HUMAN RESOURCES DEVELOPMENT AND ITS LINKS TO THE …€¦ · GEOGRAPHY, DEMOGRAPHY AND POLITICS...

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HUMAN RESOURCES DEVELOPMENT AND ITS LINKS TO THE LABOUR MARKET IN THE WEST BANK AND GAZA STRIP

Transcript of HUMAN RESOURCES DEVELOPMENT AND ITS LINKS TO THE …€¦ · GEOGRAPHY, DEMOGRAPHY AND POLITICS...

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HUMAN RESOURCESDEVELOPMENT AND ITSLINKS TO THE LABOURMARKET IN THE WEST BANKAND GAZA STRIP

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THE EUROPEAN TRAINING FOUNDATION IS THEEUROPEAN UNION’S CENTRE OF EXPERTISESUPPORTING VOCATIONAL EDUCATION AND TRAININGREFORM IN THIRD COUNTRIES IN THE CONTEXT OFTHE EU EXTERNAL RELATIONS PROGRAMMES

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HUMAN RESOURCESDEVELOPMENT AND ITSLINKS TO THE LABOURMARKET IN THE WEST BANKAND GAZA STRIP

Prepared by Mazen Hashweh (Palestinian expert) with support from Ronald G. Sultana (University of

Malta) and Karl-Axel Skjølstrup (ETF)

European Training Foundation

2006

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PREFACE

This report is one of a series produced bythe European Training Foundation on thestate of play of human resourcesdevelopment (HRD) in general andvocational education and training systemsin particular, in the countries of theMediterranean region.

OBJECTIVES, SCOPE ANDLIMITS OF THE EXERCISE

The aim of the project was to draw a clearpicture of the latest developments in thenational HRD system in the West Bank andGaza Strip and to highlight the main issuesand challenges that should be addressed.Specifically, the project aimed to draft acomprehensive report on HRD in the WestBank and Gaza Strip. HRD policies andsystems cover, among others, education,higher education, initial and continuingtechnical and vocational education andtraining (TVET), and training foremployment.

In the context of the objectives provided forin the Barcelona Declaration and theEuropean Neighbourhood Policy, the reportenables the identification of the mainchallenges and priorities for assistance inreforming the HRD system and in particularthe TVET system in the West Bank andGaza Strip, with a view to discussing themwith national authorities.

The main limiting factor of the exercise wasthat the time allocated for drafting a reportcovering the whole spectrum of HRD wasnot enough. Also, the format and size ofthe report were predetermined in order toconform to similar reports from othercountries, which led occasionally to someissues being addressed only superficially.

The report focuses intentionally on TVETmore than on other components of theHRD system. The quantitative dimensionsof these other components are addressed,but little qualitative analysis is undertaken.

METHODOLOGY

The report was drawn by a Palestinianexpert supported by a European Unionexpert, between July and September 2005.It was based on desk research and fieldvisits to the main actors, such as socialpartners, public authorities, non-governmental organisations (NGOs) andUN agencies, enterprises, public andprivate providers, and donors.

The process was participatory and themost relevant stakeholders were consulted.A national workshop was held to presentthe main findings and to gather basicfeedback on the draft.

ACKNOWLEDGEMENTS

Acknowledgements are due to allinterviewees throughout the country,whose feedback and views helpedtremendously in shaping this report (seelist of people interviewed in annex 1).Thanks are also due to all those whoprovided valuable feedback, thus allowingfor the production of the report in its currentform.

Specifically, special thanks are due to GabiBaramki, Khalil Nakhleh, MohammadGhadia, Mohammad Malki, Randa Hilal,Salah Al Zaroo, Sami Khader, TafeedahJirbawi and Ziad Jweiles for their feedbackand constructive comments.

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CONTENTS

PREFACE 3

EXECUTIVE SUMMARY 7

1. CURRENT SITUATION AND TRENDS IN HUMAN RESOURCES DEVELOPMENTAND THE LABOUR MARKET 13

1.1 Economic context 14

1.2 Political and social context 17

1.3 Key features of the labour maket 19

1.4 Summary 25

2. STRUCTURE OF THE HUMAN RESOURCES DEVELOPMENT SYSTEM 27

2.1 Formal school education 28

2.2 Higher education 30

2.3 Non-formal education and training 36

2.4 TVET in the context of human resources development 39

3. RECENT HUMAN RESOURCES DEVELOPMENT REFORMS 43

3.1 TVET reform 43

3.2 Social partners 46

3.3 Progress and next steps 48

4. INSTITUTIONAL CAPACITY, AND PLANNING, MONITORING ANDEVALUATION RESOURCES 51

5. SUMMARY OF KEY FINDINGS 53

ANNEXES 55

Annex 1: List of people interviewed 55

Annex 2: National system-level interventions 56

Annex 3: Human resources development and investment 58

Annex 4: Basic labour statistics 59

ACRONYMS 61

REFERENCES 63

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EXECUTIVE SUMMARY

GEOGRAPHY, DEMOGRAPHYAND POLITICS

Palestine lies on the western edge of theAsian continent and the eastern extremityof the Mediterranean Sea. The West Bank(WB) and the Gaza Strip (GS) have anarea of 6,020 km2. Following the August2005 disengagement, the Gaza Strip hascome under complete Palestinian rule. TheWest Bank on the other hand is dividedinto three zones: Area A (17.2% of WB),where the Palestinian Authority (PA) hassole jurisdiction and security control;Area B (23.8% of WB), where the PA hascivil authority and responsibility for publicorder only; and Area C (59% of WB), whichremains totally under Israeli occupation.Despite the ongoing occupation, thesystem of rule within the occupiedPalestinian Territories (oPT) is ademocratic one based on political andparty pluralism.

The estimated number of Palestinians inthe West Bank (including Jerusalem) andGaza Strip at the end of 2005 was3,762,005, of whom 63% lived in the WestBank and 37% in the Gaza Strip. In 2004,56.4% of the population lived in rural areas,24.6% in urban areas, and 15.1% in thevarious refugee camps. Also in 2004,46.1% of the population (44.3% in WB,49.2% in GS) were less than 15 years ofage, while only 3.1% were 65 years of ageand above. The average population growthrate for the year 2005 in the oPT isestimated at 3.3%. Immigration is limited,but many people think of emigration underthe prevailing circumstances.

The Oslo agreement envisaged a five-yeartransition plan leading to a final settlement.The lack of adequate progress towardssuch a settlement led to the second intifadain September 2000 and the resumption ofmilitary and civil confrontation between thePalestinians and the Israelis. Two mainpolitical developments took place duringthe second half of 2005: thedisengagement from the Gaza Strip, andthe erection of the separation wall byIsrael. The disengagement from the GazaStrip is a step in the right direction towardsestablishing peace between Palestiniansand Israelis, but economic developmentwill not take place unless Palestinians canmove freely and have control over theirborders. The wall, on the other hand, hasserious negative effects on the economy,access to basic services, and the HRDsystem.

ECONOMIC DEVELOPMENT

The Palestinian economy and the PA havebeen faced over the past ten years with anumber of challenges: providing adequateeducation, housing, health care, andemployment opportunities for a young andfast-growing population; building aPalestinian public administration, wherenone existed prior to 1994, which candeliver those services; and undertakingthese tasks while still under occupation andthe severe restrictions it imposes in anunstable and unpredictable political,economic, and social environment.Economic crises followed the imposition oftight closures1 in 2000 by Israel in theaftermath of the start of the intifada.

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1 A multi-faceted system of restrictions on the movement of Palestinian people and goods, including theSeparation Barrier, which the government of Israel argues is essential to protect Israelis in Israel and in thesettlements.

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Between 2000 and 2002, Palestinianexports and imports contracted by a third,and investment fell by 90%. The economiccollapse has led to a 35% reduction in percapita income since the second intifadabegan, and an increase in averageunemployment by some 16%. In 2005,around half of the population was poor, andmore than a quarter of the labour force wasunemployed.

Unemployment in the West Bank and GazaStrip is mainly demand-deficientdisequilibrium associated with economicrecession. Economic scenario forecasts donot predict that it will bottom out in thecoming few years. Growth in the labourforce leading to unemployment is gradualand slow but still poses a major challengegiven the current high fertility rates.Structural unemployment, due mainly to thefluctuation in economic sectors such asconstruction that are highly dependent onwork in Israel, poses another challenge. Thegrowth of the service and IT sectors is likelyto require people with different qualificationsfrom those currently found in the labourforce. The move to an export-orientedeconomy is only possible with a majorchange in the political setting, which is veryhard to predict. Job creation and povertyalleviation policies have played an importantrole in recent years but have failed toproduce tangible and sustainable effects.

LABOUR MARKETSTRUCTURE

A total of 528,000 people (66.8% of thelabour force) were employed in 2004. Theparticipation of women in the labour forcereached only 13.5% in 2004, whichconstitutes one of the lowest female labourforce participation rates in the world. Theoverall labour force is distributed amongthe following economic activities: 15.9% inagriculture, hunting, and fishing; 12.7% inmining, quarrying and manufacturing;11.7% in construction; 19.4% in commerce,hotels and restaurants; 5.4% intransportation, storage, andcommunications; and 34.9% in servicesand other branches.

The sectoral composition of the Palestinianeconomy was fairly stable throughout thesecond half of the 1990s, with a fewexceptions. The financial sector grew veryrapidly in 1994. The contribution offinancial intermediation to GDP increasedfrom 1.1% to 4.4% between 1994 and2000. The transportation andcommunication sector also gained inimportance and doubled its share of GDPfrom 4.4% to 8.7% during the same time.The shares of agriculture, manufacturing,and trade declined, while the contributionof construction was cyclic.

Some 66% of employed people in the oPTwork in the private sector, 24% areemployed in the public sector, and lessthan 10% work in Israel and thesettlements. Small and medium-sizedenterprises (SMEs) constitute the majorityof the establishments in the oPT: in 2004,91% of the establishments employed 0–4employees, 6% employed 5–9 employees,and only 0.2% employed over 50employees. Around 57% of theseestablishments were in the wholesale,retail trade and repair sector, and around14% were in the manufacturing sector. Thepotential for private investment and jobcreation in the export-oriented sector islimited in the current environment of Israelirestrictions at border crossings. The ITsector has shown, and can continue toshow, growth even under the currentconditions. Sectors that cater to localdemand currently have stronger potentialfor growth and job creation thanexport-oriented sectors. These sectorsinclude agriculture, construction, foodprocessing, and the pharmaceuticalindustry. The public sector expanded fromemploying 57,000 people in 1995 to over130,000 in 2003. The number ofPalestinians working in Israel fell from146,000 in the third quarter of 2000 toaround 50,000 in 2004. There are notimeline surveys showing the trends in theinformal economy. However, the sense isthat the informal economy has beengrowing in the past few years, as can beseen from the mushrooming numbers ofvendors near checkpoints and the growthof the unregulated transportation sector.

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IMPORTANCE OF HRD

Human resources are the means, as wellas the purpose of development and growth;and the healthy socio-economic growth ofsocieties depends, to a great extent, on theeffectiveness of their HRD systems, ofwhich technical and vocational educationand training (TVET) constitutes a majorcomponent. Nevertheless, and despiteuniversal recognition of its strategicimportance, HRD does not always appearin the forefront of national priorities,especially in countries with limitedresources, which are continually confrontedwith the difficulties of defining their longand short-term priorities in their nationalplans for socio-economic development. Insuch plans, it is frequently felt that quickand direct returns and benefits are needed,and that investment in HRD does not leadto quick returns.

Over a third of the Palestinian population isactive in the HRD system as students,trainees, teachers, and other staff. Despitethe grave challenges they are facing, thePalestinians still place great importance onHRD and education and training. Theliteracy rate in 2004 stood at 92.3%. In2005, education was receiving 16% of thetotal national budget, one of the highestpercentages in the world.

STRUCTURE OF THE HRDSYSTEM

The HRD system in the oPT is composedof the following levels.

Formal school education

Encompasses two years of preschoolkindergarten, ten years of compulsory basiceducation, and two years of academic orvocational secondary education. There areover 1,100,000 students studying in around2,200 schools. The net enrolment in basicschooling is as high as 89.0%.

Higher education

Encompasses colleges, university colleges,and open and traditional universities. Thereare 43 higher education institutions in the

oPT, with over 138,000 students. Over16,000 students graduated from highereducation institutions in the year 2004/05.The gross enrolment rate in tertiaryeducation grew from 10.2% in 1995 toalmost 17% in 1999. Tertiary educationfaces challenges related to financialsustainability, efficiency, relevance andquality of supply, and inequitabledistribution of student aid programmes.

Non-formal education and training

Plays an important role in the HRD system,and is characterised by the variety ofparties offering it, the difference in durationof the courses provided, and the differingvalues and degrees of recognition of thecertificates awarded. Non-formal educationand training encompasses basic vocationaltraining for youth, rehabilitation trainingalso for young people, and adult furthertraining and retraining.

