Session 1.2 Global Knowledge: What can we learn from top performers?

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Session 1.2 Global Knowledge: What can we learn from top performers? SABER-Workforce Development Team Education Department Human Development Network The World Bank April 15-16, 2013 Jakarta, Indonesia EDUCATION STAFF DEVELOPMENT PROGRAM

Objective Participants will: Gain insights, based on the pilot application of the SABER-WfD tool, into the WfD strategies of selected fast-growing economies EDUCATION STAFF DEVELOPMENT PROGRAM 2

Outline 1. The SABER-WfD pilot countries 2. Overview of the results 3. Highlights from top performers 4. Reflections on building strong WfD systems 3

SABER-WfD Pilot Countries 1970 1980 1990 2000 2010 Chile (4,878) (6,334) Ireland (10,095) (13,993) (25,629) Korea, Rep. (1,994) (6,895) (16,372) Singapore (4,635) (15,748) (32,536) Uganda (377) Note: figures in parentheses refer to per capita GDP in constant 2000 US$ 4

Composition of exports reflects economic complexity Korea s exports, 1995 Korea s exports, 2010 Global ranking of the complexity of Korea s exports: 12 th in 2010, up from 23 rd place in 1970 5

Global Rankings of the Economic Complexity of the Pilot Countries, 1970-2010 1970 1980 1990 2000 2008 Trend Chile 38 44 54 49 79 Ireland 17 15 13 10 18 Korea, Rep. 23 18 24 22 12 Singapore 45 33 18 16 7 Uganda 94 82 94 122 87 6

Outline 1. The SABER-WfD pilot countries 2. Overview of the results 3. Highlights from top performers 4. Reflections on building strong WfD systems 7

Overview of SABER-WfD Results for Chile Chile: 2000, 2010 Strategy: growing consensus on lifelong learning; institutionalization of WfD stakeholder participation Oversight: new accreditation system at post-secondary level; new labor skills certification system; expanded use of financial incentives to foster WfD goals Delivery: improved access to information on labor market outcomes by prospective students and trainees 8

Overview of SABER-WfD Results for Ireland Ireland: 1980, 1990, 2000 Strategy: integration of WfD within national industrial and enterprise policies Oversight: new institutional framework for qualifications, with increased social partner influence Delivery: more diverse mix of non-state providers; proactive, bottom up industry role, improving evaluation systems 1980 1990 2000 9

Overview of SABER-WfD Results for South Korea Korea: 1970, 1990, 2010 Strategy: tight alignment of WfD policies and economic development priorities; strong apex-level coordination Oversight: levy system to foster in-firm training; increasing scope and quality of competency-based testing; improved articulation of learning pathways Delivery: deepening of linkages among training providers, industry and research; increasing formality, regularity and scope of assessment of performance 10

Overview of SABER-WfD Results for Singapore Singapore: 1970, 1990, 2010 Strategy: clear advocacy for WfD and integration in national policy; formalization of systems and stakeholder involvement, ensuring demand-driven approach Oversight: expanded opportunities for lifelong learning; significant and continued improvements in accreditation and standards Delivery: formalization of industry role; structures in place to monitor skills demand and supply, and outcomes 11

Patterns in the SABER-WfD Scores 4.0 Strategic Framework 4.0 System Oversight 3.0 Singapore Korea 3.0 Ireland Chile 2.0 2.0 1.0 1960 1970 1980 1990 2000 2010 2020 1.0 1960 1970 1980 1990 2000 2010 2020 4.0 3.0 Service Delivery All 4 countries: scores improved on all 3 fronts Chile: making concerted efforts to improve. Ireland: very strong push on strategy; attention to oversight; strengthening of good delivery system. 2.0 1.0 1960 1970 1980 1990 2000 2010 2020 Korea and Singapore: early and sustained focus on diversifying and growing the economy; oversight and service delivery improved with a lag. 12

Outline 1. The SABER-WfD pilot countries 2. Overview of the results 3. Highlights from top performers 4. Reflections on building strong WfD systems 13

Highlights from Chile Approach to WfD emphasizes Limited role for government favoring public goods aspects Use of financing instruments to influence training investments Strengthening of the functioning of training markets Collaborative, consensus-seeking decision-making Successful public-private collaboration on Chile Valora Strong culture of monitoring and evaluation Legislation has focused on promoting quality WfD system is decentralized and fragmented; quality remains an issue 14

Funding Reforms Expand Pre-Employment TVET Tertiary Education Universities TVET institutions, all private Public funding for TVET Pre 2000: practically none Post 2000: scholarships + loans 2000 40 30 20 10 0 TVET share of tertiary-level students (%) 1999 2010 2006 Nuevo Milenio Scholarship Scheme (only for TVET courses) 94,000+ beneficiaries in 2012, up from 13,000+ in 2006 State Guaranteed Loan scheme (for any course) 46% of beneficiaries during 2006-2011 are in TVET institutions 15

Cohesive approach through national consensus Successful 1987-90 Programme for National Recovery paved way for later agreements Access to international advice and funding Important for WfD policy and evaluation and infrastructure Coordination Highlights from Ireland Essential to integrate WfD within national industrial and enterprise policy Need for coordination between the education and training systems National qualifications framework necessary mechanism Strong institutions Legislation through various Acts, including levy scheme for apprenticeships Oversight of the WfD system Still strong in aftermath of the 2008 crash 16

