Technical and Vocational Education and Training and the Labour Market in Development Cooperation - StrategieS 140
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S t r at eg i e s 1 4 0 Technical and Vocational Education and Training and the Labour Market in Development Cooperation
Technic al and Voc ational Educ ation and Training and the Labour Market
in Development Cooperation
Contents
Summary 4
1 Fields of application and positioning of the strategy 6
1.1 purpose of the Strategy paper 6
1.2 Definition of the Strategy Paper‘s area of application vis-à-vis other development
sectors / sub-sectors 6
2 Significance of technical and vocational education and
training (TVET) and the labour market in partner countries 10
2.1 Relevance 10
2.2 Starting conditions in partner countries 12
3 Objectives 14
4 Experiences and opportunities 15
4.1 Cooperation at multilateral and EU level 15
4.2 German bilateral cooperation 16
5 Implementation of the Strategy Paper 19
5.1 Target groups and partners 19
5.2 Strategies and instruments 19
5.2.1 General directives 19
5.2.2 Strategies and instruments for cooperation in the area of technical
and vocational education and training 21
5.2.3 Strategies and instruments for cooperation in the area of labour
market policy 25
5.2.4 Directives for post-conflict situations and situations following
natural disasters 28Technic al and Voc ational Educ ation and Training and the Labour Market
in Development Cooperation
Annex 1 29
Labour market and employment policy: Clarification of terminology and correlations
Annex 2 32
Technical and Vocational Education and Training:
Clarification of terminology and correlations in the EU context
Annex 3 36
Technical and vocational education and training provision.
More detailed explanation of Section 5.2.2 of the Strategy Paper
Annex 4 37
Multilateral and European cooperation in the technical and vocational education
and training and labour market sector.
Long version of the statements summarised in Section 4.1 Technic al and Voc ational Educ ation and Training and the Labour Market
in Development Cooperation
Summary
Unemployment and underemployment are two Whereas private sector development and finan-
of the most serious development problems facing cial system development are especially impor-
the partner countries in which german develop- tant in creating new jobs, as is discussed in other
ment cooperation operates. according to the strategy papers, this Strategy Paper describes
international Labour Organization (iLO), 186 the activities to be undertaken in the field of
million people worldwide are unemployed. the technical and vocational education and train-
number of underemployed people in developing ing (TVET). It details ways to improve job-seekers‘
countries is estimated to be far higher – as many employability, as well as labour market policy
as 550 million. Facilitating more people‘s access measures which perform an intermediary role in
to productive employment that pays a decent the job market and thus achieve better matching
wage, thus giving them a source of income, is a between labour supply and demand.
key element of sustainable poverty reduction
and the achievement of the Millennium Devel- The overall goal of measures undertaken in the
opment goals. Young people and women must area of technical and vocational education and
be accorded particular attention in this context. training and the labour market is to help safe-
there are already more than 1 billion young peo- guard and increase productive employment in
ple aged between 15 and 29 years living in devel- developing, newly industrialising and transition
oping countries. Like women, they account for a countries. An element of this process is to create
disproportionately high percentage of the jobless synergies and encourage interaction between
and underemployed: while the total number of technical and vocational education and training
young people in developing countries increased and labour market policies. Reliable labour mar-
by 12.4% between 1993 and 2003, youth employ- ket information and the monitoring of employ-
ment rose by just 0.6%. in the coming years, the ment impacts are extremely important in devel-
number of young people coming on to the job oping needs-related technical and vocational
market in developing countries will steadily education and training and labour market policy
increase. Improving youth employment is defined measures. In some cases, the executing agencies
as an explicit objective in the Millennium Devel- involved in these spheres of activity are one and
opment goals and the german government‘s the same.
Programme of Action 2015. In terms of conflict
prevention, too, increasing (youth) employment The following figure offers an overview of the
is extremely important. general and specific directives for projects and
programmes in the field of technical and voca-
efforts to improve the employment situation in tional education and training and labour market
developing countries focus on policy, which are described in detail in Chapter 5.
● creating new jobs;
● improving job-seekers‘ employability;
● better “matching” between supply and
demand in the labour market.Technic al and Voc ational Educ ation and Training and the Labour Market
in Development Cooperation
Figure 1: Overview of directives for projects and programms in the field of TVET and labour market
General Directives (see Section 5.2.1)
● Impact orientation: contribution to employment;
Poverty reduction / achievement of MDGs Special cases,
● Country context to be considered especially post-conflict
● Partnership principle, donor harmonisation, situations: see Section 5.2.4
“joined-up” development cooperation
Check the need for TVET and/or LM projects/programmes
and the required relative emphasis on TVET or LM
● Promotion of integrated TVET/LM approaches as far as possible
● Inclusion of formal and informal labour markets
● Systemic multilevel approach
● Quality management by partner organisations
● Impact monitoring (especially employment impacts)
Technical and vocational education Labour market (LM)
and training (TVET) (see Section 5.2.2) (see Section 5.2.3)
Principles Labour market information systems
● Practice and action orientation ● Collection, interpretation and dissemination
● Work process orientation of LM data
● Key capabilities ● Strengthening institutions which provide LM data
Employment services
TVeT for the TVeT for the TVeT for the ● Strengthening labour administration
formal informal specific ● Provider diversity
labour labour labour market ● Target-group-specific procedures and institutions
market market segments ● Customer orientation
Thematic priorities Vocational guidance / counselling
● Partnership between state, private sector and ● for first jobbers
civil society ● for other job-seekers
● Decentralisation and privatisation ● Provider diversity
● Institutional capacity development
● Initial and further training for teaching and Labour law aspects
management staff ● Flexibility v. rigidity of the labour market
● Promoting international networks Technic al and Voc ational Educ ation and Training and the Labour Market
in Development Cooperation
1 Fields of application and positioning
of the strategy
1.1 Purpose of the Strategy Paper G
this Strategy Paper on “technical and Vocational
education and training and the Labour Market
in Development Cooperation” presents an up-to-
date overview of the conceptual approaches
being pursued by the BMZ in this specific area of
work, which is one of four areas of competency
within the priority area of sustainable economic
development (previously: economic reform and
development of the market system – WiraM).
