THE VOCATIONAL TRAINING SYSTEM AND THE SMALL-SIZED BUSINESSES

Abstract

In the early seventies, Algeria adopted a development model based on central planning and large state-owned enterprises and promoted heavy industry. This strategy, that squeezed private sector and impeded its development, proved to be inefficient. Indeed, the state-led growth model collapsed in the mid-eighties following the 1986 sharp drop in the oil price. Since then, the economy entered into a deep crisis causing unemployment to soar. In the face of this situation, the authorities had no choice but to introduce reforms to free economic activity and promote private investment. Special attention has been given to the sector of small and medium-sized businesses and crafts. Yet, these sectors continue to suffer from several problems that hamper their development. The focus in this paper will be on the lack of skilled workforce. Indeed, field surveys conducted in Bejai'a revealed that the vocational training system fall short in supplying the crafts sector with the qualified workers, especially in the traditional craft.