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Reviev of World Bank Investments inVocational Education and Training for Commerce

Page

EXECUTIVE SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . . . .

I. INTkODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . 1Objectives of this review . . . . . . . . . . . . . . . . . . . . 4Scope of the review .... . . . . . . . . . . . . . . . . . . . 5

II. CHARACTERISTICS OF THE INVESTMENTS . . . . . . . . . . . . . . . .The projects .... . . . . . . . . . . . . . . . . . . . ... 6Project performance . . . . . . . . . . . . . . . . . . . . . . . 10Components and Institutions . . . . . . . . . . . . . . . . . . . 12

Size of Institutions Supported . . . . . . . . . . . . . . . 12Planned Costs Per Place . . . . . . . . . . . . . . . . . . 14

III. INVESTMENT DESIGN ............... .. 18Justification and Planning . . . . . . . . . . . . . .18

Justification . . . . . . . . . . . . . . . . .18Planning . . . . . . . . . . . . . . . . . . . .19

Sector Work . . . . . . . . . . . . . . . . . . . . .21Strategies . . . . . . . . . . . . . . . . . . . . . .23

Objectives . . . . . . . . . . . .. . . . . . .23Linkages between Training and Employment . . . . .26Generation of Demand . . . . . . . . . . . . . .29Curriculum Development . . . . . . . . . . . . . . . . . . . 30Testing, and Certification ..... . . . ........ . 31Staff Development . . . . . . . . . . . . . . . . . . . . . 33Development of Planning and Management . . . . . . . . . . . 35

Innovations . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

IV. PERFORMANCE ............. ..... .... ..... . 42Economic Outcomes ........ .. ... .. .. ... .. . . 42

Management Skills ...... .. . .. .. . .. . .. . . 42Non-Formal . . . . . . . . . . . . . . . . . . . . . . . . . 43Secondary ......... ... .. ... ... .. .. . 43Post-Secondary . . . . . . . . . . . . . . . . . . . . . . . 44

Rates of Graduation, Placement and Employer Satisfaction . . . . . 45Management Skills ...... .. .. . .. . .. . .. . . 45Non-Formal ......... ... .. ... ... .. .. . 45Secondary ......... ... .. ... ... .. .. . 46Post-Secondary . . . . . . . . . . . . . . . . . . . . . . . 16

Implementation Outcomes . . . . . . . . . . . . . . . . . . . . . 46Enrollment Performance ...... . . . . .. . . . . .. . 46Average Component Performance . . . . . . . . . . . . . . . 48

V. CONCLUSIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

VI. RECOMMENDATIONS FOR FUTURE PROJECTS ..... . . ........ . 57Secondary, Post-secondary and Non-formal Commercial Training . . . 57Management Skills Training ...... . .. . ........ . . 60

Ll

Tables

Page

Table 1: Commercial VET Enrollment as a Proportion of Total VETEnrollment . . . . . . . . . . . . . . . . . . . . . . 2

Table 2: Sample Project and Commercial VET Component Cost and Sizeby Region, All Projects . . . . . . . . . . . . . . . . . . . 7

Table 3: Sample Project and Commerce VET Component Cost and Sizeby Income Level,.All.Projects . . . . . . . . . . . . . . . . . . 7

Table 4: Comparison of Total Project Costs and Share of VET Costsfor the Commercial and Industrial Samples . . . . . . . . . . . 9

Table 5: Project Size, Cost and Performance, by Region, forCompletedProjects . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Table 6: Project Size, Cost and Performance by Income Level, forCompleted Projects . . . . . . . . . . . . . . . . . . . . . . 11

Table 7: Average Size of Institutions Supported(number of planned places for trainees) . . . . . . . . . . . 13

Table 8: Average Planned Total Investment Cost Per Placeby Mode, Region and Income Level . . . . . . . . . . . . . . . 16

Table 9: Distribution of Component Objectives for Clients byRegion,Mode and Country Income Level Objectives . . . . . . . . . . 24

Table 10: Distribution of Component Objectives for Institutionsby Region, Mode and Country Income Level . . . . . . . . . . . 26

Table 11: Incidence of Articulation Arrangements by Mode and IncomeLevel for a Sample of Completed Commerce VET Components, 1969-82 27

Table 12: Linked Components by Linkage Type and by Mode for aSample of Completed VET Commercial Components, 1969-82 . . . . 28

Table 13: Factors in Instructional Staff Development, by Region . . . . . 34Table 14: Component Management Effectiveness and Adequacy

of Financing, by Region, Income Level and Mode . . . . . . . . 36Table 15: Proportion of Planned Enrollment Targets Achieved at

