 1,479 (1991) (14) (8) (17) (2) (22) (63) Total 129 165 2,534 379 3,653 6,860 Notes: 1. This table excludes the CAP graduates. 2. At the time the survey was taken (April of 1991) all the exam results were not yet published VI. THE EDUCATION SYSTEM AND EXTERNAL EFFICIENCY 53. This section focuses on the relevancy of the education system with the labor market in Mali and identifies the sources of imbalances between these two institutions. The issue of the relationship between education attainment and labor market success has received much attention in the economic literature in industrialized countries. Two broad streams have been influential in shaping economists' views of the interaction between the education system and individual's labor market performance. The first one, which is based on optimizing behavior by the individuals assumes a uniformly positive relationship between education and labor market performance, but differ on the explanations for this relationship. They stress either the productivity-enhancing role of education --this is the human capital theory pioneered by Becker (1975)-- or the informational role of education as opposed to its directly productive function --this is the job-screening and market-signalling hypothesis (Arrow, 1973; Spence, 1974). The second stream -the segmentation theories proposed by Doeringer and Piore (1971), Edwards (1979)- stresses the social process leading to stratified labor markets with different types of jobs, wage levels, working conditions, promotion and hiring criteria, level of job stability, etc. Education in this theory plays a role in channeling people into these labor market segments. Whatever the approach used, there is, in industrialized countries, general agreement on the positive relation between a person's education attainment and his/her employability (and earnings). For example, a study based on the United Kingdom 1978 General Household Survey concluded that the unqualified were more than twice as likely to be unemployed than the qualified (Ingham, 1989). - 31 - As already suggested (Section Box VI.1: Average Education Stock I), the low level of Industrial, Developing Countries, and in Mali (1987) human capital (School years of education per person aged 15 to 64) development in Africa and the high Primary Secondary Tertiary Total rate of qualified Industrial 6.53 2.60 0.88 10.0 unemployment calls for different Developing 3.70 0.72 0.06 4.48 approaches of the East Asia 4.38 0.72 0.03 5.13 relationship South Asia 2.39 0.88 0.12 3.39 between education Latin Am. 4.65 0.56 0.31 5.52 Dev. Europe 4.39 0.88 0.23 5.50 and labor market MENA 3.24 1.13 0.41 4.79 performance. SSA 2.33 0.19 0.02 2.54 Overall, the poor performance of the Mali 0.36 0.09 0.01 0.46 education system in Mali is reflected in World 4.38 1.17 0.29 5.85 the strikingly low Sources: level of education 1. Nehru, Swanson, and Dubey: A New Database on Human Capital Stock. World attainment of the Bank. WPS 1124. April 1993. active population; 2. Data on Mali were computed using the 1987 Census data on percent of labor 87.3% of Malians force with each level of education and assuming that those having attended primary have not received' school (Cycle 1) only would have completed on average 4 years (accounting for drop outs), those having attended secondary education (Cycle 2 plus Secondary) would any education, and have completed the 6 years of primary (added to the stock of primary education) and 5.2% have received on average 3 years of secondary; finally, those having attended higher education only elementary would have completed the previous levels (added to the respective stock) and 3 years education (given the of higher education. high dropout rate, many of these may not have completed it). The long-standing gender gap in access to education is also confirmed by the fact that these indicators are worse for women than for men: more than 92% of women have received no education at all (vs 84% for men). Box VI. 1 which compares the level of education attainment of the labor force in Mali with that of other regions of the world illustrates the low level of human capital development in this country which must be contrasted with the high graduate unemployment rates. In particular the education stock gap between Mali and other countries is greater for primary education than for the other levels; this situation points to the need to improve access to primary education as a basis for efficient labor force training. Such situations usually draws attention on the relationship between education and employment, and the establishment of the responsibility of the education system. 54. On the other hand, as Emmerij (1972) pointed out, "It is obvious that education is in no way responsible for the problem of over all imbalance (i.e. between labour supply and demand). Changes in the educational system will not change the number of opportunities in the economy. However, education is definitely responsible for one of the problems of structural imbalance: that of matching employment opportunities and expectations. .. The attitudes, aspirations and expectations perpetuated and stimulated by traditional educational systems tend to create a growing discrepancy between such employment opportunities as exist on the labour market and the job expectations of school leavers and graduates." This point of view is fully shared by other - 32 - researchers (see for example Moura de Castro and Cabral de Andrade (1990): "For various reasons, training systems often fail to respond to market needs: they offer the wrong courses or produce the wrong graduates and show no signs of wishing to put things right. Inertia is the rule." One major cause for such situation can be found in the fact that schools are rarely (and never in Mali) held accountable for the quality of the education provided and their external efficiency. No financial or other administrative mechanisms are used to encourage improvements in internal and external efficiency. 55. The structural imbalance in question here can be divided into two broad kinds: first, the skills imparted by the education and training system can be irrelevant to those needed by the economy --termed here technical imbalance; second, the attitudes, aspirations, and expectations are out of line with the job opportunities -- termed sociological imbalance. It is clear that the two kinds of mismatches are related; they have, however, different policy implications, and this section addresses successively each of these imbalances. VI.1 Technical Imbalance 56. Mismatch of occupational skills. Manpower needs are not known precisely in Mali, and faced with the incompleteness of ONMOE data and only occasional surveys, any analysis of the match between the structure of supply and demand for labor is necessarily based on uncertain grounds. Yet there is evidence of a shortage of technical skills in employment. Indeed, a 1986 MEFP/ONMOE survey of private firms in Bamako revealed the mismatch between required and actual skills embodied in the current high-level personnel as measured by their formal education level. Overall, as much as 27% of the directors of these firms had received no more than primary education, and only 22% had training in management. The training of technicians and foremen is also an important concern: 41 % of them had no more than primary education, and more than 30% of the technical supervisors had never had any technical training. In addition, the maintenance function in the firms is neglected. Among services firms, the education level of the directors was also insufficient, and as little as 50% of high level staff had received an education equivalent to higher education. The skills of the mid-level technical supervisors is very low: as many as 59% of the technical personnel in services companies were either illiterates or had only received some primary education. This situation is subject of even more concern in the trade sector. The survey underlined the lack of skills in the industrial sector as being most critical in three main areas: maintenance, stock management and supply, and production. CAP and BTN level technicians in all areas ' (especially, in mechanics, electro-mechanics, etc.) would improve greatly the capacities of the production system. 57. The same conclusion can be reached from the analysis of the structure of the modern sector labor force (World Bank, 1989), which shows a high proportion of both postsecondary graduates (ranging from 10 to 20%) and unskilled employees (ranging from 30 to 70%), but a low proportion of midlevel cadres, technicians, and skilled workers (25% on average with a peak of 50% in government services). The demand for midlevel skills is greater as evidenced by the placement record of such schools as ECICA (Ecole Centrale pour I'Industrie, le Commerce, et 21/ This lack of mid-level technical skills has been dramatically perceived in instances such as the construction of dams (e.g. S61ingu6) or important buildings (such as the BCEAO) in which technical skills from neighboring countries (especially S6n6gal) were brought in to fill the gap. - 33 - Box VI.2: Description of the Education System The education system consists of three levels: Basic education (Enseignement fondamental), the secondary level, and higher education. Basic education comprises a six-year elementary 'cycle I (enrollment of 340,573 in 1990) leading to the Certificat de fin d'6tudes du premier cycle (CPEPC) and a three-year "cycle 2" (57,185 students) leading to the Dipl6me d'6tudes fondamentales (DEF). Secondary education (three years) is divided in general education (approximately 10,000 students), teacher training (about 900 students), and vocational/technicaleducation (about 11,000 students), all leading to the Baccalaurtat. Finally, higher education (about 5,000 students) is organized in seven Grandes 6coles (located, with one exception, in Bamako) and is complemented by an extensive program of overseas study (about 3,000 students). Koranic schools are found in most villages, but only teach the Koran by rote; medersas - -private muslim schools which use Arabic as the language of instruction and teach traditional academic subjects along with religion-- have experienced rapid growth in urban areas in recent years. There is also a small subsidized catholic education sector. In addition, some technical ministries run their own small-scale training programs. The education system in Mali is today confronted with a paradoxical situation of a high demand for primary education, a declining enrollment rates at this level, and an oversupply of higher level graduates, and, therefore, a distorted pyramid. Three Vocational and technical education programs are currently offered, all at the upper secondary level (10th grade): (a) 2-year VET offering the Certificat d'Aptitudes Professionnelle (CAP) in 13 specialties (to impart to the students the basic knowledge of the craft, and to develop their work aptitudes); (b) 3-year theoretical technical training leading to the Baccalaureat Technique (BTN) in three specialties; and (c) relatively high-level, four-year VET training for the Brevet de Technicien (MT) in 20 specialties. The CAP is offered.to 4,000 students, 40% of whom attend the Vocational Training School (CFP) in Bamako, with the rest enrolled in 5 small, regional public institutes (IFPs) and 13 private schools (which receive public subsidies on a per-student basis). The BTN is provided to 1,000 students at the Lyc6e Technique and the BT to 4,000 students at the ECICA (Ecole centrale pour l'industrie, le commerce et I'administration). In terms of administration, public technical and vocational schools are run by the Ministry of Secondary and Higher Education and Scientific Research, while private schools are independently managed. In addition to formal pre-serv ice training, 25 public and 13 private skills upgrading centers exist. Public centers are associated with specific ministries and train mainly civil servants and parastatal employees, while private centers offer training in management, computing and office skills, but not technicallindustrial skills. Private education plays little role in basic education, where with an enrollment of 16,454, it represents only 4% of the total. Its role in secondary and especially in technical and vocational education is more important as it represents 30% of the total enrollment at this level, and as much as 45% of that of technical and vocational education. Apprenticeship is essentially an informal means of skills acquisition; students (apprentices) are mostly illiterates, and the training is exclusively an on-the-job learning process with no academic (theoretical) vocational supplement. This means of skills acquisition is completely out of public control (government or chambers) and takes place in small production units. A recent experiment of in-service training involving the Malian Car Professionals Association (AMAPRO), a private training center (Centre Pbre Michel) and SWISSCONTACT is under implementation, and the preliminary results seem promising. The system, tailored after the German/Swiss system of apprenticeship, includes both academic training "sandwiched' between actual work periods in the enterprise. I'Administration) and EHEP (Ecole des Hautes Etudes Pratiques). In response to these signals from the labor market, the proportion of students opting for technical streams, and especially for these schools, has reportedly surged tremendously and beyond their capacity. 58. These reported shortages of mid-level skills, especially in technical areas, co-exist with a massive graduate unemployment characterized by a disproportionate share of higher education graduates. Indeed, according to a 1985 UNDP study, there were already more than 4,000 unemployed graduates (of all levels) and only one-third of them could be employed by the end of the year. According to the ONMOE records, of about 800 unemployed graduates registered in 1987 as unemployed (certainly the fraction most dynamic of the jobseekers), two-thirds had -34- a higher education degree,,' one-fourth a mid-level technical degree, and only 10% skilled worker training. Further, a study on the higher education manpower needs in Mali (Runner, 1988) indicated that for the period 1987-91, manpower needs in the economy would be about 600 per year, while already in 1986 as many as close to 1,200 students graduated (the double of the requirements) from higher education (incidentally, the demand for higher education graduates which was exceptionally low in 1987 could absorb only one-fourth of the graduates that year). 59. The analysis of the types of training provided by higher education shows an alarming lack of adaptation with the already known needs of the labor market. For example, the ENA (Ecole Nationale d'Administration) and ENSUP (Ecole Normale Sup6rieure) graduated respectively, 292 and 519 students in 1987, while the demand for civil servants and for secondary teachers (with the exception of a small number of math and science teachers) was already known for years to be saturated. Also, in agriculture where employment prospects do exist, the largely theoretical content of the curriculum does not correspond to employers' requirements; private employers are reportedly resorting to foreign recruitment in spite of the high number of unemployed agricultural engineers in the country. 