TCC ǀ WORKFORCE DEVELOPMENT SABER REPORT |2016 Turkish Cypriot Community SABER Report WORKFORCE DEVELOPMENT 2016 , Status Strategic Framework While political support for workforce development (WfD) as an asset for economic progress is strong, and the roles and responsibilities of key stakeholders are clear, the influence of businesses and industries in shaping and implementing workforce development priorities is limited. Though the Turkish Cypriot community (TCc) has been partnering with international donors to improve its workforce development system, assessments are not conducted routinely on the community's economic prospects and their implications for skills. Besides, the law does not provide for skills upgrades in the informal sector. System Oversight Equity and efficiency of funding is an issue for the community, as no strong linkages exist between the allocation of funds and the performance of service providers. Besides, the funding of educational institutions has generally not been supplemented by other sources. While competency standards exist for most occupations, the community should continue benefitting from European Union alignment, and institutionalize clear and attainable standards for domestic quality-assurance systems. Service Delivery Performance targets for public training providers and corresponding incentives for meeting those targets are currently underutilized. Bad performers are not informed or incentivized to improve their functioning. The availability and use of policy-relevant data is very limited, and monitoring and evaluation are not given the deserved attention. Establishing an integrated Management Information System for employment and education inputs and outcomes could serve as a first step toward developing an evidence-based, strategic-thinking environment for the Turkish Cypriot community. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 1 TCC ǀ WORKFORCE DEVELOPMENT SABER REPORT |2016 This study is part of the Economic Analysis Programme for Growth and Sustainable Development which is funded through the European Union’s aid regulation “Council Regulation (EC) No. 389/2006” of 27 February 2006. The opinions expressed in this study do not reflect the official opinion of the European Commission or the World Bank’s Board of Executive Directors, nor do they in any way constitute recognition of boundaries or territories. Table of contents Executive Summary ..............................................................................................................................................4 Acronyms ............................................................................................................................................................. 6 1. Introduction .....................................................................................................................................................7 Analytical Framework ......................................................................................................................................7 2. Context .............................................................................................................................................................9 3. Key Findings and Policy Implications .............................................................................................................12 Overview of the SABER-WfD Assessment Results .........................................................................................12 Policy Implications of the Findings .................................................................................................................13 4. Aligning Workforce Development to Key Economic and Social Priorities .....................................................16 Socioeconomic Aspirations, Priorities and Reforms ......................................................................................16 SABER-WfD Ratings on the Strategic Framework ..........................................................................................18 Implications of the Findings ...........................................................................................................................23 5. Governing the System for Workforce Development .....................................................................................25 Overall Institutional Landscape......................................................................................................................25 SABER-WfD Ratings on System Oversight ......................................................................................................26 Implications of the Findings ...........................................................................................................................30 6. Managing Service Delivery .............................................................................................................................31 Overview of the Delivery of Training Services ...............................................................................................31 SABER-WfD Ratings on Service Delivery ........................................................................................................32 Implications of the Findings ...........................................................................................................................35 Annex 1: The SABER-WfD Analytical Framework...............................................................................................37 Annex 2: Rubrics for Scoring the SABER-WfD Data............................................................................................38 Annex 3: SABER-WfD Scores ..............................................................................................................................47 Annex 4: Experts ................................................................................................................................................48 List of Interviewees .......................................................................................................................................48 SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 2 TCC ǀ WORKFORCE DEVELOPMENT SABER REPORT |2016 Participants of the Data-collection and Validation Workshops .....................................................................48 Acknowledgements............................................................................................................................................50 References .........................................................................................................................................................50 SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 3 TCC ǀ WORKFORCE DEVELOPMENT SABER REPORT |2016 Executive Summary For the last 50 years, the Turkish Cypriot community (TCc) has remained outside the effective control of the Government of the Republic of Cyprus (RoC). The community displays typical characteristics and challenges of a small island economy, and after years of rapid growth and income convergence, it is unlikely to replicate its pre-2009 economic performance in the medium term. While the overall unemployment rate declined to 8.4 percent in 2013, labor market indicators such as employment rates and participation have not benefitted enough from the period of high growth and convergence, and some vulnerabilities have emerged. The community’s public sector, which accounts for about 30 percent of total employment, provides employees with generous benefits and thereby attracts large number of well-educated Turkish Cypriots. However, the private sector tends to generate low-paying, low value-added jobs, mostly in small, family-run firms, making it a fairly unattractive option to the large pool of local unemployed youth, recent graduates, and inactive people. Sound macroeconomic policies and structural reforms, thus, become all the more crucial if the community is to regain the growth momentum of the early-2000s and address some of the labor market issues described above. Structural reforms should, among other things, aim to remove barriers to an expanding private sector, and strengthen domestic and external market competitiveness. To do this, the Turkish Cypriot community needs to better align its workforce and workforce development (WfD) policies to the needs of the labor market and of the private sector in particular. The study benchmarks policies and practices in the community’s workforce development system against international good practices. Specifically, it assesses policies, practices and institutional arrangements, and identifies measures that contributed to workforce development. The study takes advantage of the World Bank’s workforce development diagnostic tool, which is part of the Systems Approach for Better Education Results (SABER) initiative. The SABER-WfD assessed three broad functional dimensions of the community’s workforce development policies based on a collection of primary and secondary evidence on performance in these three areas: strategic framework; system oversight; and service delivery. The strategic framework dimension is concerned with setting the direction and overall authorizing environment for workforce development. While political support is strong for viewing workforce development as an asset for economic progress, and the roles and responsibilities of key stakeholders are clear, businesses and industries have limited influence in shaping and implementing workforce development priorities in the Turkish Cypriot community. Employers are only involved in defining such priorities on an ad hoc basis. Community administrations have been partnering with international donors to improve the system, but assessments of the community’s economic prospects and their implications for skills are not conducted routinely. Besides, laws and regulations make it impossible for informal sector workers to participate in any skills-upgrading program. System oversight refers to the standards and quality assurance that guide the functioning of the system. The results reveal that equity in funding is an issue for the community, as no strong linkages exist between the allocation of funds to education institutions and their performance. Besides, funding of educational institutions has generally not been supplemented by other sources. Competency standards exist for most occupations. However, domestic quality-assurance systems need improvement. Service delivery refers to how training is conducted to equip individuals with market and job-relevant skills. The influence of “non-public” stakeholders over training curricula is ad hoc, and almost no incentives exist for public and private service providers to meet quality standards. The availability and use of policy-relevant data are very limited, and Monitoring and Evaluation (M&E) activities are not given the deserved attention. Establishing an integrated Management Information System for employment and education inputs and outcomes could comprise the first step toward developing an evidence- based, strategic-thinking environment for the TCc. The main challenges facing the community in the coming years will be linking WfD to broader socioeconomic goals, and strengthening mechanisms for funding and quality assurance, as well as M&E programs and policies. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 4 TCC ǀ WORKFORCE DEVELOPMENT SABER REPORT |2016 Note to Reader: The contents of this document are the sole responsibility of its authors and should in no way be taken to reflect the official views of the World Bank or the European Commission financing this report. The term “Turkish Cypriot community” refers, solely for the purposes of this study, to the areas in which the Government of the Republic of Cyprus does not exercise effective control. If reference is made in the report to any “ministries,” “departments,” “services,” “bodies,” “organizations,” “institutions,” or “authorities” (quotation marks used) in the areas not under the effective control of the Government of the Republic of Cyprus, or respective acronyms or abbreviations are used, this is done to allow a clear factual understanding of the administrative structures in the Turkish Cypriot community, without intention to support any claims based on international law. Similarly, comparisons between the areas where the Government of Republic of Cyprus exercises effective control and those areas where it does merely reflect de facto operations. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 5 TCC ǀ WORKFORCE DEVELOPMENT SABER REPORT |2016 Acronyms ALMPs Active Labor Market Programs CEENQA Central and Eastern European Network of Quality Assurance Agencies in Higher Education CVET Continuing Vocational Education and Training DCI Data Collection Instrument ENQA European Association for Quality Assurance in Higher Education EQF European Qualifications Framework EU European Union FDI Foreign Direct Investment GDP Gross Domestic Product INQAAHE International Network for Quality Assurance Agencies in Higher Education IVET Initial Vocational Education and Training LFP Labor Force Participation LLL Lifelong Learning M&E Monitoring and Evaluation METGE Developing Technical Vocational Education and Training (Mesleki ve Teknik Egitimin Gelistirilmesi) “MoLSS” “Ministry of Labor and Social Security” “MoNE” “Ministry of National Education” NGO Non-governmental Organization NQF National Qualifications Framework OECD Organisation for Economic Co-operation and Development OJT On-the-job Training OLE Observatorio Laboral para la Educacion RoC Republic of Cyprus SABER Systems Assessment for Better Education Results SME Small and Medium Enterprises SNIES Sistema Nacional de Informacion de la Education Superior SPO State Planning Organization STEP Skills Toward Employment and Productivity TCc Turkish Cypriot Community TVET Technical Vocational Education and Training VET Vocational Education and Training VETLAM Development and Promotion of TVET Systems (VET-Labor Market) VQA Vocational Qualifications Authority WISE Workforce Improvement Skills Enhancement WfD Workforce Development YODAK Higher Education, Planning, Evaluation, Accreditation, and Coordination Council SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 6 TCC ǀ WORKFORCE DEVELOPMENT SABER REPORT |2016 1. Introduction percent, down from the 49.8 percent recorded in 2011 and considerably below EU average of about 58 percent. For the past 50 years, the Turkish Cypriot community The low participation rate can be attributed largely to (TCc) has remained outside the effective control of the poor female labor force participation. The employment Government of the Republic of Cyprus (RoC). The TCc rate is also low and declining, settling at 44 percent in economy, valued at an estimated US$3.9 billion in 2013, 2013, from 45 percent in 2011. is equivalent to about one-fifth that of the government- controlled areas of RoC. Slightly more than half of this Moreover, the TCc seems to suffer from a “dual labor disparity is explained by the difference in population: market.” The public sector, which accounts for more According to the latest census in 2011, the TCc than 30 percent of total employment, provides well- population totaled more than 286,000, about one-third paying jobs with strong benefits. The large number of the size of the RoC’s total population. The rest reflects well-educated Turkish Cypriots consider such jobs the the difference in per capita income between the two most appealing option. The hope of finding a public sides; the TCc average of US$13,280 in 2012 was slightly sector job likely resulted in an excess supply of college more than half that of the RoC. Still, that puts the TCc in degree graduates, and in a shortage of TVET graduates the high-income group, according to World Bank and youth with technical skills. On the other hand, the classifications. Despite the size difference between the World Bank team found1 that small firms tend to be two economies, incomes in the TCc have risen much engaged in low-productivity lines of work, featuring faster than those in RoC since the early-2000s. However, mostly low-paying, informal jobs that remain fairly much of this difference was driven either by unattractive options for local unemployed youth, recent unsustainable events in the TCc or crisis in the RoC. graduates, and inactive people. Before the global financial crisis hit in 2008-09, rapid Sound macroeconomic policies and structural reforms income convergence was fueled by a construction boom thus become all the more crucial to help the community sparked by unification talks under the Annan plan. regain the growth momentum of the early-2000s, and Continued income convergence occurring after the address some of the labor market issues described global financial crisis reflected the effects of a banking above. Structural reforms should, among other things, crisis in the RoC, which significantly slowed down its aim to remove barriers to an expanding private sector, economy. and strengthen domestic and external market Effectively shut out of international markets except competitiveness. To do this, the TCc needs to better align Turkey’s, the TCc displays typical characteristics and its workforce and its workforce development (WfD) challenges of a small island economy. After years of policies to the needs of the labor market and of the rapid growth and income convergence, the community is private sector in particular. unlikely to replicate its pre-2009 economic performance This study aims to assess the TCc’s overall WfD system. in the medium term, given the moderate growth Where shortcomings are identified, the study offers prospects of Turkey, on which the TCc’s economy is suggestions on how to improve the quality and relevance heavily reliant. of the skills produced by the community’s workforce Labor market indicators have not benefitted enough system, including TVET at the secondary and post- from the period of high growth and convergence. The secondary level, and on-the-job learning. overall unemployment rate declined to 8.4 percent in 2013 from 12.4 percent in 2009 (LFS 2014), but the trend Analytical Framework masks some vulnerabilities in the economy. In 2013, This report presents a comprehensive diagnostic of a youth unemployment totaled 23 percent, while Workforce Development (WfD) system’s policies and joblessness among women reached 34.7 percent, up institutions. The results are based on a World Bank tool from 32.3 percent in 2011 and three times higher than designed for this purpose. Known as SABER-WfD, the the 28-country European Union’s rate of 11 percent. tool is part of the World Bank’s initiative on Systems Labor force participation remained stubbornly low at 48 1 Information was collected through focus groups with employers, employability” study financed under the trust fund “Supporting Economic employees, unemployed and students as part of the “Barriers to Convergence of the Turkish Cypriot Community with the EU”. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 7 TCC ǀ WORKFORCE DEVELOPMENT SABER REPORT |2016 Approach for Better Education Results (SABER).2 Its aim Figure 1: Functional dimensions and policy goals in the is to provide systematic documentation and assess the SABER-WfD framework policy and institutional factors that influence the performance of education and training systems. The SABER-WfD tool focuses on initial, continuing, and targeted vocational education and training offered through multiple channels, and concentrates largely on programs at the secondary and post-secondary levels. The tool is based on an analytical framework3 that identifies three functional dimensions of WfD policies and institutions: (1) Strategic framework, which refers to the praxis of high-level advocacy, partnership, and coordination, typically across traditional sectoral boundaries, in relation to the objective of aligning WfD in areas Source: Tan et al. 2013. critical to national development priorities; (2) System Oversight, which refers to the arrangements governing funding, quality assurance, and learning Implementing the Analysis pathways that shape the incentives and information Information for the analysis is gathered using a signals affecting the choices of individuals, structured SABER-WfD data collection instrument (DCI). employers, training providers, and other The instrument is designed to collect, to the extent stakeholders; and possible, facts rather than opinions about WfD policies (3) Service Delivery, which refers to the diversity, and institutions. For each Topic, the DCI poses a set of organization, and management of training provision, multiple choice questions, which are answered based on both state and non-state, that deliver results on the documentary evidence and interviews with experts. The ground by enabling individuals to acquire market and answers allow each Topic to be scored on a four-point job-relevant skills. scale against standardized rubrics based on available Taken together, these three dimensions allow for knowledge on global good practice (Figure 2).5 Topic systematic analysis of the functioning of a WfD system as scores are averaged to produce Policy Goal scores, which a whole. The focus in the SABER-WfD framework is on are then aggregated into dimension scores.6 The results the institutional structures and practices of public are finalized following validation by the relevant national policymaking, and what they reveal about capacity in the counterparts, including the experts themselves. system to conceptualize, design, coordinate, and Figure 2: SABER-WfD Scoring Rubrics implement policies to achieve results on the ground. Each dimension is composed of three Policy Goals that correspond to important functional aspects of WfD systems (Figure 1). Policy Goals are further broken down into discrete Policy Actions and Topics that reveal more details about the system.4 Source: Tan et al. 2013. 