64501 August 2011 · Number 88 THE AMAL PROGRAM: “HOPE� FOR UNEMPLOYED YOUTH IN THE MENA REGION Diego F. Angel-Urdinola and Rene Leon-Solano1 The World Bank supported the Interim Government of Tunisia in the design and Introduction: To respond to high unemployment implementation of the AMAL program through rates among youth (often educated entrants to the the Governance and Opportunities Development labor market), many countries in the MENA region Policy Loan (DPL), a multi-sector program of have designed and implemented programs that reforms that supports the post-revolution aim to enhance youth employability. However, a transition period. recent study revealed that despite significant investments, many youth programs in MENA lack A Selected Overview of Youth Programs: Many countries, the necessary features that make these types of particularly in the Organization for Economic programs successful. Youth programs in the region Cooperation and Development (OECD) and Latin are often characterized by weak coordination with America, have moved from a traditional in- the private sector, are supply driven and classroom model to a more comprehensive one traditional (mainly in-class training), lack that includes supplementary services such as monitoring and evaluation (M&E) systems, and counseling and mentoring, job search and generally do not provide other important services, placement assistance, and soft and life skills such as employment intermediation, training in training. As a result of various crisis, youth soft and life skills, and/or job counseling. 2 unemployment rates soared in many Latin American countries in the late 1990s. In Chile, the This note describes a new approach to youth Government designed the “Chile Joven� program, employment programs in MENA through the which offered comprehensive demand-driven recently implemented AMAL (Arabic for “Hope�) training and employment services to unskilled program in Tunisia. AMAL is the first large-scale unemployed youth aged 16 -29. The program was publicly financed comprehensive youth program so successful that similar models were customized in the region. If well-implemented and carefully for Argentina, Colombia, Dominican Republic, evaluated, AMAL could become a building block Panama, Peru, and Paraguay. Successful youth for a comprehensive reform of youth employment employment programs have some common programs in the region. elements. They (i) are directly linked to a previously identified internship; (ii) provide youth This note starts with an overview of international with both technical and life/soft skills; (iii) provide best practices for the design/implementation of practical experience; (iv) are flexible (classes are youth programs. In what follows, the note held during nights/weekends and offer different provides a brief description of youth programs in schedule alternatives) and (v) usually rely on Tunisia and mainly of the AMAL program, experimental techniques to monitor and evaluate highlighting some of its main challenges and the impact of the training program on participant opportunities. labor market outcomes. Youth Programs in Tunisia: Active Labor Market 1 Diego F. Angel-Urdinola, Sr. Economist, MNSSP and Rene Programs (ALMP) targeted to young unemployed Leon-Solano, E.T. Consultant, MNSHD individuals have long been at the core of Tunisian 2 SP Discussion Paper No 1005. Washington, D.C.: World Bank labor market policy. ALMPs were first launched in (July 2010) 1981 in response to employment challenges faced which differs in coaching intensity: those who by graduates from vocational training institutes. In want to become entrepreneurs and establish their 1987, paid internships were introduced to facilitate own businesses, those who have somewhat clear the job insertion among first-time job seekers. In professional goals and objectives, and those who 2004, ALMPs began to offer wage subsidies and lack a career path; (ii) vocational training, to exemptions from social security to employers as a prepare trainees for jobs that are based on manual way to encourage them to hire unemployed or practical activities, traditionally non-academic, university graduates. By 2009, the National Agency and related to a specific trade, occupation, or for Employment and Independent Work (ANETI), vocation. Training courses leverage existing Tunisia’s public employment office, managed over vocational programs and are adapted to regional 20 ALMPs, which were subsequently bundled into needs and are provided through the Tunisian six programs to facilitate their administrative and Agency of Vocational Training (ATFP) and/or financial management. Today, most programs private sector providers; (iii) life skills training, to consist of internships that provide beneficiaries build psycho-social and interpersonal skills which with a small monthly income-assistance allowance. can help youth make informed decisions, One of the main instruments to address high and communicate effectively, and develop coping and rising unemployment among educated first-time self-management abilities. AMAL beneficiaries job seekers is the “Stage d’Initiation a la Vie must take a three-day introductory course on life Professionnelle (SIVP), a program that provides skills and can enroll in additional modules at any