Core Competencies and Skills Core Competencies and Skills in the Knowledge Economyin the Knowledge Economy

-- Implications for OECS Implications for OECS

Eduardo VelezEduardo VelezMay 16-17, 2006May 16-17, 2006

evelezbustillo@worldbank.orgevelezbustillo@worldbank.org

Presentation StructurePresentation Structure

Knowledge Revolution and Implications Knowledge Revolution and Implications for Education and Trainingfor Education and Training

Measuring Education and Training in a Measuring Education and Training in a Knowledge Economy PerspectiveKnowledge Economy Perspective

Key Competencies in the KEKey Competencies in the KE International BenchmarkingInternational Benchmarking Towards a More Effective and Efficient Towards a More Effective and Efficient

System System

Knowledge RevolutionKnowledge Revolution Increased global knowledge and development of new Increased global knowledge and development of new

technologies, rapid speed of innovation, shorter technologies, rapid speed of innovation, shorter product life cycles, productivity and upskilling of labor product life cycles, productivity and upskilling of labor force, as well as intensified globalization and force, as well as intensified globalization and competition have all characterized the “Knowledge competition have all characterized the “Knowledge Revolution”. Revolution”.

The workforce is “upgrading”, both in terms of the The workforce is “upgrading”, both in terms of the average educational level of workers and the types of average educational level of workers and the types of job that they are performing.job that they are performing.

The ability to create, access and apply knowledge is The ability to create, access and apply knowledge is thus becoming fundamental determinant of global thus becoming fundamental determinant of global competitiveness.competitiveness.

World GDP/capita and Population – World GDP/capita and Population – Role of KnowledgeRole of Knowledge

World GDP/capita and Population A Two Millennium Perspective

0

1000

2000

3000

4000

5000

6000

0

12

0

20

0

28

0

36

0

44

0

52

0

60

0

68

0

76

0

84

0

92

0

10

00

10

80

11

60

12

40

13

20

14

00

14

80

15

60

16

40

17

20

18

00

18

70

19

50

19

98

0

1000

2000

3000

4000

5000

6000

7000

World GDP per capita (1990 international $) World Population (Million)

GDP per capita

World Population (mill)

©Knowledge for Development, WBI©Knowledge for Development, WBI

Implications for Education & TrainingImplications for Education & Training

Knowledge Revolution meansKnowledge Revolution means– Risk of knowledge divide across and within Risk of knowledge divide across and within

countriescountries– Constant need for new skills for people out of Constant need for new skills for people out of

school and in labor forceschool and in labor force– Higher levels of education necessary to use, Higher levels of education necessary to use,

adapt, and create new knowledgeadapt, and create new knowledge Education and training therefore are the key Education and training therefore are the key

enablers of the knowledge economyenablers of the knowledge economy Necessary to increase educational attainment Necessary to increase educational attainment

and provide continuous training of labor forceand provide continuous training of labor force

©Knowledge for Development, WBI©Knowledge for Development, WBI

Demand for Knowledge Workers Constantly on Rise 1980-98Demand for Knowledge Workers Constantly on Rise 1980-98

Average

annual %

Change

in total

employment

Human Capital and Knowledge are the Human Capital and Knowledge are the Keys for ProductivityKeys for Productivity

-2

-1

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1

2

3

4

5

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Hours worked Level of education

Hourly GDP per efficient unit of labour Labour productivity

Source: OECD

A Framework for Knowledge A Framework for Knowledge EconomyEconomy

Economic incentive and institutional regime Economic incentive and institutional regime that provides incentives for the efficient use of that provides incentives for the efficient use of existing and new knowledge and the existing and new knowledge and the flourishing of entrepreneurshipflourishing of entrepreneurship

Educated, creative and skilled peopleEducated, creative and skilled people Dynamic information infrastructure Dynamic information infrastructure Effective national innovation systemEffective national innovation system

Characteristics of a Globalized Characteristics of a Globalized Knowledge EconomyKnowledge Economy

