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Egypt

ACTIVITY DATA SHEET

PROGRAM: Egypt
TITLE AND NUMBER: Skills for Competitiveness Developed, 263-017
STATUS: Continuing
PLANNED FY 2001 OBLIGATION AND FUNDING SOURCE: $15,000,000 ESF
PROPOSED FY 2002 OBLIGATION AND FUNDING SOURCE: $19,013,000 ESF
INITIAL OBLIGATION: FY 1996    ESTIMATED COMPLETION DATE: FY 2009

Summary: One of the most critical constraints to the competitiveness of Egyptian companies is the lack of an appropriately skilled workforce. Egyptian managers and workers do not have the skills required for modern competitiveness, and new entrants do not enter into the workforce with adequate critical thinking and practical skills. One cause of this problem is the inability of the educational system (at basic, secondary, vocational, and university levels) to provide workforce entrants with appropriate training. Long-term solutions require fundamental reforms to upgrade the quality of instruction, teacher skills and curricula. However, such reforms will take time to put in place and more time to produce results. In 1999, the Government of Egypt (GOE) specifically cited human capacity development as one of Egypt's most pressing needs, and requested U.S. assistance in this area. Through activities under this objective, USAID seeks to assist Egypt in alleviating the skills gap in the short term through workforce training interventions.

Skill development activities focus on three areas: management training; market-relevant information technology (IT) skills; and communication between training providers and the business community. In addition, USAID supports grants provided to university researchers who link with U.S. universities in the study of various Egyptian development problems.

This objective includes funds previously obligated under "Increased Use of Egyptian Universities In Quality Demand-Driven Applied Research" (263-009), which have been merged into this activity.

Key Results: Initial activities to improve the quality of the Egyptian workforce focus on managerial and information technology skills. Because this program began only in September 2000, results to date have to do with activity implementation and outputs. Currently, 1,062 Egyptians are undergoing one to three months of training in software applications certified by leading IT companies. Thirty-three high-level managers from the private sector and the GOE completed short-term advanced executive training provided by a leading U.S. business school. Twenty-three candidates for Masters degrees in business administration are enrolled in programs in the United States. Five global economy seminars on efficient management, globalization, change management, marketing, customer service, and global finance-reaching more than 2,100 Egyptian businessmen and women-have been conducted. To measure the longer-term impact of these programs, the participants will be tracked to determine whether their training resulted in a change in their employment status from unemployed to employed. For those already employed, this tracking will verify if newly acquired skills are being utilized and if the employees have acquired new responsibilities. This tracking will begin within a year after the students have completed their training. USAID also is continuing its collaboration with business associations in key industrial clusters to improve training and with the Egyptian private sector to investigate the viability of, and possibly plan for, the establishment of an international quality business school in Egypt.

The university linkages program, through which the research grants are administered, has resulted in the strengthening of ties between U.S. and Egyptian universities and between individual researchers. It also has resulted in significant economic benefits from the implementation of findings and recommendations produced by grant-funded research.

Performance and Prospects: The FY 2001 and FY 2002 activities are illustrative.

In FY 2001 and FY 2002 ($7.9 million and $7.5 million, respectively), USAID will support management training activities that develop a cadre of private sector executives and managers with the knowledge, skills, and commitment to use competitive management practices. Examples of activities in this area include: Senior Executive Program training by the Harvard Business School in Egypt and the United States; seminars to increase the awareness among Egyptian businesses of globally competitive practices; local management and executive workshops for Egyptian managers; internship opportunities in the United States and Egypt for mid-level Egyptian managers; scholarships for Masters of Business Administration and Masters of Business in Information Technology degree training for Egyptians; and training in basic business skill acquisition-equipping university graduates with essential computer, English language, and management skills.

In FY 2001 and FY 2002 ($5.9 million and $10 million, respectively), USAID will implement activities supporting the provision of market-responsive IT skills. USAID will support the establishment of an Egyptian technology university, provide industry standard-certified IT training, and support an Egyptian initiative that will introduce personal computers and IT in non-governmental schools for use in grades K-12 and for use in school-based adult learning centers.

In FY 2001 and FY 2002 ($1.2 million and $1.5 million, respectively), USAID activities to improve Egyptian training capacity and relevance will focus on strengthening both Egyptian private sector management and providers; encouraging the private sector to budget for training as an investment and not an expense; and ensuring that institutions provide training based on demand and relevance to the growth areas. This will foster productive attitudinal changes, more effective dialogue among private sector firms, and trainers who better meet the demands of a globally competitive economy.

USAID works closely with key Egyptian private sector leaders, nongovernmental organizations, and other institutions that have demonstrated an interest in improving the quality of Egypt's workforce and a commitment to using private sector resources to effect change. Activities are designed to respond to private sector interests and market demand. USAID seeks to leverage Egyptian private sector co-financing whenever possible.

Possible Adjustments to Plans: None.

Other Donor Programs: The European Union, Germany, Canada, and the World Bank.

Principal Contractors, Grantees, or Agencies: Start-up activities that contributed to the design of this objective have been implemented by PricewaterhouseCoopers and PalTech. Important local partners are the Future Generation Foundation and the Tourism Chambers Federation.