Completion, by Mode, Region and Income Level, 1969-82 . . . . 47Table 16: Average Component Performance,21 by Mode, Region,

and Income Level, 1969-82 . . . . . . . . . . . . . . . . . . . 49

EXECUTIVE SUMMARY

i. A numbe: of developing countries are in the early stages ofdeveloping their modern sectors. In this process, World Bank investments incommercial vocational education and training (VET) (which includessecretarial, clerical, office support, accounting, business administrationi andmanagement education) have successfully helped in providing the trainingneeded for essential skilled technical and managerial personnel. Despite thegrowing commitment of developing countries to VET for commercial employment,however, the share of Bank investments in this area has remained constant.

ii. This report assesses World Bank investment in commercial VET, basedon a sample of 34 of the 63 commercial VET components of projects financedbetween FY63 and FY87. The analysis is broken out by training modes, BankRegions and country income levels. Where appropriate, comparisons withindustrial VET components are provided. The analysis addresses severalquestions. What are the characteristics of investments in commercial VET interms of size and type of investment, costs and overall implementationperformance? What were the elements of investment design, and how were theinvestments justified and glanned? What was the record of performance ofproject components and institutions? What factors contributed to or inhibitedsuccesses? The main findings under each questions are summarized below.

MAIN FINDINGS

Characteristics of the Investments

iii. Between 1963-87, the Bank financed 56 commercial VET projects versus149 industrial VET ones. Overall, the commercial projects emphasizedimprovement of the quality of existing capacity rather than expansion. Interms of project costs, on average these efforts accounted for only 20 percentof total project costs. Although the Bank's support for commercial VET hasbeen small in comparison with industrial VET, the level has remained stable,with one to two new projects being initiated each year. The characteristicsof commercial VET projects were similar to those of industrial VIST. As wastrue for the industrial sample, average project and VET compone.at costsincreased with the income level of the country.

iv. Commercial VET projects demonstrated successful projectimplementation, particularly in low-income and African countries. Averageactual project costs were very close to average planned costs, with underrunsof only 5 percent for all projects and relatively modest average time overrunsof 17.6 months. Nearly 100 percent of the commercial projects achieved their

I John Middleton and Terri Demsky. World Bank Investment in VocationalEducation and Training for Industry. PHREE Working Paper No.24. (Washington,D.C.: World Bank, July 1988).

planned enrollment targets by completion date. In general, the average unitcost of a commercial VET student place was high in comparibon with industrialVET, a primary reason being the high unit costs of the non-formal commercialVET components. In comparison with industrial VET, commercial VETinstitutions were 20 percent smaller in terms of the average number of placesbecause most focused on improving the quality of existing facilitites ratherthan on expansion.

Investment Design

v. The economic justification of many projects in the sample was thetraining of workers to meet economic growth targets; in many cases, however,these targets were based on inaccurate manpower forecasts. Other rationalesincluded replacing emigrating labor and expatriate workers and improvingaccess by the disadvantaged.

vi. As with the industrial VET components, the commercial componentspaid relatively little attention to the training needs of women and to thegeneration of demand for commercial VET. The former posed a serious problembecause the commercial VET components were more likely to involve women thanwere the industrial VET components.

vii. Increasingly, there was substantial overlap in the provision ofcommercial and industrial training: over one-third of the commercial courseswere introduced along with industrial courses. Financing of components inAfrica and low-income countries was a problem in the commercial components asit was in industrial ones. However, overall component performance was higherfor the commercial sample than for the industrial sample.

viii. Except in Indonesia and Yemen, where sector work played an importantrole in overall project design, most analyses of the education sector providedonly a cursory examination of the need for commercial VET, focusing instead onindustrial training.

ix. At the Bank level of management, the Project Completion Reportssnoted several problems. First, the supervision missions tended to beinconsistent and lacked continuity in terms of staffing and timing. Second,the missions often did not include specialized technical educators who couldhave remedied the problems before they grew. At the level of the ProjectImplementation Units (PIUs), staffing often posed problems. Depending uponthe country, PIU staff had to leave their career paths, which were difficultto reenter. Further, they were not adequately compensated for their work.Finally, implementation suffered in those projects in which Bank-PIU relationswere weak.

x. Africa had the majority of the management skills components, whichwere largely concerned with improving the quality for both of mid- and upper-level managers in the public and private sectors. Project institutions weredesigned to provide upgrading training and a range of services, includingcontract training, applied research and training. They could provide trainingfor both office clerks and office managers. Most of the management skillscomponents were justified on the basis of replacing expatriate management

- ii -

orkers. That is, VET was seen as a way of indigenizing the work force inorder to improve economic competitiveness.

xi. Most components were not concerned with institutioral evaluation.In many cases, attendance was sufficient for certification, which often wasrequired for career advancement. No attempt was made to assess the practicalimpact of the management training.

