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Human Resource Development in

SAARC Region: An analysis



Khan Sarfaraz Ali

Abstract
Development and success of an organization as well as a country largely depends
upon the creative skills and abilities of its human resources. In this article the HRD
issues in Asia has been described elaborately. That emphasizes on the importance of
HRD to enterprises and countries in the modern world. Developing countries in Asia
and the Pacific will be the focus in this article. The regional diversity in terms of
natural resources, culture, political institutions and levels of economic development,
common issues and challenges affecting several or more developing countries will be
identified and discussed. The education and training issues and challenges will be
dealt with from the perspective of employers and their organizations. Thus the
pedagogical aspects of education and training, which are of interest to educationists,
will be left out. In terms of time frame, the period to be covered will be the present
into the 21st century.

Introduction
The term Human Resources Development (HRD) means the integrated use of training
and development, organization development, and career development to improve
individual, group, and organizational effectiveness (The American Society for
Training and Development). HRD aims to improve individual, group and
organizational effectiveness and covers the development of people through education
and training in a national context as well as within enterprises. HRD in an integrated
sense also encompasses health care, nutrition, population policies and employment.1
There is a long felt need for policymakers, development practitioners, policy analysts
and academicians in Asia-Pacific to build a network for sharing the professional
experiences, building up partnerships in the process of socio-economic development
and implementing HRD related programmes in this region.


Associate Management Counselor, Bangladesh Institute of Management (BIM),
sarfarazbim@gmail.com / 880-1817528067

1
The Bangladesh Observer. Dhaka. April 07, 2006
Methodology
This article has been developed on the basis of secondary data as well as various types
of journals, articles, literatures, research books and development
reports. Relevant information also acquired through different websites
in this field.

Human Resources Development in Asia and Pacific


Asia and Pacific is a vast region with economies at different stages of growth. In the
southeast are the more than two-dozen Polynesian, Melanesian and Micronesian
island economies of the South Pacific. Many have "narrow production bases, a
subsistence sector which supports the bulk of the population and a small organized
sector comprised government, local units of foreign companies and banks and other
financial institutions". Papua New Guinea has the largest developing South Pacific
island economy with mining an important industry. Smaller though large in South
Pacific terms is the Fijian economy, which is more diversified with its sugar, timber
processing, and garment and tourism industries. Before 2008, the GDP fell by 4.3% in
the South Pacific island economies, largely because of a 4.8% decline in GDP for
Papua New Guinea. Output in most other Pacific islands grew by only 2-4% while
that of Western Samoa grew by 6.7%. It is unlikely that the Pacific island economies
will grow more than 2 to 4 % annually over the next two years.2

Hong Kong, the Republic of Korea (hereafter referred to as South Korea), Singapore
and Taiwan most of these countries have a major manufacturing industry producing
middle technology products and a sizeable service sector. These so called "dragon"
economies, which have grown rapidly in the last two decades, grew by 10-12% in
2008. They have continued to follow prudent macro-economic policies combined with
increasing openness. Most are upgrading their manufacturing industry to produce
higher technology and more knowledge intensive products. South Korea, Singapore
and Taiwan, are expected to grow between 12-14% per annum for 2006 and 2007.
Moving southeast wards are the industrializing and fast growing Southeast Asian
economies of Indonesia, Malaysia, Philippines and Thailand characterized by the
growing importance of their manufacturing industry producing labor intensive to
medium skill products, the decline in importance of agriculture and a growing service
sector. Among them are the so-called "tiger" economies of Indonesia, Malaysia and
Thailand, which before 2008 grew at over 10%. The newer countries are expected to
grow at 9% per annum for 2006and 2007. The Philippines on the other hand are

2
Proshikhyan. Journal of Training and Development Vo:13, No:2, July-December, 2005
expected to be around 9% per annum.3 The Southeast Asian economies will
industrialize further, upgrading their labor-intensive manufacturing industry to higher
technology and more capital-intensive products.

