Introduction
Formal sector based on-the-job training
Traditional apprenticeship
Other models of enterprise based training in the informal sector
Conclusions
Historically, whether in the formal or informal sector, work itself has been the site of training. Although the twentieth century has witnessed a major shift in emphasis towards school and post-school based training, recent years have been characterised by a revival of emphasis upon on-the-job training and upon close links with the enterprises (World Bank 1991a). In developing countries this has led, inter alia, to an increased recognition of the successes of Latin American national training agencies, and a realisation that on-the-job training in the informal sector is often a highly organised and successful phenomenon (Fluitman 1994). On the other hand, we should guard against the pendulum swinging too far in favour of leaving training to the employers, and note the reminder by Caillods (1993: 5): 'No country can rely on enterprises alone to train its workforce'.
As we saw in previous chapters, these insights have been accompanied by a more general trend towards the questioning of the role of the state and a stress on the efficacy of market forces. This faith in the market and in the importance of diversifying training provision has received major prominence in the developing world due to its adoption by the World Bank and the International Monetary Fund. The clearest exposition of this view in the context of training is to be found in the World Bank policy paper, Vocational and Technical Education and Training (World Bank 1991 a).
In this chapter we shall consider how these debates find different expression in the contexts of the formal and informal sectors. As our concern is primarily with the informal sector this will provide the major focus of our attention. Nonetheless, we shall argue that changes in formal sector-based training practices can also have an indirect impact on the informal sector. When we come to consider the informal sector we shall consider existing models of training which have been generated within the informal sector. We shall also consider attempts with varying degrees of success both to intervene in and to mimic such models. Finally, some interventions which attempt to develop appropriate modern models will be explored.
The ability of the formal sector to provide training is constrained by prevailing economic conditions. In the era of structural adjustment, the sector is often shedding labour rather than embarking on ambitious training programmes, Industry is focusing increasingly on job-specific skills. This can lead to a potential conflict between industrially- and societally- optimal levels and types of training. The training system frequently reflects complex historical relationships between the state, employers and trade unions, rather than the real skill needs of the economy (Carnoy 1980). Industry shows far more concern with efficiency than equity and tends to discriminate against, rather than in favour of, disadvantaged groups. 4
4 This is often rational, rather than ideological, as workers already employed will often refuse to cooperate with the hiring of labour from such groups, e.g. Mothobi (1978) on worker/employer attitudes in Rhodesia: perhaps an extreme, but nonetheless valid example.
Evidence from the OECD countries suggests that good on-the-job training is dependent on a number of factors (Lauglo 1994). In Japan, the pedagogical skills of supervisors; a strong, company-fostered ethos of personal self-development; job rotation; and quality control circles all appear to be essential to the promotion of skill development within the firm (Sako 1994). In Germany, firms have a powerful long-term commitment to raise the skill level of the workforce (Caillods 1993), and have key training role models such as the meister at the heart of process.
In reality there is little in the way of pure on-the-job training. Indeed, research comparing matched English and German factories suggests that productivity differences arise primarily from the higher level of formal, off-the-job training found in Germany's 'dual system' (Mason 1994).
In Germany, and in other countries that maintain a dynamic, modern apprenticeship, it is the combination of work-based TVET with an exposure to further skills in the linked institutional training of these 'dual' systems that gives this form of apprenticeship an advantage over training that is merely on-the-job In addition, the quality of this apprenticeship is crucially associated with the interests of the employers and their organisations in financing it, setting its standards and certification, and actively seeking its development. (King 1994a)
It is not the function of the formal sector to provide training for the informal sector. However, it is clear that significant numbers of formally-trained workers do move to the informal sector (Turnham et al 1991). Therefore, improved training in the formal sector can mean better skills preparation for the informal. For entrants into both sectors there is a need for training which is more flexible as a response to rapidly changing technology. It might be advantageous if those likely to move across the sectoral boundaries could be identified and supported (Abuodha and King 1991). This could take the form of a short orientation programme focusing on the key entrepreneurial skills they are perceived to be lacking (Hailey 1994).
