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Brochure - Youth Entrepreneurship and Innovation Multi-donor Trust Fund
22/05/2019 16:44
Brochure - Youth Entrepreneurship and Innovation Multi-donor Trust Fund

Categories: Employment, Youth

Brochure - Education and Skills for the Fourth Industrial Revolution
22/05/2019 16:44
Brochure - Education and Skills for the Fourth Industrial Revolution

Categories: Education, Youth

AfDB Projects changing Lives in Egypt
18/01/2018 16:36
AfDB Projects changing Lives in Egypt
Working Paper 230 - Child Labour and Schooling in South Sudan and Sudan:  Is There a Gender Preference?
29/01/2016 14:16
Working Paper 230 - Child Labour and Schooling in South Sudan and Sudan: Is There a Gender Preference?
Working Paper 204 - Skills and Youth Entrepreneurship in Africa: Analysis with Evidence from Swaziland
06/08/2014 12:38
Working Paper 204 - Skills and Youth Entrepreneurship in Africa: Analysis with Evidence from Swaziland
Gabon - 2014 - Profil Pays - Ensemble pour bâtir le présent et mieux assurer l’avenir
14/05/2014 11:26
Gabon - 2014 - Profil Pays - Ensemble pour bâtir le présent et mieux assurer l’avenir
Analysis of Gender and Youth Employment in Rwanda
07/05/2014 09:02
Analysis of Gender and Youth Employment in Rwanda

Categories: Rwanda, Gender, Employment, Youth

Working Paper 201 - Does Intra-African Trade Reduce Youth Unemployment in Africa ?
29/04/2014 14:33
Working Paper 201 - Does Intra-African Trade Reduce Youth Unemployment in Africa ?
African countries have taken several measures to promote regional integration, a major part of which is intra-regional trade. Intra-African trade is one of the important activities to achieve regional integration and accelerate sustainable and inclusive development in Africa. This explains several measures taken at both sub-regional and continental levels to promote intra-African trade. Such intra-African trade has enormous potential to create employment (especially for the burgeoning youth population of the continent), catalyze investment and foster economic growth on the continent. Unemployment among young people aged between 15 and 24 is one of the greatest development challenges facing countries globally, including those in Africa. However, very few studies have been undertaken in the particular context of African countries and to the best of our knowledge there are no studies exploring the intra-African trade-youth unemployment nexus in Africa. Thus, the key objectives of this study are: (1) To analyze the scale, trends, and composition of intra-African trade and youth (overall, female and male) unemployment; (2) To quantitatively investigate the relationship between intra-African trade, and youth (overall, female and male) unemployment; and (3) To summarize the key findings and discuss their policy implications for intra-African trade policy and diversification, regional integration, and youth employment. African countries have not made significant progress in boosting intra-African trade. In 2012, the average intra-African trade was just 12% compared with 67% for APEC, 61% for the EU, 41% for NAFTA, 25% for ASEAN, and 17% for MERCUSOR. Over the period from 1995 to 2012, the average intra-African trade was only 12% for Africa against 70% for APEC, 64% for the EU, 44% for NAFTA, 24% for ASEAN, and 18% for MERCUSOR. However, in value terms, Africa has made tremendous progress in intra-African trade, increasing from US$27.9 billion in 1995 to US$148.9 billion in 2012, representing an increase of more than fivefold. On the other hand, in 2011, about 74.8 million young globally were unemployed (an increase of more than 4 million since the start of the global financial and economic crisis in 2007), with almost 20% of them in Africa. Also, in 2011, youth unemployment in Sub-Saharan Africa (SSA) was slightly higher than the global average at 12.8% but with North Africa averaging 27.1%, the highest amongst the regions of the world. This gives an average of about 20% youth unemployment in Africa in 2011. In addition, young people in Africa are about three times more likely as adults to be unemployed. Youth unemployment is also predominantly an issue for women in Africa, especially in North Africa. While the unemployment rate for young women in North Africa was 34.3% in 2010 (compared to the global average of 13.1%), the rate for young men stood at 18.5% (compared to the global average of 12.6%), all two are the highest for any region. The evidential reports on the unemployment-reducing effect of trade integration, while few, are however, mixed. This study empirically estimates the effect of Africa’s intra-regional trade on the burgeoning youth unemployment on the continent. We investigate both the aggregate and gender-specific impacts. For robustness, our estimations are done with pooled OLS with country fixed effects and IV-2SLS with country fixed effects. The empirical estimates, using available cross-sectional time series data over the period, 1980 and 2010, suggest that higher levels of intra-African trade reduce both the aggregate, female and male youth unemployment in Africa. In addition, our results show that domestic investment rate, institutionalized democracy, secondary education, inflation, economic growth, and higher urbanization tend to reduce youth unemployment, both on the aggregate and gender-differentiated and therefore good for youth unemployment reduction in the continent. On