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On a Skilling Spree: International
Experiences, National Learnings
A Report on How Countries across the World are Providing
Vocational Education
This skill development innovations report is targeted at improving the policy dialogue and
increasing the intellectual debate on the issue of providing vocational education to the largest
demographic segment of the country – the youth. The report covers the experiences in skill
development of Singapore, Korea, China, Germany, France, Australia and Brazil and describes
various policy initiatives that may be worth considering in our goal to reach the target of 500
million skilled people by 2022. Each country is studied on broad parameters of:
1. Policy and Regulatory Framework
2. Best Practices
3. Certification and Assessments
4. International Collaboration
Report Preparation: This report was prepared by Janak A. Jain, Ekta Jalan, Samapika Sanyal,
Minu Phillip and Shashank Shekhar Rai of the Skill Development team of Youth for Policy and
Dialogue.
Funding: The organisation did not receive any funding whatsoever for the preparation of this
report. It was a voluntary exercise undertaken at the personal expenses of the writers.
It is our constant effort to initiate a variety of research and discussions on the issues of skill
development and we hope that this study helps India in skilling better and the policy makers
to plan better.
Team Skills Development Initiative
Contact: [email protected] or +91 880.063.6386
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Youth for Policy & Dialogue
Youth for Policy & Dialogue is India’s first think tank of young people. The organisation was
formed in 2010 and believes in the fundamental tenets of public policy & dialogue. The
organisation runs four initiatives viz. G20 Research Group, Skill Development Initiative,
Economic & Finance Initiative & Youth Policy Initiative in a non-partisan, independent and
apolitical way. We are a proud affiliate of the G8&G20 Youth Network.
Youth for Policy & Dialogue
India’s First Think Tank of Young People
House No. 885, Sector – 29,
Arun Vihar – Noida (U.P.)
Tel: (91-11) 4248739
Mob: (91-11) 9999428096
Email: [email protected]
Website: www.youthpolicy.in
© 2012 Youth for Policy & Dialogue & Oxfam India
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On a Skilling Spree:
International Experiences,
National Learnings
A Report on How Countries across
the World are Providing
Vocational Education
4
Contents
Title Page No.
Executive Summary Page 5
Singapore Page 8 Policy and Regulatory Framework Page 9 Best Practices Page 10 Certification and Assessments Page 11 International Collaboration Page 13
Korea Page 14 Policy and Regulatory Framework Page 17 Best Practices Page 18 Certification and Assessments Page 20 International Collaboration Page 21
Brazil Page 22 Policy and Regulatory Framework Page 22 Best Practices Page 25 Certification and Assessments Page 25 International Collaboration Page 26
Australia Page 26 Policy and Regulatory Framework Page 28 Best Practices Page 29 Certification and Assessments Page 30 International Collaboration Page 32
Germany Page 33 Policy and Regulatory Framework Page 34 Best Practices Page 35 Certification and Assessments Page 37 International Collaboration Page 39
China Page 40 Policy and Regulatory Framework Page 43 Best Practices Page 44 Certification and Assessments Page 45
France Page 46 Policy and Regulatory Framework Page 47 Best Practices Page 48 Certification and Assessments Page 49 International Collaboration Page 51
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Executive Summary
India today stands at crossroads and as we try to transition from a developing economy to a
developed one, from a soft power to an influential one we face challenges unprecedented
and none bigger than that of managing and channelizing in the right direction the huge
demographic dividend that we have in the form of the largest segment of our population
being comprised of the young people. We need to create new jobs and more than just jobs
we need to create an environment which ensures a workforce skilled to manage more than
just one job, a workforce capable of transitioning between different jobs, a workforce willing
to move forward with newer environments of development. India’s current skilling capacity
stands at 3.4 million people per year while over 12 million people join the workforce every
year. Little surprise then that just over 92 per cent of our workforce is engaged in unorganised
labour. We need a capacity of 15 million to reach our targets. We need better assessment
mechanisms. We need to develop a more robust certification system. We need to involve
international agencies to participate in overcoming what is possibly the greatest skilling
challenge in the history. And to top it all we need a friendlier environment supported by a
steadfast policy paraphernalia. The good news is that we are not the first ones to try skill
development. There are a number of models that exist and countries that have tried different
strategies with varying degree of success. And we may have a lot to learn from their
experiences.
The initial problem, as the international experience shows us, lies in the largely differentiated
and compartmentalised structure of education in India where the mainstream education has
no inter-relation with the vocational training. In India, much like Korea and Singapore, the
vocational training is provided as a mandate by the government with the target group being
the youth that is looking forward to employment as opposed to tertiary education. India has
tried adopting the German dual model by introducing the National Vocational Education
Qualification Framework (NVEQF) but it is too early to comment on the success of the
program as we are still in the pilot stage. But it is very clear that we need to bridge the gap
between the mainstream and vocational education and develop a workforce with a firm
grounding in both. France, for instance, has provided for vocational training on schools
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immediately after high school education and the parallel system of vocational and
mainstream education begins only at the tertiary education level.
But skill development has as much to do with developing a manpower for the future as it has
to do with engaging the current workforce in skilled activities to provide employment for the
unemployed and the semi-skilled. The imperative to promote and bring under the umbrella
of the organised sector thereby lies not just with the government but also with the industry.
Over the last few, owing to the efforts of the NSDC, we have seen a rise in private participation
in skilling but there is need for more industry involvement with greater impetus on in-house
training and developing life skills to enable employees to transition between different jobs
and prepare themselves for future jobs. In Singapore, companies are given incentives
including patent based incentives and quota based incentives to promote in-house training
while in Korea, the government, in order to increase the job competency of the employee,
also introduced support for overseas training. Similarly in Brazil, the System S is highly
privatised with little government intervention and yet it is publicly funded.
Such initiatives, in all the countries we have studied in this report, have also been
accompanied by firm certification and assessment mechanisms. Certification is at the core of
the skill development challenge and having well established mechanisms for the same creates
a platform for qualifying Indian labour at par with the international standards. By 2025, 25
per cent of the world labour force will comprise of Indians and it only stresses the need to
build comprehensive, internationally validated certification mechanisms. Currently, under
NCVT, India has the All India trade Test. This is accompanied by the National Trade Certificate
and National Apprenticeship Certificate. But these accreditations and certifications were not
found to be enough and the NSDC is currently engaged in developing National Occupation
Standards for the Sector Skill Councils. Currently the standards have been developed for the
Telecom Sector, Healthcare and the Rubber Industry. While we try and develop standards for
the rest of the sector skill councils, it would be beneficial to understand how some of the
other countries have developed their standards. This report provides a detailed descriptions
of the studied nations and their certification and assessment mechanisms.
As we move towards a new development paradigm, with increased interaction with our
international partners, there is also a felt need to engage at a larger level with different
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countries and international organisations, to implement best practices. India has recently
signed MoUs with European Union to build on the skill development activities which is in line
with India’s National Skills Policy, 2009. Besides that the German Federal Ministry of
Education and Research runs a program called iMOVE which promotes international
cooperation and supports the initiation of collaborations and business relations in vocational
training and continuing education. There are also talks with Germany over setting of a
National Qualification Framework and adoption of the dual-style training techniques. Besides
this, India also has a collaboration with the United Kingdom called the UK-India Education and
Research Initiative wherein skill development is an important focus area. But there are more
synergies to tap into and this report also details into how many such collaborations have
worked across the world.
This report also has a separate section on all the countries studied titled Best Practices. This
section covers aspects of regulatory framework, pedagogical techniques, incentivisation of
initiatives et al.
It is our hope that this report provides an insight into how some of our current efforts to
promote skill development may be best directed and that it is put to best use by the
stakeholders of the Indian Skill Development Mission.
Shashank Shekhar Rai
Director, Skills Development Initiative
Youth for Policy and Dialogue
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Singapore:
Singapore has been able to utilise its resources to the maximum by linking majorly the skill
development initiatives with the economic development goals of the country. Singapore’s
skill initiatives have strong linkage with its economic development strategies and it has
moulded its national strategies to develop skills carefully according to the need of the
economy. As it is a small nation with population of 5.31 million1, it is relatively easy to
implement quick changes in the initiatives taken. Not only has the government emphasised
on short term skill development courses but the initiatives have a concentration also on long
term skills development programs. There is a specific education policy to guarantee this and
ensure rising employability.
In 2011-12, total employment increased by 121,300, slightly higher than the gains of 115,900
in 2010-11. The bulk of the employment gains came from services sectors, which added a
total of 95,100 workers in 2011. Significant employment gains were registered in other
services (23,800), business services, (22,000), wholesale and retail (15,500), financial and
insurance services (10,600), accommodation and food services (9,700), information and
communications (7,800) and transportation and storage (5,700). The unemployment rate
during the same period fell from 2.2 per cent to 2 per cent. This rate was the lowest recorded
in 14 years. On average, 60,600 residents were unemployed in 2011, including 52,900 citizens.
The corresponding figures in 2010 were 64,800 and 57,700 respectively.