There are obviously major practical problems in arranging any such systematic orientation within the formal sector itself for those that might at some point make a transition to self-employment For one thing, these transitions may take place as much as ten or twenty years after joining the firm. They are not predictable, and in many cases, it is some of the best and most experienced workers who take the decision to work on their own. It is hard to see firms making it easier for them to leave.
On the other hand, as adjustment policies bite more deeply in a number of countries, formal sector workers continue to be cut back, both from government ministries and parastatals (Ghana is an example of quite large numbers being 'redeployed'). It is usually stated that such workers must become absorbed in the informal sector. Workers identified for compulsory redeployment may well be very different from those who have gradually acquired considerable skill and technology, and are ready to start on their own.
There is a further point that should be made about workers acquiring skills in wage employment that may later be utilised in self-employment: acquisition of such skills can be the result of a deliberate training policy in the firm, or it can take place, on-the-job with no explicit training arrangements. Again, the very informality of much skill acquisition within the formal wage sector makes its difficult to identify and develop mechanisms that can be used more widely.
World-wide, training which takes place on-the-job in the informal sector is a common experience. However, the degree to which this is explicitly called or considered to be an apprenticeship, and the extent to which the system is formalised are highly variable. In Egypt, for example, training through a guild system remained the norm until a hundred years ago (Assaad 1993) and still influences training today. In several West African countries, as we shall see, there is a highly formalised traditional apprenticeship system. In Chile and other Latin American countries, as well as in East and Central Africa, however, reaming on the job is much less structured.
The size of the traditional apprenticeship system in many developing countries is one factor which makes it so worthy of closer attention. Even in Kenya, with its well developed training system, there are more apprentices enrolled in the informal sector than trainees in the formal system (Ferej 1993; Oketch 1993). In Egypt, 83.5% of craftsmen acquire their skills through traditional apprenticeships (Assaad 1993: 931).
It is also significant that whilst the formal training system must admit to very low rates of labour market absorption for its graduates, the traditional apprenticeship system appears to have little or no such problem. Recent research in Kenya, for example, claims the informal sector has a 100% absorption potential (Ferej 1993).
So, as we turn now to examine local apprenticeship in Africa and elsewhere, we must continually recall that for many developing countries this is still by far the largest system of training for informal sector. Unlike the many small pilot schemes we have alluded to in other chapters, this is a mass system, responsible for tens and hundreds of thousands of young people, depending on the country or the region.
Characteristics of the Traditional Apprenticeship System
In using the term 'traditional' of apprenticeship we are not so much suggesting that it is unchanging which is not the case - but pointing to the fact that this is a local variant of skill learning as opposed to the various Western versions of apprenticeship that were imported during the 1950s and 1960s in many developing countries (King 1977). With few exceptions, these formal Western apprenticeship systems have remained extremely small as compared with the local, indigenous or traditional systems.
In West Africa in particular (e.g. Cote d'Ivoire, Ghana, Nigeria and Togo), the traditional apprentice system is highly formalised. Elaborate contracts are agreed between masters and the families of prospective trainees. The amount to be paid in fees and the allowances provided by the master are agreed upon. When the apprenticeship period is complete a large and costly graduation ritual is enacted (King 1990a).
The training period is not fixed, but is dependent on the master's satisfaction with the quality of the apprentice's work. On average in West Africa the apprenticeship period is three to four years (Fluitman 1994). Although there is much less detail on Eastern African systems (Scaly 1993), the apprenticeship period appears to be considerably shorter in that region (Abuodha and King 1991; Ferej 1993). Even in West Africa, there is considerable variation according to the particular trade (Fluitman 1994).
Apprentices learn primarily through observation followed by trial and error. The tasks performed and the skills learned are organised by the master or, on occasion, his journeymen or senior apprentices. Some masters follow training plans, although these are frequently unwritten (Fluitman 1994). In certain areas, for example Cote d'Ivoire and Ghana, trade associations have taken a lead in systematising training provision. Unfortunately, however, theoretical aspects of the trade tend to be ignored. Note taking amongst apprentices is rare and asking too many questions discouraged (Fluitman 1994).
Typically, traditional apprenticeship begins with a period of orientation during which the new recruit is expected to learn the discipline of the workshop through carrying out menial tasks such as cleaning and running errands (Fluitman 1994). They are then introduced to the tools and materials of the trade and are given increasingly complex tasks to carry out. In the later stages of their apprenticeship they will be given responsibility for finishing pieces of work, dealing directly with customers and supervising junior apprentices. The master may even leave them in charge of the enterprise on occasions (King 1990a).