60. This situation may not be resolved in the short term unless drastic rationing measures are taken. Indeed, under optimistic assumptions the demand for higher education graduates could be expected to remain at the 1986 anticipated level (600 in the modem sector, the only sector employing higher education graduates). Assuming further that for technical reasons about one- fourth of the graduates would need to be trained abroad, 450 students would need to graduate from higher education in Mali to fill the projected new positions. In order to allow for error, greater choice for employers, and more flexibility in the system, an additional pool of about 35% of graduates should be allowed, and accounting for the current internal efficiency of the system, which is such that graduates represent about 20% of the student body, the latter should be of about 3,000 persons. This is some 80% of the current notional capacity of 3,700, and far short of the current enrollment of 7,773 (in 1991/92). 61. It is obvious that addressing the issue of higher education graduate unemployment requires that a strict control of enrollment (and intake) growth be exercised. In order to address at the same time the impact that such a policy could have on the lower levels of education, measures will need to be taken to reinforce the employment training capacities at all levels, and especially the technical and vocational system. These measures would provide the mid-level and skilled level personnel required by the economy. 62. While secondary education includes a wide range of technical training opportunities, unemployment at this level can be explained by the insufficient number of employment opportunities in the formal sector for the kind (and certainly the quality) of training offered. Indeed, the structure of the system is such that technical and vocational training is mostly open to students having completed the basic education (i.e. with 9 years of general education). 1' It is commonly recognized that students graduating with secondary education diplomas are more prone to seek employment in the modern sector of the economy, which corresponds more to the 2 According to the 1991 survey, 34% of the total number of unemployed graduates had a higher education degree. The only exception to this are the Agriculture Training Center (CAA), and the Veterinarian Nurse School (EIV). - 35 - content of their training, the expected work environment, and the attitudes they have acquired, than in the informal sector where employment opportunities do exist. Under the current labor market conditions in Mali, young school leavers with lower job and wage expectations, who receive training through informal apprenticeship, experience no or very limited unemployment spells. 63. As for internal efficiency, dropout rates are very high in the first and second cycles of basic education (out of cohorts of 1000 entering students in each cycle, 846 eventually drop out in the first cycle, and 746 in the second cycle), and therefore important numbers of students enter the labor market without any kind of formal training. Although the informal sector, through the apprenticeship system, absorbs some of these school leavers (as well as those who never went to school), its capacity is limited (according to the 1987 Population Census the apprenticeship system represented about 2% of informal sector employment), especially in rural areas. In addition, the performance of the masters and production units where the training is taking place need much improvement themselves: the human capital stock in these production units does not allow an optimal combination of factors of production nor an adequate skills transfer. In light of this, it is important to consider the establishment of training facilities aimed at providing skills to the large number of leavers and dropouts of the Ist cycle of DEF, while continuing to reinforce their academic background. Multipurpose training centers have been piloted in other African countries that could serve as examples. The availability of such training opportunities imparting academic and practical skills needed in the economy and likely to. lead to employment (either as employee or self-employee), would have the effect of reducing the incentive to try to reach the highest levels of education where employment is less certain. It would also greatly contribute to improving production in the informal sector and would certainly lead to higher employment levels. 64. Education quality. Another important aspect of the external efficiency of the education system is related to the quality of the education and training provided. In the absence of any instrument to measure education quality objectively (this is best done using standardized tests), this study relies on the internal efficiency of the system (promotions, repetitions and dropouts).2' The internal efficiency of formal education in Mali is very low and has worsened over the last ten years. Based on 1986-87 promotion, repetition and dropout rates, it was estimated (see Bureau Central du Recensement, 1991) that out of a cohort of 1000 entering students in first cycle of basic education, only 154 go on to the 2nd cycle -of whom only 63 (6% of the entering cohort) complete it in 6 years-, 263 ever complete the cycle, and a total of 846 drop out along the way, without the certificate. This represents more than 5 times what would have been required (and cost) to graduate the same number of students under ideal conditions. Apart from being costly, many primary drop-outs relapse into illiteracy, while repetition limits access for non-enrolled children. In the second cycle, out of a cohort of 1,000, 254 students graduate with the Dipl6me d'6tudes Fondamentales, and 746 drop out along the way. The situation in secondary education, though slightly better, is still alarming: out of cohort of 1,000, only 571 students graduate from secondary education (therefore, 439 drop out). In higher education (all disciplines, and assuming four years of studies), only 452 students from a cohort of 1,000 would ever graduate, and 548 would drop out. One assessment of cognitive achievement at the 2nd and 5th grade of the first cycle of basic education was carried out in 1992; it confirmed the low quality level of elementary education. - 36 - 65. In particular, the quality of vocational and technical education which is designed for youth insertion into the labor market is very low: the centers are overcrowded (the Centre deformation professionnelle --CFP-- enrolls twice as many students as it was designed for); the equipments are old and often out of order (the CFP "utilizes" soviet equipment supplied in 1962); materials and maintenance are lacking; a high proportion of teachers (20%) are temporary, uncertified, with no pedagogical training; there is no on-the-job, practical training (in firms) are organized. 66. Such low efficiency indicators and poor quality of learning conditions have implications not only on the financing of the education system, but clearly on its external efficiency. It appears therefore that the education system in Mali is poorly adapted to the labor market, not only in terms of the type of occupations it trains for, but also in terms of the quality of the training it provides. 67. The are three main causes for the poor performance of the education system: First, the education sector is underfinanced; the share of the education in the total government recurrent budget, which was 31% in 1980, decreased to a low 17% in 1992. Although this level may not be lower than the average for African francophone countries (18% in 1988) the small size of the total budget reveals the degree of underfinancing of the education sector. Second, education resources are misallocated by level; the unit cost of a student in first cycle of basic education represents one-fifth the GDP per capita; this ratio is 1.9 for general secondary, 6.2 for higher education, and 17 times for teacher training. Resources are also misallocated with respect to the type of expenditures: 60% of the budget go to personnel, 25% to scholarships, and only 3% to the various materials (including teaching materials) and maintenance supplies. Third, poor learning conditions: lack of teaching and learning materials, poorly trained teachers, insufficient pedagogic support and control, and cluttered curriculum. VI.2 Sociological Imbalance 68. Lack of personal adaptation to labor market trends. For many years --and even now to great extent-, secondary and particularly higher education degrees were seen as entitlement to a job in the modern private or public sector. The current graduate unemployment in the country and the drastic measures limiting civil service employment taken these last years has not had yet the effect of adjusting graduates' job.expectations. Moreover, because the higher the education level, the more difficult the adjustment needs to be (given the type of employment opportunities in the market: low status and salary jobs), it is not surprising to observe that university graduates (especially in traditional civil service occupations: teaching, health, agriculture) represent a significant share of unemployed graduates. 69. One important reason for this over-representation of university graduates is related to the current government policy for granting scholarships --every higher education student is entitled to a scholarship. Scholarship policies may be justified on social and equity grounds, as they permit to disadvantaged students who otherwise could not afford the direct or indirect costs of attending higher education to have access to this level of education. However, granting universally scholarships in the context of high graduate unemployment, and inefficient resource allocation, both within the higher education budget (scholarships represent about 63% of the unit - 37 - cost of a university student) and among educational levels, 1' makes little economic sense. In addition, the relatively high level of these scholarships in times of high graduate unemployment (CFAF30,000, twice the minimum wage, and two-thirds the starting salary of university graduate in the civil service pay schedule) has the effect of attracting students to higher education, so contributing to reinforcing the imbalance of the resource allocation among education levels. Furthermore, it creates a disincentive for beneficiaries to rapidly complete their studies, and it unduly raises the graduates reservation wages. Under the present conditions in Mali, the solution would be to design a policy of selective scholarships strictly based on equity considerations, and aimed at attracting students in fields, particularly technical fields, that are in demand in the economy. 70. Labor market rigidities. The rigidity of the salaries in the civil service and the slow adjustments of the graduates' expectations have the perverse effect of reinforcing an imbalance which reduces greatly the social return to education in Mali, and increases the gap between private and social returns. Eliminating the constraints to the operations of the labor market will not however eliminate the problem in an economy where labor demand in modern employment is inelastic. Reducing the imbalance would require some rationing mechanisms; these can be based on the price of education, or on the quantity. Private returns to education usually far exceeds social returns in cases (such as in Mali) where education is highly subsidized, and private supply of education which is very limited does not play its role of reducing the gap between private and social returns to education (Table VI. 1). One solution would be, the variation of the cost of education: progressive reduction of scholarships, an increase in registration fees, and to reinforce equity in the system, free access to education for children from the poorest segments of society. On the other hand, the difficulty of fully implementing such a solution in a country like Mali suggests that implementing a simpler and strict quantity rationing mechanism may be easier. Higher education represents as much as 20% (including scholarship abroad, 7%) of the total government recurrent education budget; comparatively, primary education represents about 34%. - 38 - Table VI.1 Social and Private Returns to Education Social Returns No Unemployment 2 Years Unemployment* 2 Years Unemployment' No Repetition No Repetition 2 Years Repetition Grandes Ecoles (Bac+4) 17.9 9.2 8.1 Bac+2 22.5 9.2 6.6 Bac+1 13.5 7.3 6.5 Basic Education (9 years) 12.5 6.2 5.7 Cycle 1 (6 years) 29.3 13.7 13.1 Private Returns No Un.* I Y/Un.* 2 Y/Un.* 2 Y/Un.* 2 Y/Un.' 2 Y/Un.* 2 Y/Un.* No Rep.- No Rep.- No Rep.- I Rep. I Rep. 2 Rep.- 2 Rep.- Scholarship No Scholarship No Scholarship No Scholarship Gr. Ec. (Bac+4) 41.0 19.6 12.9 27.3 24.4 17.4 9.1 Bac+2 72.0 21.8 12.8 36.2 27.8 17.3 8.2 Bac+1 23.1 15.6 11.8 Non Applicable 13.5 15.4 9.3 Basic Educ. (9 years) 16.4 10.0 7.1 Non Applicable 11.0 8.2 4.9 Cycle 1 (6 years) 37.2 23.2 14.6 Non Applicable 31.9 27.9 13.2 Source: World Bank (1989) Notes: * Years of Unemployment prior to first job. - Number of Years Repeated - 39 - Table VI.2 Main Education Indicators (1990-1991) Total Bamako Repeating Last Grade (%) Total Public Private Total Public Private Total Public Privat Basic Education 397,758 381,304 16,454 95,176 91,995 3,181 26.8 27.1 20.7 Cycle 1' (Total) 340,573 327,452 13,121 74,082 71,752 2,330 27.1 27.4 21.2 Cycle 2' (Total) 57,185 53,852 3,333 21,094 20,243 851 25.3 25.7 19.0 Cycle I (Graduating Class) 29,351 27,981 1,370 8,213 7,913 300 25.8 26.6 10.4 Cycle 2 (Graduating Class) 17,900 16,827 1,073 6,609 6,326 283 37.5 38.1 59.0 Second. General Education 9,926 8,316 1,610 30.7 32.0 14.0 Graduating Class 2,343 1,996 347 27.9 28.8 22.5 Second. Teaching Education 894 -- -- 20.4 -- -- Graduating Class 314 -- -- 15.9 -- -- Secondary VET - Short Programs- (Total) 5,403 - ---- - Long Programs- (Total) 3,909 - ---- - Short Programs (Graduating Class) 2,443 -- -- 951 -- -- - Long Programs (Graduating Class) 535 447 88 72 50 22 Higher Education Source: Annuaire des Statistiques Scolaires 1990-91, Minist6re de I'Education Nationale Notes: Cycle 1: First 6 years of Basic Education Cycle 2: Last 3 years of Basic Education VET Short Programs: Two or three years of vocational education (Estimates); Total enrollment in incomplete st + "Tronc Commun": 826 students VET Long Programs: Four years of technical education ... The proportion of repeaters among currently enrolled students in graduating class. VII. REVIEW OF YOUTH EMPLOYMENT POLICIES AND PROGRAMS 71. This section reviews special employment policies and programs in developing countries and in Mali, and makes references to successful programs in industrialized countries where appropriate. Governments' responses to the persistent youth unemployment problem have been influenced by six (presumed causal) factors: (i) population pressure; (ii) mismatch between education and work; (iii) labor market imperfections; (iv) shortage of skills; (v) shortage of jobs - 40 - in the economy; (vi) lack of job experience. While the first three factors --population pressure, education-work relation, and labor market imperfections-- are usually addressed through policies involving long-term measures and structural changes, the last three factors have been the subject of many special employment programs which are briefly analyzed below. VII.1 Experiences in Other Countries 72. Countries have addressed the issue of general unemployment (including youth unemployment) through a variety of programs which could be classified into three broad groups (Freedman, 1990): (i) Self-employment and small enterprise creation, (ii) subsidized temporary employment, training and work experience, and (iii) direct government job creation.3' These schemes --often labeled directly productive interventions, as their goal is to put people to work-- are often contrasted with other more welfare-oriented programs. 