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Financing VET

Financing VET . Fourth ECA Education Conference Jean-Raymond Masson Tirana, 26 October 2007. EU messages on financing education and training and VET. Lisbon strategy: “ Call for a substantial annual increase in per capita investment in human resources” (2000)

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Financing VET

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  1. Financing VET Fourth ECA Education Conference Jean-Raymond Masson Tirana, 26 October 2007

  2. EU messages on financing education and trainingand VET • Lisbon strategy: “Call for a substantial annual increase in per capita investment in human resources” (2000) • With 5.2% GDP (2004), EU public spending on E&T comparable to its competitors, but clear deficit in private funding compared to the US (3 times) and Japan (2 times) particularly in HE and in CVT • Helsinki Communiqué (Dec 2006): « Improving public and private investment in VET through the development of balanced and shared funding and investment mechanisms »

  3. Council Conclusions on “efficiency and equity in European education and training systems” (dec 2006) Main messages to member states • Adapt present arrangements for funding E&T to ensure both efficiency and equity • Ensure efficient targeting of reforms and investment by focusing on pre-primary education, targeted early interventions and equitable E&T systems • Ensure adequate funding for human resources and where appropriate increase public funding and encourage greater complementarity private contributions to secure more equitable access to HE • Ensure adequate funding of adult education and CVET • Encourage research into the outcomes of education reforms and investments and into their social benefits

  4. VET financing context in ETF partner countries • Adapting VET to new challenges is costly but limited public and private resources • Poor attractiveness, VET quality is at stake • VET looses students when there are skill shortages at medium level • VET provides better transition to work and plays crucial role in labour market integration of young people • Little participation of adults in CVT • VET reforms in all countries, often donor led

  5. Situation in the Western Balkans from ETF experience (1) • VET financing high in political agendas • Although IVET has a subtantial share of public expenditure for education, VET schools lack resources • Budgets based on ‘historical costs’ more than on strategic objectives • Gaps between planned and realised budgets • Still rigid procedures in centralised system

  6. Situation in the Western Balkans from ETF experience (2) • Ambiguities and problems related to decentralisation • Little school autonomy • Income generation of schools not transparent • Little tax incentives • Little participation in CVT and low funding for labour market training in the context of high unemployment

  7. Recommendations from ETF experience in the Western Balkans 1 Improve governance and develop partnership 2 Increase motivation and accountability 3 Target inefficiencies 4 Attract more funding 5 Develop equity

  8. Improve governance and develop partnership • Interministerial coordination • Consider VET specificities in education systems, and its links with other components and embed VET in lifelong learning strategies • Deconcentration and decentralisation if needed (for what purpose? at which level?) • Involve businesses and social partners in IVET and CVET developments at all levels • Encourage private providers • Develop partnerships: public/private, national/regional or local

  9. Increase motivation and accountability • Greater autonomy for schools • Incentives for improving teachers’ performance • Moving towards output based / performance based funding • Additional activities through co-financing schemes and free access to local market But under conditions • Commercial activities should not enter into conflict with education/training role • Develop accountability and reporting

  10. Target inefficiencies • Promoting transparent and flexible mechanisms • Introducing quality assurance principles and instruments • Restructuring VET schools networks • Optimising teachers/pupils ratios • Avoiding duplication of public training centers • Targeting beneficiaries according to social and economic objectives (economic sectors, SMEs, low skilled, Roma, specific groups, etc)

  11. Increase funding • Set up benchmark for public funding in the context of development strategy • Combine national and local/regional strategies, introduce co-financing schemes • Introduce incentives for businesses and individuals (tax deductions, payroll tax aimed at training funds, ILAs, vouchers, training leave, etc) • Develop schools’ own resources

  12. Promote equity • Use quality assurance indicators • Make equalisation funds effective • Combine different instruments according to objectives • Target beneficiaries according to social and economic objectives • Make more effective use of labour market measures

  13. The challenge As said during the ETF project in 2006 by one national stakeholder: ’We have quite complex and sometimes incompatible recommendations but not the habits and infrastructure to realise them’

  14. Thank you for your attention ! ETF: www.etf.europa.eu e-mail : jrm@etf.europa.eu European Commission, DG Education and culture: http://www.europa.eu.int/comm/dgs/education_culture/index_en.htm

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