Page 1 PROJECT INFORMATION DOCUMENT (PID) CONCEPT STAGE Report No.: AB1605 Project Name Rural Migrant Skills Development and Employment Project Region EAST ASIA AND PACIFIC Sector Other social services (40%); Vocational training (40%); Adult literacy/non-formal education (20%) Project ID P085376 Borrower(s) CHINA Implementing Agency Ministry of Labor and Social Security Environment Category [ ] A [ ] B [X] C [ ] FI [ ] TBD (to be determined) Date PID Prepared November 18, 2006 Estimated Date of Appraisal Authorization July 20, 2007 Estimated Date of Board Approval November 28, 2007 1. Key development issues and rationale for Bank involvement Internal labor migration in China is occurring on an unprecedented scale with huge economic and social implications. Recent estimates of the number of rural migrants have ranged from 115 to 150 million and the number continues to rise. While the push and pull factors are characteristic of all modernizing economies, the traditional legal and institutional separation between the rural and urban realms makes the Chinese experience unique and the challenge enormous. The government recognized the crucial role of migration and is actively facilitating it through a range of policies and programs. A succession of State Council documents outlined the strategies and put forward opinions on how to guarantee the legal rights of migrant workers, improve their work environment, provide better employment services and training, solve social security problems, reduce barriers to mobility, and provide public services for migrants. National training programs have been instituted. Obstacles to the transfer of farmers to urban labor markets remain. Rural workers are relatively poorly educated and most do not have labor contracts. Quality training and employment services can help facilitate their access to urban labor markets and improve the quality of jobs they can get. However, the capacity of the governments to provide these services is limited. Private sector provision of these services is growing but cannot fully meet the substantial demand in a very short period of time, or reach the less advantageous groups. The proposed operation directly supports government objectives and policies. It would support specific investments to enhance skills development, employment services, and worker protection, as well as efforts in policy and institutional development. Activities would be carried out by the central government (MOLSS) and the local governments in Ningxia autonomous region, Shandong and Anhui Provinces. Bank’s involvement will help transmit successful experiences both in China and internationally. IBRD’s extensive record with operations in skills development, labor market programs, and social protection will assist the learning. Page 2 The proposed operation directly supports the objectives set out in the Bank’s China Country Partnership Strategy (CPS) and is closely linked with other relevant Bank operations. The AAA program on Rural to Urban Migration and Social Policies will produce analytical support to the design. The basic education project and the proposed TVET project will contribute to a more solid educational foundation for future migrants. The project will build on experience of the poverty reduction projects and a number of analytical activities, including those on Labor Market Development, Rural Health, Pensions, Rural Social Protection, and the Poverty Assessment. 2. Proposed objective(s) The proposed project development objective is to support the rural to urban migrants to access better employment opportunities that improve their incomes and working conditions. This objective will be achieved by improving their access to skills development opportunities and enhanced employment services, and by strengthening worker protections. 3. Preliminary description The proposed operation would include the following five components: (a) Developing Policies, Institutions, and Capacity – to support policy analysis, the development of implementation guidelines that concerns migration, and capacity building to improve the management and delivery of programs and services; (b) Skills Development – to enhance access to quality and relevant training programs by building training capacity that is responsive to the needs of the market, to develop and test performance-based budgeting mechanisms, and to encourage programs that offer learning opportunities for the poor. It will support innovative interventions that promote more efficient use of public resources. (c) Employment Services – to strengthen job placement and related employment services in order to channel labor market information more efficiently to rural migrants and to enhance the value of services for migrant workers and their potential employers. (d) Workers Protection – to support the protection of the basic rights of rural migrants in urban areas by assisting the government in developing policies and programs, piloting new implementation approaches, and empowering migrants with knowledge and information. (e) Monitoring and Evaluation – to implement a monitoring and evaluation framework that provides for evidence-based decision-making on optimal resource allocation and effective program design. 4. Safeguard policies that might apply The project will focus primarily on strengthening the capacity of learning institutions through investment in training equipment, training of teachers, and development of training curriculum and new management approaches. It will build the capacity of the government in policy development and in the management and delivery of employment services. It is not anticipated that the project will finance civil works. Specific contents of the investment will be discussed during project preparation. A social assessment will be carried out as part of the project preparation to understand the perspectives of various stakeholders (e.g. women, minority, and vulnerable groups), and to reflect their needs in the project design. Page 3 5. Tentative financing Source: ($m.) BORROWER 30 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT 50 Total 80 6. Contact point Contact: Xiaoqing Yu Lead Social Protection Specialist Tel: (86-10) 5861-7780 Fax: (86-10) 5861-7800 Email: Xyu@worldbank.org