it replaces the BMZ‘s Sector Concept: Vocational
Training of 1992, taking account of the knowledge
gained in the intervening period in the field of
technical and vocational education and training,
linking it to key findings in labour market policy
and thereby reflecting the great importance of
productive employment in reducing poverty. the
labour market orientation of technical and voca-
tional education and training – which is not new
in terms of the objectives being set – is established
on a more systematic footing. at the same time,
this Strategy Paper highlights the importance
of labour market policy in mediating between
demand and supply in the employment market,
and identifies the institutions and mechanisms
of relevance in this context1. By means of the
approaches described, it aims to make effective
contributions to the overarching goals and guide-
lines for action on poverty reduction that have
been defined at national and international level,
especially the Millennium Development
Other aspects of labour market and employment policy are beyond
the scope of this Strategy Paper and are therefore not discussed in
detail. However, this does not detract from their importance, and the
possibility of dealing with them in other strategy papers. For clarifica-
tion of the terminology used in the labour market and employment
policy sector, see Annex 1; terminology used in the technical and voca-
tional education and training sector is defined in Annex 2.Technic al and Voc ational Educ ation and Training and the Labour Market
in Development Cooperation
by improving competitiveness. Private sector ● as technical and vocational education
development and financial system development and training helps to maintain and increase
play an important role in creating jobs and thus employability, it is of key importance,
stimulating the demand side of the labour mar- above all, to the supply side of the labour
ket – explicitly or implicitly as an intended out- market. In this context, a broad defini-
come of efforts to boost the economy – whereas tion of technical and vocational education
the focus of technical and vocational educa and training must be applied. technical
tion and training and the labour market as an and vocational education and training
area of core competency is on the supply side promotes the acquisition, maintenance
of the labour market (i.e. the supply of workers) and further development of abilities, skills
and the intermediation between labour supply and attitudes which enable individuals to
and demand. Technical and vocational education engage in dependent and non-dependent
and training also performs a social function by employment, generate income and benefit
empowering people to participate actively in civil from enhanced opportunities for social
society processes. participation. it is aimed at the comprehen-
sive promotion of the holistic capability to
The subject of this area of core competency can act independently within the scope of and
be described as follows: according to the values attached to a skilled
Figure 2: TVET and the Labour Market in Development Cooperation
Labour supply Matching Demand for labour
Social skills Labour market information
Employ- Matching Job creation
➝
ability supply and
demand
Boosting
the economy
➝
➝
➝
➝
➝
➝ ➝
➝
Basic Technical Labour market Private Financial
education
➝ and vocational policy measures sector system
education and in line with this develop- develop-
training Strategy paper ment ment
Youth policy Education TVeT Active labour Passive Social policy Trade policy,
policy policy market policy labour fiscal policy
market etc.
policy
= Subject of the Strategy Paper Technic al and Voc ational Educ ation and Training and the Labour Market
in Development Cooperation
occupation, which includes methodologi- ● instruments and impacts of passive labour
cal and social skills alongside work-related market policy or social policy.
expertise. By acquiring key capabilities,
individuals are empowered to shape their these aspects are dealt with in other strategy doc-
own lives and work situation pro-actively. uments on economic policy advice, private sector
development, financial system development, core
● Labour market policy measures, as labour standards and the promotion of social
described in this Strategy Paper, aim to security systems 2.
improve job-seekers‘ access to the labour
market and facilitate the recruitment of technical and vocational education and training
workers. this ensures better matching and labour market policy measures, as described
between the supply of and demand for in this Strategy Paper, require intensive inter
skilled workers. at the same time, they acting with other sectors of German develop
enhance the impact of technical and voca- ment cooperation within and outside the scope
tional education and training on produc- of the “sustainable economic development” pri-
tive employment. ority area. attention is drawn to the following
intersections as key examples:
there is major potential to encourage interaction
and synergies between technical and vocational ● Strategies aimed at local economic or sector-
education and training and labour market policy: specific development, where it is difficult to
well-prepared and regularly updated labour mar- make a clear distinction between techno-
ket information and the monitoring of employment logical and management advice and tech-
impacts are extremely important in promoting nical and vocational education and train-
needs-related technical and vocational education ing measures, are important links between
and training and labour market policy measures; technical and vocational education and
in some cases, the executing agencies are one and training and private sector development.
the same. Measures in the area of core compe- the same applies to business start-up pro-
tency should not focus solely on formal produc- grammes which, although relating primar-
tive employment but must also involve the infor ily to the demand side of the labour market
mal sector – the dominant labour market sector and therefore to private sector develop-
in many of these countries – whose progressive ment, should also be combined with initial
integration into formal business cycles is espe- and further training measures, advisory and
cially important in boosting economic activity. employment services in order to enhance
employment impacts.
