Designing Financing Systems for
Lifelong Learning :
Financing what ? and by whom?
David Atchoarena
November 2014
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TVET Funding: Key building block of TVET
reform
During last decade, TVET reforms aimed at responding to
contextual factors and were driven by following rationales:
• Economic growth rationale (mainly): Shift from a supplydriven mode to one that is driven by economic demand
• Social equity rationale (increasingly): Expand to include
social objective that have sought to expand access to TVET
learning opportunities especially for marginalized groups
• Sustainable development rationale (more recent): broader
objective related to sustainability of societies, green
economies and lifelong learning
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Prevailing TVET funding models: Meeting the
economic and social equity rationales
• Funding mechanisms and methodologies for allocation and use were
considered as integral parts of TVET steering.
• Diversified financing of TVET was considered crucial for a successful
transition from policy formation to long-term policy
implementation.
• Financing policies were expected to ensure both the stability of
funding needed to develop the capacity for policy implementation
as well as the level of financing to improve TVET outcomes.
• Key examples of policy measures that have been used include:
 the establishment of sustainable funding source: Training funds over
sixty countries mostly in Africa, Latin America and Europe (Johansen,
2009 & CEDEFOP, 2008)
 the improvement of effectiveness, efficiency, equity and
accountability of TVET funding: Performance-based formula in
Scotland
 Increase TVET attractiveness through funding: TVET in Tertiary
education in Chile
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Typology of training funds
• (i) pre-employment training fund: build national training capacities
and increase training provision to meet labour market needs. For
example, SENAI in Brazil trains 2.8 million people per annum and has
accounted for over 30 million trainees since its creation (Source:
UNESCO, 2014)
• (ii) enterprise training fund: increase the productivity and
competitiveness of firms by raising the skills of workers. The Special
Training Contracts Fund in Morocco supports enterprises in defining
their skills needs and in investing in employees training.
• (iii) equity training fund: raise the incomes of disadvantaged groups
by providing skills development opportunities. An example is the
Cambodian Training Fund which was established to support
community-based training initiatives in particular in rural areas
(Source: UNESCO, 2013).
Source: Johansen 2009
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Other important Funding Sources
• Employment Funds (Tunisia, Algeria)
• Poverty reduction Funds (Laos)
• Social Funds (Egypt)
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Lifelong Learning at the forefront of the
international development discourse
Post-2015 agenda aims at achieving inclusive
lifelong learning for all
Muscat
Agreement
Report of the
High-Level
Open Working
Panel of
Group on
Eminent
Sustainable
Persons on
Development
the post-2015
Goals
Development
Agenda
Forthcoming
UN Secretary
General
Report
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Main features of lifelong learning and
implications
Life-long
Life-wide
Learning and
learner centered
People continue
learning throughout
their lives, not just in
informal ways but
also in formal and
non-formal settings.
Learning in many
different settings
Shift of perspective
from ‘education’ to
‘learning’
Smooth progression,
with multiple access
and exit points,
pathways and
transitions
Assessment and
recognition of
learning occurring
outside the formal
education system
important
Learner has greater
choice in learning
opportunities and
options but also
greater responsibility
Source: Hans G. Schuetze (2007) Individual Learning Accounts and other models of financing lifelong
learning, International Journal of Lifelong Education, 26:1, 5-23
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Different financing models for
LLL systems
Complementary
Coordinated
Integrated
• Single purpose of programme systems
• Unconnected to and complementing others
• Multiple systems for different activities and/or
populations
• Certain degree of consistency and level of coordination
• Single financing system for all lifelong learning
activities
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Source: Hans G. Schuetze (2007) Individual Learning Accounts and other models of financing lifelong
learning, International Journal of Lifelong Education, 26:1, 5-23
Promising approaches for the financing of LLL
Learner-centred
Individual Learning
Accounts
Individual
entitlements
Loan schemes
Social security
schemes
Financing instruments reflecting this
focus
• Savings ILA (ex. Austria)
• Training Vouchers (ex. Italy)
• Entitlements to training (ex. Australia)
• Time credit (CPF, France)
• Fixed instalments loans (ex. Career development
loans, UK)
• Income contingent loans (ex. Australia, expanding to
skills training)
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• Ex. Malaysia Employees Provident Fund
Promising approaches for the financing of LLL
Life-long and life-wide
Financing of recognition
and validation schemes
• Right to validation schemes, possibly
financed. Certific, Brazil, National
system of certification of Labour
competences, Chile
• Documentation tools of qualifications,
skills and learning experiences. Ex.
Shanghai Academy Credit Transfer and
Accumulation Bank for Lifelong
Education, Europass, Online Badges.
Financing schemes enabling
smooth progression
Other services promoting
access to LLL and
progression
• Guidance (France)
• Training leaves (can be
combined with other
financing incentives)
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UNESCO’s strands of work
Policy review and capacity building
• UNESCO guidelines for TVET policy review: 15 conducted and ongoing
reviews
• Capacity building programmes in Malawi, Madagascar, Benin, Afghanistan
Publications
• UNESCO publication “Unleashing TVET potential” (forthcoming): Review of
international experience in funding TVET
• UNESCO publication “BRICS Education for the future”: Review of BRICS skills
development strategies
Normative work
• Revision of the 2001 TVET Recommendation: Defining key principles
• Examining LLL from a right perspective
Research
• UNESCO-UNEVOC: Reviewing Return on investment in TVET (Economic,
social and sustainability)
• Pole de Dakar & TVET Section: Exploring private investment in skills
development through LFS and HHS data
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Thank you !
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