Fourth ECA Education Conference Financing VET Fourth ECA Education Conference Jean-Raymond Masson Tirana, 26 October 2007 12/11/2018

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) 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 » 12/11/2018

Ensure adequate funding of adult education and CVET 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 12/11/2018

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 12/11/2018

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 12/11/2018

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 12/11/2018

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 12/11/2018

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 12/11/2018

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 12/11/2018

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) 12/11/2018

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 12/11/2018

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 12/11/2018

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’ 12/11/2018

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 12/11/2018