New Skills for New Jobs in the Western Balkans Sarajevo, 13 July 2012

1. New Skills for New Jobs in the Western Balkans Sarajevo, 13 July 2012

2. New Skills for New JobsSummary of discussions • Identify a development model, including long term goals and potential niches • Address the issue of skills and jobs in a coordinated manner among institutions in charge of labor and employment, education and economic/industrial/regional development + SD • RCC as platform for linking at regional level work done on education (LLL) and investment (SEEIC) • Current vs. future needs (VET and education based on skills forecast) • Workforce information system: reliable statistics and research for evidence based policy making (systematic review and evaluation)

3. Summary of discussions (2) • Establish a virtual space for sharing all information at national and regional level • Strengthen vocational education in technical areas and life long learning • Labor mobility can fill gaps (bilateral and regional agreements?) • Local labor markets and employment partnerships (+ clusters of local firms) • Internships • The role of media in awareness raising and promotion

4. Western Balkans 2020Social Agenda Priorities and Targets

5. Europe 2020: Three interlinked priorities 1.Smart growth: developing an economy based on knowledge and innovation 2.Sustainable growth: promoting a more efficient, greener and more competitive economy 3.Inclusive growth: fostering a high-employment economy delivering social and territorial cohesion

6. Europe 2020 headline targets additional suggestions

7. Europe 2020: Integrated Guidelines for National Reforms Programmes • Guideline 1: Ensuring the quality and the sustainability of public finances • Guideline 2: Addressing macroeconomic imbalances • Guideline 3: Reducing imbalances within the euro area • Guideline 4: Optimising support for R & D and innovation, strengthening the knowledge triangle and unleashing the potential of the digital economy • Guideline 5: Improving resource efficiency and reducing greenhouse gases • Guideline 6: Improving the business and consumer environment, and modernising and developing the industrial base • Guideline 7: Increasing labour market participation and reducing structural unemployment • Guideline 8: Developing a skilled workforce responding to labour market needs, promoting job quality and lifelong learning • Guideline 9: Improving the performance of education and training systems at all levels and increasing participation in tertiary education • Guideline 10: Promoting social inclusion and combating poverty

8. Europe 2020 “flagship initiatives” • Innovation Union • Youth on the move • Digital Agenda for Europe • Resource efficient Europe • Industrial policy for the globalization era • Agenda for new skills and jobs • European platform against poverty

9. SEE 2020 Vision SEE 2020 Vision adopted at the SEE Ministers of Economy Conference in November 2011: • Integrated growth to deepen regional trade and investment linkages • Smart growth – innovation and competition based on value-added rather than labour costs • Sustainable growth – private sector competitiveness, entrepreneurship, greener and energy-efficient development • Inclusive growth – skills development, employment creation & labour market participation by all • Governance for growth – improve capacity of public administrations to strengthen the rule of law and reduce corruption

10. Rationale for target setting • In light of the accession process, align with EU policies and strategies • Demonstrate commitment to address priority issues • Focus attention, resources and ensure greater accountability • Motivate stakeholders to achieve the stated objective • Create a regional momentum building on existing national priorities and strategies • Need to be relevant, attributable, well-defined, timely, reliable, comparable and verifiable

11. Set of possible targets • Sustainable growth • a. CO2 emissions • b. Renewable energy • c. Energy efficiency • d. Fossil fuel consumption • e. Entrepreneurship • f. Trade balance in goods as % of GDP iv. Inclusive growth • Employment • Female employment • Gender ratio of income • Poverty headcount / People at risk of poverty • Early leavers from school • Formal training • Youth employment • Gini co-efficient v. Governance for growth • Unofficial payments are frequent • Government debt as % of GDP • Rule of law • Regulatory quality • Integrated growth • Total value of trade in goods • Total value of trade in goods as % of GDP • Foreign direct investment net inflows • Foreign direct investment as % of GDP • Annual GDP growth • Standards and technical regulations • Smart growth • Business expenditure on R&D • Gross expenditure on R&D • Tertiary education attainment • GDP per person employed • High technology exports • Internet users • Software Piracy Rates • Participation in lifelong learning

12. SEE 2020 Strategy • Overall strategic goals: (i) Convergence of GDP per capita with the EU, (ii) Growth of total trade of goods and service, (iii) Improvement of overall trade balance; • Integrated growth: (iv) Growth of intra-regional trade in goods and services, (v) Growth of overall FDI inflows into the region; • Smart growth: (vi) Growth of GDP per person employed; • Sustainable growth: (vii) Growth of enterprise creation and (viii) Growth of export of goods and services per capita; • Inclusive growth: (ix) Growth of employment rate, (x) Growth of rate of population with tertiary degree; • Governance for growth: (xi) Government effectiveness composite index.

13. WB 2020 Social indicators CPESSEE

14. WB 2020 Social indicators CPESSEE

15. WB 2020 Social indicators CPESSEE

16. WB 2020 Social indicators WB

17. WB 2020 Social indicators WB

18. WB

19. WB

20. Employment • Youth • Female • Long Term • Older • Minorities • People with disabilities • Informal • Labor mobility

21. Poverty headcount ratio WB

22. Poverty and social exclusion • At risk of poverty rate – persons with equivalized disposable income below the risk of poverty threshold, which is set at 60% of the national median equivalized disposable income. • Index of material deprivation – experience of at least 4 out of 9 deprivation items (cannot afford to pay rent or utility bills, keep home warm, face unexpected expenses, eat meat or fish every second day, a week holiday away from home, car, washing machine, color TV, telephone. • Percentage of people living in households with very low work intensity – are those aged 0-59 living in hoseholds where the adults (18-59) work less than 20% of their total work potential during the past year.

23. Europe 2020 Governance • All national, regional and local authorities should implement the partnership, closely associating parliaments, as well as social partners and representatives of civil society contributing to the elaboration of national reform programs as well as to its implementation. By establishing a permanent dialogue between various levels of government, the priorities of the Union are brought closer to citizens, strengthening the ownership needed to deliver the Europe 2020 strategy.

24. WB 2020 Governance • Include all stakeholders for real ownership • Permanent consultations – key to ensuring success of reforms at national and regional level • Equal participation ensures greater engagement and contribution