Report on the Skills for Trade and Economic Diversification (STED) Initiative

Overview of the STED Initiative

The Skills for Trade and Economic Diversification (STED) initiative, developed by the International Labour Organization (ILO), is a targeted technical assistance approach that emphasizes skills anticipation to promote economic growth and generate decent job opportunities. Launched as a pilot in 2010, STED initially concentrated on sectors with potential to boost exports and contribute to economic diversification.

Since its inception, STED has been implemented in over 70 sectors across more than 30 countries. This innovative approach empowers policymakers to collaborate effectively with the private sector, as well as employers’ and workers’ associations, to strategically address future skills demands.

Alignment with Sustainable Development Goals (SDGs)

• SDG 8: Decent Work and Economic Growth – STED fosters the creation of decent jobs by anticipating and developing the skills required for emerging economic sectors.
• SDG 9: Industry, Innovation, and Infrastructure – By supporting economic diversification and industrial development, STED contributes to building resilient infrastructure and promoting sustainable industrialization.
• SDG 4: Quality Education – The initiative enhances skills development systems, ensuring inclusive and equitable quality education and lifelong learning opportunities.
• SDG 17: Partnerships for the Goals – STED serves as a gateway for partnerships, enhancing collaboration among stakeholders to achieve sustainable development outcomes.

Objectives and Approach

1. Primary Goal: The main objective of a STED diagnosis is to identify skills strategies that enable economic sectors to effectively engage in tradable markets, thereby stimulating economic growth and diversification.
2. Sectoral Focus: The approach targets exporting sectors, sectors facing import competition, and domestic sectors supplying both export-oriented and import-competing industries.
3. Process-Oriented and Flexible: STED is designed as a practical and adaptable process that aligns skills development with broader policies including trade, economic diversification, and industrial development.
4. Capacity Building: The initiative fosters systemic change and strengthens capacity within skills development systems to meet evolving sectoral demands.

Strategic Impact and Partnerships

• STED enhances skills anticipation systems by integrating with other ILO initiatives focused on skills governance.
• It promotes strategic planning and collaboration among policymakers, private sector actors, and workers’ organizations.
• The programme plays a vital role in shaping a skilled workforce that meets the dynamic needs of targeted economic sectors.

Conclusion

The STED initiative represents a significant contribution to achieving multiple Sustainable Development Goals by aligning skills development with economic diversification and trade strategies. Through its collaborative and forward-looking approach, STED supports sustainable economic growth, decent employment, and inclusive industrial development worldwide.

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 8: Decent Work and Economic Growth – The article emphasizes creating decent job opportunities and fostering economic growth through skills development and economic diversification.
• SDG 4: Quality Education – The focus on skills anticipation and development aligns with ensuring inclusive and equitable quality education and promoting lifelong learning opportunities.
• SDG 9: Industry, Innovation, and Infrastructure – Economic diversification and industrial development mentioned in the article relate to building resilient infrastructure, promoting inclusive and sustainable industrialization, and fostering innovation.
• SDG 17: Partnerships for the Goals – The article highlights collaboration among policymakers, the private sector, employers’ and workers’ associations, and integration with other ILO initiatives, reflecting the importance of partnerships.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. SDG 8 Targets:
   • 8.3 Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation.
   • 8.5 Achieve full and productive employment and decent work for all women and men.
   • 8.6 Reduce the proportion of youth not in employment, education or training.
2. SDG 4 Targets:
   • 4.4 Increase the number of youth and adults who have relevant skills, including technical and vocational skills, for employment, decent jobs and entrepreneurship.
3. SDG 9 Targets:
   • 9.2 Promote inclusive and sustainable industrialization and, by 2030, significantly raise industry’s share of employment and gross domestic product.
   • 9.5 Enhance scientific research, upgrade the technological capabilities of industrial sectors.
4. SDG 17 Targets:
   • 17.17 Encourage and promote effective public, public-private and civil society partnerships.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• Employment and Decent Work Indicators:
  • Proportion of employed population in sectors targeted by STED.
  • Rates of youth employment and engagement in education or training.
  • Number of decent jobs created in export-oriented and diversified economic sectors.
• Skills Development Indicators:
  • Number of individuals acquiring relevant technical and vocational skills aligned with market demands.
  • Effectiveness of skills anticipation systems in predicting and meeting future skills needs.
• Economic Diversification and Industrial Development Indicators:
  • Growth in export volumes and diversification of economic sectors.
  • Increase in industrial sector employment and contribution to GDP.
• Partnership and Governance Indicators:
  • Number and quality of partnerships between policymakers, private sector, and workers’ associations.
  • Integration and collaboration levels among skills governance initiatives.

4. Table: SDGs, Targets and Indicators

Source: ilo.org