1 Population figures estimated as of June 2012
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Figure 1: Highlights, 2011-12
The overall productivity in 2011-12 increased by 1.0 per cent, significantly lower than the 11
per cent growth in 2010. This was due to lower GDP growth coupled with robust employment
creation. Since the Singapore economy is also largely dependent on its foreign trade, experts
believe the economic downturn in the European countries also played its part in the lower
GDP growth. The nominal average monthly earnings, in the same period, grew by 6.0 per cent,
higher than the 5.6 per cent increase in 2010, on the back of a tighter labour market. The
increase in nominal average monthly earnings was broad-based, with the largest growth seen
in real estate services (9.2 per cent), transportation and storage (7.4 per cent) and finance
and insurance services (6.6 per cent).2
Policy and Regulatory Framework:
Vocational education in Singapore comes directly under the Ministry of Education thereby
promoting a holistic structure of integrated education overseeing both mainstream and
vocational education. There is a tripartite institutional relationship between the 3 bodies
involved in the design and implementation of the policies for vocational education. These
bodies are – The Ministry of Education, The National Institute of Education and the schools
where this education is imparted. The ministry is responsible for developing policies, the NIE
2 http://www.mti.gov.sg
A total increase in employment by
121,300
Unemployment at 2 per cent - lowest in 14
years
Increase in overall productivity by 1 per
cent
Increase in Nominal Average Monthly
Earnings by 6 per cent
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is responsible for research, evaluation and training to impart the education and the schools
form the final executive body involved with training of the students.
Some of the salient features of this institutional framework are below:
Training of prospective teachers is carried out by the NIE but for professional in-service
development of teachers there are various institutions and sources available.
There is a strong focus on universal development of Mathematics, Science and
Technical Skills.
International benchmarking is extensively used as a tool for improvement and to move
up the educational value chain.
There is a confluence of ideas with the staff of the ministry, NIE and the schools
organising regular visits for the review of international best practices and scope of
implementation of those policies.
International best practices have also been adopted for implementing assessment
techniques.
Best Practices from Singapore:
One ITE and Three Colleges’ Governance System: Under this initiative to build a more
responsive VTE system, the overall plan was to regroup existing smaller campuses into three
mega Regional Campuses, renamed as “ITE Colleges”. The ITE (Innovations in Technical
Education) Headquarters continue to oversee the policy formulation and common functional
areas of interest such as curriculum development, student intake, examinations, quality
assurance and consistency of standards throughout the Colleges. The economy of scale has
helped to achieve synergy and resource savings through greater collaborations and yet
promote competition among the Colleges. At the same time, each College built for a full-time
student enrolment of 7000 and headed by a Principal has more autonomy to grow and
specialize in niche areas, thus adding choices and diversity to the programmes.
Hands On, Minds On, and Hearts On: This is the ideology followed to provide students a
holistic college education experience by providing a platform for integration between theory
and practice through coursework, projects, industry partnership, community service and
global education. The hands on part refers to training for a strong foundation in technical
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skills; the minds on part refers to a focus on developing independent thinking and flexible
practitioners who are able to cope with changes; and the hearts on refers to the focus on
developing a passion and code of ethics in the students with respect to their work. The intent
is to produce graduates who are market-relevant, enterprising and adaptable as lifelong
learners in a global economy. The curricular is designed as to provide 70% practical (hands
on) and 30 % theoretical (Minds on) preparation. Students are also trained into different life
long basic personal skills like team spirit, never- give- up attitude, sportsmanship, hard work,
stress management etc.
PEPP Model (Plan, Explore, Practice and Perform): The approach is interactive and process
based. Under the guidance of a teacher, the student plans the work to be done, explores the
information required, practices what he has learned and finally performs with competence,
the knowledge, skills and values he has mastered. Through this approach, the student
acquires three key competencies, namely, technical, methodological and social.
Creative and Innovative Teaching and Learning Environment: With the pervasive use of
Information Technology (IT) in the society and knowledge economy, it is important that
students learn in a rich IT-based environment that better prepares them for the real working
world. It ensures excellent infrastructure as well as availability of competent knowledge
provider. The enriched usage of e- learning platform, is helpful with a competitive
environment.
Certification and Assessment:
The Singapore Workforce Skills Qualifications (WSQ) is a national credentialing system. It
trains, develops, assesses and recognizes individuals for the key competencies that
companies look for in potential employees. Key features of WSQ are:
An occupational and competency-based system, designed to build industry-specific
capabilities
Both singular and flexible training modules, with the option to implement as-is, or
build up to full qualifications
Assessment and certification are based on ability to demonstrate the industry's
required capabilities
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Accessible to all workers and professionals
Recognizes prior learning, such as work experience and credentials
Qualifications and certifications are based on Industry-agreed standards
WSQ qualifications are comparable to credentials issued by international and local
As the following figure explains:
The assessment of the vocational education programs in Singapore are done both on the basis
of Macro-Economic Indicators and Micro-Economic Indicators. The macro-economic
indicators include Economic Growth Rate, Foreign Direct Investment, Annual Growth Rate in
Productivity, and Data on Skill Mismatch. For example, the growth rate in productivity has
been high largely due to successful implementation of the skill development policies. The
output per hour in the manufacturing sector from 2000 to 2007 was 2.0 units which increased
to 7.7 units in 2007-2011 with an exponential rise to 35 units in 2009-2010. The data on skill
mismatch is collected by comparing the job vacancy rate with the unemployment rate and
then focussing on the performance of some specific indicators including education system,
skills development system and some vocational training institutions. The micro-economic
indicators also include the tendency quality and quantity measurement of the courses taught
through international comparison of the students’ scores. Microeconomic indicators are also
Occupational Competencies:Specific skills required to perform a specific job in the industry
Industry Competencies:Industry specific capabilities
Foundational Competencies:Range of know-how and attributes that are portable across occupations and industries
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studied by through various studies commissioned by the government of Singapore. These
studies include:
1. Study of Singapore workforce in terms of the distribution of education
2. Growth Rate of output from the various academic institutions
3. Studies on international competitiveness rankings based on both objective and
subjective assessments about the nation’s workforce quality
Such studies have resulted in a gradual increase in the average corporate budget for training.
The average levels of productivity growth were measured to see the effectiveness of the
above increase. This also created a benchmark for identifying the industries that were the
highest users of the levy.
International Collaboration:
To develop an internationally viable labour market, Singapore has chosen services which are
oriented to international markets. For this the country has provided benefits to the MNCs to
set up shop in Singapore and engage in skill building exercises.
To meet the skills gaps, several major MNCs (Tata, Rollei-Werke and Phillips) were
offered total investment packages by the Economic Development Board (EDB),
including incentives for the establishment of Government training centres, in the late
1960s. This experience demonstrated an important phase of economic development
when it was necessary to leverage on foreign government assistance and private
sector industry partners in complementing the formal VTE system.
The Government has also guaranteed the foreign investors the right to hire a
proportion of the graduates from these training institutes. This ensures foreign
investors will not face skill labor shortage in a tight labor market situation, given that
they have some control over supply of skilled labors.
Different companies are given different incentives based on the need of the
companies. The Government granted ROLLEI their right to refusal for a period of 10
years i.e. during that period the wide range of products that ROLLEI was
manufacturing could be placed under a “control of manufacture ordnance” which
required all other potential manufacturers of the same products to seek a license to
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produce them in Singapore. Such a license would be granted only if ROLLEI refused to
manufacture that item. In the case of TATA, government provided loan finance to the
group to set up their business, reasonable land rents, and paid for the purchase of
training equipment and materials, as well as 70% of operating costs.
Institutionally as well, Singapore has sought to create platform for further collaboration
internationally. From 1979 to 1984 the following institutions were established with a
collaboration of two governments of respective countries.
1. Japan – Singapore Training Center
2. The German Singapore Institute for production Technology
3. The Japan – Singapore Institute of Software Technology
4. Siemens Nixdorf –EDB Center for Advanced die and Tool Making
5. The Bridgeport – EDB Computer numerical control library
6. The Mituyo –EDB Meterology laboratory
Thus, the German-Singapore institute became an industry training centre, with world leaders
in several different technologies providing training. And Japanese electronics companies such
as Seiko, Sankyo Deiki, Matsushita and Mitutyo provided expertise in surface mount
technology, IC design, and computer numerical control technology; European companies such
as Siemens, Asea, and Carl Zeiss contributed equipment and skills in the areas of artificial
intelligence, laser and vision technology; and Hewlett Packard and Auto Desk provided
training and expertise in CAD/CAM robotics and simulation software. This training centres
model was soon expanded to several other industries as well.
South Korea:
The Korean Skill Development initiatives have primarily been led by the government and the
vocational education strategies have been linked well with the economic development goals
to reduce poverty and increase employment. The Korean case offers a good example of the
active role played by the government in skills development of workers. Korea is well known
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for adopting a government-led skills development system to assure industry the supply of a
skilled workforce and to protect the vulnerable groups of population. The International Labor
Organization (ILO) General Assembly Report of 2008 also listed Korea as a successful catch-
up country, along with Hong Kong, Ireland, and Singapore. The report alluded to the
government-led education and vocational training policy as one of the reasons for Korea’s
rapid economic progress. The role of the government in Korea was critical, much like the role
of the government in India, due to three major factors as described in the paper3 by Young-
Sun Ra and Kyung Woo Shim. The basic need for skill development in the country was derived
out of the rapid industrialisation which resulted in frequent mobility of the workforce. This
further resulted in greater movement of labour from the rural to urban areas. Besides the
dynamic of a changing economy and the workforce, there was also a need to develop skills
that would suit the future needs of the economy. This called for efforts from the government
to not just train the people in similar skills but also to create new jobs in diverse sectors. Skill
development initiatives have also been successful in times of economic downturn in the
country by protecting the vulnerable or socially underprivileged groups of the population
from the effects of the downturn as well as from the competitive job market.
