The Role of the National Skills Development Authority (NSDA) in Bangladesh’s Skills Ecosystem

The National Skills Development Authority (NSDA) stands as the cornerstone of Bangladesh’s skills development landscape, serving as the central coordinating body for all skills-related initiatives in the country. Established through the National Skills Development Authority Act (Act No. XLV of 2018), the NSDA represents a paradigm shift in the governance of skills development in Bangladesh, with a mandate to transform the country’s human resource capabilities to meet both domestic and international labor market demands.

Establishment and Governance Structure

The NSDA was established following the enactment of the National Skills Development Authority Act on October 1, 2018, and became operational in 2019. This marked a significant evolution from the previous National Skills Development Council, elevating the governance of skills development to the highest level of government. The NSDA is placed directly under the Prime Minister’s Office, underscoring the strategic importance the government places on skills development for the nation’s economic growth and social development.

The Authority is led by a high-level Governing Board chaired by the Honorable Prime Minister of Bangladesh, with Mrs. Nasreen Afroz serving as the Executive Chairman. This governance structure facilitates direct oversight and coordination at the highest level of government, enabling more effective implementation of skills development policies and programs across various ministries and sectors.

 Core Functions and Mandate

The NSDA has been designated as the “linchpin of the skills ecosystem of the country,” with a comprehensive mandate that encompasses policy formulation, coordination, quality assurance, and strategic direction for skills development1. Its primary functions include:

1. Formulating national skill development policy, strategy, and plan of actions
2. Establishing Key Performance Indicators for government and non-government training institutes
3. Preparing uniform training manuals and coordinating their implementation, supervision, and evaluation
4. Creating skilled human resources for both national and international labor markets
5. Publishing forecasts of national and international labor market demand
6. Establishing sector-wise skill data banks
7. Providing recognition of prior learning (RPL)
8. Monitoring and coordinating all projects related to skill development
9. Taking actions to develop standards of training, certification, and mutual recognition

These functions position the NSDA as the central authority for ensuring effective coordination, competency-based skills training delivery mechanisms, and unified standards, curriculum, and certification systems across Bangladesh’s diverse skills training landscape.

 

National Skills Development Policy and Action Plan

One of the NSDA’s most significant contributions has been the formulation of the National Skills Development Policy (NSDP) 2020, published on October 18, 2021. This policy document provides a comprehensive framework for establishing a sustainable skills development ecosystem in Bangladesh, aligning with other important national policy documents and addressing the skill requirements of the Fourth Industrial Revolution (4IR).

The policy is built upon key principles including:

1. Shared responsibilities among various actors and stakeholders in skills training design and delivery
2. Matching skills demand and supply to make the system responsive to labor market requirements
3. Equal opportunities to ensure training access across all segments of society.

Building on this policy framework, the NSDA has developed the National Action Plan 2022-2027 for Skills Development in Bangladesh, which was approved by the Governing Board headed by the Prime Minister. This action plan outlines specific activities and targets for skills development over a five-year horizon, aiming to train approximately 8.6 million people across more than 17 sectors.

The action plan categorizes training programs into six types: fresh skilling, up-skilling, re-skilling, entrepreneurship, apprenticeship, and Recognition of Prior Learning (RPL). It aligns with Bangladesh’s broader national development goals, including the Sustainable Development Goals (SDGs), the 8th Five Year Plan, the Second Perspective Plan (2021-41), and the Bangladesh Delta Plan 2100.

 

Initiatives and Achievements

Registration and Regulation of Training Institutes

As of the 2022-23 annual report, the NSDA had registered 504 training institutes, including 154 new registrations during that year. Of these, 368 institutes are authorized to run 2,569 courses, and 340 institutes are approved to conduct assessments for 1,989 courses. This regulatory function helps ensure quality standards and appropriate certification across the skills training sector.

Addressing Fourth Industrial Revolution Challenges

The NSDA has been proactive in preparing Bangladesh’s workforce for the challenges and opportunities presented by the Fourth Industrial Revolution. It has prepared more than 35 Competency Standards (CS) on ICT-related courses and is gradually incorporating 4IR concepts into its curriculum.

