To foster inclusive economic growth, the Ministry of Economy in El Salvador is set to implement a groundbreaking employment and skills development program, named «ALDEA.» This initiative, backed by a substantial $150 million funding from the World Bank, aims to create opportunities and enhance skills for young individuals, women, and vulnerable adults aged between 18 and 40.
The World Bank’s announcement on Tuesday marked the approval of the financial support for the project, officially titled «Promoting Employment Opportunities and Developing Skills in El Salvador,» also known as «ALDEA.» The Ministry of Economy (MINEC) will oversee the execution of this transformative program.
The primary objective of ALDEA is to facilitate access to employment opportunities and foster skill development among specific demographic groups, including young people, women, and vulnerable adults aged 18 to 40 who are not currently studying, employed, or receiving training.
Maria Luisa Hayem, the head of MINEC, emphasized that once the loan receives approval from the Legislative Assembly, ALDEA will have a five-year implementation period spanning from 2024 to 2028, with an estimated impact on 40,000 individuals.
«The anticipated impact of the project aligns with the economic pillar of the Cuscatlán Plan, aiming to establish the foundations for inclusive and sustainable economic growth. This will be achieved through social justice, local revitalization, solidarity, opportunities for the entire population, productive linkages, gender equality, environmental sustainability, state efficiency, and commercial competitiveness,» stated Hayem.
To execute the initiative effectively, the Ministry will establish an implementation unit supported by organizational units involved in project implementation. A qualified team, including a project coordinator, environmental and social specialists, financial management experts, procurement specialists, monitoring and evaluation specialists, and technicians, will be in place throughout the project’s execution.
How will the project operate?
Minister Hayem outlined that ALDEA stems from the need to strengthen Salvadoran human capital with skills demanded by the current economic dynamics. The project is designed with five components to address contemporary challenges.
- Enhancing Employability: This involves promoting access to employment through training in growing sectors, specialized certifications, stipends for training attendance, and support for women responsible for dependents.
- Temporary Employment Subsidies: The project includes temporary employment subsidies for companies providing individuals with their first job, covering up to 75% of the minimum wage in the commerce and services sector for a maximum period of six months.
- Entrepreneurship Promotion: ALDEA will support entrepreneurship by offering training, mentoring in business management, access to capital, and overall project management, monitoring, and evaluation by an implementation unit.
- Improving Learning Environments: Infrastructure interventions in five physical locations across Ahuachapán, Sonsonate, Usulután, San Miguel, and Morazán will enhance learning environments.
- Emergency Response Component: A contingency emergency response component ensures swift access to uncommitted resources to address any unforeseen situations during project implementation.
ALDEA represents a crucial step towards creating a more inclusive and resilient economy in El Salvador, aligning with broader national development goals. The implementation of this program is poised to make a lasting impact on individuals and communities, providing them with the tools needed to thrive in the evolving economic landscape.