The success of the skill development initiative is apparent with constant increase in the
minimum wage in the country and the subsequent rise in the number of people applying for
the minimum wage. In 2008, the minimum wage was Won 3,770 which increased to Won
4,860 in 2013, an increase of 22.42 per cent over a span of 5 years. During the same time
period the number of people who applied for minimum wage increased from 15,351 to 17,510
– an increase of 14.06 per cent.4 Below are the graphs detailing the same:
3 Young-Sun Ra, Kyung Woo Shim; “The Korean Case Study: Past Experience and New Trends in Training Policies” 4 Ministry of Labour and Employment, Republic of Korea: http://tinyurl.com/dycotnh
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Historically, in 1967 when it first started off with Vocational Training Act, South Korea aimed
at providing skilled people to cater the needs of industry. Korea has successfully adapted its
programs according to the needs of the economy and the level of development the country
is facing. The skills development system complemented the economic cycles of the Korean
economy—from supplying skilled workers for export-oriented light industries in the 1960s
and early 1970s, heavy and chemical industries in the 1970s and 1980s and technically more
advanced and knowledge based industries in the 1990s and 2000s. The government has also
concentrated on securing training opportunities for the disadvantaged groups, such as, the
unemployed, non-regular workers, the aged, females, the under-educated, and SME workers,
in order to reduce relative poverty and social polarization.
3,7704,000 4,110
4,3204,580
4,860
0
1,000
2,000
3,000
4,000
5,000
6,000
2008 2009 2010 2011 2012 2013
Min
imu
m W
age
Years
Minimum Wage
15,351
15,88216,103
16,479
17,048
17,510
14,000
14,500
15,000
15,500
16,000
16,500
17,000
17,500
18,000
2008 2009 2010 2011 2012 2013
No
. of
Wo
rker
s
Years
Number of Workers who Applied for Minimum Wage
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Policy and Regulatory Framework:
Korea’s vocational training programs revolve around two major acts – The Framework Act on
Vocational Training and the Vocational Training Promotion Act.5 In the Framework Act, the
vocational training is provided as a mandate by the government with the target group being
the youth that is looking forward to employment as opposed to tertiary education. The focus
of the act is towards providing the labour force for the manufacturing sector of the economy.
The act also includes a certain set of trainings all of which are provided for by the government
with use of the training material as supplied by the government with the trainers being
required to be qualified to a set code. All the trainees, with the exception of those with a
scholarship, are required to pay for their own training and are required to join work after the
completion of the training.
The Promotion Act was passed in order to motivate individual enterprises to train their
workers based on their needs. The scope, as per this act, involved the young people looking
to join the workforce as well as the current employees of the concerned enterprise. The act
also provides a comprehensive plan for developing and enhancing the workers’ skills and
competencies. The act gives the freedom of the curriculum to the enterprise while
maintaining holding of a licence as a prerequisite to join in as a trainer.
To meet the skill gap, Korea started with programmes that targeted both formal and non-
formal skill building. Both these forms of vocational training were developed and
implemented complementarily so as to adequately supply the human resources needed for
industrialization. With advances in technology, the formal vocational education gradually lost
its traditional role and has now elevated its level to higher education (technical or junior
colleges), and non-formal vocational training has also targeted high school graduates who do
not proceed with higher education (vocational training colleges and polytechnic colleges) and
already employed workers of enterprises.
The Ministry of Labour is at the heart of the vocational education innovation in Korea with a
close network with the vocational Training Institutions, Trainees, and Enterprises. The
5 Kim, Mee-Souk; “Vocational Training in Korea”; Korea Research Institute for Vocational Education and Training
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Ministry of Labour also looks after the HRD service of Korea, the Korea University of
Technology and Education and the Polytechnics.
When the vocational training policy was first introduced in 1967, the government adopted a
training subsidy policy for the largest 16 companies. The objective of the subsidy policy was
to instil the training culture among enterprises on the premise that training is a public good.
Although the subsidy did help the establishment of the in-plant training system among large-
scale companies, it could not be spread to other enterprises without the increase in the total
amount of subsidy, and its sustainability was limited by the constraint in government budgets.
In the mid-1970s, as the capability of private enterprises increased with economic
development, the government initially mandated that enterprises of a certain scale (e.g. on
the basis of the number of employees) in key industries invest in their workforce (up to 10%)
through in-house vocational training, and then gave all large scale enterprises an option to
choose either provision of in plant training or the payment of a training levy. Later on the
standard for the training obligation was changed from the number of workers to the amount
of training expenses as a percentage of total wage bill and varied types of training was
recognized. Since 1995, the training expenses have been reimbursed from the training fund
established with the training levy collected from all enterprises under the Employment
Insurance (EI) System.
Best Practices from Korea:
Since 1967, when it first started off with Vocational Training Act, it aimed in providing skilled
people to cater the needs of industry. Korea has successfully adapted its programs according
to the needs of the economy and the level of development the country is facing. The skills
development system complemented the economic cycles of the Korean economy—from
supplying skilled workers for export-oriented light industries in the 1960s and early 1970s,
heavy and chemical industries in the 1970s and 1980s and technically more advanced and
knowledge based industries in the 1990s and 2000s. The government has also concentrated
on securing training opportunities for the disadvantaged groups, such as, the unemployed,
non-regular workers, the aged, females, the under-educated, and SME workers, in order to
reduce relative poverty and social polarization.
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The kind of support that the government has given for vocational education has changed
overtime with respect to the level of economic development and the objectives of the
development initiatives. Below are some of the highlights of the same6:
Support Provided Features
Promoting Initial Training
and Upgrading Training
The Vocational Training Promotion Act provides for the mandates
that need to be complied with the off-the-job training, on-the-job
training and distance learning as provided by the enterprises.
Financial support is provided by the government to promote all
three forms of training and in all cases the financial
reimbursement for teh training provided is done in the same
quarter as the one in which training is provided.
Paid Training Leave for
Employed Workers
To encorage development of skills, paid training leaves have been
promoted to bring in commitment from the side of the employees
towards training.
Overseas Vocational
Training
To increase the job competency of the employee, the government
also introduced support for overseas training. Certain conditions
like the minimum time period of 3 months have been set for such
services to be availed.
Training of Construction
Workers
Training is provided to construction workers who are not
employed on a stable and regular basis by the construction
company.
Public Loan for Vocational
Education
The government has provisioned for organisations to obtain a long
term, low interest rate for setting up facilities for vocational
education.
Assisting Job Transfers
Through Vocational Training
With the changing economic needs, the government also provided
for vocational training of the people above 50 years of age and
covered by employment insurance so as to ease threir transition
into new job environments.
Encouraging Individual's
Voluntary Participation in
Vocational Training
Financial support is provided for the further training of a registered
worker with employment insurance.
6 RM 01-9, Vocational Training in Korea, KRIVET
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Vocational Training for the
Re-employment of the
Unemployed
The workers who were previously employed but now find
themselves out of a job are trained to develop skills useful in
occupations with good future prospects or are trained in skills as
listed in national technical qualification framework.
Government Commissioned
Training
The Korean Chambers of Commerce and Industry and other
private training institutions are funded by the government to train
individuals between 15 to 65 years of age for hi-tech industry jobs.
Other Training
This includes Employment Promotion Training for the unemployed
low-income class, Employment Training for the highly educated
and yet unemployed, Priority Occupation Training, Business Start
Up Training and Initial Technicians Training.
Certification and Assessment:
The National Technical Qualifications Act, 1973 stipulates the broad guidelines that need to
be followed for accreditation. This act was aimed at achieving a standardised version of
certification across the board of skills. A skills certification clause of the Act established
standards by which the government could certify the level of a worker’s skills. Furthermore,
the Act separated testing into two categories: the Minister of Labour oversaw the written
test, and a commissioned organization carried out the practical test. The private sector has
been increasingly asked to assume a larger part of the management of the national
qualifications system. The number of private qualifications is currently over 800, as compared
to the 586 government technical qualifications.
The assessments were initially designed to enhance the competitiveness of the private
training institutes, whereby outstanding organizations and courses (ranging from 10 to 100)
are selected every year, and a certain percentage (approximately 10 percent) of poor-
performing organizations are closed down. The number of evaluations has ranged between
600 and 1,500 since the start of the program in 1999.
The evaluation methods include paper evaluation (HRD-net evaluation data input), field
evaluation by an evaluation committee member, a satisfaction survey by trainees, and an
evaluation by the branch office of the Ministry of Labour. At the initial stage, training
evaluations were conducted to monitor performance of the training institutes. However,
21
evaluations gradually focused on trained workers in order to ascertain the impact of training
programs, in particular those financed by the employment insurance fund since it is also a
public fund. Only a few econometric evaluations have been carried out to determine re-
employment degrees, wage levels, and productivity improvements as a result of skills
development programs.
Some of the parameters used for studying the effects are
1. The impact of in-service training on enterprise productivity and investment
2. Vocational training for the unemployed, using the employment insurance database.
3. Employment and wage effects of training
4. The impact of enterprise education and training on productivity
Efforts are being made to improve the evaluation scheme further to include comparison
groups and ascertain whether skills development programs are an effective tool to create
employment opportunities for the vulnerable and alleviate unemployment.
International Collaboration:
As an important part of Korea’s financial strategy for training programs, the Korean
government sought foreign financial assistance to invest in training provision at the early
stage of economic development and obtain technical knowledge on advanced skills
development systems. In this respect, the government of Korea coordinated foreign
assistance effectively to gain maximum benefit with the least cost. While the foreign
credits/loans were used to purchase foreign equipment and technical expertise, the
government matched the loans by providing local facilities (land and buildings) and
operational expenses. For certain projects, while credits and loans were obtained from the
World Bank (1975, 1977) and the Asian Development Bank (1972), technical assistance was
received from the ILO and UNDP, as well as advanced countries such as Germany and Belgium
as a grant. In the end, foreign financial assistance helped establish 25 training institutes, which
contributed to supplying the skilled workforce for the industrialization of Korea.
