Digital Transformation in the Informal Economy

Background materials on TVET – Volume 1 01

Digital transformation in the informal economy Opportunities and challenges for technical and vocational education and training in development cooperation TABLE OF CONTENTS

PREFACE 3

ABSTRACT 4

1 BACKGROUND 5

2 OPPORTUNITIES AND RISKS OF DIGITALISATION FOR INFORMALLY EMPLOYED WORKERS 6 2.1 Global impact of digitalisation on labour markets in emerging economies and developing countries 6 2.2 Influences and significance of new technologies on work in the informal economy 7

3 CURRENT FINDINGS ON SKILLS ACQUISITION AND INNOVATION PROCESSES IN THE INFORMAL ECONOMY 11 3.1 Skills requirements in informal employment due to digitalisation 11 3.2 Routes to acquire skills for informally employed workers 12

4 LESSONS LEARNT AND PRACTICAL EXAMPLES FROM DEVELOPMENT COOPERATION 14

5 RECOMMENDATIONS FOR ACTION FOR TECHNICAL AND VOCATIONAL EDUCATION AND TRAINING IN DEVELOPMENT COOPERATION 18 5.1 Building on scientific findings 18 5.2 Closing knowledge gaps 18 5.3 Rolling out and transferring good examples 19

6 ANNOTATED BIBLIOGRAPHY 20

ENDNOTES 24

2 3 PREFACE

The sector project ‘Technical and Vocational Currently, the issue of the future of work is To answer these questions, the sector project Education and Training’ supports the German very important for the future development of TVET issues a publication series. It provides Federal Ministry for Economic Cooperation and German development cooperation, in particular background materials on TVET in development Development (BMZ) in upgrading strategies in TVET. The concern here is on the one hand cooperation which are published on an ad hoc and approaches for technical and vocational with how work and employment are changing basis. Each of these papers examines a specific education and training (TVET) in German and in developing countries and on the other, with aspect of the issues described above. The aim international development policy. By means of the corresponding consequences for TVET in is to compile concise, relevant information, to TVET, BMZ seeks to increase the supply of qual- development cooperation. illustrate this with good practices, and then ified labour in order to contribute to improving to make practical recommendations for both employment opportunities and economic growth. › What kind of employment in which development advice and implementation based sectors calls for what skills? on this. At the same time, promoting TVET as a part of › How must TVET systems be designed to lifelong learning constitutes an important con- The intention is to provide decision-makers cope with these altered requirements and tribution to the ability of individuals for social and practitioners with inspiration for their their continuous change? and political participation. Training geared to own tasks so as to help TVET in development labour-market needs enhances people’s em- › How can vocational training measures be cooperation to respond to the challenges of ployment prospects and enables them to earn a planned and carried out to prepare for new work and to make use of the opportunities decent income to escape from poverty. work in the era of the digital transfor- it affords. mation, and to harness the opportunities afforded by the digital transformation?

Female apprentice in industrial mechanics at Umnugobi Polytechnic College, Mongolia. Many girls plan their › The background materials are available in both German and English. career in vocational training.

4 35 ABSTRACT

Digitalisation or digital transformation New (digital) technologies have diverse effects There are still a large number of blind spots This volume of background material has been describes first and foremost the technical on the work of those in the informal economy. in research on the effects of digitalisation compiled on the basis of desk research and process of converting analogue values into Technology-based innovation processes in the in the informal economy and in appropriate document analysis. It is divided into five digital formats. However, it also means all informal economy can enhance productivity and effective approaches for TVET in devel- chapters. changes that are triggered by these technical and the working conditions of those who work opment cooperation. Nonetheless, selected processes. ‘Informal economy’ is the term used in the informal economy. The platform economy practical examples are sources of inspiration  Chapter 1 offers background information to cover activities by workers and companies, creates new employment opportunities for and provide good ideas for the planning and on digital transformation in the informal who are not properly subject to formal rules. those who work in the informal economy but it implementation of TVET as part of development economy. Nearly 70 per cent of all employees in emerg- can also mean new dependencies and discrim- cooperation in favour of those working in the ing economies and developing countries work ination. Digitalisation requires those who work informal economy.  Chapter 2 deals with the opportunities and in the informal economy. in the informal economy to have new skills – risks of digitalisation for those working in the digital skills but also basic literacy. In summary, three recommendations for the informal economy. The digital transformation of labour also has future can be identified: an effect on the extent and quality of em- At the same time, the new media create new  Chapter 3 summarises current findings ployment in the informal economy. However, ways for those in the informal economy to ac- › Measures should be grounded in scientific on skills acquisition and innovation processes the forms that these effects take only emerge quire skills: these include FabLabs, MOOCs and findings; in the informal economy. gradually and in each case depend on the m-learning. It is important that each of these › gaps in knowledge should be closed in specific country context. methods facilitates participation by target These are illustrated in  Chapter 4 using order to base future action on better groups from the informal economy, in particu- practical examples from development information; lar when it comes to the basic prerequisites cooperation. (skills). › and good examples should be extended and transferred to other contexts. Recommendations for action are derived from these in  Chapter 5.

This is rounded off by an  annotated bibliography.