Performance

xii. Ideally, the performance of VET should be evaluated against theeconomic efficiency. However, the project documentation did not provideenough information to address such objectives; the data on recurrent costswere sporadic and general, and those on graduation rates, placement andemployer satisfaction were practically non-existent. In the case of IvoryCoast I, where the recurrent cost data were available, the high costs were theresult of high expatriate salaries, low student/teacher ratios and generousbursaries.

xiii. Another basic objective against which these investments may beevaluated is successful establishment of a training institution, as measuredby the percentage of the enrollment target achieved at project completion.Another is the ratings of implementation performance.

xiv. Overall, the enrollment targets achieved at the completion of thecommercial components were excellent, with low-income countries performingmuch better in contrast to the industrial sample. The average data oncomponent performance for commercial VET provided some limited confirmation ofthe hypothesis that the components were small, simply designed and did notrequire strong implementation capacity. Africa had the largest number ofcommercial projects planned and the largest number of completed projects, andthey proved successful.

xv. The commercial VET projects were distinct from other VET projects inmany respects. First, the components costs were small in comparison withindustrial VET, averaging only one-fifth of the total. Second, in many cases,the commercial VET institutions financed by the Bank were the first or amongthe very first to be instituted by borrowers, a factor that many havecontributed to the high cost of civil works and the correspondingly high per-place costs of commercial VET. Third, the emphasis of commercial VET projectshas been more on skills improvement than on quantity expansion, so that therehas been a large degree of upgrading and entrepreneurial training. Fourth,although commercial institutions had a large number of expatriate teachers,few incentives were provided to retain them. Fifth, fellowship training wasfound to be a common means of staff training, although one project institutionpurposely eschewed it in favor of in-service training to expand the number ofpeople it could train. Sixth, because commercial VET, especially the non-formal and postsecondary components, fell outside most countries' nationalvocational networks, systematic competency testing and certificationprocedures were often overlooked. This gap may have been an impediment toquality control in training programs. Finally, unlike the industrial VETcomponents, where recurrent expenditures could be financed by payroll taxes

- iii -

under the aegis of national training systems, few commercial VET componentsprovided for some cost recovery.

RECOMMENDATIQNF

xvi. With the exception of the high per-place costs of commercial VETcomponents, the Bank has a proven record in planning and implementation. Thechallenge now is to develop cost-effective commercial VET components andprovide innovative forms of assistance, such as training in advancedtechnology and complementary training. Because simple design and smallproject size have proven particularly successful, future projects shouldfollow the same approach.

- iv -

Vorld BankReview of World Bank Investments in

Vocational Education and Training for Commerce

I. INTRODUCTION

The expanding public and commercial sectors in many lower and

middle-income countries require increasing numbers of skilled personnel, of

whom there has been a shortage. This shortage has been exacerbated by the

loss of experienced expatriates. Another reason for this shortage, according

to a 1983 UNESCO report," is that in the initial decades following

inderendence, developing countries concentrated on the growth of their

industrial sectors. In keeping with this priority, bilateral and multilateral

donors and lenders provided only small amounts of financing for commercial

vocational education and training (VET)Z relative co industrial VET. The

report forecast, however, that "...as their economies expand in size and

complexity, a growing detand for competent personnel for the tertiary sector

is likely to lead to more varied forms of technical co-operation in the field

of commercial education..." In addition, placements appear to be higher for

people who have pursued commercial VET than for those with training in the

skilled trades and industry.

If office workers and managers are the fuel that keeps the public

and commercial sectors running, commercial VET institutions are the sources of

this fuel. In response to the increasing demand for individuals with these

types of skills and given tle presumed high payoff for such training,

developing countries have expanded their investment in commercial VET relative

to industrial VET since the early 1970s. Table 1, drawru from a statistical

YV UNESCO Studies in Technical and Vocational Education: Developments inCommercial Education (Paris: UNESCO, 1983).

St In this review, commercial VET includes training in clerical andsecretarial skills work, bookkeeping and eccounting, retail sales and tourism,business administration, and public and private sector management.

V National Assessment of Vocational Education, "Final Report to Congress,"U.S. Department of Education, Washington, D.C., July, 1989.

