The TREE Methodology Latest country adaptation Adaptation of Value Chain Analysis

1. Practical adaptation of Value Chain Analysis and Tools in the TREE Methodology

2. Contents of Presentation • The TREE Methodology • Latest country adaptation • Adaptation of Value Chain Analysis

3. The TREE Methodology TREE - Training for (Rural) Economic Empowerment International Labour Organization (ILO)

4. Tri-Dimensional Image of the Poverty Problem seen from the lens of TREE Low level of production SKILLSand entrepreneurial awareness Low level of local development Weak institutional support Under- privileged Groups in Rural & Urban Villages Absence/ lack of appropriate micro finance schemes & internal market SYSTEMS Weak/ absence of economic support STRUCTURESandservices Weak linkages with the formal sector

5. The TREE response and Intervention Strategy SKILLS Build capability to START economic activities thru skills training-cum- enterprise development and start-up tools and equipment Community and local development Institutional development of communities Under- privileged Groups in Rural & Urban Villages STRUCTURES SYSTEM Improve local capacity to support and EXPAND enterprise projects thru group organizing and linking with business & service organizations Develop local systems to SUSTAIN economic activities thru community owned & managed capital, & promoting internal market/ community enterprise linkages Strategic linkage with the formal sector

6. Evolution of Community-based Training in ILO • Extension of Formal Vocational Training • Rural Vocational Training • Outreach Training Programme • Mobile Training Programme • Emergence of Non-formal/ Rural Skills Training • Skills Development for Self-Reliance (SDSR) • Training for Rural Gainful Activities (TRUGA) • Community-based Training (CBT) • Expansion to People Empowerment & Community Development • Training for (Rural) Economic Empowerment (TREE) – started in Philippines & Pakistan adapted later in Sri Lanka, So. Pacific, etc.

7. The Place of TREE within the TVET System FORMAL TVET Non-Formal TVET Skills Training TREE Enterprise and Community Development

8. Brief Description & Characteristics • Concept - TREE is not a training programme, not a training project. It is a Methodology - a tool for identifying economic opportunities and training needs in order to develop and implement training programmes • Focus - specifically focused on disadvantaged social and economic sectors in marginalized communities that are not reached or served by the formal or non-formal training systems • Objective – to help reduce poverty in the countryside and minimize rural to urban migration by increasing income opportunities in the basic sectors in the rural informal economy • Approach - the methodology follows a convergent and systems approach of participatory needs assessment, training designing and delivery, and organizing post-training support mechanisms • Result of planning - tailor-made training proposals that can be delivered by training providers in the communities, vocational training centers, small enterprises and big industries • Tools and instruments - The assessment tools and instruments are simple, practical and designed to empower the target groups to use them with (initial) facilitation of local partners • Applicability - The methodology can be applied to local development programs or in the non-formal vocational training system of a country

9. Selection of Project sites is based on: • Labor market studies • Manpower requirement analysis • Market opportunities • Development programs and policies, etc. • But Selection of Local Projects is based on: • Rapid area and sectoral assessment • Participatory project planning techniques • Targeted survey instruments

10. Two Components of the Present TREE Methodology Skills Training and Enterprise Creation Component: Build the capabilities of the poor and underprivileged population to identify, prioritize, plan and implement self-employment or wage-employment training projects Community Economic Development Component: Build the capability of Communities or Target Groups to link to, or manage local support mechanisms to expand and sustain their economic projects Added component to become TREE Former CBT programmes

11. Stages/ Elements of the TREE Methodology Mobilization, organization, capability-building of Partners ECOTRAIN assessment, preparation of proposals Training designing, organizing & delivery Mainstreaming with LED programs & formal sectors Post-training activities & follow-up (Re) organizing target groups & communities Linking/ Installing credit & market mechanisms • Community/ TG identifies Self & Wage Employment (SE/WE) opportunities - Prepares training proposals - Training is delivered: SE trainees are provided with tools, trained to prepare Transition Enterprise Project (TEP) • SE Trainees implement TEP. WE trainees are employed in pre-identified industries, or as informal apprentices • Trainees plus other community members are (re) organized • Group trained on community enterprise system - provided with CORE Fund, operates enterprise projects • further skills upgrading, prepared for skills certification &/or sustain their enterprise Start Economic Activities Expand Sustain Project Performance Monitoring