this Strategy Paper does not deal with issues
which relate to: ● Economic policy advice, alongside labour
market policy measures in line with this
● the demand side of the labour market Strategy Paper, may also include those
(especially job creation in a more dynamic labour market policy measures which help
economy),
For example, BMZ: Sectoral Policy Paper on Financial System Develop-
● targeted improvement of employment ment, Bonn, January 2004; BMZ Special: Implementing Core Labour
Standards in Developing Countries, Bonn, September 2003; BMZ Spe-
quality (e.g. compliance with social stan- cial: Promoting Social Security Systems in Developing Countries, Bonn,
dards), or March 1999. Updated editions of the BMZ‘s strategy papers for the
promotion of the private sector and the provision of economic policy
advice are forthcoming.Technic al and Voc ational Educ ation and Training and the Labour Market
in Development Cooperation
to safeguard and create jobs (e.g. within the ● Some technical and vocational education
framework of structural or regional policy and training and labour market policy
initiatives). measures which relate to specialised areas
of expertise may also be useful in other
● as the corollary of greater investment in priority areas of German development
basic education, the question of what will cooperation such as health, food security
happen to the increasing number of school- and agriculture, communication and
leavers is becoming an ever more urgent transportation, democracy, civil society
issue in technical and vocational education and public administration, or water
and training. intensive cooperation with resources and the environment. in each
stakeholders working in basic education is case, it is essential to consider the cross-
required in order to provide, on the basis of cutting themes of conflict prevention,
labour market analyses, adequate capacities gender and especially youth, given the
in terms of both quantity and quality and to high proportion of young people in the
offer career guidance across the board from populations of developing countries and
basic education to technical and vocational their specific difficulties in accessing the
education and training, along with training labour market.4
for people who have broken off their basic
education3 (school drop-outs).
See also BMZ: Basic Education for All as an International Development See also BMZ: Summary of the Series Evaluation “Combating Youth
Goal * A Key Challenge for German Development Policy; BMZ Position Poverty” – Synthesis Report, Bonn, October 2004. The report identified
Paper, Bonn, August 2004, p. 24-25. employment promotion and TVET as areas in which a particularly sig-
nificant contribution is being made to reducing youth poverty (p. 2).10 Technic al and Voc ational Educ ation and Training and the Labour Market
in Development Cooperation
2 Significance of technical and vocational
education and training (TVET) and
the labour market in partner countries
2 ing years, the number of young people
coming on to the job market in develop-
ing countries will be steadily increasing.
By facilitating and promoting job-seekers‘
access to the formal and informal labour
market through its activities in the area of
technical and vocational education and
training and labour market, German devel-
opment cooperation is making important
contributions to reducing unemployment
and underemployment. As joblessness
and underemployment among large sec-
tions of the population also have the poten-
tial to fuel conflict, technical and voca-
tional education and training and labour
market policy measures can also contribute
indirectly to conflict prevention.
● A skilled workforce and a functioning
labour market are key location factors,
influencing not only the competitive-
ness of businesses, economic sectors and
regions within the country concerned,
but also its international competitiveness.
This is because competitive advantages
are increasingly based on innovation and
know-now, and on their dissemination and
valorisation in all sectors of the economy
and society. Technical and vocational edu-
cation and training in the broad sense
described above (see Section 1.2.) makes
key contributions to the dissemination of
know-how. A functioning labour market
ILO, Global Employment Trends (2004), p. 2. promotes the valorisation of this know-how
Calculation based on ILO, Global Employment Trends for Youth (2004), p. 6. by establishing the framework for this pro-
See ILO, Global Employment Trends for Youth (2004), p. 8, Table 4. cess and providing the necessary support toTechnic al and Voc ational Educ ation and Training and the Labour Market 11
in Development Cooperation
enable skilled workers to find suitable jobs ● MDG 8, target 16 explicitly calls for the
and assisting employers to find skilled staff. development and implementation of strat-
egies for decent and productive work for
● access to productive employment for as youth. Young people‘s access to productive
many people as possible is a key factor for employment is particularly influenced by
income distribution and participation by technical and vocational education and
broad sections of society in economic training and targeted labour market policy
growth 8. economic growth can only contri- parameters and measures.
bute to poverty reduction and sustainable
development if it results in more people, ● In the first of its priority areas of action
especially the poor, finding productive defined in the Programme of Action 2015,
work which offers a decent wage. Needs- the german government emphasises the
based training is often required in this importance of boosting the economy and
context. technical and vocational educa- enhancing the active participation of the
tion and training and labour market mea- poor. as the action envisaged, the german
sures are therefore key elements of devel- government will support technical and
opment cooperation aimed at pro-poor vocational education and training and
growth. employment opportunities for the poor,
especially for young people.
the relevance of technical and vocational edu-
cation and training and labour market policy ● MDG 3 and the Programme of action 2015,
measures for the achievement of the Millennium priority area 15, make it clear that technical
Development Goals (MDgs) is especially appar- and vocational education and training and
ent from the following MDgs and priority areas of labour market policy must make a contri-
action defined in the German government‘s Pro bution to women and men participating in
gramme of Action 2015: wage employment on the basis of equality
(see MDg 3, indicator 11: Share of women in
● Facilitating more people‘s access to pro- wage employment in the non-agricultural
ductive employment and a decent wage sector).
plays a key role in achieving MDG 1, target 1 9.