2 For details on SABER, see http://www.worldbank.org/education/saber; Acknowledgement section for a list of those involved in data-gathering, for acronyms used in this report, see the acronyms list on page 6. scoring, and validation, and in report writing. 3 For an explanation of the SABER-WfD framework, see Tan et al. 2013. 6 Since the composite scores are averages of the underlying scores, they are 4 See Annex 1 for an overview of the structure of the framework. rarely whole numbers. For a given composite score, X, the conversion to 5 See Annex 2 for the rubrics used to score the data. As in other countries, the categorical rating shown on the cover is based on the following rule: a national principal investigator and his or her team gather the data, based 1.00 ≤ X ≤ 1.75 converts to “Latent”; 1.75 < X ≤ 2.50, to “emerging;” 2.50 on the sources indicated in Annex 4. The data is then scored by the World < X ≤ 3.25, to “established;” and 3.25 < X ≤ 4.00, to “advanced.” Bank’s SABER-WfD team. See Annex 3 for the detailed scores, and the SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 8 TCC ǀ WORKFORCE DEVELOPMENT SABER REPORT |2016 The report summarizes the key findings of the SABER- economy’s main access point to the international WfD assessment and also presents the detailed results financial system and market. On average, between 2000 for each of the three functional dimensions. To put the and 2012, exports from the TCc accounted for only 3.2 results into context, the report begins below with a brief percent of its gross domestic product, with 7.5 percent profile of the TCc’s socioeconomic makeup. of that going to the European Union and half going to Turkey. Since 2004, the economy has been running a continuous current account deficit, largely financed via 2. Context7 transfers from Turkey. However, such close economic ties with Turkey, in the form of trade, transfers, and A small, closed economy, the TCc had a population of tertiary education students moving to the TCc and vice 286,000 in 2011, and enjoyed high growth throughout versa--and the ensuing lack of diversification of much of the 2000s. Between 2002 and 2006, its economy economic partners--mean that the TCc economy closely expanded at an average annual rate of 11.5 percent follows that of Turkey during both boom and bust much faster than the rate of the Greek Cypriot economy, periods. or of the European Union. This period of high growth Figure 3: Real GDP growth (% annual) came to a halt in 2007-2008, due to the global financial 20 crisis. Despite slower growth rates in the late-2000s and early-2010s, the TCc’s per capita gross national income 10 (GNI) rose to US$14,942 in 2014, from US$4,350 in 2001, , placing the economy in the group of high-income 0 countries, as defined by the World Bank.8 -10 The overall positive economic performance of the TCc over the last decade or so nevertheless masks deep Greek Cypriot economy structural problems, resulting in part from the “Cyprus Turkey issue,” making sustainable growth over the long run very challenging. Though the TCc and the RoC initiated a Source: World Bank staff, based on State Planning Organization data new process to find a mutually acceptable solution to the Cyprus issue, the current situation restricts the In 2014, the working age population in the TCc was community’s access to international markets for goods 231,424, and the labor force participation rate totaled and services. Moreover, banks in the TCc can only gain 48.6 percent.10 About 3,500 new entrants join the limited access to the international financial system and community’s labor force each year. With an employment only via Turkish institutions. Mostly because of these rate of 44.6 percent, 103,145 TCc residents were working constraints, over the last decade, economic in 2014 (representing an increase of 5,282 from 2013). development in the TCc has been highly uneven, with The unemployment rate in the TCc has been declining, rapid growth periods followed by abrupt slowdowns. dropping from 12.4 percent in 2009 to 9.7 percent in While volatility is somewhat common for small island 2011 and 8.3 percent in 2014. The unemployment rate economies, this pattern is considerably more for women, at 12.1 percent, is higher than the 6.3 accentuated in the TCc than in the Greek Cypriot percent rate for men. While in line with EU figures at an economy or Malta.9 aggregate level, the overall unemployment rate masks A further complicating factor, is the TCc’s reliance on stubbornly high youth unemployment, which totaled 23 Turkey. As shown in Figure 3, growth in the TCc has percent in 2013.11 followed Turkey’s economic developments in an amplified way. Turkey remains the main destination for the limited exports of the TCc, and it also serves as the 7 Drawn from the World Bank’s TCc Macroeconomic Monitoring Note, 10 This figure includes informal workers but omits foreign university January 2015. students living in the community, some of who may be working informally. 8 RoT, Aid Committee, Economic Situation in 2014, www.yhb.gov.tr. 11 RoT, Aid Committee, Economic Situation in 2014, www.yhb.gov.tr. 9 World Bank 2014, “Investment Incentives for Private Sector in the Turkish Cypriot Community: A Critical Overview.” SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 9 TCC ǀ WORKFORCE DEVELOPMENT SABER REPORT |2016 Table 1: Population and labor market in the TCc 2010 2011 2012 2013 2014 Population at employment age 213,954 215,784 215,009 221,419 231,424 Labor force 106,121 107,461 105,884 106.724 112.465 Employment 93,498 97,103 96,539 97,867 103,149 Agriculture (%) 5.7 3.7 4.0 5.0 Industry (%) 9.0 7.2 6.9 6.1 Services (%) 77.0 81.8 81.6 81.6 Construction (%) 8.3 7.3 7.5 7.3 Unemployed 9,713 9,522 9,174 8,929 9,320 Participation in labor force (%) 49.6 48.7 49.2 48.2 48.6 Employment rate (%) 43.7 45.0 44.9 44.2 44.6 Unemployment rate (%) 11.9 9.7 8.7 8.4 8.3 Unemployment rate – male (%) 8.9 8.0 7.2 6.3 5.8 Unemployment rate – female (%) 17.5 13.1 11.4 12.1 12.8 Unemployment rate – youth (%) 24.8 23/1 24.0 23.0 20.3 Source: Author’s rendering, based upon the State Planning Organization’s (SPO’s) “Mid-Term Program 2016-18” and “2010-2013 Macroeconomic and Sectoral Developments,” and the Republic of Turkey’s “Aid Committee, Economic Situation in 2014.” Labor force participation (LFP) is extremely low, mostly less than 5 percent in 2010, from almost 40 percent in due to limited female participation. Participation of men 2000 (Figures 4 and 5, and Table 1). in the labor force, at 66.6 percent, is twice that of women, at 33.4 percent. Students compose 30 percent Employment in the TCc is mostly concentrated in the of those not participating in the labor force, followed by service sector (80 percent), and in particular, in the retirees, at 20 percent, and women who opt to stay at “public” sector: State Planning Organization (SPO) home. figures show that in addition to its dominant role in generating value added, the TCc’s “public” The education level of the labor force is high in the TCc. administration is the largest employer, accounting for As of October 2014, the employed population was 18.9 percent of total employment in 2014. composed mainly of higher-education graduates (30.6 percent) and graduates of upper secondary schools (32.5 Figure 4: Composition of exports (% of total) percent). Only about 37 percent of the employed achieved eight years of education or less—10.4 percent 100 5.4 7.8 Minerals completed lower secondary (middle) school; 1.9 percent 9.0 80 4.2 completed basic education; 21.0 percent completed 38.3 Other primary school; and 3.6 percent had not completed 60 40.8 primary school, or never attended school at all). The Clothing education level of female workers is higher than that of 40 24.2 men in the TCc. While only 26.5 percent of male workers Processed had university and graduate degrees in 2014, 38.6 20 38.2 Agricultural Goods 31.7 percent of female workers had an equivalent degree.12 Agricultural 0 Products The TCc’s economy is dominated by the services sector, 2000 2010 which includes the public sector, trade, tourism, and education. The agricultural sector, which represents 5 Source: World Bank staff, based on SPO information. percent of total employment, accounts for the bulk of exports originating from the TCc; agricultural and Including the education and health sectors, the “public processed agricultural goods account for about 40 sector” accounts for almost one-third of total percent of exports. Reflecting the decline of the employment. Jobs in the “public sector” are widely industrial sector, which in 2010 accounted for less than viewed to pay well and to provide good benefits. This 10 percent of total employment in the community, clothing exports fell as a percentage of total exports, to 12 SPO, LFS 2014 SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 10 TCC ǀ WORKFORCE DEVELOPMENT SABER REPORT |2016 makes public sector jobs the most attractive high but evidence on student performance and employment option for the TCc. educational achievements is limited. Figure 5: Employment by sector in the TCc (% of total) As of 2014-15, some 50,000 students were enrolled in - 2013 public and private basic education and secondary education institutions (excluding private, non-formal 100.0 Agriculture 5.0 education). If students in the tertiary education system 90.0 6.1 Industry are included, the total reaches 125,000. The “public Construction sector” is the dominant service provider in primary and 80.0 7.3 secondary education, controlling approximately 85 Wholesale-Retail 70.0 percent of the market. 17.0 Restaurants, Hotels 60.0 While enrollment in basic and secondary education Transport and comm. remains steady, tertiary education enrollment 8.2 50.0 6.3 Financial Institutions increases every year. One reason is because TCc 3.5 universities offer attractive conditions for national and 40.0 Real Est. and Buss Serv. 6.1 international students, and tertiary education has 30.0 Public Administration 18.9 become a major export good. In fact, only 20 percent of 20.0 Educational Services students in tertiary education are from the TCc, with 10.3 Health and Social Serv. students from Turkey and other countries largely 10.0 2.9 accounting for the increase. 6.8 Other Community Services 0.0 TVET is provided only by public training institutions.13 Source: SPO, “Macroeconomic Indicators 2015.” Twelve secondary TVET schools operate in the community, with about 4,000 students and 19 fields of study offered. The two programs with the highest The TCc’s private sector is relatively small and focused number of TVET students in 2014 were accounting, on low value-added production, mostly concentrated in finance and marketing (470 students), and electricity and the service sector (Figure 5), and made up of family-run electronics (430 students). As most TVET graduates want micro and small enterprises. Working conditions differ to continue to a university program with the expectation considerably in the private and public sectors, with the of finding better jobs, the number of TVET graduates former characterized by infrequent application of labor doesn’t cover the needs of the TCc. regulations and little use of contracts. Low-skilled jobs in the private sector are mostly taken up by foreigners Non-formal education covers apprenticeship training, (most from Turkey); according to Labor Force Survey school of art, and training courses for women in data, foreigners account for about one-third of the TCc villages. Though a clear need exists for more workforce. The contraposition of the large, well-paying apprentices, only 400 students participated in “public” “public” administration with the low-productivity, small apprenticeship training programs in 2014. More than and medium-sized enterprises in the private sector 1,500 participated in courses for women in villages, but contributes to an image of the TCc’s labor market as a these programs do not aim to improve skills dual one in which human capital is not allocated in the development or increase women’s participation in the most productive way. labor force. The generally high level of education among the TCc’s The bulk of the education budget goes to tertiary youth likely worsens the duality, by further reducing education, with only about 10 percent spent on initial the appeal of the private sector. Evidence suggests that vocational education and training (IVET) activities. No Turkish Cypriot youth and their families invest heavily in budget allocation exists for the monitoring and education in general. According to the State Planning evaluation of initial vocational education programs, and Organization, enrollment rates in tertiary education are 13 Detailed explanation is provided under overall institutional landscape section. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 11 TCC ǀ WORKFORCE DEVELOPMENT SABER REPORT |2016 less than 5 percent of the budget allocations are used for The next section contains the SABER-WfD findings and investments in such programs. their policy implications by taking the summary of the context into consideration. Table 2: Number of students in the education system 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 Pre-Primary (Public) 4127 4254 4290 4297 4137 4021 Pre-Primary (Private) 1657 1975 1996 2203 2379 2739 Pre-Primary (Total) 5784 6229 6286 6500 6516 6760 Special (Public) 200 189 164 180 209 178 Primary (Public) 15450 15464 15049 14891 15229 15462 Primary (Private) 2247 2619 2863 3092 3340 3425 Primary (Total) 17697 18083 17912 17983 18569 18887 Lower Secondary (general, public) 9325 9237 9333 9037 8669 8344 Lower Secondary (general, private) 1187 1250 1263 1458 1475 1501 Lower Secondary (vocational) 194 303 Lower Secondary (Total) 10512 10487 10596 10495 10338 10148 Upper Secondary (general, public) 6164 6401 6406 6674 6578 6364 Upper Secondary (general, private) 1285 1385 1452 1484 1527 1611 Upper Secondary (vocational) 3315 3080 2877 3089 3396 3515 Upper Secondary (Total) 10764 10866 10735 11247 11501 11490 Non-formal (Apprenticeship, Public) 234 378 562 657 378 Non-formal (Practical Arts, Public) 1586 1418 1414 1517 1600 1556 Non-formal (Private) 1454 1749 1900 2165 2320 2398 Tertiary Education (associate) 1548 2427 4129 Tertiary Education (bachelors) 46785 52361 59618 Tertiary Education (masters) 6152 6432 8307 Tertiary Education (doctorate) 1009 1506 1839 Tertiary Education (Total) 55494 62726 73893 Source: “MoNE” Education Statistics Yearbook 2014-2015. priorities, for collaborating and coordinating, and for generating routine feedback that sustains continuous 3. Key Findings and Policy Implications innovation and improvement. By contrast, weak systems This chapter highlights findings from the assessment of are characterized by fragmentation, duplication of effort, the TCc’s WfD system based on the SABER-WfD and limited learning from experience. analytical framework and tool. The focus is on policies, The SABER-WfD assessment results summarized below institutions, and practices according to three important provide a baseline for understanding the current status functional dimensions of policymaking and of the WfD system in the TCc, as well as a basis for implementation: strategic framework, system oversight, discussing ideas on how best to strengthen it in the and service delivery. These aspects collectively create coming years. the operational environment in which individuals, firms, and training providers, both “public” and private, make Overview of the SABER-WfD Assessment decisions with regards to training, and they exert an Results important influence on observed outcomes in skills development. According to the SABER framework, strong For the three Functional dimensions of the SABER-WfD WfD systems are characterized by institutionalized framework--strategic framework, system oversight and processes and practices for reaching agreement on SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 12 TCC ǀ WORKFORCE DEVELOPMENT SABER REPORT |2016 service delivery--the TCc is rated at the emerging level, mechanisms for skills testing for major occupations and with scores of 2.5, 2.0, and 1.9, respectively (Figure 6).14 certifications are strong and utilized efficiently. The TCc administration has taken solid steps to establish The strategic framework dimension is concerned with accreditation standards. While students in technical and policies aimed at setting the direction and overall vocational education can progress to academically or authorizing environment for WfD. Political support for vocationally oriented programs, including at the this issue is strong in the TCc and workforce development university level, the hope of finding a “public” sector job is considered an asset for economic progress. The roles likely results in an excess supply of college graduates, and responsibilities of key stakeholders in this field are and a shortage of TVET graduates and youth with clear. However, businesses and industries have limited technical skills. influence in shaping and implementing WfD priorities. Moreover, lack of monitoring of the incentive programs Service delivery refers to the way that training is is the weakest part of the strategic framework. conducted to equip individuals with market and job- Figure 6: SABER-WfD ratings of the strategic framework relevant skills. The scope and formality of private dimension training provision in IVET is clear, but no private initiatives provide services at the secondary level. Policies toward private training provision are not reviewed. The “Ministry of National Education” develops training curricula based on occupational standards. Though all stakeholders--including sector representatives and universities--are invited to all meetings on occupational standards, employers and other private stakeholders have minimal influence over the design of training curricula, and participation by stakeholders tends to be low and ad hoc. Few incentives exist to encourage public institutions to meet quality standards in providing training services. The monitoring and evaluation systems are not well developed and are unable to offer insights into the quality of services provided, or their impact on labor market outcomes. System oversight refers to the standards and quality- Linking WfD to broader socioeconomic goals; assurance processes that guide the functioning of the strengthening efficiency of funding and the quality- system. The results revealed that equity in funding is an assurance system; and establishing sound mechanisms issue for the TCc. While its budget includes contributions for M&E including rigorous impact evaluations of WfD from Turkey, and some projects are implemented with programs, will be among the main challenges for the TCc support from international donors, such as EU, USAID in the coming years. (U.S. Agency for International Development), and the British Council, efficiency is limited because of inertia in Policy Implications of the Findings the allocation of budget funds. The funding for IVET The unique conditions of the TCc make it very difficult follows routine budgeting processes determined largely to adopt international examples and models as on the basis of the previous year's budget. Funding for recommendations and guidelines for the TCc. Peculiar continuing vocational education and training (CVET) and characteristics of its economy include that the TCc is not active labor market programs (ALMPs) is largely used for recognized as a sovereign state; it has very limited promoting new recruitments, rather than improving opportunities to attract foreign direct investment (FDI); skills. No strong linkage exist between the allocation of and the service sector and “public sector” dominate the funds to institutions and their performance. Reviews of labor market. Country-specific examples of good the impact of funding on the beneficiaries of WfD practices from places such as Singapore, South Korea, programs consider only training-related indicators. The 14 See Annex 3 for the full results. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 13 TCC ǀ WORKFORCE DEVELOPMENT SABER REPORT |2016 Malaysia, and Ireland, may not be very useful, even service provision, to make it a more attractive place for though they are all small islands or economies. However, the local and international labor force. Box 1 includes a the TCc can still refer to international practices to summary on how the TCc performs in the international improve its strategic framework, system oversight, and SABER-WfD context. Box 1--Placing the TCc in the international SABER-WfD context The first message coming out of the analysis is that the TCc SABER WfD scores are somewhat lower than one would expect given its per capita GDP, but not excessively so. According to an unpublished World Bank report, the Turkish Cypriot community registered a score of 2.5 in terms of strategic framework, 2.0 for system oversight, and 1.9 for service delivery, and, in 2008, had a per capita GDP of US $15-23,000, measured in constant 2005 US$ . That puts the TCc well below the regression lines in all three policy areas, and below countries of similar income levels in the graph. Relation between dimension-level SABER-WfD scores and GDP per capita, circa 2012 4.00 Strategy Oversight Delivery Advanced 3.25 SABER-WfD Score Established 2.50 Emerging 1.75 Latent 1.00 1,000 2,000 4,000 8,000 16,000 32,000 64,000 GDP per capita (in constant 2005 PPP US Dollars, log scale) Source: Jee-Peng Tan, et al. 2016. Second, the TCC’s scores for strategy are higher than those for the other two functional dimensions—a dynamic seen in other economies where the SABER-WfD has been carried out. This pattern is evident from the location of the regression line for the strategy dimension in the figure, compared with those for oversight and service delivery. The hierarchy is intuitive: By their nature, the actions associated with strategy involve fewer agents and tend to require fewer steps to go from ideas to implementation. Moving from a low score to a higher score for strategy is thus more easily accomplished than would be the case for oversight or service delivery. For these latter two dimensions, improving scores almost always requires the cooperation of, and contribution of information and effort from, more stakeholders with highly diverse interests and priorities. This suggests that a more labor- intensive and time-consuming process would be required to agree on action plans and arrangements for implementation. For example, setting up a well-functioning qualifications framework—one aspect of oversight in the SABER-WfD framework—calls for inputs from employers, curriculum experts, training providers, and skills assessors. It requires agreement on standards and procedures for the assessment and certification of skills acquisition. Looking forward, and based on international examples through time, TCc policymakers should bear in mind that no score stagnates, but raising a score to the next level of performance takes time and continued efforts. Based on a World Bank report SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 14 TCC ǀ WORKFORCE DEVELOPMENT SABER REPORT |2016 on SABER studies across the world, we present below the evolution of scores in five select countries: Ireland, Singapore, Chile, South Korea, and Malaysia. The scores for strategy, oversight, and delivery all register improvements in the time frame for which data are available, often with gains sufficient to reach the next level of performance along the four-point scale (latent, emerging, established, and advanced). The workforce development systems of these countries benefitted from systemic improvements in the institutions responsible for shaping policies, as well as those responsible for governing the functioning of the system. These countries have taken a holistic approach to developing their workforce development systems and have sustained the effort over long periods. Singapore took nearly two decades to raise its score for strategy from established to advanced. Korea also took about two decades to raise its score for oversight from emerging to established, while Chile and Malaysia each took about a decade to raise their respective scores for delivery from emerging to established. Dimension-level SABER-WfD scores in five countries, 1970- circa 2010 Strategic Framework System Oversight Service Delivery 4.00 4.00 4.00 3.25 3.25 3.25 2.50 2.50 2.50 1.75 1.75 1.75 1.00 1.00 1.00 1960 1980 2000 2020 1960 1980 2000 2020 1960 1980 2000 2020 Source: Jee-Peng Tan, et al. 2016. Scores improve along diverse trajectories, reflecting the influence of specific conditions. That countries take different paths to build stronger workforce development systems is consistent with the intuition that country conditions constrain, as well as create space for, reform. Chile and Malaysia share similar gains in the scores for strategy and delivery, but Malaysia has made more progress in raising its score for oversight. One possible reason is that the country’s more centralized form of government facilitated rapid introduction, and successful implementation, of the Malaysia Qualifications Framework. Chile also initiated reforms to strengthen its qualifications framework, notably through the Chile Califica project; but given its more decentralized and market- driven form of government, it apparently needed more time to build consensus among employers for the creation and implementation of a single qualifications framework with wide scope and support. In other words, the Turkish Cypriot community’s workforce development system will improve following its own path, based on the specificities of the community’s economy, and no particular pattern of evolvement should be considered more or less appropriate. TCc authorities may consider the following x The workforce development system urgently needs recommendations to improve the workforce continuous and comparable analysis on skills development system. These topics are widely discussed constraints, to give policymakers access to routine and in the policy implications section later in this report. robust assessments carried out by multiple stakeholders. Strategic Framework: x The objectives and tools of the levy-grant scheme x The TCc administration would benefit from simplifying established under the Provident Fund Law could be its strategic objectives, and focusing on the areas revised to give more weight to skills-development where the TCc has shown a competitive advantage. activities, the impact of which should be reviewed and x The TCc workforce development system needs a adjusted continuously. leading body with a long-term vision; the body could System Oversight closely monitor strategic targets, as well as inform and influence political leaders to take corrective action. x Budget allocations for initial and continuing vocational education, and active labor market programs should SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 15 TCC ǀ WORKFORCE DEVELOPMENT SABER REPORT |2016 be linked to enrollments, performance, and the TCc in terms of developing a comprehensive WfD effectiveness of training programs. This would require strategy. better monitoring of existing programs and a better Annual programs and economic cooperation protocols system of accountability for results. signed between Turkey and the TCc define the strategic x Training needs of smaller firms should be aggregated priorities for the latter’s economic development. A draft with those of chambers representing industry. Cost- Mid-term Program was prepared in 2015 to set the sharing models should be developed to expand objectives and targets for sectoral and growth policies coverage of training programs. between 2016 and 2018. Service Delivery The latest economic cooperation protocol, signed in x New policies could help attract private training 2012 with the aim of transitioning the community to a providers to participate in IVET. sustainable economy, sets the framework of Turkey’s x Performance-enhancing programs could help public support for the development of the TCc. It includes training providers meet higher quality standards. strategic objectives and targets for the following sectors: x Collection of data on training outcomes could help (i) tourism; (ii) tertiary education, science and ensure better distribution of resources for improved technology; (iii) agriculture; (iv) transportation and system performance. telecommunication; (v) energy; and (vi) manufacturing. The total support under the protocol amounts to TL 3 billion, which represents almost one-third of the TCc’s 4. Aligning Workforce Development to Key cumulative, annual budgets between 2013 and 2015. It includes fairly small transfers to the education sector— Economic and Social Priorities approximate TL 35 million between 2013 and 2015—to WfD is not an end in itself but an input toward broader strengthen education infrastructure and improve objectives of: (i) boosting employability and productivity; educational services.15 The bulk of this allocation is (ii) relieving skills constraints on business growth and directed to tertiary education, and the allocations are development; and (iii) advancing overall economic limited with regards to the needs of WfD. growth and social wellbeing. This chapter briefly In addition to Turkey’s support, projects financed by introduces the TCc’s socio-economic aspirations, other donors and international partners (i.e. EU, USAID, priorities, and reforms before presenting the detailed and the British Council) have been implemented to SABER-WfD findings on strategic framework and their better understand the problems of the labor market policy implications. and improve the quality of the workforce. One example of these studies is the labor market efficiency study Socioeconomic Aspirations, Priorities and prepared by the “Ministry of Labor and Social Security” Reforms (“MoLSS”) in 2010 in partnership with local universities and private companies. The study includes a detailed This section summarizes the key features of the strategy proposal and action plan. environment in which top-level strategies are defined: (i) strategic priorities for economic development; (ii) The community prepared a national TVET Strategic Plan national WfD priorities; and (iii) key laws that define the for the first time, covering the period 2012-2016 to (i) procedures and context for setting economic and WfD improve the quality and image of TVET; (ii) ensure strategy. sufficient provision of qualified workers for the economy; and (iii) improve managerial standards and TCc policymakers put a priority on investing in TVET, but institutional efficiency of the TVET system in line with policies were not well implemented. Support from national and international economic trends.16 Based on Turkey and international donors is an important part of the TVET Strategy, a draft TVET Law was presented to the these efforts, but has also limited the independence of “Parliament” in 2014 to establish a top-level body to oversee planning and policymaking in this sector, 15 TCc, Program for Transition to Sustainable Economy, 2013-2015, 16“kktc işgücü analiz raporu.” “Ministry of Labor and Social Security.” http://yhb.gov.tr/files/2013-2015program.pdf SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 16 TCC ǀ WORKFORCE DEVELOPMENT SABER REPORT |2016 regulation of training for skills development, and Until the enactment of the new TVET Law, which is alignment to the European Qualifications Framework currently on the agenda for “Parliament “discussion, (EQF) with the introduction of the community’s own the Apprenticeship and Vocational Education Law, and National Qualifications Framework (NQF).17 its related regulations, will continue to define the basis of the TVET system. The Provident Fund on the other The key laws and regulations that define the overall hand, will continue to provide the main source of funding framework for WfD bear a resemblance to those of for the current continuing vocational education and Turkey. After working under the example of the British active labor market programs. system for some time, the TCc has now aligned most of its WfD legislation with the legal framework in Turkey. Table 3: Main WfD legislation 17/1986 – National Education Law Defines the regulations for public and private schools, and training centers, and the organizational responsibilities of “Ministry of National Education” 28/1988 – Apprenticeship and Vocational Education Law Defines the procedures and principles of apprenticeship and foremanship training. Stipulates procedures on wages, social security rights, and paid leave issues for apprentices and vocational school students who are doing on-the-job training, and the principles of training and examination of master workers. Regulation for the Working Principles of the Defines the working principles of the Board, which is responsible for Apprenticeship and Vocational Education Board (1989) the operational issues in apprenticeship training and technical vocational education and training. Regulation for the Selection of Enterprises for Defines the criteria for the selection of lines of businesses and training Apprenticeship Training (1989) places for apprenticeship and foremanship training Regulation for Principles of Examination (for foremen) and Defines the procedures and principles of the examinations during Establishment of the Examination Commission (1989) apprenticeship training and the foremanship exam taken at the end of training Regulation for Training and Examination of Masters (1989) Defines the procedures for short-term training for vocational graduates and for foremen to take the examination to be a master worker Regulation for Apprenticeship Training (1989) Defines the procedures and principles of apprenticeship training and admission rules to training programs Regulation for Vocational Training Courses (1989) Defines the establishment and implementation of technical vocational courses for the unemployed over the compulsory education age Regulation for TVET in Enterprises and Examination (1989) Defines the procedures and principles for the examination of vocational students in vocational schools and enterprises participating in such education and training. Regulation for Selection of Occupations for Apprenticeship Defines which occupations should be included in apprenticeship and and Foremanship Training (2011, 2015) foremanship training 34/1993 – The Provident Fund Law Defines the procedures and principles for the generation and use of the Provident Fund Regulation for Supporting the Employment of Local Defines the use of the Fund established to support formal employers Workforce, based on the Provident Fund Law (2013-2014) to hire new recruits and to develop and upgrade the skills of workers and disadvantaged groups 65/2005 – Tertiary Education Law Defines the working principles of the Higher Education Planning, Evaluation, Accreditation, and Coordination Council (YODAK) 17“Stratejik Plan.” “Ministry of Education.” SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 17 TCC ǀ WORKFORCE DEVELOPMENT SABER REPORT |2016 Figure 7: SABER-WfD ratings for the strategic framework SABER-WfD Ratings on the Strategic dimension Framework In the SABER-WfD framework, workforce development centers around three Policy Goals: (i) setting a strategic direction for workforce development; (ii) fostering a demand-led approach in workforce development; and (iii) ensuring coordination among key sector leaders and stakeholders. The ratings for these Policy Goals are presented and explained below, followed by a reflection on their implications for policy dialogue. The TCc is rated at the established level on setting a Based on data collected by the SABER-WfD strategic direction for WfD, with an overall score of 3.0. questionnaire, the TCc receives an overall score of 2.5 All the TCc administrations have managed to sustain (emerging) on the strategic framework dimension advocacy around a shared WfD agenda, despite a (Figure 7). This score is the average of the ratings for the political climate where five coalition administrations underlying Policy Goals relating to: (i) Setting a Direction have been established since 2010. The TCc for workforce development (3.0); (ii) Fostering a “Constitution” limits the number of “ministries” to 10, Demand-led Approach to workforce development (1.8); and the organizational structures and relevant and (iii) Strengthening Critical Coordination for responsibilities of “ministries” overseeing workforce workforce development (2.7). The explanation for these development issues have changed when establishing ratings on the Policy Goals and their implications follow new coalition administrations. However, technical below. departments in the relevant agencies have maintained Policy Goal 1: Setting a Strategic Direction for their critical capacity. WfD During the last decade, different TCc administrations Leaders are expected to play an important role in have developed new regulations in accordance with the crystalizing a strategic vision for WfD appropriate to any demands of the business sector and civil society. The country’s unique circumstances and opportunities. Apprenticeship and Vocational Education Law, which Their advocacy and commitment are expected to attract was enacted in 1988, has undergone five amendments partnership with stakeholders for the common good, (twice in 2003, then in 2007, 2012, and 2014). Most of build public support for key priorities in workforce these changes concentrated on improving service development, and ensure that critical issues receive due provision, and supplying monetary incentives to attention. Taking these ideas into account, Policy Goal 1 promote the TVET system. The Labor Law and the assesses the extent to which top-level leaders in the TCc Occupational Health and Safety Law were enacted in administration and in the private sector provide 1992 and 2008, respectively, in response to the demand sustained advocacy for WfD priorities through of social partners. institutionalized processes. The Draft TVET Law presented to the “Parliament” in 2014 defines the establishment of a new Vocational Education Board, which, as the leading body, would be responsible for planning and policymaking in TVET. The legislation also addresses training for skills development and alignment to the European Qualifications Framework. The Vocational Qualifications Authority (VQA) will be established through a separate law after the enactment of the new TVET Law. The TVET Law will also clarify the resources to be used to promote and strengthen SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 18 TCC ǀ WORKFORCE DEVELOPMENT SABER REPORT |2016 technical education and workplace development “Ministries” of Education and Labor, have established activities. informal networks. The TVET Strategic Plan,18 which was finalized in 2012, Although strategic planning was initiated only in 2012 sets the objectives, activities, and resources for the with the TVET Strategy Plan, several projects have been development of vocational education and training implemented since 2001 to strengthen the partnership (Table 4). The development objectives set in the strategic between schools, chambers, and employers. These plan create a common basis for all stakeholders to plan include projects aimed at developing modular training their activities aimed at improving technical and programs; improving the quality of learning by vocational education. developing teacher skills; diversifying lifelong learning pathways; and developing occupational standards. These The Chambers of Commerce, Industry, and Craftsmen & projects have been useful in identifying the needs of Artisans are the main partners of the administration at skilled, local job seekers seeking to fill vacant positions. the strategic level and in service delivery. They The community issued a regulation to support coordinate closely with the TCc administration’s employability of the local labor force in 2013, in response agencies. Advocacy and dialogue among the champions19 to the needs of the business sector for new graduates is usually guided by protocols signed between the and workers with better and more relevant skills. “Ministry of National Education” (“MoNE”) and the chambers (for example, the 2010 Protocol signed Policy Goal 2: Fostering a Demand-led Approach between the “Ministry” and the Chamber of Craftsmen to WfD to meet the need of technicians, and the 2013 Protocol signed between the “Ministry” and the Chamber of Effective advocacy for WfD requires credible Industry to strengthen the links between education and assessments of the demand for skills; engagement of employment, and to support local industries.) employers in shaping a country’s WfD agenda; and incentives for employers to support skills development. Although the chambers are strong supporters of Policy Goal 2 incorporates these ideas and benchmarks workforce development, their efforts have not been the system according to the extent to which policies and continuous, due to a lack of adequate human resources institutional arrangements are in place to: (i) establish to sustain advocacy. To inform all stakeholders and clarity on the demand for skills and areas of critical collect useful information for policymaking, stakeholders constraint; and (ii) engage employers in setting WfD on the administration side, especially those in the priorities and enhancing skills-upgrading for workers. Table 4: Objectives and activities of the TVET Strategic Plan Objective Main activities Responsibility Raising the quality of TVET leads to an improved image and ensures the provision of sufficient labor for the economy Defining clear quality criteria for 1. Form an expert group to define the quality standards for the TCc based on situation “MoNE” and all TVET based on national and analysis and analysis of international criteria for TVET quality relevant international priorities 2. Review relevant legislation to decide if changes are necessary stakeholders 1. Define service provision for target groups (young people, unemployed, etc.) Establishing systematic career 2. Define their needs and expectations “MoNE,” “MoLSS” guidance system 3. Develop relevant services 1. Define performance gaps and develop training programs accordingly 2. Organize Improving professional skills of these training programs and evaluate their impact “MoNE,” “MoLSS,” trainers in TVET schools and 3. Revise the qualification requirements of TVET school teachers and add compulsory universities,, workplaces training course onf vocational pedagogy chambers 4. Develop the TVET pedagogy training course 1. Define learning outcomes in curricula which are based on occupational standards “MoNE,,” Improving quality of practical and 2. Improve the practical input into schools (equipment, methodology) chambers, VQA professional skills of TVET students 3. Establish a central system of standardized final exams (when established) 18Strategic Plan for improvement of Vocational Education and Training in 19 A champion is a person or agency that expresses support for skills northern part of Cyprus in 2012-2016. training or workforce development in general. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 19 TCC ǀ WORKFORCE DEVELOPMENT SABER REPORT |2016 Starting a professional, long-term “MoNE”, PR campaign to raise awareness of 1. Develop a strategy for the publicity campaign chambers, PR TVET; promoting TVET graduates 2. Identify success stories and promote them experts success stories Ensuring TVET matches the needs of the economy and follows both national and international economic trends Establishing a sustainable labor- 1. Develop a methodology and content for labor market survey “MoLSS,”,“MoNE,” market monitoring and analysis 2. Establish a system of annual surveys and reports of labor-market needs for the next SPO, chambers system three years 1. Analyze the provision of TVET programs to ensure that they align with demand, Establishing systematic and long- based on labor-market assessment results “MoNE,” term planning of TVET at the 2. Analyze cost-effectiveness of current TVET school system chambers content and infrastructural levels 3. Restructure TVET schools according to the results of cost-effectiveness analysis 1. Define the scope of responsibilities for the system of professional councils 2. Establish sector councils for each sector in the TVET system “MoNE,” “MoLSS,” Establishing a sustainable system 3. Develop or revise occupational standards chambers, of professional councils and 4. Coordinate the system of external exams for TVET graduates “Ministry of standards 5. Organize annual conferences to discuss labor market trends and make agreements Economy,” for the following period universities, SPO 6. Establish the National Qualifications Authority 1. Implement the certification of modules “MoNE,” Improving the system for curricula 2. Revise and improve the training and assessment methodology professional development 3. Empower professional councils for curricula development councils 1. Map potential target groups for TVET in society and define their needs Involving new target groups and “MoNE,” 2. Develop short-term, labor market-oriented trainings for adult learners (including through provision of high-quality “MoLSS,” unemployed, elderly, and disabled) TVET, promoting employability chambers 3. Improve the apprenticeship system and involve adult learners Improving the management quality and institutional efficiency of the TVET system Restructuring the TVET 1. Define the purpose of the system and its main functions management system and defining 2. Divide responsibilities between central administration and school levels the scopes of responsibilities 3. Reform the organisational structures “MoNE” between central administration 4. Define the job profiles and performance indicators on both - central administration and school management and school levels Defining competency 1. Develop a competency-based selection system relying on new job profiles for school “MoNE,” requirements and providing management chambers, relevant training to meet 2. Develop a training program for TVET school managers universities standards Establishing quality assurance for 1. Establish a holistic system of self-assessment, internal verification, and school “MoNE” the TVET system inspection Establishing a system of regional 1. Define the purpose and functions of regional school boards school boards to involve regional “MoNE,” 2. Develop regulations for school boards stakeholders in school chambers 3. Establish the boards in cooperation with chambers and unions management Source: “MoNE” TVET Strategic Plan, 2012-2016. The TCc is rated at the emerging level for fostering a The survey provides little information on which skills are demand-led approach to WfD with an overall score of sought by private firms or developed by the TCc’s 1.8. The Household Labor Force Surveys (LFS), which education system; which skills or educational paths are have been conducted annually since October 2004 by most desirable among the youth and their families; or the Statistics and Research Department of the State whether some educational paths are preferred. Planning Organization, are the main data sources describing employed and unemployed people (with information on their economic activity, occupation, and employment status).While the survey provides some main indicators on labor markets, it does not contain a module outlining the skills constraints in the labor force. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 20 TCC ǀ WORKFORCE DEVELOPMENT SABER REPORT |2016 Table 5: Projects implemented to strengthen WfD Donor/ Project Main Objectives Major Outcomes Partner Kyrenia x Developing a TVET framework based on x Communication and collaboration mechanisms Developing TVET (METGE) American close collaboration among TVET schools, were developed with employers, chambers, and Project, 2001-10 University business sector and civil society. civil society x Fourteen occupational standards were generated Vocational Structuring (MEYAP) x Developing the National Qualifications x First draft of principles of Vocational RoT Project, 2006 Framework Qualifications Authority was prepared x A labor force survey was performed to understand skills mismatch x A survey was conducted to determine the x Identifying the problems facing the TVET qualifications of the workforce in the tourism WISE Improving Workforce USAID system, and the factors causing a lack of sector Development Project, 2006-07 interest in TVET among students x Promotional materials were developed to attract secondary school students for TVET x Fifteen teachers were awarded with ECDL Capacity Development Program x Equipping senior TVET students with the trainer certficiates; 205 students received ECDL for TVET, 2009-10 European Computer Driving License (ECDL) certificates x Occupational modules were developed in IT, x Developing the NQF in accordance with beauty and hair design, accounting, finance, Skills for Enterprises Project, British the EQF marketing, and electric and electronic 2006-11 Council x Enabling skills training in enterprises x Quality-assurance activities for TVET were x Raising awareness for TVET performed with schools, chambers, and enterprises Development and Promotion of x Improving the skill set of workers the TVET Systems. Life-long and unemployed x An apprenticeship system was developed and a Learning, and Active Labor x Introducing career consultancy and life- job shop was established to give job seekers easy EU Market Measures in the long learning activities access to information on vacancies and a cost-free Northern Part of Cyprus x Developing programs for disadvantaged space for companies to display job offers. (VETLAM) Project, 2009-12 groups Modernization of Infrastructure x Improving teaching materials and RoT of TVET Schools, 2009 equipment of secondary TVET schools x Unifying TVET schools under a modern TVET Campus Project, 2012-14 RoT infrastructure Source: “MoNE” TVET Strategic Plan, 2012-2016. Employers help to address critical skills constraints and As in many other countries, employers in the take part in the development of occupational community often mention the existence of a skills gap, standards. Some of the stakeholders may also yet insufficient information exists on the topic. Several participate in the processes to define the technical studies were conducted between 2002 and 2012 under specifications and industry standards in the design of the following projects: Workforce Improvement Skills new programs and revision of education curricula in Enhancement (WISE), Development and Promotion of secondary TVET schools from time to time. Occupational TVET Systems (VETLAM), and Developing Technical standards which are developed with the contribution of Vocational Education and Training (METGE). These sector representatives and stakeholders serve as a basis studies assessed the TCc's economic prospects and their for the development of new curricula. As development implications for skills (Table 5). Though some of the of curricula needs professional expertise, the “Ministry projects were designed to ensure continuity, no routine of Education” approves all curricula and education assessment mechanisms were developed to guarantee a programs. regular evaluation of these issues. These studies underlined disconnect between training and Although training programs for the tourism sector employment services, and the challenges and needs of incorporated new modules as a result of collaboration the labor market and enterprises. between the TCc administration and other SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 21 TCC ǀ WORKFORCE DEVELOPMENT SABER REPORT |2016 stakeholders, a broader revision has not yet taken place The “Ministry of Education”’s TVET General Directorate for IVET, CVET, or ALMP. Despite the dominance of the uses the findings of the studies conducted under donor- service sector in the economy, the TVET system lags in funded projects and the administrative workforce integrating technical and soft skills into the curricula. In development data to conduct internal analysis on skills line with the findings of the VETLAM project, relevant constraints. The “Ministry of Labor” also provides annual training programs included such topics as reports on its activities, including those related to the entrepreneurship, customer relations, sales techniques Regulation for Supporting the Employment of the Local and marketing, and occupational health and safety. Workforce. Though the strategic focus by the workforce “Education Ministry” representatives say the curriculum development champions is praiseworthy, monitoring of should give more attention to soft skills. implementation of these strategic decisions remains extremely limited, due to lack of funding and efficient In an important step, the TCc administration issued the mechanisms. Regulation for Supporting the Employment of the Local Workforce in 2013. This regulation introduced a levy The only ongoing sectoral skill development activity is scheme to: (i) support formal employers for new recruits an on-the-job training (OJT) program for new recruits in and to develop and upgrade the skills of existing workers; tourism establishments. The “ministries” of education (ii) finance vocational training programs to be conducted and labor, together with the Chamber of Craftsmen and in cooperation with the universities and chambers; and Artisans, set up a tourism vocational training program in (iii) conduct activities to improve employability of three tourist regions in May 2014, Some 100 new recruits disadvantaged groups. Deductions to the monthly wages are participating in the program. The total budget for of foreign employees finance the program. However, in these activities amounts to about US$175,000. practice, the regulation is used to increase employment, and the bulk of payments goes toward rebates for social Besides the on-the-job training program for the tourism security contributions made by employers on behalf of sector, skills development projects operate for newly recruited workers. vulnerable groups—specifically convicts and women-- but not for any other sectors or disadvantaged groups. Box 2: The VETLAM Project The EU-funded project, “Support to TVET, Labor Market, and Policy Goal 3: Strengthening Critical Coordination for Lifelong-learning Systems in the Northern Part of Cyprus” Implementation (VETLAM), in cooperation with the Turkish Cypriot Chamber of Commerce (KTTO), conducted a survey of 80 enterprises Ensuring that the efforts of multiple stakeholders employing sales and marketing staff and selling electrical involved in WfD are aligned with a country’s key home products in July and August 2011 to identify areas for socioeconomic priorities is an important goal of future labor demand and skills upgrading. It also engaged in strategic coordination. Such coordination typically focus group discussions with the respondents. More than two- requires leadership at a sufficiently high level to thirds of employers reported that they encountered problems overcome barriers to cross-sector or cross-ministerial in recruiting new staff, as the candidates did not have the cooperation. Policy Goal 3 examines the extent to which proper technical and soft skills, qualification, or experience for policies and institutional arrangements are in place to sales and marketing positions. The respondents said the TCc formalize roles and responsibilities for coordinated did not have generic skills training in sales or marketing. 20 action on strategic priorities. The study came up with the following recommendations: x Conduct structural analyses of the labor market The TCc is rated at the established level for x Take measures to improve the quality of upper-secondary strengthening critical coordination for WfD with a score school and university graduates of 2.7. x Promote internships for TVET-students x Organize sales and marketing training The roles of “ministries” and other agencies are clear, x Evaluate Public Employment Services and efficient coordination exists among them. The Source: “Ministry of National Education,” 2015 20 This comment reflects the lack of understanding on the content of TVET programs, as TVET schools do not offer training for sales and marketing staff. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 22 TCC ǀ WORKFORCE DEVELOPMENT SABER REPORT |2016 following agencies have clearly defined roles and controls their participation in the overall decision- responsibilities for WfD. making process. During the last decade, “public” agencies have actively sought the input of all other “The Ministry of National Education”’s General stakeholders during the preparation of new legislations, Directorates oversee formal education, including Initial such as the new draft TVET Law, and new programs, such Vocational Education and Training (IVET), and lifelong as TVET training for the tourism sector, through formal learning activities. Once it is established, the new and informal channels. Informal coordination among Vocational Qualifications Authority will be affiliated with stakeholders is very useful for facilitating the the “Ministry.” preparatory processes. The Higher Education Planning, Evaluation, The TVET Strategic Plan 2012-16 clearly identifies the Accreditation, and Coordination Council (YODAK) is the roles of each stakeholder in the sector (Table 4). In this accreditation body for universities and it is also respect, chambers, universities, professional councils, responsible for post-secondary IVET. The Council was and business sector representatives will continue to be established as an autonomous body to plan, organize, in close contact with the TCc administration counterparts and monitor applications, and audit and follow throughout the implementation of the strategy. accreditation procedures. In addition, it coordinates tertiary education institutions, and serves as the Implications of the Findings community’s Quality Assurance Agency. The Council is an associate member of the European Association for While the TCc has set a strategic direction for WfD Quality Assurance in Higher Education (ENQA), and a full which is aligned with its current development priorities, member of the International Network for Quality any change that may occur in the future to the TCc self- Assurance in Higher Education (INQAAHE) and of the governing structure would create a completely new Central and Eastern European Network of Quality environment for TCc authorities, and require them to Assurance Agencies in Higher Education (CEENQA). revise their vision. In this respect, the TCc should The Employment Department of the “Ministry of Labor” consider redefining or simplifying its strategic priorities was established to regulate working life, take necessary and development models and shifting to the areas where measures to limit occupational accidents and diseases, it has shown itself to have a competitive advantage. and to ensure the implementation of labor regulations. The TCc has been partnering with Turkey and other The department also acts as a public employment international donors to improve its WfD system, but agency, with a mission of job placement, and coordinates has little leverage to design its own policies. Although a levy scheme for Continuing Vocational Education and most countries rely on similar practices to strengthen Training (CVET) and Active Labor Market Programs their education systems and WfD activities, TCc (ALMPs). authorities have little room to insert measures to The State Planning Organization (SPO) was established address specific needs of their community into the new in 1976 to provide assistance to the “Council of programs. Ministers” in determining economic, social, and cultural The TCc conducts very limited and ad hoc assessments policies and targets, and to monitor the implementation on its economic prospects, and their implications for of long-term plans and annual programs. The Directorate skills demand. To have continuous, comparable analysis of Statistics and Research Department of SPO collects on the community’s skills constraints, TCc policymakers and evaluates all statistical data, including those related should rely on routine, robust assessments by multiple to the education sector and the labor market. stakeholders on the community’s economic prospects While the regulations clearly define the organizational and their implications for skills demand. In the short roles of different agencies, collaboration among them is term, a specific “skills” module could be incorporated established by formal arrangements and sustained into the Labor Force Survey to obtain a better through personal relations. understanding and clearer vision of the skills mismatch. The representatives of employer associations, Smaller, private sector companies attribute low chambers, and other civil society organizations mainly productivity, in part, to employees’ inadequate level of assume a supporting function, as the TCc administration technical and soft skills, and limited experience. TCc SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 23 TCC ǀ WORKFORCE DEVELOPMENT SABER REPORT |2016 policymakers may review the training programs in IVET, business sector. But the TVET system also needs to focus CVET and ALMPs to facilitate and accelerate the more on the development of entrepreneurial skills and acquisition of technical and soft skills for sales and innovation for a more efficient and functioning labor marketing positions in line with the demand of the market. Box 3 - Malaysia Human Resources Development Fund Malaysia’s Human Resources Development Fund (HRDF) was established in 1992 under the Human Resources Development Act with the overall objective of increasing training initiatives for workers in the private sector ; increasing the supply of skilled workers in the country and thereby increasing their productivity; and building a culture of training among employers. The HRDF is a pool of funds collected through a mandatory human-development levy charged to firms and employers above a certain size and in selected sectors (mostly manufacturing and services). Registered and incorporated employers and firms that contribute to the fund by paying 1% of payroll can then apply for grants and financial assistance (up to the amount of the levies paid) to retrain and upgrade the skills of their workforce. The HRDC specifies reimbursement rates depending on the type of training organized by firms and, generally, large firms are reimbursed at lower rates than smaller firms. In parallel to the HRDC, a Skills Development Fund was also established to provide individuals with loans to complete training courses in accredited institutions. During the early stages of HRDF implementation, only firms above 50 employees were covered, but by 1995 firms above 10 employees became eligible for HRDF grants. As of 2008, there were over 10,000 firms/employers registered with the HRDF, and the revenues of the fund had increased from RM120 million in 2002 to over RM320 million in 2008. Similarly, disbursement of HDRF grants increased from RM160 million per year in 2002, to almost RM300 million in 2008, and the number of accredited training places almost doubled over the same period, from 420,000 in 2002 to almost 740,000 in 2008. An evaluation of the HRDF initiative carried out by Hong Tan using firm-level data found that the Fund resulted in an increase in enterprise training among all firms in the sample, with medium-sized ones benefitting the most from the scheme. At the same time, such increase in workers’ training resulted in productivity growth (particularly when the training was carried out on a continuous basis and done in parallel to investments in new technology). A further evaluation by Awang et al. (2010) found that training programs increased knowledge and skills, and improved positive work behavior; however, the impact on employees’ work performance and cognitive skills was limited. Similarly to other evaluations of comparable programs across the world, the impact of the HRDF was much smaller among small firms, probably due to their smaller budget for training, and their limited knowledge about how to train workers. The sectors with the highest take up rates of the scheme were professional services, scientific instruments, machinery and ceramics, while food, beverages, textiles, woods and furniture displayed the lower take up rates. Despite the uneven take-up across sectors and the relatively low compliance, Malaysia’s HRDF is generally considered successful, especially because of its transparency, its efficiency in reimbursing firms’ claims and the ease with which firms can apply for funding and grants. In the recent past, the Government of Malaysia introduced an e-disbursement system (that allows training grants to be credited directly into the accounts of selected employers), an e-levy payment system (that allows firms and employers to pay HDRF levies online), and a public star rating system that allows firms and workers to rate training providers and programs based on their quality and delivery. The most interesting aspect to the HRDF experience lies probably in the “clearing house” and information provider roles that the Malaysian Government took on, by pre-approving and accrediting training providers to reduce search costs for firm. Sources: Your Corporate Training & Life Long Training Resource | TrainingMalaysia.com. www.trainingmalaysia.com; Sumber Manusia Berhad (Human Resources Development Fund). http://www.hrdf.com.my; Hong Tan, 2001; Hong Tan and Gladys Lopez-Acevado, 2005; Abd Hair Awang, Rahmah Ismail, and Zulridah Mohd Noor, 2010. While the TCc implements a levy-grant scheme the TCc administration should first differentiate the established under the Provident Fund Law and objectives and the tools for employment generation and implemented through the Regulation for Supporting skills development. The TCc authorities may benefit from the Employment of Local Workforce, its coverage is international experience in this respect (Box 3). After limited, and fund proceeds are used for promoting new