12. Latest Adaptation of the TREE Methodology TVET Reform Project Bangladesh

13. Economic Opportunities and Training Needs Assessment Process (ECOTRAIN) Geographic/ Village & Target Group Approach • Local raw materials or products • Distinctive skills and crafts • Chain of local enterprises • Modern products & technologies • Natural resources • Infrastructures • Service Providers • Known consumer demands • Existing companies, enterprises • Development projects in the area Preparation of Training Proposals RCA – Rapid Community Appraisal PPP – Participatory Project Planning VCA-RTO – Value Chain Analysis of Rural Trades & Occupations TNA-ISO– Training Needs Assess-ment of Informal Sector Operators Local Coordinating Committee Meeting Feasibility Studies, Employment Pledge CDS – Consumer Demand Survey JOS – Job Opportunities Survey in SMEs Industry/ Trade Approach SJU – Survey of Jobs for UPG in big/large Co.

14. Links of ECOTRAIN results with types of Training Proposals • Local raw materials or products • Distinctive skills and crafts • Chain of local enterprises • Modern products & technologies • Natural resources • Infrastructures • Service Providers • Known consumer demands • Existing companies, Ent. • Development projects in area RCA – Rapid Community Appraisal Type A - Training Proposal for the establishment of New group enterprises PPP – Participatory Project Planning Type B - Training Proposal on Small Business Management for Informal Sector Operators (ISO) VCA-RTO – Value Chain Analysis of Rural Trades & Occupations TNA-ISO– Training Needs Assess-ment of Informal Sector Operators Type C - Training Proposal on Transition Enterprise Planning and Management Type D - Training Proposal for developing local chain of growing trades and occupations CDS – Consumer Demand Survey JOS – Job Opportunities Survey in SMEs SJU – Survey of Jobs for UPG in big/large Co. Type E - Training Proposal for Basic or Skills Upgrading Training

15. The Whole Planning Process Role of Lead Agencies ECOTRAIN Assessment Review/ Assessment, Approval of Training Proposals Designation & Contracting Training Provider/ Institution PPP – Participatory Project Planning Preparation of Training Proposals RCA – Rapid Community Appraisal Local raw materials or products Distinctive skills and crafts Chain of local enterprises Modern products & technologies Natural resources Infrastructures Service Providers Known consumer demands Existing companies, enterprises Development project in the area VCA-RTO – Value Chain Analysis of Rural Trades & Occupations TNA-ISO– Training Needs Assessment of Informal Sector Operators Local Coordinating Committee Meeting Feasibility Studies, Employment Pledge CDS – Consumer Demand Survey JOS – Job Opportunities Survey SJU – Survey jobs for UPG in BLC Training Providers (Ideally the same local partners/ facilitators) TTCs – if training proposals fall under BMET’s non-formal training programmes TSCs – if training proposals fall under DTE’s non-formal training programmes Private Training Centers or Industries – that the training proposals have specifically identified Local Government NGO Training Centers – if training proposals are to establish new enterprises within the villages for IPs, PWD, Women, Youth Small Informal Enterprises – if training proposals are for informal apprenticeship

16. Training Delivery Role of Training Providers/ Institutions Procurement of Training Inputs and materials (Tools, small equipment) Delivery of Training (Skills or together with enterprise development Post-training assistance (job placement or advisory to enterprise projects) Assigning of Trainers, Preparing training design/ syllabus Selection of Trainees (with Community/ Target Group) Monitoring, Tracer Studies - by Lead Agencies Community-based Enterprise System Development Component

17. (Proposed) Delivery System Announce a “Call for Submission of CB-TREE Training Proposals Lead Implementing Agencies (DTE, BMET, NILG) National Coordination Committee 3. Lead agencies review the proposals, provide budget allocation, assign training providers/ institutions Local level Coordinating Committees 2. Proponents submit proposals to local coordinating committee for development assessment 1. Economic Opportunities and Training Needs assessment, preparation of Training Proposals by community/ target groups with facilitators Community Partners/ Project Mobilizers 4. Training Projects are implemented by appropriate training providers/ institutions Target Communities/ Target Groups

