Technical and Vocational Education
and Training in Latin America
Overview and way forward
DIANA MEJÍA
Senior Advisor, Public Policy and Competitiveness
dmejia@caf.com
San José, June 4, 2014
Agenda
1. Relationship between competitiveness and education
2. Diagnosis of Technical and Vocational Education and
Training (TVET) in Latin America
3. Recommendations to overcome the challenges in
Latin America
4. CAF Program on Education for Productivity
5. Study case: main conclusions of KSP-CAF joint
program on TVET in Panama
Relationship between
competitiveness and education
Competitive position
0
10
20
China
WEF 2012-2013 (Percentile)
30
Brasil
Indonesia
Costa Rica
India
Philippines
40
50
Ecuador
Honduras
60
Mexico
Hungary
Peru
Colombia
Eslovaquia
Sri Lanka
Uruguay
Vietnam
Trinidad y Tobago
Argentina
70
Bolivia
Rep. Dominicana El Salvador
Nicaragua
Guyana
80
Finlandia Singapore
Switzerland
Suecia
Holanda
Japón Alemania EE.UU.
Hong Kong
Canada
Dinamarca
Reino
Unido
Taiwan,
China
Bélgica
Austria
Noruega
Korea, Rep.
Luxemburgo
Israel
Nueva Zelanda
Malaysia
Irlanda
Chile
Islandia
España
Estonia
Puerto Rico
KuwaitRep. Checa
Panama
Polonia
Italia Turquía
Portugal
Grecia
Jamaica
Paraguay
Venezuela
90
Haiti
100
100
90
80
70
60
50
40
Doing Business 2013 (Percentile)
30
20
10
0
Latin American countries experience a significant dispersion in their competitiveness
agendas
Source: World Economic Forum (2012-2013) and Doing Business (2013)
Comparison of global indicators of competitiveness
Competitiveness Index in Higher Education and Training
Technical and Vocational Education and Training (TVET) has traditionally been analyzed
from the perspective of educational and labor policies. However, currently it is also
assessed from the perspective of productivity policies of businesses and
competitiveness policies of economies as a fundamental aspect of countries growth.
Source: World Economic Forum (Global Competitiveness Index)
Key Indicators on Education - WEF
7.00
Score - 1 (Worst) to 7 (Best)
6.00
5.00
4.00
3.00
2.00
1.00
0.00
Quality of education
system
Quality of education in
sciences and math
Latin America
OECD
Quality of primary
education
Asia
Availability of scientists
and engineers
Total average
The Global Competitiveness Index of the WEF includes quality of the education system,
quality of primary education and quality of education in science and mathematics, as
well as the availability of scientists and engineers as key components of countries
competitiveness.
Positive relationship between GDP growth and
years and quality of education
Relationship between GDP growth and
years of education
Relationship between GDP growth and
quality of education
12.0%
Panama
10.0%
GDP growth
8.0%
Peru
Venezuela
6.0%
Ecuador
Dominican Rep.
Colombia
4.0%
Chile
Costa Rica
Bolivia
Uruguay
Argentina
2.0%
Trinidad y
Tobago
Brazil
0.0%
6
-2.0%
-4.0%
7
8
9
10
Paraguay
Average years of schooling
The positive relationship between GDP growth and average years of education
demonstrates the impact of education on productivity. In 1991, Barro demonstrated this
correlation for many countries. In 2013 he added that the correlation is stronger if
quality of education, as measured by standardized tests of knowledge in mathematics,
science and reading, is included.
Source: CAF , UNESCO (Informes sobre desarrollo Humano) y Hanushek y Woessmann (Schooling, educational achievement, and the
Latin American growth puzzle)
Correlation between labor productivity and the
use of reading skills at work
4.6
Norway
GDP per hour worked (in USD)
4.4
Irland
4.2
Netherlands
4.0
Italy
Spain
3.8
United Stares
Germany
Denmark
Austria
Sweden
England/Northern
Australia
Finland
Irland Canada
Japan
3.6
Slovakia
Korea
3.4
Czech Republic
Poland
3.2
3.0
less
Source: Survey of Adults Skills (PIAAC) (2012).
