Amit Dar – Making skills programs work


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Report by Amit Dar
at Global Education Futures Forum in Kazan, Russia, 22-23 May 2015

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Amit Dar – Making skills programs work

  1. 1. Making Skills Programs Work Future Skills International Forum, Kazan May 2015
  2. 2. Outline   I.      Skills  in  the  Global  Context   II.    Key  Features  of  ECA   III.  Skills  Development  as  a  Life-­‐long  Process   IV.  Lessons  of  Experience  for  Job-­‐Specific  Skills  Development   V.    Moving  Forward   2  
  3. 3. I.        Skills  in  the  Global  Context     3  
  4. 4. Skills  are  a  constraint  around  the  world   0%   5%   10%   15%   20%   25%   30%   35%   40%   45%   World   Sub-­‐Saharan   Africa   South  Asia   Eastern  Europe  &   Central  Asia   East  Asia  &   Pacific   Middle  East  &   North  Africa   LaGn  America  &   Caribbean   High-­‐income   OECD   %  unskilled  workers,  out  of  all  producGon  workers   %  firms  idenGfying  labor  regulaGons  as  a  major  constraint   %  firms  idenGfying  an  inadequately  educated  workforce  as  a  major  constraint   Source:  Enterprise  Surveys    2010   4  
  5. 5. Global  Trends  Related  to  Skills   •  Wage  differenGals  are  rising  between  skilled  and   unskilled  workers  in  many  regions   •  Skilled  jobs  are  growing  faster  than  unskilled   employment   •  Knowledge-­‐based  industries  are  expanding  rapidly   and  with  them  the  demand  for    ‘new  skills’   •  Unskilled  workers  are  increasingly  more  vulnerable   to  job  loss,  extended  unemployment,  and  declining   real  wages   5
  6. 6. II.  Key  Features  of  ECA   6  
  7. 7. The  ECA  region  sLll  faces  specific  challenges  that  impede   progress  toward  reducing  poverty  and  sharing  prosperity   7   Poverty  remains  an  issue     •  Poverty  remains  high  in  some   countries  (e.g.,  Armenia,  Georgia,   Kosovo,  Kyrgyz  Republic,  Tajikistan)   •  Pockets  of  poverty  remain  in  many   countries/communiGes  (e.g.,  Roma)   Risk  of  reversal  in     shared  prosperity     •  Ageing   •  Long  term  unemployment   •  Long  term  erosion  of  producGvity  and   compeGGveness;  lack  of  jobs   Specific  challenges     In  EducaLon     •  Increasing    access  /Inclusion  (Pre-­‐school  and  terGary)   •  Improving  quality  and  relevance   •  Skills  not  just  diplomas   •  EducaGon  Finance  Reform  
  8. 8. Uneven  access  to  early  childhood  educaLon  and  quality   basic  educaLon  threatens  progress     toward  reducing  poverty  and  sharing  prosperity  in  ECA   8   61   57   45   44   42   41   39   30   28   27   26   24   23   21   20   20   14   11   0   20   40   60   Albania   Montenegro   Kazakhstan   Bulgaria   Turkey   Romania   Serbia   CroaGa   Hungary   Slovak  Republic   Lithuania   Russian  FederaGon   OECD  members   Czech  Republic   Slovenia   Latvia   Poland   Estonia   %  of  15  year  olds  scoring  at  level  1  or  below     on  PISA  2012  MathemaLcs  assessment   In  some  countries,  half  of  students  compleLng   basic  educaLon  are  funcLonally  innumerate   103  103   101   94   91   90   90   90   87   85   83   80   78   78   77   69   64   61   58   56   54   51   29   26   25   25   25   16   9   0   25   50   75   100   Czech  Republic   Belarus   Ukraine   Slovenia   Slovak  Republic   Russian  FederaGon   Latvia   Estonia   Hungary   Bulgaria   OECD  members   Moldova   Poland   Romania   Lithuania   Albania   CroaGa   Montenegro   Georgia   Serbia   Kazakhstan   Armenia   Turkey   Macedonia,  FYR   Azerbaijan   Uzbekistan   Kyrgyz  Republic   Bosnia  and  Herzegovina   Tajikistan   Pre-­‐primary  gross  enrollment  rate   (2012  or  latest  available  year)   In  some  countries,  3  out  of  every  4  children  are   not  enrolled  in  preschool   Source:  EdStats.  
  9. 9. 9   0   1   2   3   4   5   6   7   8   9   Number  of  Countries     EU10+1  and  Turkey   Western  Balkans   LI  CIS   MI  CIS           AZE     BIH     KOS     MKD     SRB     SVN                             ARM     GEO     KGZ     ALB     BGR     TUR       Mean  =  30.2                        TJK                    UZB                    CZE                      EST                      HRV                                  LVA                                  POL                              SVK                               UKR     MDA     LTU     ROM                 MNE     HUN                         KAZ     RUS         BLR   Countries  where  more   than  40%  of  firms   report  “skills”  as  a   severe  constraint  to   growth     ECA  faces  Supply  Side  LimitaLons   Ø  Workers'  skills  had  become  a  constraint  on  firm  expansion  by  2008  (percent  of   firms  considering  factor  a  'major'  or  'very  severe'  constraint).   Ø  Available  data  mostly  focuses  on  educaLon  aeained,  not  the  skills  acquired.  