6 47 1

BACKGROUND

Digitalisation is a term with many facets. conditions in the informal economy often do Thesis 9: It is not yet possible to estimate the › How can skills gained in the informal This keyword is not limited to the technical not meet the requirements expected of decent extent to which the digitalisation of labour economy be recognised and certified in process of converting analogue values into work. will affect developing countries. The groups order to lead to more formal employ- digital formats. Digitalisation or digital trans- that are currently the most disadvantaged are ment? formation are the terms used to describe all The digital transformation of labour also has at particular risk of being excluded from the changes that are triggered by these technical an effect on the extent and quality of employ- opportunities of digitalisation. Special meas- › Which approaches and experience already processes, for example in industrial production ment in the informal economy. At this point, ures must be taken here. exist in this respect in industrialised, (Industry 4.0), the world of work (Work 4.0) or however, no definitive answer can be given emerging and developing countries? TVET (TVET 4.0). as to what precise effect the digital change The following questions arise when it comes to Which approaches are already used in will have on the informal economy: it will opportunities and challenges of digital transfor- development cooperation (DC)? Which According to the ILO, the term ‘informal econ- depend greatly on the context of the individual mation for the informal economy: have been proved to be successful? omy’ encompasses ‘all economic activities by country. The position paper ‘New work and its workers and economic units that are – in law impacts on TVET in development cooperation’ › How can stakeholders in the informal › Which recommendations for action in re- or in practice – not covered or insufficiently presented two theses on the opportunities and economy exploit the opportunities offered spect of TVET in DC can be derived from covered by formal arrangements’.1 In emerging risks of digital transformation for the informal by digital transformation? literature and current practice? economies and developing countries, nearly 70 economy.2 per cent of workers are in the informal econ- › What prerequisites are required to omy. At almost 90 per cent it is even more in Thesis 3: There is a close functional interre- prevent the digital divide from becoming sub-Saharan Africa and South Asia. lationship between TVET and the employment wider and to ensure that disadvantaged system that will continue with digital trans- groups also benefit from the digital In these places, the informal economy safe- formation. It follows from this that, although transformation (implementation of the guards employment and income where there digitalisation of TVET promotes digital upskill- principle of ‘Leaving no one behind’ of the are not enough formal jobs, thus allowing ing of employment structures, this cannot be United Nations 2030 Agenda)? young people to enter the labour market. How- forced. This applies in particular to countries ever, with low wages and no social security with a large informal sector where the econo- there is a greater risk of poverty. Working my is less developed.

8 59 2

OPPORTUNITIES AND RISKS OF DIGITALISATION FOR INFORMALLY EMPLOYED WORKERS

2.1 Global impact of digitalisation on labour markets Streetlife with flip chart in Vietnam in emerging economies and developing countries

It is not yet possible to make a definitive vocational education and training courses › When new technologies make agriculture this the World Bank highlighted the three most assessment of the global impact of digitali- in technical subjects or in information in emerging economies and developing important ‘analogue prerequisites’ without which sation on the labour market in emerging and and communications technologies.4 countries more productive, more for- it is not possible to obtain a ‘digital dividend’:7 developing countries, especially for jobs in the mal jobs can be created there and in informal economy. As a result, various scenar- › When new technologies and/or automation processing industries. Depending on the 1. appropriate and binding rules, standards ios that are based on different hypotheses can bring about job losses in the formal econ- extent to which informal jobs are lost as and laws, be found in the literature:3 omy and production processes are brought a result of this and whether a sufficient 2. functioning institutions, back to industrialised countries (re-shor- number of new jobs are created in the › If processing industries in emerging ing), it may cause the formal economy formal economy, the result may be an 3. vocational education and training for economies and developing countries grow in emerging economies and developing increase or a reduction in informality employees on how to use new technol- as a result of new technologies, this countries to shrink. According to estimates overall. ogies and on how to cope with the new may increase the number of formal jobs by the ILO, up to 56 per cent of jobs in requirements at the workplace that this and cause a corresponding reduction in the five ASEAN countries of Cambodia, A meta study on the influence of the inter- entails. informality. This trend could be ampli- Indonesia, the Philippines, Thailand and net on African labour markets comes to the fied because of the technology-based Vietnam are threatened by automation and conclusion that the internet overall has and relocation of service provision (e. g. in the digitalisation. These are primarily jobs that will continue to have a positive effect on job field of business process outsourcing or are mainly carried out by women with low creation and the improvement in working con- software development). The example of qualifications, e. g. in textiles in Cambodia.5 ditions and productivity.6 However, parallel to India illustrates the importance of more

10 116 2.2 Influences and significance of new technologies on work in the informal economy

New (digital) technologies have diverse effects for local innovation processes rather than tech- on the work of those in the informal economy. nology transfer that should be of primary inter- est for DC projects in this area. Thus it would Technology-based innovation processes in the be helpful to strengthen the innovation capacity informal economy improve productivity and the of employees to adapt technologies to the working conditions of those who work in the conditions for specific contexts – e.g. through informal economy. the exchange of knowledge. The employees’ A study on the influence of new technologies self-organisation plays a central role for on the informal economy in urban areas shows technology-based innovation processes in the that new technologies tend not to create any informal economy. Self-organisation promotes Engagement of a social entrepreneur in Senegal new jobs there, but they can have a positive the exchange of knowledge which contrib- effect on working conditions and productivity.10 utes to innovation and diffusion of innovation, strengthens the rights of employees in respect The World Bank succinctly summarised the market. Particularly those countries where the However, certain conditions must be fulfilled of access to technologies and makes a contri- prerequisites for how to deal with digitalisa- education systems are not well developed are for this – in particular, a stable environment is bution to safeguarding against negative effects tion positively as regards qualifying employees at risk of being excluded from the opportunities required that makes investments in new tech- of technological change. Besides self-organised with the image of the ‘race between skills and of digitalisation. nologies profitable and minimises risks. In par- exchange of knowledge, training measures technology’.8 ticular, legal certainty and access to resources also have a positive effect on productivity and For example, compared to Asia most African such as electricity and water or safe space in working conditions, which may vary according Digitalisation has the potential yet at the same countries find it more difficult to benefit from towns are key prerequisites for small and micro to the profession and evolve most effectively in time carries the risk of automating routine trends such as business process outsourcing enterprises to buy new technologies. combination with other measures.11 activities. It thus threatens in particular the or the platform economy, because the standard jobs that are focused on these. The outcome of education tends to be lower in Africa.9 A The greatest effects on the income and working of this is a trend towards polarisation which is more nuanced assessment is applied to this conditions of employees can be seen with tech- already clearly emerging, where only those who diagnosis in the following sections so that nologies that can be adapted to the local con- are better qualified benefit from digitalisation. implications for TVET cooperation in favour of text and do not require major investments. It Many others are forced into precarious working those who work in the informal economy can can be ascertained from this that it is support arrangements or completely out of the labour be identified.