22
Brazil:
After a few years of Industrialization and facing the pinch of scarcity of skilled labour, Brazil was faced
with serious questions about vocational training and the models to be adopted to take up the work. A
unique solution (System S) to this was found in that the training and certification was privatized and
carried out by private companies while the funding remained public. This brought into picture SENAI
(Serviço Nacional de Aprendizagem Industrial - a network of not-for-profit secondary level professional
schools established and maintained by the Brazilian Confederation of Industry[7]) which was initially
heavily influenced by German and Swiss styles of training.
In 2011 about 2,533,778 enrolments were held in vocational courses. The table below gives
the employability rates of various forms of training:
Employability Rate of Graduates from SENAI
Modality Employability Rate
Learning 48%
Qualification 48%
Technical 74%
Source: Graduates Follow Up Program, 2010
In Brazil, there is almost a 50-50 split between employment in the organised and the
unorganised sector. Interestingly there are mechanisms for skill building in unorganised
sectors. So while 4 to 5 per cent of the GNP is spent on education and training, this figure rises
to 10 per cent of the GNP when the unorganised sector is included.
Policy and Regulatory Framework:
Brazil has a much organised yet highly unregulated network for Skills Development and
Training. Training and skills development falls under the Ministry of Labour while the
Ministry of Education (MEC) has no regulation on this.
7 Embassy of the Federal Republic of Germany (2011).Press Release, 15.09.2011, Germany, India deepen cooperation in
skills development.
23
System S: There is a network of several institutions across the country that facilitates the
process of training and skills development. This network is popularly called as ‘System S’. The
bulk of this network is private but it is publicly funded. This system does not fall under the
MEC and the Ministry of Labour which is supposed to regulate has hardly any control over it.
Some striking features of System S are:
A bulk of it is private, yet it is publicly funded.
The joint budget of these institutions is several times larger than that of the Ministry
and the quality, stability and strength of the staff much higher than the government
set-up.
It has its own logic and whatever certificates are produced have nothing to do with
education or even with official diplomas.
It is a highly organised yet unregulated system.
SENAI: The SENAI system is decentralized with a central SENAI co-ordinating among the
several state-level SENAI centres but with very little power to impose common policies. As
Clastro de Moura puts it:
“The so-called “Methodical Series”, then popular in Europe, was adopted at the
workshops of all trades taught. This consists in organizing the courses as a series of
increasingly complex practical projects. Each project incorporates learning in manual
skills, blueprint, drafting, technology and all else that is required – including reading,
writing and Mathematics. In so many words, SENAI developed in the forties a robust
version of what is called today Problem-Based Learning (PBL). A very detailed package
for each course was developed, allowing new schools to reproduce the method
without unduly serious difficulties. This system was so successful that it was translated
into Spanish and adopted by just about all Latin American countries” [8].
After the instant success of SENAI, several equivalents sprung up such as:
o SENAC – for commercial sector
8 Clastro, de Moura, Claudio(2012). How Brazil develops its technical skills: Strengths and weaknesses,
http://www.saqa.org.za/docs/qcto/conf2012/brazil_tech_skills.pdf, last accessed on Feb. 09, 2013.
24
o SENAR – for rural sector
o SEBRAE – for small firms
o SENAT – for transport sector
SENAI has ranked consistently among the top three institutions in the World Skills
Competition. Overall, skilled workers prepared by SENAI are as good as or better than any in
the developing world and some can rank among the best anywhere.
However, there are many other issues of concern including:
Regional disparities
Separation of training and education
Heterogeneous system which creates difficulty in standardisation of processes
Employers want to match supply and demand – if the quality is not apt or the targets
are not met, there is a fear of ‘firing’ among the Schoolmasters etc.
The issue of low status of some occupations is still unsolved.
There seems to be a tussle between the adult workers and youth (on which the
policies were initially based) as now the system accommodates adult workers as well.
Apprenticeship: Initially, Apprenticeship was an important part of SENAI, but increased need
to protect apprentices from abuse, the growing amount of regulation ended up making it a
bad proposition for employers. As a result, these days, apprenticeship is only a residual mode
of preparing labour. Another reason was the low labour supply rate, which was unwelcome.
MEC: MEC is the Ministry of Education of Brazil. With a constant development of skills the
tertiary education and technical education appears in the hierarchy of skills and this is where
the Ministry of Education comes into play as the academic degrees require a legal oversight
of the Ministry. Also, the System S offers courses which are regulated by the MEC and hence
it needs conform to its legislation and procedures. Despite that, the MEC enjoys very little
control over these courses. As a report notes, “Considering the constant upgrading of skills,
the growth of this formula is an unavoidable tendency in Brazil- and worldwide. However,
MEC does not have any more power over System S than it does over the proprietary private
sector in general.”[9]
9 Rashtriya, Tarun(2008). Vocational Education, APH Publishing Corporation, New Delhi, pg 29.
25
Best Practices from Brazil:
SENAI exhibits a system that is driven by the private sector and fuelled by the public sector.
This ensures proper allocation of resources and better demand-and-supply matching. SENAI
is almost completely managed by the private sector with little say of the government. This
responsibility has inspired the private sector to uphold the system to the best standards.
SENAC differs from SENAI in the sense that it involves an active participation of the students
who pay for (at least a part of) their training and can choose to train themselves as per the
needs. Hence, while SENAI is privately regulated and matches supply and demand, SENAC is
self-regulatory and is market driven.
The “Non-System”: The non-system is a collection of systems that are not the object of survey
and policies in Brazil. It is similar to the unorganised sector of India. It includes proprietary
programs by firms, NGOs, municipalities and other “generic” government bodies. This system
is speculated to be as big as the visible system.
MOE and Technical Education: In the 90s, the government split the two tracks in education –
academic (for those who wanted to go for higher studies) and technical (who wanted to have
a profession to enter the market). However, after a new government in 2002, these two were
joined again. This allowed the students to choose their track after graduating from the
secondary school completely and also reduced the burden to some extent. However, in
practice, this increased the average age of the technical education students. Parallel to this
works a part of System S which also has federal schools but more specialised in terms of the
requirements of the institutions it has partnered with.
Certification and Assessment:
Organised Sector – The organised sector has SENAI and now a few ISO certifications.
Although the Ministry of Labour has tried several times in the past to incorporate a
certification system, but because of the prestige and existence of the certification
system of the SENAI, it has not materialized. However, a few industries have adopted
the ISO standards, such as pipelines welding and adventure tourism.
Unorganised – The certifications in the unorganised sector are either proprietary or
generic.
26
International Collaboration:
US Brazil Connect[10]: The Partnership for Skills is the flagship program of US-Brazil Connect.
The goals of the program were as follows:
To improve the English skills of 700 low-income Brazilian high school students who are
enrolled in technical training programs
To provide a high-quality, low-cost fellowship experience abroad for 50 US community
college students
To expand the program to reach 7 districts in Brazil
To build the foundation for a scalable US-Brazil workforce partnership between U.S.
community colleges and the Brazilian Confederation of Industry (SENAI/SESI
education systems)
Australia:
The Australian labour market has evolved over the last decade and a half with the total workforce
increasing from 383,000 in 1997 to 781,000 in 2009. A big reason for this has been the successful
implementation of Vocational Education policies leading to creation of greater number of jobs. The
percentage of workers employed as Managers or Professionals has increased from 29.5 per cent to
31.5 per cent of the workforce while the percentage of labourers has decreased from 12.4 to 10.7.
Below is a table and a graph explaining the shift over the years as per occupations11:
Employment by Occupation Percentage of Total Workforce
Occupation 1997 2003 2009
Managers 11.9 12.1 13.1
Professionals 17.6 19.4 20.5
Technicians and Trades Workers 16 14.9 15.1
Community and Personal Service Workers 7.9 8.4 9.3
Cllinical and Administrative Workers 16.4 16.2 15.6
Sales Workers 10.3 10.7 9.4
10 US-Brazil Connect, http://us-brazil.org/partnership/ 11 Annual National Report of the Australian Vocational Education and Training System 2009
27
Machinery Operators and Drivers 7.4 6.7 6.4
Labourers 12.4 11.5 10.7
This shift is also marked with an increase in enrolment over the years in vocational education
courses. The enrolment from 2004 to 2009 has seen an increase of 5.6 per cent. The year on
year increase has varied with a small dip as well but largely it has been on the rise, as explained
in the table below12:
Increase in Enrolments for VET
2004 2005 2006 2007 2008
Total VET Students ('000) 1606.4 1650.8 1676 1665 1696.4
Annual Growth (%) 2.76% 1.53% -0.66% 1.89%
Growth since 2004 (%) 2.76% 4.33% 3.65% 5.60%
12 Annual National Report of the Australian Vocational Education and Training System 2008
0
5
10
15
20
25
Per
cen
tage
of
Wo
rkfo
rce
Occupation
Employment by Occupation
1997
2003
2009
28
Largely the vocational education programs have been funded by the government but a
substantial percentage of the total funding also comes from the fees charged from the
students as described in the table below13:
Funding in Vocational Education and Training
Sources of Funding 2004 2005 2006 2007 2008
Government 70.2 71 71.5 71.9 70.6
Government - Specific Purpose 2.2 2.7 3 2.8 3.2
Fees - Domestic Students 26.3 25 24.1 23.2 23.9
Fees - International Students 1.3 1.3 1.5 2.1 2.3 All figures in percentages
Policy and Regulatory Framework:
In Australia, the primary organisation for Skills Development is Department of Industry,
Innovation, Science, Research and Tertiary Education (DIISCRTE) which involves work on
Industry, Innovation, Science, Research, Small Business, Higher Education, Skills and
International Education. Under the Skills initiative, the primary programmes are National
Workforce Development Fund, Australian Apprenticeships Access Program
National Workforce Development Fund: Through the National Workforce Development Fund
(NWDF) the Australian Government will provide $700 million over five years to industry to
support training and workforce development in areas of current and future skills need. Under
13 Annual National Report of the Australian Vocational Education and Training System 2008
2004 2005 2006 2007 2008
Annual Growth 2.76% 1.53% -0.66% 1.89%
Growth since 2004 (%) 2.76% 4.33% 3.65% 5.60%
Pe
rce
nta
ge o
f G
row
th
Years
Increase in Enrollments for VET
29
NWDF, organisations can identify their current and future business and workforce
development needs and apply for funding to support the training of existing workers and new
workers in areas of shortages.
