News Releases

Nov 30, 2005

IDB approves $10 million loan for employment program in Dominican Republic

Support for youth job training and targeting assistance to poorest households

The Inter-American Development Bank today announced the approval of a $10 million loan to the Dominican Republic to support the establishment of a national employment system, job training for youths and stronger mechanisms to deliver social assistance to the poorest households.

The loan will help finance the first phase of a program to be carried out by the Ministry of Labor (SET) and the Vice Presidency of the Republic, through the Technical Executive Directorate of the Social Cabinet (DTEGS).

The program components to be executed by SET seek to boost the employability of people who receive job training, especially women and youths with little formal education. They also aim to improve the quality of jobs secured by trained workers and facilitate job searches for the unemployed.

The program will help establish a National Employment System, which will be guided by a commission with representatives from the government, the private sector and labor. In order to support job placement, the system will have an online job bank, eight regional employment offices, job kiosks, job fairs and workshops on employment services. A labor observatory and studies will also be financed.

Young unemployed or underemployed youths between the ages of 16 and 29 who are not in the formal education system will be eligible for job training. Courses will cover basic labor skills such as planning, organization and customer service; technical training and internships in businesses. Participants will receive study supplies, a modest stipend and insurance against accidents.

The part of the program under the DTEGS will strengthen the National System of Beneficiaries (SIUBEN) as a technical instrument to identify households eligible for social assistance due to their poverty and marginality.

The program will finance technical assistance to improve the operations of gathering, validating and processing information to update the SIUBEN and fine-tune the methodology for selecting beneficiaries for social programs. It will also finance external evaluations and the purchase of computers, software and other equipment.

The loan is for a 25-year term, with a 3.5-year grace period, and a variable interest rate. The IDB could eventually consider granting a $30 million loan for a second phase of the program.

 

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