Let us talk Unemployment, again

Unemployment is a growing concern in Bhutan. Everybody acknowledges it but recognition is just the first step to solving it. I reckon that we haven't progressed beyond this.

This will assume massive proportions as we have more students graduating while the intake in the private sector, the corporations and the Government tends to remain flat. A number of undesirable trends (drug abuse, vandalism, petty crimes, etc.) are attributed to unemployment.

It would be best if measures are quickly adopted to address this issue by our policy makers. The solutions shouldn't be short term fixes but should look reasonably into the future.

I have a few suggestions -

1. If recent reports such as errors in text books, inadequate supply of books and differing text books are any indications then our education system needs to be evaluated and remedied immediately. Quality is also seen as an issue in the education sector and many corporations allege that our graduates possess less or no relevant skills. Although I argued in an earlier post that it is wrong for employers to expect a perfect graduate, I would like our education to groom individuals with the essential analytical, communication and inter-personal skills (in addition to values and knowledge) that they can take to work.

2. After Ministry of Labour and Human Resources (MoLHR) was formed I expected to see more Bhutanese taking up blue-collar jobs especially in the construction sector. It hasn't happened! And I feel that MoLHR still has so much to deliver. In addition to the vocational institutes that the MoLHR runs, it needs to explore more creative and innovative ways to make these jobs attractive. What about working with relevant Government departments in drawing up tangible incentives for the private sector to employ Bhutanese workers? How about ensuring labour employment rules and regulations are fair to the employees? How about structuring a reward and benefit system that the workers perceive is sufficient and fair?

3. I don't understand why the Government does not encourage self-employment. The few entrepreneurship programmes are a step in this direction but it isn't enough. I would want the Government to encourage individuals to start small and medium enterprises (SMEs) based in the villages that would take advantage of local resources. Information on exploring business ideas, writing business plans and starting up a small firm (I wrote a little bit about this in an earlier post) should be provided by the Ministry of Economic Affairs (MoEA). The Government can ensure that such creative and entrepreneurial individuals have access to finance and the markets. In South East Asia SMEs employ up to 90% of the domestic workforce.

4. Finally, why can't the Bhutanese work outside? The Government knows that there is only so many people that can find employment in Bhutan. The government should facilitate (by way of information) and prepare (right competitive education) Bhutanese to look for jobs outside Bhutan (preferably India where we do not require work permits). In the long run, this will ease off some of the pressures on employment while generating revenues for the country.

Another Day, another proposal

1. The world's financial system has been taking consistent blows and is hugely shaken. Some banks went bust (Lehman Brothers, a 158 years old Investment Bank), some sold out (Merrill Lynch to Bank of Amercia) and some changed their business models (Goldman Sachs and Morgan Stanley are no more pure investment banks). Many lost billions while other financial insitutions (AIG, Fannie Mae and Freddie Mac) have disappeared. These are in America and UK and continental Europe hasn't been spared. 

2.  Oil reached $140 a barrel and has halved since then. Similarly prices of commodities are coming down.

3. The global economy outlook is at best very gloomy and leaders across the world are frantically trying to prop up the economy.

4. Gordon Brown rediscovered his leadership skills during this financial downturn even though this crisis is far from over.

5. Americans are closer to a new leadership with Obama projecting himself to be level-headed and succinct.

All these happened since the first reports of a pay revision in May. Even the Indian civil servants got a 22% pay raise in August which was done swiftly without any fuss.

We have taken our GNH to the UN General Assembly but has been extremely slow in taking this pay revision exercise to a reasonable finish. Rhetoric should be replaced by action and dithering by decisiveness.

A proposal a day isn't much of an achievement.

The last word!!

This has got to be one of the best resignation letters that I have ever read. 

Andrew Lahde, a Hedge Fund manager from California wrote this letter (opens in new tab) on closing his fund.

The books I am into!!

I briefly touch on some books I am reading/will be reading these days:

1. Small is Beautiful by E.F Schumacher

This book was mentioned by my humanities lecturer in regard to identifying, developing and using appropriate technologies years ago. But this book is not just about technologies, it is also about looking at Economics from a different perspective - taking into account the psychological and spiritual needs of the individual and our interaction with the environment... very much like our Gross National Happiness (GNH) philosophy. For GNH enthusiasts this book is a good place to start because it treats 'economics as if people mattered'

2. Hot, Flat and Crowded by Thomas Friedman

Friedman's 'The World is Flat' changed my perspective of globalisation. This new book promises nothing less and I look forward to reading it. 

3. Black Swan by Nassim Nicholas Taleb

I came across this book while doing some statistics as a part of my coursework. Taleb puts forward that events can be  black swans (opens in a new tab)- unpredictable, rare and having a large impact. Some examples are like the success of Google and the rise of internet. Read this book - and you will leave with a different perspective of way things happen.

The pay raise (Have already, have more)

The pay hike proposal , instead of effecting excitement and optimism among the civil servants, has engendered everything undesirable - disbelief, suspicion and disappointment. The thread 'Pay Revision - A disaster' on Kuensel online with over 2750 hits and 44 responses validate this.

The proposed structure is unfairly weighted, appealing more to the politicians and the ministers and acknowledging less the inputs of the civil servants. Such a reward system doesn't help much in retaining and motivating the best workers. The Pay Commission is yet to understand that this pay raise has as much psychological as material implications.

Some professionalism were found wanting in how the commission conducted the whole exercise. The public will be more confident with a commission who can display consistency in communication and public relations (media), and can deliver fast.

Five months is a long time for a not-so-great work such as this and I wouldn't be surprised if this is still not the final one.

Right to express but at what costs??

No harm is done if your workers uses the Internet connection in the office to inform themselves, gather information related to work and communicate with your partner organisations. 

In fact these are the main reasons why the Internet is allowed at work places.

But interestingly, Bhutanese (Government and Corporate) workers have found a more attractive and ,dare I say,  a sinister use. Visit forums at Bhutantimes.com and Kuenselonline.com. You will know what I mean. Many posts are submitted by working individuals during the working hours. Most of the posts are gossips, speculations and unverified stories about individuals and organisations.

Another online activity our workers are adept at is chatting. To estimate the number of workers chatting, visit the druknet chat room during and after office hours.

These activities represent a waste of human capital, office equipment and space, and time. Moreover gossips and speculations do not do much to motivate a worker. The Government and the corporations should monitor activities of their workers online and ensure that their time in office is effectively used for the purposes of the organisation.

I agree that an individual has the right to information and right to expression but rights must be exercised with responsibility.

The Geography of Bliss

The book is about happiness !!

Am yet to get a copy. FT did a   review (click here)    of the book and sounds like an interesting read!!