73. The first type of programs -self-employment-- provides training and technical assistance a youth needs to be self-employed (example: the Botswana Brigades --Box VII. 1); however, the units created are usually small and generate little additional jobs, and are fragile, so making of this kind of intervention very risky. 74. The second broad type of programs --the subsidized temporary employment, training and work experience schemes-- can be divided into three categories: (i) subsidized temporary employment programs more common in industrialized countries, are used to induce employers to recruit young unemployed they would not normally hire either because they are unskilled, or because of other economic reasons. Under these programs, employers are either reimbursed by the Government the full allowance they pay the young worker (this is the case of the Irish Work Employment Program, for example), or are paid a flat rate for each hour of training they provide the young worker (as in the French Contrat Emploi-Formation); a third variant of this financial scheme offers a tax credit offsetting business income or payroll levies -the Spanish scheme, introduced in 1985, offers a rebate on the social security contribution of participating employers. These programs are subject to abuses which are difficult to contain (for example, employers in subsidized employment programs may provide no or irrelevant training, they may receive subsidies for activities they would have normally undertaken at a higher cost) but they do provide an incentive for many employers to recruit and provide young unemployed with the training and job experience they need to make a start in employment. (ii) More specific on-the-job training (aprenticeship) programs have also been developed; one such example is the Sri Lanka's National Apprenticeship Board (NAB) program aim to provide rural youths with apprenticeship opportunities in trades that are in local demand. Under this program, the government pays directly the apprentice a stipend and help the local master craftsmen with administrative and technical assistance in training the selected apprentices. (iii) Youths "Job readiness" programs which correspond to situation where there are mismatches between available labor and skill requirements of open jobs; typical While all these programs are not specifically targeted to the youth, they do benefit greatly from them; however, it is not possible to assess the impact of these on the youths alone. - 41 - Box VII.1: Two Successful Youth Employment Interventions in Africa Development Works Corporation of Mauritius This government corporation was created in 1970 to engage in labor intensive public works to be performed by youths otherwise engaged in 'submarginal" employment. Work teams were created with the goal of becoming production-cum-training units whose work was comparable to the private sector so that youths could find private employment. Due to the exceptionally high unemployment rate for male youths, on-the-job training became increasingly important and production was divided among more youths. By January 1985, nearly 4,000 youths were in training as building craftsmen, which was beyond the managerial and public works construction needs of the island. Diseconomies of scale had become large, but the program had become the main source of income for 5% of the island's families as early as 1970. It appears that the policy of using the Corporation as an employer of last resort had resulted in gross overexpansion of the program. Youths did not leave as soon as their training was complete, while large number of new recruits continued to be taken on. The Botswana Brigades (1965-) The "Brigades" movement of Botswana generates employment and promotes self employment through production-cum-training teams competing in the commercial market. Youths being trained in a craft work to the standards and requirements of the private market. Under the leadership of a Brigade Center, which organizes and manages multiple, youths are apprenticed in trade for 2-3 years leading to passing national competency tests. Some Brigades also train youths in entrepreneurship and "Development Studies" with the financial aid of the Kweng Rural Development Trust Association of Molepole. Brigades have been financed through multiple sources: their own funds augmented by sales revenues of the brigades; local and national government subsidies; loans form international agencies; and grants from voluntary organizations. The founders believed that learning by doing backed up with related continued education is the best of youth development and education. Apprentices work 80% and take classes 20% of the hours. Classroom instruction includes languages, mathematics and sciences related to their field, and some add business and development courses. The Brigades have been relatively successful for this type of program. Initially, the growth of the economy created a high demand for skilled construction craftsmen in particular, and the Brigades focused on this field while still training youths in textile, pottery, and leather crafts as well as trades related to agricultural development. Although enrollments have declined somewhat, the basic approach of the program has been continued wherever possible, and Government-supported projects have been pressured to do more training off the job. Source: Soffer and Zymelman, 1993 interventions in this category include pre-employment job training for open jobs such as the Customized Training for Open Jobs in Nigeria -1971-77. Under this program specific skills and general job-preparedness training are provided; job preparedness training objectives include changing attitudes and modifying eventual disruptive behavior patterns, familiarizing with tools, materials and manual skills involved, and providing remedial education if needed. The program pays for such vestibule training and also provides unemployed youth with ancillary services if necessary. 75. The third type of programs --direct government Job creation-- are characterized by the heavy government involvement in the design, direction, implementation, funding scheme, and - 42 - targeting process, eventhough the responsibility are often shared with NGOs, or local communities. They provide training and technical assistance a youth needs to become self- employed. Such programs often include major infrastructure projects but are increasingly turning to the implementation of small scale, community-based projects which should not compete with existing activities carried out by the private or public sectors; the participants of these projects are typically paid a rate below the established minimum wage. One of the major criticisms of this kind of programs is related to the fact that the jobs created are only temporary and that the training provided on the job is rarely relevant to the requirements of the private firms. These projects do add to income generating short-term jobs to the rare opportunities available in the economy; the AGETIPE-type of projects in the Sahelian countries of Africa fall in this category. 76. African countries (and other developing countries as well) have usually adopted a two- pronged strategy which addresses youth unemployment through (i) the introduction of changes in their education and training systems, and the implementation of specific projects to provide direct employment. The distinction between these two categories of actions may not be clear cut, however, as some specific projects include on-the-job training. According to some analysts (Livingstone, 1989), African governments have, however, traditionally invested more in the first type of interventions --e.g. modifying school curricula and structure, introducing craft courses in the system-- in spite of the common belief that the second type of interventions -employment projects-- may have more immediate impact and, therefore, be more popular. VII.2 Experiences in Mali 77. In Mali, as in many African countries during the early years of independence, deep reforms of the colonial school system were undertaken to reorient education to better fit the country's economic and social strategy. Indeed, one of the majors tenets of the 1962 educational reform was school "ruralization", defined as the way to link school to life, provide students with needed agricultural and other rural skills, and provide training cum production. Intermediary Practical Orientation Centers (Centres d'Orientation Moyen Pratiques --COMP-) were also created to provide skills to first cycle school leavers who would not continue on to the second cycle. Finally, all of the numerous national conferences held on education have emphasized the need to reinforce the linkages between education and work, and to make graduates and school leavers more employable. 78. . Most of the employment generation projects have focused on enterprise creation (See Box VII.2). While these projects are not exclusively targeted towards unemployed youth, they were expected to greatly benefit them because of the widespread belief that unemployed youth can easily be settled into self-employment. Unfortunately, previous studies show that success in productive and more remunerative activities than petty trading is not easy. As Vandemoortele (1990) pointed out, "the road to self-employment is long and tortuous"; there is a gap of approximately 15 years between the school leaver's first entry in the labor market and the time he/she becomes eventually a micro-entrepreneur in the manufacturing or services sector; and this time is typically filled with periods of apprenticeships, formal and informal sector wage employment, petty trading, and unemployment spells; periods during which they acquire the necessary maturity, skills, experience, and financial resources. 79. Indeed, one of the most important programs in Mali -the European Development Fund- financed small business creation and extension support project (see Box VII.2)- is reportedly - 43 - Box VH.2: Employment Generation Projects in Mall The following is a list of some of the employment generation projects, most of which are targeted towards the young unemployment, in Mali. * The ILO/Swiss Cooperation Project aims at providing support to the informal sector. This project which started in 1983, provides technical training, and counselling in management, organization and development of new products to hundreds of craftsmen organized in 18 professional associations. * The UNDP/ILO support to young graduates project (March 1987) aims at (i) helping young graduates in their job search through job counselling, improving labor market information by setting up a network of key informants; and, (ii) promoting self employment through counselling, assistance service to formulate bankable projects, establishing networks of resource persons to identify projects. In two years, more than 2000 projects were presented, which could not be financed due to the lack of dynamism of the local banks. The European Development Fund (EDF) launched in 1988 a project aimed at supporting small and medium size enterprises and the integration of young graduates in employment. The project, which was initially endowed with a credit of FCFA450 million, created during the first year alone more than 150 units. The Aid and Cooperation Funds (FAC) support SMI creation and help potential entrepreneurs, especially' those issued from the voluntary departure program, to formulate projects, constitute their dossiers, and eventually find external partners in France. * US-AID program of civil servants early voluntary retirement aims at helping applicants in their reconversion through subsidies, study funds, and a guarantee fund. - The UNDP/Norway/ILO training and cooperative promotion project trains cooperative members in a number of local communities. The Chamber of Commerce of Koln (Germany) carpenter and mechanics training project (since 1983); 96 trainees of this project found a job, and 9 enterprises have been created. * The World Bank's artisan extension service aims at promoting handicraft employment in S6gou and Sikasso; the project generated a group which employed 350 artisans, and trained 90 others. The ILO/UNDP Employment Promotion through SME/SMI creation by young graduates (1988-92) was funded under the World Bank supported 4th education project (USD 1 million credit line); this project resulted in the creation 400 actual or potential jobs. facing a high business failure rate because the businesses created are very fragile. In addition, the jobs generated through the program are in fact mostly unskilled jobs absorbing only a small proportion of the high stock of unemployed graduates (Fourcade and Tahar, 1990). 80. The ONMOE is involved in six initiatives aimed at improving employment for young graduates, three of them centered around the enterprise creation concept. The first initiative aimed at providing support to young graduates who would like to set up their own business: assistance in preparing the project, liaison with financing institutions, etc. In support to this initiative, training courses in enterprise creation have been organized in all the regions of the country and attended by as many as 600 unemployed young graduates. The second initiative is the Employment Revolving Fund (FARE), which guarantees loans and down payments on behalf of unemployed young graduates who want to start a business. Established on December 29, 1992, FARE is an autonomous body (Groupement d'Int6ret Economique --GIE) endowed with CFA565 million (see Annex VI for details); it has so far received 7 applications for projects for a total amount of CFA156 million. The third initiative is the Malian Bank for Commerce and Development (BMCD) credit line of CFAI05 million established in November 1991 to support -44- (on a loan basis) the creation of enterprises by youth graduates. Although 60 projects have been financed, the ONMOE is experiencing great difficulties recovering payment of the loan. 81. The other initiatives involving ONMOE are three temporary replacement programs which aim at providing temporary employment to unemployed graduates in the education sector, and the incentive program to support the insertion of young graduates into wage employment. The first temporary ("vacatariat") replacement program, financed by the Government of Canada benefitted 750 persons in 1992. The second temporary replacement program, funded out of the national budget provided temporary employment to 400 unemployed young graduates as teachers (302 at the secondary education level, and 98 in higher education). The relative success of the two "vacatariat" programs should not hide their eventual negative impact on the quality of education; these young unemployed are not necessarily fit, motivated or adequately trained for teaching. In addition, given the temporary nature of their contracts, they reportedly abandon their post as soon as they find longer term employment leaving the students without teachers for periods that can last weeks. The third program -practical training program for young graduates-- was designed to encourage formal sector firms to hire young graduates at 50% the market wage in exchange for a payroll tax credit corresponding to 50% of the tax they were expected to pay should they have hired the same workers at full wage (17% of the salary). This program (similar to the aforementioned 1985 Spanish program) has only limited success because the demand for labor in the private sector is currently very inelastic, and the proposed tax break and other incentives were insufficient to attract employers. Up to now, only 23 firms (out of 96 contacted) have agreed to participate in the program and hired 137 young graduates. 