this access, especially for poor and disad- ● Core labour standards must be upheld
vantaged demographic groups, must be in all labour market policy measures (see
improved, firstly through technical and Programme of action 2015, priority area of
vocational education and training and action 7) 10.
labour market policy measures, which are
dealt with in this Strategy Paper, and sec- ● Better employment and income are also
ondly by creating new jobs, a topic which is key prerequisites for the sustainable
beyond the scope of this paper. achievement of MDgs 2-7, for only on this
The World Bank estimates that labour provides between two-thirds and 10 For information on specific measures to promote compliance with
three-quarters of total income of poor households (Pro-Poor Growth in core labour standards, see the BMZ Special mentioned in Footnote 2.
the 1990s: Lessons and Insights from 14 Countries, Operationalizing Pro-
Poor Growth research programme, June 2005).
MDG 1: Eradicate extreme poverty and hunger; Target 1: Halve,
between 1990 and 2015, the proportion of people whose income is less
than one dollar a day.12 Technic al and Voc ational Educ ation and Training and the Labour Market
in Development Cooperation
� building capacity for the development of human
resources13. The German government was a fer-
vent champion of both these declarations.
2.2 Starting conditions in partner countries
The dialogue on redefining the roles of the
state, the private sector and civil society, which
has arisen as a corollary of globalisation, has in
many places proved to be a driving force for
reform endeavours in the area of technical and
vocational education and training and the labour
market as well. The debate about the progressive
reduction of the state‘s role to regulatory func-
tions, the involvement of the social partners and
civil society groups in implementing technical
and vocational education and training and
labour market policy (e.g. in national technical
and vocational education and training and
employment agencies with stakeholder represen-
tation on the basis of parity) and compliance with
the principle of subsidiarity in the state‘s actions
are all gathering pace in many partner countries.
The recognition that labour market policy mea-
sures are required in some scenarios in order to
bridge the gap between employability and
productive employment, and that these mea-
sures should not only take account of formal
employment, is reflected in a growing demand
for integrated support in this area.
In implementing these reforms, technical and
vocational education and training systems and
active labour market policy face a problem: to
contribute to reducing unemployment and
underemployment, to satisfy the high social
demand for technical and vocational education
and training, and to respond adequately to the
11 BMZ Position Paper: “Anchor Countries – Partners for Global Develop- 13 United Nations: Report of the International Conference on Financing
ment”, December 2004, p. 1 and 9. for Development, Monterrey, Mexico, 18-22 March 2002, p. 7.
12 United Nations: Report of the World Summit on Sustainable Develop-
ment, Johannesburg, South Africa, 26 August – 4 September 2002, p. 3.Technic al and Voc ational Educ ation and Training and the Labour Market 13
in Development Cooperation
rapidly growing demands of modern economic or support the transition from vocational
sectors. in many cases, these countries face struc training into productive employment
tural challenges as well: are – where they exist – often inefficient.
Employment and advisory organisa
● in most partner countries of german devel- tions often lack any service orientation or
opment cooperation, a key feature of the customer focus. there are still labour sup-
labour markets is segmentation between ply and demand gaps, and analysis of both
urban and rural, modern and traditional, sides is poor; the result is a lack of efficiency
and formal and informal sectors. there in the placement services.
is little transparency for job-seekers or
employers. ● Often, only initial vocational training
is subsumed within the technical and
● the steadily increasing number of young vocational education and training sys-
people reaching working age, shrinking tem. in many cases, it is primarily geared
employment opportunities in the public towards achieving or cementing a social
sector, intensifying competition for jobs in status for the trainees and their families
stagnating organised labour markets and, and towards accessing tertiary education.
in some cases, over-regulation in the for- access to productive employment is not a
mal sector mean that a growing number priority. Rigid entry conditions and inflex-
of people are working on a self-employed ible learning locations and times create
or employed basis in the informal sector, barriers to access for marginalised social
and in insecure employment conditions groups. Funding for this type of training
here and elsewhere. has become a problem in many places.
● in some partner countries, disproportion- ● Continuing professional development/
ately high growth in modern labour mar- upskilling is often only provided by major
ket segments has generated a demand for companies for their own purposes. Very
highly skilled workers which often cannot few countries perform any functions in this
be satisfied. Furthermore, in countries with area which could enhance transparency (e.g.
little or no employment growth, a substitu comparability of qualifications) and quality
tion of lowskilled workers by better quali- assurance. the same applies to retraining.
fied staff can be observed. Low-skilled and the importance of lifelong learning for par-
informal-sector workers are more exposed to ticipation in the knowledge society and for
cyclical changes and often have no resources the labour market‘s changing needs is only
or access to funding for upskilling. in some gradually being recognised.
asian countries in particular, labour migra
tion models are increasingly being debated ● the overlap of institutional competen
at political level, the aim being to reduce cies14 which can sometimes be observed
the burden on the national labour markets offers potential for efficient linkage
through the “export” of skilled workers. between technical and vocational educa-
● Labour market information systems and
14 In a number of countries, the ministry of labour, which is generally
information about informal labour mar- responsible for labour market policy, is also responsible for non-formal
kets often do not exist or are inadequate. vocational training, whereas the responsibility for formal technical
and vocational education and training often lies with the education
Structures and mechanisms which regulate ministry.14 Technic al and Voc ational Educ ation and Training and the Labour Market
in Development Cooperation
tion and training and labour market policy especially at times when there is great pres-
measures at various levels. in most cases, sure to reform. This has an impact on the
however, a lack of human and financial funding of services whose delivery is the
capacities and inflexible structures prevent responsibility of the state. At the same time,
this potential from being tapped. the situa- reforms geared towards the decentralisa-
tion is exacerbated by the fact that in many tion or privatisation of services run the risk
partner countries, constrained public of failure as the resources required for this
budgets slow down adaptation processes, process are not secure.