Rapid and continuous change Rapid and continuous change Function of global trading agreementsFunction of global trading agreements Quality as important as priceQuality as important as price Organizational changes at firm levelOrganizational changes at firm level Short job tenure in competitive sectorsShort job tenure in competitive sectors Fundamentals of macro stability, Fundamentals of macro stability,

openness, competition, good openness, competition, good governancegovernance

Knowledge Assessment Knowledge Assessment Methodology (KAM)Methodology (KAM)

KAM: 76 structural/qualitative variables KAM: 76 structural/qualitative variables to benchmark performance on 4 pillars to benchmark performance on 4 pillars

Variables normalized from 0 (worst) to Variables normalized from 0 (worst) to 10 (best) for 121 countries10 (best) for 121 countries

www1.worldbank.org/gdln/kam.htmwww1.worldbank.org/gdln/kam.htm Basic scorecard for 14 variables at two Basic scorecard for 14 variables at two

points in time, 1995 and 2002points in time, 1995 and 2002

Measuring Knowledge for Measuring Knowledge for DevelopmentDevelopment

Measuring Education and TrainingMeasuring Education and Training

Core Competencies in the KECore Competencies in the KE

There is no universal definition so far;There is no universal definition so far; The Definition and Selection of The Definition and Selection of

Competencies (DeSeCo) Project of the Competencies (DeSeCo) Project of the OECD reviewed 12 countries on OECD reviewed 12 countries on competencies for a knowledge society;competencies for a knowledge society;

Despite wide variations in definitions of Despite wide variations in definitions of competencies in the 12 countries, the competencies in the 12 countries, the DeSeCo found some competencies DeSeCo found some competencies appearing in most reports. appearing in most reports.

Key Competencies Frequently Cited in DeSeCo’s Country Reports

High Medium LowSocial

competencies/ cooperation

Self-competence/self-management

Health/sports/physical

competencies

Literacy/intelligent and

applicable knowledge

Political competence/ democracy

Cultural competencies

(athletic, creative, intercultural,

media)

Learning competencies/

lifelong learning

Ecological competence/

relation to nature

Communication competencies

Value orientation

(Source: Reychen and Salganik 2003)

Key Competencies Have Key Competencies Have Multiple DimensionsMultiple Dimensions

Complexity and uncertainty of modern life Complexity and uncertainty of modern life requires people to apply more than one type requires people to apply more than one type of competency to tackle tasks and issues that of competency to tackle tasks and issues that they face. they face.

Given this background, the DeSeCo sees that Given this background, the DeSeCo sees that key competencies have many dimensions (for key competencies have many dimensions (for example: cognitive, motivational, ethical, and example: cognitive, motivational, ethical, and social components) and they are interrelated. social components) and they are interrelated.

Based on extensive research then, the Based on extensive research then, the DeSeCo identified three groups of key DeSeCo identified three groups of key competencies.competencies.

Key Competencies Identified by DeSeCoKey Competencies Identified by DeSeCo

Interacting in Interacting in socially socially

heterogeneous heterogeneous groupsgroups

Acting Acting autonomouslyautonomously

Using tools interactivelyUsing tools interactively

To relate well to To relate well to othersothers

Acting within the big Acting within the big picture or the larger picture or the larger context context

Using language, symbols, and Using language, symbols, and text interactively (written and text interactively (written and spoken, communication, spoken, communication, mathematical skills in multiple mathematical skills in multiple situations) situations)

To cooperate To cooperate Forming and Forming and conducting life plans conducting life plans and personal projects and personal projects

Using knowledge and Using knowledge and information interactively information interactively

To manage and To manage and resolve conflict resolve conflict

Defending and Defending and asserting one’ rights, asserting one’ rights, interests, limits, and interests, limits, and needsneeds

Using technology interactively Using technology interactively (understanding the potential of (understanding the potential of technology and identifying technology and identifying technological solutions to technological solutions to problems) problems)

(Source: Reychen and Salganik 2003)

Characteristics 1994 1997Applicant's attitude 4.6 4.6Applicant's communication skills 4.2 4.1Previous employer references 3.4 3.9Previous work experience 4 3.8Industry based credential 3.2 3.2Years of completed schooling 2.9 2.9Academic performance 2.5 2.5Score on test administered as part of the interview 2.5 2.3Teachers recommendations 2.1 2Experience or reputation of applicant's school 2.4 2

Employers Response to the Question:"what characteristics or attributes are most critical in making your hiring decision?"