HRD STRATEGIES

In general, HRD systems and strategies inthe oPT are influenced by the followingfactors:

1. a highly unstable and unpredictablepolitical environment, which greatlyaffects access to work and services, aswell as the whole education system;

2. economic gloom, with Palestinians notin control of the factors causing it. Theprivate sector, which drives economicgrowth, has been hit hard but is stillresilient. Its participation in HRD is,however, quite limited. The economy isnot able to generate new workopportunities for the fast-growingnumber of annual entrants to the labourforce under the prevailingcircumstances. The public andnon-formal sectors have grown tosaturation over the past few years. Allthis puts a heavy burden on the HRDsystem;

3. unemployment, poverty, decline in allhealth and education indicators, and theprioritisation of humanitarian andemergency programming rather thanlong-term development programming,where HRD would play a pivotal role.

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EXECUTIVE SUMMARY

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Although TVET is a main pillar in thePalestinian development priorities as statedin the Medium-Term Development Plan, thisis not really adequately reflected either inbudgets or in terms of willingness to take thenecessary steps to implement the TVETnational strategy. This is not acceptable,particularly since the future of Palestinianeconomic development lies in moving froman economy based on exporting labour toIsrael to an economy exporting goods andservices to Israel and the rest of the world.This requires a high-quality labour force thatis able to compete, and that can only bedeveloped and maintained through awell-developed TVET system.

CHARACTERISTICS OF THETVET SYSTEM

TVET may be defined as the systemproviding training aimed at meeting thefollowing objectives:

1. to train new employees needed for thevarious economic sectors as a result ofyearly substitution through oldage/sickness, economic growthrequiring new employees, and newtechnologies requiring new kinds ofemployee;

2. to provide further training and retrainingfor existing employees, so as toincrease productivity and to change oradapt technology or work structures;

3. to train persons for self-employment;4. to a much lesser degree, to enable

individuals to develop their hobbies,maintain good health and spirits,become active citizens, and acquirevarious life skills.

The current TVET system caters foraround 10,000 people in basic trainingannually, and around 25,000 people incontinuing training. The percentage ofstudents enrolled in formal vocationalsecondary education is only 4.9% of thetotal number of secondary schoolstudents.

Although it is quite small, the systemsuffers from fragmentation and from amultiplicity of providers. It is not based on aclear qualification structure, and certificatesdo not all have the same value.

The TVET system still attracts only lowachievers and caters for the low end of thetraining needs for business and industry. Itis still considered a second-best type ofeducation. This is partially due to its beingclose-ended, with few linkages to othertypes of education, and to the relatively lowquality of the training on offer.

Issues that need addressing include:

� professionalisation of teacher training;� coming up with adequate and realistic

financing mechanisms;� providing adequate support services;� facilitating better and more realistic

participation of social partners;� enhancing the institutional capacity and

resources to design, plan, monitor, andevaluate HRD strategies and policies;

� improving the quality, attractiveness,and utilisation of the system.

Major efforts at TVET reform have beenmade since 1997. Implementation of thereform was slow and has just recentlypicked up speed. Delay was due to acombination of reasons including capacity,will, and external factors.

There are three factors that have weighedheavily on the development of the TVETsystem and are expected to continue to doso: high unemployment, limited growth ofnew work opportunities, and high labourforce growth. Additional factors that limit thepossibilities of the system’s expansion are:

� limited potential for expanding theschool-based TVET system;

� limited potential for initiating andexpanding apprenticeship programmes;

� the need to attract a target group,especially in view of competition withthe socially more ‘attractive’ openuniversities.

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HRD PRIORITIES

Based on the situation outlined above,priorities in HRD should be focused on thefollowing:

1. facilitating the creation of efficient,professional, empowered, andwell-funded TVET governing bodies;

2. raising the attractiveness of TVET tostudents as well as to social partners;

3. increasing the opportunities to take upcontinuing vocational training;

4. ensuring that TVET clearly addressessocial exclusion;

5. supporting innovation.

PROPOSED INTERVENTIONS

Donors have been heavily involved in theTVET sector. One way to consolidate theirefforts and promote the nationalPalestinian agenda on TVET is throughsupporting three main projects, namely:

1. setting up the TVET Planning andDevelopment Centre;

2. setting up a TVET Training Fund tosupport innovative pilot projects andideas;

3. supporting the development of aNational Palestinian HRD strategy.

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EXECUTIVE SUMMARY

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1. CURRENT SITUATION ANDTRENDS IN HUMANRESOURCES DEVELOPMENTAND THE LABOUR MARKET

Palestine lies on the western edge of theAsian continent and the eastern extremityof the Mediterranean Sea. It has beensubject to a variety of controlling andoccupying powers during the last century.Following the end of the Ottoman rule in1917, the British mandate lasted until the1948 war, when the West Bank becamepart of Jordan and the Gaza Strip cameunder Egyptian rule. Although the UNpartition plan adopted on 29 November1947 called for the establishment of twostates, Palestine and Israel, only the stateof Israel was actually established.

Israel occupied the West Bank and GazaStrip in 1967 and annexed East Jerusalem.The Oslo agreement, signed on13 September 1993 between thePalestinians and the Israelis, divided theWest Bank into three zones: Area A(17.2% of WB), where the PalestinianAuthority (PA) had sole jurisdiction and

security control; Area B (23.8% of WB),where the PA had civil authority andresponsibility for public order only; andArea C (59% of WB), which remainedtotally under Israeli occupation. The WestBank and Gaza Strip remains occupiedterritory under international law.

The Oslo agreement envisaged a five-yeartransition plan leading to a final settlement.According to international law, thissettlement consists of establishing aPalestinian state on the 1967 borders. Thelack of adequate progress towards such asettlement led to the second intifada, whichbegan on 29 September 2000, and to theresumption of military and civil confrontationbetween the Palestinians and the Israelis.

The West Bank and the Gaza Strip formaround 22% of historical Palestine, andhave an area of 6,020 km2 (5,655 km2 WB,365 km2 GS)2.

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1

2 PCBS, Land Use Statistics

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Despite the ongoing occupation, thesystem of rule in the oPT is a democraticone, based on political and party pluralism.The president of the PA and the membersof the Palestinian Legislative Council aredirectly elected by the people.

The government is responsible before thepresident and the Palestinian LegislativeCouncil. Since the Council elections in1996, the development of a legalinfrastructure and judicial system has beena priority. Laws have been passed, and theBasic Law serving as the basis for aconstitution came into force in 2002.

1.1 ECONOMIC CONTEXT

The Palestinian economy and the PA havebeen faced over the past ten years with anumber of challenges: providing adequateeducation, housing, health care, andemployment opportunities for a young andfast-growing population; building aPalestinian public administration, wherenone existed before 1994, which candeliver those services; and undertaking

these tasks while still under occupation andthe severe restrictions it imposes in a veryunstable and unpredictable political,economic, and social environment.

Despite these challenges, the Palestinianeconomy has proved to be more resilientthan expected. Before the 1994–99intifada, the economy was growing at aremarkable rate and was able to generatejobs and increase the standard of living forits rapidly growing population. With theonset of the intifada, the Palestinianeconomy went into a steep decline, but itdid not collapse. The decline was large byany standard but, given the extraordinarycircumstances, the economy provedsurprisingly resilient. By early 2003, therewere already signs that the downwardtrend had been stopped and that theeconomy was beginning to stabilise3.

Economic development

Economic development was, and still is,very closely connected to the protocol oneconomic relations signed in Paris on29 April 1994 between the Palestinians and

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Figure 1: The West Bank and Gaza Strip

Mediterranean Sea

Jordan

Israel

Eg

yp

tWEST BANK

GAZA STRIP

Bethlehem

Hebron

Janin

Jericho

Gaza

Rafah

Dayral Balah

Ram Allah

3 This analysis is based on IMF, Economic performance and reform under conflict conditions, September 2003.

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Israel. This protocol resulted in theformalisation of partial integration intoIsraeli economy through a one-sidedcustoms union. The Palestinian economicdependency on Israel arises from severalsources. First, the Israeli labour market hasbeen, and will continue to be, a veryimportant source of employment andincome for many Palestinians. Second,Israel is by far the most important tradingpartner for the West Bank and Gaza Strip;Israel accounts for more than 90% ofPalestinian exports. Third, Israel collectstaxes on behalf of the PA, which normallymake up two-thirds of the total PArevenues4.

Economic crises followed the imposition oftight closures in 2000 by Israel in theaftermath of the start of the intifada.Between 2000 and 2002, Palestinianexports and imports contracted by a third,and investment fell by 90%. The economiccollapse has led to a 35% reduction in percapita income since the second intifadabegan, and an increase in averageunemployment by some 16%. Economicdevelopment has been affected by thesubstantial increase in transportation costsin the oPT since 2001, in particular in theWest Bank, where transportation costsrose by 13.9% in 2001, 21.9% in 2002, and7.3% in 2003. As a result of the physical

segmentation of the oPT, trade betweenthe West Bank and the Gaza Strip hasbeen severely curtailed and certainindustries have experienced a steepdecline in output and employment5.

The Palestinian economy has graduallyadjusted to the heavy restrictions onmovement imposed by Israel. ManyPalestinians have stopped trying to returnto jobs in Israel or to reach marketselsewhere in the West Bank. Smaller, lessprofitable businesses have beenestablished in response to closures, toserve communities that are no longer ableto travel to urban centres.

As figure 2 shows, all macroeconomicindicators have declined since 1999.

The cumulative impacts 1999–2004 are asfollows:

� real GDP: –20.9%� real GNI: –26.7%� real GDP per capita: –37.6%� real GNI per capita: –42.2%.

Economic scenarios for the coming yearsare not very optimistic (World Bank,2004a). Even in the best-case scenario,the poverty rate will still remain as high as37% as shown in table 1. All scenarios

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1. CURRENT SITUATION AND TRENDS IN HUMAN RESOURCES DEVELOPMENTAND THE LABOUR MARKET

Figure 2: Macroeconomic indicators

Source: IMF staff estimate, based on PCBS data

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

1999 2000 2001 2002 2003 2004YearU

S$

Real GDP in $million Real GNI in $million

Real GDP per capita Real GNI per capita

4 Ibid.

5 Based on the Medium-Term Development Plan, which relies in this on the World Bank, Four years – Intifada,

closures, and Palestinian economic crises: An assessment, 2004.

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assume that labour flows to Israel are ingradual decline. Scenarios 1, 2 and 3assume a donor contribution of US$2.8billion over three years. Scenario 4assumes a donor contribution of US$4.3billion over three years.

Role of the private sector

Figures for 2004 from the PalestinianCentral Bureau of Statistics (PCBS) showthat the total number of establishments inoperation in the private sector, the NGOsector, and government companies was97,279. SMEs constitute the majority of theestablishments in the oPT. In 2004, 91% ofthe establishments employed 0–4employees, 6% employed 5–9 employees.Only 0.2% employed over 50 employees.Around 57% of these establishments werein the wholesale, retail trade, and repairsector, and around 14% were in themanufacturing sector.

Whereas SMEs play a pivotal role in thePalestinian economy, there is an evidentlack of clear policies, programmes, andlegislation to enhance the role of theseenterprises (FPCCIA and ILO, 2001). Thesupporting services provided to theseenterprises from the various public andprivate institutions are very limited.

A World Bank assessment published inMarch 2003 showed that the second year ofthe intifada witnessed a further deep decline

in all Palestinian economic indicators. Thedomestic private sector absorbed much ofthe shock to the economy. Well over 50% ofthe pre-intifada private workforce had beenlaid off. Private agricultural and commercialassets had suffered over 50% of all thephysical damage caused. Bank credit to theprivate sector was drying up, while the PAowed private suppliers about US$370million in unpaid bills. In addition, directdonor assistance to private firms wasnegligible, despite a consensus that theprivate sector must drive any economicrecovery. In 1997 the private sectoremployed 66% of all employed people; thatpercentage fell to 59% in 1999 and roseagain to 66% in 2003.

The potential for private investment and jobcreation in the export-oriented sector islimited in the current environment of Israelirestrictions at border crossings. The ITsector has shown and can continue toshow growth even under these conditions.Sectors that cater to local demand havestronger potential for growth and jobcreation than export-oriented sectors.These sectors include agriculture,construction, food processing, and thepharmaceutical industry.

Exports from some of the larger companiesin the West Bank and Gaza Strip have heldup quite well, reflecting their ability to findtheir way through the various checkpointsand get their goods to Israel and other third

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Table 1: Economic scenarios

ScenarioGDP

($ million)

GDP per

capita ($)

GNI per

capita ($)

Unemploy-

ment rate

(%)

Poverty

rate (%)

Gaza

poverty

rate (%)

End 2003 3,144 925 1,467 26 47

Projected outcomes by 2006

1. Status quo 3,401 866 1,221 35 56 72

2. Disengagement 3,422 871 1,227 34 56 72

3. Disengagement +lifting internal WBclosures and openingborders

N/a 1,068 1,424 23 46 64

4. Disengagement +lifting internal WBclosures and openingborders + extra $1.5billion from donorsover the 2004–06period

N/a 1,250 1,758 14 37 53

Source: http://www.arij.org/

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markets abroad. Less well-connectedmedium-sized companies have faredrelatively poorly. Small producers workingwithin the confines of a given set ofcheckpoints were less badly affected.

