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					                     CASE STUDY




                   UNDP TURKEY
ESTABLISHMENT OF A VOCATIONAL TRAINING CENTRE
                    IN ADIYAMAN




              Business Focal Points Workshop
             25-27 October, Bratislava, Slovakia




                                                   1
1. Basic information

Description of           Establishment of a vocational training centre (clothing) in Adiyaman
initiative

Location                 Adiyaman, Turkey

Overall timing           March 2003 – September 2004


2. Partners

Partners      UNDP              European         World           Association    Municipality
                                Commission       Bank            of Clothing    of Adiyaman
                                                                 Industrialists

Role           Formulation     Financial    Financial          Main            In kind
              of the project;  donor (amount donor               beneficiary;     contribution
                               ≈ € 15.000)   (amount ≈ $                          (i.e. allocation
               Identification               25.000)              Provided       of the
              of key                                             machinery        premises and
              stakeholders                                       and              building; ≈ $
              and potential                                      equipment to     25.000 )
              donors                                             the vocational
                                                                 training          The
               Facilitation                                     centre;          municipality
              of working                                                          will identify
              relations                                           The            the
              between key                                        association is   unemployed
              stakeholders                                       expected to      people;
                                                                 cover the
                                                                 running costs,
                                                                 as well

Benefits       Concrete         Coordination    An             Access to       Decreased
              output of         and synergies    efficient use   qualified        unemployment
              UNDP’s long-      between EC       of the          labor;           in the
              term existence    funded           Bank’s                           province;
              in the            projects         funds           
              Province          improved         allocated to                      Name
                                                 the Social                       appears with
               Realization                      Risk                             those of World
              of UNDP                            Mitigation                       Bank, UNDP
              mandate to                         Project in                       and EC
              help countries                     Turkey
              promote
              sustainable
              human
              development




                                                                                                  2
3. Main contacts for further information


Name              Organization              Role                        Email/phone
Meral Sayın       Entrepreneur Support      Chief Technical             msayin@gidem.org
                  Centers                   Advisor

Murat Gürsoy      Entrepreneur Support      Business Development        mgursoy@gidem.org
                  Centers                   Advisor


4. Impact assessment

Objective              Expected             Indices/measurement              Actual results
                       target/output        methods to be used               achieved

Overall objective of   Reduction of         Official records of local        In line with
initiative             unemployment by      Social Security Office           expectations
                       3%

Supporting output      Training of 300      Records of the centre            In line with
#1                     currently                                             expectations
                       unemployed
                       people

Supporting output      Employment of        Records of the centre and        In line with
#2                     300 trained people   Official records of local        expectations
                       ensured              Social Security Office

Supporting output      …
#3




                                                                                              3
5. Main phases and activities

Name of phase       Concept design     Local                Establishment       Future plans
                                       commitment
                                       and fund
                                       raising


Key activities       Formulation of    Workshops           Procurement of     Provision of
                    the Project;       with local           machinery for       services to other
                                       businessmen to       the centre;         Provinces;
                     Identification   fine tune the
                    of the             design of the         Interviews with 
                    stakeholders and   Project;             prospective
                    potential donors                        trainers;
                                        Promotion of
                     Testing of the   the Project to the    Renovation of
                    concept by         donors;              the building and
                    holding                                 premises;
                    interviews with     Filing
                    local              applications to       Identification
                    businessmen and    the donors;          of 300
                    opinion leaders                         unemployed
                    of the local        Advocacy           people to be
                    business                                trained
                    community

End products         A full-fledged    Circa Euro          Vocational         Expanded
                    project            50.000 raised;       training centre     services
                    document and a                          up and running
                    business plan       All the needs
                    covering 1 year    of the vocational
                    of operations      training centre
                                       fulfilled

Timing               4 months          11 months           3 months           24 months

Responsibilities/    UNDP – all the    UNDP –              UNDP –            
involvement         activities         Secured              Interviews with
                                       commitment of        the prospective
                                       the stakeholders     trainers
                                        Local NGO –         WB & EC-
                                       filing of            Donation
                                       applications and
                                       dissemination at      Municipality:
                                       local level          Renovation of
                                                            the building and
                                                            identification of
                                                            the unemployed
                                                            people



                                                                                               4
6. Action reflection/lessons learnt


Key reflections and lessons learnt

Issue                       Details/implications
Ensuring Commitment at      Local commitment is critical for ensuring success in developing
Local Level                 and implementing projects especially in underdeveloped regions.
                            There are two main reasons for our success: first of all the detailed
                            needs analyses that we conducted at local level provided us with
                            the opportunity to demonstrate the concrete outputs and value
                            added of the project to local business community. Secondly; when
                            and wherever possible we included the local opinion leader to the
                            decision shaping and making processes. While identifying the
                            local opinion leaders, we preferred to observe the signals of the
                            local business community instead of going after the people that we
                            thought we would work smoothly.
                            Finally, we did our homework before going to the field. Our
                            experts studied the textile and clothing industry. That way we
                            eliminated the risk of losing credit during the long discussions
                            with the local businessmen. In other words, from the very
                            beginning we persuaded the local businessmen that we not only
                            know the sector but also possess the potential to generate solutions
                            for their problems.