The training thus obtained is more than a simple technical preparation. The managerial and business skills learnt during the apprenticeship period are central to the apprentices' future survival as entrepreneurs (Fluitman 1994).
On completing their training few start their own businesses immediately. Instead, the typical career path after apprenticeship starts with several years of wage-employment, and culminates in establishing an enterprise (Grierson 1993; Mead and Kunjeku 1993). This period of employment, usually still in the informal sector, is seen as necessary in order to gain further experience. More importantly, it is a period in which to save the capital necessary to launch a new business.
Advantages
Traditional apprenticeship is characterised by relative ease of entry (Fluitman 1994). Although fees may be quite high, they are typically more than recovered in the form of allowances from the master during the training period. The fees are in any case much lower than those of private VTIs. Therefore, the traditional apprenticeship system is far more accessible to the more marginal societal groups than is the formal training system. In certain trades, however, the traditional apprenticeship system has been restricted in the sense that masters have tended to recruit apprentices from their own caste or tribe, or through what Macharia (1988) terms traditional social networks. However, it appears that the market is rapidly becoming a more important determinant in trainee selection in West Africa (Fluitman 1994), and this freedom from traditional obligations is also more obvious in the cities of East Africa (Walsh et al. 1991).
One key advantage enjoyed by traditional apprentices over their formal sector counterparts in that they have far greater opportunity to observe and participate in business activities. Contacts with the masters' clients increase as training continues and can help greatly with the development of the apprentices' own clientele when they go into business on their own (Grierson 1993).
Barriers to entry into self-employment are significant and are social as well as economic. As we saw above, these economic barriers can be broken by a period of wage-employment, usually working for a master within the informal sector. However, it has been argued that the social barriers are much harder to overcome (Grierson 1993). Small enterprises exist within a series of overlapping social networks of customers, suppliers, creditors, family, etc. A variety of such networks is necessary to establish and sustain a new enterprise. Therefore, access to self-employment is constrained by the individual's ability to profit from or initiate such networks. Inevitably it is those who are most disadvantaged who have the least access to existing networks (Grierson 1993).
One of the most important advantages of the traditional apprenticeship system is the access it provides apprentices to the well-established networks of their masters (Assaad 1993). Such access is further enhanced by the existence of vibrant trade associations, e.g. amongst motor mechanics in Ghana (Abban and Quarshie 1993) or jewellers in Cote d'Ivoire (Fluitman and Sangaré 1989). Traditional apprenticeship, therefore, provides two essential requirements for self-employment: marketable skills and social networks.
Disadvantages
The coverage of the system is by no means universal, however, whether in terms of countries or types of activity. Whilst examples of similar models can be found throughout the world, even in Africa certain regions, such as Southern Africa, have poorly developed systems. Significantly, apprenticeship is rare in some, although not all, traditionally female areas of activity, e.g. soap-making (Birks, Sinclair and Fluitman 1990). Indeed, it may be seen that traditional apprenticeship is usually concerned with artisanal crafts rather than tertiary or service activities (Fluitman 1994).
The traditional apprenticeship system experiences significant levels of drop out. Some trainees cannot cope; find that the trade is "not for them"; or have bad relations with their masters. Drop out rates are in the region of 20 to 25% (Fluitman 1994). Significantly, rates tend to be lower in more traditional skill areas (Fluitman 1994). This may be due to the greater survival of recruitment by kinship in these trades, and to a sense of intergenerational commitment to the trade within the kin or family group. However, it may be due equally to the lower levels of education (and, hence, more limited alternative opportunities) of the typical apprentices in these fields.
The form of training provided also has its limitations. The quality of the skills learned by the apprentice is very dependent upon the skills of the master. It is rare that apprentices have access to the latest techniques or tools appropriate to their tasks. The business skills learnt are also often rudimentary, particularly in the sphere of record keeping (Fluitman 1994). Traditional apprenticeship has been criticised for excessive trade sub-division. This means that traditionally trained workers are good at what they know, but are often poor at adapting to new situations (Assaad 1993). The tendency is towards producing improvisers rather than artisans with sufficient theoretical knowledge to become innovators (King 1977, Turnham et al 1991, De Moura Castro and Bas n.d.).