National development agenda

The Medium-Term Development Plan2005–07, developed by the PalestinianMinistry of Planning, is considered themain official national development plan inthe oPT. The PA identifies two overarchinggoals in this plan:

1. to address poverty in a sustainable way,by providing a framework to shift PAand donor assistance from emergencyrelief to job creation, recovery, andsocial and economic development,particularly focusing on engagingwomen in this process;

2. to improve the effectiveness of PAgovernance by building institutionalcapacity and accelerating reform. TheMedium-Term Development Plan willalso enhance PA accountability byproviding clear and gender-sensitivedevelopment objectives, which aremonitored throughout theimplementation period.

In pursuit of the overarching goals theMinistry of Planning, working closely withother PA ministries, has identified fournational programmes for the period2005–07. These programmes, givingparticular attention to women’sempowerment and gender mainstreaming,are designed to:

� ensure social protection;� invest in social, human and physical

capital;� invest in institutions of good governance;� create an environment for private sector

growth.

1.2 POLITICAL AND SOCIALCONTEXT

The Roadmap accepted by the PA and thegovernment of Israel in June 2003envisaged the establishment of a sovereignPalestinian state by 2005. Israel in the

meantime had embarked on two mainpolitical steps, namely the erection of theseparation barrier, and the disengagementfrom the Gaza Strip. The separation barrier(also referred to as a wall or fence), ruledillegal by the International Court of Justicein July 2004, is a combination ofeight-metre-high concrete wall, trenches,fences, razor wire and military-only roads.Once completed, the wall will be 832 km inlength, will confiscate de facto 47.6% of theWest Bank land, will entrap 89.5% of thePalestinians, and will separate 329,000Palestinians from their land.

The World Bank warned that as aconsequence of the wall, the interruption ofaccess to roads, water, agricultural lands,urban markets, and public services,combined with the reduction of productiveagricultural lands, will result in the exodusof farming communities along the wall andwill place a heavy and permanent burdenon the economy of the West Bank. Theeffects of the wall on education areparticularly worrying. PCBS statistics haveshown that 3.4% of the individuals in thelocalities affected by the wall left educationas a result of the security situation and thewall (PCBS, 2004). Other studies showedthat many students and teachers areprevented from reaching their schools(MEHE, 2004). The impacts on schoolsinclude the following.

� The absence of teachers and theinability to provide substitute teacherscause the students to leave schoolearlier.

� The disruption usually makes itimpossible to complete curricularassignments for the year.

� Extra-curricular informal activities suchas after-school sports, field trips, andsummer camps are cancelled.

� There is a sharp decline in theorganisation and coordination betweenschools and district offices.

It is estimated that 170,000 students in 320schools will be negatively affected by theconstruction of the separation wall (BirZeitUniversity, 2005).

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1. CURRENT SITUATION AND TRENDS IN HUMAN RESOURCES DEVELOPMENTAND THE LABOUR MARKET

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The unilateral disengagement planconcerns 21 settlements (17 in GS, four innorthern WB). James Wolfensohn, formerpresident of the World Bank, warned inJuly 2004 that it is the underlying causes ofeconomic decline that need to beaddressed (World Bank, 2004b). Forrecovery to take place Israel needs to rollback the system of restrictions on themovement of people and goods imposedsince the beginning of the intifada – it isthese various closure measures that arethe proximate cause of four years ofPalestinian economic distress.

Social indicators have declined greatly inthe past few years. High poverty,unemployment, and serious declines inhealthcare and education services are justsome examples of the deterioratingindicators.

Demographic trends

PCBS estimated the number ofPalestinians in the world in 2004 at 10million. A little more than half of them(51%) live in the diaspora (PCBS, 2005b),11% live in Israel, 24% in the West Bankand 14% in the Gaza Strip.

The estimated number of Palestinians inthe West Bank and Gaza Strip at the end of2005 was 3,762,005, 63% (2,372,216) ofwhom live in the West Bank and 37%(1,389,789) in the Gaza Strip (PCBS and

MAS, 2005a). In 2004, 56.4% of thepopulation lived in rural areas, 24.6% inurban areas, and 15.1% in the variousrefugee camps. Also in 2004, 46.1% of thepopulation (44.3% in WB, 49.2% in GS)were less than 15 years of age, while only3.1% were 65 years of age and above.Time series data show a slight but steadyincrease in the median age of Palestiniansociety, rising from 16.4 to 16.6 yearsduring the period 1997–2004. The averagepopulation growth rate for the year 2005 inthe oPT is estimated at 3.3%.

Poverty alleviation

The World Bank estimates, based onhouseholds’ distribution of consumptionexpenditure (World Bank, 2003), thatbefore the intifada 21% of the populationwere living below the poverty line ofUS$2.1 per day. This proportion hadincreased to 33% by December 2000, 46%by December 2001 and 60% by December2002.

PCBS data indicate that the rate ofdiffusion of poverty among Palestinianhouseholds in the oPT was 25.6% in 2004,when the monthly consumption was used,and 53.7% when the monthly income wasused (PCBS, 2005a). More significant isthe fact that 16.4% of the households weresuffering from deep poverty in 2004according to the monthly expenditure,compared with 44.4% when the monthly

18

HUMAN RESOURCES DEVELOPMENT AND ITS LINKS TO THE LABOUR MARKETIN THE WEST BANK AND GAZA STRIP

Figure 3: Poverty rates

Source: World Bank estimates, based on PCBS data – Medium-Term Development Plan

0

10

20

30

40

50

60

19

99

20

00

20

01

20

02

20

03

20

04

Year

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income is used. Some 67% of Palestinianfamilies in the territories live below thepoverty line, according to statements madeby families regarding their income duringthe first quarter of 2005 (PCBS and MAS,2005b).

Women are particularly affected by poverty.In 2002, poverty rates amongfemale-headed families reached 30%,while they reached only 20% among otherfamilies.

The gravest consequence of high povertyrates is malnutrition. The World Bankestimates that per capita real foodconsumption declined by 25% between1998 and 2002. The PCBS nutrition surveyfound a significant increase in both acuteand chronic malnutrition between 2000 and2002.

Summary

The disengagement from the Gaza Strip isa step in the right direction towardsestablishing peace between Palestiniansand Israelis. The erection of the wall, onthe other hand, poses a real threat to thisyearned-for peace, and imposes seriouschallenges on the HRD system in generaland the education system in particular.

Socially, the current situation ischaracterised by high unemployment andpoverty compounded by high populationgrowth. The psychosocial and healtheffects of the situation on children areconsiderable. Poverty alleviation is notpossible without tangible improvements inthe overall economic conditions.

1.3 KEY FEATURES OF THELABOUR MARKET6

Sectoral structure and shifts

A total of 528,000 people (66.8% of thelabour force) were employed in 2004.They were distributed within the followingeconomic activities: 15.9% in agriculture,hunting and fishing; 12.7% in mining,quarrying and manufacturing; 11.7% inconstruction; 19.4% in commerce, hotelsand restaurants, 5.4% in transportation,storage and communications; and 34.9% inservices and other branches.

The distribution of employed peopleaccording to economic activity and place ofwork is shown in figure 5.

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1. CURRENT SITUATION AND TRENDS IN HUMAN RESOURCES DEVELOPMENTAND THE LABOUR MARKET

Figure 4: Employment according to economic activity, 2004

15.9

12.7

11.7

19.4

5.4

34.9

Agriculture

Manufacturing

Construction

Commerce, hotels& restaurants

Transportation

Services

6 All data in this section are based on PCBS 2004 labour statistics.

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As figure 6 shows, a greater percentage ofworkers are employed in the services andagricultural sectors, while constructionaccounts for a lower percentage ofemployed persons.

The sectoral composition of the Palestinianeconomy was fairly stable throughout thesecond half of the 1990s, with a fewexceptions. The financial sector grew very

rapidly in 1994. The contribution offinancial intermediation to GDP increasedfrom 1.1% to 4.4% between 1994 and2000. The transportation andcommunication sector also gained inimportance, doubling its share of GDP from4.4% to 8.7% during the same time. Theshares of agriculture, manufacturing, andtrade declined, while the contribution ofconstruction was cyclic (IMF, 2003).

20

HUMAN RESOURCES DEVELOPMENT AND ITS LINKS TO THE LABOUR MARKETIN THE WEST BANK AND GAZA STRIP

Figure 5: Employment according to economic activity and place of work, 2004

0%

20%

West Bank Gaza Strip Israel & settlements Total

40%

60%

80%

100%

Services Transportation Commerce,hotels &restaurants

Construction Manufacturing Agriculture

Figure 6: Employment according to economic activity, 1995–2004

0

10

20

30

40

1995 1997 1999 2001 2003Year

%

Agriculture

Manufacturing

Construction

Commerce, hotels &Restaurants

Transportation &communications

Services

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Key characteristics of the labour market

Unemployment rose from 25.6% (23.8%WB, 29.2% GS) in 2003 to 26.8% (22.9%WB, 35.4% GS; 28.1% male, 20.1%female) in 2004. The unemployment ratedecreased to 26.3% during the first quarterof 2005. Unemployment in the first quarterof 2005 showed a slight increase in theWest Bank and a slight decrease in theGaza Strip compared to the fourth quarterof 2004.

The number of Palestinians working inIsrael has fluctuated widely, reaching apeak of 146,000 in the third quarter of 2000(IMF, 2003). The number had beensignificantly reduced to 33,000 in thesecond quarter of 2002 and had recoveredslightly to around 56,000 by the end of2002. The number was around 50,000during the year 2004. The number ofPalestinian workers in Israel reflects thepolitical situation in general. Securitymeasures that affect access to the Israelilabour market include changes in the totalnumber of permits granted to Palestinianworkers and partial and general borderclosures.

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1. CURRENT SITUATION AND TRENDS IN HUMAN RESOURCES DEVELOPMENTAND THE LABOUR MARKET

Figure 7: Unemployment rate, 1995–2004

0

5

10

15

20

25

30

35

1995

1999

2000

2001

2002

2003

2004

Year

Figure 8: Employment in Israel and in the West Bank and Gaza Strip, 1995–2004

0

100,000

200,000

1995 1999 2000 2001 2002 2003 2004

300,000

400,000

500,000

600,000

700,000

Year

Employment in Israel Local employment

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As can be seen in figure 9, there has beencontinuous growth in PA employment, andspecifically in civil service employees,during the 1995–2003 period.

The percentage of people working in Israeland the settlements has gone down, to becompensated for mainly by the privatesector. Investments from the private sectorrose from 84% of total investments in 1997to 100% in the year 2001/02.

22

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Figure 9: Employment in the PA, 1995–2003

1995 1997 1999 2001 2003

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

Year

Security Civil service

Figure 10: Employment in Israel, the PA, and the private sector, 1995–2003(first quarter)

1995 1997 1999 2001 2003/Q1

0

20

40

60

80

100

120

Year

%

Private sector PA employment Israel & Settlements

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Labour force growth

The labour force participation rate rose from40.3% (41.8% WB, 37.5% GS) in 2003 to40.4% (42.5% WB, 36.4% GS) in 2004 andfell back to 39.7% during the first quarter of2005. The current labour force is estimatedat 790,000 people. Around 40,000 youngpeople enter the labour force annually.

It is worth noting that the participation ofwomen in the labour force reached only13.5% in 2004, making this one of thelowest female labour force participationrates in the world.

Migration

Because the Palestinians have no controlover border crossings, no official migrationdata have been made available fromPalestinian sources. It appears that there isno significant migration taking place into orout of the oPT7. Palestinians, however, areknown to migrate abroad for workpurposes, although this is becoming harderto do. Brain drain has increasingly madeitself felt in the past few years. Thehousehold survey carried in 1995 showedthat, of the Palestinians living in the oPT,91.9% were born in the territories, 3.8% inIsrael and 4.3% in other countries. About60% of households in the West Bank haveclose relatives living abroad, compared toabout 53% of Gaza Strip households. Most

relatives abroad live in Jordan (49.2%).Some 43% have an Israeli identity card.About 6.0% of those currently living in theoPT have changed their residence since1987. Of these, 5.1% came from abroad,while about 0.9% changed their districts ofresidence.

International migration is affected bypolitical and economic factors operatinginside and outside the Palestinian territory.Because of the realities of the peaceprocess, a very pessimistic trend has to beassumed. The PCBS assumed a total of500,000 people coming back to the oPTduring the period 1997–2010.

An estimated 4,575,000 Palestinians wereliving in the diaspora in 2001, more thanhalf of them in Jordan.

The results of the opinion poll conductedby the Development Studies Programme in2004 show that 5% of the survey sampledeclared that one of their family membershad permanently emigrated from the oPTduring the intifada, and that 11% declaredthat one of their family members left theoPT for study or temporary work purposesduring the same period (DSP, 2004). Some18% of the individuals surveyed expresseda desire to emigrate.

