Public Private Partnerships in Vocational Education – experiences from Russia and Ukraine

1. Public Private Partnerships in Vocational Education – experiences from Russia and Ukraine Fourth ECA Education Conference Timo Kuusela Tirana, 26 October 2007

2. Conceptual issues: • Reasons for partnership • Government objectives for VET • Policy instruments and reasons of governments for PPP • Funding • Providers Evolution of PPPs in Russia and Ukraine • Constraints • Socio-economic development vs. VET strategies • PPP examples • Future developments and options

3. Partnership - based on mutual interest, benefit and trust • Reasons for partnership: • Same background • Common characteristics • Common failings • Similar degrees of funding • Need for an integrated approach • Regulation • Cost sharing

4. Objectives for Government in vocational education • Access/equity: people with varying financial resources and needs have access to VET • Quality: appropriate quality standards are attained • Social/economic: public resources are used to support employment, economic development and creation of a well-educated community

5. Policy Instruments Funding: Governments can purchase goods and services for people Ownership: Governments can create and own the providers of services Regulation: Governments can enhance or obstruct certain developments Information: Governments can provide information and guidance to allow for informed choice

6. Rational of government for PPPKey questions about expenditure: • The appropriate level of funding • Availability and targeting of public funding • If public funding is directed at students or institutions (demand vs. supply) • If public funding is available for public or private institutions • Should the government pay (for everything)?

7. Rational of government for PPP Rules and regulations on training providers: • How providers are established • How providers are resourced • Fiscal treatment of providers • How providers are governed and managed • The operational flexibility of providers • Accountability of providers • The review process and quality assurance of providers

8. Constraints to implementation of PPP in Russia and Ukraine • Lack of traditions • Political sensibilities • Capacity of the government to develop PPPs – ability of the private sector to act in tandem and in a coordinated way • Lack of resources • Bureaucracy and absence of legal framework enhancing partnerships • Lack of incentives from both sides- inert VET systems • Limited demand and low prestige

9. Trends and government strategies in VET In 1990ies: • Education policy priorities in general and higher education • Limited socio-economic pressures on VET programmes • No need for change • Survival strategy “ keep the VET system alive” ► survival game of schools: • Obsolete professions • Underfinancing • Worsening infrastructure, relevance and image • (Increasing) social function • Nevertheless, various initiatives at school level

10. Trends and government strategies in VET In 2000 - >: • Social partnership appears in rhetorics of VET community • Decentralisation from national to regional level (Russia) • Gradual upgrade of existing infrastructure and institutions without major changes in objectives of VET or involvement of stakeholders • Government remains the main provider and financier of (initial) vocational education • Increasing pressures from economy and labour market (lately)

11. PPP examples • VET Advisory Councils in the regions (since 1998 in Russia) • demand analysis -> better planning of VET delivery • School Boards of Trustees (in Russia) • Upgrade of equipment and facilities • Practical training in enterprises • Joint curriculum development • Placement of VET teachers in enterprises • No real management boards • Enterprises provide work-based learning opportunities (in Ukraine) • around 700 licensed and accredited providers (1036 public VET schools)

12. PPP examples • Activation of Employer Organisations • Initiative of the Federation of Restaurateurs and Hoteliers (Russia) • New qualification framework for the catering sector • New occupational standards developed by employers • National Qualification Agency (NARK) established by the Russian Union of Employers and Industrialists • Coordinates and sets the procedures for the development of occupational standards in economic sectors • Providers guidance and information on qualifications • Maintains the national registry of occupational standards • Endorses the national education standards (upon request of the Ministry of Education) • Cooperation agreements with education authorities • Initiatives of employers on co-ownership and co-management of public training institutions – legal barriers yet to be solved

13. Lessons learnt so far • A lot of efforts based on enthusiasm and done at school level – with varied success • Limited effect on systemic level • Existing or emerging partnership initiatives are yet to be institutionalised and supported by adequate regulatory framework • Private sector contributes financially but not involved in governance or management of VET

14. Future vision to increase PPPs • Increasing socio-economic pressures will push the governments to change the paradigm of VET and increase PPPs • Need for new skills strategies • Demographic situation, etc • Changes in governance and financing of VET • Co-financing and co-management of public training institutions • New financing schemes (from input to output financing) • Further decentralisation • Increasing institutional autonomy • Alternative ways to organise VET • Work-based learning (could be co-financed and organised by the governments) • Empowerment of social partners to increase the quality and relevance of VET (NQF examples)