Average of Responses on a scale of 1 to 5: 1= not at all important … to 5= essential

Source: Shapiro et al., 1998Key Competencies and Skills from Employers’ Key Competencies and Skills from Employers’ PerspectivePerspective

Source: Shapiro et al., 1998

Employers’ hiring criteria in the US Employers’ hiring criteria in the US

In the United Kingdom, employers reported that communication skills, In the United Kingdom, employers reported that communication skills, learning ability, problem-solving skills, team work and the capacity for self-learning ability, problem-solving skills, team work and the capacity for self-management were more important than technical, ICT or numeracy skills management were more important than technical, ICT or numeracy skills as criteria in the recruitment of graduates.as criteria in the recruitment of graduates.

Workplace Competencies: The World Workplace Competencies: The World Bank viewBank view

The mostly agreed upon workplace competencies include:The mostly agreed upon workplace competencies include: Inter-personal skills:Inter-personal skills:

– Team work and the ability to collaborate in pursuit of a common objectiveTeam work and the ability to collaborate in pursuit of a common objective– Leadership capabilitiesLeadership capabilities

Intra-personal skills:Intra-personal skills:– Motivation and attitudeMotivation and attitude– The ability to learnThe ability to learn– Problem-solving skills to cope with risk and changeProblem-solving skills to cope with risk and change– Effective communication with colleagues and clientsEffective communication with colleagues and clients– Analytical skillsAnalytical skills– Knowledge and participation in civil societyKnowledge and participation in civil society

Technical skillsTechnical skills (literacy, foreign languages widely used, math & science, (literacy, foreign languages widely used, math & science, analytical skills)analytical skills)

Technological or ICT skillsTechnological or ICT skills

Learning in Knowledge EconomyLearning in Knowledge Economy

ThenThenInformation basedInformation basedRote learningRote learningAll learners do same thingAll learners do same thingTeacher directedTeacher directedJust in case Just in case Formal education onlyFormal education onlyDirective based Directive based Learn at a given ageLearn at a given ageTest given to prevent Test given to prevent

progressprogressTerminal educationTerminal education

Now – Lifelong LearningNow – Lifelong LearningKnowledge creation/applicationKnowledge creation/applicationAnalysis and synthesisAnalysis and synthesisIndividual learning plansIndividual learning plansCollaborative learningCollaborative learningJust in timeJust in timeVariety of learning modes Variety of learning modes Initiative basedInitiative basedIncentives, motivation to learnIncentives, motivation to learnAssessments are given to guide Assessments are given to guide

learninglearningLifelong learningLifelong learning

International TestsInternational Tests PISA (Program for International Student Assessment) assesses the PISA (Program for International Student Assessment) assesses the

15-year-old students on reading, mathematic, and scientific literacy. 15-year-old students on reading, mathematic, and scientific literacy. PISA aims to measure student ability to apply acquired knowledge in PISA aims to measure student ability to apply acquired knowledge in real life situation.real life situation.

TIMSS (Trends in International Mathematics and Science Study) TIMSS (Trends in International Mathematics and Science Study) assesses Grades 4, 8, and the final year of secondary education on assesses Grades 4, 8, and the final year of secondary education on science and mathematics. While PISA attempts to measure student science and mathematics. While PISA attempts to measure student ability to apply knowledge in every day life, TIMSS is a curriculum-ability to apply knowledge in every day life, TIMSS is a curriculum-based assessment, which assesses skills and competencies that based assessment, which assesses skills and competencies that national curricula intend their students to learn. national curricula intend their students to learn.

IALS (International Adult Literacy Survey) is a literacy proficiency IALS (International Adult Literacy Survey) is a literacy proficiency assessment, conducted in the 1990s. It assesses literacy of adults assessment, conducted in the 1990s. It assesses literacy of adults aged between 16 to 65 years olds. There are 3 domains: (1) prose aged between 16 to 65 years olds. There are 3 domains: (1) prose literacy; (2) document literacy; and (3) quantitative literacy. literacy; (2) document literacy; and (3) quantitative literacy.