the other hand, higher real per capita GDP and to a lesser extent credit to the private sector have significant positive effect on youth unemployment in Africa. Government consumption expenditure and foreign direct investment have an insignificant effect on both the aggregate level and the gendered level of youth unemployment in Africa. Efforts to expand intra-African trade for unemployment reduction should include eliminating tariffs and non-tariff barriers, enhancing mutually advantageous commercial relations through trade liberalization schemes, and adopting comprehensive and harmonized regional trade policies. In addition, a need exists to intensify cooperation in regional infrastructure development projects. not only to increase access to and reduce the cost of provision of these facilities but also to help lower transactions costs, boost trade, and increase the continent’s attraction to investors. There is a need to promote and deliberately support the development of the domestic capital markets through a sub-regional approach and put in place supportive infrastructure for the markets. African governments should adopt a sub-regional approach to the support and development of capital markets, to strengthen their catalytic role in mobilizing savings for increased domestic investment. Also, strengthening of regional integration groups will be useful in reducing the incidence of domestic policy reversals and improving the credibility of economic policies in Africa. Indeed, the full implementation of the plan and declarations to boost intra-African trade made during the January 2012 African Union Summit of Heads of State and Government will be very critical. A key challenge for African countries is to mobilize increased resources for high domestic investment, and high and sustainable economic growth. African countries need to increase efforts for the mobilization of higher domestic savings, including through the implementation of tax reforms, simplifying and improving tax administration, cost sharing in the provision of public goods and services and enhancing public expenditure productivity. Effective policies that invest in human capital of the citizens and workforce are needed. Skill acquisition through technical and vocational education and training (TVET) should be prioritized. The promotion of diversification away from natural resources dependence and investing in new and more sophisticated production and exports are imperative. Investments in education, social services and infrastructure as gender-equity policies will promote gender-equitable employment.Read more
Economic Brief - Accelerating the AfDB’s Response to the Youth Unemployment Crisis in Africa
23/09/2013 15:59
Economic Brief - Accelerating the AfDB’s Response to the Youth Unemployment Crisis in Africa
Working Paper 175 - Youth Employment in Africa: New Evidence and Policies from Swaziland
18/06/2013 09:03
Working Paper 175 - Youth Employment in Africa: New Evidence and Policies from Swaziland
The main objective of this paper is to document the labor market disadvantages faced by Swazi youth, to analyze changes in these disadvantages over time and to discuss options for addressing them. Swaziland indeed faces a major youth employment challenge. Recent labor force surveys in Swaziland revealed that the country has one of the highest unemployment rates among Africa’s middle income countries, which stood at 26.3 and 26.8 percent of the labor force, in 2007 and 2010 respectively. The surveys also revealed that marked differences across subgroups have emerged, with youth, women, and less educated workers being disproportionally impacted. The labor market situation has worsened in 2011 and 2012 because of the delayed impact of the global financial crisis, which was transmitted to the economy mostly through the collapse of revenues from the Southern Africa Custom Union (SACU). The paper contributes to the literature on labor markets in Southern Africa by providing the first systematic evidence on the youth labor market in Swaziland, a country with a particularly high youth unemployment rate. Besides Southern Africa, the paper contributes to the ongoing more general analysis and policy debates on youth employment in Africa. First, reliable labor market data from African countries are still relatively scarce, and until recently, none was available for Swaziland. Second, with the global financial crisis turning into a job crisis and impacting youth disproportionally, youth employment became a key global policy issue. In Africa, where youth employment is a long-standing challenge, policymakers have put even higher priority on creating jobs for their youth and on entrepreneurship. The paper adds to these debates and provides insights from a small land-locked country with one of the highest youth unemployment rate in Africa and globally. The paper sheds light on the trends, scale, and forms of youth labor market disadvantages, by utilizing the first two (2007 and 2010) Swaziland Labor Force Surveys, which provide a sample of over 3,000 households and more than 13,000 individuals. Using statistical analysis, the paper first outlines the main features of the Swazi labor market based on the country’s Labor Force Surveys 2007 and 2010. It then discusses both supply-side (e.g., demographic, social) and demand-side (e.g., private sector growth) drivers of youth unemployment, and illustrates the first-round impact