The employment needs of young people in Latin America and the Caribbean

More than half the population of Latin America and the Caribbean is under the age of 24, with youth unemployment rates on the rise in most of the countries of the region. Existing educational systems are failing to equip youth with the knowledge and skills necessary to succeed in a fast-changing marketplace. At the same time that more and more youth are unprepared for the workforce, businesses have an urgent need for workers equipped with the technical skills to contribute to the region’s growing information-based economy. Demand for IT skills is expected to rise sharply in the region as more organizations migrate toward the Internet and automate their businesses with application software.

Young people possess the creativity and adaptability to thrive in the IT area; yet more programs are needed to equip youth with the knowledge and skills to take advantage of growing opportunities. Greater investment in such programs will help narrow the growing gap between the supply of and demand for skilled workers, while helping to bridge the digital divide between developed and developing countries.

How entra 21 plans to address those needs

To achieve its goal of providing businesses with skilled IT workers and providing young people with jobs, entra 21 capitalizes on the dramatic impact of information technology on the world economy. The network revolution is not only creating a new marketplace, but is also profoundly affecting how business is conducted. Societies need skilled knowledge workers in order to grow local economies and attract foreign investment. Entra 21 is intended to make a significant contribution to building a bridge between labor market needs and youth whose interests and capabilities make them ideal candidates to fill the IT skills gap. Specifically, entra 21 seeks to:

• Provide training in job and employability skills for 12,000 youth, ages 16 to 29
• Make grants ranging from US$300,000 to US$700,000, to up to 40 nonprofits by the end of 2003
• Increase knowledge throughout the region and the world of best practices in training youth, placing them in productive jobs, and sustaining these efforts over time

How the Program Operates

Entra 21 provides grants and technical assistance to nonprofit organizations in Latin America and the Caribbean. Grants will be awarded for training and job placement projects that target youth and impart IT skills, enabling trainees to work with computers, the Internet, and other workplace technologies and equipment. The projects need to meet a demonstrated demand in the labor market and teach the skills necessary for trainees to find and hold a job.

Funding for the Program will come from several sources. The MIF has pledged US$10 million. IYF will match the MIF contribution on a one-to-one basis by forming partnerships with multinational corporations, foundations, and governmental agencies in the Americas, Europe, and Japan.

How Others Can Participate

Entra 21 offers donors a unique opportunity to maximize their social investments in the region. In order to meet the matching requirements of the MIF challenge—and succeed in realizing the Program's vision and scale, entra 21 seeks the participation of corporations, foundations, and governments as funding partners. In supporting entra 21, donors will leverage their resources through a one-to-one match, thereby achieving greater impact, cost efficiencies, and higher returns on their investment. In addition to providing financial support, donors may participate through the provision of training services, job opportunities, and technical assistance to participating nonprofit organizations.

We believe that only through the collective resources of the business, nonprofit, and government sectors can we achieve the scale necessary to have a long-term, sustainable impact on the region’s labor needs and escalating youth unemployment. The economic growth of Latin America and the Caribbean depends on having a workforce that is prepared to meet the needs of the region’s growing information-based economy. Young people entering the job market with better qualifications and skills will in turn be a resource to businesses as they adopt new technologies.

About the International Youth Foundation

The International Youth Foundation, founded in 1990, is dedicated to improving the conditions and prospects for young people where they live, learn, work, and play. Operating in nearly 60 countries and territories, IYF and its global network of partner organizations have helped 26 million young people gain access to life skills, education, and job training. Each year, the IYF network invests over US$110 million in children and youth around the globe, partnering with foundations and corporations such as Cisco Systems, the W.K. Kellogg Foundation, Lucent Technologies, Merrill Lynch, Microsoft, and Nokia. IYF works with a network of 11 partner foundations in 9 Latin American and Caribbean countries.

About The Multilateral Investment Fund

The Multilateral Investment Fund is a special fund, administered by the Inter-American Development Bank (IDB), whose mission is to strengthen the private sector in Latin America and the Caribbean. In partnership with governments, business organizations, and NGOs, the MIF provides a mix of technical assistance grants and investments to promote the growth of micro and small enterprise, support market reforms, and build the capabilities and skill standards of the workforce. Over the past seven years, the MIF has supported some 430 projects, with a total investment of US$700 million.