There are a few programmes that try tobring Palestinian specialists and

23

1. CURRENT SITUATION AND TRENDS IN HUMAN RESOURCES DEVELOPMENTAND THE LABOUR MARKET

Figure 11: Growth in the labour force participation, 1995–2004

0

100

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

200

300

400

500

600

700

800

Value inthousands Year

7 Although there are reports that show escalating emigration among Christian Palestinians (e.g. Sabella, 2004).

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intellectuals back from the diaspora to workin the West Bank and Gaza Strip. Anexample of such programmes is theTOKTEN (Transfer of Knowledge throughExpatriate Nationals) programme run bythe UNDP. Despite their importance, yetthe extent of these programmes is limited,and there are no signs of real ‘brain gain’.

Role of the informal economy

Data regarding the Palestinian informaleconomy, gathered in 2003 fromestablishments and households, showedthe following:

� In 2003 the total number of peopleengaged in establishments of theinformal economy in the oPT was98,727 (91,074 male, 7,653 female),working in 54,885 establishments.Around 62% of these people worked inwholesale, retail, and repairs andanother 19% worked in manufacturing.Only 6.1% of informal economyestablishments were established laterthan 2000.

� The number of people engaged in theinformal economy through householdprojects (outside the establishments)was 82,303 (91.6% male, 8.4% female).

There are no timeline surveys showing thetrends of the informal economy. However,the sense is that the informal economy hasbeen growing in the past few years, asevidenced by the mushrooming numbers ofvendors near checkpoints and the growthof the unregulated transportation sector.

Present and future challenges

Several of the current challenges areexpected to persist in the coming years.They include job creation in anenvironment which is not conducive forinvestment; a labour market still heavilydependent on Israel; a public sector thathas expanded exponentially in recentyears, providing needed employment butbecoming a heavy and unsustainableburden as a result; and a suffocated privatesector mainly made up of SMEs that arebarely nurtured.

Unemployment in the West Bank and GazaStrip is mainly a demand-deficientdisequilibrium unemployment associatedwith the economic recession describedearlier, and economic scenarios do notpredict that it will bottom up in theimmediate future. Growth in the labourforce leading to unemployment is moregradual and slow but still poses a majorchallenge, given the current high fertilityrates. Structural unemployment due mainlyto the fluctuation in economic sectors, suchas construction, that are highly dependenton work in Israel poses another challenge.The growth of the service and IT sectors islikely to require different qualifications ofthe labour force. The move to anexport-oriented economy is only possiblewith a major change in the political setting,and that is very hard to predict.

Current employment policy measures

As stated earlier, job creation is a mainpillar of the PA’s Medium-TermDevelopment Plan. A variety of measureswere taken by the PA, the civil society, anddonors to create employment guided by anational job creation strategy.

Job creation strategy

The World Bank, on behalf of the donorcommunity and coordinated by the SmallWorking Group on job creation, hasproduced a review of employmentgeneration schemes between October2000 and January 2002 (World Bank,2002). The review concluded that jobcreation is humanitarian aid rather thandevelopment aid. It showed that the use ofjob creation projects has proved to be asignificant means of providing purchasingpower to the poor and the unemployedpeople, and the programmes have allowedcommunities to undertake a variety ofurgently needed projects, thussupplementing the traditional ways ofdelivering humanitarian assistance. Theyhave also promoted development.However, the review demonstrated that theway of delivering this type of humanitarianaid can be made more efficient.

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The review’s findings andrecommendations were formally endorsedby the PA and constitute the basis for astrategy paper on job creation formulatedby the Palestinian Ministry of Planning. Thestrategy envisages that local communitieswill be responsible for the technicalimplementation of the job creation projects.Some larger municipalities have thetechnical capacity to implement suchprojects. Other smaller communities haveto be supported by larger municipalities,governorates, NGOs, and donors.

During the second half of 2005, a numberof initiatives and projects were beingundertaken by various agencies to addressemployment at the local and nationallevels. One example of a national project isthe Palestinian Fund for Employment andSocial Protection. The Ministry of Labour(MoL), with the help of the ILO, hasinitiated the establishment of the fund. Theobjectives of the fund are to supportaround 400,000 people (55,000 families)from the poorest 10% of the population.

HRD forms a component of manyemployment generation projects, however,and since immediate jobs are created byinvestments and not education andtraining, most of these employmentgeneration projects involve mainlylabour-intensive construction of theinfrastructure required to provide basicservices such as education and healthcare.

Institutional capacity to monitor thelabour market

A variety of institutions gather and analysedata on trends in the labour market. ThePCBS is well established and producesregular and reliable data that meet thehighest international standards. Public,non-governmental, and private researchcentres and universities produceprofessional and updated analyses of thelabour market. For example, the PalestineEconomic Policy Research Institute (MAS)started producing quarterly economic andsocial monitors as of April 2005.

In 1998 the MoL established a labourmarket information system with the help ofthe ILO and the PCBS.

1.4. SUMMARY

Summary of key socioeconomic factorsaffecting HRD systems and strategies

HRD systems and strategies in the oPT areinfluenced by the following factors.

� A highly unstable and unpredictablepolitical environment. It is not knownwhether workers and people in generalwill be allowed to move freely, forexample, between the West Bank andthe Gaza Strip or between the WestBank and Gaza Strip and Israel on theone hand and the Arab world on theother. Many schools and educationinstitutions are not able to operate in theafternoons and evenings because ofsecurity concerns. The erection of theseparation wall has made manyeducation establishments no longeraccessible. Finally, the absence of therule of law affects legislation and lawenforcement.

� The economic gloom, with thePalestinians not having the control overits causing factors (closures, restrictionson movement, etc.). The private sector,which drives economic growth, hasbeen hit hard but is still resilient. Itsparticipation in HRD is, however, quitelimited. Education and training do notcreate employment, but properly trainedand educated graduates can competebetter for the available workopportunities. The challenge is that theeconomy is not able to generate newwork opportunities for the fast-growingnumber of annual entrants to the labourforce under the prevailingcircumstances. The public andnon-formal sectors have grown tosaturation over the past few years. Thisputs a heavy burden on the HRDsystem.

� The unemployment, poverty, the declinein all health and education indicators,and the prioritisation of humanitarianand emergency programming instead oflong-term development programmingwhere HRD would play a pivotal role.

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New challenges and opportunities

If Israel allows, following thedisengagement, new opportunities willsurface in the Gaza Strip with regard to theairport, the sea port, greenhouse-basedagriculture, and tourism. Labour mobilitybetween the West Bank and the Gaza Stripmight become easier and accordinglydisparities might also decrease. Thecompletion of the wall will isolatePalestinians living in Jerusalem as well asothers from the overall Palestinianeconomic and social fabric.

The relaxation of travel restrictions wouldenable more Palestinians to work abroad,particularly in the Arab countries. Therelaxation of border controls would enableeasier export and strengthening of theprivate sector to create new jobs.

Enhancing the efficiency of the publicsector will be very difficult in the currentsetting. Cutting down on employment inthis sector will only be possible witheconomic recovery and the private sectorbecoming able to create more jobs.

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2. STRUCTURE OF THEHUMAN RESOURCESDEVELOPMENT SYSTEM

Palestinians are relatively highly literate.The literacy rate in 2004 stood at 92.3%(96.5% for males, 88.0% for females). Thisis mainly attributed to a well-establishededucation system of various levels (seefigure 12).

The education system starts formally at theage of six with basic education, which iscompulsory for all and spans over tenyears. Many children, however, enrol atkindergarten for two years of preschooling.

Following basic education, most studentscontinue in the academic two-yearsecondary education. Some join thetwo-year vocational education streamoffered at the vocational secondaryschools, and others join the vocationaltraining centres (VTCs) providing one ortwo years of vocational training. Somemove to the labour market following thebasic education cycle.

Graduates of VTCs have no opportunitiesto move up to higher education, butgraduates of the academic secondaryeducation who pass the Tawjihi

examination join universities or colleges.Graduates of vocational secondary schoolsmay continue their studies in colleges. Veryfew move up into universities (the first tenor so in the vocational Tawjihi exam).

Higher education is composed of colleges,university colleges, and universities.

Parallel to this formal education systemthere exists a wide range of for-profit,non-governmental, and other types oforganisation providing a range ofnon-formal further training and retrainingopportunities.

27

2

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Displaced Palestinians in the various Arabcountries are catered for mainly, and inmost cases solely, by UNRWA, which ismandated to provide basic educationservices to Palestinian refugees in Jordan,Syria, and Lebanon besides the West Bankand Gaza Strip. In the year 2002/03,UNRWA operated 314 elementary schoolswith 336,230 students, 337 preparatoryschools with 152,427 students, fivesecondary schools with 2,292 students,and eight VTCs with 4,882 students in itsfive areas of operation (UNRWA, 2004).

2.1 FORMAL SCHOOLEDUCATION

Preschool education

Preschool education is offered almostcompletely by private andnon-governmental organisations. The totalnumber of children joining kindergarten in2004/05 was 73,119. The number ofchildren in kindergarten dwindled duringthe first years of the intifada, but has pickedup again since 2003/04. All in all, thenumber of pupils has doubled since 1995.

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HUMAN RESOURCES DEVELOPMENT AND ITS LINKS TO THE LABOUR MARKETIN THE WEST BANK AND GAZA STRIP

Figure 12: The Palestinian education system

23

22

21

20

19

18

17

16

15

14

13

12

11

10

9

8

7

6

5

4

Non-formaland

continuingeducation

andtraining

Te

rtia

rye

du

ca

tio

n

UniversityOpen

UniversityUniversi-

tiesColleges colleges

Vocationaltraining

Vocationaleducation

Secondary education

Basic education

Preschool (kindergarten)

Age

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Basic education

Basic education is provided by the PA’sMinistry of Education and Higher Education(MEHE), UNRWA, and private religious,philanthropic, and for-profit schools. Therewere 931,260 students studying in basiceducation in 2004/058.

Secondary education

Secondary education is provided by theMEHE and private schools. There were112,675 students studying in secondary

education in 2004/05. The number ofstudents in the academic secondaryeducation stream was 108,624 in 2004/05.The number of students in the vocationalsecondary education stream was 5,561 inthe same year. In other words, vocationalsecondary school students made up only4.9% of the total number of secondaryschool students in the relevant age group.

Overview of formal school education

The total number of students in schoolshas been increasing sharply since 1994/95.

29

2. STRUCTURE OF THE HUMAN RESOURCES DEVELOPMENT SYSTEM

Figure 13: Growth in preschool education, 1995–2005

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

Number ofstudents

1995 1997 1999 2001 2003 2005

Year

Figure 14: Growth in school education, 1994/95–2004/05

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

Studentsnumber

1994/95 1998/99 2002/03

8 All data on formal schooling and higher education come from MEHE 2005 statistics.

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Schooling is provided by 2,190government, UNRWA, and private schools.

The enrolment ratios are highest for basiceducation and lowest for preschooleducation.

The net enrolment ratio has been steadyand slightly increasing at the basic level,reaching 89.0% in 2004/05. It hasincreased for secondary education from33.9% in 1994/95 to 56.0% in 2004/05, buthas fallen consistently for preschooleducation from 33.4% in 1996/97 to only19.1% in 2004/05.

2.2 HIGHER EDUCATION

Higher education is offered by private,public, UNRWA, and governmentalcolleges and universities. Colleges offertwo-year diploma degrees. Universitycolleges are colleges that have startedoffering a limited number of Bachelor’sdegrees besides the diploma. A number ofuniversities exist in various parts of the oPToffering a range of Bachelor’s and in somecases Master’s degrees. There is one largeopen university providing Bachelor’sdegrees.

Figure 15: Number of students in kindergarten and schools

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

Kindergartens Schools

Government UNRWA Private

Figure 16: Enrolment ratio in 2004/05

56

71.6

8993.2

19.1

29.9

0

20

40

60

80

100

Kindergartens Basic Secondary

Gross enrollment ratio Net enrollment ratio

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Colleges

There are 19 colleges in the oPT (14 WB, 5GS; 1 UNRWA, 8 private, 10 public). In2004/05 there were 9,002 students (3,389WB, 5,613 GS; 5,070 male, 3,932 female).The number of graduates in the same yearwas 1,727 (813 WB, 914 GS; 781 male,946 female).

In the year 2004/05, 84% of those applyingto the colleges were accepted and 80% ofthose accepted actually enrolled.

All the graduates received diplomadegrees. Their distribution according totheir main programme of study was asfollows.

Study programme

Number

of

graduates

% of total

Social sciences,business and law

502 29

Education 93 5

Humanities and arts 107 6

Agriculture andveterinary

0 0

Health and welfare 387 22

Science 387 22

Engineering,manufacturing andconstruction

251 15

The total number of employees working atthe colleges was 806 persons (606 male,200 female), of whom 459 (376 male, 83female) were teaching staff. Of theteaching staff, 12.2% had a Ph.D., 38.1% aMaster’s degree, 44.2% a Bachelor’s, and5.5% a lower qualification.