3 Objectives
The overarching goal of German development improving their access to formal business cycles
cooperation is sustainable poverty reduction and are priorities in this context.
the achievement of the MDGs. The objective of
all measures undertaken in the area of techni This defined objective directly reflects the impor-
cal and vocational education and training and tant role played by productive employment and
the labour market is to make a measurable con- therefore income security in successful poverty
tribution to safeguarding and increasing produc- reduction, in line with the MDGs and the Pro-
tive pro-poor employment in developing, newly gramme of Action 2015 (see Section 2.1 for a more
industrialising and transition countries. To this detailed discussion). It also conforms with the cri-
end, interaction and synergies between labour terion of strengthening employment-oriented
market policy and technical and vocational edu- growth processes by improving competitiveness
cation and training should be utilised in a tar- in partner countries, which applies to the priority
geted way. Improving the employability and area of sustainable economic development as a
income situation of poor social groups and whole.Technic al and Voc ational Educ ation and Training and the Labour Market 15
in Development Cooperation
4 Experiences and opportunities
4.1 Cooperation at multilateral and EU level 15 including: a recognition of technical and voca-
tional education and training as a component
Most donors‘ programmatic statements focus of lifelong learning; need for permeability in all
either on technical and vocational education and training courses; needs orientation, employment
training (often as a component of education in a relevance and access for all; importance of voca-
general sense) or on labour market policy mea- tional training for a strong civil society; involve-
sures. By contrast, the International Labour Orga- ment of key civil society actors in decision-mak-
nization (ILO) promotes a holistic view, for its ing processes; and an increasing role for private
recommendations link support for the reform of vocational training providers. However, although
national technical and vocational education and consensus has been reached at programmatic
training systems with employment and labour level, further harmonisation is required in the
market policy measures. The OECD Jobs Strategy context of implementation.
adopted by the Organisation for Economic Co- Controversy surrounds the debate about the
operation and Development (OECD) and the extent to which technical and vocational educa-
Employment Guidelines established by the Euro- tion and training is a public good. In contrast to
pean Union (EU) also emphasise the importance the policy approach adopted by the World Bank,
of labour market and education policy measures. which presupposes the superiority of market
forces in resource allocation, in technical and
Technical and vocational education and training vocational education and training and education,
German development cooperation – mindful of
There has been a shift of perspective in the the contribution made by technical and voca-
development cooperation undertaken in the tional education and training to a strong civil
field of technical and vocational education and society – regards both initial vocational training
training in recent decades: a more input-oriented and some aspects of non-formal vocational train-
stance on the part of donors – involving substan- ing as a public good.
tial investment in infrastructure or curriculum
development, for example – has now given way Labour market policy
to a greater focus on the impact of technical and
vocational education and training on dependent The ILO Conventions and Recommendations
and non-dependent employment. In addition, constitute the most important raft of interna-
target groups in the informal sector, a broader tional rules for formal labour markets.
range of partner organisations, and non-formal So far, however, many of the labour market policy
types of vocational training provision are now recommendations adopted by the ILO and other
included. The Working Group for International multilateral organisations have only been imple-
Cooperation in Skills Development (see Annex 4), mented to a limited extent in the developing
set up in 1996, has held regular consultations on countries due to a lack of institutional capacities.
aspects of technical and vocational education and The Poverty Reduction Strategy process, launched
training reform, thus facilitating a convergence in the late 1990s in the context of the debt relief
of views at programmatic level on key issues, initiative (HIPC Initiative), only touched on the
link between poverty and employment at first:
15 For a more detailed overview, see Annex 4. labour market measures were mainly confined to16 Technic al and Voc ational Educ ation and Training and the Labour Market
in Development Cooperation
their (passive) function of social protection. ● supporting partnerships between the state,
However, the following common trends can the private sector and civil society through
now be observed in the policies pursued by mediation aimed at clarifying roles and
multilateral donors: recognition of the impor- through organisational development in
tance of labour market institutions for effective stakeholder institutions,
matching or intermediation between labour sup-
ply and demand; need to collect, collate and eval- ● an understanding of “technical and voca-
uate labour market information; involvement of tional education and training as a service”
the informal sector and the promotion of self- and the embedding of the subsidiarity prin-
employment; decentralisation of labour market ciple in technical and vocational education
policy tasks; need for more intensive monitoring and training systems,
of employment impacts; involvement of the
social partners in developing and implementing ● linkage between technical and vocational
labour market policies. education and training and technology
transfer in the modern and the traditional
sector,
4.2 German bilateral cooperation
● inclusion of non-formal vocational train-
Technical and vocational education and train ing strategies as well as strategies aimed
ing at informal-sector target groups, and work
at the interface with the informal sector in
For many years, german development coopera- order to formalise vocational training (e.g.
tion has pursued a systemic multilevel approach through recognition of informally acquired
to development cooperation in the field of techni- skills and abilities).