The Authority is implementing several measures to address 4IR challenges, including:

1. Identifying and assessing future skill requirements and developing a digitized skills database
2. Developing curricula and training courses that incorporate ICT-related skills
3. Upgrading the digital skills and knowledge of instructors
4. Building capacity of Skills Training Provider (STP) institutes to deliver training on digital and emerging technologies

 

International Labor Market Access

Recognizing the importance of overseas employment for Bangladesh’s economy, the NSDA is working to create manpower export opportunities to developed countries. It has received technical guidance from the European Union Delegation regarding qualifications and skills recognition issues between Bangladesh and the EU, aiming to establish common, simplified rules for professional recognition.

 

Challenges and Limitations

Despite its critical role and ambitious mandate, the NSDA faces several challenges that affect its effectiveness:

Human Resource Constraints

The NSDA currently operates with significant staffing gaps, with only 56 of the approved 88 positions filled. Key vacancies include five out of 14 deputy director positions and nine out of 23 assistant director positions, along with numerous support staff vacancies. This shortage affects the Authority’s capacity to implement programs and efficiently utilize allocated resources.

Coordination Challenges

As the linchpin of Bangladesh’s skills ecosystem, the NSDA must coordinate with 22 different ministries involved in skills training delivery, numerous public and private training providers, and various industry stakeholders. This complex landscape presents significant coordination challenges, particularly with limited human resources.

Perception Issues in Technical Education

The NSDA faces the challenge of addressing the perceived low social esteem of technical education, which discourages youth from choosing skills development training despite high rates of unemployment. This perception gap contributes to a paradoxical situation where industries suffer from shortages of skilled labor while a substantial number of educated youths remain unemployed.

Future Directions and Vision

The NSDA’s vision extends to transforming Bangladesh’s skills development system into a well-coordinated and effective entity contributing to the goal of making Bangladesh a developed country by 2041. Key aspects of this vision include:

Expanding TVET Enrollment

The government aims to expand Technical and Vocational Education and Training (TVET) enrollment from 17.18% in 2021 to 25% by 2025, 30% by 2030, and 41% by 2041. The NSDA plays a central role in achieving these ambitious targets through policy formulation, coordination, and quality assurance.

Addressing Fourth Industrial Revolution Requirements

As Bangladesh navigates the challenges of the Fourth Industrial Revolution, the NSDA will continue to focus on developing skills in automation, digitization, and information technology. This includes promoting training in digital skills and other emerging areas to enhance youth employment opportunities, both domestically and overseas.

Strengthening Industry Engagement

The NSDA is working to strengthen the Industry Skills Councils (ISCs) and enhance linkages between skills training providers and industries. This engagement is essential for ensuring the relevance of training programs to labor market needs and improving employment outcomes for graduates.

 

Conclusion

The National Skills Development Authority represents a significant institutional advancement in Bangladesh’s approach to skills development. As the central coordinating body for the country’s skills ecosystem, it plays a crucial role in aligning skills development initiatives with national economic goals and addressing the challenges of a rapidly evolving global labor market.

While the NSDA faces challenges related to human resources, coordination, and changing perceptions of technical education, its comprehensive mandate and high-level governance structure provide a strong foundation for transforming Bangladesh’s skills landscape. Through policy formulation, quality assurance, and strategic direction, the NSDA is working to develop a skilled workforce capable of driving Bangladesh’s economic transformation and achieving its goal of becoming a developed nation by 2041.

The success of the NSDA will be measured by its ability to bridge the gap between skills supply and demand, increase the employability of graduates, and adapt Bangladesh’s workforce to the requirements of the Fourth Industrial Revolution. As it continues to implement the National Skills Development Policy and Action Plan, the NSDA remains at the forefront of Bangladesh’s efforts to harness its demographic dividend and develop human resources as a key driver of economic growth and social development.

 

Reference

 

1. National Skills Development Policy 2020, published on October 18, 2020 by the National Skills Development Authority (NSDA)
2. National Skills Development Authority Act (Act No. XLV of 2018)
3. National Skills Development Authority Rules, 2020
4. NSDA Annual Report 2022-2023
5. National Action Plan 2022-2027 for Skills Development in Bangladesh
6. Bangladesh Bureau of Statistics (BBS) reports
7. Bangladesh Economic Review (BER) 2018
8. Labor Force Survey (LFS) 2016-17
9. Bureau of Manpower, Employment and Training (BMET) data from 2017
10. Information on Bangladesh’s 8th Five Year Plan, Sustainable Development Goals (SDGs), Second Perspective Plan (2021-41), and Bangladesh Delta Plan 2100