PISA-Student Performance in Mathematics PISA-Student Performance in Mathematics and GDP Per Capita (PPPs), 2000and GDP Per Capita (PPPs), 2000

Source: OECD

Percentage of Students Level 2 or Below vs. Level 3 or Above in Percentage of Students Level 2 or Below vs. Level 3 or Above in Reading Proficiency in PISA 2000Reading Proficiency in PISA 2000

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Level 2 or below Level 3 and above

60% of OECD students reach Level 3 or above

Source: OECD

Workers with Better Literacy Skills Receive Workers with Better Literacy Skills Receive More TrainingMore Training

Source: IALS 2000. Note: Data refer to employed persons aged 26-65 years. Training refers to employer-sponsored VET.

Alternative Delivery Alternative Delivery MechanismsMechanisms

Increase access to learning opportunitiesIncrease access to learning opportunitiesIncrease variety of ways learners can learnIncrease variety of ways learners can learnGive access to knowledge resourcesGive access to knowledge resources

Enhance quality through technologyEnhance quality through technologyLearning by doingLearning by doingSelf-directed learningSelf-directed learningContinuously updated curriculumContinuously updated curriculumNetworks of good practiceNetworks of good practice

Governance for Lifelong Governance for Lifelong LearningLearning

Requires multi-sectoral collaborationRequires multi-sectoral collaboration Enabling environment for pluralistic Enabling environment for pluralistic

approachesapproaches Focus on equityFocus on equity Demand-driven policyDemand-driven policy

OECS in PerspectiveOECS in Perspective

Most Caribbean countries have made Most Caribbean countries have made significant public investment in education significant public investment in education over the last decades, averaging 6-7 over the last decades, averaging 6-7 percent of GDP.percent of GDP.

Considerable progress has been made in Considerable progress has been made in UPE and in secondary education.UPE and in secondary education.

However tertiary enrollments has slowly However tertiary enrollments has slowly increased.increased.

And there are still many challenges And there are still many challenges regarding quality of education as measured regarding quality of education as measured by the Caribbean Examination Council. by the Caribbean Examination Council.

Major Challenges for OECS’s VETMajor Challenges for OECS’s VET

Low levels of training of the labor force.Low levels of training of the labor force. Supply-driven programs, lacking Supply-driven programs, lacking

flexibility and relevance to changing flexibility and relevance to changing market needs.market needs.

Uneven quality of training programs, Uneven quality of training programs, with no objective quality assessment with no objective quality assessment and assurance mechanisms.and assurance mechanisms.

Lack of private participation in training Lack of private participation in training design and provision.design and provision.

Towards a More Productive VET SystemTowards a More Productive VET System Strengthening the cross-sectoral coordination of relevant Strengthening the cross-sectoral coordination of relevant

agencies.agencies. Increasing the role of the private sector in financing and Increasing the role of the private sector in financing and

provision of education and training, especially VET.provision of education and training, especially VET. Strengthening the linkages between training supply and the Strengthening the linkages between training supply and the

market through employers’ participation in course design market through employers’ participation in course design and training activities.and training activities.

Implementing the occupational standards and qualification Implementing the occupational standards and qualification systems by which work skills and training programs can be systems by which work skills and training programs can be tested and certified.tested and certified.

Spurring VET by providing more incentives, such as tax Spurring VET by providing more incentives, such as tax credits, individual accounts, part-time study, etc.credits, individual accounts, part-time study, etc.

Enhancing the efficiency and quality through better Enhancing the efficiency and quality through better evaluation, input-output analysis, and curricula.evaluation, input-output analysis, and curricula.

Further harnessing the power of distance learning, e.g., ...Further harnessing the power of distance learning, e.g., ...

Thank You!Thank You!

Eduardo Velez Eduardo Velez evelezbustillo@worldbank.orgevelezbustillo@worldbank.org