Jobs, skills and the extractive industries: a review and situation analysis
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ORIGINAL PAPER
Jobs, skills and the extractive industries: a review and situation analysis Evelyn Dietsche 1 Received: 19 May 2019 / Accepted: 12 February 2020 # Springer-Verlag GmbH Germany, part of Springer Nature 2020
Abstract Host governments and communities commonly expect that the extractive industries provide jobs and contribute to skills development, especially in Sub-Saharan African countries where many young people join local labour markets in record numbers every year. This article reviews the literature and offers an empirically informed situation analysis on the demand and supply characteristics of the jobs and skills associated with the sector. Against this background, it discusses some challenges and implications for skills development interventions and offers some insights from the E4D/SOGA programme. Keywords Extractive industries . Resource dependence . Jobs . Skills development . Human capital
Introduction Whenever minerals are extracted from the earth’s subsoils, there are expectations that the sector will provide jobs and contribute to skills development in the host countries where these minerals are being explore and produced. This article reviews the academic literature on the links between jobs, skills and the extractive industries and offers an empirically informed situation analysis based on the author’s experience on this subject, as well as with the Employment and Skills for Eastern Africa programme (E4D/SOGA) implemented in Eastern Africa since 2015.1 There are several reasons why the subject of jobs and skills in the context of the extractive industries merits attention. First, over the past two decades, SSA countries have become 1 E4D/SOGA is an initiative of the E4D Programme (Employment for Sustainable Development in Africa), implemented by GIZ and commissioned by the German Federal Ministry for Economic Cooperation (BMZ), with co-funding from the UK Department for International Development (DfID), the Norwegian Agency for Development Cooperation (Norad), Royal Dutch Shell, Rio Tinto, Tullow Oil and Quoniam Asset Management GmbH. E4D/SOGA pursues a demand-led approach to skills development and includes activities that support entrepreneurship and selfemployment. For details, see: https://www.giz.de/en/worldwide/31947.html (last accessed 18 December 2018).
* Evelyn Dietsche [email protected] 1
Non-resident Research Associate, United Nations University World Institute for Development Economics Research, Helsinki, Finland
more rather than less dependent on exporting extractive resources (Roe and Dodd 2018). This is seen as problematic, because dependence is symptomatic for countries that fail to diversify their economies on the back of exploiting their resource endowments (Wright and Czelusta 2007). Second, it is often unclear and uncertain how many and what types of jobs the extractive industries can offer to local people, and whether the presence of these industries can help local people develop skills that enable them to take up employment in and around the se
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