- 1 -

report compiled by UNESCO on "Technical and Vocational Education in the World,

1970-1980," looks at 13 of the 15 countries studied in this review. In nine

of them, enrollment in commercial education and training increased, between

1970 and 1980, while enrollment in industrial education and training

decreased, as a percentage of total VET enrollment. As indicated, this shift

reflects, in part, the changing economic environment in the developing

countries. (Jordan, Korea and Malaysia do not fit this mold; in the case of

the latter two, their success in manufacturing in the 1970s may have prompted

greater investment in industrial VET.)

tabLe 1: Commercial VET Enrollment as a Proportion of Total wET EnrotLment(percent)

1970 1980Country Coimercial Industrial Other Total Commercial Industrial Other Total

AFRICA

*ambia 11.8 61.8 26.4 100.0 5.2 42.3 52.5 100.0Ivory Coast 13.5 25.7 60.8 100.0 73.0 22.3 4.7 100.0Lesotho -- 17.1 82.9 100.0 -- 46.8 53.2 100.0MaLi 25.7 58.8 15.5 100.0 40.5 28.1 31.4 100.0Morocco 56.5 43.1 0.4 100.0 59.6 32.8 7.6 100.0Senegal 12.8 83.0 4.2 100.0 31.7 17.7 50.6 100.0Somalia -- 64.1 35.9 100.0 11.7 32.9 55.4 100.0Zambia 16.8 83.2 0.0 100.0 27.4 58.9 0.0 100.0

ASIA

Indonesia -- 55.1 44.9 100.0 37.5 38.8 23.7 100.0Jordan 55.4 34.3 10.3 100.0 35.5 47.3 17.2 100.0Korea 34.0 29.2 36.8 100.0 33.9 43.8 22.3 100.0Malaysia 38.9 61.1 0.0 100.0 5.0 95.0 0.0 100.0

LAC-/

Brazil 32.1 60.6 7.3 100.0 51.6 26.4 22.0 100.0

su Latin America and the Caribbean.

Source: "UNESCO Statistical Report: Technical and Vocationat Education in the World, 1970-1980".

The private sector has been largely responsible for the provision of

commercial education. The evidence of private commercial education (by for-

profit schools as well as enterprises that offer their own training) is

extensive at both the secondary and post-secondary levels, although it is

difficult to document how much. Some irformation derives from two of the

- 2-

countries studied under this review that have documented the private sector's

involvement. An AID IEES (Improving the Efficiency of Educational Systems)

sector study of Indonesia (1988) reported that in the mid 1980s there were

almost two private senior secondary schools of business for every public

school (although enrollment was roughly equal in both)., In the Ivory Coast,

the 'Annuaire Statistique" for the school year 1979-80 noted that about 10,344

students were in vocational and technical education in the public school

system, while private schools accounted for some 16,019 students. Of those

enrolled in the private institutions, 13,998 were engaged in commercial

studies (4,633 in the CAP stream, 6,630 in the BEP stream, 1,463 in the

baccalaur6at technique program, 1,255 in the certificat de fin de cycle, and

17 in the higher technician certificate program). The private sector in Korea

offers enough commercial education that the Bank has not felt a need to

support expansion of this area, but rather has focused mainly on quality

improvement. The Staff Appraisal Report (SAR) stated, "...the availability of

private commercial schools prevents the government from developing commercial

education at a greater rate than that shown above.n Although not formally

documented, many Latin American and Caribbean (LAC) countries also have

considerable private commercial training. A quick glance at a telephone

directory in Buenos Aires or a walk around Bogota reveals many such small

schools.

Despite the growing commitment to commercial VET on the part of

borrowers, the Bank has invested in it comparatively rarely. It has provided

less support for VET for the commercial sector than for the industrial sector:

the total share of VET investment in commercial education was less than one-

tenth that in the industrial sector. In all, between 1963 and 1987 the Bank

supported 149 projects devoted to industrial VET while funding only 56

projects with commercial VET. At the same time, it should be noted that some

Bank support for commercial skills training has gone unobserved because it was

41 Government of Indonesia, Ministry of Education and Culture with the UnitedStates Agency for International Development, Improving the Efficiency ofEducational Systems: Indonesia Educational and Human Resources Sector Reviev(Tallahassee, Fla.: Florida State University, April 1986).

- 3 -

part of financing for diversified schools that often provided training in

lower level clerical and secretarial skills as well as bookkeeping. Other

Bank projects have financed universities that provide higher level business

training in accounting and management. Still other Bank funds have gone for

project-related training in accounting and auditing, although these efforts

have had no "spin-off" effect according to reports from the International

Federation of Accountants at the Asia and Pacific Conference on Accounting

Education for Development held in the Philippines in November 1984.

Objectives of this review

This review examines World Bank investment in VET for the commercial

sector. Each relevant 72T project was classified by delivery mode--non-

formal, secondary and post-secondary--to maintain consistency with the prior

review of lending for industrial training.-' Management skills were added to

these categories for this study (see the Annex for definitions and the sample

of projects selected for this review).