82. Direct iob creation. A public works program to undertake socially useful operations while providing temporary employment has been established under a World Bank credit (1992). The Agency for the Execution of Public Works and Employment (AGETIPE) provides funding to labor intensive projects proposed by local communities (the wage component of the projects should amount to at least 20% of the total cost). While most of the jobs created has benefitted youth, the project employs essentially unskilled labor: the equivalent of 3,000 permanent jobs have been created, and USD20 million worth of public works have been realized so far. 83. This study is aware of only one recent project of employment creation in rural areas targeted on youth (or benefitting them directly): the Malian National Workers Union (UNTM- CISL) project carried out in cooperation with the Italian CISL Branch. The objective of the project (a cooperative), initiated in 1988, is to facilitate the commercialization of agricultural products. 50 young people (graduates and non-graduates) have been hired and trained by the project which appears to be quite successful so far. VII.3 Lessons Learnt 84. From their review of youth employment policies and programs, analysts have drawn a number of valuable lessons with clear implications for Mali. - First and foremost, no youth employment policy and program can replace and produce the same long lasting impact as sound macro-economic and sectoral policies, strong labor market institutions, and undistorted general labor market operations. * Second, the type of intervention should accurately reflect the diagnosis made of the underlying causes of youth unemployment (for example, wrong attitudes on the - 45 - part of youth, or lack of employable skills). While this conclusion may appear obvious, it stresses the importance of thorough analyses of the causes of youth unemployment which are often not always easy to carry out given the lack of reliable data. Third, experience confirms that no single policy or program can address all forms of youth unemployment in a country. The causes for youth unemployment are different for various segments of the population (such as rural youth, urban youth, illiterate youth, school leavers, unemployed graduates, handicapped youth, etc.), and interventions should be carefully targeted in order to avoid costly waste. Fourth, policies and programs are not necessarily replicable and their design should reflect many other factors (political support, local implementation capacities, socio- cultural factors, etc.). Successful interventions in one country do not automatically translate into equally successful programs in another, or in the same country at a different time, even though the analysis may have led to the same diagnosis for youth unemployment. Fifth, the selection of special youth employment programs is best planned and administered on a decentralized basis, in order, to correspond to the nature of local mismatches of labor supply and demand. This is because the nature of these mismatches differs from place to place. On the other hand, national leadership and aid should be made available. VIII. CONCLUSIONS AND RECOMMENDATIONS 85. Statistics show that the ratio of youth unemployment rates to adult unemployment rates is similar in developed and developing countries, and Mali is no exception. However, youth unemployment in this country, and particularly that of secondary and higher education graduates which is disproportionate with regards to other levels, presents a real threat to the political stability of the country, and is a waste that this poverty-stricken sahelian country can ill-afford. This study concludes that the main cause of youth unemployment (as of general unemployment) in Mali is the supply of jobs, and the lack of future prospects for higher employment opportunities. The study has also identified among other causes: (i) the high rate of population growth which puts an undue pressure on an already limited capacity of the economy to provide enough jobs for all young people entering the labor force; (ii) labor market operations as well as wage and other labor-related costs which constraint future job creation in the private sector; (iii) limited labor market relevancy of education, which unduly raises job and status expectations among youth, and provides skills that are not in line with labor market requirements. 86. It is recognized that little can be done by the education (and employment) system to address the major causes -lack of enough jobs in the economy, and population growth--. On the other hand, some short term measures (policies and programs) should be taken to alleviate the current situation and reduce the stock of young unemployed in conjunction with longer term measures are needed to correct (i) imperfections in labor market operations and (ii) imbalances between education and work. This section is divided into two subsections: the first subsection recommends long-term measures to improve the match between education and employment; the second subsection recommends transitory measures to facilitate access to jobs (even short-term jobs) for as many unemployed graduates as possible. As already indicated, the emphasis of this - 46 - study is on the first category of measures. However, both types of actions need to be taken as part of a national strategy to tackle youth unemployment. VIII.1 Improving the Match Between Education and Employment 87. This subsection summarizes policy recommendations aimed at putting the education and training system in line with labor market requirements and easing the transition of Malian youth from school to work. The set of recommendations is a combination of policy measures and suggested reforms aimed to improving the functioning of the labor market and the external efficiency of education. VIII. 1.1 Improve Labor Market Operations and Information System 88. Improving the match between education and employment in Mali will require two important sets of measures: (i) measures to improve the efficiency of labor market operations; and (ii) measures to set up an information system capable of sending timely signals to the education and training systems and their students. Improve Labor Market Operations 89. As part of its economic restructuring strategy, Mali has undertaken encouraging efforts to remove most of the most important constraints to efficient labor market operations: a new labor code has been passed, the government monopoly as hiring intermediary in the private sector has been abandoned and private placement firms are now allowed to operate. However, these important steps are yet to be followed with decrees and orders. To facilitate quick progress towards efficient labor market operations, the government should move promptly to enact the new labor code, through tripartite consultations. Particular attention should be paid to (i) confirming the liberal approach taken by the new labor code with respect to workers hiring and dismissals; (ii) informing private placement agencies on their critical role in a well functioning labor market, supporting their establishment, and promoting the utilization of placement agencies (private and ONMOE) by enterprises; (iii) reviewing the structure of total cost of labor in a view to reduce it. Improve the Labor Market Information System 90. The current situation of the labor market in Mali, characterized by an imbalance between supply and demand of educated manpower, requires that (i) students (with the help of their advisors) make career decisions based on reliable labor market information; and (ii) a feedback mechanism be established to allow the education and training system to adjust to labor market conditions' For this, a system of systematic observation of labor market trends and its training requirements should be established. Such an information system can rely on several sources of information, including (but not limited to): (i) institutional statistics, generated from the records of offices such as the social security (INPS), and public and private employment services; 2'1 This obviously assumes that in the education and training system itself the willingness and the required adjustment mechanisms are in place. - 47 - Box VIII.1: Togo's Training and Employment Observatory In 1990, Togo established a Training and Employment Observatory (OEF) as part of a World Bank-supported technical and vocational training project. The OEF was located in the Ministry of Technical Education and Vocational Training. Its purpose was to gather information on labor and training markets to inform public and private decisions involving training and employment. To avoid the expensive process of gathering information already available from other sources, the OEF was expected to focus first on existing sources of data in Togo before generating new data. The information gathered was supposed to cover the public sector, parastatals, modem private sector, and informal urban and rural sectors. Training information was to be collected from training centers, apprenticeship programs, and other sources. Changes in public sector employment by occupation, pay grade, and salary were to be published every six months using administrative data on the civil service from the Directorate of Finance. Special ad hoc surveys were to be used to study the changing match between training and employment. Social security information on employment would be the main source of time series information for parastatals and modem private sector enterprises. This would form the basis for a sample of firms for regular surveys of pre-employment and in- service training needs. Regular analyses of the informal urban and rural sectors were to be carried out using periodic censuses, profession-specific studies (10-per year), and in-depth studies of some 30 firms in the 10 professions studied each year. One of the main sources of information of the OEF was to be the regular use of tracer studies of graduates from training centers and programs. This information would inform resource allocation decisions in both the public and private sectors. A household survey conducted as part of Togo's Social Dimensions of Adjustment project would be used to study patterns of education, training, employment, and income. New training needs would be identified by studying information on investment project dossiers submitted to the Ministry of Planning and applications from firms to participate in the Free Trade Zone. The OEF was expected to produce three kinds of products: charts summarizing the training and employment situation in Togo to provide a firm foundation for resource allocation decisions by a training fund, * the collection and analysis of data and studies on training and employment for publication, and - the distribution of the publications to as wide an audience as possible, including schools, training centers, and employers. Source: A. V. Adams. J. Middleton, and A. Ziderman (1992). Manpower Planning in a Market Economy with Labor Market Signals. World Bank Working Papers Series No. WPS 837. (ii) industrial surveys which describe the characteristics. (and the pattern of their evolution, assuming a series of such surveys) of the labor force in a particular sector or industry. For example, annual manpower registration surveys (the D6claration annuelle de la main d'oeuvre --DAMO), could be a valuable source of information on employment in the formal sector; similarly, periodic surveys on the informal sector or on specific industries or economic sector should be carried out; (iii) tracer studies, which follow a select number of graduates in their careers and provide useful information on the type of education, and curriculum contents, which allow graduates to perform better in the labor market; and, (iv) periodic household labor force surveys to permit cohort studies and to analyze the causes and characteristics of unemployment and the economic and social conditions of the unemployed. 91. The ONMOE, now freed from its previous role of systematically registering demand and supply of labor, could refocus its activities to carry out surveys, and execute studies on the present and future trends of the labor market. Indeed, a project for establishing an employment - 48 - observatory, such as the one in place in other African countries (Togo, for example) is now being reviewed (See Box VIII. 1), and this study strongly recommends that this project be given due consideration. The first task of this observatory should be to review and process the current labor market information available and improve the quality of the existing survey instruments such as the DAMO. In addition, the ONMOE could continue to play a role as a public placement agency in competition with private agencies. VIII. 1.2 Improving the External Efficiency of Education Adjust the Production of Graduates with Labor Market Demand. 