CHAPTER ONE

Introduction

1.1 Background of study

Within this background, I will try to summarize a brief justification in some articles and publications that support the argument, saying local organizations play a crucial role in the empowerment of youth like an employment creation by training, establishing a small scale business for youth and all other aspects in youth employment. According to ILO in 2009, about 81million young people were unemployed, the most ever. The youth unemployment rate rose from11. 9 percent to 13.0 percent between 2007 and 2009, an increase of 7.8 million.

Across the globe, economic fluctuations and economic crisis have left an impact on the young people like the challenges facing when seeking jobs. Between 2008 and 2009, the youth unemployment rate has seen the largest annual increase on record, reversing the pre-crisis trend of declining youth unemployment rates since 2002 and rising to 13 per cent in 2009. Unemployment rates, however, reflect only the tip of the iceberg. Young people are used to work longer hours under informal, intermittent and insecure work arrangements characterized by low productivity and earnings and reduced social protection. Young workers are more exposed to poverty than other age groups. In 2008, an estimated 152 million young workers were living with their families on less than US$1.25 a day, amounting to more than 28 per cent of all young workers in the world (smith Andrew, 2013). A publication written by Shantayanan Devarajan Chief Economist of the World Banks Africa Region B.A. in mathematics from Princeton University and his Ph.D. in economics from the University of California, Berkeley says that In low-income African countries, most people cannot afford to be unemployed. Lacking any significant safety net, 70 to 80 percent of the labor force seeks a living by working in low-productivity, informal farms or household enterprises. Private-sector wage and salary jobs have been growing at a fairly rapid clip at 7.3 percent a year between 1992 and 2005 in Uganda The challenge of youth employment in Africa, therefore, is not just to create more wage and salary jobs important as this may be but to increase the productivity, and hence earnings, of the majority of young people who will be employed in informal farms and household enterprises. How can this be done? In general, workers productivity can be increased by (i) demand-side measures, such as better infrastructure and business climate, that lower the costs of production and thus increase the demand for labor; and (ii) supply-side measures that improve the skills of workers.Locally, unemployment is noted to be at an alarming rate. With regards to SONYO (2010), The situation of the youth in Somaliland is well described in a study carried out by the Somaliland National Youth Organization (SONYO), in partnership with Oxfam-Novib, in December 2010. The term youth in the study was defined to mean young people between the ages of 15 and 30. Altogether, 800 individuals were interviewed, distributed across the regions. The median age of the participants was 21. 51% of the survey sample came from urban areas, while rural communities accounted for 49%. The gender breakdown of the sample was 61% male, 39% female. This study covered both qualitative and quantitative variables about the challenges facing youth with regard to employment, education, health, HIV/AIDs, young girls/woman's situation, sports and recreation, political participation and information communication and technology. The Key findings of the study are summarized here below. Source Somaliland national development plans MNP&D

1.2 Problem statementThis research thesis is intended to explore the role of local organizations on youth employment creation, so as deeply emphases there are some people who support the argument saying that local organizations play a vital role in the youth development specially youth employment creation and other people who oppose this argument and saying local organizations like SONYO do only their self interest. First we will see how globally this issue exists then continentally and at last we will see locally. Globally, the level ofunemploymentamong young people, typically defined as those aged 1825. A related concept isyouth unemployment which is the level of unemployment among university graduates. In United Kingdom Statistics for June 2010 shows that there are 926,000 young people under the age of 25 who are unemployed which equates to an unemployment rate of 19.6% among young people(Article:Unemployment in the United Kingdom, Berlet, 2012)The Job Creation and Enterprise Development Program in UK are dedicated to unlocking the enormous potential of enterprises to create decent, long-lasting jobs. Decent work can only exist in competitive, productive, and economically viable firms. Promoting entrepreneurship and enterprise creation is regarded as one way of increasing youth employment, which in turn contributes towards alleviating the vicious circle of poverty and social exclusion. (ILO, 2013).According to the World Bank and the IMF, MENA public sectors employ between 14% and 40% of all workers in the region. Historically, the public sector served as a political solution to the economic problem of unemployment.Reflecting on the legacy of the public sector being the engine of job creation, youth participation in the private sector is very low in the Middle East in the UAE alone it is less than 1% reflecting the situation worldwide driven by the economic crisis that is isolating young people