Possible Links with the Formal Training System
There has been for some 30 years since these local systems of skill training were first noted for their scope and coverage (Callaway 1964), a sometimes unfortunate temptation to see how connections between formal and informal sector could work to the advantage of one or the other. Projects have been designed to do something about this alleged lack of theory in the informal sector or to provide realistic training or work places for the young unemployed. From another angle these linkage schemes can be seen as attempts to introduce elements of the German dual system into the traditional learning arrangements, in the sense of arranging for access to formal trade theory as well as to a coherent training on the job.
A possible way of developing links between the informal and formal training systems is through internships for VTI students in the informal sector. This could provide an alternative industrial attachment to the conventional period of work experience in the formal sector. As a result of the experiences that VTI staff also would gain from visiting their students in the informal sector settings, VTIs might wish to provide short courses which address particular needs of the informal sector.
Whether generated in this way or not, short, upgrading courses appear to have had some potential for reaching informal sector actors. An example of such courses comes from Ghana. Here, the Ghana National Association of Garages (with World Bank funding) has organised courses for both masters and apprentices. There are six week skills upgrading courses for master mechanics and twelve week courses for apprentices run by the Kumasi Technology Institute (Abban and Quarshie 1993). These courses focus on the techniques and machinery to be found in the formal sector. A four week course for masters is also run by the-Management Development and Productivity Institute (Abban and Quarshie 1993). This course is primarily aimed at maximising the efficiency of resource use and facilitating subsequent product diversification. Both of these are key factors in determining the success of an artisanal micro-enterprise.
This programme has achieved skills upgrading for a significant number of informal sector actors (albeit within a single group of allied trades). However, evaluation has pointed to certain key weaknesses that other programmes of a similar kind should seek to overcome (Abban and Quarshie 1993). Three principal issues can be identified here. Firstly, it is essential to carry out a needs assessment that will ensure a good match between the requirements of the informal sector and the capabilities of the VTI. Secondly, there is the need to link training to other services (a point we will return to in later chapters). Thirdly, there is the need to achieve significant levels of cost recovery and sustainability (this programme has thus far been 100% subsidised by the World Bank).
It is necessary that any intervention be based on a thorough understanding of the nature of the system being aided or strengthened. Too often there is a temptation to indulge in technical fixes, which perceive shortcomings of informal sector training in terms of lack of inputs, e.g. trade theory. Such interventions can run the risk of seriously altering the social and economic dynamics of the sector. The traditional apprenticeship system has flourished without outside help and will doubtless continue to do so. Any assistance proffered must take cognisance of this fact and must be conceived and presented appropriately.
The importance of this is illustrated by an example from Nigeria. The National Open Apprenticeship System (NOAS) is a dramatic attempt to use the traditional apprenticeship system as part of a national training programme. The scheme is unique for the scale on which micro-enterprises and workshops in the informal sector are used as suitable sites for the training of additional young people, beyond the 'traditional apprentices' the masters have already recruited. NOAS seeks to tap into this local system as well as sending its trainees to large-scale organisations such as the Nigerian Railway Corporation (King 1990a; Lohmar-Kuhnle 1992; Adam 1993).
Wherever they are sent, these NOAS trainees receive a log book with a space for brief descriptions of the work done daily and another for trainers' comments. There is also a page for a weekly summary comment by the trainee, as well as sections for the comments of visiting training coordinators. Saturday morning theory classes (held in schools or other suitable local buildings and provided by hourly-paid part-time trainers) were planned for trainees whose work lacked a sufficient theoretical component (King 1990a; Adam 1993).
This was an impressive innovation and provides several ideas that may merit wider application. However, it also illustrates many of the problems faced by a programme which seeks to intervene in and improve the traditional apprenticeship system. It was difficult to organise the Saturday classes on a regular basis. Also, NOAS trainees do not sign the traditional apprenticeship agreements like their conventional counterparts. Their training period is also much shorter than that of the traditional apprentices (King 1990a). Moreover, it is unclear whether the NOAS students can expect to obtain the same graduation certificate as other apprentices as their conditions of service are so different.