University colleges

There are 13 university colleges in the oPT(9 WB, 4 GS; 8 governmental, 2 UNRWA,3 private). In 2004/05 there were 6,034students (3,451 WB, 2,583 GS; 2,681male, 3,353 female). The number ofgraduates in the same year was 1,879 (904WB, 975 GS; 573 male, 1,306 female).

In the year 2004/05, 62% of those applyingto the colleges were accepted and 86% ofthose accepted were enrolled.

Some 77% of the graduates receivedDiploma degrees, 22% received Bachelor’sdegrees, and 1% received High Diplomadegrees. Their distribution according to thestudent’s main programme of study was asfollows.

31

2. STRUCTURE OF THE HUMAN RESOURCES DEVELOPMENT SYSTEM

Figure 17: Net enrolment ratio

0

20

1994/95 1996/97 1998/99 2000/01 2002/03 2004/05

40

60

80

100

Kindergartens Basic Secondary

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Study programme

Number

of

graduates

% of total

Social sciences,business and law

576 31

Education 231 12

Humanities and arts 194 10

Agriculture andveterinary

0 0

Health and welfare 568 30

Science 176 9

Engineering,manufacturing andconstruction

134 7

The total number of employees working atthe university colleges was 1,028 (674male, 354 female), of whom 402 (227 male,125 female) were teaching staff. Of theteaching staff, 11.7% had a Ph.D., 43.4% aMaster’s degree, 40.3% a High Diploma orBachelor’s degree, and 4.6% a lowerqualification.

Open university

There is one governmental open universityin the oPT. In the year 2004/05 it had46,453 students (34,319 WB, 12,134 GS;22,398 male, 24,055 female). The numberof graduates for the same year was 3,040(1,976 WB, 1,064 GS; 1,469 male, 1,571female).

In the year 2004/05, 92% of those applyingto the colleges were accepted.

All graduates received Bachelor’s degrees.Their distribution according to the mainprogramme of study was as follows.

Study programme

Number

of

graduates

% of total

Social sciences,business and law

1,525 50

Education 1,291 43

Humanities and arts 0 0

Agriculture andveterinary

17 1

Health and welfare 0 0

Science 207 7

Engineering,manufacturing andconstruction

0 0

The total number of employees working atthe open university was 2,111 (1,790 male,321 female), of whom 1,450 (1,278 male,172 female) were teaching staff. Of theteaching staff, 27.9% had a Ph.D., 71.4% aMaster’s degree, and 0.8% a Bachelor’s.

Universities

There are ten universities (7 WB, 3 GS;1 private, 9 public) in the oPT. In 2004/05there were 76,650 students (38,708 WB,37,942 GS; 36,400 male, 40,250 female).The number of graduates for the sameyear was 9,927 graduates (5,891 WB,4,036 GS; 4,397 male, 5,530 female).

In the year 2004/05, 77% of those applyingto the colleges were accepted, and 87% ofthose accepted were enrolled.

Of the graduates, 0.3% received aprofessional diploma degree, 3.4% ateaching qualification, 0.5% a Diploma,88.0% a Bachelor’s degree, 0.6% a HighDiploma, and 7.2% a Master’s. Theirdistribution according to the mainprogramme of study was as follows.

Study programme

Number

of

graduates

% of total

Social sciences,business and law

3,401 34

Education 2,452 25

Humanities and arts 1,578 16

Agriculture andveterinary

53 1

Health and welfare 564 6

Science 970 10

Engineering,manufacturing andconstruction

909 9

The total number of employees working atthe universities was 5,884 (4,576 male,1,308 female), of whom 2,281 (1,964 male,317 female) were teaching staff. Of theteaching staff, 49.5% had a Ph.D., 46.0% aMaster’s degree, 4.0% a Bachelor’s orHigh Diploma, and 0.5% a lowerqualification.

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HUMAN RESOURCES DEVELOPMENT AND ITS LINKS TO THE LABOUR MARKETIN THE WEST BANK AND GAZA STRIP

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33

2. STRUCTURE OF THE HUMAN RESOURCES DEVELOPMENT SYSTEM

Figure 18: Higher education institutions

0

5

10

15

20

Nu

mb

er

Gaza Strip West Bank

Community colleges University colleges Open universities Traditional universities

Figure 19: Distribution of students in higher education institutions

Number

0

20,000

40,000

60,000

80,000

100,000

Female Male

Community colleges University colleges Open universities Traditional universities

Figure 20: Distribution of graduates of higher education institutions

Number

Female Male

0

2,000

4,000

6,000

8,000

10,000

12,000

Community colleges University colleges Open universities Traditional universities

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Overview of higher education

There are 43 higher education institutionsin the oPT.

There were 138,139 registered students inhigher education in the year 2004/05.

Some 16,573 students graduated fromhigher education institutions in 2003/04.

The majority of graduates of the highereducation system obtain Bachelor’sdegrees.

The two main study programmes for highereducation students are social sciences andeducation.

34

HUMAN RESOURCES DEVELOPMENT AND ITS LINKS TO THE LABOUR MARKETIN THE WEST BANK AND GAZA STRIP

Figure 21: Distribution of students according to certificate

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

Number

Diploma

Bachelor

Graduate studies

Other

Figure 22: Distribution of students according to their study programme

31%

31%

13%

1%

6%

11%

7% 0%Social sciences, business and law

Education

Humanities and arts

Agriculture and veterinary

Health and welfare

Sciences

Engineering, manufacturing and construction

Unspecified

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Holders of Master’s degrees constitute themajority of the teaching staff.

The demand for further and highereducation has increased at a very high ratesince 1995. The number of studentsenrolled in tertiary education institutionsmore than tripled between 1995 and 2003,the gross enrolment rate in tertiaryeducation rising from 10.2% in 1995 toalmost 17% in 1999, and was estimated to

be more than 23% in 2003, above theaverage for Arab states.

Employment data show highunemployment rates in both the West Bankand the Gaza Strip. The unemploymentrates of populations with 13 or more yearsof schooling are lower than the average,suggesting that tertiary education providesa greater chance of finding employmentthan lower levels of educational attainment.

35

2. STRUCTURE OF THE HUMAN RESOURCES DEVELOPMENT SYSTEM

Figure 23: Distribution of graduates according to their study programme

Social sciences, business and law

Education

Humanities and arts

Agriculture and veterinary

Health and welfare

Sciences

Engineering, manufacturing and construction

37%

25%

11%

0%

9%

10%

8%

Figure 24: Distribution of teaching staff according to their academic qualification

PhD Master High diploma Bachelor Diploma0

500

1,000

1,500

2,000

2,500

Part-time Full time

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The tertiary education system faceschallenges related to financialsustainability, the efficient management ofthe resources, the relevance and quality ofsupply, and the lack of equitabledistribution of student aid programmes.

2.3 NON-FORMAL EDUCATIONAND TRAINING

Non-formal education and training forms animportant component of the PalestinianHRD system and is considered as a basiccomplement to formal education and abasic component in dealing with theprocess of economic and social change.Non-formal education is characterised by(Hashweh, 1998):

� the variety of parties which offer thistype of education according to theirdifferent objectives and interests;

� differences in the length of the coursesprovided;

� a specific curriculum for each providingorganisation;

� certificates that are not universallyacknowledged.

With some – in some cases many –overlaps, the following general observationscan be made regarding the non-formaleducation and training system in the oPT.

� Basic vocational training for youth isprovided mainly by the VTCs of theMoL, UNRWA, and NGOs.

� Rehabilitation training also for youth isprovided by the Ministry of Social Affairsand some NGOs.

� Adult further training and retraining isprovided by NGOs, for-profitorganisations, continuing educationdepartments at higher educationinstitutions, various other governmentalagencies, professional employers’ andemployees’ associations, andcompanies (for in-service training).

� There is a lot of duplication of trainingofferings, and there is no overall strategyto identify and address skill bottlenecks.

Basic vocational training for youngpeople

Basic vocational training for young peopleis offered by a variety of organisations.

Ministry of Labour VTCs

The MoL operates 12 VTCs (8 WB, 4 GS).The training programmes’ duration variesfrom a few months up to one year. Thenumber of students enrolled in the year2004/05 was 2,661 (1,527 in basicvocational training programmes, 1,032 in ITprogrammes, and 102 in vehicle drivingprogrammes)9. Around 55% of thegraduates of MoL VTCs are female.

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HUMAN RESOURCES DEVELOPMENT AND ITS LINKS TO THE LABOUR MARKETIN THE WEST BANK AND GAZA STRIP

Figure 25: Unemployment rates according to the years of schooling

Source: PCBS, Labour statistics, 2004

0

10

20

30

40

0-1 1-6 7-9 10-12 13+

Years of schooling

Male

%u

ne

mp

loye

me

nt

Female Total

9 Ministry of Labour, unpublished data for 2005

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UNRWA VTCs10

UNRWA runs two main VTCs in the oPToffering two-year training programmes.Kalandia VTC in the West Bank has450–500 students and produces onaverage 200 graduates annually, whileGaza Strip VTC has around 800 studentsand produces around 350 graduatesannually.

In addition, Ramallah Women’s TrainingCentre (Al-Tireh), which is a college, alsoprovides a few vocational courses forwomen in clothing production, hairdressingand beauty care, and ceramics. It hasaround 130 students and produces 40–45graduates annually.

In summary, around 1,400 students areenrolled in UNRWA vocationalprogrammes and graduates numberaround 600 annually.

NGOs

A number of NGOs and other religious andphilanthropic organisations providespecialised vocational training programmesfor young people; for example the YMCA,YWCA, Lutheran World Federation, IslamicOrphanage School, Salesians, and NotreDame. These organisations have played,and are still playing, an important role inthe development of the Palestinian TVETsystem, and in designing and implementinginnovative practices. A positivedevelopment has taken place in recentyears with the establishment of acoordinated league of NGO TVETproviders, which lobbies government toprioritise TVET on its agenda.

Rehabilitation training for young people

The use of vocational training as part of anoverall rehabilitation programme is used bymany organisations including the following:

Ministry of Social Affairs VTCs

The Ministry of Social Affairs operates 12rehabilitation centres (7 WB, 5 GS), whichtarget dropouts, those with learning

difficulties, and the sociallydisadvantaged11. Vocational training is themain component of the two-yearprogrammes offered at the centres.Although the training is in traditionaloccupations such as metalwork andcarpentry and is not properly aligned to thelabour market demand, the ministry’s VTCsplay an important social function whichshould be further developed and upgraded.

In 2004/05 the number of students in thesecentres was around 850 (257 WB, 593GS), and the number of graduates was 378(113 WB, 265 GS).

NGOs

Many NGOs have rehabilitationprogrammes with integrated vocationalprogrammes for special target groups. Oneexample is the YMCA RehabilitationProgramme for Special Needs.

Adult further training and retraining

A wide range of organisations offer furthertraining and retraining opportunities foremployed and unemployed adults.

NGOs

Among the many NGOs that provide furthereducation and training programmes foradults, particularly in management,agriculture, and IT, are Maán, Bisan, andPARC.

Private for-profit training institutions

A variety of for-profit organisations offer awide range of both basic and furthertraining programmes. Private culturalcentres provide mainly computer andcommercial training programmes, but alsohealth and engineering specialties. Data for1996/97 showed the existence of as manyas 143 cultural centres in the oPT (91 WB,52 GS). The number of students at thesecentres in that year was 18,563, two-thirdsof whom were over 18 years of age. Datafor 2004/05 show the existence of 148registered cultural centres in the WestBank alone, with 9,656 students.

37

2. STRUCTURE OF THE HUMAN RESOURCES DEVELOPMENT SYSTEM

10 UNRWA, Statistical Yearbook 2002–03, 2004

11 Ministry of Social Affairs, unpublished data for 2005

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Continuing education departments at

universities

Almost all universities have continuingeducation departments and specialisedcommunity related departments that offer awide range of tailored as well as generictraining programmes for adults.

Other government institutions and

agencies

These include but are not limited to theMinistry of Ex-Detainees, The NationalInstitute for Information Technology, andthe HRD Department at the GeneralPersonnel Council.

Ministry of Ex-Detainees: The ministryoperates a vocational training programmethat caters for the thousands of Palestinianyoung people and adults who have beendeprived of the chance to continue theirstudies or have been away from the labourmarket, and want to have an opportunity torejoin the labour market. A variety oftraining programmes are offered, includingaluminum work, air conditioning, graphicdesign, electrics, hairdressing, and vehiclemechanics, as well as various vehicledriving programmes. The number ofstudents in these programmes is about1,000. Most programmes are short-term,with a duration of less than one year.

National Institute for Information

Technology: The institute was establishedby the Palestinian Economic Council forDevelopment and Reconstruction, basedon its belief that human resources highlyspecialised and qualified in IT are cruciallyneeded to help build an IT industry inPalestine. It has devoted considerableresources to designing and implementing anumber of highly technical, concentrated,and internationally recognizable trainingprogrammes leading to certification. In2005, 461 trainees graduated from thevarious training programmes of six to eightmonths’ duration12.