beneficiaries with on-the-job training through a point in the program. Life-skills modules include: paid internship (150 TND monthly for 1 year), and critical thinking, interpersonal skills, decision- covers social security payment contributions and making, communication, leadership, team work, training costs (for up to 200 hours). In practice, problem solving, stress management, respect for however, the vocational training component of the oneself and others, and refusal techniques among program has been virtually absent and the others; iv) retraining, to help hard-to-employ program’s placement rates are rather low at 23% in youth to acquire a new set of skills that are in- 2010. In recent years, the government has also demand, and v) on-the-job training, to provide supported entrepreneurship by providing training, participants with an opportunity to acquire work coaching, and financing services to young experience while enabling employers to assess entrepreneurs.3 their performance at the workplace. The AMAL Program: In light of recent events (Jasmine Program Beneficiaries: Revolution), Tunisia's interim Government launched the AMAL (“hope� in Arabic) program (a) Eligibility. First-time job seekers with at least an in February 2011. AMAL is a comprehensive youth Associate’s Degree (equivalent to a tertiary employment program that seeks to revamp SIVP education degree) from an accredited institution by providing additional employment services to are eligible to enroll in the AMAL program. A first- unemployed university graduates for a maximum time job seeker, for the purposes of this program, is of 12 months. The program provides its defined as an individual without work experience beneficiaries with career coaching, training, as well and/or who has worked for less than twelve as with a monthly TND 200 stipend (equivalent to consecutive months since obtaining his/her US$150) to encourage them to actively search for a diploma. Individuals who have previously job. The Ministry of Vocational Training and benefited from a youth employment program (e.g. Employment (MoVTE) oversees AMAL, while SIVP) are also eligible to enroll in AMAL. In order ANETI, Tunisia’s public employment office, is in to remain eligible, beneficiaries must fill out an charge of its implementation. electronic form with detailed information regarding his or her monthly job search efforts on AMAL Program Components: AMAL has five main ANETI’s website and attend all coaching components: (i) coaching, to help young people sessions/training activities. Only three excused identify, develop, and meet their professional goals absences are permitted. and objectives. ANETI counselors classify beneficiaries in one of three categories, each of (b) Program Reach. More than 170,000 youth have enrolled in the program since its launching in February 2011. The Governorates with the largest 3 In 2009, the government piloted a program to provide coaching and start-ups for the best business plans developed by number of beneficiaries are Tunis, Sfax, Gafsa, university graduates (concurs de memoires). Nabeul, and Medenine. It is important to note that August 2011 · Number 88 · 2 four of these Governorates (Tunis, Sfax, Gafsa, and beneficiaries) obtained their university diploma Medenine) had the highest percentage of between 12 and 24 months prior to the launching registered unemployed university graduates prior of AMAL. As indicated from recent estimates from to the launching of AMAL. the 2009 Labor Force Survey (LFS), about one-third of all unemployed in Tunisia have been so for The introduction of AMAL raised significant more than 12 months. This finding indicates that expectations among potential beneficiaries. After AMAL is benefiting a significant share of first the program was launched, about 70 thousand new entrant university graduates who became long- youth registered in ANETI (representing an term unemployed (Figure 3). increase of 69% in registered unemployed) (Table 1).4 Kasserine and Bizerte were the two regions Table 1: Increase of Registered Unemployed University with the highest percentage increase in registered Graduates as a Result of AMAL by Governorate unemployment Kasserine has one the highest Governorate Registered ANETI 04/10 Registered AMAL 05/11 % Increase as a result of AMAL Kasserine 2023 7571 274.2% youth unemployment rates in the country and Bizerte 2630 6788 158.1% Bizerte is an important tourism and trade Tunis 8495 17351 104.2% Sfax 7281 14479 98.9% destination, which was quite affected by the Ariana 3540 7030 98.6% Jasmine Revolution. Achieving higher rates of Nabeul 5259 10033 90.8% registered unemployed (to total unemployed) is Manouba 3034 5590 84.2% Kebili 2225 4077 83.2% regarded as a positive outcome, since it is a proxy Sidi Bouzid 4551 8319 82.8% for the Government’s capacity to reach out to the Sousse 4753 8610 81.1% population in need of employment services. Monastir 5360 8514 58.8% Kairouan 4349 6898 58.6% Gafsa 6877 10420 51.5% Figure 2: Beneficiaries by Governorate and Gender Ben Arous 4956 7422 49.8% Tozeur 1315 1930 46.8% Beja 2751 4033 46.6% Gabes 5967 8662 45.2% Zaghouan 1011 1449 43.3% Kef 2933 4180 42.5% Mahdia 3641 5142 41.2% Medenine 6978 9481 35.9% Tataouine 2528 2926 15.7% Jendouba 5663 6313 11.5% Siliana 2731 2897 6.1% Total 100851 170115 