FY 2002 Performance Table

Egypt: 263-017

Performance Measures:

Indicator FY97 (Actual) FY98 (Actual) FY99 (Actual) FY00 (Actual) FY00 (Plan) FY01 (Plan) FY02 (Plan)
Indicator 1: Percentage of "graduates" of IT training interventions who were unemployed before training, are available for employment and placed in relevant jobs within one year NA NA NA B% (baseline) NA NA B+5%
Indicator 2: Company Operations and Strategy Index NA NA NA 44 NA NA 41
Indicator 3: Percentage of "employed graduates" of IT training interventions who use skills acquired in training or increase their job responsibilities as a result of the training received within one year of graduating NA NA NA NA NA 0 20
Indicator 4: Percentage of "employed graduates" of management training interventions who use skills acquired in training or increase their job responsibilities as a result of the training received within one year of graduating NA NA NA NA NA 0 20
Indicator 5: Percentage of "graduates" of management training interventions who were unemployed before training, are available for employment and placed in relevant jobs within one year NA NA NA B% (baseline) NA NA B+5%
Indicator 6: Company IT Use Index NA NA 48 61 NA NA 64

Indicator Information:

Indicator Level (S) or (IR) Unit of Measure Source Indicator Description
Indicator 1: IR Percentage Initially DT2 contractor and FGF cooperative recipient pre- and post-training information and follow-up data. In later years, surveys to be conducted by the Management and Monitoring Contractor (MMC) "Graduates" of IT programs refers to all IT training graduates under the SO who were unemployed before the training who were available for employment. Employed in the indicator statement includes local or overseas employment with any local or foreign entity operating in Egypt or abroad, within one year after finishing the program.
Indicator 2: IR Rank World Economic Forum. Annual Global Competitiveness Reports This is a composite index calculated by averaging the responses to 17 of the questions in the Executive Opinion Survey of the annual GCR. The index reflects best management practices in companies operating in a global economy, and includes a range of variables covering the sophistication and maturity of company operations and strategies.
Indicator 3: IR Percentage Initially DT2 contractor and FGF cooperative recipient pre- and post-training information and follow-up data. In later years, surveys to be conducted by the Management and Monitoring Contractor (MMC) "Graduates" of IT training programs refers to all IT training graduates under the SO, who were employed when they started training, and who continue employment with the same or another employer after graduation. Trainees covered under this indicator include participants in SO interventions.Employed in the indicator statement includes local or overseas employment with any local or foreign entity, within one year after finishing the program.
Indicator 4: IR Percentage Initially DT2 contractor and FGF cooperative recipient pre- and post-training information and follow-up data. In later years, surveys to be conducted by the Management and Monitoring Contractor (MMC) "Employed graduates" of training programs refers to all managerial training graduates who were employed when they started training and who continue employment with the same or another employer after graduation. Trainees covered under this indicator include participants in SO interventions.Employed in the indicator statement includes local or overseas employment with any local or foreign entity, within one year after finishing the program.
Indicator 5: IR Percentage Initially DT2 contractor and FGF cooperative recipient pre- and post-training information and follow-up data. In later years, surveys to be conducted by the Management and Monitoring Contractor (MMC) "Graduates" of training programs refers to managerial training graduates under the SO who were unemployed when they started the training and who were available for employment. Employed in the statement includes both local and overseas employment within one year of completing the program.
Indicator 6: IR Percentage The Executive Opinion Survey of the annual Global Competitiveness Report. World Economic Forum This is a composite index calculated by averaging the responses to 5 of the questions in the Executive Opinion Survey of the annual GCR. The questions are those constituting a group of variables addressing the extent and type of IT and Internet use in companies. The index reflects company use of IT in E-mail, E-commerce, Customer Service, Supplier Relations, and as an information source.

U.S. Financing

(In thousands of dollars)

  Obligations   Expenditures   Unliquidated  
Through September 30, 1999*    0 DA 0 DA 0 DA
0 CSD 0 CSD 0 CSD
9,260 ESF 0 ESF 9,260 ESF
0 SEED 0 SEED 0 SEED
0 FSA 0 FSA 0 FSA
0 DFA 0 DFA 0 DFA
Fiscal Year 2000 0 DA 0 DA  
0 CSD 0 CSD
10,000 ESF 4,657 ESF
0 SEED 0 SEED
0 FSA 0 FSA
0 DFA 0 DFA
Through September 30, 2000 0 DA 0 DA 0 DA
0 CSD 0 CSD 0 CSD
19,260 ESF 4,657 ESF 14,603 ESF
0 SEED 0 SEED 0 SEED
0 FSA 0 FSA 0 FSA
0 DFA 0 DFA 0 DFA
Prior Year Unobligated Funds 0 DA  
0 CSD
0 ESF
0 SEED
0 FSA
0 DFA
Planned Fiscal Year 2001 NOA 0 DA  
0 CSD
15,000 ESF
0 SEED
0 FSA
0 DFA
Total Planned Fiscal Year 2001 0 DA  
0 CSD
15,000 ESF
0 SEED
0 FSA
0 DFA
      Future Obligations  Est. Total Cost 
Proposed Fiscal Year 2002 NOA 0 DA 0 DA 0 DA
0 CSD 0 CSD 0 CSD
19,013 ESF 125,887 ESF 179,160 ESF
0 SEED 0 SEED 0 SEED
0 FSA 0 FSA 0 FSA
0 DFA 0 DFA 0 DFA

* These funds were previously obligated under former objective 263-009, whose activities have been merged into this SO.

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Last Updated on: May 29, 2002