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Competition between universities should be between graduates “at the exit”

Speech of Tsvetan Simeonov at the conference “The labour market as a factor for competitiveness of Bulgarian economy” organized by the Economic Policy Institute and Hanns Seidel Foundation


 

Measures to improve competitiveness of the labour market include the ability to use the flexibility of this market. Mobility still isn’t inherent to Bulgarian labour market, but gradually with the decline of property prices it is becoming an inherent feature of the still low wages. Perhaps these two tendencies will cause a meeting in space, especially for the best professionals who have many competencies. BCCI as the largest employers’ organizations of small and medium-sized business relies on a mechanism (methodology) for determining of minimum working wage and minimum insurable incomes by leveling the insurable obligations of civil servants with those of all other workers and employees. In practice, balanced labour relations between employer and employee must be achieved by leveling the insurance obligations (50:50). Administrative interference in labour relations regarding the minimum wage and minimum insurable thresholds is a negative factor for competitiveness of the labour market.


According to us, it is necessary to move towards establishing means and mechanisms which create competitiveness between universities on the basis of the quality of knowledge of graduates “at the exit”. The ones that quickly find jobs must be evaluated, as opposed to competition between students “at the entrance” like in the acting law. In this sense, the question how much is spent on education is important. BCCI reckons that education must be divided by the payment of additional funding for high quality, because the sums have already been paid once. Often the bill is paid from the budget of tax-payers, while the business cannot affect creating higher competitiveness.


We all know that highly-qualified workers and employees manufacture products with high added value. Let’s remind that highly-qualified workers don’t get fired, they don’t go to the labour market, on the contrary employers bid for them, even steal them from each other.


The Chamber relies on encouraging competitiveness through entrepreneurship programmes. In the past several days we have seen this idea already laid down in a draft bill, but deficiencies in these skills have long before been recognized by BCCI. The chance is to use the experience of the Trade and Banking High School and the National High School in Finance and Business, two almost one-hundred year old offsprings of the Sofia Chamber of Commerce and Industry, whose traditions BCCI preserves and respects, with which the Chamber has a long-standing cooperation.
By means of role games and solving real practical cases, young people will understand how important it is to learn to think about the market on time. It is not by chance that they win competitions in Switzerland and the USA and in many other countries worldwide. 

15.11.2011

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