The presence of the new style trainees has led to friction in many micro-enterprises and some traditional apprentices have sought to extricate themselves from their contracts (King 1990a). The provision originally of a state stipend (to both trainee and master) was also a significant factor which may have initially affected the attractiveness of the traditional apprenticeship system. The shorter on-the-job working week caused by the release for trade theory was also a potential source of conflict with traditional apprentices, as well as with masters. Thus, increased training provision has been at the cost of threatening the stability of the traditional system (Adam 1993).
Links with the Formal Education System
Levels of formal education amongst trainees within the informal sector appear to have been increasing for a long time already (McLaughlin 1979). It seems to be the case that a good basic education facilitates access to traditional apprenticeship, and enhances subsequent performance as an entrepreneur (Utria and Salomé 1994). The advantages of better levels of formal education are likely to be most obvious in the more complex and technical fields such as electrical repairs (Utria and Salomé 1994). However, as was noted above, those with higher levels of schooling are the most likely to drop out of their training.
Education levels in the informal sector will inevitably rise as part of any national increase. However, there is a danger in attempts that seek to raise the education levels of the sector independent of such natural increases. Raised educational levels of traditional apprentices in such a context will inevitably lead to reduced access for the most disadvantaged.
There are very few examples of explicit links between the formal education system and the informal sector. It is of interest, therefore, to examine one recent attempt to create such a link. In Ghana, the Integrated Community Centre for Employable Skills (ICCES) attaches trainees after junior secondary school to master craftsmen for a period of two years. This period is certificated and is followed by a further year of theoretical training at a VTI. Subject to their performance these trainees may then be admitted into senior secondary school (Boeh-Ocansey 1993). It is clear, therefore, that such training may lead to leakages into higher academic institutions rather than bring the advantages of further education to the informal sector. However, it will be interesting to see the future career paths of trainees under this system.
Links with On-the-Job Training in the Formal Sector
Although the primary route to the establishment of an artisanal enterprise in the informal sector is perhaps through the various forms of the traditional apprenticeship system, there are a sizeable number of artisans that have entered the sector from formal sector industries (Mead and Kunjeku 1993; Oketch 1993).
The precarious nature of the formal sector in many parts of the world has forced formal sector employees to engage in further activities in the informal sector (King 1993). Indeed, many of those who eventually leave the formal sector to operate solely within the informal sector, first establish their informal sector enterprises whilst still working in the formal sector (Oketch 1993).
Intervention
The issue of intervention in the traditional apprenticeship system is a controversial one. However, there appears to be a case for arguing that some attempts should be made to improve upon a system that already works reasonably well. Nonetheless, it is essential that any interventions should be acceptable to the informal sector, affordable, and directed at improvement rather than formalisation for its own sake. All these factors, and the experience of NOAS, perhaps point to a further conclusion. That is, interventions with national coverage may fail to bring additional benefits to the traditional apprenticeship system due to problems of cost and organisation
Masters and apprentices are not necessarily opposed to interventions. The GNAG programme above illustrates this clearly. However, their support is more likely for programmes which seek to involve them fully in planning and implementation. Furthermore, interventions which respect and, hence, reflect the cultural norms of the sector are needed to minimise the dangers of destroying the vitality that is at the heart of the success of the traditional apprenticeship system. For these reasons, interventions which seek to strengthen informal trade associations may be particularly valid.
An example of where this has been attempted with donor support (in this case World Bank) is again provided by the case of GNAG. In February 1993, GNAG was involved in the establishment of the Council of Indigenous Business Associations (CIBA) (Boeh-Ocansey 1993). The other members of CIBA are as follows:
· Federation of Ghanaian Jewellers
· Federation of Market Women
· Ghana Cooperative Bakers Association
· Ghana Hairdressers and Beauticians Association
· Ghana National Tailors and Dressmakers Association
· Ghana National Traditional Caterers Association
· National Association of Refrigeration Mechanics
· National Association of Traditional Healers
· National Drinking Bar Operators Association (Boeh-Ocansey 1993)
The possibilities of such an intervention can also be illustrated by an example of NGO-trade association collaboration from Uganda.