The Fund is part of the Australian Government’s Building Australia’s Future Workforce
package and also forms part of Australian Government Skills Connect, an initiative designed
to link employers and industries to funding for whole of workforce (including language,
literacy and numeracy training and mentoring of Australian Apprenticeships) planning and
development.
Australian Apprenticeships Access Program14: The Australian Apprenticeships Access
Program provides vulnerable job seekers who experience barriers to entering skilled
employment with nationally recognised pre-vocational training, support and assistance. The
Access Program is delivered locally by brokers and providers who work closely with employers
to deliver training that meets industry needs. The program is provided at no cost to
participants and assists them to find and keep an Australian Apprenticeship, or to enter
employment or further education or training.
The Program includes a minimum of 150 hours of nationally recognised, accredited pre-
vocational training linked to an Australian Apprenticeship pathway and delivered by
Registered Training Organisations. Following the training period participants receive
individualised intensive job search assistance for up to 13 weeks. Participants who gain an
apprenticeship or other employment or commence in further education or training, along
with their employers, receive at least 13 weeks of post-placement support.
Best Practices from Australia:
Australia has a federal government and each state in the country follows a different and
independent system. A three tier system is followed:
Primary
Secondary
14http://www.innovation.gov.au/Skills/PreVocational/AustralianApprenticeshipsAccessProgram/Pages/default.aspx
30
Tertiary(Universities and /or TAFE colleges)
TAFE stands for Technical and Further education. Each state’s government funds and
regulates the public and private schools. However, they help in funding the public universities,
but not involved in setting the curriculum. As of 2012, the Australian National Curriculum has
already been adopted by some schools and will become mandatory soon[15].
Australian Apprenticeships: Australian Apprenticeships encompass all apprenticeships and
traineeships. They combine time at work with training and can be full-time, part-time or
school-based.
Recently, there have been several changes in the Australian Apprenticeships Incentives
Program (AAIP) such as:
Diploma and Advanced Diploma eligibility
Part-time eligibility
Changes to the employer component of the Support for Adult Australian Apprentices
initiative
Implementation of the Apprentices Kickstart initiative(Available from 1 December 2012
to 28 February 2013)
Recommencement incentive changes
The National Centre for Vocational Education Research (NCVER) was commissioned to
provide a detailed study of the economic costs and benefits of the Australian Apprenticeships
system.
Certification and Assessment:
Australian Skills Quality Authority (ASQA)16: According the National Vocational Education
and Training Regulator Act 201, which mandates the formation of a national regulator for
vocational education and training, the Australian Skills Quality Authority (ASQA) regulates
courses and training providers to ensure nationally approved quality standards are met. It’s
15 http://www.australiancurriculum.edu.au/
16 Australian Government Skills Connect, http://skillsconnect.gov.au/, last accessed on April 21, 2013.
31
framework is based on Legislation and Standards coupled with a stronger regulatory powers
and an increased emphasis on risk as informed by the Risk Assessment Framework (Section
19 of the Act). It also has a very strong requirement of accountability and reporting to ensure
and maintain it credibility which is re-enforced by the Freedom of Information Act, 1982.
Tertiary Education Quality and Standards Agency (TEQSA): TEQSA works in the higher
education sector that includes undergraduate awards, (bachelor degrees, associate degrees
or advanced diplomas) to postgraduate awards, including graduate diplomas, masters
degrees and doctoral degrees.
TEQSA registers and assesses the performance of higher education providers against the
Higher Education Standards Framework. The Standards Framework comprises five domains:
Provider Standards, Qualification Standards, Teaching and Learning Standards, Information
Standards and Research Standards. The Provider Standards and Qualifications Standards are
collectively the Threshold Standards, which all providers must meet in order to enter and
remain within Australia’s higher education system17.
TEQSA will undertake both compliance assessments and quality assessments. Compliance
assessments involve assessing a particular provider’s compliance against the Threshold
Standards for registration as a higher education provider. TEQSA may conduct quality
assessments across the whole higher education sector, a sample of providers, or a single
provider.
TEQSA was envisioned as a “next generation” regulator with a dual aim of ensuring adherence
to standards and promoting best practices in the education sector. It was formed by the
government after the recommendation of the Bradley Review (Review of Australian Higher
Education) and allocated a budget of $70 million over four years, in 2010-2011. The Tertiary
Education Quality and Standards Agency Act 2011 (TEQSA Act)18 established the agency and
17 Education Quality and Standards Agency (TEQSA), http://www.teqsa.gov.au/, last accessed on April 21, 2013.
18 http://www.comlaw.gov.au/Details/C2012C00737, last accessed on April 21, 2013.
32
the new national regulatory and quality assurance environment for Australian higher
education.
International Collaboration:
Australia and India19: The 2012 Australia India Skills Conference was held in Perth, Western
Australia on 10-11 July 2012. The Conference aimed to foster innovation and collaboration in
skills development between Australia and India by bringing together key players in the skills
sectors of both countries. The Australia India Skills Conference was an initiative of the
Australia India Education Council, a bilateral advisory body chaired by the Australian
Government Minister for Tertiary Education, Skills, Science and Research and the Indian
Government Minister for Human Resource Development.
AVTEG: Australian Vocational Training and Employment Group (AVTEG) is an education
consultancy to develop strategic alliances between Australian Vocational Training
organisations, Indian skill development organisations, Government of India, local Indian
industry associations and employers to ensure better career development and skills
enhancement of the Indian workforce.
AVTEG has a pan-India presence owing to its partnership with NSDC based in India. AVTEG
assists these NSDC Skill partners, Non Governmental Organisations (NGOs), private skills
training institutions and corporates in training the existing Indian workforce for Better Skill
Better Pay Better Life.
TSSC and IBSA20: India's Telecom Sector Skill Council (TSSC), a public-private initiative, and
Australian industry skills councils Innovation and Business Skills Australia (IBSA) and E-Oz
Energy Skills Australia (E-Oz) have signed a memorandum of understanding (MoU) to expand
cooperation in skills and workforce development in the telecommunications sector.
19 http://www.australiaindiaeducation.com/index.cfm/sd/Page/P/59/M/4, last accessed on April, 2013. 20 The Indian Express (2013). http://www.indianexpress.com/news/indiaaustralia-ink-deal-for-developing-telecom-skills/1103589/, last accessed on April 21, 2013.
33
Germany:
The German Vocational Education is famous for its dual system named as such because it
establishes a close relationship between working and learning. The training is conducted in
two places of learning, namely, the companies and the vocational schools and the whole
program lasts a total of three years. As the Aid for Skill Development case study notes, “The
private sector and schools are closely intertwined in this concept, with on‐the‐job training
and classroom learning taking place in parallel. Businesses not only receive qualified
employees who meet their needs but are also involved in the lifelong learning process. Under
this arrangement, young adults unite theory with hands‐on work experience right from the
start and are more quickly productive after their training. Schools continually negotiate their
learning programmes with businesses and tailor them to the needs of the job market. The link
between learning and working can take various forms – and the interchange between the two
spheres is beneficial to all parties. Since its inception in the 1960s, German development co‐
operation in the field of vocational education has focused on efforts to make Germany’s
unique approach to vocational training beneficial for poor countries. Linking learning and
working in a unique career form has been the gravitational center of the development
strategies for the past few decades.”21
The bifurcation in the mainstream and the vocational education happens after grade 9 when
the students are given the option of choosing from a regular high school (Abitur) or a
vocational education centric high school (Hauptschule). A Hauptschule (German: general
school) is a secondary school in Germany and Austria, starting after 4 years of elementary
schooling, which offers Lower Secondary Education (Level 2) according to the International
Standard Classification of Education. The main aim of Hauptschulen is to offer young students
with average grades or below, most of who will not attend a university, an adequate general
academic education. Once students have obtained their leaving certificate at the age of
15/16, they can go into practical vocational training, start work in the public service at basic
or secretarial level, or attend a Berufsfachschule (full-time vocational school).