China, Mongolia, Laos, Myanmar and Vietnam are countries in transition to a market
economy. These economies are industrializing with labor intensive and lower
technology manufacturing. Leading the transition to a market economy is China,
which also holds the distinction of being the fastest growing economy in the world
with output growing by 15% in 2007. Growth for the next two years will be about
15% annually per year. Mongolia, which only began its transition to a market
economy in the 1990s, grew by 12% in 2007. Vietnam grew at 12-14% while the
other countries grew by more than 8%. To the west are the South Asian economies of
India, Pakistan, Bangladesh, Sri Lanka, and Nepal. Most of these countries have
started opening their economies and introducing pro-market reforms from the early
1990s. They are also industrializing with labor intensive and lower technology
manufacturing. Growth before 2007 was 6-8% with India growing at 8% and Nepal
only 6%. Over the next two years they are likely to grow at around 8-9% per annum.4

Controversy surrounds the sustainability of the high growth of the Asian region in the
future. The World Bank is however optimistic. Its baseline forecast expects GDP in
East Asia to grow about 7.3 % per annum and about 5.3% per annum for South Asia
for the rest of the 1990s to the year 2002. On the other hand, the ADB is of the view
that the high overall growth of the Asian region is sustainable for about two to three
decades based on the complementary between the capital abundance of Japan and the
others and the labor abundance of the rest of Asia being exploited and subject to the
individual economies being open to allow cross border flows of capital, labor,
commodities and technologies. Economic growth though high will be lower than in
the past and will not be uniform, across the region.

Competitiveness of both nations and enterprises will be on an international basis.


Worldwide competition has increased, the pace of economic change has accelerated
and the process of development has become less predictable. Competitiveness will be
decided on a country's or an enterprise's capacity to add value to global economic
products, services and processes. A key contributor in this regard is the knowledge
and skills of the workforce. In fact the education and skills of the workforce will be
the key competitive weapon for the rest of the 1990s as well as for the 21st century.

3
World Development Report 2008
4
Human Development Report 2007
Following table shows the Population in Asia and The Pacific:5

Projected Population Rate of Natural % of Population


Countries/Economies
(In millions) Increase (In millions)

2025 2050 (%) Govt. View <15 65>

1 Bangladesh 190.0 231.0 1.9 Too High 35 3

2 China 1476.0 1437.0 0.6 Satisfactory 22 8

3 Hong Kong 7.9 8.8 0.2 - 15 12

5 India 1363.0 1628.0 1.7 Too High 36 4

6 Indonesia 275.4 308.4 1.6 Too High 30 5

7 Korea, North 25.8 26.4 0.9 Satisfactory 27 8

8 Korea, South 49.8 42.3 0.5 Too Low 19 9

9 Malaysia 36.1 47.0 2.1 Satisfactory 33 5

10 Mongolia 3.4 3.9 1.6 Satisfactory 31 4

11 Myanmar 59.0 63.7 1.2 Satisfactory 29 5

12 Nepal 36.1 47.8 2.2 Too High 39 4

13 Pakistan 228.8 295.0 0.4 Too High 42 4

14 Taiwan 23.6 19.8 0.4 Too low 19 9

15 Philippines 115.7 142.2 2.3 Too High 35 4

16 Singapore 5.1 5.2 0.6 Too low 20 8

17 Sri Lanka 22.2 22.4 1.3 Satisfactory 27 6

18 Thailand 70.2 73.2 0.7 Satisfactory 23 7

19 Vietnam 103.2 115.4 1.3 Too High 29 7

Globalization
One major trend with implications for HRD is globalization. It is fostered not only by
technological change and the continually falling costs of communication and transport
but also by the decisions of developing countries in Asia and the Pacific and
elsewhere to embrace market oriented development strategies and to open their
countries increasingly to the world economy. The world is thus fast becoming one
interdependent global market place.