Strengthening Demand-Responsiveness Expert Group on Future Skills Needs, since 1997 Objectives Membership Implementation Identify future skill needs and advise on actions to address them; Advise on trainingbusiness links; Improve job-seeker and school-leaver awareness of skill demands Chair private sector 22 members, representing business, employees, government, including education Senior Managerial Implementation Group to consider proposals Industry-led training networks: Skillnets, since 1999 Key Features Activity Funding Companies pool resources to identify and meet training needs Enterprise-led Industry and sector-specific 40 training networks 20 research networks 456 courses. 25% certified 12,800 participants (1994-2004) SME focus: 75% from companies with < 5 workers Government subsidized with European Social Fund 17

Innovation in Pre-Employment Technical Education Background Studies 1964 OECD report on Training of Technicians in Ireland 1967 Government Report on Technical Education Enrollments in RTCs and IOTs, 1975-2001 New institutions 1980 Eight Regional Technical Colleges (RTCs) 1990 Five more added Reform 1992 RTCs placed on a statutory footing 1998 Re-designated as Institutes of Technology (IOTs) 2006 Consolidated as Institutes of Technology Program features Initial focus on post-secondary short-cycle middle-level courses in science, technology, business, art and design, and apprenticeship education; Combined 2 nd and 3 rd level technical and technological education; Certification provided by National Council for Education Awards (NCEA); from national certificate/diploma to degree and post-graduate level. 18

Highlights from Korea Tight link to economic aspirations and priorities WfD maps to successive economic development plans Strong role of Economic Planning Board until the 1990s Institutionalized mechanisms for cross-sector coordination and implementation Partnership with industry leaders Key role of major companies Early attention to minimum standards Sound funding base Levy scheme introduced in the 1970s, integrated in 1990s into the Employment Insurance System Social preferences for academic education 75% of vocational high school graduates proceed to tertiary education Promotion of Lifelong Learning since 1996 19

WfD Responses to the Early Five-Year Economic Plans 1st & 2nd Plans 1962-71 Vocational Training Vocational Education Build foundation for industrialization Export-led growth based on light industries Basic training for lowskilled workers Vocational Training Act Science and Technology Promotion Plan Industrial Education Promotion Act Science and Technology Promotion Plan 3 rd Plan (1972-76) Deepen industrialization Export-led growth driven by heavy and chemical industries Vocational Training Vocational Training Promotion Fund Act National Technical Qualification Act Vocational Education Industrial Education Promotion Act Amended Specialized technical high schools Vocational programs in general high school curricula 20

Skills Testing and Certification Modest start in 1968 Standards from abroad, for 15 occupations Foundation for a system laid in 1973 National Qualifications Act Testing system based on standardized criteria, developed with input from stakeholders Consolidation in 2002 National Competency Standards system Merged parallel efforts by different agencies to define common standards Prioritized key and emerging sectors (i.e., electronics, ICT, environmental engineering) Some system features Computerized scoring by 1990, extensive by 2010 Independent testing body Comprehensive online data on skills qualifications and certifications 300 250 200 150 100 50 0 Number of National Competency Standards Developed, 2002-2010 Annual Cumulative 2002 2003 2004 2005 2006 2007 2008 2009 2010 21

Highlights from Singapore A Tripartite Alliance involves unions, employers and government established in the early 1970s, still a core feature of WfD today Top level leadership and priorities provided through various avenues, with multi-stakeholder participation and input Statutory Boards to govern mission-oriented institutions Early and continued use of the Boards to create highly structured system with internal autonomy and flexibility, for example: Commitment to develop coherent, whole system, with strong base 22

Progress in Pre-Employment Education and Training 1992: From Assessment to Action Following 1991 Economic Review, Institute of Technical Education (ITE) was created as a Statutory Board Four 5-year transformational plans since 1995 ITE 2000 : ITE as a post-secondary institution ITE Breakthrough : ITE as a world-class institution ITE Advantage : leader in technical education ITE Innovate : leader for innovations in technical education Results 25% of each cohort with lowest academic scores in ITE World class programs closely linked to demand One ITE, Three Colleges system of governance Hands-on, Minds-on and Hearts-on pedagogy Pathways to polytechnic and even tertiary education 23

Progress in Continuing Education and Training From Assessment to Action 2002 Economic Review Made recommendations on CET 2003 Workforce Development Authority Was established 2008 Institute of Adult Learning Trains and certifies CET trainers; conducts research 2008 Employment and Employability Institute Serves unemployed and workers seeking to upgrade skills Qualifications framework 1999-2004: National Skills Recognition System piloted and expanded to 69 industries by 2004 2005 onward: WDA develops Work Skills Qualifications framework; Industry Skills and Training Councils and Manpower Skills and Training Councils created as advisory bodies, now representing 23 key economic sectors Funding of CET: Four sources Lifelong Learning Endowment Fund, established by an Act in 2001; had S$3.3 billion in 2011 Skills Development Fund, financed by employer levy, established in 1979 Ministry of Education, for academic-based CET Private funding 24

Outline 1. The SABER-WfD pilot countries 2. Overview of the results 3. Highlights from top performers 4. Reflections on building strong WfD systems 25

Reflections based on the SABER-WfD pilots Ingredients for building strong WfD systems Aspirations matter Leadership at the top is critical Partnership with stakeholders must be genuine Governance is vital for linking up the parts Financing is a powerful instrument Ownership is the only way to sustain effort required Learn-to-do, do-to-learn approach is indispensable 26

What does all this mean for your work with countries? 27

Think holistically Look above and below Do and learn 28

THANK YOU! World Bank Team SABER-WfD: Leader: Jee-Peng Tan (jtan@worldbank.org) Members: Rita Costa, Ryan Flynn, Viviana Gomez, Kiong Hock Lee, Joy Nam, Brent Parton, and Alexandria Valerio EDUCATION STAFF DEVELOPMENT PROGRAM 29