separating the tools and methods for skills development employment rather than providing support for skills from those for employment generation, the TCc upgrading. To review and adjust the impact of the administration should immediately develop a system to programs implemented under the levy-grant scheme, review the impacts of the implemented programs under SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 24 TCC ǀ WORKFORCE DEVELOPMENT SABER REPORT |2016 the levy scheme and make necessary planning and Figure 8: WfD system in the TCc adjustments for both new and ongoing programs. Impact evaluations should be introduced into the incentive programs at the design stage. The new TVET Law will set the legal basis for the establishment of a TVET Board as the top-level body overseeing WfD, ensuring institutionalized and sustained leadership. Currently, no main body exists to make decisions on the overall WfD system, including VET programs at formal and non-formal education institutions, and CVET and ALMP services). While the new Board may improve communication, coordination, and collaboration among stakeholders the main need of the WfD system is a body with a long-term vision which can closely monitor strategic targets, and inform and influence political leaders to take any needed corrective action. The TCc administration should assign Source: Author’s own construction. experienced members to sit on the TVET Board and provide the Board with adequate funding and autonomy The TCc education system includes basic education so that it can support evidence-based policymaking. (pre-school, kindergarten, primary school spanning grades 1-5, and lower-secondary serving grades 6-8); secondary education (upper-secondary serving grades 5. Governing the System for Workforce 9-12), and tertiary education. The “Education Ministry” Development has nine administrative units that are in charge of formal education, including IVET with upper-secondary TVET Some important functions of WfD authorities are: to schools, non-formal education, apprenticeship training, foster efficient and equitable funding of investments in and lifelong learning activities. The Higher Education the sector; to facilitate effective skills acquisition by Planning, Evaluation, Accreditation, and Coordination individuals; and to enable employers to hire skilled Council (YODAK) keeps track of IVET activities at the post- workers in a timely manner. The objective is to minimize secondary level. Continuing Vocational Education and systemic impediments to skills acquisition and Training (CVET) and Active Labor Market Programs mismatches in skills supply and demand. This chapter (ALMPs) fall under the responsibility of the “Ministry of begins with a brief description of how the WfD system is Labor”’s Employment Department. organized and governed, before presenting the detailed Public expenditure on education in the TCc accounted SABER-WfD findings on System Oversight and their policy for 4 percent of GDP and 18 percent of the overall implications. budget in 2014. Funding is provided from the central Overall Institutional Landscape budget through two main channels. Funds for education and training activities are channeled through the This section provides a summary description of: (i) the “Education Ministry,” which is responsible for all organizational and governance structures of the WfD investments in education; most of the funds allocated system, including the main “ministries,” or agencies, and are used to pay salaries of civil servants, including their mandates; and (ii) key characteristics of funding teacher, and the costs of student transport. Very limited mechanisms for WfD. funds remain for investments, materials, or special programs. The Ministry of Labor administers funds for CVET and ALMPs. The total education budget for 2014 totaled $255 million, more than half (57 percent) of which was spent on personnel, including wages, salaries, and social SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 25 TCC ǀ WORKFORCE DEVELOPMENT SABER REPORT |2016 security premiums of “Education Ministry” and YODAK Table 7: CVET and ALMP budget (million $) staff. Salaries are calculated as a part of the overall Program 2010-15 % personnel expenditures for civil servants. Transfers to EMU Culinary Associate Program 0.3 2.2% tertiary education comprised 24 percent of the TVET in the Tourism Sector 0.2 1.3% education budget in 2014, including capital transfers to Reintroducing Convicts into 0.03 0.2% foundation universities—East Mediterranean University Society through TVET (EMU) and Lefke American University (LEU) -- and Strengthening Women labor 0.05 0.4% project-related investments to almost all universities. force participation through TVET Social Security Premium 12.6 95.8% The TCc administration, through the “Education Reimbursement to Employers for Ministry”’s General Directorate of Higher Education, New Recruits provides scholarships directly to university students as Total 13.2 well. In 2014, scholarships to national and international students amounted to $12 million and made up 5 Source: “MoLSS” statistics percent of the education budget. Providing free transportation services to students, including those in SABER-WfD Ratings on System Oversight IVET and teachers is a constitutional responsibility of the The SABER-WfD framework identifies three relevant TCc administration. In 2014, this allocation was almost Policy Goals corresponding to oversight mechanisms for twice the allocation for investments. influencing the choices of individuals, training providers The actual spending for IVET activities in 2014--excluding and employers: (i) ensuring efficiency and equity in programs at the post-secondary level--was only about funding; (ii) ensuring relevant and reliable standards;21 $27 million, accounting for 10% of the overall “Education and (iii) diversifying pathways for skills acquisition. The Ministry” budget. Personnel costs represented 93 ratings for these Policy Goals are presented and percent of IVET funding, leaving less than 4 percent of explained below, followed by a reflection on their the allocations for investments, such as IVET implications for policy dialogue. modernization projects. No budget allocation exists for Based on data collected by the SABER-WfD the monitoring and evaluation of training programs. questionnaire, the TCc receives an overall score of 2.0 (emerging) for system oversight (Figure 9). This score Table 6: 2014 “MoNE IVET” budget (actuals) Budget Appropriation Mill. $ % represents the average of the ratings for the underlying Personnel Costs (Wages & Salaries, 25 93% Policy Goals: ensuring efficiency and equity of funding Social Security, etc.) (1.4); ensuring relevant and reliable standards (2.5); and Goods, Materials, Utilities, Services, 1 3.5% diversifying pathways for skills acquisition (2.2). The etc. explanation for these ratings and their implications VET Modernization Projects 1 3.5% follow below. Total 27 Source: TCc Annual Budget Law, 2015. The CVET and ALMP activities provided for under the Regulation for Supporting the Employment of Local Workforce are financed by a dedicated, extra- budgetary fund established under the Provident Fund Law. During 2010 and 2015, only about 4 percent of the fund proceeds were used to support CVET and ALMP activities. 21 While the SABER-WfD framework focuses on competency standards, standards in the European policy debate refer primarily to clear and agreed- upon learning outcomes in terms of knowledge, skills, and competences. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 26 TCC ǀ WORKFORCE DEVELOPMENT SABER REPORT |2016 Figure 9: SABER-WfD ratings for the system oversight units of “MoNE” keep track of administrative dimension expenditures, the impact of funding on the beneficiaries of training programs is not reviewed. The CVET activities provided under the Regulation for Supporting the Employment of Local Workforce are financed by a dedicated, extra-budgetary fund established under the Provident Fund Law. The TVET in the Tourism Sector Program was implemented in May 2014 by the “MoNE,” “MoLSS,” and the Chamber of Craftsmen and Artisans in three tourism regions. The program provides on-the-job training (OJT) to 100 new Policy Goal 4: Ensuring Efficiency and Equity in recruits in the tourism sector. Training is provided by TVET teachers on theoretical and practical topics. Funding Instructors from local universities may take part in WfD requires a significant investment of resources by training if their expertise is needed. The “MoLSS” government, households, and employers. To ensure Employment Department conducts formal assessments that these resources are effectively used, it is important of the training in the tourism sector program, prepares to examine the extent to which policies and institutional monthly forecasts for employment and training needs, arrangements are in place to: (i) ensure stable funding and allocates resources to the ongoing program. for effective programs in initial, continuing and targeted There are two ALMPs implemented under the TVET; (ii) and assess equity in funding; and (iii) foster Regulation for Supporting the Employment of Local partnerships with employers for funding WfD. Workforce as well. The project named Reintroducing The TCc is rated as latent on ensuring efficiency and Convicts to Society through TVET was implemented equity in funding, with an overall score of 1.4. The between April 2014 and February 2015, with a budget of administration mobilizes funds for relevant agencies US$30,000. About 26 of the 54 convicts who participated through the regular budget preparation process. The in the program completed the training activities technical departments of the “Education Ministry” satisfactorily. The Strengthening Women labor force estimate budget allocations for administrative and participation through TVET program was initiated in April operational expenses, and investments. The “Ministry of 2015, and will be completed by the end of the year. The Finance” (MoF) coordinates the process and prepares first part of the program covers awareness-raising the budget law draft. However, allocations for IVET are activities, to be followed by training programs on determined largely by the previous year's budget, and business development for women entrepreneurs. The the additional needs of the “MoNE” VET General budget for about 160 participants is US$50,000. Directorate for investments are not always taken into Chambers and employer associations try to participate consideration. The budget allocations are not linked to in the decision-making processes and to inform “public” enrollments, performance, or effectiveness of training agencies on the needs of the business sector. Yet, programs. ALMPs are not determined through systematic and The budget law also covers Turkey’s support to the TCc transparent processes with input from key stakeholders. budget, with the investment budget for IVET located Moreover, such programs target only select population under Turkey’s contribution, which requires approval groups. by the Turkish Aid Committee. This makes it difficult for While the criteria for allocating WfD funding to the “MoNE” officials to retain full autonomy in the institutions and programs are subject to periodic review, decision-making process. they do not contain performance assessments, as the The administrative structure of the TCc administration, “MoNE”, and “MoLSS” do not have adequate human including the “MoNE” is centralized. The administration resources to conduct formal reviews of the impact of neither provides autonomy to individual school such funding on the beneficiaries of training programs. administrations nor facilitates formal partnerships between schools and employers. Although technical SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 27 TCC ǀ WORKFORCE DEVELOPMENT SABER REPORT |2016 Although the regulation seeks improvement of labor The National Qualifications Framework will become force skills through CVET and ALMPs, most of the funds, fully operational after Parliament enacts the new TVET totaling about US$3 million, are used for new job Law. The draft law defines the establishment of the TVET creation through supporting employers in the form of tax Council and TVET Board, which will be responsible for rebates (reimbursement of social security premiums), vocational education planning and policymaking. The rather than providing education and training for workers draft law also mandates training for skills development or unemployed people. Very few resources ultimately go and the introduction of the National Qualifications to skills development (Table 7). Framework. Finally, the stakeholders who have been working on an ad hoc basis to develop occupational Policy Goal 5: Assuring Relevant and Reliable standards will from then on become a part of an Standards institutionalized system. The WfD system typically features a wide range of The “MoNE” conducts competency-based testing to training providers offering courses at various levels in certify qualifications (for foremen and masters) in diverse fields. An effective system of standards and skilled and semi-skilled occupations that will fall under accreditation enables students to document what they the first four levels of the National Qualifications have learned, and employers to identify workers with the Framework (Figure 8). Graduates of apprenticeship relevant skills. For Policy Goal 5, it is therefore important training and TVET schools who want to assume the title to assess the status of policies and institutions to: (i) set of a masters graduate so they may establish new reliable competency standards; (ii) ensure the credibility businesses must take an occupation-specific “MoNE” of skills-testing and certification; and (iii) develop and examination enforce accreditation standards for maintaining the Certificates for mastership are required to establish a quality of training provision. new business. Both foremen and masters are expected The TCc scores at the emerging level for ensuring to fulfill necessary conditions to apply for the relevant and reliable standards, with an overall score of examination and attend a training program conducted by 2.5. Although it has not yet established a qualifications “MoNE.” The questions in the examination are carefully authority to define and set standards for occupations, or designed to evaluate theoretical knowledge and practical to design a national qualifications framework (with eight implementations. Both foremen and masters must take levels, identical to the European Qualifications a theoretical exam; those who pass then take a hands- Framework (EQF)), a process to align occupational on, practical examination. As the Chamber of Electrical standards with the Framework was initiated under the Engineers’s establishment law guarantees it unique and vocational-structuring project (MEYAP) and Skills for exclusive privileges to deliver certificates, the “MoNE” Enterprises (British Council) projects. The “MoNE” VET does not conduct testing in this field. department has examined the qualifications frameworks In contrast to the best practices regarding testing and of some EU member states and Turkey and prepared a delivery of certificates, the community currently has no draft National Qualifications Framework (NQF), based on mechanism to accredit training providers. “MoNE” the EQF. plans to develop and launch an accreditation system in Working groups coordinated by “MoNE” and including the coming years upon establishment of the National stakeholders from “public” agencies, employers’ Qualifications Framework, in close collaboration with associations, chambers, academia, and civil society, relevant stakeholders. The reviews will become have engaged in developing some 80 occupational systematic once the system is fully operational. standards falling under the first four levels of the In tertiary education, YODAK applied for participation European Qualifications Framework. Chambers and in the Bologna Process in 2007, and is currently in the private-sector representatives provided input on process of implementing the European Standards and technical aspects of the occupations. The Higher Guidelines (ESG) for Quality Assurance. . The Education, Planning, Evaluation, Accreditation, and accreditation standards are being evaluated by, and Coordination Council (YODAK) initiated a pilot process to accepted through, the Inter-University Commission define the occupational standards in health provision, where all TCc universities are represented. Universities and it has developed seven standards. do not need to renew the accreditation status but YODAK SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 28 TCC ǀ WORKFORCE DEVELOPMENT SABER REPORT |2016 conducts annual audits to measure compliance. It also the university entrance examination. If they want to provides technical assistance to all universities in continue to a four-year bachelor program, they must get establishing and implementing the standards, and helps a high score on the test to get placed in the desired them to develop relations with international program. accreditation agencies. Table 8: Fields of study under TVET schools Information Technology Handicrafts and Ceramics Policy Goal 6: Diversifying Pathways for Skills Technology Acquisition Electric- Electronic Beauty and Hair In dynamic economic environments, workers need to Technology Care/Design Services acquire new skills and competencies, and to keep their Motor Vehicles Technology Clothing Technology Metal Technology Tourism skills up-to-date throughout their working lives. They Civil Works/Construction Wood Technology, are best served by a system of initial and continuing Technology Furniture and Interior education and training that promotes lifelong learning by Design offering clear and flexible pathways for transfers across Accounting, Finance, and Photography, Graphics, and courses, progression to higher levels of training, and Marketing Publishing/Printing access to programs in other fields. For those already in Machine Technology Office Management the workforce, schemes for recognition of prior learning Plumbing, Heating and Theology are essential to allow individuals to efficiently upgrade Cooling Technology their skills and learn new ones. Child Development and Technology of Agriculture Education Policy Goal 6, therefore, evaluates the extent to which Food Technology policies and institutions are in place to: (i) enable Source: “MoNE” website, September 1, 2015. progression through multiple learning pathways, including for students in TVET streams; (ii) facilitate the Technical programs in post-secondary IVET schools recognition of prior learning; and (iii) provide targeted (established under universities) are provided in the support services, particularly among people who need fields of law, seafaring, health, tourism, interpretation, special policies. and technical fields, such as power, civil works, and The TCc scores at an emerging level for diversifying communications. Students receive an associate degree pathways for skills acquisition, with an overall score of after the successful completion of two years of full-time 2.2. The community offers several separate academic university study. Associate degrees are generally and vocational/technical streams at the upper- practical in nature, and students who graduate with an secondary level. Students can move between general appropriate grade point average may transfer into a and TVET branches at the secondary level. They must related, four-year bachelor’s degree program. complete all programs under the field of study, but prior The TCc administration has taken solid steps to improve courses completed under the other track do not need to the public perception of TVET. In addition to “MoNE”’s be repeated if they have equivalency. Education is ongoing cooperation with the chambers to better inform compulsory for students until age 15. After completing the public about opportunities for TVET graduates, lower-secondary school, students may enroll in upper- policymakers offer new incentives for secondary school secondary TVET programs. TVET students are placed in students to enroll in TVET programs. One incentive is that their selected occupational departments after grade 8. vocational school graduates enjoy a shortened term for During the first year of vocational school (grade 9), their compulsory military service. students start taking courses in their subject field, and a more intense program starts in grade 10. On-the-job The “MoNE” is in charge of lifelong learning (LLL), and training generally starts in the last school year (grade 12) recognizes prior learning, but there are no smooth mechanisms to recognize education out of the formal Upper-secondary TVET school graduates get a diploma, channels and provide a chance for admission back to which gives them the right to take the mastership exam formal education. The “MoNE”’s only tool to recognize (the fourth level of the qualifications framework). prior learning is the competency-based testing to certify Graduates can continue their education in their field of qualifications in skilled and semi-skilled occupations (for study in a two-year post-secondary school without taking SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 29 TCC ǀ WORKFORCE DEVELOPMENT SABER REPORT |2016 foremen and masters) in occupations that fall under the This requires better monitoring of existing programs, and first four levels of the National Qualifications Framework. accountability for results. For CVET and ALMPs the Strict application criteria prove prior learning before a legislation could incorporate binding provisions to candidate takes the test. increase the allocation. Still, it may not be easy to design programs that are applicable to micro-sized family Lifelong learning (LLL) programs are being implemented enterprises with one or two workers. TCc authorities may by the “MoNE” in close collaboration with Turkey's consider introducing