12 137 The platform economy creates new employment › Location-independent crowdworking However, if one looks at this with a A study of work on demand apps in opportunities for those who work in the informal platforms, such as Amazon Mechanical critical eye, it reveals the risks of this respect of services similar to housework economy, but it can also mean new dependen- Turk (AMT) or Clickworker, primarily offer approach: a high proportion of those who showed that women achieve a higher cies and discrimination. small-scale and low-paid tasks to be work via microtask platforms are young income for the same work than domes- processed online (microtasks). Others, and well or even very well educated, tic staff. However, the regulations, such The platform economy is based on online mar- such as Upworker, are aimed at qualified making them extremely overqualified for as those that have been asserted in ketplaces where the operators bring together individuals and offer more complex and the tasks.16 From a societal perspective, South Africa to protect domestic staff, vendors and customers. The function carried better paid contracts. In Germany, work it wastes potential that could be used are undermined on these intermediation out by platform operators is simply in their via platforms is a second job for the vast to develop the local economy. From the platforms, particularly when it comes to role as intermediaries and coordinators: they majority of those involved (79 per cent).13 individual’s perspective, it frequently social security arrangements. In addition, therefore do not bear either the risks or costs By contrast, crowdworking platforms leads to frustration and to the phenom- the assessment systems easily lead to of production and they do not provide the goods in developing and emerging market enon of down-skilling. In contrast, less discrimination on the basis of age, gender and services. countries may be an attractive source of well-qualified individuals do not have the or appearance.19 income, especially for people with family infrastructure or the basic skills (literacy Their business can grow exponentially as obligations, those living in remote regions and simple digital skills) to participate in As it is a new phenomenon, the platform the service they provide is entirely virtual. or where unemployment is high. this system.17 economy is still not sufficiently regulated and Furthermore, they are in possession of all the new forms of trade union organisations are data and control all the platform’s processes. There is empirical evidence of this14 in › Platforms that act as intermediaries at only now beginning to be formed in this area. To date, no assessments have been made of the individual cases and it has prompted gov- a specific location for jobs that have to Consequently, various parties are emphasising platform economy’s share of the labour market ernments in countries such as Malaysia be carried out physically, as is the case the need to create a political structure and but many indicators point towards its increas- and Nigeria to support crowdworking with tradesmen’s services, driving work, here technology-based solutions seem to be ing significance.12 In this context, it is possible platforms as sources of employment.15 accommodation, housework, etc. (work particularly promising for adapting the social to differentiate between different types of on demand), are already well established security systems to these new forms of work.20 platform. Differentiating factors are, firstly, the in emerging economies and developing local nature of the business and, secondly, the countries and are growing quickly.18 As link to specific individuals. The local nature of they are very efficient in bringing to- the business is a factor where two major types gether customers and vendors, they open of platforms can be distinguished: up new markets and opportunities for self-determination to those employed, for instance in relation to working hours.

14 158 Gender is another relevant distinguishing feature. Globally, 327 million fewer women than men have access to the internet or a smartphone – in South Asia women are 70 per cent less likely to own a smartphone than men, and the figure for Africa is 34 per cent.22 Beyond access to technology, qualitative studies also reveal gender-specific usage behaviour that tends to magnify the digital gender gap and can in part be explained by poorer primary

Welding trainers are trained in the use of the Aug- Digitizing the future through education – education, perceptions determined by culture, mented Reality welding simulator in Pristina, Kosovo the contribution of a software inspector in Ruanda and time limitations as a result of family obligations. At the same time, however, different studies indicate that women can improve their There are various options to become involved › Survival entrepreneurs do not make much with customers and suppliers. The second position in society and their income by using in relation to TVET in order to assist the use of new technologies and if so, then group is mainly managed by young and mobile phones or the internet.23 vendors to gain maximum benefit from the primarily to maintain income. In con- well educated entrepreneurs who are platform economy. trast to the top performers and gazelles, particularly active in social networks. In this way, many technologies such as mobile expansion is not their aim and they are phones or decentralised energy supply systems Access to new technologies and the benefits neither willing nor able to invest in new › Top performers exploit the full spectrum help female employees in the informal econ- of these vary for individual groups within the technologies over and above the mini- of digital technologies. omy to overcome socio-cultural barriers. For informal economy. mum level. example, this facilitates direct contact with The differences in the appetite for risk of the customers without any mobility requirements.24 The informal economy is heterogeneous and › Gazelles make active use of the oppor- four groups, the level of digitalisation already The choice of media for communication looks consequently the effects of digitalisation are tunities of digitalisation and thus pursue achieved, and the usage behaviour should be significant here: social media allow women to very different, depending on the target group the goal of maximising profit. They can be taken into account for interventions within the communicate in a more flexible and independ- under review and the context in which they are divided into two groups (mature and in- context of development cooperation, as the ent way than with a mobile phone, the use of operating. With the focus on micro enterprises, experienced). The first group tends to be ways in which the new technologies are dealt which may possibly be viewed with suspicion the literature highlights the following rough managed by older entrepreneurs and uses with vary greatly. by people in their immediate surroundings.25 differentiating factors on the basis of empiri- digital technologies for communication cal data:21

