Workforce

Development
Colombia
Social Impact Bond

Image credits: Serge Averbukh Digital Art

The Problem

Unemployment is an issue all over the world

8.6% unemployment rate globally in 2016
Unemployment rate in Colombia 16% in 2000, 9.7% in March 2017
Most vulnerable low skilled, youth, minorities
Youth unemployment rate of 16.5% in 2016
Unemployment -> tensions in labour market, transport, services, housing ->
high crime incidence
Lower violent crime in last two decades, offset by higher delinquency levels
High poverty levels

Image credits: Serge Averbukh Digital Art

The Solution

Intervention program targeted at high school graduates

Stringent criteria to select eligible participants
Improve education, reduce discontent, provide long-term employment
Three-stage process:
Series of SIBs over a 5-year period
Build markets
Curate knowledge, disseminate learnings

Image credits: Serge Averbukh Digital Art

The Program - Implementation

Identify eligible participants from Cali, Bogota, Pereira

18-40 years old
<41.74 points on SISBEN
Registered with Red Unidos
Displaced by the Colombian armed conflict
Offer range of services
Skills training
Psychosocial support
Intermediation for work placement
Retention

Image credits: Serge Averbukh Digital Art

The Program Follow Up

Trained participants matched with employers

Employment status assessed quarterly
Gauge retention rates, employee performance, employer feedback
If performance > expectations:
Scale up further SIBs
If performance < expectations:
Review plan, goals
Modify implementation of subsequent SIBs

Image credits: Serge Averbukh Digital Art

Program Benefits

To Participants:
Access to skills development
Better employability
Higher quality of life
To Colombian Government:
Higher employment
Lower social welfare payments
Lower crime rate
To Society:
Better social and economic environment
Increased ability to attract foreign investments
Better economy
Accelerated public reform and development

Image credits: Serge Averbukh Digital Art