of the global financial crisis on Swaziland's labor market. The paper also utilizes a multinomial logit model to examine some of the key socio-economic factors (e.g., age, gender, education) that contribute to the high youth unemployment. The outcome categorical variable indicates whether the individual has a wage employment in the public sector, the formal private sector, the informal private sector, or is self-employed, inactive or unemployed. The vector of controls includes demographic characteristics (such as gender and age), household-related characteristics (such as the marital status and the individual’s responsibility in the household), proxies of mobility (such as the geographical location - urban versus rural- and the length of stay in the area), and education variables. The model focus on young adults (ages 20 – 29) since tertiary education and self-employment are relatively rare among teenagers (ages 15 – 19). The findings from the statistical analysis indicate that the youth labor market in Swaziland is characterized by a high overall unemployment with long duration, a declining employment and labor force participation rates. It also indicates that unemployment is especially widespread among women, less educated, and youth. The analysis also revealed that the labor market disadvantages faced by Swazi youth relate to the lack of jobs, discouragement or the lower quality jobs. The findings from the multivariate analysis indicate how socio-economic factors (e.g., education, age, gender, location and mobility) drive youth labor outcomes. The results show in particular that higher education, living in urban areas and being mobile increase employment chances of young people. Among young adults, women and very young people have lower probability of employment in the private sector relative to being unemployed, reiterating the need to pay special attention to these groups. Some of the key policy messages for fostering dynamic youth entrepreneurship – in Swaziland and other middle income countries in Southern Africa – that emerge from the paper emphasize that an enabling business environment is needed along with the government’s pro-active support for entrepreneurial training and start-up capital. Regarding the latter, the Swaziland’s experience underscores the importance of careful selection of projects for funding, and of monitoring the use of funds after disbursement. International good practices suggest that government interventions should target the most viable projects, extend greater financial support to a fewer high-potential entrepreneurs rather than spread resources thinly, and provide complementary packages of services instead of a single measure.Read more
Working Paper 171 - Youth Unemployment and Political Instability in Selected Developing Countries
14/06/2013 11:13
Working Paper 171 - Youth Unemployment and Political Instability in Selected Developing Countries
Across the globe, the recent financial and economic crisis has led to soaring youth unemployment. In Africa for instance, youth unemployment is exacerbated by the additional challenges of a youth population which is considerably higher than other regions, narrow national labour markets and persistently high levels of poverty. More recently, the North Africa region, which has the world’s highest youth unemployment rates and where one in four young people is reported as jobless, experienced violent social uprisings in which young people played a critical role. Numerous studies suggested that large rate of youth unemployment destabilizes countries  thus making them more susceptible to armed conflict (Urdal, 2006, 2012). This is broadly consistent with an increasing body of literature on the causes of political instability and conflicts, such as Collier and Hoeffler (2002) or Miguel et al (2004) to name a few. Taking advantage of this literature, this paper investigates the effect of youth unemployment on the political instability in selected developing countries. Using data from 1980 to 2010 from 24 developing countries in five regions (Africa, Latin America, the Middle East and Southeast Asia), this paper shows that political instability occurs particularly in countries where youth unemployment, as well as social inequalities and corruption are high. The results suggest that youth unemployment rate is positively and significantly associated with the measure of political instability. Specifically, doubling the unemployment rate induces an increase of the risk of political instability with a magnitude ranging between 1.06% and 1.4% depending ono the specification. These results add to a broad literature that stresses the importance of economic conditions as the most critical factors guaranteeing political stability in developing countries. This paper has a clear policy implication. In order to avoid instability and violence, focus should be on monitoring economic opportunities for young people, and particularly on providing employment or educational opportunities for youth in periods of economic decline. Creating viable jobs for young people is a precondition for sustainable development and peace in all countries; and particularly in countries which have already experienced violent conflict. However, we do recognize that political instability is a more complex phenomenon which may owe also to geo-political factors which have not been taken into account in this paper.Read more