16 179 Example Further examples of measures to formalise informal companies relate to taxes and duties, registration of and social security for employ- With its programme ‘Tabletas ees, and health and safety at work. Besides Concanaco’, Mexico provides an attractive cost-benefit ratio for the target an example for the use of new group, a prerequisite for the success of such technologies with the dual aim of measures is also empowerment to use these making informal enterprises more services. productive and facilitating taxation of these enterprises within the New financial technologies (FinTechs) such as framework of a special tax regime the M-Pesa cashless payment system in Kenya for small enterprises. Tablets were lead to greater structuring and transparency of equipped with software and free Digital Skills informal markets. This can provide a basis for internet access in order to make formalisation. In addition to this, FinTechs give it easier to do the accounts, issue those working in the informal economy new invoices and carry out electronic A detailed analysis of the use of new tech- Digitalisation creates new opportunities for access to capital and a means of saving. Many transactions. The tablets were nologies and the distribution of digital skills gradual formalisation. in the informal economy will benefit from this. distributed to companies operat- among the population of emerging economies Digitalisation of financial services and other On the other hand, there is a risk that new ing in the retail sector, services and developing countries shows further differ- services provided by public administration dynamics will bring about marginalisation for and tourism and thus led to their ences, e.g. correlations with formal education, (e-government) has an effect on the inter- those who, for example, do not have access to gradual formalisation. An integral the place where they live (urban vs. rural), action between the informal and the formal this because of a lack of basic education or part of the programme, which was age and income.26 Among the many factors economy: it creates new opportunities for of technical equipment. Bateman et al. (2019) implemented by the Mexican tax that have a negative impact on access, usage interaction between the company and admin- therefore warn against unrealistic expectations authorities, the National Insti- behaviour and digital skills is the lack of con- istration, reduces direct and indirect costs of and point out that it will be necessary to plan tute for Entrepreneurship and the tent on the internet or mobile devices in the formalities (e. g. by simplifying processes) and interventions in a context sensitive manner, Concanaco Chamber of Commerce, local languages of some regions. In sub-Sa- dismantles barriers for access to loans. and to evaluate such interventions carefully was a training module from the haran Africa this means, for example, that the with the potential for unintended consequences Colegio Nacional de Educación poorest population groups, which also make in mind. Profesional Técnica (CONALEP).28 up a significant part of those employed in the informal economy, are excluded.27

18 1019 3

The skills for how to work productively with The rating of skills from a beginner to expert CURRENT FINDINGS ON SKILLS information and communications technology level illustrates the need to determine skills (digital skills) have been defined in various requirements in their context and derive ACQUISITION AND INNOVATION PROCESSES models, but have not been drawn up specifi- qualification requirements for specific target IN THE INFORMAL ECONOMY cally for the informal economy or in the con- groups. The two models listed above provide text of developing countries, as, for instance, the tools for empirical surveys and this par- the following models that are frequently cited: ticularly applies to Van Deursen’s model that 3.1 Skills requirements in informal employment due to digitalisation is operationalised with indicators. › The European Digital Competence Frame- The general trend towards automation by the › Technical skills, including information work (DigComp) is based on five pillars: When it comes to digitalisation, there are new technologies of routine tasks means that and communication technology skills: handling information and data, communi- only a few studies available on qualification the knowledge and skills that are required to What are meant here, besides job-spe- cation and cooperation, generation of dig- requirements or qualification needs for those undertake nonroutine activities are valued more cific knowledge and skills, are also ital data, security and problem-solving. working in the informal sector. In 2012, the highly. According to the World Bank29 these are information technology (IT) skills which These five columns are refined further in Botswana Training Authority conducted a in particular: may range from use and even include the eight competence levels.30 broad-based study on skills requirements in development of new IT solutions. the informal economy in Botswana. However, › Nonroutine, higher-order cognitive skills: › The Digital Skills Framework of Van the study only identified requirements in the These are the skills to understand › Nonroutine interpersonal, socioemotional Deursen from 2016 integrates DigComp IT sector in individual cases, for example for complex interrelationships, to respond skills: This means diverse skills, attitudes and distinguishes between four types of the sale and repair of mobile phones or the successfully to changes in the working and behaviours that empower people to skills: operational skills, content creation profession of graphic designer.31 environment, to learn from experience, interact with others positively and mas- skills, information management skills to overcome obstacles through critical ter situational requirements. and social skills, each of which works thinking and solve unstructured problems. in two directions. Firstly, they empower In some cases, these skills build on basic individuals to solve problems; second- abilities such as reading, writing and arith- ly, they put them in a position to avoid metic. It cannot be assumed that these exist, security risks. particularly among those who work in the informal economy.

20 1121 3.2 Routes to acquire skills for informally employed workers

People working in the informal sector acquire The following additional sources for acquiring Internet cafés and other public areas smartphones. However, other public spaces job-related skills in different constellations, skills have, to date, barely registered in re- Apart from the necessary infrastructure, inter- equipped with computers such as libraries which vary according to region or country, search but are particularly relevant for digital net cafés also offer people who do not have and community centres are also suitable for gender, urban or rural areas, etc.32 These are skills: private access to the internet the opportunity sharing simple digital skills.34 primarily: to share knowledge and learn in an informal FabLabs context. The skills required to use the internet MOOCs › Informal or traditional apprenticeships FabLabs and MakerSpaces are open work- are often acquired through exchanges with Digital training courses are made accessible shops where private individuals or commercial staff in the internet café itself, as the study to new target groups through Massive Open › Courses in the formal TVET or educational undertakings can access modern equipment by Furuholt and Kristiansen (2007) in Tanzania Online Courses (MOOCs). Universities, in par- system and tools such as 3D printers, CNC machines and Indonesia shows. Over and above this, ticular, have been offering these solely online › Courses at private training centres or laser cutters. Such organisations often internet cafés are used to obtain information, courses since 2008. They are free to attend (commercial or by non-governmental cooperate with universities or other institutions download software for professional purposes and (as a rule) can be certified if a fee is organisations) and represent a place of informal learning or manage businesses. In spite of the fact that paid. The tremendous optimism that was ini- where knowledge is exchanged. Experience they are in different stages of development, tially engendered by this approach, particularly › On-the-job (learning by doing) from Africa and Latin America illustrate what the authors identified great similarities be- for tertiary education, needs to be relativised challenges target groups in the informal tween the two countries and suggest that sup- in the light of comparatively low participation economy face during implementation and which port be given to internet cafés to develop the rates from Africa and Asia and high drop-out solution strategies have been successful to training and skills of employees to a greater rates of over 90 per cent.35 date. For instance, decommissioned production extent, so that they can share knowledge and equipment (re-use) can reduce the costs of the reach new target groups. Furthermore, it is Apart from quality problems, the high de- initial installation. important to pay attention to gender aspects mands placed on the learners are listed as a so that it is easier for women and girls to reason for these results. For instance, intrinsic When it comes to reaching disadvantaged gain access in spite of the cultural barriers. motivation, learning skills, good knowledge of target groups such as women or people with English and digital skills are required for suc- very little basic education, easily accessible The expansion of the internet on mobile cessful participation. In spite of this, efforts and informal activities are in some cases devices tends to reduce the number of in- are being made to include MOOCs in the field preferable to formal workshops, because they ternet cafés, even if these continue to play of TVET as well. minimise the psychological barrier.33 a significant role for those who do not have