cal and vocational education and training, link-
ing it – depending on conditions in the coopera- initially, german development cooperation was
tion country – with measures in the areas of basic closely modelled on the structural features of ger-
education, economic development or financial many‘s dual system of technical and vocational
services, for example. Despite the relatively low education and training. However, the necessary
volume of funding available to german develop- parameters (e.g. a strong economic system; scope
ment cooperation compared with some multilat- to plan long-term investments in training, and
eral donors, it has thus positioned itself as a pio thus the business sector‘s willingness to take on
neer, in conceptual terms, in the multilateral and responsibility and make its contribution to tech-
bilateral donor community. among the bilateral nical and vocational education and training) do
donors, Germany leads the field with its technical not exist in this form in most partner countries
and vocational education and training portfolio, and are almost impossible to establish. in order
and has done so for many years. Key factors deter- to fulfil the requirements for pro-poor growth
mining its pioneer role include: and sustainability, german development coop-
eration in the area of technical and vocational
● broad experience in the provision of advice education and training therefore explicitly builds
on policy formulation, policy implementa- on the systems and parameters already in place
tion through strategies aimed at systemic and relies on progressive optimisation of exist-
reform, and feeding the experience gained ing structures through the gradual incorpora-
at target group level into policies and strat- tion of key attributes of the german reference
egies, system. they include structural aspects such asTechnic al and Voc ational Educ ation and Training and the Labour Market 17
in Development Cooperation
models of mixed financing and cooperative deci-
sion-making between the state and the private
sector at national, regional and/or local level, but
also methodological and didactic aspects such
as work process orientation and the integrative
development of key capabilities. Since the early
days of development cooperation in the field of
technical and vocational education and train-
ing, studies have regularly been carried out to
track the career development of former trainees.
Such studies are a key instrument in monitor
ing the employment impact of technical and
vocational education and training. This instru-
ment has proved suitable for data collection and
analysis in cases of moderate complexity. In many
cases, however, there may be a gap in the infor-
mation needed to determine the precise correla-
tion between increased employability and actual
employment, e.g. if political or economic condi-
tions dramatically change. To enhance its effec-
tiveness, this form of impact monitoring must
therefore be embedded in a more comprehensive
strategy for labour market analysis and must
include findings on the impacts on different tar-
get groups, e.g. men, women, the poor.
Labour market policy
Unlike technical and vocational education and
training, labour market policy currently does
not exist as a separately defined field of assistance
in German development cooperation. Nonethe-
less, a number of labour market policy projects
have been implemented, primarily in the transi-
tion countries of South-East Europe and Central
Asia. In thematic terms, these projects can gener-
ally be divided into three project/programme
types:
(1) Promoting institutional reforms, espe-
cially the development of labour adminis-
trations/employment services, decentrali-
sation of labour market organisations, and
staff training;18 Technic al and Voc ational Educ ation and Training and the Labour Market
in Development Cooperation
creation of new jobs cannot compensate for the have carried out structured training needs ana-
loss of old jobs, as is still the case in many transi- lyses or undertaken studies to track former train-
tion countries. ees‘ career development. Some have included ele-
ments of vocational guidance or counselling,
Within the framework of the priority area of sus- generally delivered by technical and vocational
tainable economic development, pro-poor growth education and training agencies. Conversely,
and therefore employment impacts are key indica- training measures have also been integrated into
tors of competitiveness. A comprehensive approach labour market policy projects. in the majority of
assigns an intermediary function to labour cases to date, this has merely entailed the – not
market policy measures, between technical and always systematic – integration of individual
vocational education and training and the private instruments from one assistance approach into
sector, in order to safeguard employment impacts, the other. these experiences form the basis for a
especially in light of previous experience. more far-reaching systematic linkage between
strategies and measures pursued in the develop-
Linkage of technical and vocational education ment cooperation undertaken in technical and
and training and labour market policy measures: vocational education and training with those
being undertaken in active labour market policy,
In the past, numerous technical and vocational as advocated in this Strategy Paper and described
education and training projects/programmes in detail in Section 5.2.1.Technic al and Voc ational Educ ation and Training and the Labour Market 19
in Development Cooperation
5 Implementation of the Strategy Paper
5.1 Target groups and partners ● institutions involving the social partners
with representation on the basis of parity,
The target groups at individual level are: e.g. national technical and vocational edu-
cation and training and employment agen-
● school-leavers and school drop-outs; cies;
● job-seekers and the underemployed; ● business organisations such as the cham-
bers of commerce and associations whose
● poorly skilled workers in the formal and involvement and support help ensure that
informal sectors; training meets the needs of the private sector;
● owners of micro, small and medium-sized ● private, public-sector and semi-autono-
enterprises (MSMes) in particular. mous institutions, vocational training
providers and employment and advisory
Special priority must be given to young people, services in the labour market;
women and poor demographic groups. the
principle of non-discrimination must always be ● companies as stakeholders in the delivery of
respected, also in relation to minorities and per- vocational training.
sons with limited capacity to earn a living.
in general, cooperation is undertaken with the
Target groups at institutional level are man- group of intermediaries. Direct cooperation with
agement staff and subject specialists in the inter- the target groups at individual level takes place in
mediary and partner organisations listed below. some cases in labour market policy projects and in
the aim is to enable them, through the provision pilot projects set up to trial training strategies.
of appropriate further training and advisory ser-
vices, to perform their functions more effectively,
drive forward processes of change pro-actively, . Strategies and instruments
and act as multipliers.