The secondary and non-formal modes mainly involved basic office

support training for secretaries, accountant/bookkeepers, clerks and, in a few

cases, sales people. Two of the non-formal proiects also provided training

for employment in the hotel industry. The post-secondary modes were generally

devoted to advanced technical-level training in accounting and, to a lesser

degree, business administration, banking, tourism and advanced secretarial

studies.

The final category--management ecucation--included management skills

for both the private and public sectors, even though the term "commercial"

connotes only the private sector. One reason for this approach is that the

public administration institutions offer training programs for personnel from

private enterprises as well. In addition, managerial talent flows between the

I/ For comparative data, see John Middleton and Terri Demsky (1989).Vocational Education and Training. A Review of World Bank Investments. WorldBank Discussion Paper No. 51. Washington, D.C.: World Bank.

- 4 -

public and private sectors--many of those trained in the schools of public

administration eventually find jobs in the private sector. Finally, as the

UNESCO report pointed out, since independence developing country governments

have brought a considerable number of industries under state cortrol that in

developed countries would be privately-owned. Thus managers in both sectors

have similar tasks. Some of the management institutions in the sample

provided a broad range of courses, including secretarial and clerical,

accour.ting and bookkeeping and office management, in addition to mid- and

upper-level management training.

Scoe of the review

Parallel with an earlier review of VET for industry, this review is

concerned with investment projects and the institutions they supported. Four

principal questions are treated in separate sections:

(a) What are the characteristics of Bank investments in terms of

size, type, costs and overall performance?

(b) What were the elements of investment design? How were these

investments justified and planned?

(c) What was the record of gerformance for project components and

institutions in terms of 'mplementation and educational

outcomes? What factors contributed to or inhibited success?

(d) What lessons can be drawn for future investment in commercial

VET?

-5

II. CHARACTERISTICS OF THE INVESTMENTS

The prolects

The size of the projects from which the commercial VET components in

the sample were drawn varied from very small ($2.5 million for Senegal I) to

very large ($216.6 million for Morocco IV). As was true of the industrial

sample, the average project cost and VET component cost increased with the

income level of the country. The average project cost was highest in the IAC

Region, followed by Asia, Europe, Middle East and North Africa (EMENA) and

Africa. It should be noted, however, that the LAC sample contained only two

projects, both in Brazil; only four countries in that Region had received any

Bank financing for commercial VET.

The overall average cost of the commercial VET components was quite

small, giving the sense that these components were "add-ons" to the overall

projects (Table 2). The averages were $3.78 million for Africa, $14.48

million for Asia and $7.38 million for EMENA (excluding the Morocco IV

project, where training for industrial versus commercial students could not be

disaggregated). In LAC, the average for commercial VET investment at $42.05

million, was considerably higher than in the other Regions, however, that

figure covers only the two projects in Brazil, which were much larger than the

other two in the Region. Average project costs and component costs typically

increased with the income level of the host country (Table 3).

- 6 -

Table 2: Sample Project and Commercial VET Component Cost and Size by Region, All Projects

Prolect Cost (USS) Component Cost (USS)Component

Total Total Total Average as PercentProject Average Loanw Average Total 9 VET VET of Total

Total # Cost Project Credit Loan/ of VET Cofpotnent Compnaent Project CostRegion Projects Planned Cost (SAR) Credit Copornents Cost Cost

Africa 12 226.68 18.89 122.70 10.23 16 37.82 (a) 3.78 (a) 17.8 (a)

Asia 6 572.70 95.45 304.30 50.72 6 641 14.48 13.9

ENEMA 8 427.89 53.49 95.20 11.90 10 51.69 (b) 7.38 (b) 24.5 (b)

LAC 2 258.90 129.45 106.50 53.25 2 81.62 42.05 31.5

Total 28 1,486.17 53.08 628.70 22.45 34 260.53 10.42 20.0

Sourc: (a) The VET compontent costs exclude Seregal IV and Lesotho, where total project costs were notdisaggregated by component in the project documents.

(b) The VET componxent costs for Morocco IV were eliminated so as not to bias the calculation of theaverages.