5
Source: Population Reference Bureau, World Population Data Sheet, 2005-2006
Competitiveness of both nations and enterprises will be on an international basis.
Worldwide competition has increased, the pace of economic change has accelerated
and the process of development has become less predictable. Competitiveness will be
decided on a country's or an enterprise's capacity to add value to global economic
products, services and processes. A key contributor in this regard is the knowledge
and skills of the workforce. In fact the education and skills of the workforce will be
the key competitive weapon for the rest of the 1990s as well as for the 21st century.
Globalization impacts on HRD in various ways. Thus compared to the past,
enterprises will need to update much more regularly the skills mix of their employees
to respond to the opportunities or threats created by globalization and rapid
technological change. Indeed intense global competition is reconfiguring the market
place. Enterprises increasingly have to compete by differentiating themselves from
their competitors by the quality of the human systems and processes behind their
products and services. The attitudes, knowledge and skills of the workforce of the
enterprise and its contractors and suppliers will determine the quality of the human
system and processes behind its products and services. Competition will be less and
less in terms of how the features and benefits of one's product/services compare with
those of another as more products are perceived to be at parity by customers (product
convergence).
Economic Restructuring
Economic restructuring by countries with changing comparative advantage will be
another trend. Enterprises will also restructure regularly in the increasingly
competitive marketplace as they seek to secure a competitive edge over their rivals.
Thus as China moves into labor intensive manufacturing, it will compete with
countries like Indonesia, and Thailand which will have to adjust by moving into
medium technology manufacturing. Such restructuring will necessitate changes in
education and training both at macro and enterprise levels.

Following table shows the distribution of GDP (%) in the economies of Asia and The
Pacific:6

6
Human Development Report 2005-2006, UNDP
Imports of goods Exports of goods Public expenditure Public expenditure
GDP per capita
and services and services on Education on Health
Country/Economy (% of GDP) (% of GDP) (% of GDP) (% of GDP)

US $ PPP US $
1990 2003 1990 2003 1990 2000-02 1990 2002
2003 2003

1 Bangladesh 376 1770 14 20 6 14 1.5 2.4 0.8 0.8

2 China 1100 5003 14 32 18 34 2.3 .. 2.0 2.0

3 Fiji 2438 5880 67 66 62 73 4.7 5.6 2.7 2.7

4 Hong Kong 22987 27179 124 161 132 170 2.8 4.4 .. ..

5 India 564 2892 9 16 7 14 3.7 4.1 1.3 1.3

6 Indonesia 970 3361 24 26 25 31 1.0 1.2 1.2 1.2

7 Korea 12634 17971 29 36 28 38 3.3 4.2 2.6 2.6

8 Bhutan 797 .. 32 43 28 22 .. 5.2 4.1 4.1

9 Malaysia 4187 9512 72 93 75 114 5.1 8.1 2.0 2.0

10 Nepal 237 1420 22 29 11 17 2.0 3.4 1.4 1.4

11 Pakistan 555 2097 23 20 16 20 2.6 1.8 1.1 1.1

12 Singapore 21492 24481 .. .. .. .. 3.1 .. 1.3 1.3

13 Sri Lanka 948 3778 38 42 29 36 2.7 .. 1.8 1.8

Changing Organizational Structures and Work Patterns


Changing organizational structures and work patterns are another trend. The company
of the future, according to Charles Handy, will be a shamrock organization. The
shamrock organizations will have the following three elements:
i. a small and essential core group of professionals, technicians and managers;
ii. a group of sub-contractors who produce goods and services which the core
group does not have to; and
iii. a growing group of temporary and part-time workers who are hired to provide
specialized services or to help at peak workloads.
Organizations in the industrialized countries are increasingly becoming shamrock
organizations. Shamrock organizations will emerge in developing countries in Asia
and the Pacific. For example the Singapore National Trades Union Congress (NTUC)
in a study on employment structure and its impact on union membership has pointed
out that the shamrock organization is already taking shape in Singapore. The small
core of professionals, technicians and managers will need to be the focus for human
resource management. More investment in the management and training of part-time
and temporary workers will also be required.
Technological changes
Technological changes, especially information technology and telecommunications,
and competition in the fast moving competitive global marketplace have changed
work organizations and working patterns. The production of goods and services has
become flexible and customized instead of being mass-produced in long production
lines. Fixed automation involving repetitive tasks is being replaced by flexible
automation. On-line quality control has replaced end-of-line checking. Instead of
fragmentation of tasks, increasing use is made of teams and multi-skilled workers.
Decision-making is being decentralized to points of production and sale. Employees
now need a much wider complement of skills than was the case in the previous
traditional slower moving hierarchical organization with clear chains of command and
"thinkers" at the top and "doers" at the bottom.