Analyzing the               Always said, however almost always ignored is the importance of
stakeholders                identifying and analyzing the stakeholders. The characteristics,
                            expectations, deficiencies and potentials of stakeholders are
                            extremely important parameters that should be diligently analyzed
                            during the formulation of a project. A small mistake that we made
                            during the stakeholder analysis jeopardized the realization of the
                            project.

Contingency plans           Working closely with the private sector requires that we
                            understand their mindset. We had devoted significant time and
                            effort in identifying risks that we might encounter during the
                            project, and developed contingency plans for each risk we had
                            identified. Fortunately, none of the risks that we identified
                            realized. However, we were ready at all times.


• What was supposed to happen? What was the purpose of the action?
Clothing industry is the most important sector in Adiyaman -a small province located in one of
the most underdeveloped regions of Turkey. Clothing sector is a labor-intensive sector with
each plant employing on average 150 workers. Upon analyzing the needs of the sector we
identified that the biggest problem of the local clothing companies was the high employee turn
over rate (i.e. 50% per annum). Accordingly, it was impossible for the local companies to keep
the quality at a certain level. Furthermore; the productivity of the local companies were
considerably lower that of their counterparts in other regions of Turkey.

                                                                                               5
Upon working closely with the local companies and analyzing their financial statements; we
concluded that the cost of employing an unqualified employee is circa Euro 1500 per annum.
Considering that the sector employs circa 3000 people at an annual employee turn over rate of
50%, the total loss of efficiency would be Euro 2.25 million per annum. All the calculations
were made with the reps of the local business community.
We concluded that a vocational training centre would be of great use for the sector. We
calculated the fixed costs of establishing a vocational training centre with the capacity of
training 300 unskilled and unemployed people per annum. The fixed costs were in the
neighborhood Euro 150000 (i.e. procurement of second hand machinery, renovation of a
suitable building, training of trainers etc.) which is less than 10% of the annual efficiency loss.
The running costs on the other hand were circa Euro 3000.
We initially tried to persuade the local businessmen to make a one-time donation of Euro 5000
to cover the set-up costs and to pay for a small fee for each people they hire. Almost all of the
businessmen were quite reluctant to abide by this scheme, as it was unacceptable for them to
tolerate the fact that the potential free-riders would also benefit from the centre.
After analyzing the needs, problems and potential risks; we decided to raise funds from
different sources to cover the establishment costs and the running costs for the first year. This
plan required advocacy and promotion at different levels and platforms.
•What actually happened?
The time and effort that we devoted to promotion and advocacy paid well. The European
Commission financed the training of trainers (through a larger vocational trainer project that
the EC financed at national level), the World Bank financed the renovation and salaries of
trainers for a year (through a Social Risk Mitigation Project – Small Grants Programme), and
the local municipality offered a warehouse free of charge to be utilized as the vocational
training centre. In each case, the vision and mission of UNDP’s initiative was clearly
communicated to the decision makers at the mentioned institutions. We also paid significant
importance to the expectations of the donors.
•How do you account for the difference (i.e. that the results exceeded or did not meet
expectations?)
Not applicable.

Summary of key success factors and key risks

Key success factors                                Key risks
Thorough needs analyses at local level             Conflicts among local actors (i.e. business
                                                   associations, businessmen, governmental
                                                   agencies etc.)

Systematic promotion and advocacy activities       Business culture is willing to accept and
                                                   utilise the assistance available in the manner
                                                   foreseen.

Ensuring the commitment of local actors            Trained staff remains in their posts.




                                                                                                      6
7. Internal implications


Internal linkages with other UNDP/UN initiatives

Name of initiative          Linkage
                            In what way is this product connected with other UNDP/UN
                            products – e.g. same client, same group of benefits, same method
                            of measuring impact



Support required within UNDP

Name of unit/person         Detailed requirement
                            What requirement in terms of time, over what period, and with
                            what resources is needed from the specific unit/person; this should
                            include a description of their required task and the end product of
                            their involvement



Decision-making during initiative roll-out
Key decisions               Detailed requirement
Should indicate major       • How will these major decisions be undertaken (who is authorized
decisions which will have   to make what decision etc)
to be made to ensure
impact




                                                                                               7
8. Funding and cost structure


Category                                         Amount

Sources of funds
European Commission                              Euro 15.000

World Bank                                       Euro 20.2501
Local Municapality                               Euro 50.000 (in kind)

Local Business Associations                      Euro 100.000 (in kind)
UNDP                                             Euro 5.000

Total                                            Euro 190.250



Costs

       Training of trainers (60 man days at     Euro 15.000
        market rates of trainers plus training
        materials, travel and accommodation)

       Building (real estate market value)      Euro 50.000

       Renovation (benchmark works              Euro 8.000
        contracts for the building at hand)

       Annual cost of trainers to be            Euro 12.000
        employed at the Centre

       Machinery and equipment (second          Euro 100.000
        hand prices of the machinery)

       Running costs per annum (utilities,      Euro 5.250
        training material

Total costs                                      Euro 190.250




1 Conversion rate; EUR 1 = USD 1.2346
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