Technical and Vocational Education and Training and the Labour Market in Development Cooperation - StrategieS 140

 
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                                                             28
Technic 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 to
Technic 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 to
16                         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 as
Technic 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 and
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