Table 3: Sample Project and Comerce VET Component Cost and Size by Income Level, ALl Pro,ects

Prolect Cost (US$) Comonent Cost CUSS#Component

Total Total Total Average as PercentProject Average Loan/ Average Total U VET VET of Total

Income Total t Cost Project Credit Loan/ of VET Component Component Project CostLevel Projects Planned Cost (SAR) Credit Components Cost Cost

Low 11 139.46 12.68 91.50 8.32 14 25.04 (a) 2.50 (a) 18.8 (a)

Lower Middle 13 939.93 72.30 377.90 31.49 16 125.68 (b) 10.50 (b) 16.2 (b)

Upper Middle 4 406.80 101.70 159.30 39.83 4 109.81 27.45 27.0

Total 28 1,486.17 53.08 628.70 22.45 34 260.53 10.42 20.0

Source: (a) The VET component costs exclude Senegal IV, where the total project costs were not disaggregated bycomponent in the project documents.

(b) The VET component costs exclude Lesotho, where total project costs were not disaggregated bycomponent in the project documents. The VET component costs for Morocco IV were eliminated so asnot to bias the calculation of the averages.

- 7 -

The commercial VET costs accounted for only 20.0 percent of total

project costs in the sample, a level that is substantially smaller than

industrial VET's 62 percent share was (Table 4). In Asia and Africa, the

commercial VET components were just 13.9 percent and 17.8 percent,

respectively, of total project costs (versus 37.7 percent and 48.0 percent for

industry). In EMENA, the figure was 24.5 percent (versus 82.3 percent for

industry), and in LAC, commercial VET in Brazil reached 31.5 percent of total

project costs (compared to 76.0 percent for industrial VET).

- 8-

Table 4: Comparison of Total Project Costs and Share of VET Costsfor the Commercial and Industrial Samples

Industry Commerce

AFRICA(a) Total Planned Project Costs (US$) 478.1 226.7(b) Total VET Costs (US$) 180.1 37.8(c) Average VET Cost (US$) 6.9 3.8 (a)(d) VET Percent of Total (b/a) 37.7 17.8 (a)

ASIA(a) Total Planned Project Costs (US$) 1,992.7 572.7(b) Total VET Costs (US$) 957.1 79.4(c) Average VET Cost (US$) 28.1 14.5(d) VET Percent of Total (b/a) 48.0 13.9

EMENA(a) Total Planned Project Costs (US$) 1,548.8 427.9(b) Total VET Costs (US$) 1,274.2 51.7(c) Average VET Cost (US$) 28.3 7.4 (b)(d) VET Percent of Total (b/a) 82.3 24.5 (b)

TAC(a) Total Planned Project Costs (US$) 673.4 258.9(b) Total VET Costs (US$) 511.8 81.6(c) Average VET Cost (US$) 32.0 10.4(d) VET Percent of Total (b/a) 76.0 31.5

TOTAL(a) Total Planned Project Costs (US$) 4,692.9 1,486.2(b) Total VET Costs (US$) 2,923.2 260.5(c) Average VET Cost (US$) 24.2 10.4 (a)(b)(d) VET Percent of Total (b/a) 62.3% 20.0% (1)(2)

Source: (a) The VET component costs exclude Senegal IV and Lesotho, where totalproject costs were not disaggregated by component in the projectdocuments.

(b) The VET component costs for Morocco IV were eliminated so as not tobias the calculation of the averages.

- 9-

Proiect performance

Overall, projects with commerce VET components have been as

successful as other Bank education investments. The institutional performance

for the sample projects which included the commerce components (2.37 on a

scale of 4) was equivalent to the average rating of a subset of 43 projects

(2.32) for which Project Completion Reports (PCRs) were published in FY84 and

FY85 (Johanson, et al., 1986) (Table 5). This result is not surprising,

because projects in both the commercial VET sample and the sample used by

Johanson involved all types and levels of education. Interestingly, a

breakdown by income level reveals that both the low and upper middle-income

countries in the commercial VET sample performed better than those in the

industrial VET sample (2.38 vs. 2.16 and 3.00 vs. 2.38, on a scale of 4,

respectively) (Table 6).

Table 5: Project Size, Cost and Performance, by Region, for Completed Projects

Totat Total Average Average AverageProject Loan Total Cost Time Overrun Averase Institutional

Total # Cost Credit Overrun (Underrun) Institutionat PerformanceRegion Projects Planned Actual (SAR) Actual (Underrun) in Months Performancee' (Industrig

(USS) (USS) (USS) (USS) () ProJects)

Africa 10 207.16 186.51 107.00 90.67 (2.07) 14.70 2.30 2.10

Asia 4 316.10 308.40 138.80 137.18 (1.93) 17.50 2.75 2.75

ENEMA 4 121.49 130.88 54.00 43.79 2.35 22.00 2.00 2.25

LAC 1 92.50 73.90 32.00 30.90 (18.60) 30.00 3.00 2.11

Total 19 737.25 699.69 331.80 302.54 (1.98) 17.63 2.37 2.32

a/1 = poor; 2 - fair; 3 a good; 4 = excelent.