18. Adaptation of Value Chain Analysis in the TREE Methodology

19. Firm-based Value Chain Model – Michael Porter SUPPORT ACTIVITIES Firm Infrastructure Human Resource Management Technology Development Procurement Seamless systems for business competitiveness Inbound Logistics Outbound Logistics Marketing and Sales Service Operations PRIMARY ACTIVITIES

20. Application of VCA in Training Needs Assessment Identify jobs & skills requirements, numbers needed to satisfy demand Identify jobs & skills requirements, number of workers needed Identify jobs & skills requirements, number of workers needed Identify jobs & skills requirements, number of workers needed Organize & Conduct comprehensive training program Inbound Logistics: raw materials business inputs Distribution, Placemen/ Middlewo/men, Wholesalers, etc. Processing/ Manufacturing/Service industry sectors Points of Sales Consumers Determine production materials that can be locally supplied; kind, volume, number of producers required, area of land needed, etc. Determine: kind of products, services, systems & procedures, technology, etc. Determine modes of transporting products, volumes, destinations, primary buyers Determine retailers: who, where, buyers, service areas, etc.

21. Application of VCA in employment generation through a local firm/ company (Anchor firm approach) Steps in the Economic Opportunities and Training Needs Analysis SS • Identify a firm or company operating in the community or nearby area (Anchor Firm) • Identify the products or services being manufactured or offered by the company • Identify and trace out the production/ service inputs being procured by the company • With the help of the company, determine which of them can be supplied locally by local residents • Get approval or cooperation of the company on a local procurement from the residents • Prepare training program design, secure funding and conduct training • Prepare to implement the local procurement agreement with the company PS PS ANCHOR FIRM/ COMPANY PS Market PS Scrap/ Discarded Materials Possible income-generating activities derived from this approach: Supply of production materials, small tools, furniture, fixture, transport, uniforms and foods for workers, free acquisition of scrap or discarded production materials, etc. Primary Suppliers Secondary Suppliers

22. Tinalak Weaving (Lake Sebu, South Cotabato, Philippines) Traditional system Pre-processing of raw materials and weaving Big firms make finished products from the Tinalak mat Product makers sells to Whole-salers Planting of Abaca Big Middlewo/men buy the Tinalak Mats Retailers/ Buyers Distribution to Whole-salers Retailers/ Buyers Members make finished products from the Tinalak mat Pre-processing of raw materials and weaving Group put up common marketing facility Planting of Abaca Retailers/ Buyers Organizing the materials suppliers, weavers Training of some members in making finished products from the tinalak Training of some members in entrepreneurship & business management Area of intervention

23. General System in Poultry Raising Supply of Feeds Industry processors, Restaurants, etc. Raising the Chickens Farm-gate Buyers Consumers Supply of Chicks Meat Processing Product Marketing Buyers/ Consumers Organize families, train in skill in home-based poultry raising Organize and train groups in commercial meat processing and business management Assign, train and provide capital to some families to distribute/ market the products Areas of Intervention Goal: Create additional income, employment, local economic development

24. VCA applied to Youth Project in Cassava Paste/ Flour Making: Western Samoa, South Pacific Existing group operation Cassava planting, supply by members provided without cost Product Placement in their small grocery store Buyers/ Consumers Processing, packaging Organizing the enterprise elements of supply inputs and processing, training in costing and marketing Training in Internet advertising and selling, market expansion through other stores in the urban center: Apia YEP Project intervention

25. Native trinkets (tsurba-tsurba) industry Traditional system Local buyers/ tourists Mall Buyers Malls/ Boutiques Material suppliers Trinket makers City-based Middlemen/women Organize the trinket makers and material suppliers Assign/ train wholesale buyer among the members Assign/ train forwarder among the group Areas of Intervention

26. Post-tsunami CB-TREE Project General Strategy: Ampara, Sri Lanka Adaptation of the TREE Methodology Organizing communities and group/ job placement assistance Community Planning, identification of economic opportunities Skills training and enterprise development Employment/ Self-employment Organizing federations of community members and group enterprises Providing micro finance through Co-Fund Scheme NGO-operated common market facility Project Additional Intervention

27. Critical Elements: • Community-centered planning • People-oriented project designing • Product/ service-oriented skills training • Practical enterprise creation training • Community-based enterprise system organizing • Community/ member-based micro-finance support • Local economic support mechanisms