  10. 10. III.  Skills  Development  as  a  Life-­‐long  Process    
  11. 11. Different  Sorts  of  Skills   Many  skills,  diverse  gaps   •  Different  types  of  skills  that  maeer  for  employment  and   producLvity:   –  Problem-­‐solving  skills   –  Learning  (foundaGonal)  skills:  ability  to  acquire  new  knowledge   –  CommunicaGon  skills   –  Personal  skills:  self  management,  sound  judgment,  managing  risk   –  Social  skills:  team,  manage  client  relaGons,  leadership,  resolve  conflict,   etc.   –  Technical  skills:  job/producGon  specific     •  Skills  are  acquired  at  different  stages  in  the  lifecycle:  across   sectors  and  across  generaLons.     11  
  12. 12.                                              Source:  World  Bank  2010.       AnalyGcal  Framework:  Stepping  Up  Skills  for   Employment  and  ProducGvity  (STEP)   12  
  13. 13.                                                          Source:  World  Bank  2010.     …where  skills  development  is  a  cumulaGve   life-­‐cycle  process   13  
  14. 14. IV.  Evidence  of  Lessons  for  Job-­‐Specific  Skills  Development   –  Investment  in  Early  IntervenGons  and  FoundaGonal  Skills   –  Basic  Skills   –  Role  of  Government   –  Role  of  Employers   –  Financing   –  Private  Providers   –  Monitoring  and  EvaluaGon     14  
  15. 15. A.  Investment  in  Early  IntervenGons  and   FoundaGonal  Skills     – Invest  in  early  intervenGons  (e.g.  nutriGon,  health   inputs,  preschool  educaGonal  inputs),  which  is   essenGal  for  school  readiness   – Improving  student  learning  for  all  through   investment  in  access  to  quality  primary  educaGon   for  all      
  16. 16. B.  Basic  Skills   •  Introduce  literacy  and  so0  skill  development   modules  as  part  of  programs…   –  In  most  countries,  large  numbers  of  school  goers  drop   out  early;  and  large  parts  of  the  workforce  have  liple   knowledge  and  few  skills  that  would  make  them  more   employable.   –  Introducing  modules  focused  on  literacy  and  soq  skills   as  part  of  basic  and  secondary  educaGon  and  training   programs  can  help  break  the  vicious  circle  of  the   unskilled  being  trapped  in  jobs  that  require  liple  skills,   establish  accessible  pathways  for  acquiring  skills  (e.g.   Vietnam,  Russia).    
  17. 17. C.  Role  of  Government     •  Government  has  a  cri:cal  role  to  play…   – mainly  in  regulaGon,  standard  serng  ,  M+E,   and  selecGve  financing  (e.g.  Australia,   ArgenGna)   – Exploring  innovaGve  public-­‐private   partnerships  to  enhance  provision  of   market  relevant  skills  (e.g.  Korea,  Malaysia)  
  18. 18.   Role  of  Government   ArgenGna  –  Quality  Assurance  Systems       ArgenGna  is  developing  the  workforce  skills  of  disadvantaged  workers    through:       •  Diversifying  Pathways  for  Skills  AcquisiLon  for  disadvantages  workers-­‐  Making  qualificaGons   more  transparent  and  portable  through  the  Government  face-­‐liqing  at  the  processes  of  serng   standards  by  employers  and  workers,     –  Providing  credibility  for  skills  tesLng  and  cerLficaLon  -­‐    Ensuring  the  funcGoning  of  qualified   third-­‐party  assessment  centers  and  cerGficaGon  organizaGons   •  ExponenGal  growth  in  non-­‐state  providers  is  a  posiGve  development  but  underscore  the   importance  for  the  development  of  clear  standards  to  ensure  quality  training  programs     •  Making  qualificaLons  more  transparent  and  portable    -­‐  Developing  a    framework  for     competency-­‐based  training  and  cerGficaGon    
  19. 19. D.  Role  of  Employers   •  Ensure  employers  play  a  cri:cal  role  in  system….   –  Employers  need  to  have  an  important  voice  at  the   table  at  the  policy  level   –  At  the  insGtuGon  level  –  employers  need  to  be   involved  in  management  of  insGtuGons  and  decide  on   how  resources  are  spent  and  what  type  of   investments  to  make     –  Relatedly  –  this  can  only  work  if  insGtuGons  have  the   academic  and  financial  autonomy  to  make  decisions   and  are  held  accountable  for  them  (e.g.  Chile)    