92. Much of the current mismatches in the labor market are due to the oversupply of graduates in higher and secondary education. Reducing the oversupply will require quantity rationing mechanisms and an effective selection process, which would filter access to these levels of education to only those with higher chances of success. One of the key rationing instruments is the scholarship granted to students in secondary and higher education. It is recommended that the policy of systematic awarding of scholarships to all higher education students be revised, and that this equity-enhancing mechanism be allowed to fully play its role of permitting only capable and needy students to pursue on their studies. To achieve this, objective and well publicized criteria and a transparent procedure for granting scholarships should be established. Expand and Improve the Quality of Primary Education 93. Low enrollment rates such as that of Mali are important obstacles to development and solid foundation of basic knowledge as provided by quality primary education is key to the acquisition of effective vocational and technical skills. Expanding primary education and improving its quality will require (i) additional resources to primary education, including through re-allocation from higher levels of education, in order to increase the provision of inputs (teachers, books, and teacher training) and improved management of schools; and, (ii) a more efficient use of available resources. The government has undertaken to work towards these objectives, with support from the Bank through its Education Sector Consolidation Project. This study confirms the soundness of this approach and suggests that the drastic budgetary restructuring and the reallocation of resources in favor of primary education necessary for this policy to succeed would need to be resolutely carried out. Make the VTE School Curriculum more Receptive to Labor Market Signals 94. Adapting the school curriculum to the changing patterns of the labor market and ensuring that the quality of the trainees and their specialties are in line with the needs of the economy should be a constant concern for vocational and technical education. This study has indicated; for example, that in view of the limited job prospects in the modern sector of the economy in the near future, most of the employment generation programs have focused on the creation of small enterprises by the young graduates. Unfortunately, the school curricula have not changed to respond to this new demand and graduates are ill-prepared for these opportunities. What is needed, is to reorient the school curriculum to provide students with a solid general and technical background reinforced with in-school practical training, and to allow for in-firm short specific training. For such a program to succeed, the management structure of VTE schools would need to be changed and employers included in the schools boards. This reorientation should also aim - 49 - to promote more entrepreneurial and adaptable behaviors, as well as the acquisition of practical skills preparing graduates for employment in the private modern, and informal sectors, including self-employment. Establish Short and Medium Term Training for Traditional Apprentices 95. This study has observed that very few technical and vocational training opportunities are offered to students before they reach secondary education. While such a policy would be justified in the context of a country with 9 years of compulsory education, there is little justification for it in Mali where only 60% of first cycle terminating students pass the CFEPCEF (first cycle certificate) and only 37% of terminating second cycle students pass the DEF; in short, there is very limited access to technical and vocational training, and these data do not even account for the large numbers of those who drop out before reaching these levels. It has been observed that students who do not have access to secondary education, and who consequently have lower job expectations, face lower unemployment rates; most of them integrate the informal sector where they would first engage in petty trade activities before eventually receiving, from a master, through learning-by-doing (or traditional apprenticeship), strictly practical training in a specific trade; this training typically excludes the provision of any general and theoretical knowledge, which therefore limits the capacity of graduates to adapt to technological improvements in their fields. A system providing short or medium term training (depending on the type of trade being taught) to school leavers receiving practical training from an employer/master would contribute greatly to improving the overall skills level and productivity in the informal sector. The formal sector would also benefit indirectly from such training as it often recruits skilled workers having been trained through the traditional apprenticeship system. 96. To be successful, such training should be provided to individuals who have already established a solid link (several months of full time employment) with an employer/master; in addition, the training modalities (which would typically be in alternation between work and school) should be flexible enough to accommodate both the needs of the trainees and those of the employers/masters; and the training should focus on providing theoretical knowledge leaving to the masters the responsibility for providing practical skills. Finally, the sustainability of such a program would require a carefully designed cost sharing scheme. The Pere Michel, for example, is already providing such training for auto mechanics, with donor funding, at a scale unfortunately too small to satisfy the needs; greater support to these initiatives should be provided. In designing such a program, priority should be given to rural areas and secondary cities. Establish Enterprise Internship Programs 97. The Government has initiated an enterprise internship program which provides financial incentives for firms who participate in it (reduced salary for the trainee and tax break), and practical training opportunity for the graduates. This initiative, which is not yet as successful as expected given the currently low level of labor demand elasticity in the modern sector, and the limited incentive to firms, should be reviewed to identify the constraints and revised accordingly. Priority should be given to providing students with the unique opportunity to acquire on-the-job training and the experience needed to perform successfully in employment. In addition, the participation of firms in this program is an unique opportunity for the education and training system to seek and receive the feedback it needs to improve the contents of its curricula and - 50 - match labor market requirements. Indeed, few employers are satisfied with the pre-service training provided by the formal school system and many of them stressed during field visits the urgent need for a better trained workforce. Although some firms do provide in-service training, the majority do not, because of either the lack of adequate training facilities, or the high costs and low expected returns of providing specific training relevant to their field. These employers would consider favorably pre-employment on-the-job training which would "provide young workers with basic skills, stimulate their motivation, nurture their sense of responsibility, and generally cultivate their cultivate attitudes conducive to productivity in work" (Hashimoto, 1982). 98. The incentives to firms in the form of reduced salary is generally justified by an impressive body of literature in other countries suggesting that minimum legal minimum wages and its repercussions on other wage categories may have a negative effect on youth employment and on firms' provision of on-the-job training (OJT, perceived as a fringe benefits) to young workers. This argument is based on the fact that firms would be willing to provide OJT to young workers in exchange for lower wages, but that the existence of minimum wages impedes this trade-off. In implementing this program, attention should be paid to the danger of displacing adults or other youth who would have had the jobs without the programs and its incentives. Initiate and Systematize Student Counselling 99. Student counseling and guidance on career opportunities play a crucial role of easing the school to work transition of young graduates in many -mostly developed, but many developing- countries. It helps students make the right career choice for their aptitudes. What is required to set up an effective counselling service is first a reliable information system as described above, and second, trained counsellors who understand and have up-to-date information on labor market trends (occupational profiles, job contents, skills requirements, wages and remunerations components, employment prospects, education requirements, etc.). Mali lacks such a system and could consider establishing, within the education ministries and in connection with ONMOE, a counseling/guidance service. Establishing such services will require extensive training of job counsellors. VIII.2 Implementing Short-Term Employment Policies and Programs: The Role of the Social Sectors. 100. The focus of this study is on the role of education and training, and this role is usually (and rightly so) perceived as having only medium to long-term impacts. In a country such as Mali characterized by enrollment rates among the world's lowest, and unusually high graduate unemployment, the education sector is easily seen as a sector with tremendous employment opportunities. Indeed, the government has already perceived this opportunity and has started, through the ONMOE, successful temporary employment programs in secondary and higher education. However, the education priority in Mali is to greatly increase access to primary education; this is likely to be achieved through the implementation of a combination of key policy reforms and special programs to supply primary education with additional teachers and facilities with only limited net budgetary outlay. The policy measures include: (i) the reallocation of budgetary resources from higher levels to primary education; (ii) the re-deployment of the teaching corps from central education services and urban centers to rural schools; (iii) the active involvement of local communities in the provision of education; and, finally, (iv) the injection of additional resources into the education budget. This study recommends one special program - 51 - which would link the grant of higher education scholarships to the provision of two years of teaching services in primary education. 101. It is estimated that adding 5% to the primary enrollment rate each year would require about 1,275 additional teachers per year, 2' disregarding, for a moment, other policies aimed at increasing primary enrollment (for example: double-shifting, private schools promotion, and personnel redeployment). Given the country's limited education budget, it can be envisioned to establish a community service program which would guarantee full higher education scholarship to selected secondary graduates on the condition that they provide two years of teaching in primary schools. Such a program would involve (i) local communities passing an annual employment contract with prospective teachers and providing for some basic needs (food, lodging, and some cash); (ii) the Education Regional Directorates (Directions Regionales de l'Education --DRE) providing pre-service training during the holiday periods, and supervisory support; and, (iii) the Ministry of Education providing a compensatory salary for the duration of the teaching service and full scholarship for four years to study in the country's university. 102. The attractiveness of such a program to secondary graduates would evidently depend heavily upon the commitment of the government to implement a rational scholarship policy. The immediate direct and indirect impacts of such a program would be: (i) the enhancement of access of larger rural or otherwise disadvantaged groups of school-age children to basic education; (ii) the more active involvement of local communities, NGOs and the beneficiaries in the management of local schools; (iii) the provision of short-term employment to a number of secondary graduates who could not otherwise pursue their studies because they would not qualify for receiving scholarship under a new policy, and therefore may find themselves unemployed. A similar program could be designed to staff local health centers; it has been estimated that about 50 to 75 young graduates with a medical/paramedical background could be productively so employed. Assuming a student-teacher ratio of 55. BIBLIOGRAPHY 1. Achio, Frangoise (1985). La Formation Des Groupes de Jeunes D6favoris6s en Afrique. 2. Adams, A. V.; J. Middleton; and A. Ziderman (1992). Manpower Planning in a Market Economy with Labor Market Signals. World Bank Working Papers Series No. WPS 837. 3. Arrow, Kenneth (1973). Higher Education as a Filter. Journal of Public Economics. Vol. 2, pp. 193-216. 4. Assit-Lumumba, N'Dri Thdr6se (1985). Ad6quation entre la formation et I'emploi au Mali: Situation de I'Education Formelle et Besoin de Formation. Charlotte, North Carolina. 5. Bas, Daniel (1989). On-the-Job Training in Africa. International Labour Review, Vol. 128, No. 4 6. Becker, Gary (1975). Human Capital. 2nd Edition. University of Chigago Press. 7. Berg, Ivan (1970). Education and Jobs: The Great Training Robbery. Praeger Publishers. 8. Blaug, Mark (1973). Education and the Employment Problem in Developing Countries. ILO, Geneva. 9. Blaug, Mark (1972). Educated Unemployment in Asia: A Contrast Between India and the Philippines. The Philippines Economic Journal, Vol. XI, No. 1. 10. Blaug, Mark; Richard Layard; and Maureen Woodhall (1969). The Causes of Graduate Unemployment in India. Allen Lane The Penguin Press, London. 11. Bos Eduardo, My T. Vu, Ann Levin, and Rodolfo A. Bulatao (1992). World Bank Population Projections. 1992-93 Edition. Estimates and Projections with Related Demographic Statistics. World Bank and John Hopkins University Press. 12. Bureau International du Travail (1992). Promotion de l'Emploi par la Cr6ation de PME-PMI en R6publique du Mali. Rapport Final. R6sultats et Recommandations. 13. Cabrera, Jorge et Caffi, Claudio (1987). Programmme mondial de 1'emploi; Service de la technologie et de I'emploi -- Rapport technique -- Projet d'appui au secteur non structur6 de Bamako, des villes secondaires et des zones rurales du Mali. Gen6ve. 14. Carnoy, Martin (1977). Education and Employment: A Critical Appraisal. The Fundamentals of Educational Planning No. 26. UNESCO/IIEP, Paris 15. Commonwealth Secretariat (1985). Education and Youth Employment -- Contributions to the Ninth Conference of Commonwealth Education Ministers. Commonwealth Secretariat Publications. London. 16. Commonwealth Secretariat (1988). Education, Training and Work -- Some Commonwealth Responses to Youth Unemployment -- Commonwealth Secretariat Publications. London. 17. Courcelle, Michel and Anne de Lattre (1989). The Private Sector in Mali. OCDE/CILSS. Club du Sahel. 18. Doeringer, P. B. and M. J. Piore (1981). Internal Labor Markets and Manpower Analysis. Lexington, MA. 19. Edwards, Richard (1979). Contested Terrain. The Transformation of the Workplace in the Twentieth Century. Harper Torchbooks. New York, 1979. 20. Emmerij, Louis. Some Reflections on the Link Between Education and Employment. Higher Education. 21. Emmerij, Louis (1972). Research Priorities of the World Employment Programme. International Labour Review, Vol. 105, No. 5. 22. Fourcade, Bernard and Gabriel Tahar (1990). Wage-employment, Self-employment and Employment Promotion: The Malian Example. Labour and Society. IILS/ILO. Vol. 15, No. 4. 23. Freedman, David H. (1990). Special Employment Programmes in Developed and Developing Countries. International Labour Review, Vol. 129, No. 2. 24. Freedman, David H. (1989). An Overview and Comparative Analysis of Special Employment Programmes in Developed and Developing Countries. World Employment Programme Research. Labour Market Analysis and Employment Planning. Working Paper No. 29. Bibliography: Page 2 of 4 25. Gem, Jean-Pierre (1988). Pour une Strat6gie de Promotion de l'Emploi au Mali. Rapport de Mission. BIT, Genve. 26. Gillet, Pierre (1991). Construire la Formation - Outils pour les Enseignants et les Formateurs. ESF 6diteur. Paris. 27. Giran, Jean-Pierre et Roland Granier (198i). Politique de l'emploi. ECONOMICA, Paris. 28. Gordon, Margaret S. and Martin Trow (1979). Youth Education and Unemployment Problems. An International Perspective. A Study Prepared for the Carnegie Council on Policy Studies in Higher Education. 29. Gutkind, P. C. W. (1968). African Responses to Urban Wage Employment. International Labour Review, Vol. 97, No. 2. 30. Hashimoto, Masanori (1982). Minimum Wages Effects on Training on the Job. The American Economic Review, Vol. 72, No. 5. 31. Ingham, Mike (1989). Education and Youth Unemployment: A Reappraisal. Journal of Economic Studies. Vol. 16. No. 3. 32. Jobs and Skills Programme for Africa (JASPA)/World Employment Programme/ILO (1991). African Employment Report 1990. Addis Abeba. 33. Kanawaty, George and Claudio de Moura de Castro (1990). New Directions for Training: An Agenda for Action. International Labour Review, Vol. 129, No. 6. 34. Karmiloff, Igor; Colette Bessat et Jos6 Trouve (1985). Le d6veloppement de l'emploi au Mali. Mali. 35. Kirby, Peter et al. (1987). Jobs for Young People -- A Way to a Better Future. Report of a Commonwealth Expert Group. London. 36. Lachaud, Jean-Pierre (1990). Le march6 du travail au Mali: analyse et politiques. IIES/ILO. 37. Lachaud, Jean-Pierre and B. El Hadj Sidib6 (1993). Pauvret6 et March6 du Travail au Mali: Le Cas de Bamako. IIES/ILO DP52. 