models to aggregate training needs “MoNE” LLL General Directorate. The TCc’s lifelong of smaller firms and to develop cost-sharing models to learning system offers very limited services for further expand coverage. Borrowing from Mexico’s Integral occupational and career development, as it is mostly Quality and Modernization Program (CIMO), which limited to hobby courses for the non-working subsidizes the development and delivery of training population. rather than providing direct training services to The Chambers of Industry and Commerce and the LLL participating firms, the “public administration” could centers established under local universities also provide identify worker training needs for participating firms and training programs to their members and other let them create individualized training and support interested parties (students, the unemployed, etc.) to schemes.23 help them develop basic and technical skills. Between The chambers could take on more responsibility by 2012 and 2014, about 900 chamber members bringing firms with similar needs together, and participated in courses on such subjects as leadership aggregating training demand from their member and management, customer relations, communications, enterprises. They could also engage in developing cost- time management, logistics and warehouse sharing models to expand coverage and scope of on- management. Non-formal education statistics of the the-job training programs. The TCc administration could “MoNE” show that participation in all private training consider recognizing employer associations and courses has varied between 1,500 and 2,000 students chambers as real and equal strategic partners in each year for the last five years.22 workforce development by, for example formalizing As explained under Policy Goal 4, two very recent active their role, rather than limiting the scope or duration of labor market programs have been established for coordination. Workforce development legislation could disadvantaged populations under the Regulation for bestow these stakeholders with a continuous Supporting the Employment of Local Workforce. These responsibility in defining workforce priorities and programs are: Reintroducing the Convicts to the Society addressing the skills implications of major policy through TVET, and Strengthening Women’s labor force decisions. The TCc administration should rely on participation through TVET. Though the administration international experience to develop such models (Box 4). intends to continue training programs for disadvantaged While competency standards 24 exist for most populations, it has not announced a continuation of occupations, the TCc should continue benefiting from these programs, or the introduction of new programs. EU alignment, and institutionalize clear and attainable Implications of the Findings standards for domestic quality-assurance systems. Carrying the value of qualifications across boundaries is Budget allocations for IVET, CVET and ALMPs as well as a necessity for the TCc due to the mobility of its labor the scope of the programs, are very limited. IVET gets force. Aligning the national qualifications with the less than 10 percent of the allocations for education, and European Qualifications Framework (EQF) is a sound less than 5 percent of funding under the levy-grant step. However, it needs continuous follow-up and scheme is allocated to support skills upgrading. For IVET, increased collaboration with EU partners to eliminate additional funding should be linked to enrollments, any risks that may limit the employability of the TCc labor performance, and effectiveness of training programs. force and graduates of the TCc TVET system in the future. 22 “MoNE”, 2015, Educational Statistics Yearbook 2014-2015. workers should possess to exhibit superior work performance in a given 23 Tan and Lopez-Acevedo 2005 job or work 24 Competency standards refer to a frame of reference or statement specifying the aptitudes, attitudes, knowledge, and skills that trainees and SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 30 TCC ǀ WORKFORCE DEVELOPMENT SABER REPORT |2016 Box 4 - Strengthening coordination and clarifying roles of firms and the public sector in WfD Both Ireland and Chile have successfully fostered coordination between businesses and governments for both strategy and service delivery. This success is reflected in the advanced scores for strengthening strategic coordination and fostering relevance of training programs for both countries in the most recent SABER WfD study year. Their experiences show that either party can lead in establishing such coordination. In Chile, mining companies under the leadership of the Chilean Mining Council and in collaboration with suppliers and contractors, training providers, and the government, created a two-pronged sector strategy for TVET to ensure that it served their training needs (Innovum Fundación Chile n.d.). The first component, a Mining Skills Council (CCM), was financed entirely by participating mining firms and was created to modernize training in the sector and ensure its relevance through the development of a sectoral qualifications framework, creation of training packages, accreditation of programs, and research to identify skills gaps. The second component, called VetaMinera, sought to plug immediate skills gaps by serving in an intermediary role to provide information on occupations in mining to students, maintain a database of graduates in the sector, and provide a coordinating function to promote the use of industry- developed standards in training. Based on industry-provided information on training gaps, government funds (totaling almost two- thirds of the total VetaMinera funding for the initial 2012–15 program duration) are made available to training providers on a competitive basis to encourage delivery of programs to address industry-identified gaps. In Ireland, the government created the Skillsnets Training Network Program to use the National Training Fund (sustained through a levy of employee wages) to overcome coordination and financial barriers to firm-based training while increasing employer funds devoted to workforce up-skilling and re-skilling. Firms with similar training needs, often in a related industry or region, self-select into networks and apply for funding through Skillsnets. Network member companies are able to purchase any type of training delivered through either classroom, on-the-job, or distance learning on a cost-matched basis using Skillsnet funds, while there are provisions for non-network companies to participate at higher rates and limited state-subsidized places for unemployed individuals. The program has enjoyed success since inception, currently sustaining 62 training networks with total government contributions of EUR 16 million. Source: Jee-Peng Tan, 2016. 6. Managing Service Delivery non-formal education aimed at providing training and education in line with the demands of the labor market Training providers, both “public and nonpublic,” are the to enhance skills and employability. Secondary and post- main channels through which workforce development secondary TVET schools teach the theory and practice of policies are translated into results on the ground. This various occupations. Apprenticeship training is typically chapter provides a brief overview of the composition of provided on the job to develop the practical skills needed providers and the types of services available in the by firms. Apprenticeship training normally consists of a system before presenting the detailed SABER-WfD combination of practical training in enterprises, and findings on service delivery and their policy implications. theoretical training provided in vocational education centers. Overview of the Delivery of Training Systematic monitoring and evaluation of service Services delivery are missing in the TCc and useful data on labor- This section briefly summarizes key features of service market outcomes of training is not available. While delivery, as reflected in data on: (i) enrollment trends by monitoring and evaluation of major programs can help level and type of training program (IVET, CVET and enhance the relevance and efficiency of the system, only ALMPs) and by type of provider (”public” and occasional studies are conducted within the context of “nonpublic”); (ii) prevalence of firm-based training; and projects financed by development partners. In summary, (iii) labor market outcomes of training. there is no functioning monitoring and evaluation system to improve skills, develop policies, or deliver services. The “public sector” (“MoNE”) is the sole provider of the TVET programs, which represent about 30 percent of all upper-secondary schools. TVET schools offer formal and SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 31 TCC ǀ WORKFORCE DEVELOPMENT SABER REPORT |2016 SABER-WfD Ratings on Service Delivery combining incentives and autonomy in the management of public institutions. The Policy Goals for this dimension of the SABER-WfD framework focus on the following three aspects of The TCc is rated at the emerging level for enabling service delivery: (i) enabling diversity and excellence in diversity and excellence in training provision, with an training provision; (ii) fostering relevance in public overall score of 1.9. training programs; and (iii) enhancing evidence-based While private initiatives can operate in all segments of accountability for results. The ratings for these three training and education, the TCc does not have any Policy Goals are presented below and are followed by a private secondary vocational schools. Private training reflection on their implications for policy dialogue. provision is widely seen in primary, and secondary non- Based on data collected in the SABER-WfD TVET schools representing almost 15% of the system. questionnaire, the TCc receives an overall score of 1.9 There is broad diversity in training provision in non-TVET (emerging) for the service delivery dimension (Figure 9). programs established by the National Education Law. If This score consists of the average of the ratings for three private secondary TVET initiatives started operating, underlying Policy Goals: (i) enabling diversity and they would likely benefit from the same mechanisms. excellence in training provision (2.0); (ii) fostering Private training provision in primary and secondary relevance in public training programs (1.7); and (iii) schools is subject to the same implementation and enhancing evidence-based accountability for results auditing requirements as those of public training (2.0). The explanation for these ratings and their provision. All private schools must be registered and implications follow below. audited by the “MoNE” in accordance with the National Education Auditing, Evaluating, and Steering Board Law Figure 9: SABER-WfD ratings for the service delivery (41/2006). “MoNE” auditors conduct regular and need- dimension based visits of public and private schools in line with internal guidelines for conducting audits. Private training providers at the secondary level do not need to renew their registration on a regular basis, and they continue their activities under the initial registration if regular audits do not turn up any irregularities. To get registered, training providers should satisfy the minimum criteria set by the “MoNE” including those on facility standards, staff composition, and financial Policy Goal 7: Enabling Diversity and Excellence stability. However, due to the lack of systematic processes for reviewing the policies on training in Training Provision provision, authorities are not always able to ensure the Because the demand for skills is impossible to predict quality of private training programs. with precision, a diversity of providers contributes to a The tertiary education system mainly consists of private strong workforce development system. Among non- universities that are governed by boards of trustees, state providers, the challenge is to temper the profit including businessmen, lawyers, and academics. YODAK motive or other program agendas with appropriate performs audits and oversees the accreditation regulation to assure quality and relevance. Among state procedures of universities. Theoretically, YODAK providers, a key concern is their responsiveness to the conducts annual audits of universities to measure their demand for skills from employers. One way to address compliance to national accreditation standards. this concern is to strike the right balance between However, the institutions are not expected to achieve institutional autonomy and accountability. Policy Goal 7 specific targets for desired workforce development takes these ideas into account and benchmarks the outcomes. The autonomy and accountability of training system according to the extent to which policies and providers vary between secondary and tertiary levels. institutional arrangements are in place to: (i) encourage and regulate non-state provision of training, and (ii) At the secondary level, “public schools” do not have foster excellence in public training provision by much independence, as they do not have their own SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 32 TCC ǀ WORKFORCE DEVELOPMENT SABER REPORT |2016 budgets, and the “MoNE” must approve all decisions Policy Goal 8: Fostering Relevance in Public regarding purchases. The “MoNE”’s central Training Programs administration has full control over decisions regarding budget use, hiring and dismissal of staff, and the Public training “institutions” need reliable information introduction and closure of programs. While managers of on current and emerging skills demands to keep their public training institutions have little control over program offerings relevant to market conditions. It is investment decisions, TVET schools may generate some therefore desirable for these institutions to establish and revenues under a revolving fund scheme, and can retain maintain relationships with employers, industry some of these revenues for their immediate needs. associations, and research institutions. Such partners can provide information about skills, competencies and Introduction and closure of programs at the secondary expertise, as well as advice on curriculum design and level is a systematic process, and the “MoNE” reviews technical specifications for training facilities and every program, with participation of stakeholders from equipment. They can also help create opportunities for the business sector and chambers. Actual changes in workplace training for students, and continuing programs rarely happen. When deciding whether to professional development for instructors and modify, open, or close programs, the administration administrators. Policy Goal 8 considers the extent to considers the demands of industry and the number of which arrangements are in place for public training students enrolled at the time of the review. In theory, providers to: (i) benefit from industry and expert input in policymakers may adjust the enrollment quota, if more the design of programs; and (ii) recruit administrators or fewer students are applying or enrolling. However, the and instructors with relevant qualifications, and support enrollment statistics tend to follow similar trends every their professional development. year. The last program to be introduced into the secondary TVET system was theology, in 2013.25 The TCc rates at the latent level of development for fostering relevance in public training programs. Post-secondary schools under universities have a higher degree of autonomy, as they set their own targets Formal links between vocational schools and industry within their academic programs, but these targets are can help to strengthen the relevance of “public” TVET not fully aligned with desired workforce development programs. The Employment Department of the “MoLSS” outcomes, University administrations, with the approval provides a list of enterprises with more than 20 of the board of trustees, set their own targets, and employees to the “MoNE”’s TVET General Directorate by implement their own training programs with YODAK’s May of each year. In consultation with the Chambers of close collaboration. YODAK does not have authority to Commerce and Industry, and Craftsmen and Artisans, the shut specific programs of individual universities, but it “MoNE” determines the sectoral and occupational may change the enrollment quota for programs that are training needs for TVET institutions, and informs TVET losing popularity, for example, banking, finance, schools and sector representatives accordingly. economics, and communications. Furthermore, the Enterprises where TVET trainings will be conducted are universities’ main income source comes from fees paid selected by October. The total number of students (10th by students, making the institutions financially to 12th graders) participating in vocational training independent. All universities may get limited support cannot constitute less than 10 percent of the total from the TCc administration from time to time, mainly in number of employees in the participating enterprise. In the form of capital investments. Any income generated the 2014-15 academic year, about 600 students took by the universities is used for educational purposes part in training programs. within the specific training institutions. Universities have Universities develop their own training curricula and full autonomy in deciding whether to continue or close receive approval from YODAK. Universities may contact any major programs in post-secondary initial vocational private sector companies and sector representatives training. They tend to base such decisions on student while developing specific programs for post-secondary demand and application and enrollment figures. TVET schools. 25 Though it is not a technical field, theology is placed under the TVET track as there is no other suitable track. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 33 TCC ǀ WORKFORCE DEVELOPMENT SABER REPORT |2016 Engagement with research institutions at the secondary delivering on expected outcomes. Such data also enables and tertiary level is limited. No local research authorities to identify gaps or challenges in training institutions conduct regular analysis on TVET or related provision, as well as areas of good practice. Additionally, issues. Although think tanks from Turkey engage with the periodic surveys and evaluations of major programs “MoNE” and “MoLSS” on a demand basis, and some generate complementary information that can help universities interact with research centers, no enhance the relevance and efficiency of the system as a collaboration exists with research institutions on the whole. Policy Goal 9 incorporates these ideas when design of curricula and facility standards. assessing the system’s arrangements for collecting and using data to focus attention on training outcomes, While participation is not mandatory, the “MoNE” efficiency, and innovation in service delivery. provides in-service training to all teachers and administrators every year in September and February. The TCc is at the emerging level for enhancing evidence- The TCc teachers and administrators can also participate based accountability for results, with an overall score of in in-service training programs conducted in Turkey. The 2.0. TCc does not have a central database to keep All “public” IVET institutions at the secondary- information on the participation of the TCc’s teachers education level must report specific data to the and administrators in the in-service programs conducted “MoNE”’s General Educational Services Directorate, in the TCc or Turkey, but participants must submit a which collects and publishes the education statistics for certificate of completion for these programs when each academic year. Starting in 2008, the education applying for administrative positions. statistics have been compiled, updated, released, and Training topics are selected based on the needs and developed on a systematic and continuous basis. The preferences of participants. Topics include: creative Educational Statistical Yearbook of the “MoNE” includes writing, organizational culture, management and a variety of data, including current education statistics motivation, conflict and stress management, and a and analysis of institutions, schools, teaching staff, course on how to develop self-confidence in children. students, graduates, adult learners, public and private Formal programs are mainly provided by the Turkish sector involvement. This data can be broken down Ministry of Education as part of the in-service training according to district, school, study field, class, gender, program for teachers in Turkey, and include topics such and nationality. The Yearbook also covers the number of as leadership, strategic management and planning, students in tertiary education, with general and regional computer literacy, MS Office, and human resources maps of public schools. management. The TCc does not have a regular process for collecting Though universities each have their own selection data through surveys. The sparse amount of data criteria and recruitment policies, they must abide by the collected is mainly quantitative and includes annual minimum standards for teaching and administrative student enrollment rates. Data on class size, positions that are defined by the law establishing the student/teacher ratio, and success and drop-out rates East Mediterranean University (dated 1986). Although are not collected or shared with the public, and the in-service training programs are not usually provided by “MoNE” does not monitor the performance of the universities, instructors are expected to be evaluated institutions in these areas. for their performance, and they must meet academic The “MoNE” has launched a study with the cooperation standards to maintain their positions. of the Statistics Research Department of the State Policy Goal 9: Enhancing Evidence-based Planning Organization, to raise the quality of Accountability for Results community education statistics so it is comparable to that of the European Union. When this study is Systematic monitoring and evaluation of service completed, the “MoNE” will have a better dataset for a delivery are important for both quality assurance and thorough analysis of system performance. system improvement. Accomplishing this function The limited data reported by “public” and private requires gathering and analyzing data from a variety of training providers, as well as those obtained via sources. The reporting of institution-level data enables surveys, are used to provide feedback to institutions. the relevant authorities to ensure that providers are SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 34 TCC ǀ WORKFORCE DEVELOPMENT SABER REPORT |2016 The data helps to identify good practices and system performance. The TCc may benefit from the innovations, and inform the design of policies for system- experiences of countries such as Chile and Colombia, to level improvements in service delivery. However, such inform policymakers about training options, graduate data is rarely used to improve program and system skills, career paths, job prospects, and earnings profiles. performance for IVET or lifelong-learning operations. Chile’s Mi Futuro program, for example, collects Though “public” training providers produce and submit information from education institutions on graduate an annual evaluation to the “MoNE” as a necessary part outcomes, and pairs it with data from the tax and of intradepartmental accountability, little information pension administrations to provide publicly available exists on labor market outcomes, because attempts to information on the incomes of graduates of professional measure this are limited to a few ad hoc, skills-related and technical programs. Such information provides an surveys or evaluations of specifically targeted programs. additional layer of transparency and accountability to the rapidly expanding tertiary education sector.29 Thus, even though some evidence of data collection Colombia’s Sistema Nacional de Informacion de la exists, the TCc lacks a system for feedback to improve Education Superior (SNIES) and Observatorio Laboral skills, develop policies, or deliver services. Occasional para la Educacion (OLE) provide information to help studies conducted in the context of projects financed by families evaluate the quality and potential benefits of development partners do not adequately address or various courses of study. The SNIES provides information overcome this challenge. 