Estonia
Use of reading skills at work
more
Likelihood of positive social and economic outcomes
among highly literate adults
International average
Odds ratio
3.0
2.8
2.6
2.4
2.2
2.0
1.8
1.6
1.4
1.2
1.0
High wages
High levels of
political efficacy
Source: Survey of Adults Skills (PIAAC) (2012).
Participation in
High levels of trust
volunteer activities
Being employed
Good to excellent
health
Diagnosis of TVET in Latin America
Main problems of TVET in LA:
1. From coverage to quality:
Evolution of educational coverage in Latin America
1980
2000
2012
Educational coverage has improved in Latin America in the last 30 years,
however there is still a lag in terms of quality of education and generation of
skills and competencies of the workforce compared to those required by
companies.
Main problems of TVET in LA:
1. Low quality of education
Average performance in problem solving and variation in performance
Average performance in problem solving is below the OECD average
Average performance in problem solving is not statistically different from the OECD average
Average performance in problem solving is above the OECD average
600
Average OECD
Average performance in problem solving (in score points
Above-average problem-solving performance
Above-average variation in performance
575
550
Belgium
Promedio OECD
500
475
Israel
Singapur Korea
Japan
Macao-China
Hong Kong-China
Shanghai-China
Taipei
Finland
England
Czech Republic
Estonia
Austria
Netherlands
Italy
Germany
Norway
France
United States
Sweden Ireland Denmark
Portugal
Spain Slovak Republic
Russia
Poland
Croatia
Serbia
Slovenia
Canada
525
Above-average problem-solving performance
Below-average variation in performance
Australia
Hungary
Chile
Turkey
450
Brazil
425
Arab Emirates
Montenegro
Uruguay
Bulgaria
400
Colombia
Below-average problem-solving performance
Below-average variation in performance
Below-average problem-solving performance
Above-average variation in performance
375
125
120
Fuente: OECD, PISA 2012.
115
110
Malaysia
105
100
95
Standard deviation in problem-solving performance
(in score points)
90
85
80
75
Main problems of TVET in LA:
2. Gap between demand and supply
The demand of business services
Accesoto
a financiamiento
Access
finance
Prácticas
sector
informal
Informaldel
sector
practices
Fuerza laboral
inadecuadamente
Inadequately
educated capacitada
workforce
Tax rates
Tasas impositivas
Electricity
Electricidad
Crimen,
desorden
Crime,
theftrobo
and ydisorder
Corruption
Corrupción
Political instability
Inestabilidad
Política
Regulaciones
Customsaduanales
and tradey comerciales
regulations
Labor regulations
Regulaciones
laborales
Transport
Transporte
Business
licensesempresariales
and permits
Licencias
y permisos
Fiscal
administration
Administración
fiscal
Access
land
Acceso to
a tierras
Courts
Tribunales
0
2
4
6
8
10
12
14
16
According to World Bank figures, almost 37% of companies in the region believe that finding
a workforce with adequate training is one of their main obstacles.
Source: Enterprise Survey, 2010
Main problems of TVET in LA:
Trends in the demand for skills
Non-routine analytic
Non-routine interactive
74
Germany
Routine manual
1.00
United States
70
20
66
15
62
0.25
10
58
0.00
5
54
-0.25
0
50
-0.50
-5
46
-0.75
-10
42
-1.00
-15
38
-1.25
1979
1986
1992
1999
Source: OECD, PIAAC 2012
Japan
0.75
25
-20
Non-routine manual
Percentage change
Percentage change
Percentage change
30
Routine cognitive
0.50
34
1960 1970 1980 1990 2000 2009
-1.50
1960 1970 1980 1990 2000 2005
Main problems of TVET in LA:
3. Low investment of companies
Percentage of companies that deliver formal training by company size
Empresas
pequeñas (1-19)
(1-19)
Small companies
Venezuela
Uruguay
Perú
Paraguay
Nicaragua
México
Honduras
Guatemala
El Salvador
Ecuador
Costa Rica
Empresas
(20-99)
Medium medianas
companies
(20-199)
Rep. Dominicana
Empresas
grandes (200+)
Large companies
(200+)
Colombia
Chile
Brasil
Bolivia
Argentina
100.0
90.0
80.0
70.0
60.0
50.0
40.0
30.0
20.0
10.0
0.0
International companies, exporters, large and innovative give more formal
training than national, non-exporting, small and medium and not innovative.