Ni MiddLeton and Demsky (1988).

- 10 -

Table 6: Project Size Cost and Performance by Inces Levelt for Coptleted Projects

Total Total Average Averae AverageProject toan Total Cost Tim Overrun Averqe InstitutIonal

Total c Cost Credit Overrun (Underrun) InBtftutIonat PerformutceIncoee Level Projects Plarvied Actual (SR) Actual (Underrun) in Nonths Perfor neJ (Induat.Projects)§/

(USS) (US#) (US) (USS) (X)

Low 8 99.32 92.44 69.80 62.49 (0.86) 14.75 2.38 2.16

Lower Niddtl 8 397.53 372.85 177.20 156.45 (3.09) 20.60 2.13 2.31

Upper Niddle 3 240.40 234.40 84.40 83.60 (2.00) 17.00 3.00 2.38

Total 19 737.25 699.69 331.40 302.54 (1.98) 17.57 2.37 2.32

- 1 poor; 2 a fair; 3 = good; 4 a excell nt.

bN Niddleton and Demsky (1988).

Overall, actual project costs were close to planned costs, with an

average underrun of only 2 percent. All projects experienced time overruns,

although they were significantly less than for the projects in the industrial

sample. Average time overruns by Region in this sample ranged from 14.7 to

30.00 months, whereas for the industrial sample the range was 27.5 to 41.2

months. The reason for the difference is the relatively easier implementation

of commercial VET relative to industrial VET components.

In Asia, the commercial VET projects demonstrated successful

implementation, with an average institutional performance level of 2.75, cost

underruns of $1.93 million and time overruns of only 17.5 months. The one

completed project in the LAC Region (Brazil) was also well-implemented, with

an institutional performance rating of 3.00 and cost underruns of nearly 20

percent, but with a rather high time overrun of 30.00 months. Overall project

implementation was slightly better for the Africa projects in this sample was

2.30, cost underruns were 2.00 percent and time overruns were only 14.7

months. EMENA's institutional average performance rating was only 2.00, with

cost overruns of 2.35 percent and average time overruns of 22.00 months (Table

5).

- 11 -

The upper middle-income countries performed best, with an

institutional performance rating of 3.00, cost underruns of 2 percent and time

overruns of 17.00 months (Table 6). Somewhat surprisingly, the low-income

countries exhibited better project implementation than did the lower middle-

income countries. The figures for the former were average institutional

performance 2.38, cost underruns less than one percent and average time

overrun only 14.75 months, and for the latter 2.13, about three percent and

20.6 months.

Components and Institutions

Size of Institutions Supported

The commercial VET institutions were smaller than the industrial VET

ones, with an overall average of 430 student places per institution vs. 506

(Table 7). In the case of the non-formal institutions, the average size of

the commercial VET institutions was 17 percent smaller than the industrial VET

institutions (264 places vs. 319) asd about 27 percent smaller in the case of

secondary institutions (616 places vs. 843). The commercial VET post-

secondary institutions were significantly smaller--at 552 places--than the

industrial VET ones--at 936. The data on student places at the institutions

providing management skills training were difficult to assess, since the

institutions offered many different types of courses of varying lengths, often

at a variety of locations (seminars and in-service training at agencies, in

addition to training at the centers themselves).

- 12 -

Table 7: Average Size of Institutions Supported(number of planned places for trainees)

Type ofComponent CommerceW Industry

MODE

Secondary 616 843Post-Secondary 552 936Non-Formal 264 319Management Skills 586

REGION

Africa 456 426Asia 459 837EMENA 592 377LAC 291 482

INCOME LEVEL

Low 378 341Lower Middle 568 379Upper Middle 300 663

TOTAL 430 506

I/ Data available for 22 of 34 commercial components.

By Region, the average institutional size was significantly smaller

in both the LAC and Asia countries in this sample than in the industrial

sample (291 places vs. 482 and 459 vs. 837, respectively). The reason is that

most of the components in the commercial sample involved extensions of

existing facilities, and their focus was on improving the quality versus the

quantity of training. Therefore, they were smaller in scale (Brazil III and

V, Indonesia VII, XIII and XIX, and Korea I). Further, some training centers

were intended to address regional equity concerns, such as in Brazil III.

- 13 -

Vocational training centers to be constructed under this component would be

the first in three targeted regions and were viewed as small pilot efforts.

Conversely, the average institutional size in the EMENA Region was larger, at

592 places vs. 377; here all the project institutions were to be newly

constructed. The aim of Jordan III was to introduce a community college

system, while under the People's Democratic Republic of Yemen II (PDRY II) it

was to form the basis for a network of vocational training centers (VTCs).