Working Paper 158 - Tackling Graduate Unemployment through Employment Subsidies an Assessment of the SIVP Programme in Tunisia
29/10/2012 11:28
Working Paper 158 - Tackling Graduate Unemployment through Employment Subsidies an Assessment of the SIVP Programme in Tunisia
It is widely agreed that the level of unemployment among university graduates in Tunisia contributed to the rise of social unrest that culminated in what is popularly dubbed as ‘the Arab Spring’. While the number of university graduates in Tunisia increased fivefold, so did the graduate unemployment rate. In 2009/10, one year prior to the Tunisian revolution, nearly one is four university graduates were unemployed.  High levels of unemployment are not unique to Tunisia. Countries in the MENA region including Egypt, Morocco and Algeria faced unemployment rates in excess of 18 percent, 19 percent and 21 percent, respectively. Although the causes of graduate unemployment in Tunisia are likely to be more frictional and solving the problem will require long-term interventions and structural change to the economy, active labor market policies were thought to alleviate some of the pressure in the short to medium term. Until recently, the main policy intervention aimed at promoting paid employment for graduates was the Stage d’ Initiation à la Vie Professionelle (SIVP). The program provided a wage subsidy ranging between TND equivalents of (€50 - €125) depending on qualifications. Firms receive exemption from taxes and national insurance contributions and can top up the graduate’s salary with tax free supplements. Eligibility for support requires registration with the national employment agency (ANETI) and actively seeking employment. Similarly, eligible firms should be part of the social security system and have intern-to permanent staff ratio not exceeding 40 percent. This paper assesses the impact of SIVP by addressing the non-random nature of selection into the program. The paper uses a variety of matching methods to estimate the welfare effect of the program. The dataset considered is a graduate tracer survey of over 4000 graduates who qualified for the program in 2004 and were interviewed in both 2005 and 2007. In spite of the non-random nature of selection into the program, graduate who benefited from the program are expected to have better labor market outcome that those that did not. The data show that women were slightly less likely than men to have benefited from SIVP in the first three and a half years after graduation. The distribution of SIVP by governorate of residence in 2004 shows a bias towards large urban areas (e.g. Tunis, Ariana, Nabeul and Bizerte). Those with ‘good’ or ‘satisfactory’ degree are more likely to benefit from SIVP as opposed to those with just a ‘pass’ or a ‘very good’ degree. At the level of discipline, those with Social Science, Law and Language degrees are considerably less likely to benefit from SIVP than those with Finance and Management degrees.   The study found that SIVP has a positive outcome on the likelihood of having a job (especially for those at high risk bracket of unemployment), but there is less strong evidence that the program has any effect on the likelihood of having a contract, or on salaries. SIVP beneficiaries are less likely to find employment with a large firm, and are more likely to enter the private sector. The multivariable analysis slightly lowers the estimate of the effect of the program on joblessness and unemployment but they remain statistically significant and stable across all specifications. SIVP participation results in an estimated reduction in the likelihood of joblessness of around 7 percentage points. However, although the program appears to increase the likelihood of obtaining a job, it does not appear to have any impact on the quality of that job.   One out of four individuals who spent zero or one month of unemployment in the first six months of graduation benefited more from the program than other individuals in their cohort. Similarly, one out of four individuals who spent five or six months of unemployment after the first six months of their graduation benefited more from the program than other individuals in the same cohort. The study finds that the program is poorly targeted and is therefore poorly targeted. Although the program should probably be kept, the targeting of the funds should be improved in order to minimize deadweight loss. The subsidy should be restricted to job-seekers who have been registered with ANETI and who, despite demonstrating job-seeking effort, have been unable to find work for a considerable period of time. The program should be better targeted geographically by removing the requirement that the company should be part of the social security system so that smaller, informal enterprises also become eligible to recruit SIVP interns.Read more
Working Paper 155 - Youth Jobs and Structural Change: Confronting Africa’s “Employment Problem”
08/10/2012 14:22
Working Paper 155 - Youth Jobs and Structural Change: Confronting Africa’s “Employment Problem”
