3.1.2 Training for the formal sector: Training priorities, resources and reorientation
3.1.2 Training for the formal sector: Training priorities, resources and reorientation
There is a mass of evidence that demonstrates convincingly that good quality, relevant training does make a major difference to improving the productivity of formal sector enterprises, especially those producing tradable goods where attaining international competitiveness is critical for sustained export-led growth. In contrast, training needs for MSE are often difficult to identify and effective training demand in many activities remains limited. It is hardly surprising, therefore, that most governments are reluctant to alter significantly resource allocations in favour of the informal sector.
These new demands for increased training provision come at a time when budgetary support for public training institutions in many countries has been declining rapidly as a consequence of stringent fiscal belt-tightening. As a consequence, core VET institutions have had their work cut out just finding ways to maintain their current training activities, let alone think about developing training for clienteles who are generally unable to pay. With increased de facto and/or de jure autonomy, public sector training institutions are seeking to generate new sources of revenue from both enterprises and individuals. Unless, therefore, governments and other donors make available earmarked funding for training the poor, it is unlikely that these institutions will reorient their training activities in support of these groups.
Another important consideration is that the design and delivery of training for the formal sector tends to be relatively straightforward compared to training for the poor which, typically, needs to be closely integrated with other support measures which are usually provided by other institutions. These additional costs and risks of providing training for the poor can be a major disincentive for public training institutions.
In many countries (particularly in Latin America), the funding of public sector training institutions relies to a large extent on training levies collected from registered, formal sector enterprises. This has meant that governments have often felt constrained in the extent to which levy resources can be 'diverted' to meet the training needs of informal sector enterprises, nearly all of whom make no levy contributions (see Castro, 1996).
EMPLOYMENT AND TRAINING
PAPERS
43
Learning to change: Skills
development among the
economically vulnerable and
socially excluded in
developing countries
Paul Bennell
Employment and Training Department
International Labour Office Geneva
First published 1999
312 Training for the formal sector Training priorities resources and reorientation - To learn more about this author, visit International Labour Organization's Website.
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Despite oft-repeated government pronouncements about the need for concerted efforts to improve the skills of the poor, responding to formal sector training needs has remained the top priority for most public sector training institutions during the 1990s. If anything, this bias has increased during the last decade as concerns have mounted about the need to re-shape training systems to meet the challenges of new (post-fordist) production and organisation technologies, international competition, and globalisation. Recognition that international comparative advantage in most of the key growth sectors is now largely determined by human resource endowments means that training systems must be at the forefront of the process of skills-driven economic modernisation. In short, the need to ensure national inclusion in a rapidly globalising economy has taken precedence over the continued exclusion of the poor from training provision.
There is a mass of evidence that demonstrates convincingly that good quality, relevant training does make a major difference to improving the productivity of formal sector enterprises, especially those producing tradable goods where attaining international competitiveness is critical for sustained export-led growth. In contrast, training needs for MSE are often difficult to identify and effective training demand in many activities remains limited. It is hardly surprising, therefore, that most governments are reluctant to alter significantly resource allocations in favour of the informal sector.
These new demands for increased training provision come at a time when budgetary support for public training institutions in many countries has been declining rapidly as a consequence of stringent fiscal belt-tightening. As a consequence, core VET institutions have had their work cut out just finding ways to maintain their current training activities, let alone think about developing training for clienteles who are generally unable to pay. With increased de facto and/or de jure autonomy, public sector training institutions are seeking to generate new sources of revenue from both enterprises and individuals. Unless, therefore, governments and other donors make available earmarked funding for training the poor, it is unlikely that these institutions will reorient their training activities in support of these groups.
Another important consideration is that the design and delivery of training for the formal sector tends to be relatively straightforward compared to training for the poor which, typically, needs to be closely integrated with other support measures which are usually provided by other institutions. These additional costs and risks of providing training for the poor can be a major disincentive for public training institutions.
In many countries (particularly in Latin America), the funding of public sector training institutions relies to a large extent on training levies collected from registered, formal sector enterprises. This has meant that governments have often felt constrained in the extent to which levy resources can be 'diverted' to meet the training needs of informal sector enterprises, nearly all of whom make no levy contributions (see Castro, 1996).
EMPLOYMENT AND TRAINING
PAPERS
43
Learning to change: Skills
development among the
economically vulnerable and
socially excluded in
developing countries
Paul Bennell
Employment and Training Department
International Labour Office Geneva
First published 1999
312 Training for the formal sector Training priorities resources and reorientation - To learn more about this author, visit International Labour Organization's Website.
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John BrennanJohn Brennan Ed.D. Dr. Brennan is President of Interpersonal Development, LLC, a training and development firm. Interpersonal Development has provided sales training and coaching to more than 3,000 sales reps from over 100 companies. A native of Australia, Dr. Brennan received his doctorate from the University of Rochester. His dissertation researched the effectiveness of Behavioral Modeling Technology in training people in interpersonal skills. While he has spent most of his career designing or delivering training, he was also a Vice-President of Sales of a training and development franchise with operations in 25 markets. Dr. Brennan has designed and delivered sales training in North America, Asia, Europe, Australia and the Middle East. He has been a guest speaker at numerous national and regional professional conferences. When Microsoft wanted Best Practices articles on sales for their web site, they called Dr. Brennan. The results are at http://office.microsoft.com/en-us/FX011387391033.aspx His firm’s clients have included Volvo, The Prudential, Merrill Lynch, Eastman Kodak, Gannett, Equifax Europe, the Economist Group and countless small businesses. - Visit John Brennan's Website |
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Cheryl MatthynssensCheryl is a life skills coach, licensed Chemical Dependency Counselor and a 20 year entrepreneur. Cheryl's dedication to achieving a life of balance led to her expanding her teaching from the simple managing of life's daily challenges to adding financial well being as well. A direct marketer with DrinkACT, she is gaining ground in the online community with her concepts of making sure business owners, entreprenuers and employees have well rounded life styles. She opened up a small affiliate site - The Balance Guide- to help others find resources for mental and emotional well being. Visit Cheryl's blog to see more of the diversity beyond business she has began offering online at www.thebalanceguide.blogspot.com - Visit Cheryl Matthynssens's Website |
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