21 Aid for Skill Development: German Case Study; Ute Clement 2012
34
Below is a table categorising the job holders as per their qualifications in Germany:
Jobholders holding High School (VE), College Student or High School Degrees in Germany
1970 1982 1991 2000
High School (VE) 87.70% 79.30% 66.50% 54.90%
College 10.90% 17.70% 27% 34.10%
High School 1.40% 3% 6.50% 11%
The German system of education was highly focussed on skill training in the early 70s which
has slowly moved towards more research based and tertiary forms of education. As can be
seen 87.7 per cent of all job holders came from the vocational arm of education in 1970. This
decreased to 54.9 per cent by 2000. In the same time period, the job holders with college
education increased from 10.9 per cent to 34.1 per cent. In Germany, more than 50 percent
of all students who were college-bound in high school but decided against university apply
for vocational training, and many companies participate in vocational training. Companies
provide training voluntarily, and often at their own expense, because they believe that this is
the best way to meet their own need for skilled staff. Private companies bear two-thirds of
the total costs spent every year on (initial) vocational training in Germany – costs which
amount to an average of 15,300 euros per trainee per year. Businesses that take part in the
practice consider training their own new employees the best form of personnel recruitment.
Training companies save on recruitment costs and the cost of new-employee training. They
also avoid the latent risk of hiring the wrong employee for the job. The main benefit for
trainees is receiving market-relevant training that improves their chances in the labor market
while simultaneously improving social skills and developing personality. Finally, the state, too,
benefits from the dual system through easing the burden on public budgets by participation
of the enterprises and by keeping the workforce up to date.
The German dual system has proved its success over a long period, and it still shows its ability
to react quickly and effectively to the many changes currently affecting the economy and
society.
Policy and Regulatory Framework:
In order to increase the training opportunities for young people, the apprenticeship pact was
signed between the Federal Government and the central associations of German industry in
35
June 2004 for a term of three years towards making a major contribution to this. In this pact,
the partners undertook to work closely with the government to effect a substantial increase
in training provision by the end of 2007, and to optimize the training process and to orient it
more strongly towards individual young people.22 In addition, initiatives were launched to
improve the supply of training places. These included the Federal Ministry of Education and
Research’s programme JOBSTARTER - This programme, launched at the beginning of 2006, is
aimed at improving regional training structures and hence the supply of in-company training
places. Overall, the German enterprises have played a big role in skilling the people. Close to
70 per cent of all the enterprises with 50-499 employees and more than 90 per cent of all the
enterprises with more than 500 employees have in-house training facilities.
In 2005 the German federal government formulated the goal of stimulating broad‐based
growth and pro‐poor growth in poor countries by means of vocational training. In early 2011
the Federal Ministry for Economic Co‐operation and Development (BMZ) presented a draft of
its education strategy for 2010‐2013, in which vocational training was identified as a key
component of integrated education systems. Regulation and partnership are the two
principles that make the system so successful. Representatives of the federal state, the
individual states, employers and employees work together by consensus to develop curricula,
provide training, and carry out assessment, certification and quality assurance. Mutual trust
and long-term commitment to human resource development are the key ingredients that
enable the dual system to deliver the skills that meet employers’ requirements while
guaranteeing employees sufficient skills to change jobs and move up the career ladder. They
are also the aspects of the dual system that make it so difficult to replicate elsewhere.23
Best Practices from Germany:
Elementary Vocational Training and Secondary Level Technical Education: Senior
technical schools and senior vocational schools normally build on vocational training
within the dual system. They teach specialized occupational skills and theory and
confer university entrance certifications. Elementary level contains of years of basic
vocational education and supplementary vocational training.
22 Vocational education and training in Germany: Ute Hippach-Schneider, Martina Krause, Christian Woll 23 Can the ‘German model’ bridge the skills gap elsewhere? : 3 February 2012 by Léna Krichewsky
36
On the Job Training or Apprenticeship: Apprenticeships are open to all students who
have completed lower secondary education (age 15) and last from two to three and a
half years. Apprentices are considered as employees and are paid by the training
company. They can choose from among about 350 occupations, reaching from
hairdressing and car repair to insurance and financial services. Because
apprenticeships are such a good route into skilled jobs, many students who have
completed upper secondary school also start an apprenticeship, even if they have the
credentials to enter university. The key success factor for the German system is the
added focus on apprenticeship. Germany for instance has a million plus Apprentices.
Finding a job without having completed an Apprenticeship is almost impossible. The
private sector and the Government have forged a very strong partnership to achieve
this.
Informal Vocational Training: Needs‐oriented vocational training for the rural sector
and urban poor population made it necessary to reorient TVET-DA towards
appropriate technologies, cultural and social dialogue, and non‐formal training.
Women, who account for the majority of employed persons in the informal sector,
benefited from these training opportunities. In addition, small business people,
demobilized soldiers and unemployed young adults were among the specific target
groups. Employment‐generating education for the informal sector has to take into
account the professionalism of training as well as artisanal and technical, managerial,
organizational and marketing skills, but also basic education and survival skills.24
Continuing Vocational Education and Training: Continuing education or training is
understood to be the continuation or resumption of organized learning following
completion of an initial phase of education of varying scope in addition to continuing
‘vocational’ education/training, this includes continuing general and political
education, which is also subsumed under the heading of ‘adult education’. In
Germany, continuing vocational education/training is characterized by receptiveness,
flexibility and ongoing changes. The state has only a minor regulatory and creative
function in this area. The complexity and heterogeneity of continuing VET is reflected
24 Aid for Skill Development: German Case Study; Ute Clement 2012
37
in the variety of activities in the areas of financial support, research, development and
quality assurance.
In Germany, the apprenticeship system is usually defined as the dual training system,
characterized by work-based training of apprentices complemented by compulsory
vocational schooling. The aim of apprenticeship training is to provide general education
complemented by occupation-specific knowledge and skills that would enable direct access
to the labour market. Apprenticeships are usually based on a contract between the
apprentice and the employer to offer training in the workplace which is, combined with off-
the-job training in schools or specific VET centres. Apprenticeships are one of the available
vocational routes into the labour market offered through the different vocational education
and training (VET) systems in Europe. In countries with apprenticeship based systems (e.g.
Austria, Germany and Denmark), these can help keep youth unemployment low, evident in
Germany, where the rise in youth unemployment during the economic crisis has been low.
It is generally recognised that Germany with strong apprenticeship systems offer fast and
stable transitions for young people from vocational training into the labour market. There are
several reasons for this, as follows:
Very strong connections with the labour markets which mean that there are clear and
identified links between apprenticeship qualifications (and final certificates) and the
organisation of work, career structures and pay.
Apprenticeships provide a direct bridge between school-based vocational training and
the world of work, by bringing vocational training directly into the workplace.
Apprenticeships lead to better direct employment opportunities for participants.
Companies where apprenticeships are taking place become familiar with the
apprentices, have opportunities to ‘trial’ them in real work situations and assess their
suitability for actual employment
Apprenticeships are well regarded among employers and young people. They are not
considered to be ‘a second choice for poor school performers’, but have a well
established reputation as an attractive option for young people to continue their
education and enter the labour market.
38
Apprenticeships lead to recognised certificates of completion that are formally issued
and approved by the state, and provide a certified entry into a profession for a young
person.
Apprenticeships are supported by social partners, evident in their ongoing
involvement in the development of curricula and qualifications, anticipating and
influencing the development of training standards and qualifications, and retaining of
apprenticeship places (even in the economic downturn).
Apprenticeships are underpinned by a process of continuous improvement, evolving
to allow the training to remain up-to-date given changes in the world of work and
work organisation.
The success of apprenticeship in Germany has helped to spread the model to other European
countries. Where apprenticeships do not exist or are not extensively developed, governments
are looking at ways to introduce them, viewing them as an important alternative to school-
based provision for students and employers. Apprenticeships are undergoing resurgence and
now appear to be seen as important alternative track into the labour market even in countries
that previously pursued policies of trying to reduce the differentiation between VET and
general education. It also needs to be acknowledged that many Member States have focused
efforts to increase apprenticeship structures as a policy response to the recent global
economic downturn. This was seen as an important measure to address increasing youth
unemployment and offer viable and attractive vocational training routes to young people.
Certification and Assessments:
Demographic development, the globalization of markets, new technologies and new work
organization models require new educational policy structures in order to respond to the
demand for a qualified workforce. The qualification frameworks set therefore become vital
for providing quality skills. Germany has some of the best certification mechanisms developed
as are mentioned below:
Continuing-Training Innovation Group25: The aim of the continuing-training innovation
group, convened by the BMBF in 2006, is to develop options for action for the future of
25 Vocational education and training in Germany: Ute Hippach-Schneider, Martina Krause, Christian Woll
39
continuing training by summer 2007.Focal topics include the combining of formally and
informally acquired competences via certification and improvement of a second chance for
young adults without a vocational qualification.
Stiftung Warentest Quality Tests26: The quality and transparency of continuing training
courses are constantly improved by means of independent continuing training tests. The
department of continuing training tests of the Stiftung Warentest [goods testing foundation]
is conducting up to 20 tests a year between the middle of 2002 and December 2007 in the
field of continuing vocational training provision. Further training courses, provision of advice
and learning media are currently being tested. The aim of the project is to make the market
structure, with some 35,000 continuing training providers and around 400,000 different
products, more transparent for consumers, and to increase the focus of providers on quality.
Continuing training tests ideally complement other quality assurance instruments, such as
quality circles and certification systems.
Quality in Continuing Vocational Training’ Checklist27: In 2007 the BIBB is updating the
‘Quality in continuing vocational training’ checklist. This was developed as long ago as 1991
and was last updated in 2001. It is a list of questions that can be used by those seeking advice
when deciding whether to take part in a continuing training programme. For example, it
clarifies questions as to what continuing training costs, how the provider assures the quality
of its continuing training, what qualification the continuing training measure leads to, etc.