General Personnel Council (Sayigh andShikaki, 1999): The PA inherited adivergent and often contradictoryinstitutional legacy from the Israeli-run Civil

Administration and the Palestine LiberationOrganisation (PLO). On the positive side,the PA assumed control of an existingpublic administration staffed by a largenumber of experienced, locally based civilservants, allowing it to ensure a rapid andrelatively smooth takeover of servicedelivery in certain sectors, most notablyeducation and health. Palestine LiberationOrganisation’s personnel brought thepolitical skills and authority needed to weldpublic institutions into a single system ofgovernment and to deal with sovereigndonor states and international institutions.They also brought the requisite experienceto build the new police force and fulfilllaw-and-order functions.

On the negative side, very few former CivilAdministration personnel had senior-levelmanagement skills, because virtually allsenior posts had been held by Israeliofficers. Local Palestinian personnel hadlittle experience of policy formulation,decision-making, and planning. Indeed,they had previously been excluded entirelyfrom certain areas of public administration.The Palestine Liberation Organisation’spersonnel, conversely, had politicalexperience at senior levels but little or notraining in public administration. Bothtended to implement top-down,authoritarian systems of management, withlittle scope for public consultation oraccountability.

An estimated 85% of the 75,000 civil andsecurity personnel on the PA payroll by theend of 1996 were inherited from those twobodies, or roughly 65% of the over 100,000persons employed in the public sector twoyears later.

The PA has taken steps to improve HRD inpublic administration. The cabinet, theMinistry of Planning and InternationalCooperation, and the Ministry of Financeare all working on PA-wide training andinstitution-building programmes. Mostrecently the National Centre for PublicAdministration, which was originally formedwith international donor support within theMinistry of Planning, has been turned intothe new Directorate for Human ResourcesDevelopment and attached to the General

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HUMAN RESOURCES DEVELOPMENT AND ITS LINKS TO THE LABOUR MARKETIN THE WEST BANK AND GAZA STRIP

12 http://www.ni-it.org/

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Personnel Council. Previousdonor-supported efforts have led to theestablishment of approaches to HRD suchas the Training Development Units andFocal Points in ministries. These providean embryonic network for HRD across thePA.

Professional employer and employee

associations

All employer and employee associationshave either vocational trainingdepartments, or are involved one way oranother in vocational training at the local aswell as the national level. This will befurther explored later in the report.

Training in firms

Only large businesses have HRDdepartments that oversee the training ofemployees. There are very few of thesebusinesses and their training programmesusually encompass both on-the-job traininginside the firm and specialised short-termtraining abroad for selected staff.

2.4 TVET IN THE CONTEXT OFHUMAN RESOURCESDEVELOPMENT

TVET is a sector that cuts across the threesectors described above: formal schooleducation, tertiary education, andnon-formal education and training.

As a major component of HRD, theobjectives, structure and content of TVETsystems should incorporate two maincomplementary dimensions: asocio-human dimension that emphasisesindividual needs and human aspirations,and an economic dimension that caters forsocietal needs and labour marketrequirements. As such, TVET systemsshould be rooted in educational and humanvalues and ideals, while growing andextending in the world of workenvironment.

Annex 3 below shows the position of TVETin the overall system of human resourcesdevelopment and investment, whichincorporates the systems of humanresource supply, human resource demand,and the supply–demand interlinkages inthe existing national social, economic, andcultural framework.

As a major component of the supply side ofhuman resources, TVET systems shouldhave strong links with the demand sidethrough such channels as legislative tools,information systems, institutional set-ups,and career guidance and employmentservices. Such channels reflect positivelyon both the supply and demand sides, andensure their relevance and effectiveness(Masri, 2001).

TVET may be defined as the systemproviding training to meet the followingaims:

1. to train new employees needed for thevarious economic sectors as a result ofyearly substitution through oldage/sickness, economic growthrequiring new employees, and newtechnologies requiring different kinds ofemployee;

2. to provide further training and retrainingfor existing employees, so as toincrease productivity and to change oradapt technology or work structures;

3. to train people for self-employment;4. to a lesser degree, to enable individuals

to develop their hobbies, maintain agood health and spirit, become activecitizens, and acquire various life skills.

Accordingly, the Palestinian TVET systemencompasses the following:

� basic entry-level institutions, producingaround 10,000 graduates annually asseen in table 2;

� a variety of other institutions providingretraining and further trainingprogrammes, estimated to cater forabout 25,000 people annually.

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2. STRUCTURE OF THE HUMAN RESOURCES DEVELOPMENT SYSTEM

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Governance

The TVET system is still fragmented, andTVET is offered by a wide range ofproviders. As seen above,community/technical colleges are run bythe MEHE, UNRWA, and public and privateinstitutions. The MEHE has the overallresponsibility for this sector in terms oflicensing of institutions, accreditation ofprogrammes, definition of curricula, etc.

All vocational schools are under thesupervision of the MEHE. The schoolsthemselves are run by the MEHE andvarious NGOs. Both technical educationand vocational education are supervised byone directorate at the MEHE – theDirectorate General for Vocational andTechnical Education. UNRWA colleges andVTCs are supervised by UNRWA’sVocational and Technical Departmentunder the Education Office in UNRWA, inAmman (Jordan). MoL VTCs aresupervised by the Directorate General forVocational Training at the ministry.

In general, the governance andadministration system is highly centralised.Public and UNRWA-run TVET institutionsin particular have very limited autonomy.

Policy and planning

Macro-planning for the TVET system isconducted by the newly established HigherCouncil on TVET (see section 4 below).

HRD in the TVET system

Staff of the TVET system are technicallyqualified at local higher educationinstitutions. The staff at the technicalcolleges come mainly from local

universities. Trainers at vocationalsecondary schools are graduates ofcolleges and universities. Trainers at MoLVTCs come from universities, colleges, andthe labour market. Pedagogical training isnot part of their training. This situation hasbeen changing gradually with the TVETHRD project conducted with the support ofthe German development agency GTZ,where most existing trainers areundergoing a series of ten pedagogicalmodules over two years. There is noseparate training-of-trainers institute that isresponsible for qualifying TVET trainers.Training even within the HRD project isdone mainly by university lecturers with ageneral background in education. Thereare hardly any lecturers with a TVETbackground.

Financing

The system is still heavily dependent ongovernment and donor funding. Communitycollege students pay for their training.Students at public vocational schools andVTCs and UNRWA institutions do not payany fees. NGOs charge a percentage ofthe training cost and obtain the rest fromdonor contributions. Almost allinfrastructure and development expensesare covered by the donor community.There is very little if any private sectorfinancial support to the TVET system.

TVET support services

TVET support services include vocationalguidance and counselling, employmentservices, information systems,occupational classification and skillstandards, legislation, and research anddevelopment.

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HUMAN RESOURCES DEVELOPMENT AND ITS LINKS TO THE LABOUR MARKETIN THE WEST BANK AND GAZA STRIP

Table 2: Basic entry-level graduates of the TVET system

Type of institution Skill level of graduatesNumber of graduates

2004/05

Community/technical colleges Technicians 3,223

Vocational schools Skilled workers and craftsmen 2,463

Vocational training centres(MoL, UNRWA, NGOs)

Skilled and semi-skilledworkers

3,700

Total 9,386

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41

2. STRUCTURE OF THE HUMAN RESOURCES DEVELOPMENT SYSTEM

Vocational guidance and counsellingservices are delivered at the level of thevarious training institutions. Significantdevelopment took place on this track overthe past ten years, but most of the materialand information is now two or three yearsout of date and in need of furtherdevelopment.

Employment services are offered almostexclusively by the MoL’s employment andlabour offices. Again with the help of theILO, serious efforts were exerted to makethese offices more efficient and relevant.The situation is still far from ideal.

Particularly at the level of the traininginstitutions, gathering and managinginformation require a lot of work. Thesituation is better as regards the vocationaland technical education tracks comparedto the vocational basic training and adulttraining tracks. Information at the level ofthe labour market is relatively easilyavailable and regularly updated. However,there is a need for further specific sectoraland geographical information and studies.

Services relating to occupationalclassification and skill standards are notwell established and require a lot of work.

Legislation regarding TVET is marginallyincluded in the labour law and theeducation act. Developing and updatingthese laws and directives is very slow,however. The power and responsibilitiesgiven to the Higher Council on TVET willmake the passing of regulations mucheasier.

Research and development has been verylimited in the past few years after thedismantlement of the Expert Team onTVET.

The Centre for TVET Development andResearch – to be established – should playa major role in this respect.

Efficiency, effectiveness, and relevance

In general, the TVET system is not asefficient as it ought to be. Vocationalschools and technical colleges are still onlybeing used in the mornings.Student–teacher ratios are still relativelylow and could be further improved.

There is also much room for improvementin the quality and effectiveness of thesystem. Improvements are necessary atthe level of all inputs affecting quality,namely: the quality of teachers andtrainers, the curricula used, and thephysical resources available.

In general, and under the circumstances,the system is relatively relevant to theneeds of the labour market. This ismanifested in the high employability ofgraduates of the TVET system comparedto those of other systems. Tracer studiesconducted on graduates of the IndustrialSecondary School in Bet Hanina in 2000,the Lutheran World Federation VTC in2000–02, and the YMCA VTC in 2003, allshowed that graduates have a much higheremployability rate than the average andcompared to other levels of the educationsystem. Most training institutions base theirdecisions to open or close newspecialisations on labour marketinformation. Interfacing activities withbusinesses and industries are found inmost institutions with varying degrees.

However, the TVET system is still seen asattracting the lower achievers and notmeeting the higher training needs ofbusinesses and industries.

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3. RECENT HUMANRESOURCES DEVELOPMENTREFORMS

3.1 TVET REFORM

The reform of the TVET system started in1996 with the development of the NationalStrategy for TVET by all stakeholders andsocial partners. The aim of the strategywas to create a TVET system that would berelevant, flexible, effective, efficient,accessible, and sustainable, and thatwould fulfil its general obligations towardsthe Palestinian society. In accordance withthis aim, the TVET system would have thefollowing characteristics:

� be a unified national system;� be demand-driven, albeit producing a

small excess pool of skilled labour;� be based on labour market monitoring;� be participatory – involving all

stakeholders, especially the socialpartners;

� emphasise practical learning rather than‘talk-and-chalk’ lectures;

� enable students who wish to do so,have the requisite ability, and fulfil

certain requirements, to continue tocommunity college or university aftergraduation;

� target:� graduates of the compulsory general

education system;� dropouts from the general education

system;� adults in employment (needing

training and/or retraining);� unemployed adults (needing training

and/or retraining);� provide training aimed primarily at the

Palestinian labour market, but also atneighbouring labour markets;

� be modular;� provide primarily job-specific modules

but also generic modules;� have a financing system based on:

� government financing;� levy/tax on employers;� payments from students;� income-generating activities;� grants and donations from

national/international sources.

43

3

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The new TVET system is schematicallyrepresented in figure 26.

A detailed implementation plan wasdeveloped in October 1999 and formallyadopted along with the national strategy bythe Palestinian president and cabinet. TheTVET Implementation Plan, besidesreiterating the principles of the basic TVETstrategy, outlined detailed developmentand budgetary targets at the levels ofsystem management, physical resources,curricula, HRD, and system development.It also further defined the TVET objectivesat the individual and community levels. Theplan advocated a phased approach toimplementation as follows.

1. First phase (1999): Establishment of theUnified TVET System. This included theTVET Higher Council, the TVETSteering Committee, and the TechnicalSupport Team.

2. Second phase (2000–04): Raising thereadiness of the TVET system. Thisincluded systems, curricula, humanresources, and physical resourcesdevelopment.

3. Third phase (2004–06): TVET systemexpansion.

For a variety of reasons (see section 3.3),progress was made on some of the tracksof the second phase only.

The implementation plan was revisited andupdated in 2003. The main features of theUpdated Implementation Plan are listedbelow.

An immediate need was identified toendorse and formally set up a systemmanagement structure, consisting of threemain bodies.

1. The Higher Council on TVET: Has 16members (6 government, 2 trainingproviders, 4 representatives ofemployers and workers, and 4 experts).The main responsibilities of the councilinclude ratifying overall TVET policiesand strategies, overseeing theimplementation of the TVET strategy,defining national priorities regardingTVET, fundraising, and providing aplatform for coordination among thevarious stakeholders.

2. The Executive Board: Has 11members, and is mainly responsible fordeveloping programmes and plans forthe TVET strategy implementation,

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HUMAN RESOURCES DEVELOPMENT AND ITS LINKS TO THE LABOUR MARKETIN THE WEST BANK AND GAZA STRIP

Figure 26: The new TVET system

GraduateStudies

GeneralSecondary

School

University

Re-training

semiskilledworker

skilled

Technician

TechnicalSpecialist

University graduates

Non-formalTechnical&VocationalEducation&Training(TVET)

FormalTechnical

&VocationalEducation

&Training(TVET)

B

B

B

10 Year Basic Education Dropouts

Labour market

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implementing TVET policy and strategydirections, coordinating the work of thevarious training providers and policyimplementers and other stakeholders,developing and proposing by-laws anddevelopment projects, and preparingand submitting the Annual NationalTVET Report to the Higher Council onTVET in coordination with the Planningand Development Centre.