Iraqi youth in the ”Innovation Hub The Station“ in Bagdad

22 1223 Example M-Learning Learning via mobile phones or smartphones (m-learning) is considered to have considerable Since 2012, the Technical Education and recognised standards. Learners can obtain a 12 per cent had already completed a potential for developing countries, in particular Skills Development Authority (TESDA) of certificate after taking an examination (for which TVET course. Around 19 per cent live in for population groups that are disadvantaged or the Philippines is offering free access a fee is payable). It is estimated that approxi- a region that is classified as poor or difficult to reach.37 to vocational MOOCs in the form of the mately 30 per cent of participants make use of very poor. Unfortunately, it cannot be TESDA Online Programme. In February this option. ascertained from the data collected how This can primarily be attributed to the wider 2018, there were 59 courses on offer in many participants work in the informal use of this technology, which allows far more different vocational fields (ICT, electronics, The target group for the programme is very economy or how many change over to people access to the internet than have access agriculture, tourism, air conditioning and wide and includes those who work as well the informal sector after the course.36 via computers. However, here, too, there is still refrigeration technology, entrepreneur- as students who have dropped out of school, very little literature about the learning results ship, home economics, etc.). The courses returning migrants, the unemployed, and people A prerequisite for the success of the of m-learning and the impact it has on its are developed on the basis of nationally with disabilities who cannot attend a main- programme is greater access to the users. In agriculture, in particular, m-learning stream school. Those who work in the informal internet among the population. In 2016, is comparatively widely used in the informal economy explicitly belong to the target group. 63.58 per cent of Filipinos had access economy. An overview of established learning to the internet. The courses do not reach applications for small farmers in Kenya shows Over a million people have taken part in the people without access to the appropriate various approaches for acquiring skills, ranging TESDA Online Program since 2012. By far the infrastructure and without sufficient basic from the provision of information to audio most popular courses are in the fields of ICT education. This could be an explanation lessons and text message services, which also (51 per cent) and tourism (20.7 per cent). for the very low rate of participation for offer structured forms of learning with tests A survey of learners who were enrolled in courses on agriculture. Unfortunately, and interactive formats.38 In addition to the wid- January 2018 shows that 65 per cent of them there is no data for a detailed empirical er use of the technology, which is a (financial) are women. analysis of the target groups reached challenge for developers even in the case of and the impact of the courses on working free-of-charge services, evaluations also show The majority of learners graduated from conditions, income, etc. the significance of the social and organisational college, 16 per cent attended school up to context of learning and the application in prac- Virtual Reality to promote innovative agriculture the 10th class at the most, and a further tice of what has been learned that is crucial for success.39

24 1325 4

LESSONS LEARNT AND PRACTICAL Table 1: Overview of instruments for those working in the informal economy as a function of the targets pursued

EXAMPLES FROM DEVELOPMENT COOPERATION Objective Skills addressed Instruments and supporting measures

Providing skills in and for › Knowledge of own rights › Coupling training with the use the platform economy of the platform and certification In recent years, numerous initiatives on TVET in relation to income, employability, living and › Specialist knowledge and expertise (impact sourcing) for those working in the informal economy working conditions or social participation of › Soft skills and (English) › Targeted training in training have been created under the digitalisation the target groups. When it comes to sources language knowledge centres banner. In the case of many of these initiatives, of inspiration and fresh ideas, however, they Supporting (urban) entre- › Specialist knowledge and › MakerSpaces/FabLabs it is still largely unclear what effects they have highlight options for exploiting and taking into preneurs for innovation expertise › Training courses with sector asso- account the opportunities and risks of digi- processes › Digital skills ciations (trade associations) and › Business skills other forms of self-organisation talisation in the field of TVET cooperation for those working in the informal sector. Facilitating access to digi- › Computer literacy › Use of existing infrastructure and tal services for everyone › Digital skills learning environments (e. g. internet cafés, libraries, Community Table 1 provides an overview of instruments centres) and supporting measures for TVET coopera- › Peer-instruction, e. g. in clubs

tion benefiting those working in the informal Promoting the exchange of › Specialist knowledge and › m-learning economy as a function of the targets pursued. knowledge in agriculture expertise › Learning apps Below is a brief description of relevant pro- Opening TVET institutions › Specialist knowledge and › Creation of blended-learning jects and programmes. for workers in the informal expertise activities economy › Digital and business skills

Making visible and recog- › All skills acquired via informal › E-portfolios nising skills and non-formal means › Blockchain

Improving the quality and › Specialist knowledge and › Participative innovation processes relevance of the informal expertise › Provision of simulator (virtual/ apprenticeship augmented reality) and other learning materials online Virtual Reality in the Making at Technical University Al Hussein in Jordan