These work pattern changes are already taking place in the industrialized world. They
are also increasingly affecting enterprises in the developing countries of the Asia and
Pacific region. Human resource development policies and programmes will have to
change in response to these changes.
Strengthening Primary and Secondary Education
Primary schooling or less may suffice for lower level manufacturing involving single
task machines with workers performing one or a set of repetitive tasks. But secondary
education will be required for medium and high level manufacturing, which Asian and
Pacific developing countries are aiming for. Strengthening primary and secondary
education is a key HRD challenge in the developing countries of Asia and the Pacific.
Developing countries in the region have generally made good progress in primary
schooling. Many have achieved near or complete universal primary education. A few
need to expand their primary school enrolment. A number of Asian and Pacific
countries have to raise their primary school completion rate. Thus in South Asia only
Sri Lanka had more than 90% of the primary school cohort-reaching grade 4. The
situation will worsen if the relatively high rate of population growth of most South
Asian countries continues. In South Asia, the primary school age population is
projected to increase by 28 million between the years 1990 to 2010. As regards the
South Pacific, Papua New Guinea's school-age population is expected to increase by a
third between 1990 and 2010. To improve the quantity and quality of its education,
Papua New Guinea will have to raise its already high expenditure on education and
increase the efficiency of its education expenditure.
In many developing countries in the region more can be done to improve the quality
of primary school education. Crucial to the quality of schools appears to be the
qualifications, experience, knowledge, level of education of teachers and more and
better textbooks and materials. In this regard it is interesting to note that Hong Kong
had since 1992 introduced degree courses for primary school teachers to upgrade their
quality. It had graduate teachers in primary schools for the first time in September
1994. It aims to have 35% of graduates in primary schools by the Year 2006. The
pupil-teacher ratio should also be improved. This ratio for industrialized countries
before 2006 was 20 for primary schools whereas for many of the Asian and Pacific
countries it was much higher.

Secondary school enrolment needs to be expanded for many of the developing Asian
and Pacific countries. The average percentage of age group enrolled in secondary
schools for five industrialized countries (Australia, New Zealand, France, Sweden and
United Kingdom) was 92% by 2006. Except for a handful, most developing Asian and
Pacific countries have less than 50% of the age group enrolled in secondary schools.
Furthermore greater efforts should be made to improve the quality of secondary
education. The pupil-teacher ratio should be improved. This ratio by 2006 for
industrialized countries was 16 whereas for some Asian and Pacific countries it was
above 20. There is a need to reduce the number of dropouts. The school curriculum
should be revised to ensure that it not only caters for the academically less inclined
but also prepares them for the world of work.

Most developing Asian and Pacific countries have low adult illiteracy rates however a
small number have high adult illiteracy rates of over 40%. Most of them are in South
Asia. A sizeable proportion of the workforce of many developing countries of Asia
and the Pacific is poorly educated. Before the year 2005, the percentage of the
workforce with only primary or lower qualifications was 43.2% for Singapore. In the
case of Indonesia, in the same period of time, 72.1% of its workforce had primary or
no schooling. 78.7% males and 95.0% females of the Indian rural workforce had only
up to primary education or were illiterate by 2005. In the case of the Indian urban
workforce, 51.2% males and 74.0% females had only up to primary education or were
illiterate.7