26 on programs and courses of study; socioeconomic Implications of the Findings information on current students and graduates; and information on institutional governance, infrastructure, Under the service delivery dimension, the SABER-WfD and funding arrangements, to allow for monitoring of the findings draw attention to the potential role of tertiary-education system and easy access by performance-enhancing strategies, such as using stakeholders to information on its make-up and content. incentives as a complement to regulation, to encourage The OLE provides information on graduate private providers to meet quality standards for service characteristics and outcomes to guide students, provision. Other potential strategies include setting employers, and schools. This information is paired with performance targets for public training institutions to surveys to measure graduate satisfaction, and sectoral focus their attention on efficiency and effectiveness, and studies to determine labor demand.30 The Chile example expanding the use of data for strategic management of can apply to a small island such as the TCc. the workforce development system as a whole.27 Effective monitoring and evaluation systems require Performance targets for public training providers and appropriate robust information systems and tools for corresponding incentives for meeting those targets are measuring quality and performance. The availability and currently underutilized, and bad performers are neither use of policy-relevant data is very limited in the TCc, as informed, incentivized, nor penalized, as a way to the use of decision-support systems and monitoring and improve performance. All training providers, “public” or evaluation do not garner significant attention. private, are required to collect and report basic Establishing an integrated Management Information administrative data, but officials only occasionally use System for employment and education inputs and the data to assess institutional performance or analyze outcomes can comprise the first step in establishing an system-level trends. evidence-based, strategic-thinking environment for the Collection of data on training outcomes28 may help TCc. Box 6 illustrates how South Korea adopted a ensure better distribution of resources for improved rigorous data-collection and monitoring system. 26 At the higher-education level, every university must report budgets. It lacks information on graduates, including job placements and administrative data to YODAK. As the diplomas provided by TCc earnings. universities are recognized by Turkey in line with the 2009 protocol 27 World Bank 2015, “Workforce Development in Emerging Economies.” between the Turkish-MoNE and its TCc counterpart. YODAK collects data 28 Covering job placement rates, earning statistics, and employer and from TCc universities for the integrated higher-education database with worker/trainee satisfaction. Turkish universities (YOKSIS), and for its own database for local 29 Mi Futuro website: http://www.mifuturo.cl universities (YODAKSIS). The systems include mainly graduation statistics, 30 Sistema Nacional de Informacion de la Educacion Superior. “SINES: and administrative data on such things as enrollments, staffing, and Informacion Institucional;” Graduados Colombia. “Graduados Colombia: Observatorio Laboral para la educacion.” SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 35 TCC ǀ WORKFORCE DEVELOPMENT SABER REPORT |2016 Box 6 - Relevant, Effective, and Lifelong Training: The Role of Data and Monitoring in South Korea In South Korea, to ensure that the skills taught to the current and future workforce are the right ones, the Ministry of Labor has been conducting rigorous and periodical human resources- and training-needs surveys by region among businesses since 2005. These surveys, aimed at providing authorities with the data necessary to plan training programs and make changes to course supply, include an “establishment survey,” a “training-demand survey among the unemployed,” and a survey among institutions to assess their ability to provide vocational training to the unemployed. In particular: x The “establishment survey” is divided into two parts: One targets employees to be trained in-house, and one focuses on workers to be trained externally by the firm. These surveys capture both the skills that are likely to be demanded in the near future (i.e. the additional-skills requirement) from new workers, but also the type of marginal skills improvements that firms are interested in making among their existing workers. Combined, these surveys allow the government to forecast future demand for workers by skills level and occupational sector. x The “training-demand survey among the unemployed” assesses the level of previous professional experience among the unemployed, future employment aspirations (as a dependent or self-employed worker), past training experiences (while unemployed), and future training needs. x The survey among institutions that are training the unemployed aims to assess the ability of such centers to meet future demand for their services. Currently, more than 700 vocational institutions participate in the survey, with a focus on past training achievements, upcoming training plans, and student body. Second, to ensure that training programs and institutions were still effective, a strict system of performance evaluations has been set up. To instill some degree of competition among institutions, the evaluations were used to award excellence but, most importantly, to punish poor performance. About 10% of all institutions evaluated have been shut down every year. The evaluation process, which has been carried out for up to 1,500 institutes, includes the collection of information on training centers through trainee-satisfaction surveys, an evaluation carried out by an inspector from Korea’s Human Resources Development Service, and an evaluation carried out by an inspector of the Ministry of Labor. Third, to ensure that training provision remained in line with market needs, the government decided to rely even more on the private sector’s initiative and to adopt a less interventionist approach to skills development. The aim of the government was to promote privately provided trainings at all levels and to foster “lifelong learning opportunities” for workers. As such, South Korea further strengthened the incentives system after dropping mandatory training requirements for firms in the mid-1990s and replacing them with a training levy/rebate system, in the early-2000s. Firms were still required to pay training levies as part of the employment insurance scheme, with the requirement gradually extended to all firms, including small and medium-sized enterprises. The categories of training expenses that qualified for a rebate of the levy were expanded significantly to include not only traditional vocational-training programs, but also pre-service courses, on-the-job training, and skills upgrading, taught in both public and private centers, internal to firms or externally provided. Finally, in line with its new objective to provide lifelong learning opportunities to all workers, the Korean government put a large emphasis on e-learning. E-learning courses are more convenient to attend and complete for older worker, because they provide more flexibility in terms of time and location, and the government has recognized such courses as a legitimate training expense, one for which firms could qualify for a levy rebate. The government’s support of e-learning activities paid off very rapidly. Between 1999 and 2006 alone, the share of e-learning training courses rose from less than 3 percent of total training provided in the country to about 40 percent--a more than fifty-fold increase in absolute terms. The number of e-learning courses totaled less than 20,000 in 1999, and settled at more than one million in 2006. Whether e-learning trainings are as effective as class-based or plan-based courses in terms of skills development remains to be seen, but surely it has boosted training accessibility in the country. Sources: Young-Sun Ra and Kyung Woo Shim, 2009; prepared by Kye Woo Lee, 2009. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 36 TCC ǀ WORKFORCE DEVELOPMENT SABER REPORT |2016 Annex 1: The SABER-WfD Analytical Framework Policy Goal Policy Action Topic Setting a Strategic G1_T1 Advocacy for WfD to Support Economic Development G1 Provide sustained advocacy for WfD at the top leadership level Direction G1_T2 Strategic Focus and Decisions by the WfD Champions Establish clarity on the demand for skills and areas of critical G2_T1 Overall Assessment of Economic Prospects and Skills Implications constraint G2_T2 Critical Skills Constraints in Priority Economic Sectors Fostering a Demand-led G2 G2_T3 Role of Employers and Industry Approach Engage employers in setting WfD priorities and in enhancing skills- G2_T4 Skills-Upgrading Incentives for Employers upgrading for workers G2_T5 Monitoring of the Incentive Programs Strategic G3_T1 Roles of Government Ministries and Agencies Dimension 1 Strengthening Critical Formalize key WfD roles for coordinated action on strategic G3 G3_T2 Roles of Non-Government WfD Stakeholders Coordination priorities G3_T3 Coordination for the Implementation of Strategic WfD Measures G4_T1 Overview of Funding for WfD G4_T2 Recurrent Funding for Initial Vocational Education and Training (IVET) Provide stable funding for effective programs in initial, continuing, Recurrent Funding for Continuing Vocational Education and Training G4_T3 and targeted vocational education and training Programs (CVET) Ensuring Efficiency and G4 Recurrent Funding for Training-related Active Labor Market Equity in Funding G4_T4 Programs (ALMPs) Monitor and enhance equity in funding for training G4_T5 Equity in Funding for Training Programs Facilitate sustained partnerships between training institutions and G4_T6 Partnerships between Training Providers and Employers employers Broaden the scope of competency standards as a basis for G5_T1 Competency Standards and National Qualifications Frameworks developing qualifications frameworks G5_T2 Competency Standards for Major Occupations G5_T3 Occupational Skills Testing Establish protocols for assuring the credibility of skills testing and Assuring Relevant and certification G5_T4 Skills Testing and Certification G5 G5_T5 Skills Testing for Major Occupations Reliable Standards G5_T6 Government Oversight of Accreditation Dimension 2 Develop and enforce accreditation standards for maintaining the G5_T7 Establishment of Accreditation Standards System Oversight quality of training provision G5_T8 Accreditation Requirements and Enforcement of Accreditation Standards G5_T9 Incentives and Support for Accreditation Promote educational progression and permeability through G6_T1 Learning Pathways multiple pathways, including for TVET students G6_T2 Public Perception of Pathways for TVET Diversifying Pathways Facilitate lifelong learning through articulation of skills certification G6_T3 Articulation of Skills Certification G6 G6_T4 Recognition of Prior Learning for Skills Acquisition and recognition of prior learning Provide support services for skills acquisition by workers, job- G6_T5 Support for Further Occupational and Career Development seekers and the disadvantaged G6_T6 Training-related Provision of Services for the Disadvantaged G7_T1 Scope and Formality of Non-State Training Provision G7_T2 Incentives for Non-State Providers Encourage and regulate non-state provision of training Enabling Diversity and G7_T3 Quality Assurance of Non-State Training Provision G7 Excellence in Training G7_T4 Review of Policies towards Non-State Training Provision Provision G7_T5 Targets and Incentives for Public Training Institutions Combine incentives and autonomy in the management of public G7_T6 Autonomy and Accountability of Public Training Institutions training institutions Service G7_T7 Introduction and Closure of Public Training Programs Integrate industry and expert input into the design and delivery of G8_T1 Links between Training Institutions and Industry Dimension 3 G8 public training programs G8_T2 Industry Role in the Design of Program Curricula SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 37 TCC ǀ WORKFORCE DEVELOPMENT SABER REPORT |2016 G8_T3 Industry Role in the Specification of Facility Standards G8_T4 Links between Training and Research Institutions Fostering Relevance in Recruitment and In-Service Training of Heads of Public Training Public Training G8_T5 Recruit and support administrators and instructors for enhancing Institutions Programs the market-relevance of public training programs Recruitment and In-Service Training of Instructors of Public Training G8_T6 Institutions Enhancing Evidence- G9_T1 Administrative Data from Training Providers Expand the availability and use of policy-relevant data for focusing G9 based Accountability for G9_T2 Survey and Other Data providers' attention on training outcomes, efficiency and innovation Results G9_T3 Use of Data to Monitor and Improve Program and System Performance Annex 2: Rubrics for Scoring the SABER-WfD Data Functional Dimension 1: Strategic Framework Polic Level of Development y Goal Latent Emerging Established Advanced Visible champions for WfD are Some visible champions provide Government leaders exercise Both government and non- either absent or take no specific ad-hoc advocacy for WfD and have sustained advocacy for WfD with government leaders exercise action to advance strategic WfD acted on few interventions to occasional, ad-hoc participation sustained advocacy for WfD, and priorities. advance strategic WfD priorities; from non-government leaders; rely on routine, institutionalized no arrangements exist to monitor their advocacy focuses on selected processes to collaborate on well- and review implementation industries or economic sectors and integrated interventions to progress. manifests itself through a range of advance a strategic, economy- specific interventions; wide WfD policy agenda; implementation progress is implementation progress is monitored, albeit through ad-hoc monitored and reviewed through Direction for WfD reviews. routine, institutionalized G1: Setting a Strategic processes. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 38 TCC ǀ WORKFORCE DEVELOPMENT SABER REPORT |2016 Functional Dimension 1: Strategic Framework Policy Level of Development Goal Latent Emerging Established Advanced There is no assessment of the Some ad-hoc assessments exist on Routine assessments based on A rich array of routine and robust country's economic prospects and the country's economic prospects multiple data sources exist on the assessments by multiple their implications for skills; and their implications for skills; country's economic prospects and stakeholders exists on the industry and employers have a some measures are taken to their implications for skills; a wide country's economic prospects and limited or no role in defining address critical skills constraints range of measures with broad their implications for skills; the strategic WfD priorities and (e.g., incentives for skills upgrading coverage are taken to address information provides a basis for a receive limited support from the by employers); the government critical skills constraints; the wide range of measures with government for skills upgrading. makes limited efforts to engage government recognizes employers broad coverage that address employers as strategic partners in as strategic partners in WfD, critical skills constraints; the WfD. formalizes their role, and government recognizes employers provides support for skills as strategic partners in WfD, upgrading through incentive formalizes their role, and schemes that are reviewed and provides support for skills Approach to WfD adjusted. upgrading through incentives, including some form of a levy- grant scheme, that are G2: Fostering a Demand-Led systematically reviewed for impact and adjusted accordingly. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 39 TCC ǀ WORKFORCE DEVELOPMENT SABER REPORT |2016 Functional Dimension 1: Strategic Framework Policy Level of Development Goal Latent Emerging Established Advanced Industry/employers have a Industry/employers help define Industry/employers help define Industry/employers help define limited or no role in defining WfD priorities on an ad-hoc basis WfD priorities on a routine basis WfD priorities on a routine basis strategic WfD priorities; the and make limited contributions to and make some contributions in and make significant contributions government either provides no address skills implications of major selected areas to address the skills in multiple areas to address the incentives to encourage skills policy/investment decisions; the implications of major skills implications of major upgrading by employers or government provides some policy/investment decisions; the policy/investment decisions; the conducts no reviews of such incentives for skills upgrading for government provides a range of government provides a range of incentive programs. formal and informal sector incentives for skills upgrading for incentives for skills upgrading for employers; if a levy-grant scheme all employers; a levy-grant scheme all employers; a levy-grant scheme exists its coverage is limited; with broad coverage of formal with comprehensive coverage of incentive programs are not sector employers exists; incentive formal sector employers exists; systematically reviewed for programs are systematically incentive programs to encourage impact. reviewed and adjusted; an annual skills upgrading are systematically for Implementation report on the levy-grant scheme is reviewed for impact on skills and published with a time lag. productivity and are adjusted accordingly; an annual report on the levy-grant scheme is published in a timely fashion. G3: Strengthening Critical Coordination SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 40 TCC ǀ WORKFORCE DEVELOPMENT SABER REPORT |2016 Functional Dimension 2: System Oversight Policy Level of Development Goal Latent Emerging Established Advanced The government funds IVET, CVET The government funds IVET, CVET The government funds IVET, CVET The government funds IVET, CVET and ALMPs (but not OJT in SMEs) (including OJT in SMEs) and ALMPs; (including OJT in SMEs) and ALMPs; (including OJT in SMEs) and ALMPs; based on ad-hoc budgeting funding for IVET and CVET follows funding for IVET is routine and funding for IVET is routine and processes, but takes no action to routine budgeting processes based on multiple criteria, including based on comprehensive criteria, facilitate formal partnerships involving only government officials evidence of program effectiveness; including evidence of program between training providers and with allocations determined largely recurrent funding for CVET relies on effectiveness, that are routinely employers; the impact of funding on by the previous year's budget; formal processes with input from reviewed and adjusted; recurrent the beneficiaries of training funding for ALMPs is decided by key stakeholders and annual funding for CVET relies on formal programs has not been recently government officials on an ad-hoc reporting with a lag; funding for processes with input from key reviewed. basis and targets select population ALMPs is determined through a stakeholders and timely annual groups through various channels; the systematic process with input from reporting; funding for ALMPs is government takes some action to key stakeholders; ALMPs target determined through a systematic facilitate formal partnerships diverse population groups through process with input from key between individual training various channels and are reviewed stakeholders; ALMPs target diverse providers and employers; recent for impact but follow-up is limited; population groups through various reviews considered the impact of the government takes action to channels and are reviewed for funding on only training-related facilitate formal partnerships impact and adjusted accordingly; indicators (e.g. enrollment, between training providers and the government takes action to completion), which stimulated employers at multiple levels facilitate formal partnerships dialogue among some WfD (institutional and systemic); recent between training providers and stakeholders. reviews considered the impact of employers at all levels (institutional funding on both training-related and systemic); recent reviews indicators and labor market considered the impact of funding on outcomes; the reviews stimulated a full range of training-related dialogue among WfD stakeholders indicators and labor market and some recommendations were outcomes; the reviews stimulated G4: Ensuring Efficiency and Equity in Funding implemented. broad-based dialogue among WfD stakeholders and key recommendations were implemented. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 41 TCC ǀ WORKFORCE DEVELOPMENT SABER REPORT |2016 Functional Dimension 2: System Oversight Policy Level of Development Goal Latent Emerging Established Advanced Policy dialogue on A few stakeholders engage in Numerous stakeholders engage in All key stakeholders engage in policy competency standards ad-hoc policy dialogue on policy dialogue on competency dialogue on competency standards and/or the NQF occurs on an competency standards and/or standards and/or the NQF through and/or the NQF through ad-hoc basis with limited the NQF; competency standards institutionalized processes; institutionalized processes; engagement of key exist for a few occupations and competency standards exist for most competency standards exist for most stakeholders; competency are used by some training occupations and are used by some occupations and are used by training standards have not been providers in their programs; training providers in their programs; providers in their programs; the NQF, if defined; skills testing for skills testing is competency- the NQF, if in place, covers some in place, covers most occupations and a major occupations is mainly based for a few occupations but occupations and a range of skill levels; wide range of skill levels; skills testing theory-based and for the most part is mainly skills testing for most occupations for most occupations follows standard certificates awarded are theory-based; certificates are follows standard procedures, is procedures, is competency-based and recognized by public sector recognized by public and some competency-based and assesses both assesses both theoretical knowledge employers only and have private sector employers but theoretical knowledge and practical and practical skills; robust protocols, little impact on employment have little impact on skills; certificates are recognized by including random audits, ensure the and earnings; no system is in employment and earnings; the both public and private sector credibility of certification; certificates place to establish accreditation of training employers and may impact are valued by most employers and accreditation standards. providers is supervised by a employment and earnings; the consistently improve employment dedicated office in the relevant accreditation of training providers is prospects and earnings; the ministry; private providers are supervised by a dedicated agency in accreditation of training providers is required to be accredited, the relevant ministry; the agency is supervised by a dedicated agency in the however accreditation responsible for defining accreditation relevant ministry; the agency is standards are not consistently standards with stakeholder input; responsible for defining accreditation publicized or enforced; standards are reviewed on an ad-hoc standards in consultation with providers are offered some basis and are publicized or enforced to stakeholders; standards are reviewed incentives to seek and retain some extent; all providers receiving following established protocols and are G5: Assuring Relevant and Reliable Standards accreditation. public funding must be accredited; publicized and routinely enforced; all providers are offered incentives and training providers are required as well as limited support to seek and retain offered incentives and support to seek accreditation. and retain accreditation. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 42 TCC ǀ WORKFORCE DEVELOPMENT SABER REPORT |2016 Functional Dimension 2: System Oversight Level of Development Policy Goal Latent Emerging Established Advanced Students in technical and Students in technical and vocational Students in technical and vocational Students in technical and vocational vocational education have few or education can only progress to education can progress to education can progress to academically no options for further formal vocationally-oriented, non- vocationally-oriented programs, or vocationally-oriented programs, skills acquisition beyond the university programs; the including at the university level; including at the university level; the secondary level and the government takes limited action to the government takes some action to government takes coherent action on government takes no action to improve public perception of TVET improve public perception of TVET multiple fronts to improve public improve public perception of (e.g. diversifying learning (e.g. diversifying learning pathways perception of TVET (e.g. diversifying TVET; certificates for technical pathways); some certificates for and improving program quality) and learning pathways and improving and vocational programs are not technical and vocational programs reviews the impact of such efforts on program quality and relevance, with the recognized in the NQF; are recognized in the NQF; few an ad-hoc basis; most certificates for support of a media campaign) and qualifications certified by non- qualifications certified by non- technical and vocational programs routinely reviews and adjusts such Education ministries are not Education ministries are recognized are recognized in the NQF; a large efforts to maximize their impact; most recognized by formal programs by formal programs under the number of qualifications certified by certificates for technical and vocational under the Ministry of Education; Ministry of Education; non-Education ministries are programs are recognized in the NQF; a recognition of prior learning policymakers pay some attention to recognized by formal programs under large number of qualifications certified receives limited attention; the the recognition of prior learning the Ministry of Education, albeit by non-Education ministries are government provides practically and provide the public with some without the granting of credits; recognized and granted credits by no support for further information on the subject; the policymakers give some attention to formal programs under the Ministry of occupational and career government offers limited services the recognition of prior learning and Education; policymakers give sustained development, or training for further occupational and career provide the public with some attention to the recognition of prior programs for disadvantaged development through stand-alone information on the subject; a formal learning and provide the public with populations. local service centers that are not association of stakeholders provides comprehensive information on the integrated into a system; training dedicated attention to adult learning subject; a national organization of programs for disadvantaged issues; the government offers limited stakeholders provides dedicated populations receive ad-hoc services for further occupational and attention to adult learning issues; the support. career development, which are government offers a comprehensive available through an integrated menu of services for further occupational network of centers; training and career development, including programs for disadvantaged online resources, which are available G6: Diversifying Pathways for Skills Acquisition populations receive systematic through an integrated network of support and are reviewed for impact centers; training programs for on an ad-hoc basis. disadvantaged populations receive systematic support with multi-year budgets and are routinely reviewed for impact and adjusted accordingly. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 43 TCC ǀ WORKFORCE DEVELOPMENT SABER REPORT |2016 Functional Dimension 3: Service Delivery Level of Development Policy Goal Latent Emerging Established Advanced There is no diversity of training There is some diversity in training There is diversity in training There is broad diversity in training provision as the system is largely provision; non-state providers provision; non-state training provision; non-state training comprised of public providers operate with limited government providers, some registered and providers, most registered and with limited or no autonomy; incentives and governance over licensed, operate within a range of licensed, operate with training provision is not informed registration, licensing and quality government incentives, systematic comprehensive government by formal assessment, stakeholder assurance; public training is quality assurance measures and incentives, systematic quality input or performance targets. provided by institutions with some routine reviews of government assurance measures and routine autonomy and informed by some policies toward non-state training review and adjustment of assessment of implementation providers; public providers, mostly government policies toward non- constraints, stakeholder input and governed by management boards, state training providers; public basic targets. have some autonomy; training providers, mostly governed by provision is informed by formal management boards, have analysis of implementation significant autonomy; decisions constraints, stakeholder input and about training provision are time- Training Provision basic targets; lagging providers bound and informed by formal receive support and exemplary assessment of implementation institutions are rewarded. constraints; stakeholder input and use of a variety of measures to incentivize performance include G7: Enabling Diversity and Excellence in support, rewards and performance- based funding. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 44 TCC ǀ WORKFORCE DEVELOPMENT SABER REPORT |2016 Functional Dimension 3: Service Delivery Policy Level of Development Goal Latent Emerging Established Advanced There are few or no attempts to Relevance of public training is Relevance of public training is Relevance of public training is foster relevance in public training enhanced through informal links enhanced through formal links enhanced through formal links programs through encouraging between some training institutions, between some training institutions, between most training institutions, links between training institutions, industry and research institutions, industry and research institutions, industry and research institutions, industry and research institutions including input into the design of leading to collaboration in several leading to significant collaboration or through setting standards for curricula and facility standards; areas including but not limited to in a wide range of areas; heads and the recruitment and training of heads and instructors are recruited the design of curricula and facility instructors are recruited on the heads and instructors in training on the basis of minimum academic standards; heads and instructors basis of minimum academic and institutions. standards and have limited are recruited on the basis of professional standards and have opportunities for professional minimum academic and regular access to diverse development. professional standards and have opportunities for professional regular access to opportunities for development, including industry Public Training Programs G8: Fostering Relevance in professional development. attachments for instructors. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 45 TCC ǀ WORKFORCE DEVELOPMENT SABER REPORT |2016 Functional Dimension 3: Service Delivery Level of Development Policy Goal Latent Emerging Established Advanced There are no specific data Training providers collect and Training providers collect and Training providers collect and collection and reporting report administrative data and report administrative and other report administrative and other requirements, but training there are significant gaps in data (e.g., job placement statistics, data (e.g., job placement statistics, providers maintain their own reporting by non-state providers; earnings of graduates) and there earnings of graduates) and there databases; the government does some public providers issue annual are some gaps in reporting by non- are few gaps in reporting by non- not conduct or sponsor skills- reports and the government state providers; most public state providers; most public related surveys or impact occasionally sponsors or conducts providers issue internal annual providers issue publicly available evaluations and rarely uses data skills-related surveys; the reports and the government annual reports and the government to monitor and improve system government does not consolidate routinely sponsors skills-related routinely sponsors or conducts performance. data in a system-wide database and surveys; the government skills-related surveys and impact uses mostly administrative data consolidates data in a system-wide evaluations; the government to monitor and improve system database and uses administrative consolidates data in a system- performance; the government data and information from surveys wide, up to date database and publishes information on graduate to monitor and improve system uses administrative data, labor market outcomes for some performance; the government information from surveys and training programs. publishes information on graduate impact evaluations to monitor and Accountability for Results labor market outcomes for improve system performance; the G9: Enhancing Evidence-based numerous training programs. government publishes information on graduate labor market outcomes for most training programs online. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 46 TCC ǀ WORKFORCE DEVELOPMENT SABER REPORT |2016 Annex 3: SABER-WfD Scores Policy Policy Action Topic Goal G1_T1 3 G1 3.0 Provide sustained advocacy for WfD at the top leadership level 3.0 G1_T2 3 G2_T1 2 Dimension 1 Establish clarity on the demand for skills and areas of critical constraint 2.0 G2_T2 2 G2 1.8 G2_T3 2 2.5 Engage employers in setting WfD priorities and in enhancing skills-upgrading 1.7 G2_T4 2 for workers G2_T5 1 G3_T1 4 G3 2.7 Formalize key WfD roles for coordinated action on strategic priorities 2.7 G3_T2 2 G3_T3 2 G4_T1 info Provide stable funding for effective programs in initial, continuing and targeted G4_T2 2 2.0 vocational education and training G4_T3 2 G4_T4 2 G4 1.4 G4_T5_IVET 1 Monitor and enhance equity in funding for training 1.0 G4_T5_CVET 1 G4_T5_ALMP 1 Facilitate sustained partnerships between training institutions and employers 1.0 G4_T6 1 Broaden the scope of competency standards as a basis for developing G5_T1 2 2.0 Dimension 2 qualifications frameworks G5_T2 2 G5_T3 2 2.0 Establish protocols for assuring the credibility of skills testing and certification 3.0 G5_T4 3 G5 2.5 G5_T5 4 G5_T6 info Develop and enforce accreditation standards for maintaining the quality of G5_T7 3 2.3 training provision G5_T8 2 G5_T9 2 Promote educational progression and permeability through multiple pathways, G6_T1 3 2.5 including for TVET students G6_T2 2 G6_T3 2 G6 2.2 Strengthen the system for skills certification and recognition 2.0 G6_T4 2 Enhance support for skills acquisition by workers, job-seekers and the G6_T5 2 2.0 disadvantaged G6_T6 2 G7_T1 3 G7_T2 2 Encourage and regulate non-state provision of training 2.0 G7_T3 2 G7 2.0 G7_T4 1 G7_T5 1 Combine incentives and autonomy in the management of public training 2.0 G7_T6 3 Dimension 3 institutions G7_T7 2 G8_T1 2 1.9 Integrate industry and expert input into the design and delivery of public G8_T2 2 1.5 training programs G8_T3 1 G8 1.7 G8_T4 1 Recruit and support administrators and instructors for enhancing the market- G8_T5 2 2.0 relevance of public training programs G8_T6 2 G9_T1 3 Expand the availability and use of policy-relevant data for focusing providers' G9 2.0 2.0 G9_T2 2 attention on training outcomes, efficiency and innovation G9_T3 1 SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 47 TCC ǀ WORKFORCE DEVELOPMENT SABER REPORT |2016 Annex 4: Experts List of Interviewees Ayşe Dönmezer, Cyprus Turkish Hotelkeepers Association (KITOB) Ayşe Vilda, State Planning Organization (SPO) Ceren Günalp Asam, “Ministry of Labor and Social Security” (“MoLSS”) Deniz Berkol, Cyprus Turkish Chamber of Industry (KTSO) Eda Hançer Akkor, Cyprus Turkish Chamber of Craftsmen and Artisans (KTEZO) Gulsen Hocanin, “Ministry of National Education” (“MoNE”) Huseyin Firinciogullari, “Ministry of National Education” (“MoNE”) Hüseyin Gökçekuş, Higher Education, Planning, Evaluation, Accreditation, and Coordination Council (YÖDAK) Ismet Lisaniler, “Ministry of Labor and Social Security” Kemal Baykallı, Cyprus Turkish Chamber of Commerce (KTTO) Kemal Soyer, Higher Education Planning, Evaluation, Accreditation, and Coordination Council (YÖDAK) Olgun Çiçek, Higher Education Planning, Evaluation, Accreditation, and Coordination Council (YODAK) Şebnem Pekdoğan, “Ministry of National Education” (“MoNE”) Taner Akcan, Cyprus Turkish Chamber of Craftsmen and Artisans Participants of the Data-collection and Validation Workshops Ayşe Dönmezer, Cyprus Turkish Hotelkeepers Association (KITOB) Ayşe Mir, Ministry of National Education (“MoNE”) Berna Berberoğlu, EUPSOCemal Kılıç, East Mediterranean University Ceren Günalp Asam, Ministry of Labor and Social Security Deniz Berkol, Cyprus Turkish Chamber of Industry (KTSO) Damla Onurhan, EU Coordination Eda Hançer Akkor, Cyprus Turkish Chamber of Craftsmen and Artisans (KTEZO) Hüseyin Aktuğ, Cyprus Turkish Hotelkeepers Association (KITOB) Hüseyin Gökçekuş, Higher Education Planning, Evaluation, Accreditation, and Coordination Council (YÖDAK) Kemal Baykallı, Cyprus Turkish Chamber of Commerce (KTTO) Kemal Soyer, Higher Education Planning, Evaluation, Accreditation, and Coordination Council (YÖDAK) Nihat Ekizoğlu, Ministry of National Education (“MoNE”) Nisu Cürcani, EU Coordination Olgun Çiçek, Higher Education Planning, Evaluation, Accreditation, and Coordination Council (YÖDAK) Şebnem Pekdoğan, Ministry of National Education (“MoNE”) SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 48 TCC ǀ WORKFORCE DEVELOPMENT SABER REPORT |2016 Selda Beyaz, Nova Bank Tamer Müftüzade, Businessmen Association (ISAD) Taner Akcan, Cyprus Turkish Chamber of Craftsmen and Artisans (KTEZO) Tigün Ertanın, Is Kadinlari Dernegi (IKD), “Businesswomen Association of Northern Cyprus” Tuğyan Atıfsoy, EU Coordination Uğur Ergun, Kuzey Kibris Genc Isadamlari Dernegi (GIAD), “Northern Cyprus Young Businessmen Association” Umut Vekil, Businessmen Association SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 49 TCC ǀ WORKFORCE DEVELOPMENT SABER REPORT |2016 Acknowledgements This report is the product of collaboration among Ahmet Levent Yener (Senior Human Development Specialist, World Bank), Alessandra Marini (Senior Economist, World Bank and Task Team Leader), and Michele Zini (Economist, World Bank), under the guidance of Practice Managers Cristian Aedo and Andrew Mason, as well as Audrene Eloit and Viviana V. Roseth, members of the SABER-WfD team based in the World Bank’s Education Global Practice. The three main authors (Yener, Marini and Zini) collected the data using the SABER-WfD data collection instrument, validated data and findings and prepared the report; the SABER-WfD team scored the data, provided technical assistance during the collection and validation of data, and made substantive contributions to the final write-up. This report benefited from suggestions and feedback from peer reviewers Anna Olefir (Education Specialist) and Nina Arnhold (Senior Education Specialist). The report was produced as one of the Activities of Component 4, “Promoting Employability and Skills Development in the TCc (P155911),” under the broader “Supporting Economic Convergence of the Turkish Cypriot Community (TCc)” program with the European Union. The team gratefully acknowledges the generous support of the European Union, which funded this activity. It also acknowledges the financial support of the Government of the United Kingdom through its Department of International Development’s Partnership for Education Development with the World Bank. The U.K.’s backing made it possible for the Education Team SABER-WfD team to provide technical support to the principal investigator in the form of standardized tools for, and guidance on, data collection, analysis, and reporting. Finally, the research team acknowledges the support of all the participants from relevant public agencies, and others who contributed to the report and its findings, including experts, survey respondents, and participants at various consultation workshops, as well as Alexandria Valerio from the SABER-WfD team at the World Bank. References “2013-2015 Program for Transition to Sustainable Economy.” Turkish Cypriot Community. 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