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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.
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.
3
World Development Report 2008
4
Human Development Report 2007
Following table shows the Population in Asia and The Pacific:5
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
4 Hong Kong 22987 27179 124 161 132 170 2.8 4.4 .. ..
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
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
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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.
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.
------
References
1. Bartelsman, Eric, John Haltiwanger, and Stefano Scarpetta. 2004. “Microeconomic
Evidence of Creative Destruction in Industrial and Developing Countries.” Background
paper for the WDR. (2005).
4. Johnson, Simon, John McMillan, and Christopher Woodruff (2002). “Property Rights
and Finance.” American Economic Review 92(5): 1335–56.
5. Sarfaraz Ali, Khan (April 07, 2006). Human Resource Development in Asia. The
Bangladesh Observer. Dhaka.
10. World Bank (2008). World Development Report 2008. Washington DC.