Expanding and improving in-Service Training


Training by organizations is cost-effective and efficient. Such training, which should
be structured and planned, can be on or off the job. Training in enterprises should be
linked to its strategic plan and be based on a training needs analysis of the enterprise.
7
World Population Data Sheet 2006
On-the-job training (OJT) is one training mode used by companies. Enterprises use
OJT because it provides the specific skills needed for job performance. Unlike other
training systems, it enables the enterprise to quickly change the skills required if there
are changes in technology, work processes and product lines. OJT is a good training
option for smaller companies. Such companies cannot release their employees for
training during working hours especially if there is a tight labor market. Their
employees are invariably unable to train after office hours, as they need to work
overtime or at another job to supplement their low basic wages. Where OJT is
conducted in Asia and the Pacific, it tends to be structured in large companies,
whereas in smaller local companies it is unstructured. A research project conducted by
The Asian Productivity Organization (APO) in the late 20th emphasized on HRD
issues in twelve Asian economies including a firm level survey of corporate HRD
policies and practices. The survey of firms in eight developing economies viz. Hong
Kong, India, Indonesia, South Korea, Nepal, Pakistan, the Philippines and Taiwan
revealed scope for improvement and expansion of OJT. For example, in Hong Kong
formal and systematic training was neglected in local firms. About a third of
companies surveyed carried out OJT according to a companywide plan, 36%
conducted OJT only on the initiative of each division and 27% conducted OJT only
when necessary. A small number of companies did not have OJT. Self-learning and
observing seniors were more widely adopted while learning through exposure to
various jobs was in general underutilized. In Indonesia's case, there were still many
companies, which did not see training as a basic need or as a strategy to compete. OJT
was not widely done. Where practiced, OJT was conducted only in each division and
not according to a companywide plan. In Pakistan more than 60% of the companies
surveyed did not have any corporate policy for HRD. 35.8% of firms carried out OJT
according to a plan, 17.6% did it on the initiative of each division, and 40.8% carried
it out as and when necessary and about 6% did not practice it at all. The majority of
employees acquired skills and knowledge by self learning and observing. OJT in
enterprises in Asia and Pacific can be improved.8 A national programme to improve
and expand OJT, involving the government, enterprises and the relevant training body,
is worth looking into.

HRD in SAARC Region


The significance of Human Resource in socio-economic development of the region
has been recognized since the inception of SAARC. The leaders at the First SAARC
Summit in 1985 reaffirmed that their fundamental goal was to accelerate the process
8
The Bangladesh Observer. April 07, 2006
of economic and social development through the optimum utilization of human and
material resources to promote the welfare and prosperity of people and to improve
their quality of life. At the Second Summit in 1986, the leaders recognized that
meeting the needs of children was the principal means of human resource
development. They decided that children should be given highest priority in national
development planning. The leaders recognized at the Fourth Summit in 1988 that
HRD was one of the means of achieve the objectives of SAARC. In this context they
welcomed the offer of Pakistan to host the SAARC Human Resource Development
Center in Islamabad. The Center undertakes research, imparts training, and
disseminates information on HRD issues and advises Member States on HRD related
policies and strategies.

SAARC countries have been cooperating in the development of various dimensions of


human resource. Such cooperation started as early as August 1982 in the fields of
sports, arts and culture. In 1998, the SAARC leaders decided to include education in
the agreed areas of cooperation and a Technical Committee was formed to deal with
the principal area requiring urgent attention in the region. This Technical Committee
was re-organized in 1992. The further re-structuring of the SAARC Integrated
Programme of Action (SIPA) in 1999 resulted in the creation of the Technical
Committee on Human Resource Development. This was reconstituted in January 2004
to deal with matters pertaining to education, skill development, arts, culture and
sports. The Technical Committee met in March 2004 and made a number of concrete
and result oriented recommendations for regional cooperation in the vital area of
human resource development. At the Twelfth SAARC Summit held in Islamabad in
January 2004, the leaders underlined that investment in human resource development
was critical for future development of South Asia. It was, therefore, essential to
establish a network of centers of higher learning and training, and Skill Development
Institutes across South Asia.9

South Asia has to deal with the greatest challenges created by new world economic
order – globalization, regionalization and liberalization, while facing the critical
economic and social issues and achieving the task of regional Millennium
Development Goals (MDGs). The sectoral composition of the South Asian economies
has been changing from agriculture to higher concentration of industrial and service
sectors including trade in service sectors. While facing the above challenges, SAARC
countries have to move forward with formulating sound and strategic policies,
programmes and operational options to achieve the targets in MDGs, particularly

9
Proshikhyan. Journal of Training and Development Vo:13, No:2, July-December, 2005
alleviation of extreme poverty and hunger in the region. The broad objective of this
study is to compile and analyze the HRD best practices/programmes in the South
Asian region. The data collection for this programme is being started in seven
countries of SAARC.