Africa has enjoyed over a decade of sustainable growth where regional growth has exceeded the global average and per-capita income for the region is steadily increasing. During the past decade sub-Saharan Africa was home to six of the ten fastest growing economies in the world. However, there are signs that this growth turn-around has not resulted in robust growth of ‘good’ jobs particularly for the young whose share has been rising over time. The share of the youth in Africa is now higher than any other part of the world. This demographic transformation offers the possibility of a growth dividend, as in the case of Asia, if a rapidly growing work force can be combined with capital and technology. However, it can also present a major challenge. The continent is not creating the number of jobs required to absorb 10-12 million young people entering the labour market each year and as recent events in North Africa have shown, lack of employment opportunities in the face of rapidly growing young labour force can undermine social cohesion and political stability. According to a recent projection, Africa will have the largest workforce in the world by 2040, surpassing both China and India. The paper argues that sub-Saharan Africa does not face a severe employment problem but that of the absence of decent job opportunities. It argues thatAfrica’s employment problem is symptomatic of its lack of structural change –the shift in resources from lower to higher productivity uses. In spite of rapid growth, Africa has undergone very little structural transformation. While unemployment rates in most African countries are low, they also tend to have very large informal sectors, with a bulke of the employed langushing in vulnerable employment and working poverty. There is quite a bit of evidence that since 1990 structural change has moved in the wrong direction in Africa where labor has moved from higher to lower productivity employment.&nbsp; &nbsp; Youth unemployment rates in Africa compare favourably compared to regional and world averages. Worldwide there is a fairly regular relationship between the overall rate of unemployment and the rate of youth unemployment. However, at 1.9 the ratio of sub-Saharan Africa’s total unemployment to youth unemployment rate is below that which would be predicted from the region’s overall rate of unemployment. The global ratio of total unemployment to youth unemployment is higher (at 2.7). However, North Africa’s youth unemployment rate substantially exceeds its predicated value. The African Development Bank’s 2012 household and labour force survey with its coverage of 16 countries provides the most comprehensive picture to date of the performance of African labour markets. The survey finds considerable heterogeneity in Africa’s labour markets. These results confirm that neither overall nor youth unemployment rates in sub-Saharan Africa stand out globally, while variations across countries is significant.&nbsp; African countries with well-structured labour markets and a large formal sector tend to have higher unemployment rates. This is especially true in southern Africa where unemployment exceeds 15 percent in Botswana, Namibia, and South Africa. Unemployment is also high by international standards in North Africa – especially in Algeria and Tunisia. Unemployment is relatively low in lower income countries while the informal sector is large (Ethiopia, Ghana, Tanzania and Uganda). A third group comprises of countries with large informal sectors and unemployment rates in the range of five to 15 percent.&nbsp; &nbsp; In most African countries job search periods are longer for those with higher education levels and therefore tend to constitute a larger cohort of the unemployed. Except for Niger and South Africa, youth unemployment rates tend to be lowest among those with either no or basic education. In 6 of 14 countries for which data were available, the unemployment rate for those with tertiary education was the higher of all. In many African countries, self and informal employment accounts for a majority of young workers. With some country specific exceptions, less than 20 percent of Africa’s young workers find wage employment and over 70 percent of workers in Congo, DRC, Ethiopia, Ghana, Malawi, Mali, Rwanda, Senegal, and Uganda are either self-employed or find themselves in family work. The paper argues that the key to reducing unemployment and informality in all levels including the young is the rapid growth in good jobs as a result of substantial structural change. Industrialization can boost formal job creation through labour intensive growth. Nevertheless, critical changes in the labour market and in the education system will also be needed to increase the employment intensity of growth in the formal economy. In the short run a number of interventions can be undertaken to improve the employment prospects of new labour force entrants. <ul><li>Addressing open unemployment and helping the young find better jobs: Governments can target young workers in employment intensive activities, such as tourism and construction with programs that offer cash for work. Public works programs provide opportunities for young workers with low skills to acquire work experience and subsequently find more permanent work.&nbsp; </li><li>Building relevant skills: Increased emphasis on post-primary education through education budgets, improving the quality of teachers and instruction in public schools are critical. In the long-term it is essential to restructure education systems to teach the skills needed to succeed in a global marketplace. &nbsp;</li><li>Reform of labour legislatives and institutions: pertinent changes in labor regulations that set minimum wages determine social insurance contributions and protect job security need to be changed. In some countries high level of wages relative to productivity are deterrents to growth in outward-oriented manufacturing. In many countries procedures for laying-off workers for economic and technological reasons are complex and seldom used. Separating social insurance from formal job status and social contributions from formal sector wages should be an important long-term goal. </li></ul>Read more