Fuente: Diagnóstico sobre ETFP, CAF
Recommendations to overcome the
challenges in Latin America
Recommendations for Latin America
1. Institutional weakness of TVET systems:
• Formulation of a strategic framework, sectoral convergence and coordination of
public policies: the different areas of government must converge in their strategic
objectives and articulate their programs and action plans in an efficient and
coordinated manner.
• Institutional strengthening of TVET management: assigning distinct functions
according to three institutional levels: one strategic and rector of the system, one for
administration and management, and one provider of educational services and
vocational training.
• Business participation: encourage private participation and involvement in the
development of sector plans, cluster or value chains, as well as curriculum design and
definition of competencies.
• Cluster and territorial approach, SME support and development of quality assurance
schemes, monitoring and evaluation.
2. Low quality of education:
• Teacher training in specific technical skills.
Recomendaciones para América Latina
3. Gap between supply and demand of labor skills:
• Integration of the education and training system: integration of curricula that
interrelate the initial training, continuing education, adult education and non-formal
education; coordination of training of teachers in both systems, among others.
• Enterprise training: implementation of educational experiences that combine
theoretical classroom learning and experiential learning in enterprises (dual training).
4. Low investment in training by firms:
• Design of incentives and other mechanisms to encourage higher levels of training in
businesses, for example, tax incentives, creation of funds for the development of
human capital, etc.
Main recommendation: promoting competencies (qualifications) certification
as a mechanism for comprehensive solution of linkage between sectors and
processes.
System of training and certification of competencies
System management:
Scenario where the tripartite
social dialogue and agreement
process is verified on the
legitimacy and
representativeness of the
system.
Sectoral level:
Comprised of employers
and workers in a specific
sector. Development of
performance standards and
certification. Quality
assurance.
Government
sector
Sector 1
Operational level:
Institutions for training of
workers, evaluation and
certification.
Labor
sector
Employer
sector
Sector 2
Sector 3
Evaluation role
Training role
Source: Irigoin y Vargas, “Competencia Laboral. Manual de conceptos, métodos y aplicaciones”, Cinterfor/OIT (2002).
Certification
role
CAF Program on Education for
Productivity
Education for productivity - CAF
Main objectives:
1
Promote TVET as a driver of business
innovation and productivity growth in
competitive industries.
2
Bridging the gap between supply and demand
for TVET, in order to promote flexible training
systems and demand-driven and sustained
competitiveness in businesses.
Education for productivity - CAF
Program components:
1
Investment in infrastructure and institutional strengthening
2
Promotion of systems for competencies certification
3
Training and retraining of teachers
4
Introduction of innovative models - public private partnerships
5
Adoption of information systems and quality assurance
Study case: main conclusions of KSPCAF joint program on TVET in
Panama
Policy Recommendations for TVET of three main industries
Issue 1: Adoption of Qualification System for the 3 Main Industry Sectors
National
- S1: 3 Main industry sector should first be organized as a foundation for the
development of qualification system for the 3 industry sectors
- S2: TVET system for the 3 sectors should be improved continuously to align it
with operation of the qualification system
Issue 1: Adoption of the Converged Education and Training Systems
- S1: The Curriculums and the Programs should be Restructured and operated,
Logistics
reflecting characteristics of logistic industry
Issue 2: Adoption of Life-long vocational training system for workers
- S1: To provide a life-long vocational training system for employees of the
logistics sector of Panama
Policy Recommendations for TVET of three main industries
Issue 1: lack of strategic plan reflecting environmental change
Tourism
- S1: Maintaining the global service quality by strengthening the qualification system
for employees in the private sector
issue 2: lack of strategic plan reflecting regional characteristics
- S1: Retraining the government officers to become specialized manpower
- S2: Expanding the roles of universities through region-based industry-academia
cooperation
Issue 1: Increasing import of agricultural product’s because of low productivity
Agriculture
- S1: Expand a production of agricultural product’s with high added value
- S2: Innovation TVET system in agriculture applying NCS and NQF
Issue 2: Low industry growth rate and weak profit structure
- S1: National level Policy for improving quality of life and increasing income for
agricultural communities
- S2: Paradigm shift to the ’6th industry’ from the traditional agricultural industry
Más oportunidades, un mejor futuro.
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