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To appear inThe Handbook on Educational Research in the Asia Pacific Region
(eds. John P Keeves and Rye Watanabe, Kluwer Academic Publishers 2002)
VOCATIONAL EDUCATION AND TRAINING IN ASIA
JANDHYALA B G TILAKNational Institute of Educational Planning and Administration17B Sri Aurobindo Marg, New Delhi 110016, India
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The Handbook on Educational Research in the Asia Pacific Region
(eds. John P Keeves and Rye Watanabe, Kluwer Academic Publishers 2002)
VOCATIONAL EDUCATION AND TRAINING IN ASIA
JANDHYALA B G TILAK
National Institute of Educational Planning and Administration
17B Sri Aurobindo Marg, New Delhi 110016, India
E-mai: HYPERLINK "mailto:jtilak@vsnl.com" jtilak@vsnl.com [or]
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The Handbook on Educational Research in the Asia Pacific Region(eds. John P Keeves and Rye Watanabe, Kluwer Academic Publishers 2002)
VOCATIONAL EDUCATION AND TRAINING IN ASIA
JANDHYALA B G TILAK
National Institute of Educational Planning and Administration
17B Sri Aurobindo Marg, New Delhi 110016, India
15
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The Handbook on Educational Research in the Asia Pacific Region
(eds. John P Keeves and Rye Watanabe, Kluwer Academic Publishers 2002)
VOCATIONAL EDUCATION AND TRAINING IN ASIA
JANDHYALA B G TILAK
National Institute of Educational Planning and Administration
17B Sri Aurobindo Marg, New Delhi 110016, India
21
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22/63
E-mai: HYPERLINK "mailto:jtilak@vsnl.com" jtilak@vsnl.com [or]
j_tilak@hotmail.com
[Key Words: Costs; Curriculum; Economic Development; Financing; Human
Capital general, specific; Inequality; Private Sector; Public Expenditure; Rate of Return]
1. INTRODUCTION
General or vocational education? This is a tough choice in many developing
countries (Yang, 1998, p. 289). In the human capital framework, general education creates
general human capital and vocational and technical education specific human capital(Becker, 1964). The former is portable across ones life and from job to job, while the later
one is not and hence many advocate general education, as more suitable to the flexible labour
force that can change task and even the type of work; but the later one has an advantage,
imbibing specific job-relevant skills, that can make the worker more readily suitable for a
given job and would make him/her thus more productive. Hence both are important, and
education systems in many countries therefore include both general and vocational streams of
education in varying proportions.
Countries in the Asian region have placed varying emphases on general and vocational
education, depending upon several historical, social, economic and political considerations.
While general secondary education is somewhat of homogenous nature, there is a diverse
pattern of provision of vocational and technical education and training
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The Handbook on Educational Research in the Asia Pacific Region
(eds. John P Keeves and Rye Watanabe, Kluwer Academic Publishers 2002)
VOCATIONAL EDUCATION AND TRAINING IN ASIA
JANDHYALA B G TILAK
National Institute of Educational Planning and Administration
17B Sri Aurobindo Marg, New Delhi 110016, India
E-mai: HYPERLINK "mailto:jtilak@vsnl.com" jtilak@vsnl.com [or]
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40To appear inThe Handbook on Educational Research in the Asia Pacific Region
(eds. John P Kee
ves and Rye Watanabe, Kluwer Academic Publishers 2002)
VOCATIONAL EDUCATION AND TRAINING IN ASIA
40
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41/63
JANDHYALA B G TILAK
National Institute of Educational Planning and Administration
17B Sri Aurobindo Marg, New Delhi 110016, India
E-mai: HYPERLINK "mailto:jtilak@vsnl.com" jtilak@vsnl.com [or]
j_tilak@hotmail.com
[Key Words: Costs; Curriculum; Economic Development; Financing; Human
Capital general, specific; Inequality; Private Sector; Public Expenditure; Rate of Return]
1. INTRODUCTION
General or vocational education? This is a tough choice in many developing
countries (Yang, 1998, p. 289). In the human capital framework, general education creates
general human capital and vocational and technical education specific human capital
(Becker, 1964). The former is portable across ones life and from job to job, while the later one
is not and hence many advocate general education, as more suitable to the flexible labour force
that can change task and even the type of work; but the later one has an advantage, imbibing
specific job-relevant skills, that can make the worker more readily suitable for a given job and
would make him/her thus more productive. Hence both are important, and education systems in
many countries therefore include both general and vocational streams of education in varying
proportions.
Countries in the Asian region have placed varying emphases on general and vocational
education, depending upon several historical, social, economic and political considerations.