International Collaboration:
iMOVE is an initiative of the German Federal Ministry of Education and Research. An
extensive offer on information about conditions and the structure of international education
markets makes it easier for German education providers to tap these markets. At the same
time, iMOVE is using the slogan “Training ‐ Made in Germany” to promote German education
and continuing professional development.
26 Vocational education and training in Germany: Ute Hippach-Schneider, Martina Krause, Christian Woll 27 Vocational education and training in Germany: Ute Hippach-Schneider, Martina Krause, Christian Woll
40
The individual German states (e.g. Lower Saxony and Baden‐Württemberg) offer TVET‐DA in
the form of collaboration with partner countries on school projects wherein Don Bosco is one
of the most experienced providers of vocational training in poor countries.
The following selection of projects is meant to illustrate the activities of TVET‐DA on the
macro as well as the meso and micro levels. Examples from the formal sector as well as the
informal and non‐formal sectors are included. The majority of funding in development
cooperation work is channelled through the BMZ, with the various implementing
organizations focusing on specific areas
Angola, Vocational Training and Labour Market Integration in Mexico, 2008‐2010
Egypt, Technical Education, Training and Employment Programme (Mubarak‐Kohl‐
Initiative), 2007‐2014 (planification)
China, Chinese German Training Centre for Printing Technology, 1998‐2007
Brazil, Support of the Modernisation of SENAI, 2001‐2004
Ghana, Opportunities Industrialisation Centres (OIC), 2001‐2010
India, Economic Empowerment through Strengthening Functional Vocational
Training on Viable Trades and Skills for Marginalised Communities in Eight States of
India,
Philippines, Dual Training System, 1996/2000‐2007
Sierra Leone, Reconstruction Agricultural Infrastructure, 2000‐2001
Uganda, Association of Private Vocational Institutions UGAPRIVI, 2000‐2012
China:
In China, young people are among the groups most affected by the economic crisis. The lack
of and the need for good vocational training have been felt for long. In addition, young people,
especially graduates, are facing difficulties finding jobs as demand is at a low level and the
thresholds are higher for young people entering the labour market. The current economic
downturn has so far left tens of millions of workers jobless or laid-off in China, including 25
41
million migrant workers from rural areas. To help the unemployed find a job is important not
only to people’s livelihood but also to social stability.
Vocational Education and Training (VET) refers to technical education and skills training
provided by pre-employment programs, job transfer programs, apprentice programs, on-the-
job programs and various certificate programs. According to China’s 1996 Vocational
Education Law, VET is a key component of China’s educational system, an important means
to promote employment, economic growth and social advancement. The Chinese
government has attached great importance to VET since the founding of the People’s Republic
in 1949. The 1996 Vocational Education Law and the State Council’s 2002 Decision on
Vigorously Promoting the Reform and Development of VET represents the government’s
renewed effort at supporting VET after the Cultural Revolution.28
VTE is divided to junior, senior, and higher levels. Government emphasizes to establish and
perfect the vocational system which owns both vocational school education and vocational
training, coordinates and strengthens the links between VTE and VTE, and VTE and other
education.
Quality of education is vital to the growth of the VET sector and the employability of VET
graduates and trainees. VET programs and courses are practice-oriented and labour market-
oriented and VET training combine school learning with hands-on practices. China has
witnessed a fast growth of commercial VET institutions in recent years. In 2008, for example,
the number of commercial VET providers reached 21,811 nationally. A rapidly increasing
number of young people now stay on in upper secondary education – now around three
quarters of the cohort, and fast increasing numbers of young people in tertiary education. At
upper secondary level about half the cohort (as a matter of policy) enters upper secondary
vocational schools – with more than 20 million students now in vocational schools.
28 China’s Vocational Education and Training: The Next Key Target Of Education Promotion: by YAN Hao
42
The number of junior and senior secondary schools for vocational education has slowly gone
down with an increase in the higher vocational education schools. This has been due to the
greater contribution of vocational education in China towards job creation wherein a growing
1996 1998 2000 2001 2004 2006 2008
Junior Secondary VocationalSchools
1534 1472 1194 1065 672 335 0
Senior Secondary VocationalSchools
22151 22174 20252 17770 14454 14693 14847
Higher Vocational Colleges andUniversities
81 101 184 384 872 981 1184
0
5000
10000
15000
20000
25000
Nu
mb
er o
f Sc
ho
ols
Years
Number of all Categories of TVET Schools
13.214.31
12.8411.64
14.09
18.1
20.87
0
5
10
15
20
25
1996 1998 2000 2001 2004 2006 2008
Stu
de
nt
Enro
llme
nt
Years
Enrollments in Secondary Vocational Schools (Millions)
43
percentage of students have shown transition from secondary to higher education. As a result
there has been a growing number of secondary school enrolments as depicted in the graph
above. The average time period for a Chinese receiving education is more than 8 years. The
senior secondary education popularized quickly, the gross enrolment rate of senior secondary
education reached 66% in 2007. Since 1999, the number of students enrolled in higher
education institutions has kept expanding.
Policy and Regulatory Framework:
In the case of China the vocational education law enforced in 1996 provided the general
regulatory framework. The sources for investments in vocational education come from local
governments, the budgets for the running costs are provided by the provincial
administrations. Various government and administration levels are assigning earmarked
financial resources and guarantee the gradual increase of the resources, while the provincial
governments do assign additional funds for the educational budget and do secure a
percentage for vocational education.
The main resources of finance of VTE come from:
Government finance: pay in full the average expenses for the students
Enterprise finances: enterprise shall bear the expenses for the vocational education of
its own employees and of the persons it plans to employ.
Local Education Additional Funds
Students’ tuition: VTE students should pay tuition fee which subjects to major.
Social donations: the donations from enterprises, institutions, non-governmental
organizations, other public organization, and individual citizens.
The earnings that are derived by vocational schools from running enterprises or
providing social services.
China uses the term ‘vocational and technical education’ (VTE) as a general term for different
types and modes of vocational and technical education and training. This also includes initial
preliminary and continuing training at various education levels. Furthermore, it indicates that
Chinese current VTE system does not maintain a clear distinction between initial VTE (IVTE)
and continuing VTE (CVTE). Both, IVTE and CVTE eventually do belong to the same uniform
system, which is enforced by the VTE Law of the PR China in 1996.
44
IVTE consists of two components, school-based vocational education and training. School-
based vocational education is provided by Junior and Senior Vocational Schools (SVS),
Skilled Workers Schools (SWS) and Secondary Technical Schools (STS). The tertiary sector
provides vocational education at Higher Vocational Colleges (HVC) and Senior Skilled Workers
Schools (SSWS).29
Vocational training comprises apprenticeships, on-the-job training, re-training and short
training courses that might take place before or during employment. These forms of
continuing vocational education are partly organized in accordance with vocational
standards. Country-wide networks of certification centers are currently being build up.
Vocational training is supplied by a huge variety of organizations such as department training
centers, companies, employment agencies, the unions, public and private organizations and
vocational schools.
Best Practices from China:
China has strong arrangements to ensure that teachers in vocational schools remain abreast
of the requirements of modern industry. Teachers in vocational schools are required to spend
one month in industry each year, or two months every two years. In addition, many schools
employ a significant number of part-time teachers who also work in industry.
Apart from government promotion and media awareness programs to boost skilled workers’
social status, recent development of the labor market has also played a role in making VET
programs and courses more attractive. Compared with graduates from general schools, as
mentioned previously, graduates of VET programs usually have a better chance of finding a
job or face lesser problem with wage cut.30
Vocational institutes and schools have cooperated with society, enterprises and villages and
become market oriented. Via various ways such as combining learning and practice,
cooperation between school and enterprise, learning while working, education reform,
developing career morality and emphasizing on practical and vocational competency skill,
over 95% of the students have become employed. In recent years, “National Skilled Workers
Training project”, “National Rural Labor Force Transferring Training project”, “Rural applied
29 Key Highlights of China’s Approach to TVET/Skills Development: by Wenjin Wang, 2010 30 China’s Vocational Education and Training: The Next Key Target Of Education Promotion: by YAN Hao
45
technician training project”, and “Continuous education and Re-employment Training
project” has remarkably increased the consciousness and capacity of vocational education’s
serving economic society and enhanced its vitality, which was widely recognized and
supported by people on general.31
Certification and Assessments:
Skill Certificate System: There are 5 levels in national occupational qualification certificate
system described as Level 5 (primary), level 4 (middle), level 3 (higher), level 2 (technician),
and level 1 (higher technician).
Four types of non-university institutes provide VET courses at the tertiary level:
(a) Vocational-technical colleges or polytechnic colleges provide 2- to 3-year diploma courses
of occupational and technical training. Polytechnic colleges now play a key role in China’s
tertiary level VET. (b) Specialized junior colleges provide 2 to 3-year diploma courses mainly
for capacity building rather than technical training. Currently, only a small number of normal
colleges belong to this category. (c)Technician colleges provide 2 to 3-year certificate courses
specially designed for the state occupational license qualification of technicians; and (d) Adult
higher educational institutes provide full time and part-time certificate courses to people who
want to pursue higher education for capacity building, knowledge enrichment, or self-
improvement.32
Four types of VET schools provide VET courses at higher secondary level:
(a) Specialized high schools provide 3-year certificate courses. This is the most popular form
of VET in China. After graduation, students are more likely to enter the labor market directly.