26 1427 Brief description of relevant projects and programmes

Providing skills in and for the platform economy Some platforms that act as intermediaries for For instance, industry-related sources report TVET measures with the focus on both techni- The platform economy provides various possi- location-based services offer training courses that young people are benefiting from an cal knowledge and skills and also on entre- bilities for small enterprises to market their and in some cases also certification for those increase in income of between 40 and 200 per preneurship or business skills look particularly products or services more effectively. Self-em- providing the service with the aim of enhanc- cent. At the same time, platforms are expe- appropriate here, as in GIZ’s ‘eSkills4Girls ployed workers are able to earn a living by ing customer satisfaction. Particularly attrac- riencing a reduction in costs of up to 40 per Ghana’ project. In this project, 150 women undertaking microtasks thanks to the platform tive forms here are partnerships with educa- cent thanks to lower employee fluctuation.44 from the informal economy receive training in economy. In this context, both target groups tional institutions that can also offer nationally Evaluations of results show, however, that basic digital skills for use in their microen- can benefit from targeted training measures in valid certification. Examples of such platforms such programmes do not reach the most dis- terprises in cooperation with ‘Developers in different areas: they can improve their basic in India41 are supported by the Michael and advantaged young people, as certain prerequi- Vogue’.46 skills such as reading and writing, acquire Susan Dell Foundation.42 sites such as in relation to language skills are specific vocational skills in the case of local required to participate in the training. MakerSpaces or FabLabs represent a promis- services platforms or develop cross-cutting In Kenya, an example like this is provided ing approach for supporting the technological competences such as time management and by the Lynk platform. A similar approach is Supporting (urban) entrepreneurs for change in the informal economy. Appropriate self-marketing.40 adapted in the field of business process out- innovation processes experience as for the Intermediate Technology sourcing under the title ‘impact sourcing’. Here, Both Casey (2016) and the World Bank45 advise Transfer Unit (ITTU) and the Ghana Regional social criteria are applied when recruiting and against approaches that envisage a pure Appropriate Technology Industrial Service that qualifying employees. The Rockefeller Founda- transfer of technologies without taking account evolved from it, which was active in the 1980s tion supports this approach with the ‘Digital of the special conditions in the informal econ- and 1990s, show the potential for creating Jobs Africa’ programme initiated in 2013, omy. Indeed, they say it is much more effective new jobs and increasing productivity. Consid- which led to the foundation of the Global to support entrepreneurs or founders of start- erations for the creation of new MakerSpaces Impact Sourcing Coalition. Examples of good ups with innovation processes that build on are based on more recent experience in Latin practice for implementing training measures existing technologies or adapt new technologies America47 and can also link up with GIZ’s are summarised in a ‘Demand Driven Training to the users’ context in a targeted way. project experience in Iraq. If MakerSpaces Toolkit’.43 The results of such approaches have cannot be established permanently, time- been evaluated and in some cases empirical limited events provide an opportunity for evidence is available. stimulating innovation or raising awareness of local innovation products.48

Playfully learning with the Habi Gaming App in Mongolia

28 1529 tion models are introduced which involves A further project in which GIZ is also involved learners supporting each other, for example is the Sustainable Smallholder Agri-Business in clubs.52 Programme. Learning videos produced locally on a participative basis are distributed via Promoting the exchange of knowledge methods such as WhatsApp. They represent in agriculture one component of a broader offering that com- New technologies are deployed in many pro- bines advice, information systems and face-to- jects for small farmers. Learning using mobile face events together within the framework of phones (m-learning) is generally a component Farmer Business Schools aiming at modernis- of a more complex offering here in which ing production chains.55 personal interactions with advisors and forms of self-organisation play an important role in Opening TVET institutions for workers exchanging knowledge. A well-documented and in the informal economy successful example is the UshauriKilimo infor- As a means of reforming TVET systems in Discussions on youth-oriented website ‘Femina Hip’ in Tanzania mation service in Tanzania, which was imple- countries with a significant informal econ- mented from 2011 to 2016.53 The participative omy, it is often recommended to open TVET approach selected for developing the offers, institutions for those in informal employment Facilitating access to digital services programme in India, which aims to train one the involvement of both men and women and and to direct training offers more effectively to for everyone person per household in rural areas in digital the integration of different media (mobile the qualification requirements of the informal If digital offers, whether it is for the pur- skills.50 The Digital Skills Toolkit51 from the phone, internet and radio) were cited among economy.56 New technologies can make a con- pose of learning or for (informal) work (e.g. International Telecommunication Union (ITU) the success factors. Further practical exam- tribution here by developing blended learning FinTechs, e-government services, platforms), offers a systematic guide and numerous good ples were collected, including by the Food and offers that offer informally employed workers are to be used, basic skills are required in practical examples for developing large-scale Agriculture Organization of the United Nations greater flexibility compared to traditional addition to the physical infrastructure. There programmes. Here, particular attention is (FAO) as part of its e-agriculture initiative.54 courses. are many approaches and examples for paid to the use of existing infrastructures for teaching digital skills that either focus on achieving the largest possible target group, for certain target groups such as young girls and example through offering computer courses in women, as is the case of the EQUALS Digital public libraries, schools, community centres Skills Fund supported by GIZ,49 or are aimed and internet cafés. In addition to conventional at a broader group, as for the PMGDISHA training settings with lecturers, peer instruc-