Recommendation
Now a day, human resource management has become the core part of any
organization due to its vast importance and multidimensional effect. As the expansion
of organizational concept taking place, the essence and practice of HRD are being
more acute for the total enhancement of any type of organization. Besides the private
sector organizations; public sector organizations are also considering the necessity of
HR issues to achieve their goal. Realizing the issue as a part and parcel of modern
development process the leaders of SAARC recognized that HRD is one of the means
of realizing the SAARC objectives. They agreed to establish the SAARC Human
Resource Development Center (SHRDC) with main object to undertake research,
impart training and disseminate information on HRD related issues and advise the
Member States on HRD related policies and strategies. The Government of Pakistan
offered to host the Center at Islamabad in Pakistan. Since this institution came into
being the Center was at organizational stage for the last two-three years. On
recruitment of its initial staff strength in 2002 the Center has become functional. The
last meeting of the third SHRDC Governing Board recommended a number of
programmes of activities, which were subsequently approved by the Fourth Special
Session of the SAARC Standing Committee in July 2003. The Center is now making
all-out efforts to complete the implementation of all the approved programmes of
2003.

The main objective of this programme is to compile a comprehensive directory of


HRD experts of the South Asian region, who are involved in policy making and
implementing programmes in relation to the various fields of HRD. The specific
objectives of this programme is to identify the possibilities of developing a network of
HRD experts for creating mutual benefits for the member states and to use such
experts to improve the quality of HRD programmes including research and training
programmes of SHRDC. The directory on HRD experts in the region will be used as a
resource bank to select resource persons to carry out SHRDC’s training programmes
efficiently and effectively. It will also be helpful to conduct SAARC member
country’s own research and training programmes in HRD. There is a possibility to
design an e-discussion group on strategic HRD policies and other related issues in the
region upon the compilation of this directory of HRD experts. A questionnaire has
been circulated to the member countries to obtain necessary information and also
through SHRDC website from South Asian HRD experts to submit their information
through its website as an e-information network. If you are a HRD expert or you are
affiliated with an organization, which deals with research and training on HRD and its
related areas, please provide your information to include the same in the data bank of
HRD experts in South Asia.

Each member country of the SAARC region requires up-to-date, reliable and
consistent indicators for social and human development to formulate a sound and
conducive policy environment within the region. The inadequacy of a comprehensive
time series database on indicators of human development (HD), published by one
organization within the SAARC framework is a long felt need for policy makers,
policy analysts, administrators, intellectuals and other academics in the SAARC
region. In this respect, SHRDC has designed a study to compile and publish data
profiles on Macroeconomics; Education; Health; Demographic; Gender; Poverty and
Public Expenditure; Food Security and Nutrition; Natural Resources and
Environment; and Energy for SAARC member countries. SHRDC will update the
database regularly each year and publish through the SHRDC’s website as an online
publication. SHRDC plans in future to concentrate on core and focused programmes
of activities, which will give tangible benefit to the member states in the region
according to its mandate and terms of references. The center is also gathering HRD-
related study reports and other relevant information, which are readily available with
the member states and the SAARC secretariat, and compiling this information in order
to draw up a road map for future plan of activities of the center.

A comprehensive regional survey and analysis have not been conducted so far in a
rigorous fashion; to compile and assess the strengths, weaknesses, opportunities and
threats (SWOT) of the existing HRD best practices/programmes and operational
options exist in the SAARC region. After careful study of the strengths and
opportunities, replicating such best practices of HRD could benefit the region. The
development of human resource has been recognized as one amongst many objectives
of long-term economic growth by most developing countries since the early fifties.
But it had moved to the center stage of development priorities by the early seventies.
In this respect, a series of study and more practice in this area are burning need to face
millennium challenges in the modern world.
Conclusion
HRD contributes to economic development. It does not by itself make such growth
possible. Employers' organizations of Asian and Pacific developing countries face the
challenge of defining their HRD role. Their decision will affect the standing and
relevance of their organizations to enterprises and their contribution to the economic
and social development of their countries in the 21st century.

------
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5. Sarfaraz Ali, Khan (April 07, 2006). Human Resource Development in Asia. The
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