1. Findings from forthcoming regional flagship report Skills, not just diplomas Findings from forthcoming regional flagship report Lars Sondergaard May 6, 2010

2. Innovation requires skills  Why a session on skills? Future growth will depend more on improving competitiveness and labor productivity This requires innovation Innovation requires skills 2

3. Messages and structure of presentation  What skills are we talking about? Broad set of skills: cognitive, social and life skills  How well are education and training systems doing? Expanding access Providing skills for all  What can countries do to improve? Provide better information on quality of education Relying more on incentives to steer sector 3

4. Complex skills are needed and all workers need them 4 Source: European Survey of Working Conditions 2005

5. 5

6. There is broad agreement on the skills needed to succeed in work and life 6 Source: OECD (2005): Definition and Selection of Competencies (DeSeCo) Project

7. Good news: more diplomas are being issued 7 Source: World Bank Edstat

8. But quality indicators suggests ECA countries are falling behind 8 Source: OECD PISA 2006 1 year behind 2-3 years behind 3-4 years behind Science MathReading OECD avg

9. Too many students are functionally illiterate 9 Source: OECD PISA 2006

10. Students say they are not getting the right skills 10

11. Fraud, corruption and unethical behavior – widespread? (*) Data for Kyrgyz Republic is a based on a slightly different question: students were asked if they had “personal experiences with corruption and bribery in their university”. 11 Source: Heyneman, Stephen P. Kathryn H. Anderson, and Nazym Nuraliyeva (2007)

12. Employers agree: they listed “skills” as a main constraint before the crisis 12 Workers' skills had become a constraint on firm expansion by 2008. (percent of firms considering factor a 'major' or 'very severe' constraint) Source: Turmoil at Twenty, World Bank, 2009

13. Quality assurance mechanisms are in their infancy

14. When agencies start flexing their muscles, the news hasn’t been good 14

15. Let’s face it: we know very little about who succeeds and who fails  Unhealthy tendency to focus on excellence, rather than the quality achieved by all  What do we really know about the quality of tertiary education when it comes to creating skills? Which institutions are truly great at imparting skills to their students?  What happens to students after they graduate? 15

16. In the dark… …all individuals, institutions and systems look the same… But with a little light….

17. But with a little light…. …important differences become apparent…. In the dark… …all individuals, institutions and systems look the same…

18. Example of important unknown  There are around 35 HE institutions teaching economics in Kiev: 20 private and 15 public Student’s perspective: which institution does a better job at teaching me the skills I need to succeed? (selectivity ≠ high quality teaching) Employer’s perspective: which students outside of the prestigious institutions have skills? Policy maker’s perspective: which institution is performing well? Which institution need sanctions/rewards/support? 18

19. The distribution matters! Academic growth of students Limited academic gains Solid academic gains Significant academic gains 19 Dramatic academic gains & impact

20. Slow start in measuring results! 20 Not started/ very early stages/no or rare participation in international assessments Early piloting of own assessment instruments, some participation in international assessments Several years of experience with own assessments and regular participation in international assessments Several years of experience in measuring, analyzing and making use of learning results to improve education policy Bulgaria Estonia Georgia Romania Serbia Slovenia Albania Bosnia & Herz. Croatia Hungary Latvia Lithuania Macedonia Moldova Montenegro Poland Russia Tajikistan Ukraine Armenia Azerbaijan Belarus Czech Republic Kazakhstan Kosovo Kyrgyz Republic Slovak Republic Turkey Turkmenistan Uzbekistan

21. What can policy makers do better?  Turn the lights on! Measure, analyze, disseminate and use results for policy making  Different role for central policy makers: less micro-management and more focus on steering 21

22. Turning the lights on! Collecting data Analyzing and disseminating Using results for decision making 22 Tracer studies Quality of tertiary Quality of vocational education Quality of training Performance- informed budgeting Linking incentives to results

23. Use information on results to steer  More autonomy in exchange for results  Use financing as an instrument: tie resources to results  Increasing accountability for results 23 Accountabi lity Financing Autonomy

24. Steering involves a balancing act among three instruments Innovation Compliance AccountabilityFinancingAutonomy 24

25. Don’t rely on only one way to strengthen accountability  Accountability through accreditation and quality assurance… but this takes time!  Accountability through information and transparency: rankings, performance tables, tracer studies  Accountability through partnerships with civil society and students 25

26. Better use of sector’s resources is needed to pay for better quality 26

27. The right policies can have a big impact 27 Reform years

28. How can we help creating skills for innovation?  For more information on presentation and report: contact lsondergaard@worldbank.org lsondergaard@worldbank.org  For technical and/or lending support to strengthen skills creation: contact Mamta Murthi, Sector Manger, mmurthi@worldbank.org mmurthi@worldbank.org 28