In 1979 the Uganda Small Scale Industries Association (USSIA) was established by 200 local entrepreneurs as a vehicle for representing their interests to the government. It also provides managerial and technical training to its membership. Since 1990 USSIA has been collaborating with ApT, a UK-based NGO. This collaboration has had two objectives: the strengthening of the association's capacity and the enhanced provision of services to its membership (ApT 1993b).
Training is only provided to paid up USSIA members and on the condition that they contribute to covering course costs. ApT, in turn, has a tradition of designing intermediate or appropriate technologies, and teaching their manufacture in intensive courses to existing masters. This has been reflected in their work in Uganda, as well as in Kenya. The technical training courses run are specifically targetted at filling technology gaps in particular industries. A set of ApT-designed tools, including metal shears, vices and mills, is produced by the masters on the course, with the expectation that they will be replicated and used in a range of small workshops throughout Uganda. This could have a significant positive effect on productivity (ApT 1993b), but thought has to be given about increasing competition through the spread of technologies (King 1994c).
ApT and USSIA realise that technical training in isolation is insufficient. Therefore, a number of book-keeping and management courses have been organised . Links have also been established with agencies which are able to provide credit for small scale enterprises (ApT 1993b).
One important aspect of this example is that the association involved is representative of a wide range of informal sector actors from very diverse backgrounds. As well as metalworking artisans, more subsistence level food processors are also represented (ApT 1993b). A large number of women are members of USSIA and their specific needs and interests are reflected in a number of the courses supported by ApT.
In all these different kinds of interventions, what is evidently not required is an attempt to overformalise the system. This might happen through the imposition of legislation from the formal apprenticeship model. Alternatively, there is often a tendency for ministry officials to ensure high standards through a formal testing and certification system. Formalisation of certification could lead to a requirement that traditional apprentices in car mechanics in Togo, for example, are required to write essays on fuel injection before they can receive a formal certificate (Fluitman 1994).
Examples of successful interventions in the traditional apprenticeship system remain few in number. Furthermore, they have typically focused on improving the quality of existing provision. Therefore, it is worth considering at some length one programme using a "supervised traditional apprenticeship model" (LaTowsky and Grierson 1992) which was specifically concerned with the question of access (in this case of refugees).
The Refugee Enterprise Development Programme (REDP) was established in North West Somalia in 1985. Unfortunately, the descent of Somalia into civil war led to the cessation of the programme in 1987. Prior to this, however, REDP had proved to be highly successful. In the 15 months that the programme was running over 250 apprentices from refugee communities received training in 17 different skill areas (LaTowsky and Grierson 1992).
The programme appears to have been established with no pre-conceived idea of what skills were necessary. The potential trainees themselves were responsible for selecting the skills they wanted to learn. REDP then undertook market opportunity surveys (LaTowsky and Grierson 1992). An identifiable market opportunity was a necessary rather than a sufficient criterion for establishing a training programme, however.
The selection criteria were as follows:
· a minimum of 3-5 interested trainees per programme;· a local business person willing and able to provide the necessary training;
· the feasibility of capitalising the new enterprise proposed by the trainee with less than US$50 (local currency equivalent);
· the ability of the trainee to mobilise the credit her/himself;
· a demonstrated market demand at the self-employment level;
· the feasibility of acquiring entry-level skills for self-employment within 6 months. (LaTowsky and Grierson 1992)
The programme's utilisation of existing business people as trainers brought several advantages. It reduced the need for REDP to tie up large amounts of capital in machinery and equipment. This meant that the programme could swiftly adapt to changes in market opportunities (LaTowsky and Grierson 1992). The trainers used had an intimate knowledge of the business realities of the trades they were training for and the training closely reflected the work environment that trainees would experience once established in business (LaTowsky and Grierson 1992).
The willingness and the ability of the prospective master were both considered to be vital by REDP. Similarly, the aptitude and attitude of the potential trainee were carefully scrutinised. REDP did not conduct an aggressive recruitment programme as it wished to attract only the serious applicant. The criterion regarding the raising of capital by the trainee was also seen as a test of entrepreneurial potential (LaTowsky and Grierson 1992).