3. The Planning and Development

Centre: To be composed of eight units,with the basic responsibility of providingadvice, technical support, anddevelopment plans for the HigherCouncil on TVET, the Executive Board,and relevant TVET institutions,contributing to the development ofhuman resources pertinent to thesystem, networking with similar regionaland international institutions, monitoringand evaluating the performance of thesystem and preparing the necessaryreports to the decision makers, andproviding information and awareness onTVET in Palestine.

A need was identified to adopt the variousTVET levels formally, with basicresponsible bodies as follows:

1. apprenticeship training: MoL2. short-term training: MoL3. vocational education: MEHE4. technical education: MEHE5. continuing TVET: MoL and MEHE.

Immediate implementation priorities (May2003–September 2004) included:

1. provision of pilot apprenticeshipprogrammes by the MoL in threespecialisations;

2. development of 15 modular curricula bythe MEHE;

3. development of an efficient licensingand accreditation system for TVETinstitutions and programmes.

Important but less urgent priorities (afterSeptember 2004) included:

1. developing the system managementinformation system;

2. developing the labour market monitoringsystem;

3. institutionalising the TVET HRD system;4. developing the vocational guidance and

counselling system;5. developing TVET monitoring and

evaluation system.

Considerable progress has taken place inthe implementation of the UpdatedImplementation Plan.

� Two of the three TVET managementstructures were established and areoperational. The third is underdevelopment.

� The TVET levels were officiallyendorsed as planned.

� The piloting of apprenticeship trainingwas launched.

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3. RECENT HUMAN RESOURCES DEVELOPMENT REFORMS

Figure 27: TVET system management

Higher Council on TVET

Executive Board

Planning and Development Centre

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In addition, the cabinet decided to give highpriority to the development of the TVETsystem.

3.2 SOCIAL PARTNERS

The social partners are involved in HRDbut in a limited way. There are severalreasons for this ‘shy’ participation.

� Capacity: Employers’ and employees’capacities are limited, particularly whenit comes to HRD. In addition, their rolesand responsibilities regarding HRD arenot very clear.

� The means and channels for realisticparticipation by the social partners arelimited and need to be furtherdeveloped. The successful INJAZproject implemented by Save theChildren with the MEHE and UNRWA,where private-sector volunteers delivereconomic and financial modules inschools, shows that the social partnerswant to participate actively in HRD, andneed only realistic and manageablemeans for their involvement.

� The legislative frameworks governingthe involvement of social partners in theHRD process and providing incentivesfor their active participation are limited.

� As mentioned above (section 1.4), theprivate sector was hit hardest in thepast few years. HRD becomes a secondpriority when it comes to survival.

� Until recently, the government alwayswanted the social partners to beinvolved on an advisory rather than adecision-making basis. This situation isgradually changing, with theestablishment and empowerment of theHigher Council on TVET.

In the oPT, employers are represented by:(1) the Federation of Palestinian Chambersof Commerce, Industry and Agriculture(FPCCIA); (2) the Palestinian Federation ofIndustries (PFI); and to a less degree (3)the Palestine Trade Centre (PalTrade).Workers are represented mainly by thePalestine General Federation of TradeUnions (PGFTU). However, a second tradeunion working under the auspices of thePalestine Liberation Organisation is still inexistence and operational.

Federation of Palestinian Chambers ofCommerce, Industry and Agriculture13

The Federation of Palestinian Chambers ofCommerce, Industry and Agriculture(FPCCIA) is a national organisationfounded in 1989 to represent the chambersof commerce and industry of the WestBank and Gaza Strip. The federation’smembership base includes 14 chambersand nearly half the operating businesses inthe territories. The total membership ofchambers rose from 5,900 at the end of1991 to 32,000 at the end of 1999.

The federation’s main task is to strengthenand enhance the capacity of the chambersto cope with the requirements of the globalbusiness environment. Its strategy is toensure that the private sector is operatingfreely and is an integral part of policyformulation at the national level. Equally,the federation strives to create strongregional and international links to theworld’s larger, global markets.

Supported by the Cologne chamber forskilled craft, the FPCCIA established a unitfor vocational training in December 1996.The unit initiated vocational training andhas taken the Hebron chamber as a pilotchamber. In addition an examinationcommittee was established, with theFPCCIA as a key member together with theMoL. The FPPCIA has also consolidatedits strong links with the ILO’s TrainingCentre in Turin. Key staff members of thefederation and the constituent chambersreceived training at the centre.

The FPCCIA is a key member of thesteering committee for human resourcetraining and development and is a tripartitesocial partner together with the MoL andthe trade unions. Based on what has beenachieved so far regarding training and skillsupgrading for both employers and theworkforce, the FPCCIA intends to expandthe vocational training unit to includetraining in the fields of management,production and marketing. Such a unit willbe invaluable for mobilising the network ofchambers, assessing the needs of thebusiness community in the field anddeveloping a national strategy.

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13 http://www.pal-chambers.org/

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Palestinian Federation of Industries14

The Palestinian Federation of Industries(PFI) is the national institution representingthe Palestinian industrial sector through itsfederated associations. Founded in 1999as a permanent private-sectororganisation, the PFI facilitates industrialdevelopment as the basis for economicperformance. Its representational role is toeducate, advocate and communicate thevalue of a developed, socially responsibleand globally competitive industry. The PFI’sstrategy of industrial development withinindustry associations leads to a strongermembership base capable of deliveringvaluable member services, effective policyformulation, and integratedcommunications.

Industrial sectors represented by PFIinclude food and beverages, construction,stone and marble, pharmaceuticals,chemicals, metal and engineering, textiles,garments and leather, paper, printing andpackaging, handicrafts, plastic and rubber,and furniture. The industrial sector inPalestine includes some 15,000 registeredcompanies in the West Bank and GazaStrip. The majority of these are smallfamily-owned businesses. Only about 100of the manufacturing, mining, andconstruction enterprises in Palestine havea workforce of more than 100 employees.Some 90% of all industrial enterprises havefewer than ten employees. The contributionof the industrial sector to GDP isapproximately 17%, and the industrialsector absorbs around 16% of the totalworkforce.

The PFI is represented in the HigherCouncil on TVET and is active in a varietyof committees working on TVETdevelopment.

Palestine Trade Centre15

The Palestine Trade Centre’s (PalTrade)purpose is to lead the development ofPalestinian trade as a driving force forsustainable national economic growth. As

the Formal Palestinian Institution for TradeDevelopment and a membership of morethan 170 leading Palestinian businesses,PalTrade advocates a competitive,enabling business environment and isdedicated to improving tradecompetitiveness through trade promotionand capacity building. PalTrade’s operationand services are guided by sector-basedstrategies for trade development supportedby assessment of cross-sectoralopportunities and impediments. Thesestrategies are deployed through a range ofservices and activities aimed at vitalisingsectors to export to target markets.

PalTrade offers regular training programmesto its members. Examples of the trainingprogrammes offered in 2005 include ExportMarketing, a Professional ManagementDiploma, How to Swim with Market Sharks,the International Computer Driving Licence,and the Food Safety Initiative.

In addition, in cooperation with DAIPalestine16 and with support from USAID,PalTrade oversees the training of freshuniversity graduates through anapprenticeship arrangement with businessand industries with wage subsidy. Around75% of the graduates were retained inemployment following the end of thetraining period.

Palestine General Federation of TradeUnions17

The Palestine General Federation of TradeUnions (PGFTU) is a non-governmentalnational workers’ organisation, operating forthe interests of the Palestinian workforce tocreate a stable and secure workingenvironment where workers are valued andrespected and their rights recognised. It wasestablished in 1965 and includes eightgeneral industrial unions. The PGFTU setsvocational training of workers as one of itsmain strategic objectives.

It is worth mentioning that PCBS statisticsfor 2005 show that only 31.4% of employedpersons are affiliated to a labour or

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3. RECENT HUMAN RESOURCES DEVELOPMENT REFORMS

14 http://www.pfi.ps/

15 http://www.paltrade.org/

16 http://www.dai.com/palestine/

17 http://www.pgftu.org/

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occupational union. Of those not affiliated,79.3% said that this was due to the factthat they were not convinced of the union’sperformance.

3.3 PROGRESS AND NEXTSTEPS

The transition from policy to practice hasnot been as fast as was hoped or planned.The national TVET strategy was firstdeveloped in 1996 and called for theestablishment of the Higher Council onTVET, which was established only in 2005,almost ten years later.

There are several reasons for the slowpace of reform. They include:

1. Absence of efficient, professional

and most importantly empowered

bodies that can push the strategy

forward: Ministries concerned andother stakeholders lacked thenecessary will, and were unable to letgo of any of the powers they hadoriginally inherited. This kept the systemfragmented, although the strategy calledfor a unified system. Fragmentation, interms of vocational and technicaleducation at least, has been decreasedwith the merging of the ministries ofEducation and Higher Education intoone ministry, and in having thedirectorates of vocational education andtechnical education merged into onedirectorate. The decision by the HigherCouncil on TVET adopted by thecabinet, specifying the TVET levels andtheir respective responsibility, willdefinitely support the integration of thevarious components of the system.

2. Lack of capacity: There are seriousquantitative and qualitative shortages ofqualified human resources, and in somecases shortages of the financesrequired to implement the TVETstrategy. Even where human resourcesof the required calibre are available,these are dispersed and there are nomechanisms to bring them together in asynergetic way to support thedevelopment of the overall system.

3. Over-optimistic targets: Many of thetargets set in the strategy and itsimplementation plan were unrealistic inthe timeframe set. Increasingparticipation in TVET by around 10% forexample, requires years. Developingcurricula for 60 specialisations with noprevious experience in this area isimpossible in only a couple of years.

4. External factors: Definitely, the politicaland economic assumptions were ofstability, independence, growth, and soon. The continued occupation and thesituation following the intifada havechanged the external environment sodramatically that many of the pillars ofthe TVET strategy now have to berevisited. Levying taxes on employersas a way of supporting the financing ofTVET, for example, is completelyimpossible now.

In summary, the Palestinian TVET systemis:

� quite small in size compared toneighbouring countries as well asmodernised countries;

� a little less fragmented, perhaps, but notunified enough. There are still amultitude of providers. The system isnot based on a clear qualificationstructure, and certificates do not havethe same value;

� as demand-driven as is feasible underthe prevailing circumstances;

� becoming more participatory, with theestablishment of the Higher Council onTVET, where the social partners makedecisions at the system level and arebecoming more active in the trainingdelivery. It is still far from participatorywhen it comes to financing and toaccreditation and certification;

� still close-ended. Access to highereducation is no easier than before.Links with other types of education arevery limited;

� still attractive only to low achievers andproviding the low end of the trainingneeds of business and industry. It is stillconsidered as a second-best type ofeducation;

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� not producing graduates with the qualityrequired to compete at the local andinternational levels;

� staffed by a mixture of theoreticalscience and engineering graduates ofcolleges and universities, many ofwhom lack practical experience, andmost of whom have no vocationalpedagogical training;

� still using traditional curricula.Modularisation of competency-basedcurricula to increase the flexibility hasnot moved from the pilot to the systemlevel;

� financed almost exclusively bygovernment and donors. Students andtrainees pay fees only in private VTCsand in community colleges. Businessesand industries do not support thefinancing either directly or indirectly;

� underutilised in terms of capacity anduse of time;

� apparently not problematic as regardsgender. In vocational training andtechnical education, the percentage ofwomen exceeds that of men. Invocational education, expansion in thedisciplines of office administration andcommercial studies balanced thesituation. The issue remains that,although in principle all specialisationsare open to women, women actuallyenrol in only a limited number ofspecialisations;

� unable so far to incorporate the lessonslearned from a large number of pilotsinto policy-related decision-making atthe system level.

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3. RECENT HUMAN RESOURCES DEVELOPMENT REFORMS

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4. INSTITUTIONALCAPACITY, AND PLANNING,MONITORING ANDEVALUATION RESOURCES

The design, planning, monitoring andevaluation of HRD strategies and policiesare conducted at various levels.

At the national macro-level, the mainbodies carrying out these activities are asfollows.

For higher education:

� the Council for Higher Education� the Accreditation and Quality Assurance

Commission.

For TVET:

� the Higher Council on TVET.

There is no similar body overseeingpreschool and school education.

The Council for Higher Education has along history of overseeing the developmentof higher education. It is being restructuredto become more effective and responsive.

It is dominated by universities, andtechnical community colleges arerepresented by one person only.

The Accreditation and Quality AssuranceCommission is relatively new and isassuming more responsibility for theaccreditation of higher educationprogrammes and institutions. Although it isan independent commission, it can onlymake recommendations to the Minister ofEducation and Higher Education, who hasthe final say.

In September 2005, the Higher Council onTVET had been in existence for less than ayear, and had met three or four times. Ithas subsequently become quite active. Inprinciple, it is an empowered body that canmake decisions and ask ministries andother bodies to abide by and follow itsdirections. The council will gain much moresupport with the establishment of thePlanning and Development Centre onTVET.