68.6% Figure 3: Beneficiaries by Graduation Year (c) Gender Profile. Many feared that AMAL would entice inactive individuals (mainly women) and/or informal workers to benefit from the program. However, a closer look at the statistics contradicts this argument. Of the more than 170,000 AMAL beneficiaries, 68 percent are women and 22 percent are men (a feature that holds in all Governorates) (Figure 2). This gender breakdown is identical to that of registered unemployed university graduates prior to the launching of AMAL (67 percent women and 23 percent men as of February (e) Education Profile. The great majority (88 percent) 2010). Furthermore, about 62 percent of all SIVP of AMAL beneficiaries have degrees in Sciences, beneficiaries are women, thus providing additional Management & Law, and Humanities & Arts. This evidence that the gender distribution of AMAL resembles the educational background of versus other employment programs is similar. registered unemployed university graduates prior to the launching of AMAL (92 percent of all (d) Unemployment Profile. Approximately 77,000 registered unemployed have degrees in these three youth (about 45 percent of all program same specialties). It is important to note, however, that the largest portion of women beneficiaries (32 4 All AMAL beneficiaries must register in ANETI. percent) have a degree in Management & Law, August 2011 · Number 88 · 3 while the largest portion of men beneficiaries (46 fact, according to AMAL program managers, many percent) have a degree in Sciences (Figure 4). youth have quit SIVP in order to benefit from AMAL (which provides more benefits with similar eligibility requirements). Figure 4: AMAL Beneficiaries by Educational Background and Gender (c) Involvement of the Private Sector. Close coordination and strong partnerships with the private sector is a key factor for the success of AMAL, since it will be the main source for on-the- job training for program beneficiaries. Training and re-training will need to meet the demands of the private sector. (d) Sustainability. Finally, important concerns arise about the sustainability of AMAL. As is currently envisaged, AMAL will only last one year and its implementation costs are significant (about 1% of GDP in year 2011). Tunisia’s capacity – and that of Challenges: The success of AMAL and its impact on many Arab countries – to sustain such investment labor market outcomes among youth will depend remains questionable. on several factors: Conclusion: The introduction of comprehensive (a) Constraints on Labor Demand. The nature of youth programs, like AMAL, could constitute a unemployment in Tunisia, as in many countries in building block to address the current employment MENA, is structural and arises from important crisis in the Middle East, especially since youth constraints on labor demand. Programs like AMAL unemployment will continue to be one of the main address supply-side constraints (i.e. enhancing social issues in the region in the years to come. employability and facilitating labor While programs like AMAL do not substitute intermediation). In an environment where jobs are private investment, in-depth labor market reform, limited, the impact of the program may be and/or economic growth, they could constitute a undermined by stagnant employment creation. mechanism to foster social cohesion, provide temporary income support, encourage (b) Implementation. Much of the success of AMAL entrepreneurship among university graduates, and will depend on how the program is implemented. enhance employability and skills of the workforce. ANETI will need to improve its capacity to While AMAL faces challenges like any other delivere some employment services offered by program of its kind, it represents an opportunity AMAL, especially coaching and life-skills training for policymakers across the region to assess the The success of these components depends on effectiveness of this model in MENA and, if building the right partnerships with private successful, replicate it to address the employment providers and non-governmental organizations challenges afflicting unemployed university (NGOs) (which is a new concept in Tunisia, where graduates in the region. provision of employment services has traditionally been a monopoly of the State). AMAL requires Contact MNA K&L: interactions and close coordination across Director, MNACS: Emmanuel Mbi employment (e.g.: ANETI) and training agencies Regional Knowledge and Learning Team: (e.g.: ATFP). Omer Karasapan, Roby Fields, and Hafed Al-Ghwell Tel #: (202) 473 8177 In particular, these institutions will need to design MNA K&L Fast Briefs: formal mechanisms to efficiently exchange data http://go.worldbank.org/OXADZV71I0 and other program information. In Tunisia, as is the case in many countries in MENA, training and The MNA Fast Briefs are intended to summarize lessons learned from MNA and other Bank Knowledge employment agencies traditionally work and Learning activities. The briefs do not necessarily separately. Moreover, the interactions and division reflect the views of the World Bank, its board or its of responsibility between AMAL and other member countries. existing employment programs (such as the SIVP) should be better defined to avoid crowding-out. In August 2011 · Number 88 · 4