30 1631 The programme ‘Innovation in Vocational Edu- to scrutinise their goals and skills that the cation and Skills Training (INVEST Africa)’ run compilation of a portfolio is meant to encour- by the Commonwealth of Learning provides an age.59 A further development of the e-portfolio interesting example in which the development approach with blockchain technologies offers of flexible courses that are directed towards different options for raising the credibility of the informal economy is embedded in a com- the skills documented and accessibility to the prehensive process of organisational develop- data for learners and employers or training ment for 13 institutions. Relevant lessons can institutions. be learned for similar projects on the basis of the evaluation report which is available to the Such approaches have considerable potential general public.57 in countries with very fragmented TVET and educational systems where a large number of Making visible and recognising skills education providers and training programmes Skills Passport is a keyword used to describe exist. However, to date there are still no good various initiatives which pursue the goal of practical examples and evaluations outside the Augmented Reality in Kosovo – using the welding simulator during a training course raising the visibility and recognition of skills university sector and industrialised countries. gained formally or informally through digi- In contrast, various studies on the institutional tal solutions. E-portfolios use a technology and technical prerequisites already exist.60 However, examples exist for innovative teach- a simulation platform for training as a welder, that is comparatively widespread and tried ing and learning media which could also be shows how a VR application developed locally and tested: they are a digitalised version of Improving the quality and relevance of the made available to apprentices (in addition to at comparatively low cost can also be made conventional portfolios in which learners can informal apprenticeship other target groups such as the unemployed available to disadvantaged groups. collect and present the certificates, letters of Digital media can play an important role in the or those working in the informal economy) in recommendation, work samples, etc. that they dual educational system based on the German order to develop their specialist skills in areas The Indian start-up is supported by the have gained. India adopts this approach in the model and also purely company-organised that go beyond the skills taught in the compa- Michael and Susan Dell Foundation.62 Howev- National Skills Network project, especially for apprenticeship models.61 There are hardly any ny where they are serving their apprenticeship. er, the question arises here of how didactic employees in the informal economy.58 available sources for the use of digital media integration of the openly accessible teaching as part of traditional apprenticeship training, An example for this is provided in the appli- and learning material into informal education According to the ILO, the main advantage of in the form in which it occurs in the informal cation of virtual reality (VR) and augmented can best be achieved, and to what extent new an e-portfolio compared to the paper version economy in developing countries. reality (AR) in the field of welding. Looking at technologies can also be deployed to provide is that it is more user friendly. The disad- the special context of developing and emerg- trainers with further training. As yet, there are vantage is that technical aspects may force ing market countries, the example of SkillVeri, hardly any research results and reports on into the background the impetus for learners experience on this subject.63

32 1733 5

than technology transfer. Adaptation of the Self-organisation: Organisations in the informal RECOMMENDATIONS FOR ACTION content of new media to the local languages economy (e. g. trade associations) can play an and dealing consciously with stereotypes and important role when it comes to exchanging FOR TECHNICAL AND VOCATIONAL gender issues are also part of contextualis- knowledge and disseminating innovations and EDUCATION AND TRAINING IN ation. should therefore be included and supported as far as possible. DEVELOPMENT COOPERATION

5.1 Building on scientific findings 5.2 Closing knowledge gaps

The results of research conducted to date Holistic approach: TVET measures can often There are still a large number of blind spots › Creating bodies for an exchange between suggest consideration of the following aspects only demonstrate their full effect on the living in research on the effects of digitalisation experts, such as a specialist conference when planning interventions: and working conditions of those employed in in the informal economy and in effective ap- or the organisation of a symposium as the informal economy, if they are coordinated proaches for TVET in development cooperation part of an existing event, e.g. in the con- Differentiation according to target groups: with other support measures and offers, such Many questions remain unanswered. Research text of ICT for development (ICT4D)64 Within the group of those who work in the as better access to capital for investments or work is carried out in different specialist informal economy, there are subgroups whose an improvement in the security situation. disciplines but research into TVET is barely › Call for Papers in connection with a rele- goals, usage behaviour and skills as regards represented. The following measures could vant journal or study application request new technologies may differ fundamentally Contextualisation: Accessible technologies make a contribution to a more evidence-based (e. g. women and men, survival entrepreneurs should as a rule be given preference, and the course of action: › Supporting thorough evaluations, as often and gazelles, depending on the sector or target group should be offered opportunities the unintended results of interventions professional environment). These differences to learn the technologies and adapt to current have a detrimental effect on the long- should be taken into account by carrying out needs. Local innovation is often more effective term impact or create new disadvantages in-depth preliminary studies and participative approaches for the development and evaluation of measures.

34 1835 5.3 Rolling out and transferring good examples

Even if the empirical basis for verifying the › Maximising the potential of digital or a local cluster. This includes the in- effects is patchy, the practical examples teaching and learning media within the volvement of forms of self-organisation described above are inspirational and provide framework of established initiatives for and informal exchange of knowledge in ideas for professional training in development those working in the informal sector. the programme. cooperation that favour those who work in M-learning is suitable, for example, as a the informal sector. The following approaches follow-up to consolidate or refresh con- › Using available technologies as a basis are considered to be particularly interesting. tent that has been learnt, or to transfer and using existing infrastructures, e. g. In accordance with academic findings, it is it to new practical applications, and according to the principle of ‘Bring- advisable to carry out thorough preliminary thus to enhance the long-term effects of Your-Own-Device’ and by using libraries, studies and, if necessary, to make adjustments conventional training measures. schools, and other learning environments to the respective context before replication or so that accessible offers are available upscaling. › Involving local developers in the con- cheaply to a wide range of users. cept design and production of teaching and learning media, whether this is, for › Assisting women and girls to use new example, through awarding contracts in technologies by teaching them digital the conventional way or through com- skills and boosting their self-confidence, petitions and support programmes for e. g. through positive role models. The start-ups. If applicable, targeted further aim is to thus allow them to improve training for developers is helpful here their living and working conditions and and makes a contribution to strengthen- to overcome the digital gap. ing the ICT sector in the field. › Getting (global) companies on board as › Supporting innovation processes in the donors and/or cooperation partners, in informal economy, for example through particular to introduce further educa- (mobile) MakerSpaces or MakerFairs and tion and fair working conditions in the holistic offers of training and finance platform economy. or equipment. When doing this, informal companies and entrepreneurs should, if possible, not be seen in isolation but as ITC perspectives for a modern youth in Bagdad an integral part of a production chain Using Virtual Reality during a hackathon in Bagdad

