Well, majority of poor countries has excessive labor supply. They can adopt labor intensive techniques that can save their capital and employ more and more people. Small scale and cottage industry need to be encouraged. Many women prove to be an excellent worker but they cannot go beyond their homes for work. They are bound to their domestic chores. Inside of home or in vicinity of their homes small scale industry can provide them easy access to work. It can supplement income of poor families, on the other side industry can benefit from cheap labor.
Donors’ assistance ought not to be like a guerrilla action – quick start and quick acquittal. Donors’ assistance should be focused upon building skills in women and provision of tools and small machinery so that they can apply and benefit from their newly learned skills. Many times community women join skills building programs but in the end they sit idle at home. Their learning goes in vain. They don’t have money to buy tools and start production at home. Once a woman is equipped with skills and provided with a meaningful financial assistance, her daughters and coming generations will automatically come into the labor force instead of sitting idle at home. Their new small scale production unit will bring a learning opportunity for their own and neighboring kids. This way imparted skills have impetus to multiply non-formally.
Skill building program that can benefit export industry can also be greatly beneficial in poverty reduction and job creation. Export oriented industry needs to invest in skill building. Government can bound export oriented industry to allocate a share of their income for skills enhancement program. Export oriented industry can be linked with Technical & Vocational Training Institutes. Many skills programs that are not focused upon export oriented industry prove to be black holes for wastage of financial resources. Sometimes donors seek innovative ideas from the implementing organizations. Many times they failed to judge an effective innovation. Everything new cannot be innovative. While granting decision many times every new idea is taken for an innovation. Certainly, we cannot waste charity money in experimenting and testing every new idea.