While general secondary education is somewhat of homogenous nature, there is a diverse
pattern of provision of vocational and technical education and training
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5454545To appear in
The Handbook on Educational Research in the Asia Pacific Region
(eds. John P Keeves and Rye Watanabe, Kluwer Academic Publishers 2002)
VOCATIONAL EDUCATION AND TRAINING IN ASIA
JANDHYALA B G TILAK
National Institute of Educational Planning and Administration
17B Sri Aurobindo Marg, New Delhi 110016, India
45
8/8/2019 Vocational Technical Educat
46/63
E-mai: HYPERLINK "mailto:jtilak@vsnl.com" jtilak@vsnl.com [or]
j_tilak@hotmail.com
[Key Words: Costs; Curriculum; Economic Development; Financing; Human
Capital general, specific; Inequality; Private Sector; Public Expenditure; Rate of Return]
1. INTRODUCTION
General or vocational education? This is a tough choice in many developing
countries (Yang, 1998, p. 289). In the human capital framework, general education creates
general human capital and vocational and technical education specific human capital(Becker, 1964). The former is portable across ones life and from job to job, while the later
one is not and hence many advocate general education, as more suitable to the flexible labour
force that can change task and even the type of work; but the later one has an advantage,
imbibing specific job-relevant skills, that can make the worker more readily suitable for a
given job and would make him/her thus more productive. Hence both are important, and
education systems in many countries therefore include both general and vocational streams of
education in varyingproportions.
Countries in the Asian region have placed varying emphases on general and vocational
education, depending upon several historical, social, economic and political considerations.
While general secondary education is somewhat of homogenous nature, there is a diverse
pattern of provision of vocational and technical education and training
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vocational education. After all, poor and inadequate investments cannot produce higher
returns (Tilak, 1988a).
It appears that public expenditures on VET are not particularly high in East Asian
countries, but private sector expenditures on training could be high, on which unfortunately
no detailed and comprehensive data at macro level are readily available. For example,
training is provided by enterprise in Singapore through the operation of the Skill Development
Fund established in 1979 and financed through a levy on employers amounting to two per cent of
salaries of all employees earning less than S$750 per month (Haq and Haq, 1998, p. 102). It is
obligatory for the companies in Korea to finance public vocational and training programmes
(Lijima and Tachiki, 1994). Enterprise-based training is the most important form of VET in
Japan.
Besides the scarcity of public resources, governments also face confusion on the efficacy ofVET programmes, which deter them from making required investments in VET. Available
evidence on rates of return to education in countries does not indicate any advantage vocational
education will provide compared to general education. For example, Chung (1995, p. 177)
reported 12 studies showing higher returns to vocational education than to general secondary
education and ten studies otherwise; and five studies that yielded no clear results. Though
there are certain well known problems with the estimates of rates of return to education, and a
few other problems highlighted specifically in the context of returns to vocational education
(e.g., Bennell, 1995; Bennell and Segerstrom, 1998), nevertheless, no conclusive evidence
exists on the economic superiority of vocational education over general education (see also
Tilak, 1988a, b).
Table 4Social Rates of Return to Vocational versus General Secondary
Education
Country Year GeneralVocational/Technical
Cyprus 1975 10.5 7.41979 6.8 5.5Taiwan 1970 26.0 27.4South Korea 1981 9.0 8.1Thailand 1970 10.0 8.0
1990 11.4 6.7Philippines 1960s 21.0 11.0Indonesia
1978 19.0 23.61978 32.0 18.0
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1982 23.0 19.01986 19.0 6.01986 12.0 14.01986 11.0 9.0
Jordan 1960s 6.7 1.6Source: Psacharopoulos (1994); Tilak (1994, 2001); Bennell (1995,
1998)
Table 4 presents estimates of rates of return on this problem in seven Asian countries. Though
they are somewhat dated, it can be noted that except in Taiwan where the difference is small, in
general, vocational education does not pay as much as general secondary education. After all,
costs of vocational education are extremely high, but the labor market benefits are not so high
as to compensate for the huge costs. However, if productivity is measured not in earnings, but
in physical terms, and not in relation to costs, some times it is found that workers with VET
may be more productive than those with general academic education (e.g., Min and Tsang,
1990).
Another aspect of confusion for the governments in developing countries is changing policies
of international organisations like the World Bank. World Bank supported VET in many
countries in Asia for a long time. For example, in 1984-85 of the total World Bank lending
for education, one-fourth was meant for VET projects. As stated earlier, World Bank and
Unesco have strongly argued in favour of investing in VET and its rapid expansion for
economic growth. But by the late 1980s, the Bank policies took a -turn on vocationaleducation and strongly favoured investing away from VET (World Bank, 1995). World
Banks investment in VET came down to a meagre three per cent of the total education
lending by 1996 (Bennell and Segerstrom, 1998, p. 271). The frequent -turns of
organisations like the World Bank in case of vocational education (and also manpower
planning, rates of return to education and higher education) have caused considerable
confusion among the governments of the developing countries on the wisdom of investing in
VET. Countries that did not rely on World Bank assistance might not have suffered much.
5. WHERE DO WE GO FROM HERE?
From the review of Asian experience, a few important lessons can be drawn for the
development of VET in developing countries.
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VET is important for economic growth. But the relationship is not linear. So each
country has to decide the extent of VET that has to be developed, depending upon the
level of development and demand for skills. As Foster (1965, p. 153) observed, in the
initial stages technical and vocational instruction is the cart rather than the horse in
economic growth, and its development depends upon real and perceived opportunities in
the economy. The provision of vocational education must be directly related to those
points at which some development is already apparent and where demand for skills is
beginning to be manifested. Plans for VET should be preceded by detailed manpower
analyses and forecasts. Though the importance of manpower planning and forecasting
per se, has declined, few doubt the importance of detailed manpower analysis.