38. Lewis, W. Arthur (1970). Summary: the Causes of Unemployment in Less Developed Countries and Some Research Topics. International Labour Review, Vol. 101, No. 5. 39. Livingstone, Ian (1989). Unemployed Youth: Alternative Approaches to an African Crisis. International Labour Review. Vol. 128, No. 3. 40. Lubell, Harold (1991). Les Co0ts de Main d'Oeuvre dans le Secteur Moderne du Mali. Ministtre de la Fonction Publique et du Travail. ONMOE. 41. Ly, Boubakar (1991). Strategies for Occupation and Employment in the African Context. In Alain Touraine, Ed. Facing the Future. Young People and Unemployment Around the World. UNESCO-Orient Longman. Paris. 42. Melvyn, Peter (1977). Youth Unemployment in Industrialised Market Economy Countries. Youth Unemployment: Roots and Remedies. Working Paper. World Employment Programme Research. ILO, Geneva. 43. Mohabbat, Khan A. (1972). Disguised Unemployment: Definition and Ramification. The Philippines Economic Journal. Vol XI, No. 1 44. Morse, David A. (1968). The World Employment Programme. International Labour Review, Vol. 97, No. 6. 45. Mouly, Jean (1972). Some Remarks on the Concepts of Employment, Underemployment and Unemployment. International Labour Review. Vol. 105, No. 2. 46. Moura de Castro, Claudio and Antonio Cabral de Andrade (1990). Supply and Demand Mismatches in Training: Can Anything be Done? International Labour Review Vol 129, No. 3 47. Mulat, Teshome (1975). Educated Unemployment in the Sudan. World Development Programme, Education and Employment Project, Working Paper No. 5. 48. Nehru, Vikram; Eric Swanson; and Ashutosh Dubey (1993). A New Database on Human Capital Stock. Sources, Methodology, and Results. World Bank Policy Research Working Papers, WPS 1124. 49. Pain, Abraham (1992). Evaluer les Actions de Formation. Las 6ditions d'organisation, Paris Bibliography: Page 3 of 4 50. République du Mali. Ministère de l'Education Nationale. Direction Administrative et Financière (1992). Annuaire des Statistiques Scolaires 1990-1991. 51. République du Mali. Ministère de l'Education Nationale. Institut Pédagogique National (IPN). IVème Projet de Développement de l'Education de Base (1992). Rapport de Suivi et d'Evaluation du IVème Projet. 52. République du Mali. Ministère de l'Emploi et de la Formation Professionnelle (1992). Office National de la Main d'Oeuvre et de l'Emploi. Analyse des Résultats de la Déclaration Annuelle de Main d'Oeuvre 1989. 53. République du Mali. Ministère de l'Emploi et de la Formation Professionnelle (1992). Office National de la Main d'Oeuvre et de l'Emploi. Analyse des Résultats de la Déclaration Annuelle de Main d'Oeuvre 1988. 54. République du Mali. Ministère de l'Emploi et de la Formation Professionnelle (1991). Office National de la Main d'Oeuvre et de l'Emploi. Commentaires sur les Résultats du Recensement des Jeunes diplômés. 55. République du Mali. Ministère de l'Emploi et de la Formation Professionnelle (Août 1988). Office National de la Main d'Oeuvre et de l'Emploi. Enquête sur l'Emploi et le Chômage dans le District de Bamako. 56. République du Mali. Ministère de l'Emploi et de la Formation Professionnelle (1993). Office National de la Main d'Oeuvre et de l'Emploi. Rapport d'Activité de l'Exercice 1992. 57. République du Mali. Ministère du Plan et de la Coopération Internationale. Direction Nationale de la Statistique et de l'Informatique (1991). Bureau Central de Recensement. Recensement Général de la Population et de l'Habitat au Mali. Analyse. 58. Richter, Lothar (1989). Improving Employment and Manpower Information in Developing Countries. Results and Lessons of an ILO Technical Co-operation Programme. International Labour Review, Vol. 128, No. 5. 59. Robinson, Derek (1990). Civil Service Remuneration in Africa. International Labour Review Vol 129, No. 3 60. Rotenberg, Simon, Ed. (1979). The Economics of Legal Minimum Wages. American Enterprise Institute for Public Policy Research. Washington and London. 61. Runner, P. M. (1988). Analyse de l'Emploi 1987-2010. Pour une Restructuration de l'Enseignement Supérieur au Mali. 62. Sibille, Hughes (1989). Les Politiques d'Emploi à l'épreuve du Chômage de Longue Durée. Syros/Alternatives. Paris 63. Soffer, Benson and Manuel Zymelman (1993). A global Overview of Youth Employment Programs. AFTHR Technical Note No. 8. Technical Department. Africa Region. The World Bank. 64. Spence, A. M. (1974). Market Signalling: Informational Transfer in Hiring and Related Screening Processes. Harvard University Press, Cambridge, MA. 65. Stevenson, Gail and A. Van Adams, Avril (1992). Youth Unemployment in the Middle East and North Africa: Issues and Policies. World Bank. PHREE. Washington, D.C. 66. Tanguy, Lucie (1991). Quelle formation pour les ouvriers et les employés en France -- Rapport au Sécrétaire d'Etat à l'Enseignement Technique 67. Touraine, Alain (1991). Facing the Future. Young People and Unemployment Around the World. UNESCO-Orient Longman. Paris. 68. Union Démocratique du Peuple Malien (1989). Etats Généraux de l'Education. Textes des Communications. 69. Union Nationale des Travailleurs du Mali (1992). 8ème Congrès Ordinaire. Rapport Moral et d'Activités du Conseil Central. 70. UNESCO (1982). Employment-Oriented National Youth Programmes in Africa: Situations, Problems and Prospects. Reports and Papers in the Social Sciences No.44. Bibliography: Page 4 of 4 71. Vandemoortele, Jan (1990). Economic Management, Employment and Labour Market Policies in Sub-Saharan Africa: Issues for the 1990s. ILO/JASPA. Addis Ababa. 72. World Bank (1993). Mali: Assessment of Living conditions. Report No 11842-MLI. 73. World Bank (1991). Vocational and Technical Education Training -- A World Bank Policy Paper. ANNEXES TO SECTION IV Mali: Monthly Wages and Salaries, 1982-86 (In CPA francs per month) 1982 1983 1984 1985 1986 Contractual workers Kinisum wage for unskilled agricultural workers (SMAC) 8 696 3 696 8,696 11,690 11 690 Basic wage t;~ Tii :44 5:446 8,440 40 Special allowance 1,000 1,000 1,000 1,000 1,000 Cost of living allowance 2,250 2.250 2.250 2,250 2,250 Minimum vage for unskilled workers outside agricul ture (SMIG) 9 730 9 730 9 730 12 730 12 730 Basic wage 6T403 9:40~ T~3 9:403 Special allovance 1,000 1,000 1,000 1,000 1,000 Cost of living allowance 2,250 2,250 2,23e 2,250 - 2,250 Adjustment of March 1980 77 77 . d77 77 77 Government employees Credo 100 195$40 19 540-w ~ 9L -3%-f? Salary 17. 22052 V 2!' 311 Bousing allowance 1,500 1,500 1,500 1,500 1,500 Special allowance 1.000 1/ 1,000 1,000 1,000 1,000 Grade 316 60 732 60 732 60 732 69 368 69 368 Salary 59:23 59:23 W59:3 67:868 67:86 Bousing a10eace 1.500 1,500 1,500 1,500 1.500 Grad 650 123 336 123633 123 336 141,103 141.103 Salary 1186 121,836 121:536 139,603 139:603 ousing allowance 1,500 1,500 1,500 1,500 1,500 Source: Data provided by the Malian authorities. I/ Includes maximum special allowance granted, from February 1982, to workers whose monthly wages are less than CFAF 25,000. MI4ISTERE DE LA FONCTION '!EPUBLIQ'JE DJ Nit'..i PJaLIQUE ET DU TRAVAIL UN PEUPLE - UN 3UT - UNE F. à 3 1 N E T Lettre Circulaire N' OM I::-_CA- 'ortant modalités e'epl±:ation de 'indemité spéciale de solidaritë La préaente lettre m.irculaire & pour objet de prècisez le ch-mp e. '- .iodalités d'application de V'indemnite spéciale de solidarité instizuee par l'O. donnancb N'91-056/P.CTSP du 3 Septembre1991. Le bénefice de l'indanité spéciale de solidarité est accordé à touc "ts tonctiornaires et agent e..Soçletés d'Etat, de; uciétés Mixtes et Privies, des -Stablusemits Publics à Caractère Indulctrial et CaAercial. des Etablissementa Publice à Cwactere Administrot? zans aucune distinction (tr.vailleurs permanents, saisonnlors, temporaires ou ;D . En d'mut.râs termus toug lyi employmur: (pcrsonnes moraleb ou physe.t. · ennt e arti vi profesaJonnelle 2n R4publique du MaiL sont astreints >u Versement mensual de ladite -d 41,Ê'=ItD gýle de solidarité t exempte de toua impôts e% taxes. Considérée coe un -lement du slairec, elle est oumis- à la c a sociale et entre dans les 6lments mervant de base au caleul - de.s heures supplenentaire, - d4 1'411bta.UIOn de congé de »Ulidite - de l'llocation de congé payé, - de l'indemnité de préavis, - de l'indemnité de licanctument. La mention du montanz de l'indemnité de =olidarité doit figu-:cr our les bulletins de paie et les reg...tres de paioment. Li Corvention Collective rédérale du Ccamerce eyant servi de bjïase d1! référence, le agente relAvent dee autres Convention3 Lolloctivec ou ata.tu> sercit soeigilés & ceu1x de la Convention collective Fédérale du Coumerce. Leur classement se fera . à oncordance....ALgore. .......... -It ISTF.RE DE LA FONCTIG.i PUBLIQUE, nuI TRAVAII. REPUBLIQUE DU MALI .T DU. LA MODERINISATION -)E L'ADMINIST iTION UN PEUPI.E · UN BLrr - UNE FOI D11E9 IATIONALE )E L'IMPLOI, &,J Ti iAVA1 DE LA S URITE SOCIALE Salaires act.ualisés de la Convention CollectJi c des BAtimentø et Travaux Publico CKóFBTP du 8/7/1956 I:A i f DE INDEØ -TE IK~ITEf mGRATJ: NJORATlOK KUORATION AJORATION I E I M ýN TAL ~AmT SW- MNTANT S~f CTE(I E OS SPECI E 2IRTE 10 5 5 10 1 3 O0F O SPECIALE SOLIDARITE ØMJT NIS A C11- A L'I.G.R. 1)59 19 lIE 1974 1976 1978 19~0 105 AX1~4M 1982 1991 TION INPS I _ _ _ _ _ _ _ _ _ _ - 1985 _ _ ~___ OUVRIERS bre CA 2 /73 2 250 277 152 320 3 000 1 000 6 500 17 272 16 272 9 187 t 2".85 I f3 2 250 288 158 333 3 0W 1 000 6 500 17 414 16 414 9 324 d.e CAT. 3 %80 1 y# 2 250 338 185 390 3 000 1 000 6500 18 043 17 043 8 93. .o CAT . 3' 1 > 2 250 398 219 460 3 000 1000 6500 18813 17 813 10,672 I1 en 4 :60 I3 2 250 416 228 480 3 000 1 000 6 500 19 034 18 034 10 885 é~ CA1I 1r w: . 5 113 1 .'>l 250 511 281 590 3 000 1 000 6 500 20 245 19 245 12 053 2&fof . 5 '60 1".)0 2 250 546 300 630 3 000 1 000 6 500 20686 19686 12 478 so CAT. lor 6 L 6 13 1>30 2 250 641 352 740 3 000 1 00 6 500 21 896 20 896 13 644 7 t!.6 1 0 2 250 710 390 820 3 000 1 000 6 500 22 776 21 776 1 492. ( 7 99 1 tO 2 250 779 420 900 3000 1 000 6 500 23 656 22 656 1 341 r.. (A1 - ' - ．森，《．d. •一才一二－ 誹‘’〔州！〔：〕〕〕〕•〕〕 MINISTERE DE LA PONCTION REPUBLIQUE DU MALI PLBLIQUE ET DU TRAVAIL UN PELPLP-UN eUT-UN FOI MINISTERE DU BUDGET ARRETE INTERNINLSTERl. N' 91- 4336 /MFpr-m fixant le montant du cautionneenitjiurl'ouverture des bureaux et êffice privés de placement. LE MINISTRE.DE LA FONCTION PLBLI®U RT DU TRAVAIL, LE NNIIfSE DU KDUDGT, VU l'Acte Fondamental n' ,1/CTSP du 31 Mars 1991 ; VU l'Ordonnance n' 91- 067'./P.CTSP du lerOctobre 1991 portant modification du C, du Travail ; VU l'Ordonnance n° 90-63/P.RN du 31 Août 1990 portant création de la Direction Natl,., de l'Eaploi, du Travail et de la Sécurité Sociale ; VU la Loi n° 86-L4/Ag.BM du 21 afrs 196 portant Statut Général des Auxiliaires de Commerce ; VU le Décret n° 91 -319 /PM-RN du 2 Octobre 1991 fixant le@ modalités d'application de l'Ordonnance n° 91-067 /P.CTSP du 1erOctobre 1991 portant modification du Code du Travail ; VU le Décret n 91-208/P.CTSP du 26 Août 1991 portant nomination des Membres du Gouvernement ; 'j A R R T 8N T Article ler : Le a % du cautionnement exigé pour l'ouverture d'un bureau ou d'u- office privé de plac nt t fix coe .suit - pour les peari es.ehysiques.. .......100.000 FCFA - pour les pers ' s aor.les.. .......250.0 PCFA. Toutefois, les montants fixés cides , sont réduits de moitié lorsque 1 personne physique concernée est. un jeune dipl6mé sans emploi ou lorsque la majorité e. capital social de la personne morale est détenu* par les jeunes diplamés sans emplo:. Article 2 Le cautionnement prévu A l'article 1er ci-dessus, doit 4tre versé à Caisse des Dépots et Consignations. Article :Le présent Arrêté sera enregistré, publié et comnique partout où :ye-1rj sera. Koulouba, le 9 Octobr 1991 LE MI Du LE MINISTRE DE LA FONCTION PUB:.- ' NAVAIL Ouzar 'beDIA RA -Original.................... 1 -- -P.CTSP-Cour Sup.SOG..........3 ' -Tous Ministèrea.............21 21 -Toutes Direct.Nat.KM...... 3 Rg s./ -DNB-DNTCP.................... 2 Nj -ObM0E-INPS.&. ......... 2 ' -ACCT...... . . . . . . .. -. 1 -DRET SS............ ... 9 Archives Nationales - JORN.. 2 OFFICE NATIONAL DE LA MAIN-D'OEUVRE ET DE L'EMPLOI CELLULE D'APPUI A L'INSERTION DES JEUNES DIPLOMES ijwjf RAPPORT-D'&CrIVITES-£W LA CELLULE -D'APPUI A-L'INSERTION DES-JEU7NEs-DIPLOXES Le présent rapport a pour but de décrire les activités de la Cellule après un an d'existence. La délibération n"91-06 du Conseil d'Advinistration de l'Offi- ce Natic,nal de la Main-d'oeulre et de l'Emploi d; 27 Juillet 1991 potant créatio de la Cellule d'Appui à l'Insertion des Jeunes Diplmés a assigné- à cet organe les missions ci-après - la coordination, le suivi de toutes les actions de 1'Etat et des partenai- res au développement en direction des Jeunes Dipideés, en vue de leur insertion professionnelle ; - l'exécution des études. enquêtes, recensement concernant les jeunes diplomes ; - la tenue d'un fichier de jeunes dipîdmès - la diffusion d'une information pratique et opérationnelle sur les oppor- tunités d'emplois et de création d'entreprises ; - la mise en couvre des dispositifs spécialisés et des aides * publiques et privées destinés à favoriser l'embauche des jeunes diplaeés bt à leur faciliter la réalisation de leur projet de création d'entreprises - l'appui à la création et au développement des mécanis de sialidarité en vue du financemnt des projets de jeunes dipldes. Cosciente du fait que le chdoage est une situation très préoccupante demande des msures à la fois énergiques et urgentes, la Cellule s'est très vite mise au travail dès sa création, au sois de Janvier 1992. ..... -2- Ses actions, à travers sa direction et ses troi s sections. au cours de l'année 1992, ont porte sur - l'information et la sensibilisation - la tenue d'un fichier de jeunes dipldmés;: - les stages en entreprise ; - l'organisation des séminaires - l 'assistance aux jeunes diplimés pour les formalités et démarches adminis- tratives ; - l'étude de projets - la coordination et le suivi des actions de l'Etat et des partenaires au développement en faveur des jeunes dipldmés. C • AU TITRE DE LA SECTION ID0RMUTICK W OLRTATICK I.- L'INFORMTIou gT M SauSIsILISATI Il s'agit là d'une activité quotidienne de toute la Cellule, mais pzus particulièrment de la Section • IWFIIZCI I OJRIMTATIM Dans ce cadre, la Cellule a : - pris des contacts avec les différents organismes d'appui et de financement (pr*jet PJM/PiE-P$Y, PNUD-DIT.et PAPMr Canadien) en vue de recenser, de s'inforxer sur leurs adcanismes d'intervention et d'en faire un répertoire à la disposition des jeunes dipld"ms ; - réalise une dMission-radiophonique à la Radio libre *AAKAN" (Français et sanmanan> en vue de se faire connaltre et de sensibiliser certains de ses partenaires (bailleurs de fonds et opérateurs économiques sur le problme d'emploi des jeunes diplddés) ; - élaboré· un certain n'ombre de documents pratiques e dépliant sur la Cellule (en annexe j) e sch*ma d'annonce publicitaire de journal * manuel de procédure de la Cellule. --j- - a réalisé avec le Projet FEI) un seminaire J'.nftrmation à KOULIKOPO II. - LA TENUE D'UN FICHIER DE JEUNES DIPLOaS La Cellule reçoit en moyenne 15 jeunes diplômes par jour qui viennent pour déposer des projets, des demandes de stages ou d'assistance. rls sont automatiquemett inscrits sur des ziches de renseignement sous un numéro :ndivi- duel qui les suit au cours de toutes leurs démarches dans la structure. Elle a recensé à la date du 31 Décembre 1992,3367 Jeunes Dipldmés. En plus de ce numéro d'ordre, ce fichier contient les besoins spécifiques de chaque jeune diplômé. AU TITRE DE .A SCIrr ASmISTAmm BT INSMETION IlI.