5.2.1 General directives
Intermediary and partner organisations are:
the following principles and approaches guide
● at governmental level, the relevant line action in this area:
ministries, generally the education minis-
try and/or labour ministry, and their subor- ● Impact orientation: strategies and proj-
dinate structures (see footnote 14); ects should make a direct or indirect con-
tribution – verifiable on the basis of expe-
● at regional and local level, the various rience, at the least – to safeguarding and
local authorities, provided that they are increasing productive employment and
equipped with appropriate competencies thus to reducing poverty in line with the
and have the financial scope to implement MDgs and the Programme of action 2015
the measures; (see 2.1).20 Technic al and Voc ational Educ ation and Training and the Labour Market
in Development Cooperation
● Partnership principle; donor harmoni- ● During the planning processes (appraisal
sation; “joined-up development coop- of new projects/phases), it must generally
eration”: in line with the principles estab- be ascertained, together with the partner,
lished in the Paris Declaration on Aid Effec-
tiveness 1, donors must align their support, ❍ whether technical and vocational edu-
their strategies and programmes with the cation and training and/or labour mar-
partner countries‘ national development ket projects are most appropriate in
strategies and coordinate their actions. As terms of this Strategy Paper;
part of “joined-up development coopera- ❍ which relative weight is to be assigned
tion”, the German implementing agencies to each of these two areas (TVET and
cooperate intensively, each bringing their labour market) and what should be
comparative strengths to bear. their particular focus;
❍ which MDG-relevant results can and
The following thematic directives are of general should be achieved.
importance for the area of technical and voca-
tional education and training and labour market Here, the full range of strategies and instruments
and must be taken into consideration and applied described in 5.2 should be outlined to the partner.
as appropriate 1:
Table 1: Criteria for Appraisal:18
Regular case: Partner is interested
Partner is interested in cooperation in the areas of technical and vocational education in cooperation in
and training (TVET) and/or labour market policy (LMP) areas other than sus-
tainable economic
development, or in
occasional coopera-
tion on specific as-
pects of TVET or LMP
(1) (2) (3) 4) ) ()
Appraisal to Stocktaking Labour Function- Demand of Assessment Strengths/ Relevant informa-
identify (gender- on unemploy- supply/skills ality of enterprises of institu- weaknesses tion from (1) to (),
differentiated) ment/under- level „matching“ for skilled tional poten- of existing industry-/sector-spe-
information on: employment between workers tial [unless TVeT sys- cific if appropriate
and labour supply and already cov- tems/
laws and demand ered in (3)] components
regulations
16 Declaration by 90 countries, the European Commission and 26 multi- 18 The thematic scope, methodology and expenditure involved in the
lateral organisations and civil society organisations; the outcome of appraisal vary:
the High Level Forum on “Joint Progress toward Enhanced Aid Effec- l nationally or regionally, depending on the scope of the planned
tiveness - Harmonisation, Alignment, and Results” (Paris, 28 February – projects;
2 March 2005). l quantitative analysis, where data are available; otherwise, qualitative
analysis or a combination (e.g. documented surveys of companies,
17 For post-conflict situations and natural disasters, different directives
vocational training providers and labour market institutions);
may apply; see Section 5.2.4. l spending must be in proportion to the planned project volume.
The data situation in the partner countries and the time available for
project planning often do not permit any comprehensive analyses to be
carried out during the planning phase. In this case, during the ongoing
project, conditions should be put in place for more precise analyses as
the basis for the evaluation of impacts already achieved and planning of
any follow-up phases.Technic al and Voc ational Educ ation and Training and the Labour Market 21
in Development Cooperation
● Depending on other results of this appraisal, ment through all measures undertaken
in the area of core competency, the aim in the core competency area (see Chapter
should be to adopt a systematic multilevel 3) – and the impacts of individual compo-
approach as well as approaches which nents of the measures. Partner institutions
integrate technical and vocational edu should be supported in establishing moni-
cation and training and labour market toring systems to ensure that these systems
policy. according to the needs and inter- are relevant, beyond the project level, to
ests of the cooperation country and the the work of the institutions as a whole.
suitability of the partner structures, labour the impact monitoring should provide for
market policy measures should be embed- gender differentiation, and it should also
ded in development cooperation in the consider how changes in employment and
area of technical and vocational education income impact on poverty reduction and
and training, or education and training the achievement of the MDgs.
measures embedded in labour market
policy projects. ● targeted efforts must be made to promote
access for young people and equal access
● alongside the formal labour market, infor for women to productive employment and
mal labour markets should be integrated a decent wage, especially in the non-agri-
and poor and disadvantaged target groups cultural sector.
specifically catered for.
● Other cross-sectoral themes such as the
● great importance is attached to coordina dissemination of information and ideas on
tion between technical and vocational changing behaviour in the context of HiV /
education and training policy and aiDS and towards an environmentally sus-
labour market policy, but also with other tainable economy, as well as crisis preven-
relevant policy areas, e.g. general educa- tion and peace building, must be taken into
tion policy, employment and economic pol- account in the analysis, planning, imple-
icy. the social partners should be involved mentation and impact monitoring of tech-
as far as possible. nical and vocational education and train-
ing and labour market policy measures.