The master and REDP collaborated in the selection of the trainees and in the development of a training package. REDP had a formal contract with the masters, as did the trainees. REDP paid a master's fee and provided an apprentice's wage which was half the market rate for a labourer. 5 This was paid to the master, who then paid the apprentices. These arrangements were important in that they ensured that a "real" commercial relationship was established between master and apprentice (LaTowsky and Grierson 1992).
5 This reflects the reality of traditional apprenticeship where apprentices' wages are initially well below those of ordinary labourers (Assaad 1993). In the traditional apprenticeship system the apprentices' wages rise as their productivity increases.
REDP did help to facilitate trainees' access to sources of credit. However, it was assumed that internal sources of financing are available in many cases, even in the most disadvantaged of communities.
REDP appears to have been a successful and relatively low cost approach. Both of these factors arise out of an attempt to understand and co-opt traditional mechanisms. Particular attention also was paid to the fostering of enterprise networks, a key determinant of sustainable self-employment, as we saw above.
So far we have considered examples situated in, or inspired by, the traditional apprenticeship models of sub-Saharan Africa. Nonetheless, there are programmes from other regions which might repay closer analysis. One such programme, which seeks to create new micro-enterprises rather than use existing ones, is that of the Don Bosco self-employment Training Institute (DBSETI) in Calcutta (Grierson 1992).
Initial technical training takes place for 6 months in the Don Bosco Vocational School. At the point of enrolment DBSETI assists in the establishment of the trainee as a micro-entrepreneur by facilitating equipment finance and through the provision of workshop space. Thus, in a real work situation the DBSETI staff are able to instruct trainees in the technical and business skills necessary for their trade (Grierson 1992).
Another interesting case study also comes from Calcutta: that of the All Bengal Women's Union Shoe Project (Sridhar n.d.). In 1988 the union entered into an alliance with Bata, the transnational shoe manufacturer, with financial support from NORAD. The union provided workshop, office and residential facilities for the trainees. Bata provided raw materials, training staff, a guaranteed market, product design and development, and quality control. 45 women from highly disadvantaged backgrounds were trained in all aspects of the production process. 35 of these still work in the project, another 6 in the leather industry. The four drop outs all left on the account of marriage. Those remaining in the project earn much more than the average income of those in income generation schemes, and the project has achieved total financial self-sufficiency (Sridhar n.d.).
Strictly, this project is not operating within the informal sector. However, its members are very typical of those women who would normally be seen as having very little economic potential and who inhabit the lower tier of the informal sector. As such it is an important reminder of the potential of all to benefit from well designed training.
Further variations on this approach are found in the Pak-German Technical Training Programme (PGTTP) in Northern Pakistan, a GTZ funded programme. Here, on-the-job training is provided in three locations: in the traditional apprenticeship mode; on construction sites; and in supervised workshops (Khan 1993). PGTTP has been successful in spite of the considerable local tensions existing between Pakistanis and Afghans, and, more seriously, between the seven rival mujahedeen factions.
PGTTP is an example of a programme with social objectives in that it is aimed at a particular group because of their needs rather than their economic potential. In this case, market opportunities do then help to determine the nature of training provided. However, the practical training groups, centred on construction sites, also focus on a particular material need of the target group. 750 houses, 150 schools, 100 km. of water pipes, septic tanks, health posts, mosques, churches and other buildings had already been constructed by the beginning of 1993 and a hospital was among the buildings under construction (Boehm 1993). This programme has provided training to its clients and much-needed buildings to the wider community. Furthermore, it has achieved high levels of cost-recovery in the process (Boehm 1993; Khan 1993).
Similar programmes are found in several Latin American countries. The most successful version is perhaps that of SENA, the Colombian national training agency. For many in the barrios of Latin America, adequate housing is a dream, rather than a reality. SENA has combined the achievement of this dream with community animation and technical training in its Self-Building Programme (Ducci 1991).
The programme recognises that for some members of the community groups brought together for the building programme the building of their own house will be the culmination of the process. However, it is equally aware that for others the skills gained will be utilised in the future to earn a living, either in wage- or self-employment. For the latter group, there is the possibility of using their experience of the Self-Building Programme as a foundation upon which further training can be built. This programme has operated in rural areas also, and there has led on to small-scale public works programmes such as micro-irrigation schemes (Ducci 1991).