  20. 20. Delivery  of  subsidized  training  and  technical  assistance  for  Small  Enterprises     –  Promoters  provide  iniGal  diagnosGc   –  Training  on  a  cost-­‐sharing  and  sliding  basis:  CIMO  70%,  Firm  30%,  declining   to  50-­‐50  cost-­‐sharing   –  Different  modaliGes  -­‐-­‐  (1)  integrated  training,  (2)  training  plus   individualized  consulGng  services   –  Group  training  delivered  by  local  training  providers,  as  well  as  cluster-­‐ based  training     Compared  to  a  control  group,  CIMO  firms:   –  Increased  investments  in  worker  training,     –  Had  higher  rates  of  capacity  uGlizaGon,     –  More  likely  to  adopt  quality  control  pracGces.     –  Increased  wage  and  employment  growth,  and   –  Reduced  labor  turnover,  absenteeism,  and  rejecGon  rates  for  products.     **    The  most  drama=c  impacts  were  among  micro  and  small  firms.   Employers   Mexico’s  Comprehensive  Quality  and  ModernizaGon   Program  (CIMO)      
  21. 21. E.  Financing   •  Introduce  performance  financing  of   programs  …   – Currently,  nearly  all  public  funding  is  input  based.       –   A  shiq  in  this  relaGonship  towards  financing  linked   to  outputs/outcomes  will  be  criGcal  to  make   training  more  relevant  for  labor  market  needs.  (e.g.,   Brazil)  
  22. 22. F.  Private  Providers   •  Clear  and  lenient  laws  result  in  a  vigorous  response   from  private  providers.   •  Public  funding  can  encourage  private  provision  of   programs  –  through  leveling  the  playing  field   between  public  and  private  sector  (e.g.  Czech   Republic).   •  Business  oriented  skills  are  the  first  to  proliferate  the   private  market,  but  rapid  industrial  growth  can  lead   to  strong  private  supply  of  technical  skills  (e.g.   Indonesia).  
  23. 23. GOVERNMENT   RECOGNITION   §  Approval     §  Licence     INCENTIVES   §  Training  Support  (HRDF)   §  Double  deducGon  IncenGve   §  Tax  ExempGon   INFRASTRUCTURE   §  FaciliGes   §  Building     CAPITAL  GRANT   §  Set  Up  Grant   §  Equipment  Grant   §  Building  Grant   INDUSTRY   LEADERSHIP   §  New  Concepts/Ideas   §  Processes  &  Systems     SHARING   §  Resources/ExperGse   §  Technology   §  Trainers     ACADEMIA   TRAINING  RESOURCE   §  Lecturers   §  Content  Experts     PROGRAM  DEVELOPMENT   §   Training  Materials   Private  Providers   Malaysia  -­‐  The  Penang  Skills  Development  Centre  (PSDC)   Roles  of  the  Various  Stakeholders      
  24. 24. G.  M+E   •  Par:cipate  in  the  interna:onal  or  develop  a  na:onal   systems  of  tes:ng  for  competencies/skills:   –  Countries  can  make  a  start  by  considering  parGcipaGng  in   a  few  systems  that  are  present  –  for  example,  SABER  and   STEP  (World  Bank)  and  PIAAC  (OECD)  which  will  allow   them  to  get  valuable  experience  at  relaGvely  low  cost.     –  Always…evaluate  programs    -­‐  feed  lessons  into  improving   design  (e.g.  India  study)  
  25. 25. Lessons  of  Experience:  M+E   India:  Value  of  Measuring  Performance  of  System   •  EvaluaGon  of  five  flagship  GoI  Skill  Development  Programs  (SDPs)  in  five  States     •  Although  sGll  fairly  recent,  these  programs  are  not  pilots,    already  more  than  five  million   people  trained  since  2011     •  Push  for  expansion:  Of  the  overall  GoI  target    of  skilling  500  million  by  2022,  the  five  SDPs   have  a  combined  target  of  285  million       •  Findings:     –  Only  25-­‐30%  of  trainees  are  placed  with  support  from  their  TPs.  About  2  years  aqer   training,  the  %  of  trainees  with  jobs  remains  roughly  the  same.   –  SD  programs  give  a  posiGve  earnings  premium:  trainees  who  have  got  a  job  earn  on   average  about  21%  more  than  non-­‐trainees  (  with  same  age,  educaGon,  marital  status,   state  of  residence)     –  Work  experience  before  training  period  (strong  effect),  knowledge  of  English,  and   programs  combining  classroom  training  with  pracGcal  training  in  industry  increase   probability  of  employment  aqer  training.   •  Findings  of  the  Study  have  been  presented  to  the  PM’s  office  and  our  now  a  part  of  the   naLonal  dialogue  on  how  to  improve  the  skills  development  system.    
  26. 26. V.  Moving  Forward   26  
  27. 27. Moving  Forward:  Progress  in  Our  Skills   Development  Work     •  Strong  demand  for  our  skills  development  work  across  the   region  as  countries  are  apempGng  to  improve  labor   producGvity  and  employment   •  Building  evidence  base  on  what  works  and  incorporaGng  into   program  design   •  PiloGng  skills  development  programs  for  increased   producGvity  of  entrepreneurship  and  self  employment  in   informal  serngs   •  SupporGng  governance  reforms  of  skills  systems   •  SupporGng  skills  for  innovaGons  in  more  formal  serngs   •  Leveraging  work  done  with  other  GPs  and  DPs