Professional Services and Development : A Study of Mozambique
Professional skills are scarce in Mozambique, even by the standards of low-income countries. The solution, however, is not necessarily to create more Mozambican training institutions but to address market-specific problems. Where skills are already...
Main Authors: | , |
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Format: | Policy Research Working Paper |
Language: | English |
Published: |
2012
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Subjects: | |
Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090319104508 http://hdl.handle.net/10986/4065 |
Summary: | Professional skills are scarce in
Mozambique, even by the standards of low-income countries.
The solution, however, is not necessarily to create more
Mozambican training institutions but to address
market-specific problems. Where skills are already the
binding constraint (for example, in auditing and
engineering), policy action is indeed needed to remedy
supply-side problems: capital market imperfections that
inhibit investment in training institutions by entrepreneurs
and in education by individuals; weakness in upstream school
education, which handicaps Mozambican students in their
pursuit of higher education; inadequacies in professional
education and training, including curricula not attuned to
industry needs; and a fragmentation of the regional
education market by regulatory and language differences that
prevent the emergence of regional institutions that can
exploit economies of scale.Where skills may be limited but
are not yet the binding constraint, the priority is to
stimulate demand for appropriate skills. In this respect,
the emergence of professional guilds offers opportunities,
but also creates risks. The guilds can design, with
government support, a regulatory framework, for example, in
accounting and basic engineering, which is more attuned to
the needs of Mozambican firms. They can also help make firms
more aware of the benefits of professional help, for
example, in accounting and information technology. The risk
is that guilds will create unnecessary regulatory barriers
to entry, particularly for foreign or foreign-trained
professionals. Greater coherence between policies affecting
professional services and international migration policy can
help deal with both supply-side and demand-side problems. |
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