Jobs, Justice and the Arab Spring - Inclusive Growth in North Africa
19/06/2012 15:00
Jobs, Justice and the Arab Spring - Inclusive Growth in North Africa
Economic Brief - Chinese Investments and Employment Creation in Algeria and Egypt
05/04/2012 15:57
Economic Brief - Chinese Investments and Employment Creation in Algeria and Egypt
Economic Brief - Enhancing Capacity for Youth Employment in Africa
29/12/2011 08:01
Economic Brief - Enhancing Capacity for Youth Employment in Africa
Economic Brief - Tackling Youth Unemployment in the Maghreb
28/11/2011 09:03
Economic Brief - Tackling Youth Unemployment in the Maghreb
Working Paper 123 - Labor Market Dynamics in Tunisia: The Issue of Youth Unemployment
28/02/2011 14:13
Working Paper 123 - Labor Market Dynamics in Tunisia: The Issue of Youth Unemployment
Despite Tunisia’s positive macroeconomic performance, the country continues to experience a high rate of unemployment, especially among the youth. Through an analysis of the Tunisian youth labour market, the paper argues that sustained economic growth and the development of the private sector can decrease unemployment. The paper focuses on sectors that are most likely to contribute to the reduction of youth unemployment. The existence of a gender gap in the youth labour market is also investigated. The study used Labour Force Surveys carried out by the Tunisian National Institute of Statistics (INS) in 2005, 2006, and 2007. The study was the first of its kind to use the 2005-2006 panel component of these surveys which was not available in the past. The sample group of university and non-university graduates was between the ages of 23 and 29 inclusive. Based on the data collected, various approaches were used for this study. Trends in youth unemployment were based on the projections of size of the active youth population and GDP growth and author’s estimates of GDP growth’s elasticity of youth employment. The labour market profile was based on descriptive statistics, with an analysis of mobility across sectors and between various phases of employment and a multivariate analysis of determinants of the labor force. The study of mobility across states or sectors was based on observed transition matrices. A multinomial logit model was also used to complement the descriptive analysis, due to the fact that this model’s coefficients isolate the effects of each characteristic, while controlling for others. The results of the analysis from the 2005-06 panel sample show that, even in those sectors that largely and increasingly employ youth, employment is often temporary. This is generally true for all sectors, where the retention rates vary between 50 percent and 60 percent. This is not true of the public sector which has a low turnover rate. The results also show that among university graduates, unemployment was 40 percent as opposed to 24 percent for non-graduates. Formal employment is also positively associated with education, and self-employment seems to be practiced by those with secondary education or less. Holding a university degree increases the probability of working in the public sector. Average duration of unemployment for those with a university degree is 28 months, as most are willing to stay unemployed and wait for a job in the public sector. Inactivity is mostly temporary among graduates. Finally, once they find a job, graduates tend to hold on to it for a longer time. Among women the results show that gender imbalances and wage disparities exist. The findings further indicate that university education erases most of the gender differences in the patterns of labor mobility. Results from the multinomial logit regressions show that among non-graduates, females are more likely to be either inactive or regular wage earners, and less likely to be casual/seasonal wage earners or self-employed (rather than unemployed) relative to equally educated men. Also a university degree increases the likelihood of unemployment and reduces the gap between men and women in the labour market. Tunis is seen as a region with a high labor participation and easier access to employment than other regions in Tunisia. These findings seem to be in line with the results from the descriptive analysis. Youth unemployment remains a critical problem in Tunisia. However if economic reforms aimed at sustaining the economic growth are implemented, unemployment is set to reduce in the long run. In order to address the youth issues in the labour market in the short-term and medium-term, a more comprehensive policy framework needs to be in place that supports private sector development and the up-skilling of youth. Furthermore gender disparities need to be addressed through inclusive and gender-sensitive employment policies. Finally, the problem of addressing the regional disparities that exist in the country in terms of employment can be addressed by decentralizing the regional offices to more remote locations such as the South of Tunisia.Read more
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