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The members of the aforementionedbodies are either volunteers or full-timeemployees, and accordingly the time andeffort they can contribute is quite limited.There is no paid staff working solely ondesigning, planning, monitoring andevaluating HRD strategies and policies.

At the intermediate level, the followingbodies exist:

� the Directorate of General Education atthe MEHE

� the Directorate of Vocational andTechnical Education at the MEHE

� the Directorate of University Educationat the MEHE

� the Directorate of Vocational Training atthe MoL

� the Education Department at UNRWA.

All these bodies have barely enoughresources to oversee the running of theeducation establishments they areresponsible for. Very little designing,planning, monitoring, and evaluation ofHRD strategies and policies areundertaken.

At the institutional level, the capacities ofeducation establishments for designing,planning, monitoring and evaluating HRDstrategies and policies are quite diverse.Some of the institutions have excellentcapacities. The social partners’ capacitiesin this regard are limited and leave a lot ofroom for enhancement.

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5. SUMMARY OF KEYFINDINGS

Over one-third of the Palestinian populationis active in the HRD system as students,trainees, teachers, and other staff. Thesepeople are found at different levels asshown in figure 28.

There has been a consistent increase inthe number of students at all levels, butparticularly at schools and universities.While attempts are being made to copewith this situation, the increase, coupledwith meagre financial resources, isresulting in declining quality at all levels ofthe education system.

53

5

Figure 28: Distribution of students in the HRD system

Kindergartens

Basic

Secondary

Higher

Non-formal

0

10

0,0

00

20

0,0

00

30

0,0

00

40

0,0

00

50

0,0

00

60

0,0

00

70

0,0

00

80

0,0

00

90

0,0

00

1,0

00

,00

0

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� The TVET system caters for around10,000 people in basic training annually,and around 25,000 people in continuingtraining. The percentage of studentsenrolled in formal vocational secondaryeducation is only 4.9% of the totalnumber of secondary school students.

� Although it is quite small, the systemsuffers from fragmentation and from amultiplicity of providers. It is not basedon a clear qualification structure, andcertificates do not all have the samevalue.

� The TVET system still attracts only lowachievers and caters for the low end ofthe training needs of business andindustry. It is still considered as asecond-best type of education. This ispartially due to its being close-ended,with few linkages to other types ofeducation, and to the relatively lowquality of the training on offer.

� Issues that need addressing includeprofessionalisation of teacher training,devising adequate realistic financingmechanisms, providing adequatesupport services, and improving thequality, attractiveness, and utilisation ofthe system.

� Major reform efforts have been exertedsince 1997. The implementation of thereform was slow and has just recentlypicked up. The delay was due to acombination of reasons includingcapacity, will, and external factors.

� Social partners’ involvement in the HRDprocess is limited because of externalchallenges facing the economy and theabsence of realistic mechanisms for thesocial partners’ involvement.

� The institutional capacity and resourcesto design, plan, monitor, and evaluateHRD strategies and policies are variedand require consolidation. Thestructures newly set up are expected toimprove the current situation greatly.

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ANNEXES

ANNEX 1: LIST OF PEOPLE INTERVIEWED

Fahoum Shalabi, Ministry of Education and Higher Education

Hans Becker, GTZ

Hisham Kuhail, Ministry of Education and Higher Education

Maher Hashweh, BirZeit University

Mohammad Ghadieh, Ministry of Planning

Mohammad Malki, GTZ

Nader Saeed, BirZeit University

Naser Al-Ayasi, Ministry of Education and Higher Education

Ramzi Rihan, BirZeit University

Said Abu Hijleh, DAI Palestine

Salah Al Zaroo, Ministry of Labour

Salah Odeh, Federation of Palestinian Chambers of Commerce, Industry and Agriculture

Saleh El Kafri, Palestinian Central Bureau of Statistics

Sani Daher, Palestine Trade Centre

Tafeedah Jirbawi, UNRWA Women’s College

Walid Nammour, BirZeit University

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ANNEX 2: NATIONAL SYSTEM-LEVEL INTERVENTIONS

GTZ

In 1999, the PA adopted a new strategy entitled ‘National Strategy for the Implementationof a Unified System for Technical and Vocational Education and Training’. GTZ issupporting this process with a contribution of US$5,951,520, through a programme entitled‘Support to the Technical and Vocational Education and Training System in the PalestinianTerritories’. The programme is situated within the overall reform of the TVET nationalstrategy, which will lead to the establishment of a countrywide, unified, open, flexible, andlabour-market-oriented system. It is to be administered by an interministerial body in orderto increase the administrative effectiveness and enhance the overall efficiency of the TVETsector.

In September 2004, the interministerial TVET structure was created. It comprises a HigherCouncil, an Executive Board and a Development Centre. These bodies will be fullyresponsible for the implementation of TVET at all levels: policy formulation, planning, andoperational levels. In addition to the ministries concerned, private-sector representatives(local organisations, federations and chambers) are key stakeholders of the new TVETbodies. The programme will increase the employability of the unemployed by training themaccording to identified market needs. It also qualifies TVET staff to ensure theimplementation of the reformed TVET system, and attracts more people to join TVET byimproving their chances of employability.

The programme comprises three components:

� Qualification of employees in the TVET system (HRD);� Non-formal education;� Support to the Technical College Nablus.

USAID

USAID’s education programme, being undertaken through a US$41 million initiative,provides funds to benefit institutions of higher education, students and faculty alike, givingthem better access to current research and technology. Under this initiative, 13 technicaland vocational colleges are being provided with modern equipment and supplies; 20community colleges are receiving new computers and upgraded software in order toimprove internet access and provide state-of-the-art skills training; 11 university librariesare receiving funds to enhance student and faculty access to the latest global informationin the fields of science, business, and economics; and scholarships are being provided for1,500 students to attend technical and vocational colleges.

These investments in education are empowering a new generation of Palestinians to beproductive members of their society and effective future leaders of their country. Since2000, the West Bank/Gaza Strip Mission of USAID has provided US$27 million to increasehigher education and training opportunities for Palestinians. The programme targetsuniversity students, universities, and the training of professionals, including the MEHE.

UNESCO

UNESCO recently conducted training on the modular system and developing modularcurricula. It is currently supporting a review of the TVET strategy to come up with amonitoring and costing plan for the strategy implementation plan.

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European Union

The establishment of the multi-purpose TVET centre aims to provide an on-the-groundpilot for a TVET institution that offers multi-level training for both youngsters and adults in away that is efficient, effective, and relevant to the needs of the labour market, as advocatedby the national TVET strategy. The centre has physical resources, human resources, andcurriculum development components, besides providing models for centre managementand cost recovery.

Belgium

In September 2005, Belgium started a major programme of support to the TVET curriculumdevelopment process.

SDC

The Swiss Agency for Development and Cooperation (SDC) set up and supported theExpert Team on TVET (1996–2001) that laid the groundwork for many of the TVETnational development strategies and plans.

World Bank

The World Bank supported the piloting of establishing vocational specialisations within theacademic schools.

Netherlands

The Netherlands spearheaded the development of the agricultural branch of TVET.

CIDA

The Canadian International Development Agency (CIDA) supported the efforts of theMinistry of Social Affairs in developing its Training and Rehabilitation Centres.

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ANNEXES

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ANNEX 3: HUMAN RESOURCES DEVELOPMENT ANDINVESTMENT

Source: Masri, M., Technical and vocational education and training in Palestine – Recommended actions, 2001

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SOCIAL, ECONOMIC, CULTURAL FRAMEWORK AND CRITERIA

Outputs of formaleducation system

Outputs of non-formaleducation system

Outputs of formal &non-formal VET

Outputs of in-servicetraining programmes

Dropouts from variousstages of education

Guest workers

Requirements ofvarious development

sectors

Requirements of thevarious vocational

levels

Characteristics of theworkforce

Requirements of theexternal labour market(external emigration)

Replacement due toretirement and death

Legislation

Occupational levels,classification &

standards

Information systems

Research &development

Institutional linkages

Awareness &information services

Counselling &guidance services

Employment &labour services

Various activities(conferences,seminars, etc.)

SU

PP

LY

DE

MA

ND

Human resources development Human resources investment

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ANNEX 4: BASIC LABOUR STATISTICS

Source: Based on PCBS Labour Statistics, 2004

59

ANNEXES

Labour force (40.4%)790,000

Population (100%)3,638,000

Individuals under 15 years old (46.3%)1,684,000

Individuals 15 years old & above (53.7%)1,954,000

Persons outside labour force (59.6%)1,164,000

Studying (31.5%)366,000

Elderly/ill (9.8%)114,000

Housekeepers (50.8%)591,000

Other (7.9%)92,000

Employed (66.8%)528,000

Underemployed (6.4%)50,000

Unemployed (26.8%)212,000

Agriculture (15.9 %)Manufacturing (12.7%)Construction (11.7%)Commerce & hotels (19.4%)Transportation (5.4%)Services (34.9%)

Employers (3.5%)Self-employed (27.8%)Waged employees (57.3%)Unpaid family members (11.4%)

West Bank (64.1%)Gaza Strip (27.2%)Israel & settlements (8.7%)

0 year schooling (1.2 %)1–6 years schooling (18.6%)7–9 years schooling (28.1%)10–12 years schooling (32.6%)13+ years schooling (19.5%)

15–24 years old (35.0 %)25–34 years old (32.1%)35–44 years old (20.7%)45–54 years old (9.1%)55+ years old (3.1%)

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ACRONYMS

CIDA Canadian International Development Agency

DSP Development Studies Programme (at BirZeit University)

ETF European Training Foundation

FPCCIA Federation of Palestinian Chambers of Commerce, Industry and Agriculture

GDP gross domestic product

GNI gross national income

GS Gaza Strip

GTZ Deutsche Gesellschaft für Technische Zusammenarbeit

HRD human resources development

ILO International Labour Organisation

IMF International Monetary Fund

IT information technology

MAS Palestine Economic Policy Research Institute

MEHE Ministry of Education and Higher Education

MoL Ministry of Labour

NGO non-governmental organisation

oPT occupied Palestinian Territories

PA Palestinian Authority

PalTrade Palestine Trade Centre

PCBS Palestinian Central Bureau of Statistics

PFI Palestinian Federation of Industries

PGFTU Palestine General Federation of Trade Unions

PLO Palestine Liberation Organisation

SDC Swiss Agency for Development and Cooperation

SME Small- and medium-sized enterprise

TVET technical and vocational education and training

UN United Nations

UNDP United Nations Development Programme

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UNESCO United Nations Educational, Scientific and Cultural Organisation

UNRWA United Nations Relief and Works Agency (for Palestine Refugees in theNear East)

USAID United States Agency for International Development

VTC vocational training centre

WB West Bank

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BirZeit University, Human Development Report 2004, BirZeit University, 2005.

DSP, Survey 19, BirZeit University, West Bank, 28 September 2004.

FPCCIA and ILO, Role of small-scale enterprises in the Palestinian economy, 2001.

Hashweh, M., Education and training in Palestine, 1998.

IMF, Economic performance and reform under conflict conditions, September 2003.

Masri, M., Technical and vocational education and training in Palestine – Recommended

actions, 2001.

MEHE, Expansion and annexation wall and its impact on the education process, Ministry ofEducation and Higher Education, 2004.

PCBS, Impact of the expansion and annexation wall on the socioeconomic conditions of

Palestinian households in the localities in which the wall passes through, PalestinianCentral Bureau of Statistics, Ramallah, July 2004.

PCBS, Land Use Statistics, Palestinian Central Bureau of Statistics, Ramallah.

PCBS, Poverty in the Palestinian Territories (January–December 2004), PalestinianCentral Bureau of Statistics, Ramallah, 2005a.

PCBS, Special report on 57th

anniversary of Al Nakba, Palestinian Central Bureau ofStatistics, Ramallah, 2005b.

PCBS and MAS, Quarterly Economic and Social Monitor, Palestinian Central Bureau ofStatistics and Palestine Economic Policy Research Institute, Ramallah, April 2005a.

PCBS and MAS, Quarterly Economic and Social Monitor, Palestinian Central Bureau ofStatistics and Palestine Economic Policy Research Institute, Ramallah, July 2005b.

Sabella, B., The situation of Palestinian Christians: Some food for thought, 2004.

Sayigh, Y. and Shikaki, K., Strengthening Palestinian public institutions, Independent TaskForce Report, Council on Foreign Relations, New York, United States of America, 1999.

The impact of Israel’s separation barrier on affected West Bank communities, Report of theMission to the Humanitarian and Emergency Policy Group of the Local AidCoordination Committee, 4 May 2003.

UNRWA, Statistical Yearbook 2002–03, 2004.

World Bank, A review of employment generation schemes between October 2000 and

January 2002, World Bank, Washington D.C., 2002.

World Bank, Disengagement, the Palestinian economy and the settlements, 23 June 2004,World Bank, Washington D.C., 2004a.

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prospects, World Bank, Washington D.C., 2004b.

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