● Consideration must be given to concepts of
quality management by partner organi
sations. the provision of support to estab- .. Strategies and instruments for
lish or reinforce the organisational and cooperation in the area of technical and
personnel capacities required for efficient vocational education and training1
quality management should be an integral
element of every measure. the development cooperation undertaken by
germany in the area of technical and vocational
● Impact monitoring which has informa- education and training is based on the lifelong
tive value, but which is also tailored to the learning approach. Building on its experience
available resources, must be integrated and international reputation, germany intends
into all projects. this applies to the moni-
toring of employment impacts overall –
espcially as regards the goal of safeguard- 19 For further information, see the BMZ Position Paper “Berufsbildung in
der EZ” (Technical and vocational education and training in develop-
ing and increasing productive employ- ment cooperation), Bonn, March 2005.22 Technic al and Voc ational Educ ation and Training and the Labour Market
in Development Cooperation
to deepen its activities in the following areas in ● Technical and vocational education and
future: training for specific segments of the
labour market: specific situations require
● Technical and vocational education tailor-made strategies. Development coop-
and training for the formal sector: this eration in the field of technical and voca-
comprises initial vocational training, post- tional education and training takes this
secondary training relevant to and related into account, e.g. in its projects in rural
to the workplace, further training and regions. Here, what is needed are strate-
retraining. it may also include vocational gies which specifically respond to the living
preparation via the general education conditions of the subsistence farming com-
system if this is not already being delivered munities; these conditions include season-
by other actors. it also takes account of the ally varied but generally low mobility, espe-
need for permeability within the system cially among women, sparse population
for people who have acquired knowledge, density in some cases, poor access to basic
skills and abilities on an informal basis, but education, and remoteness from economic
who would not gain access to the formal growth centres. Technical and vocational
labour market without certification. education and training and counselling
must provide support in order to help con-
● Vocational training for the informal nect the rural regions to industrial growth
labour market: women and men who centres. In buoyant economic sectors and
have to earn a living in the informal sector regions, development cooperation in the
require training services which are pre- area of technical and vocational educa-
cisely tailored to their circumstances and tion and training prioritises technology
sphere of life, as well as appropriate guid- transfer. Training strategies are developed
ance and counselling. the inclusion of the in other priority areas of German develop-
target groups at the planning stage and ment cooperation (e.g. health, or water
a focus on disadvantaged groups and on resources and environment) as required.
micro, small and medium-sized enterprises
(MSMes) require a tailor-made approach. Close coordination mechanisms between employ-
For informal markets in particular, train- ers and public-sector and private training pro-
ing should not only aim to prepare workers viders reinforce the trends that emerge from the
for dependent employment; it should also monitoring of (partial) labour markets, and facili-
facilitate a move into self-employment. in tate swift and often decentralised adaptation of
this context, the linkage of training with training services to the needs of the economy (see
business start-up advice and an appropri- Annex 3 on the training market).
ate range of financial services (microfi-
nancing) are prerequisites for the employ- In this context, German development cooperation
ment relevance of the training measures. does not pursue one specific systemic approach. Its
Here too, besides safeguarding and increas- measures take account of the strengths of exist-
ing income, technical and vocational ing national technical and vocational education
education and training contributes to the and training systems and the needs arising from
empowerment of these target groups as their integration into the regional context.
part of civil society.Technic al and Voc ational Educ ation and Training and the Labour Market 23
in Development Cooperation
Principles development of teaching/learning materials, as
well as issues relating to the funding of technical
the following principles are fundamental for ger- and vocational education and training. Bilateral
man development cooperation: german development cooperation specialises
mainly in those spheres of international technical
● Practice and action orientation through and vocational education and training coopera-
linkage between school-based, in-company tion where there is a high demand for sharing
and other real-world learning locations, experience of the german system and where the
and the integration of the social partners bilateral character of cooperation is maintained.
into the development of standards, curri- these include, in particular:
cula and the examination system.
● linkage of policy formulation with the
● Work process orientation of technical and establishment of frameworks at the meso
vocational education and training mea- level, with the results of pilot projects
sures, enabling learners to assess the rel- feeding into the policy and normative level.
evance of their actions to production or
service processes, develop responsibility ● Partnerships between the state, the pri
and contribute to quality assurance. vate sector and civil society. Many years
of experience with cooperative training
● Promoting key capabilities, enabling the models for the formal and informal sector
individual to take control of their own work mean that german development coop-
situation and participate actively in social eration is ideally situated to integrate the
processes. private sector at all levels, from political
and strategic decision-making to techni-
in countries and regions with a strong focus on cal and vocational education and train-
competence-based modular training systems, it ing delivery. this guarantees that train-
is especially important to incorporate these fea- ing is closely aligned to the needs of the
tures into the training systems. labour market, ensures the efficient use of
resources, and facilitates the expansion of
Priorities the resource base. the participation of civil
society (local authorities, parents, trainees
When setting priorities for cooperation in the of both sexes) in decisions on the form and
area of technical and vocational education and content of technical and vocational educa-
training, it is possible to select from the following: tion and training helps establish a balance
policy formulation and regulatory instruments, between economic and social interests and
training frameworks (standards, occupational supports the state in maintaining techni-
profiles, curricula, certification, and accredita- cal and vocational education and training
tion of implementing organisations) and their – especially initial vocational training – as a
practical application in education and training public good.
measures. Other issues include the roles and
forms of cooperation undertaken by various ● Supporting decentralisation and privati
actors and their training and further training, sation and, as a corollary, the state‘s with-
research in the field of technical and vocational drawal from the practical delivery and, to
education and training, appropriate and if neces- some extent, the structural development
sary gender-differentiated infrastructure, and of technical and vocational education andYou can also read