Even though 'the traditional apprenticeship' model is quite limited in its geographical and sub-sectoral scope, certain of the examples above suggest that interventions which set out to replicate certain of its key features can be highly successful. Such programmes are showing signs of success even in circumstances where there has been no tradition of informal sector artisanal training or production, including in the former Soviet Union (Grierson 1994). These interventions are best managed by agencies which reflect as closely as possible the organisational culture of the sub-sector(s) being targetted (Menu and Gibb 1990). Furthermore, these examples point to the possibility that it is the siting of the training process within a productive enterprise that is the key factor explaining project success.
Enterprise based training has many advantages over preparation either in schools or VTIs. However, it is clear from the literature that an element of theory training is a further vital ingredient in skill development. What also immediately emerges from the literature is that there is no generalisable model of best practice. Whilst there have been recent reforms in on-the-job training in many countries, such reforms have taken a variety of paths (Lauglo 1994). What constitutes a well-functioning training system is largely societally determined and must reflect the economic, cultural and political environments and discourses of specific countries.
Nonetheless, there are broad points which do begin to emerge from diverse and particular experiences. Reforms in the formal sector are already underway and a debate exists over their possible development. It is not realistic (and might not be desirable) for those concerned with the informal sector to expect to use this reform process to address directly the issues of the informal sector. There is, however, a strong case for coordination of policies and programmes directed at both sectors. This is desirable in order to avoid situations in which policies for both sectors conflict. Moreover, there is a further, more important, reason. Namely, that wherever possible, support to the informal sector should be treated on equal terms with support to the formal sector.
The informal sector is not simply a social welfare case but a major contributor to national income. A coordinated response reflecting this has proved easiest to achieve in Latin America where the national training agencies have long taken a cross-sectoral interest (Ducci 1991). In Africa, however, the informal sector has continued to be neglected by the state. It is to be hoped that other countries will follow Kenya in including policies for the informal sector in high level planning.
In many parts of the world, the informal sector is already a capable large-scale trainer. Traditional apprenticeship systems are culturally and economically relevant. Interventions should seek to alter only the weaknesses rather than the strengths of the system. The example of NOAS clearly illustrates the dangers of failing to respect the environment of the traditional apprenticeship system.
Those who are anxious to promote small enterprises should always look first at existing practices and institutions rather than attempting to start new ones. (Harper 1984:86)
The literature appears to show that successful interventions in the informal sector training system are possible. Sensitivity to the realities of the sector has already been stressed. One way of ensuring this is collaboration and capacity-building with existing guilds and trade associations. The examples from Ghana and Uganda show some of the possibilities and limitations of such an approach. It will also be of interest to follow the progress of emerging attempts to twin German and African guilds (Levitsky 1992).
Traditional apprenticeship, in its most formalised version, is geographically and sub-sectorally limited. Moreover it is generally most appropriate as a provider of technical and business training to artisans. However, these limitations do not mean that enterprise based training located in the informal sector cannot reach a wider constituency. The example of REDP from Somalia shows how artisans can be encouraged to create new "traditional" apprenticeship systems.
Other ways of turning general principles into context appropriate programmes come from experiences in other continents. The examples from India are particularly illustrative of how enterprise-based training can be targetted at the most marginalised in society. Furthermore, that social and economic benefits can be acquired through such programmes is well exemplified by SENA and PGTTP's successes in combining training with the creation of social infrastructure.
It has already been argued that there is no single correct model for enterprise based training. The above informal sector examples reinforce this. They use a great diversity of methods to reach a range of target groups. An important aspect of this diversity is the nature of the implementing agency. National training agencies, trade unions, artisanal associations, religious societies, indigenous and external NGOs, and bilateral and multilateral donors have all appeared as joint or sole implementors of successful projects.
Whilst some of our examples already cited, e.g. the shoe project from Bengal, have had a clear gender focus, many of the others have not. Yet even a cursory survey of the literature quickly brings the realisation that women are over-represented in the lower tier of the informal sector. It is also evident that there are a series of obstacles specifically relevant to their advancement which must be addressed in projects with women as part or all of their clientele. It is to a consideration of these issues that we now turn.
