Can skill diversification improve welfare in rural areas? Evidence from the rural skills development project in Bhutan

Access for all to good quality education, vocational training and workplace learning is a fundamental principle of social cohesion and economic growth. Some groups of people may require targeted attention if they are to benefit from education, training and employment opportunities.  

This is particularly the case for disadvantaged youth, lower skilled workers, people with disabilities, and people in rural communities. The attractiveness of vocational education and training is enhanced when combined with entrepreneurship training and when public policies encourage utilization of higher skills by business. 
 

Eight out of 10 of the world’s working poor who live on US $1.25 per day live in rural areas, where many are caught in vulnerable employment, especially in agriculture.Flourishing rural areas are vital to regional and national development. Yet, rural economies tend to face a wide range of challenges that urban areas are more likely to overcome. These include access to transportation, sanitation and health services, and a consumer base in close proximity to support small and medium enterprise development. Women and men working in rural areas also face difficulties associated with a paucity of economic opportunities, under investment, poor infrastructure and public services, including education, and, in many cases, weak governance and underdeveloped markets.

Education, entrepreneurship, and physical and social infrastructure all play an important role in developing rural regions. Skills are central to improving employability and livelihood opportunities, reducing poverty, enhancing productivity and promoting environmentally sustainable development.