Since both general and specific human capital contribute to economic growth, a
balance has to be struck between size of general education and vocational education.
Further, vocational education need not necessarily be purely vocational and technical. It
should also include, like in Japan and Korea, general skills and attributes that are useful
across a wide variety of occupations. This is particularly important in the rapidly changing
economic systems.
As specific human capital development can take place both in formal schools and
also in the firm-based institutions, it may be important to examine which vocational and
technical skills are to be provided in schools and which in the training institutions andenterprise-based organisations.
As vocational education is necessarily expensive, the government should make adequate
allocation of resources for vocational education. Poor investments cannot yield attractive
returns.
Vocational education should not promote inequalities within the educational
system. This requires provision of good quality vocational education and training,
comparable, if not superior to, general secondary education that would avoid suspicions on the
part of the people on the intentions of the government in providing VET. It also requires
effectively linking of vocational education with higher education, so that vocational
education is not perceived as dead-end, with no opportunities to go for higher education.
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Given the experience of many countries in Asia, except Japan, the government has to
take a dominant role in promoting VET. Private sector may not be able to provide good
quality VET.
Lastly, issues relating to VET are not just curriculum questions, nor are they just
economic. They are intricately linked with social, cultural, historical, economic,
technical, and political parameters. Hence formulation of sound and effective policies
and plans of VET requires an inter-disciplinary development approach, treating VET as
an integral part of overall educational planning.
References
Anderson, C.A. and Bowman, M.J. (eds.) (1965)Education and Economic Development. Chicago: Aldine.
Asian Development Bank (1991) Technical and Vocational Education and Training. Manila.
Balogh, Thomas (1969) Education and Agrarian Progress in Developing Countries, In: Hufne, K. and Naumann,J. (eds.)Economics of Education in Transition. Stuttgart: Ernst Klett, pp. 259-68.
Becker, G.S. (1964)Human Capital. New York: National Bureau of Economic Research.
Bennell, P. (1995) General versus Vocational Secondary Education in Developing Countries: A Review of theRates of Return Evidence . IDS Working Paper 23. Sussex, Brighton: Institute of Development Studies.
Bennell, Paul and Sergerstrom, J. (1998) Vocational Education and Training in Developing Countries: Has theWorld Bank Got it Right?International Journal of Educational Development18 (4) (July): 271-87.Blaug, M. (1973)Education and the Employment Problem in Developing Countries. Geneva: International
Labor Office.
Boyd, T.F. and Lee, C. (1995) Educational Need and Economic Advancement: The Role of VocationalEducation in the Republic of China, In: Yee (ed.), pp. 193-210.
Chung, Yue-Ping (1995) Returns to Vocational Education in Developing Nations, In: Carnoy, M. (ed.)International Encyclopedia of Economics of Education . Oxford: Pergamon, pp. 175-81.
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About the Author
Professor Jandhyala B G Tilak is Senior Fellow and Head of the Educational Finance Unit at the NationalInstitute of Educational Planning and Administration, New Delhi. Doctorate from the Delhi School ofEconomics, Professor Tilak had taught in the University of Virginia, Indian Institute of Education and theUniversity of Delhi. He is a Visiting Professor in Econmics at the Sri Sathya Sai Institute of Higher Learning(Prashanti Nilayam). He also lectured in the University of Rochester. An economist of education, Dr Tilak wasalso on the staff of the World Bank, Washington D.C. In addition to several monographs prepared for theUnesco, the IIEP, the World Bank, the UNDP, etc., Dr Tilak's publications include Education for Developmentin Asia (Sage, 1994), Economics of Inequality in Education (Sage, 1987), Educational Planning at Grassroots(Ashish, 1991), Educational Finances in South Asia (UNCRD, 1988), Education and Regional Development,edited (Yatan, 1986), India's Socio-Economic Database, jointly edited (Tulika, 2001) and several research papers
published in professional journals of high repute in the areas of economics, development studies and education.He was the recipient of the prestigious Swami Pranavananda Saraswati National Award of the UGC in Education(1999) for his outstanding scholarly research, instituted by the University Grants Commission, New Delhi.Professor Tilak, a contributor to the International Encyclopedia of Education (Pergamon, 1994), andEncyclopedia of American Educational Research (1992), is also the Editor of the Journal of EducationalPlanning and Administration, and is associated (as a member of the editorial board) with Journal of QuantitativeEconomics, Higher Education Policy (Pergamon), International Journal of Educational Policy Research andPractice (Florida, USA), Compare: Journal of Comparative Education (England), Manpower Journal (India),Perspectives in Indian Education (Vadodara), Asian and African Journal of Economics and Econometrics(Pondicherry) etc. Prof Tilak also served as a Consultant for the World Bank, Asian Development Bank,UNESCO, UNDP, Swiss Development Corporation and several other organisations. He traveled extensively.He is also a member of several official committees on education of the Government of India.
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