from the work place. Emirates Foundation's recent Philanthropy Summit united experts from across the region and the world to look at specific ways in which the private sector can help.In the light of policy paper published by SONYO (2013), a policy paper on the Implementation of the National Youth Policy 20122016 shows In Somaliland the issue of employment, participants were asked if they had any type of employment, paid or unpaid. 75% indicated that they had none. This was in a way to be expected, because youth between the ages of 1522 could still are in school or university. In the Somali culture, young people who go to school are not normally expected to work. Only 25% of the youth stated that they had some employment. 43.1% of the employed group were 251 engaged in business, 40.6% were employed in the private sector, whereas 14.4% were employed in the public sector. Of those employed, 77% were confident that they had job security. As the business sector is the biggest employer of young people and is not yet well formalized and regulated, the youth who worked for this sector were not mostly satisfied with the remunerations they received for the work they did. 69.1% of the unemployed youth had been unemployed for more than 3 years, despite the fact that 53.2% of them had skills for different trades.Be that as it, with reference Ahmed (2013), an indigenous person criticizes the role of LNGOs in halting unemployment. In particular, blames are put on SONYO which bears the name of the Somaliland youth. This person started his article that SONYO is an entity organized in a way they do business, and that do not meet standards established under the umbrella of Youth, their aim is only seeking financial basis as long as the leader has, which until now has never been asked young idea how things are going. Therefore, this thesis aims to reveal the role of LNGOs in the nationwide struggle to reduce youth unemployment.1.3 Objectives of the study

1.4.1 The general objective: to assess the role of local nongovernmental organizations on youth employment in Hargeisa Somaliland.

1.4.2 Specific objectives:1. To examine the roles of SONYO with regards to youth employment.2. To explore the ways through which SONYO creates employment opportunities for the youth.3. To analyze the fairness of employment opportunities created by SONYO 4. To forward workable recommendations, responding to the findings of the research.

1.5. Research questions1. What are the roles of SONYO with regard to youth employment?2. How SONYO creates an employment opportunity for the youth members? 3. Does SONYO make fair youth employment opportunity?

1.6Scope of the study1.6.1 Time scopeThe study covered the period between Decembers January, 2014. 1.6.2Geographical scopeThe research was conducted at Somaliland national youth organization (SONYO) main branch in Hargeisa capital city of Somaliland.

1.7 Significance of the studyThis study will be useful in different groups like, local non-governmental organisations, government institutions as MOYS, MONPD, policy makers and management of SONYO, academicians and even in current and future researches. The research will also help the management of SONYO to discover the role of local none governmental organizations in the youth employment generation. This will help them come up with better management techniques which will result into improved job creation in the country.The research will also benefit the future researchers who will carry out research about the same topic of the role of local none governmental organizations in the youth employment and will learn more about local organizations, factors contribute employment, the role of local none governmental organizations in the youth employment. This study as well advises government organizations, private companies and other people with authority to come up with effective realistic policies of youth employment.1.8. Operational Definition of key terms: Youth: is best understood as a period of transition from the dependence of childhood to adulthoods independence.Employment: Employment is an agreement between anemployerand an employeethat the employee will provide certain services on the job, and in the employer's designatedworkplace, to facilitate the accomplishment of the employer organizations goals andmission, in return for compensation.NGO: A non-governmental organization (NGO) is a citizen-based association that operates independently of government, usually to deliver resources or serve some social or political purpose.SONYO: The Somaliland National Youth Organization (SONYO Umbrella) is dedicated to mobilizing and empowering young people in Somaliland. It is made up of young people, local nongovernmental organizations (NGOs), associations, community organizations, student committees in universities, educational institutes, colleges and secondary schools.Page 6 of 6