- LS STACRS MRPPRS A partir du mois de Mai 1992, la Cellule s'est attelée au problème de stage. Ce stage institué par l'ordonnance n*92-022/P-CTSP du 13 Avril 1992 et son décret d'application n®92-12/PR-RN a pour objectif de combler le auanque d'expérience professionnelle des jeunesdipldnés en vue de les rendre com- pétitifs sur le marché de l'emploi. La Cellule a coeumencé par l'information et'la sensibilisation des employeurs ;*les ont consisté en un premier temps à une prise de contact avec la Chambre de Comerce et d'industrie du Mali et la rédération Nationale des Employeurs en vue d'identifier les entreprises existantes. C'est ainsi que des lettres d'information furent adressées à 96 entreprises à BAMAKO (en annexe. II) suivies. de visites. -4 - UUne correspondance fu: envoyée à chacune des directions régionales de l'office National de la *ajn-d'Oeuvre et de l'Emploi pour en faire autant dans leur ressort respectif. . Elle a procédé au dépouillement des dossiers de demande de stage déposes au niveau de la section "Information et Orientation" et à leur répartition sui.sant les filières de formation. Enfin, elle a conçu un "contrat-type" dit de qualification mis à la dis- position des éventuels employeurs de jeunes dipldmés stagiaires (en annexe )III) A la dite du 31 Décembre 1992, seulement 23 entreprises ont répondu favora blement en octroyant des stages à 137 jeunes dipldmés de différents niveaux et de diverses spécialités ( Cf tableau en annexe IV) Ce résultat modeste s'explique par le fait que contrairement à leur esprit. les textes instituant le stage comportent des dispositions (article 6 et 7 de l'ordonnance) qui empêchent les entreprises d'en tirer profit. A cet effet, une let:re a été adressée au ninistre de l'Emploi et dé la Formation Professionnelle pour qu'elle prenne contact avec son homolygue chargé des vinances, des contacts ont été pris aussi avec la Direction des Impdts aux fins de revision desdits textes. IV. - L ORGAEXSaTI, DES smIgNAan Au cours de l'année 1992 la Cellule a organisé avec le concours du projet FED/PN-PàI, 8 séminaires dans les capitales régionales (excepté KIDAL) et 7 dans le District de SANAKO sur budget de 1 ONON. Ces smineàres sur "l'ESPRIT T LA CREATION D'ENTREPRISE " ont'permis, une moyenne de 40 jeunes dipldmés par session, de former 600 personnes. Ils avaients pour objectifs de - permettre aux séminaristes d'évaluer correctement leur potentiel entrepre- neurial -5- - leur apprendre les qud.'z t ssentielles d'un bon entrepreneur - devc'i>pper en eux. I'esm)r:: d'initiative er 1- 0OÙt du risque - leur donner les out:ls necossaires pour non !Leulement monter un Fi .jet. mais aussi le présenter de façon convaincanre aux bailleurs de focds . - leur uermettre de créer oc de gérer efficacement leur entreprise (nro- gramme en annexe) Ces différentes formations, après évaluation, se sont avérées tres p.-sittve V.- L'ASSISTANCE POUR LIS PORNALITES ET DMURCMS ADMINISTRATIVM Après avoir pris contact avec la Direction Nationale des Industries 'et la Direction Générale des Impôts, la Cellule a rassemblé et mis à la disposition des jeunes dipldmés des informations utiles sur la procédure d'obtention de l'agrément et les facilités fiscales qui leur sont accordées. Les jeunes dipldmés ont bénéficié de 1 'appui de la Cellule pour. 1 'obten,.aon des exondrations ou de tout document nécessaire à leur projet.. Certains jeunes dipldmés ont également bénéficié de son appui pour leur installation sur les parcelles aménagées à SAGUINEDA et à SELINCUE. AU TITRW DE LA Sociir armTUns gr PnojoTo V.- -29M D POar Lors de la passation de service, la cellule a reçu de V'ONMOE 1'8 projets et 35 demandes d'assistance. Au cours de l'année 1992, elle a reçu directement 218 projets et 36 demandes d'assistance soit au total 402 projets et 71 demandes d'assistance. Les agents de la Section. à l'aide d'un " Guide d'élaboration ont pré-étudié certains d'entre eux étroitement avec les promoteurs en insistant sur la nécessité pour eux d'être au coeur de leurs projets. A la date du 31 Dec-': 1992, 99 projets ont été envoyes ali structures - PNUD-BIT - CESIRISO - PAPME Canadien - SOTOBOUGOU. VII.- IA COORDINATION ET LE SUIVI DES ACTIOlS NWgM PAR LE COUVERMMIMT ET LS PARTMAIRES AU DMLNPPRMDT EN AVWUR DÇ JEUMS DIPLOMES La Cellule est en contact permanent avec les institutions d'appui aux jeunes dipldmés(PNUD-BIT, Projet FED/PME-PMI, PAPHE Canadien) dont les actions sont coordonnées par son Drecteur. Dans ce chapitre, les actions de la Cellule se résument essentiellemeq - la mise en place du " PARE ; - le suivi de la l.gne de crédit spéciale B#CD octroyée aux je)m>es - la coordination et le suivi des action» des partenaires au développement 1.- LE -FAR : FONDS Ac;TO-RENOUVELABLE POUR L'ENPLOI De concert avec l'OMOE,, la Cellule a initié ce fonds pour lever le handicap que constituent l'apport personnel et la garantie exigés par les structures de financement aux jeunes dip1dmés. Pour sa mise en place, des contacts ont été pris avec toutes les banques de la place non seulement pour leur éventuelle participation mais aussi pour connaltre les opportunités de financement qu'elles offraient. Il en a éte de ame pour les structures d'appui. Le "PARE" est un CIE (Croupement d'Intérit Econoique) dont les statuts ont été élaborées par Maltre ZOUBOYE FATOUMATA DICKO ( Notaire). enregistrés au service des domaines le 3 Juin 1992 ; publiés dans l'ESSOR du il Juin 1992 et déclarés sous le N*3105 du 7 Juillet 1992 du Registre du Comnerce. Ses organes sont : - le Conseil d'Administration présidé par l'AOE ; - le Comité de garantie qui statue sur les demandes de cautionnement - l'Agence d'exécution : la CNAR. gestionnaire du fonds met à la dispo- si.,;on de celui-ci, son agrément "Assurance-crédit" Ce G.I.E. riche de 565 millions de francs CFA est composé de - l'INPS : 250 Millions - V'ONOE : 50 Millions - la CNAR : Millions - la CCIM : 5 Millions - l'Etat (ONDA) : 255 Millions Il se porte caution de projets des jeunes d:nlmés dont la rentabilité est sûre et après des études ménées par le Comité de garantie. Existant officiellement depuis la 29 Dàcembre 1992 le PARD a déjà enreglÀtré 7 Demandes de cautionnement se chiffrant à 1$6 310 000 P CPA (tableau en'annexe 2.- . WSVX DE La L1JE SMD En Novembre 1991, l'Etat walien a mis à la disposition des jeunes dipldmés 105 00 000 de Francs CFA. Ce fonds est géré par le Ministre des Finances. Les actions de la Cellule sont déployées pour le recouvrement des prêts octroyés aux jeunes diplômés. Sur 60 projets financée, 57 ont été localisés et 22 ont déjà répondu à la convocation en déposant leurs rapports d'activités. Foromest de constater que des difficultés résident dans le remboursement '0 Oes prêts. -3.- La SmIratrow ET L SUIVI Dzo àCTIMS Dfv SrTRocrUR DAPPUI Aux JUma DIPEMW Pour coordonner et suivre les actions de l'Etat en faveur des jeunes dipl més, le Ministère chargé de l'nplol a nommé le Directeur de la cellule comme : -a- - coordonnateur du projet PNUD-BIT - représentant du Ministère auprès du Projet Canadien PAPME - représentant du Ministère auprès du Projet FED/PME-PMI. Dans le cadre de cette mission, le Directeur de la Cellule participe aux comités de gestion, aux Comités de crédit et aux Comités tripartites. Il participe activement à la vie de ces projets qui assurent le dévelop- pement des PME-PMI et l'insertion des jeunes diplômés. Par ailleurs, la Cellule, à travers ses différents agent.s, a - participé aux "Journées de Réflexion sur la Pormation Professionnelle" - pris part aux négociations de financement du "projet agricole de dévelop- pement f de l'Office du Niger avec la Banque Islamique de Développement. - produit des notes techniques sur des communications écrites en provenance du inistère de l'Emploi à travers la Direction de 'ONMOE, relatives à des questions d'insertion de jeunes dipldmés "hiérarchisation dans l'en, seignement supérieur". "réorientation des filières de l'IPR, l'EX, l 'S, "amélioration des relations entre I#Aduinistration et les usagers des services publics" ect... CONCLUSION Malgré la modestie de ses réalisations, la Cellule s'est beaucoup enrichie en expérience et a confiance en l'avenir. Au cours de l'année 1993, elle compte - réaliser des séminaires pour des jeunes dipldmés, tant à BAMAKO qu'à l'intérieur du pays. Un accent particulier sera mis sur les projets de M nature, tels que, crolecs agricoles, leunes méder:ins ou prnmoteurs installés dans le secteur induqtriel. -9 - - établir des contacts avec et entre les associations de jeunes diplômes en vue de développer entre elles un élan de solidarire à travers des C.I.E. des coopératives. des festivités destinées à recueillir des fonds etc... - procéder à la recherche de fonds pour l'augmentacion du capital du FARE - effectuer des études sur les créneaux porteurs dans toutes les régions et dans le District de DAMAKO ; - faire des missions dans les régions pour informer les jeunes dipldmés sur les opportunités de financement et autres mécanismes d'intervention du FARE ; - faire le suivi des projets garantis par le PARE et ceux financé*- sur la ligne BMCD. Dans ce dernier cas, on sollicitara l'autorisation du Minis tère chargé des Finances - Placer un nombre plus Important de jeunes dipldmés en stage. Elle sollicite - en ce qui concerne les stages professionnels une plus grande implication des pouvoirs publics dans la sensibilisation des employeurs (E.P.A, EPIC. et privâs) ; - la formation de ses cadres pour mieux faire face à leurs missions ; - l 'Infozmtimation de ses fichiers et registres ; - des parutions, dans la presse écrite, parlée et audio-visuelle dans le cadre de l'infomation et la sensibilisation ; - des équipements adéquats (véhicules, outils de travail pour accomplir les missions de sensibilisation et d'insertion. 重 A口認tl寫1 LISTS D&S UTISPUSES ATART IL3CU LA L3TTIN WINFORMATIOff.- i . UMPP 39. SADOU NYUMAN 2. ITAWA 40. COURA -3. KOICADJE 41. URECCE SOMATA/f 42. PSMSSAC 5. SADA-SA 43. BURAN 6 TEISSKIRK 6. ABAMIR FRIGORIFTOUS 45. Socz&Ts WSWW ET PRERES 7. 50~4 46. TArA KYMPUrlQUE 8. SONAPAR 47. KA1PCO 9. TOL MAU 48 LAiPZA 10. SR~ 49. A.C.P Ii. ULD 50. SADENA 12. NAW GAZ 51 UNINA 13. rARAW 52. B~ X 14. ~ PANAW 53. SUD SA~ rRAVAUX 15 SOMVXL 54. HYD~ EL 16. ~ Or 55. METM SOUDM 17. MAMTENTXoff AMCAIW8 56., XNPS 18. GRANDES COMSSERrES DU MAU 57. AZR ZVOM 19. sxPAL 58. Axa Guffirr SONAAXPAL 59. ARM~ G~DS NWLXMS DU 60. soffirm 22. USX88 DK PABRrOUR DE UrS MSTALUGUSS -61. ArA 6~ 23. G. M. P 62. SMaRAD 24. BANK OP AMCA 63. CP~ Wr81 25 SCPCH 64. DZAMA TOMrA 26. B.C.S 65. 3~ 27. SOLM 66. jtrz« 28. DZA0 67. SUPAC 29. = sSA 68. SA~ 30. SNJPC 69. SGRU 31. MDA 70. UNTM 8~ 8 32. EDN 71. MBM 33. CRAR 72. OW 34. 8DN 73. KrDRAMOUR 35. DCZAO 74. CJ~ ~ 36. CUDIF 75. AMX1 OXL BmcD 76. MMSXLZEM SA 77. SWXRrr MPUME DXAJW ANNU9 Il.- 78. LE BATISSEUR 79. ép MALI 80. PETRO-MALI SHELL 81. TOTAL TEXACO 82. SIEMI MALl 83. SENE CONSEIL 84. HOTEL DE L'AMTrIE 85. UTA 86. AIR AFRIQUE 87. DEIMAS MALI 88. T?ASIT CAUTHIER 89. JAMANA CULTURE 90 MAEN MAL 91. DJIGUE SA 92. RECOMA 93. REGIE CHENM DE FU 94. IMPRIMERIE LINO 95 SOTELKA 96. SATRgC. 77 OMTRAT DE QUALIFICATIOUV Entre la Société (ou J'Entreprise)............ .......... ..... ...... ....reprtsentée par a.................. ...................... appelée ci-dessous l'EMPLOYEWR. d'une par et M................................................ résidant habituellement à ....... ............................. appel ci-dessous STAGIAIRE. qui déclare libre de tout engagement, d'autre part, IL A ETE CONVENU, D'UN CGJN ACCORD CE QUI SUIT ARTICLE 1/ Monsieur ........................................ loue ses services en qualité de ........................................... ARTICLE 2/ L'Employeur s'engage, pour la durée du contrat à donner au Stagiaire une formation pratique lui permettant d'acquérir une qualification professionnelle @évue dans les qualifications d'emplois des conventions collectives en vigueur. ARTICLE }/ Le Stagiaire est engagé conformément aux dispositions de l'ordonnance I' 92-022/P-CTSP du 13 Avril 1992 portant institution du stage de formation professioh- nelle des Jeunes Diplômés sans emploi et des textes. règlementaires y afférents. Il pourra être appelé à effectuer son stage en un point quelconque du terri- toire de la République. ARTICLE 4/ Le présent contrat est conclu pour une durée de...... mois. Il prend effet à compter d............................. et vient à échéance le..................... Il est renouvelable par tacite reconduction. Le contrat peut être résilié par l'une ou l'autre des parties moyennant un préavis de........ mois, donné par la partie qui prend l'initiative de la rupture. ARTICLE }/ Le Stagiaire perçoit une rémunération payable mensuellement à terme ée.u de ............... F CFA. Il bénéficiera du régime de protection sociale des Apprentis. ARTICLS 6/ A L'issue du stage, l'Employeur s'engage à délivrer au Stagiaire une Attestation précisant la période et la catégorie professionnelle correspondant à l'empbI..tenu au cours du stage. Il s'abstiendra à cet effet de toute autre mention pouvant nuire au Stagiaire. (LU ET APPROUVE) LE STAGIAIRE L'EMPLOYEUR ANNEXE III (t lor9 1 r (CY r T C( c T erc r 6 el- .Tio * 71-t S T TQ 9 rI r c t 6 r -- r r JW3. r * r p 7( C tr7 7 Szn In Hn s 7M c t T p1nMkr~W C ( ( C 07 D .11 1m-Me/W3 :1 T ( 1 t ( T 6 9 1 1'm-~MI</Zi 7 TTs r p 7 (E21. 2W37t & i ilaa i PROGRAMEIE - SEIEAIRE - ATELIER fEPRIT ET CREATIM D'EUTlEflISE . Jout 1 -ion2J 13 im 4 JOUR 5 JUR 6 JOUR 7 1éthodologie et - 8tude de Mer- - Cmptabilité et - Fiscalité - Procédures et - Visites d'Entr - svaluation objectifs du se- ché. geetion d'entre d'entreprise. mécanismes prises. minaire. prise. . d'intervention des institu- - Cloture Pratique de la - Stude Techai- - Parcours du - Aspects nota- tions de finan- création d'entre- que. créateur d'en- rieux de la cement de pro- prise. treprise. création d'on- jets de Jeunes - atude ?inen- treprise. Dipômés. cière et éco- - bureau d'Etudes nomique. - Structure d'Ap- * Projet PED pui. * Projet PliUD/BIT - Institution de - Législation du PApME financement. Travail.· - Procédure Admi- • - Témoignage d'en nistrative. trepreneurs. - Partenariat. ANNEXES TO SECTION V SITUATION DE L'EMPLOI DANS LE SECTEUR PRIVE MODERNE DU MALI Uno onquto mondo par 1'DG, pour lo oompto do 1'ON V, on Déoombro 1986 donno pour los M5 entroprisos privdos (la quas tott-lité) implatéog i 0m0a los resultata guivtats i i =stribution dos antroprisce nanquoos/ccotour Sootour I Nombro d'ontrvPrismo I =Afoctifs Camoroo 1 75 1 ' 102 Industrio 1 48 2.310 Sorvioo 1 82 1 2 49 TOTA .. 2 51 5.784 I Xivonu de for=ation par fonotion &footif 1 onotton lvoau do frration DPriadro 1 OAP/m' Supiriour m% Imrton 04nrao 30% 1 43% 1 2 7 21% Iuminiht/ianoo 1 23% 67% 1 1¥ 7% lporsonnel 1 23% 1 8% 9% 13% 10amroial 1 314* 1 .% 1 11% ov ~is0= mnt stok. 1 2% r 5 18 275 ITGhiule - i7% - 494 1 14% 7% . IDtrttan 1 2% 1r4%8 ANNEXES TO SECTION VI Orientation à l'issue du DEF (avant les réorientations) Adis Veon Vers enscigncmcn Vcrs cnscignemet Vers aurcs Enscinble oracnds ANNEES au DEF général Icehniqu prurfssonnel enscignmnents Effcats En S dez EffecIifs En % &-à. Effcaifs En S &cS Effectifs En S des Effcctifs En ILde oricouts admsis oricells iadms orinés admis orectsél adm.s orentes aenas 1983 4 866 l 9% 46 163 4 8 254 30 856 20 4 229 87 1984 4 254 2081 49 214 5 742 7 576 14 3613 85 1985 4033 2 68 66 224 6 628 16 5 I 3 571 89 8986 4 738 2 435 Si 216 5 1 776 34 85 2 4 512 95 1987 2 413 1 339 55 158 7 982 34 - 2 409) (xi 1988 6497 3 482 53 209 3 2380 34 - - 6001 92 1989 5 890 2490 48 249 5 1 851 36 4 590 es 990 6560 2 124 33 160 2 3 504 54 - 5 788 88 1991 7799 5 521 71 287 4 8 693 25 7501e 96 y compris 880 caàdidats lires reentes caceplannellesncui qai se repalissent ainsi: Enscignnen gdnral 629 Ensegacnca technique I Enseigneun pwofessamncl 250 Enseignement technique et professionnel Effec:if total des élèves onentés par le IEN Etablissement Sutut 83.84 84-85 S5-S6 86-87 87-88 88-89 89-;0 90-91 91-92 ECICA pu 1 841 1 701 1 592 1 681 1 151 2 123 2 273 2 334 3 126 CFP pu 1 438 799 688 864 942 1 008 1 189 1 226 1 801 CFTQ pi 1 303 1 581 1 595 1 831 1 557 1 32: 1 140 1 814 959 CT%I Kay pi 142 160 163 169 228 254 280 403 - CTM Sik. pi 108 205 276 302 550 140 LTA Kta pu 44 113 112 143 166 158 CTMI Seg pi 78 179 364 184 CFPAA pu 20 40 59 75 CTM Bko pi il 179 147 C. Mabil. pi •_214 597 148 ESET pi 128 353 31 ITECA pi . 