Dirty hands or smart life Employment in Polonnaruwa’s automotive sector Master thesis International Development Studies Utrecht University Max Slagboom 5974909 Supervisor: Annelies Zoomers 1 Dirty hands or smart life Employment in Polonnaruwa’s automotive sector Master thesis International Development Studies Utrecht University Max Slagboom 5974909 Supervisor: Annelies Zoomers Cover picture: working site of a large tinker in Polonnaruwa (photo taken by author) 2 Abstract Unemployment, especially amongst youth, is an important development issue nowadays. This phenomenon interestingly exists next to a big demand for workers on the labour market. A so-called (skills) mismatch. This research explores the potential of one specific economic sector; the automotive (that is everything that revolves around vehicles) and its potential as a source of decent employment. The research area is Polonnaruwa, Sri Lanka, a rural area with an ambitious development program in place. More specifically since a tertiary educational facility is to be built in this area, with partial focus on the automotive sector. Towards this extent, the local automotive businesses were mapped and subsequently 31 employers and employees were interviewed. It seems that the conjuncture is doing well and will improve, working conditions appear fair, currently there is room for more workers, and (educational) entry requirements are rather low. Despite these facts, it is difficult to find good workers: a mismatch on the labour market between supply and demand. Those currently employed in the sector point to the issue that the sector fails to attract youngsters. They have several interesting theories why this is the case. Mostly it came down to the fact that it appears that youth are in pursuit of a ‘smart life’, which entails working in a suit, in an air conditioned office on a computer. Consequently, youth do not want to work with their hands, or become dirty. These theories were put to the test by interviewing 20 local youth from farming and fishing communities. From these interviews it arose that interest towards a smart life is actual rather limited. For youth, the most important issue considering employment is money. Youths feel pressure to provide for the parental family, as they feel the pressure to earn a good income in order to be able to start/maintain their own family. The main cause for the disinterest seems to stem from the fact that when starting as a manual labourer in the automotive industry, one is unpaid for 6-12 months whilst learning the trade on the job. An investment few are able/willing to make, mostly because of financial reasons. For a similar reason, interest in following tertiary education is also limited; one has to travel or live in another city. Because better wages can be earned abroad, the lion’s share of youth are interested in working in another country, as do some workers. This research found some interesting cases of Sri Lankan nationals that worked abroad for several years, and founded successful companies back in Polonnaruwa with the money earned abroad. In general, a center for tertiary education focusing on the automotive sector in Polonnaruwa would be very welcome since it enables local youth to follow extra education after secondary school. This will increase their chances to demand a better wage, as well as the ability to choose between several employers. A side effect will be that the state will exert more control on the educational system, partly at cost of the learning on the job system currently in place, raising the bar for whoever seeks employment in the sector. 3 Foreword Just before departing to Sri Lanka in early February 2018, I had no clue whether or not I might be able to execute my research. It seemed complete madness to go and do fieldwork in Polonnaruwa, an area I only knew by looking at Google Maps. I had no contacts in the area and little knowledge of the local culture but for the casual travel guide and my own experience of spending a short holiday in the country as of 2012. Instead of feeling joy for this great adventure, I just felt utterly anxious and was not able to sleep well. Spending three weeks in Negombo and capital Colombo did not really change this situation. All Sri Lankans I spoke with seemed surprised when I told them I was going to live several months in Polonnaruwa (why would you want to go there?), and nobody seemed to have contacts in the surroundings. After encountering dead ends time after time when looking for a translator (or any relevant contacts at all), I decided to just plunge in and took the train to Polonnaruwa. Upon arrival, I started off doing my research, not caring whether or not I had people to help me out. Eventually, with a great dose of serendipity, this turned out great. My first words of gratitude are for the respondents of this research and their willingness to partake in my research. I would like to thank Manoj Silva for being a wonderful and flexible translator, as well as the Miridiya Organization for their excellent community work in the rural communities surrounding Polonnaruwa, spreading a positive message of empowerment through educational and economic assistance, next to community building. Without Manoj’ help, this research would not have been possible. Furthermore, I would like to thank Sumanasiri of the Jayaru Guesthouse for providing me a home away from home. A big thanks goes out to the Center for Poverty Analysis in Colombo for being a good sparring partner in general. I am especially grateful for their efforts to organize a session with fellow academics and professionals for the presentation of my preliminary research findings in early June, and the long debate that followed. Thanks to Camila Orjuela, I was able to get in contact with this great organization. Another note of thanks goes out to the Dutch Embassy in Colombo for making me feel welcome in Sri Lanka. Furthermore, I would like to thank the Netherlands Enterprise Agency and the University of Utrecht for providing me with a relevant research topic. My supervisor, Annelies Zoomers, deserves a special mention for her toughness in demanding a clear research plan in the early phase of the research, as well as her inspiring view on just using common sense. This greatly helped not getting lost in the vast universe of academic theories and jargon. Finally, and most importantly, I would like to thank my beloved ones for providing me the support in good and bad times. I thank them for providing me with the strength and courage to pursue my goals and dreams. Bohoma istoothi, Max Slagboom Amsterdam, The Netherlands August 2018 4 Contents 1. Introduction............................................................................................................................................................................ 9 2. Theoretical framework ......................................................................................................................................................... 11 2.1 Rural-urban migration: a depressed economy leads to poverty and migration ............................................................. 11 2.2 TVET: the cure for rural poverty ..................................................................................................................................... 11 Figure 1: Simplified theoretical framework on the gridlock of economically depressed areas, and how to break it through education ............................................................................................................................................................................. 12 2.3 Conceptual framework ................................................................................................................................................... 13 Figure 2.2: Conceptual framework ....................................................................................................................................... 13 2.4 Research questions......................................................................................................................................................... 13 2.4.1 What does the local automotive business look like? ............................................................................................... 13 2.4.2 What are educational needs in the automotive sector? ......................................................................................... 14 2.4.4 What are attitudes of local youth towards employment?....................................................................................... 14 2.4.5 What are attitudes towards migration of current workers? ................................................................................... 14 3. Regional theoretical framework ........................................................................................................................................... 15 3.1 Geographical location ..................................................................................................................................................... 15 3.2 Politics ............................................................................................................................................................................ 15 3.2.1 International development partners: theater of a ‘Great Game’? .......................................................................... 16 3.3 Pibidemu Polonnaruwa: awakening Polonnaruwa ........................................................................................................