36 1937 6

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44 2345 ENDNOTES

1 ILO (2002), Resolution Concerning Decent than digitalisation, but the results are also 17 ILO (2018) 23 Melia 2019, p. 21 ff. Work and the Informal Economy, Geneva, often transferable to digital technologies. The 18 According to an estimate by Mastercard, 24 Casey and Hughes (2016) p. 2 (Link). research is based on case studies in different the platform economy is going to increase occupations in Ahmedabad (India), Dhaka 25 Melia (2019), p. 23 2 GIZ (2019), p. 4 f. its gross volume of 204 billion dollars in (Bangladesh), Durban (South Africa), Lima Position paper New Work and TVET 2018 by more than double globally by 2023. 26 ITU (2018) (Peru) and Nairobi (Kenya). The international https://mia.giz.de/qlink/ID=246264000 Two-thirds of this sum will be paid to the comparison reveals very great differences in 27 Kende and Quast (2016) checked most recently on 24 June 2020 self-employed workers on the platform the use of technology within one occupation; (Mastercard and Kaiser Associates 2019, 28 Chacaltana et al. (2018), p. 19 3 Bruckner et al. (2017), p. 23 ff. for instance, mobile phones are hardly used p. 3). According to the World Bank, 0.3 by street vendors in Dhaka and Durban, 29 World Bank (2016), p. 123 4 Kumar and Joseph (2005), p. 102 to 0.5 per cent of the workforce are in whereas in Lima and Nairobi they are a key the platform economy (World Bank 2019, 30 Cf. https://digcomp.enterra.de/, 5 Chang and Huyhn (2016) technology for communication with customers p. 26). GoJek (Indonesia) is an impressive checked most recently on 24 June 2020 and suppliers, for financial transactions via 6 Melia (2019) example for the rapid growth of a platform the M-Pesa system or for communication with 31 BOTA (2012) company: founded in 2010, it now operates 7 World Bank (2016), p. 29 ff. the municipal water works. successfully over national boundaries. 32 cf. Adams et al. 2013, p. 25 ff. 8 Ibid., p. 120 11 Ibid. 19 Hunt and Machingura (2016) 33 Cf. Waldman-Brown et al. (2013) 9 van Belle and Mudavanhu (2018) 12 See Schmidt (2017) and Hosny (2018) 20 Cf. for example ILO (2018), p. 110 as well 10 Casey and Hughes (2016). ‘New technologies’ 13 Leimeister et al. (2016), p. 46 as Hunt and Machingura (2016), Aneja et al. 34 ITU (2018) here mean technologies in general that are (2019) 14 Cf. Schriner and Oerther (2014) 35 Liyanagunawardena and new in the context studied: they include 21 Cf. Bhattacharya (2019) as well as Berrou Adams (2014), p. 39 electric sewing machines which are new 15 Graham et al. (2017), p. 138 and Mellet (2018) for, say, seamstresses in Ahmedabad when 16 In Asia, 80 per cent of crowdworkers hold at compared to the manual sewing machines 22 OECD (2018), p. 13 least a Bachelor degree; in Africa the figure with hand cranks and pedals that they used is 47 per cent (ILO 2018, p. 36). in the past. These therefore address more

46 2447 36 According to the 2015 “Labour Force Survey” 47 Waldman-Brown (2013) 54 See http://www.fao.org/e-agriculture/home, 62 See https://www.msdf.org/blog/2017/01/ approx. 38 per cent of workers are employed checked most recently on 24 June 2020. skillveri-gaming-skilling-india/, checked 48 See implementation examples taking in the informal economy. most recently on 24 June 2020. http://makerfaireafrica.com/ as an example, 55 See https://www.ssab-africa.net, 37 UNESCO (2012) checked most recently on 24 June 2020. checked most recently on 24 June 2020. 63 Koh (2014)

38 Henze and Ulrichs (2016) 49 See https://webfoundation.org/2019/04/ 56 Cf. e. g. OECD (2008) 64 For example meet-the-equals-digital-skills-fund-grantees/, https://www.elearning-africa.com/index.php 39 Nampijja and Birevu (2016) 57 Isaacs (2015) checked most recently on 24 June 2020. or https://www.ict4dconference.org/, 40 Aneja et al. (2019) 58 See https://www.nationalskillsnetwork.in/ checked most recently on 24 June 2020. 50 See https://www.pmgdisha.in/about- skills-passport/, checked most recently 41 E. g. Housejoy, Zimmber, Mr. Right, pmgdisha/, checked most recently on 24 June 2020. UrbanClap on 24 June 2020. 59 ILO (2018) 42 See https://www.msdf.org/blog/2015/09/ 51 https://www.itu.int/en/ITU-D/Digital- skill-development-digital-age/, Inclusion/Documents/ITU%20Digital%20 60 Cf. for example GIZ (2019); Grech and checked most recently on 24 June 2020. Skills%20Toolkit.pdf Camilleri (2017); Mikroyannidis et al. (2018)

43 See https://www.r4d.org/wp-content/ 52 See https://www.itu.int/en/ITU-D/Digital- 61 On this subject, see the selected uploads/R4D_ICT-TrainingModels.pdf, Inclusion/Documents/ITU%20Digital%20 bibliography of the BIBB (German Federal checked most recently on 24 June 2020. Skills%20Toolkit.pdf, checked most recently Institute for Vocational Education and on 24 June 2020. Training) on media competence and 44 Bellagio Centre (2017), p. 16 media usage in TVET dated January 2019 53 Sanga et al. (2016). Also see 45 World Bank (2016), p. 120 ff. available online at https://www.bibb.de/ http://www.fao.org/3/i9032en/I9032EN.pdf, dokumente/pdf/a1bud_auswahlbibliografie- 46 See https://www.eskills4girls.org/wp- checked most recently on 24 June 2020. medienkompetenz-mediennutzung- content/uploads/2019/01/Karte-1_Print.pdf, berufsausbildung.pdf, checked most checked most recently on 24 June 2020. recently on 24 June 2020.

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