26 201 158 CSTC pi 22 182• EIP pi 14 92 si ETIKETIB pi 9 76 9 IFPT pi 25 25 CFR pi 52 33 CFAP pi 93 CFI p 9 Lycie Techa. p 683 660 608 627 737 82 783 741 905 IFP Ka3ea - pu 194 IFP Sikasso pU 328 IFP San pU 114 IFP Fana pu TOTAL 5 407 4901 4 646 5324 5333 6021 6753 9507 8 625 Statut pu = public pi - pnvé Signification des sigles : se reporter à l'annexe 7. Source • DNESGTP (annuaires statistiques) Enseignement professionnel Analyse détaillée du redoublement dans quelques établissements publics (1) Années Cycle CAP Cycle BT lère A Zème A % moyen lère A Zème A 3ème A 4ème A % moyen 987-88 a 369 576 945 596 745 751 539 2 631 b 26 149 175 101 140 219 61 521 % R 7.0 25.9 18.5 16.9 18.8 29.2 11.3 19.8 tx R 5.5 30.2 18.1 13.4 20.6 27.8 9,8 18.3 1988-89 a 543 465 1 001 1 316 505 740 574 3 135 b 17 :il ::1 87 127 :65 98 577 % R 3.1 45.4 22.6 6.6 25. 35.8 17.1 18.4 tx R 4.6 36.6 :4.1 14,6 17.0 35.3 18.2 21.9 1989-90 a 601 595 1 :02 I 192 980 630 550 3 352 b 55 142 197 188 89 208 143 628 % R 9.1 23.9 16.4 15.8 9.1 33.0 26.0 18.7 tx R 10.1 30.5 19.5 14.3 17.6 28.1 24.9 20.0 1990-91 a 504 72 1 26 678 658 754 240 2 330 b 138 230 368 149 35 167 43 394 % R 27.4 31.9 30.0 22.0 5.3 22.1 17.9 17.9 tx R 22.7 38.7 30.6 NC SC NC NC NC (1) CFP de Bamako. IPR et ECICA (CFP et ECICA seulement en 1990-91) Source : Aniuairs DNPES/DAF Légende - a - Effectif total b e dont redoublants %-I % de redoublants (moyenne pondérée) tx t tx de redoublement (moyenne pondérée) : voir dérinition page précédente NC • Non comparable car base différente en 1990-91 Enseignement technique long Baccalauréat malien lère partie Résultats par spécialité (option malienne) (candidats réguliers + libres) Sessions Inscrits Présentés Admis % admis T S T S T S T S 1983 117 145 114 142 58 67 51 47 1984 104 104 103 104 56 54 54 52 1985 113 94 107 91 50 36 47 40 1986 104 146 99 136 37 32 37 24 1987 127 169 125 166 48 83 38 50 1988 147 155 147 149 61 48 41 32 1989 131 170 131 168 65 68 50 40 1990 133 187 126 180 43 96 34 53 1991 173 178 167 173 101 97 60 56 T Tertiaire (technique économique) S Secondaire (technique industrie + génie civil) Sources : Annuaires DNPES/DAF depuis 1985 DNESGTP pour 1983 et 1984 Enseignement secondaire professionnel Brevet de technicien Résultats (Candidats réguliers + libres) Premire pa4rie Deuemc parle Insc r. Préme. Admis S adm laser. Présen. Admis % ad A 162 157 119 69.1 1981-82 1 133 129 116 89.9 T 29S 286 235 82.2 A $20 490 246 50.2 165 163 137 89.5 1982-83 1 294 291 196 67.4 178 177 167 94.3 T 814 781 442 56.6 343 340 304 89.4 A 616 565 143 25.3 271 266 220 82.7 1983-84 I 216 207 lit 53.6 193 192 171 89.1 T 832 772 254 32.9 464 458 391 85.4 A 629 12 373 31.3 179 179 142 79.3 1984-85 1 230 220 122 55.5 136 135 122 90,4 T 51 772 295 38.2 315 314 264 84.1 A 638 573 li 31.6 192 135 127 68.6 1983-86 I 235 230 142 61.7 131 130 107 82.3 T 873 803 323 40.2 323 315 234 74.3 A 624 S56 98 17.6 239 232 147 63.4 1986-87 I 222 213 115 54.0 166 164 139 8408 T 846 769 213 27.7 405 396 286 72.2 A 723 639 260 40.7 172 164 124 75.6 1987.88 I 228 217 172 79.3 137 135 128 94.8 T 95l 856 432 50.5 309 299 252 84.3 A 742 670 220 32.8 294 291 234 80.4 1988-89 1 223 210 144 68.6 183 110 148 82.2 T 9S $80 364 41.4 477 471 382 81.1 A 744 654 128 19.6 282 269 196 72.9 1989-90 1 2l 192 108 56.3 l75 175 149 85.31 T 955 846 236 27.9 457 444 345 77.7 A 919 854 393 46.0 177 173 142 82.1 1990.91 1 346 334 237 80.0 130 129 iti 86.0 T 1 265 1 88 630 53.0 307 302 253 83.8 A : Admiruscration / Tertiaire I Industne T : To.al Enseignement secondaire professionnel CAP : Résultats (Candidats réguliers + libres) ANNEES Optios Sftcns Prisentés Adm:s % dmis C 4 742 677 14.3 1981-82 1 548 432 78.8 T 5 290 1 109 21.0 C 5593 5 187 853 16.4 1982-83 5 371 353 235 66 6 T 5 964 5 540 - 088 19.6 C 4 199 4 329 746 17.2 1983-84 1 375 360 176 48.6 T 5 174 4689 922 19.,7 C 3 445 3 028 353 11.7 1984-85 1 390 362 223 61.6 T 3 835 3390 576 17.0 C 2 764 2 454 388 15.8 1985.86 i32 299 179 59.9 T 3 085 2 753 567 20.6 C 2 476 2 153 301 14.0 1986-87 1 456 434 211 48.6 T 2 932 2 587 512 19.8 C 2797 2 752 599 21.8 1987-88 1 524 521 316 60.7 T 3 391 3 273 915 28.0 C 2 366 2150 559 26.0 1988-89 I 489 463 289 63.4 T 255 2 613 848 32.5 C 2 563 2307 398 17.3 t989-90 ' I 547 524 357 68.1 _ 3 110 2 831 755 26.7 C 2 587 2 333 722 30.9 1990-91 8 6'2 635 451 71.0 T 3)259 2968 5 173 39.5 C Commerce / Tertiaire 1 Industrie T : Toal ETAT C3MPARATIF JES FORMAT1ONS NA7'ONALES E7 EXTERIEURES FONCTION DES BESOINS PREVISIBLES ( Moyenne annuelle période 1987 - 1991 SPECIALISATIONS Institutions Effectifs Diplômés Besoins Annuels Cap.Accueil 86/87 1986 Période 87/91 (Dar a A - NATIONALES Agronomie, Génie Rural I.P.R. 144 ' 321 971 141 Foresterie I.P.R. 40 Géologie E.N.I. 9 14 Mécanique Métal. E.N.I. Electrotechn. E.N.I. 726 593 17 102* Electronique Inform. E.N.I. Génie Civil E.N.I. 33 35 Radio-Conmunic. E.N.P.T. 206 156 60 23 Sc. Commerciales E.H.E.P.* 59 40* Comptabilité E.H.E.P. * 215 605 77 62* Administration/Gest. EHEP/ENA 56+140 66 Economie, Finances E.N.A. 65 27 860 1 421 Sc. Juridiques E.N.A. 72 12 Sc. Médicales E.N.M.P. 350 530 29 il Enseignement E.N.Sup. 1 032 1 459 393 23 S/TOTAL 3 710 5. 735 1 194 556 B - EXTERIEURES Effectifs en formation .anée. 1986/87 - - - Hydrologie 581 boursiers au total, soit: 2 Sc. Vétéri rres - 60 doctorats; Sc. Energie-Me• - 227 mattrises; 4 Chimie- Prod. Alim. - 151 ingénieurs; 33 sois,Mat. Plast. - 111 tecniciens sup. 13 Architecture, Urb. dans toutes disciplines 5 Divers 17 (*) Assuré partiellement ou à des niveaux pas forcément appropriés. Evolution du nombre des boursiers par juridiction d'accuell et type de formation 1962/83 1 13984/85 l 05/66 1 1986/37 Aidjan .....øl - I - I - I ý -t l .. t - l - I - I - I - I - l - 1 -1 - I - - - - -t- 9 1 - -t 9 Alger....... I - 1 9 I 141 5 1 28 l 6 l 271 351 471115 1 9 118 134 1 721 1331 7 1 171 241 461 94 1 4 120 l 6 1 351 65 Bolao....1 - l 4 1 41 - 1 0 l I 1 11 11 - 1 3 1 2 1 - I I I - 1 31 - 1 7! -1 -1 F 1 3 t 3 1 4 1 -1 10 Borlin..... . - I . 7! - l 7 I 5 1 3 l 61 - 114 1 5 1 4 1 8 1 - 1 171 1 1 11 151 -1 17 1 5 l I 4 1 -t 10 Bonn...... - 1 2 1 ?1 .. 9 1 . 1 1 111 - 112 1 - l - l 4 1 - 1 41 - 1 21 01 -1 16 1 - 1 -l 1 -1 7 Bru=ollo...' - I - 1 61 - 1 6 1 I - I 41 - 1 5 1 - l 1 1 0 1 - I 91 2 1 21 11 -1 5 1 1 1 9 111. -1 21 Cciro("o)... -11 4. 11 - 2 1 -110 112 1- 1 5 1 - 11 61 - 1 -1 -! 211 21 1 - 1 9 1 - 1 291 38 Abæ fhbi.. - l 4 l -1 - 1 4 - - I -4 - I- I- 1 4 l - I - 1 41 - 1 -1 -1 - I - i - 1 6 I - 1 51 11 Dakar.......I - 2 1 -I - 1 2 1 - I 8 I - - I 8 1 - 122 I 9 I 5 1 361 4 1 121 21 4 1 22 1 - 130 111 1 161 65 Djoadah.....i - l 2 1 -4 - 1 2 1 - l - l - I - - I - I - I - I - I - I - 1 -1 -1 - - I 1 l- I - t i Noeou..... 127 138 1 55118 1135 131 167 115 l 2 1175 119 11151123111 1 268161 1126195 t 1 1.28 138 189 187 1 1 l 250 Ottawa..... I I I - 1 3110 1 14 1 2 l 5 113 1 - l 20 1 - l 11 1123 l 251 2 1 11 - 1 6 1 9 1 l I - t - 1 5 1 6 Parig...... I - 1 8 1 -1 - 1 0 1 i 124 l 4 1 - 1 29 I 9 116 1 241 - I 49 1 4 1 14111 1 - l 29 1 4 113 112 1 - 1 29 PMkin...... I - I 1 7 ?1 - l 6 1 7 1 1 I 7 1 - 1 15 l 7 1 - I 71 - 1 14 l 8 I -1 8 I - 1 16 l 4 1 6 I 9 1 - 1 16 Tripoli.....i - I 1 1 11 5 I 7 l -11 - I - I - I - 11 - I - I - 1 - l.- i - l -1 - i - I - 11 - 123 1 - 120 1 4 3 wamhington... - - - - I - 1 . I - 1 - - - I - - - - 2 - I - 8 -1 - , - - - 12- I - - 1 - Esen~blo....I25 172 1104138 1239 154 11391156159 1go 151 118612191112155. 89I182I164r78 151 160 1227115111111 SaJ ANNEXES TO SECTION VII WE Ts-s Mlle 1_ALL_/ PnEi31DENCE DU COMITE DE TRANSITION REPUBLIQUE DU MALI POUR LE SALUT DU PEUPLE UN PEUPLE - UN BUT - UNE FOI P R 1 M A T U R E.. MINISTFRE DELEGUE AUX REFORMES INSTITUTIONNELLES ET A LA DECENTRALlSATION 4AL SECRFTARIAT GENERAL DU GOUVERNEMENT () RDONNANCE /) 92 - 2P.CTSP.- INSTITUANT LE STAGE DE FORMATION PROFESSIONNELLE DES JEUNES DIPLOMES SANS EMPLOI. LE PRESIDENT DU COMITE DE TRANSITION POUR LE SALUT DU PEUPLE, VU l'Acte Fondamental N'1/CTSP du 31 Mars 1991 \t. la Loi N'62-67/AN-RM du 9 Août 1962 instituant un Code du rravail en République du Mali, modifiée par le Loi N*88- 35/AN-RN du 8 Février 1988 ; La Lzi N*61-59/AN-RM du 15 'Mai 1961 portant création de l'Institut National de Prévoyance Sociale ; La Cour Supréme entendue en sa séance du 9 Mars 1992 Le Conseil' des Ministres entendu en sa séance du Il Mars !992. ORDONNE: ARi.-Lt.rJ :Au sens de la présente ordonnance, est jeune diplz=e sans emploi toute p*»:ot,te àgée de 35 ans au plus, titulaire d'un diplôme d'enseignement supérieur ou d'un diplôme d'enseignement secondaire, général, technique ou professionnel, cm quête d'un premier emploi. S_f :En vue d'acquérir une expérience professionnelle et de faciliter son insertion professionnelle, tout jeune diplômé en quête d'un premier emploi permanent peut, dans les conditions f;-érs par la présente ordonnance, être admis à effectuer un ou plusieure stages dans les entreprises privées, publiques ou auprès (les collectivités territoriales. .<T1.F_3 :Ces stages s'effectuent sur la base d'un contrat de :ra;%; l de type particulier appelé contrat de qualification. ARTICLE 4 : Le contrat de qualification est conclu pour une durée de six mois renouvelable trois fois par le sme employeur. Il est constaté par un écrit enregistré à la Direction Régionale concernée de l'Office National de la Main-d'Oeuvre et 4e l'Enploi. ABTICLE 5 : Pendant l'exécution du contrat de qualification, 1 'employeur s'engage, pour la durée prévue, à donner au stagiaire une formation pratique lui permettant d'acquérir une qualification professionnelle prévue dans les classifications d'emplois des conventions collectives en vigueur et à lui verser une allocation forfaitaire dont le montant est fixé par décret.. 14 ARTICLE 6 : L'allocation vernie au stagiaire est déduite du montant de l'assiette de la contribution forfaitaire due par l'employeur au titre des salaires payés à son personnel. Toutefois, le plafond des déductions accordées à l'ensemble des entreprises au titre du présent décret est fixé annuellement. L'employeur bénéficie d'un déduction pleine des allocations pour la lère période et d'une déduction dégressiwe pour les deux dernières périodes. ARTICLE 7 : L'allocation versée aux stagiaires n'est pas prise en compte dans le calcul des impôts dont l'entreprise est redevable. ARTICLE 8 : Les stagiaires bénéficient du régime de protection âociale des apprentis. Ils ne sont pas pris en compte dans l'effectif du personnel des entreprises ou des services dont ils relèvent en ce qui concerne l'application des dispositions législatives et réglementaires relatives à l'effectif minieun ou maximum de salariés. AIl.ECJ&i: Sera puni d'une amende de 50.000 à 500.000 F CFA, l'employeur qui contreviendra aux dispositions de la présente ordonnance et de son décret d'application sans préjudice du versement &ta Service des Impôts des sones indùment déduites de la contribution forfaitaire. ARTICLE 10 : Pendant une période d'un an à compter de la date de signature de la présente ordonnance, les jeunes diplôrés sans emploi ayant atteint l'âge de 40 ans seront autorisés à titre exceptionnel et en dérogation à l'article ler, à effectuer des stages de formation professionnelle. ARTICLE Il : Un décret fixe les modalités d'application de la présente ordonnance. ARTICLE 12 :La présente Ordonnance sera exécutée comme Loi de 1'Etat. BAMAKO, le 13 AVRIL 1992 LE PRESIDENT DU CONITE DE TRANSITION POUR LE SALUT DU PEUPLE, LT-COLONEL AMADOU TOUHANI TOURE.- PRI NATURE REPUBLIQE DU NALI UN PEUPLE-W WT-u F0I KINISTERE DraLa AE REOM INSTIIIONNELM gr à LA SECRETARIAT GfNRAL DU nDus= N•0 92 - M& (- FIzANT a M ALIT D'OAPPUCICm M STAm De M0RIATI S mim SANS 1PIO. 12 P<mIE NINISTRE, W l'Acte Fondanoutal B•1/CT8P du 31· Mar 191 ; W la Loi n°62-67/Au-M du 9 Aot 192 inmtitumnt un Cod du Travail n Rpubliqu du Mali. modifie par la loi •88-, 35/AN-af du 8 Février 1988; vu la Loi n61-59/AN-M du 15 mai 1961 portant création de l'Istitut National P&Wvoanff Sooiale • W ieOrdn==an= - 9& P-CW du 13 99k lm instituant le stage de formation profeionnelle· des JeUnes dipl&m sans m1ploi ; vu la Décret n*91-001/P-CYP de à Avril 1991 pirtant aonation d'un Pranter Mén1tre ;p a VU 1 Décret n'91-458/P-CTM du 27 Déembre 191 portant nomination des om•resn du Gouver.t. ARILQaE R : Le dépt de contrat de qualitioation conclu entre le jeune diplômé et lemployeur a •lieu au plus tard un mois avant le début du stage. - - .- Das un délai de 15 Jours à compter de la date du dépôt. lm Directeur Génral ou le Directeur Régional de l'offe de 1t main d'Oeuvre et de 1-mploi notifie au chef de l'etroprie concernée, la régularité juridique du cantrat et la possibilité de la déduction de 1 allocation versée au stagiaire de l'assiette de la contribution forfaitaire. ARTICfLL2 : Le plafond des déductions accordées A lenable des entreprisse au titre des allocation versées am stagiaires au application du présent décret est fixé par arrêté conjoint des Ministres chargées du amdt et du Travail. ARTYCfL2 : Leu Jeunes diplàmés bénéficiaires de contrats de qualification perçoivent une allocation égale A 50 % du salaire de. base de la catégorie profemsionlle correspondant A l'emploi tenu, sans que le montant total puisse dépanner 50.000 F CFA. ARTICL 4 : Le Directeur Général et les Directeurs Régionaux de l'Office National de la Main d'Oeuvre et de l'Emploi ainsi que les Inspecteurs du Travail sont chargée du contrôle de l'exécution des contrats de qualification. ARTICLE - : Le nombre de bénéficiaires de contrat de quali.fication ne aaura-it -dépasser 10 'X de- l"effectif -du- personnel permanent de 1'entreprise. ARTTILE_ : Pour bénéficier de la déduction des allocations versées aux stagiaires du montant de l'assiette de la contribution forfaitaire due sur les salaires payés à son personnel. l'employeur doit : - déposer au Centre des Impôts dont il relève, une copie du contrat de qualification et une copie de la lettre de nofication de l'accord pour la déduction fiscale ; - adresser chaque mois à ce même service des Impôts un état nominatif des stagiaires de son entreprise en indiquant les références de contrats et le montant des allocations qui leur sont versées. ARTTLE 7 : A l'issue du stage de formation professionnelle, l'entreprise ou ie service employeur est tenu de déliv-rer une attestation écrite au jeune diplômé. Cette attestation doit préciser la période et la . r.égorie professionnelle currepondant à l'emploi tenu a. -ours du stage. ABTCLR A : Le Ministre de la Fonction Publique et du Travail, le Ministre de l'Economie et des Finances, le Ministre du Budget sont chargés, chacun en ce qui le concerne, de 1-exécution du présent décret qui sera enregistré et publié au Journal Officiel. BAMAKO. LE 18 AVIL 1992 LE MINISTRE DE LA FONCTION LE PRÉMIER MINISTRE, PUBU.QUE ET* DU TRAVAIL, D flTDA A .'SUA K LE MINISTRE DE L'ECONOMIE LE MINIS DU ET. ET DES FINANCES, air