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7.4 Characteristics of a pro-poor training system

Guest post by: International Labour Organization

Article Overview: Many of the key characteristics of market-driven VET reform strategies can and should be incorporated into the design of pro-poor training strategies. In particular, the state should perform a largely regulatory and facilitatory role while actual training provision should, wherever possible, be contracted out to independent training providers. The state must, therefore, take primary responsibility for the funding of such a strategy and, in consultation with the major stakeholders, take the lead in the overall design of the strategy with clear priorities and related resource allocations.

7.4 Characteristics of a pro-poor training system

Many of the key characteristics of market-driven VET reform strategies can and should be incorporated into the design of pro-poor training strategies. In particular, the state should perform a largely regulatory and facilitatory role while actual training provision should, wherever possible, be contracted out to independent training providers. The state must, therefore, take primary responsibility for the funding of such a strategy and, in consultation with the major stakeholders, take the lead in the overall design of the strategy with clear priorities and related resource allocations.

There are clearly limits, however, with respect to the capacity of the state to perform these functions effectively, on the one hand, and the role of competitive training markets, on the other. Training reforms in Chile are frequently held up as a good example of a privatised training system with a strong focus on the unemployed and other disadvantaged groups. And yet, as noted earlier, the replicability of this reform model may be quite limited, particularly in low income developing countries.

Recent wide-ranging reforms of national vocational training systems in South Africa and Tanzania demonstrate the range of problems, both with respect to the design and implementation of new policies and practices, that have to be surmounted (see Boxes 13 and 14). The attempt by the World Bank to introduce training vouchers for informal sector operators in the informal sector in Kenya also highlights the need for strong institutions if competitive training markets are to function properly (see Box 15).

More generally, the capacity of the state to tackle mounting social exclusion is being called into question. Alternative and complementary systems of support for the poor must, therefore, be found which rely mainly on community and private sector initiatives. The ILO, for example, refers to this new strategy as "social economy" with new partnerships of "co-operatives, mutual societies, and other non-profit organisations" spearheading a process of community development (see ILO, 1998).

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

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Article Tags: co operatives, complementary systems, disadvantaged groups, independent training, informal sector, mutual societies, new strategy, private sector initiatives, reform model, reform strategies, related resource, replicability, resource allocations, social economy, social exclusion, take the lead, training providers, training strategies, vet reform, vocational training



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