Kyrgyzstan 2011/2012 - Skills for Trade and Economic Diversification (STED)

Project document | 24 January 2012
STED is a strategic tool developed by the ILO that provides guidance for the integration of skills development in sectoral policies. It is designed to support growth and decent employment creation in sectors that have the potential to increase exports and to contribute to economic diversification.

STED is being applied in Kyrgyzstan in 2011/2 in cooperation with the ILO Enterprise Department’s work on Enhancing the Enabling Environment for Sustainable Enterprises. It covers the garment sector.

Stakeholder Workshop

A workshop with representatives from relevant government and education institutions as well as employers' and workers' representatives from the respective sectors is organized in Bishkek to discuss and validate initial findings and promote skills dialogue among stakeholders.

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Final report

Skills for Trade and Economic Diversification in the Kyrgyz garment sector

Selected Findings

The garment sector faces significant adjustment challenges, including from trade policy changes and potential adjustments to the small business tax system. At the same time, the current model of competitiveness through very low wages has reached its limits.

In the medium term, it is likely that the sector will undergo consolidation towards fewer, larger, and more competitive enterprises. Increasing labour productivity will be key to maintain competitiveness.

Structural adjustments are expected to increase demand for specific types of skilled labour and new skill sets in particular in terms of quality control and marketing.

Public technical education institutions often fail to provide the required level of training, often due to outdated curricula and equipment. On the job training is frequent but informality and high labour turnover reduce incentives of workers and employers to invest in training.

Recommendations include specific training curricula and equipment for schools, strengthening of a recently founded sectoral body for skills anticipation, and application of the ILO’s SCORE methodology to enhance labour productivity and reduce informality and labour turnover.

Skills for Trade and Economic Diversification (STED)