Enhancing Employability in OIC Countries: The Role of Capacity Building and Microfinance
This paper discusses solutions to the unemployment problem in Organization of the Islamic Conference (OIC) member countries.
The recent global financial and economic crisis has impacted employment in OIC member countries. The already high unemployment rates among young people increased further during and after the crisis and triggered social and economic problems. Challenges related to capacity building in OIC member countries include weak linkages between educational institutions, enterprises and employment offices. The paper focuses on enhancing employability and employment opportunities through capacity building and supporting the role of microfinance in job creation and poverty alleviation. It highlights practical approaches that are important to enhance employment opportunities and avoid impairment of skills of the labour force. They include:
- Enhancing capability through developing a compatible vocational education and training system;
- Promoting employment and income generation by supporting and facilitating MFI operations.
The paper suggests that establishing a Microfinance Social Investment Fund and developing an integrated Waqf-based Islamic microfinance model would support MFI operations and increase their outreach to generate self employment.