(b)Vocational high schools are VET schools transformed only lately from general senior high
schools. After graduation, students either enter the labor market or progress further to
polytechnic colleges. (c) Skilled worker schools provide 3-year certificate courses specially
designed for the state occupational license qualification of skilled workers; and (d) Adult
specialized high schools provide full-time and part-time courses for those who want to pursue
senior high school education. Most short-term courses of occupational and technical training
31 Key Highlights of China’s Approach to TVET/Skills Development: by Wenjin Wang, 2010 32 China’s Vocational Education and Training: The Next Key Target Of Education Promotion: by YAN Hao
46
can be grouped into this category as well, since prospective applicants must complete junior
high schools.33
France:
Vocational training has been a major issue in France since the Middle Ages and the right to
education and vocational training was included in its Constitution. Since 2000, major reforms
to the vocational training system have been undertaken, including the introduction of a
Certification Register in 2002 and the transferring of all responsibility for vocational training
to the regions in 2004.34
In regard to equity, France focuses on lifelong guidance and career security, which are an
essential aspect of effective lifelong education and training. In the field of education, the State
has retained responsibility for curricular content, examinations and teaching staff, while the
départements and regions have been placed in charge of facilities and the running of schools
as well as the recruitment and remuneration of non-teaching personnel. With regard to
vocational training, regional councils are responsible for apprenticeships and vocational
training for unemployed young people and adults. The State provides co-funding, with the
regions, for certain forms of training provision for the unemployed and people in work and it
has retained responsibility for the vocational training of specific groups: prisoners, illiterate
people, people with disabilities and foreign workers.
European cooperation in the field of vocational training has produced a number of major tools
providing greater mobility and transparency of qualifications. As they are based on a ‘learning
outcomes’ approach and presuppose quality assurance mechanisms to provide mutual
confidence, they have a major impact on national vocational training systems. The French
vocational training program highlights the importance of implementing the European
Qualifications Framework (EQF) through appropriate methods and of ensuring coherence
between the various instruments: EQF, ECVET (European Credit system for Vocational
Education and Training) and Euro pass. France emphasizes the role of universities in
vocational training.
33 China’s Vocational Education and Training: The Next Key Target Of Education Promotion: by YAN Hao 34Vocational Education and training in France; European Centre for development of vocational training
47
The number of senior citizens in France, which increased by three million between 1970 and
2000, will grow by more than seven million over the period to 2030. At the same time, the
rate of employment among over-50s in France is one of the lowest in any EU country.
Population ageing has also been taken into account in the ongoing reform of the continuing
vocational training system, which was launched by the social partners in September 2003:
measures have been introduced to develop access to vocational training for people aged at
least 45, who have worked for 20 years. Those eligible are entitled to an official assessment
of their skills, provided they have worked for at least a year in the company where they are
currently employed.35
Policy and Regulatory Framework:
European cooperation in the field of vocational training has produced a number of major tools
providing greater mobility and transparency of qualifications. As they are based on a ‘learning
outcomes’ approach and presuppose quality assurance mechanisms to provide mutual
confidence, they have a major impact on national vocational training systems. The French
presidency highlights the importance of implementing the European Qualifications
Framework (EQF) through appropriate methods and of ensuring coherence between the
various instruments: EQF, ECVET (European Credit system for Vocational Education and
Training) and Euro pass. Finally, France will emphasize the role of universities in vocational
training.
Initial Vocational Training (IVET):
VET in Schools: On leaving junior high school (college), usually at aged 15, students are
steered either towards a general and technical senior high school to spend three years
working for a general or a technical diploma, or else towards a vocational high school to study
over two years for a certificate of professional aptitude or a vocational education certificate,
or over three years for a secondary vocational diploma. These offer a direct access to
employment and always include a work placement.36
Tertiary education provides students with a choice of general, technological and vocational
35 Vocational Education and training in France; European Centre for development of vocational training 36 Spotlight on VET France: European Centre for development of vocational training
48
courses in universities, which are centres of educational excellence. The advanced technical
units, established in senior high schools, prepare students in two years for the advanced
technical diploma designed for entering working life. The tertiary-level colleges of technology,
which are part of the university system, prepare students in two years for the tertiary
technical diploma. Having completed either of these, young people may prepare for a tertiary
level diploma, a diploma which allows them to improve their level of vocational qualification.
The apprenticeship: This prepares trainees for all the secondary-level certificates for tertiary-
level qualifications as well as for vocational qualifications registered with the National
Vocational Certification Register and certificates created by specific vocational sectors. The
apprentice has the status of employee. Training takes place both within the enterprise and in
an apprentice training centre for a duration of one to three years.
The framework for apprenticeship is an employment contract between a young person aged
16-25 (the apprentice) and an employer. Funding for the apprenticeship system comes from
the apprenticeship tax paid by private-sector employers (except those in the professional and
farming sectors), and from contributions from the State and the regions.
Continuing Vocational Training (CVET)
The objectives of CVET are many: to help people find or return to work, to remain in
employment, to develop their skills and acquire different levels of vocational qualification, to
enhance their earning power and to improve their cultural and social circumstances. The
responsibility for training as well as means of access and funding differ according to the status
of those concerned: jobseekers or people in work (private-sector employees, civil servants,
self-employed persons). The training of jobseekers is essentially the responsibility of the
regions, with the State intervening purely for target groups (prisoners, illiterate persons,
foreigners. and people with disabilities). Employers (private or public) and the social
partners are responsible for training employees.37
Best Practices from France:
As part of its drive to achieve the best possible match between the economy and
employment, the Government tries to anticipate economic, social and demographic change.
37 Spotlight on VET France: European Centre for development of vocational training
49
Various measures have been taken to this end in cooperation with the employment service –
the partners involved include the National Employment Agency (ANPE), the National Adult
Vocational Training Association (AFPA), the ASSEDIC unemployment insurance funds and, at
territorial level, regional and department authorities, groups of companies, local labour
market areas, centres of competitiveness and the social partners. Government initiatives to
anticipate qualifications and skills requirements fall under two headings: prospective studies
contracts on the one hand and employment and skills development activities on the other.
Prospective Studies Contracts: The prospective studies contract scheme enables the
Government and the social partners to produce a joint analysis of the state of a given sector
and measures that could be taken there. The cost of the scheme is shared.
Two principles underpin the CEP scheme:
• A contract links the social partners and the Government, which covers on average 50 % of
the expenditure entailed;
• The social partners and the Government jointly select the operators involved.
In 2006, prospective studies contracts were put in place for the following sectors: mutual
associations, caretaking, dispensing chemists, construction, the chemical industry,
entertainment, call centres and wholesale distribution.
Employment and Skills Development Activities: Employment and skills development
activities (actions de développement de l’emploi et des compétences or ADEC) are intended
to help people in jobs (waged or self-employed) to adapt and expand their skills and have
them recognised, and to become more employable within or beyond the company or sector
where they are currently working. The main beneficiaries are workers who have become
vulnerable due to changing employment patterns: blue-collar and white-collar employees
with lower levels of qualification, experienced employees (aged 45 and over) who are in the
latter half of their careers, and employees in companies with fewer than 250 staff, especially
very small companies.
Certification and Assessments:
Validation of Experience: This has the aim of enabling all working people (employees,
jobseekers, volunteers) to access the range of existing qualifications, thus
facilitating the use of training routes, making experience evident and transferable.
50
Certification: The device of the Validation of Acquired Experience allows obtaining all or part
of a qualification (diploma, professional title or certificate of qualification) on the basis of
professional experience employee, self-employed (trader collaborator trader, professional,
farmer or craftsman) and / or volunteer (trade unions, associations) and / or voluntary. This
experience, in conjunction with the certification referred to, is validated by a
jury. Certifications, registered in the National Directory of Professional Certifications
(RNCP) are accessible by VAE.
Validation of Formal Learning: Most qualifications in the French system of vocational
certification are national diplomas issued under the authority of the State, the main issuing
body being the Ministry of Education. Vocational diplomas break down into certification units.
Each level of testing represents one or more units, and students can accumulate units over
time.
Validation and Recognition of Non-Formal and Informal Learning: Recognition of skills and
experience: Recognition of skills and experience is understood to cover all the practices and
procedures that contribute at different times of an individual’s life (specifically when he or
she embarks on training, or enters or changes employment) to building and presenting a
picture of his or her knowledge, expertise and potential, in some cases with a view to their
validation. Unlike validation of skills and experience, recognition is not an official procedure.
There is, however, a specific tool that can facilitate recognition – namely skills assessment.38
Validation of Skills and Experience: The aim of skills and experience validation procedures is
to enable a competent authority (in most cases the Government) to issue an officially
recognized diploma, qualification or certificate. Apart from those cases covered by the Act of
26 January 1984, setting out conditions for the validation of studies, work experience or
personal expertise with a view to accessing various levels of higher education, skills and
experience validation consists chiefly of validating skills with a view to certification.39
38 Vocational Education and training in France; European Centre for development of vocational training 39 Vocational Education and training in France; European Centre for development of vocational training
51
International Collaboration
It established the National Vocational Certification Register, thus making for greater
transparency between French qualifications and those of other European countries and the
European Qualifications Framework. It has set up a national agency to implement the lifelong
education and training programme, thus encouraging mobility for training purposes (by high
school pupils, apprentices, workers, job-seekers and trainers, for example) as well as use of
the Europass system.40
France also receives EU Co-financing from the European Social Fund and the Regional
Development Fund, as its four overseas regions continue to qualify for aid under the
convergence criteria.
40 Vocational Education and training in France; European Centre for development of vocational training
52
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***End of Report***