Average institutional size for the Africa Region approximated that of the

industrial sample (456 places versus 426).

Planned Costs Per Place

The average total investment cost per place was derived from data on

the number of piaces supported and disaggregated cost data for the components

in the sample. As indicated in the industry VET analysis, these data are only

a crude indicator, due to a variety of factors. First, input prices vary

significantly over time and across countries. Second, some projects involve

construction of new facilities, other rehabilitation of existing ones; many do

both. Third, the instructional program of an institution of a given mode

e.g., secondary or non-formal in one country can and does vary significantly

from that of a similar institution in another country, with important cost

differences. Fourth, currency exchange rates also differ. Finally, political

and natural disturbances cause delays that increase (or decrease) costs.

In determining the average investment cost per place, an attempt was

made to exclude the cost data for components that supported both commercial

- 14 -

and industrial VET (as, for example, Morocco IV). The aim was to ascertain

the indicators of commercial VET costs in comparison with those for industrial

VET costs. As noted, in the case of the management skills components, place

data were especially hard to sort out, so that only 3 of 10 components were

included. Overall, cost and place data were available for slightly over half

the 34 project components.

With these limitations in mind, the average planned total investment

cost per place overall was higher for commercial VET than for industrial VET

($7,876 vs. $4,346) (Table 8). The average actual costs per commercial VET

place for completed projects, $7,020, do not diverge much from this figure

(not reported in the table). The largest discrepancies appear in the per-

place costs for (a) non-formal training, (b) the Asia Region and (c) upper

middle-income countries. In part this pattern is attributed to the smaller

average size of the commercial VET institutions in these categories relative

to the industrial VET ones. Fixed costs might then lead to these higher per-

place costs.

- 15 -

Table 8: Average Planned Total Investment Cost Per Placeby Mode, Region and Income Level

(US Dollars)

Type ofComponent CommerceW Industry

MODE

Secondary 3,263 2,691Post-Secondary 7,965 8,053Non-Formal 8,844 4,521Management Skills 10,825 --

REGION

Africa 2,427 8,458Asia 10,928 4,041EMENA 7,718 5,416LAC 0 2,857

INCOME LEVEL

Low 4,028 5,655Lower Middle 7,679 4,178Upper Middle 14,237 4,288

TOTAL 7,876 4,346

A/ Data available for 18 of the 34 commercial componentsVET.

To explore further why the per-place costs were so much higher than

in the industrial study, categories of expenditures for completed projects

were examined. Tt was found that the cost of civil works per place were

significantly higher for commercial institutions than for industrial ones. It

is possible that the commercial training schools and centers are expected to

be better "appointed" (because they offer training for white-collar jobs) than

are those for industry, which focus on equipment.

- 16 -

In sum, there are insufficient data to provide a definitive

explanation for the higher per-place costs of commercial versus industrial

training projects. Future project evaluations should give greater attention

to cost analysis.

- 17 -

III. INVESTMENT DESIGN

Justification and Planning

Justification

Nearly ev-ry commercial VET component analyzed was justified on the

basis of government-established growth targets geared toward the economic

development of the modern sector. Many components included institutions that

featured both commercial and industrial training to meet these growth targets.

In many cases, the commercial training institutions were the first,

or among the first, of their kind in the country. Other justifications cited

in the SARs included replacing expatriates, replacing emigrating labor,

reducing unemployment and improving the equity of the VET provided.

Many of the countries saw the lack of skilled manpower as a

constraint on economic growth and VET training as a means of enhancing it. In

particular, Korea and Jordan instituted projects in the late 1960s and early

1970s to train workers for their economies, which were in the throes of

industrialization. An early project in Indonesia was also based on

recogniton that the lack of trained supervisors and managers was constraining

development. Later projects in Indonesia, Brazil and Ivory Coast were

intended to improve the quality of commercial education and to introduce new

technologies (computer capability). Projects in Gambia, Indonesia, Jordan,

Malaysia, Mali, Senegal and Somalia were proposed to improve much-needed

management and supervisory training at all levels in both the public and

private sectors to meet development needs.

The commercial VET components were also justified as a way to

replace expensive expatriates, and to improve economic competitiveness

(Jordan, Zambia, Gambia, Morocco, Lesotho, Senegal and Ivory Coast). The need

to replace expatriate managers at all levels was particularly important in

Sub-Saharan Africa.

- 18 -

Equity considerations provided the justification for projects in

Brazil, the PDRY, Zambia and Morocco. In three of those countries--Zambia,

Morocco and the PDRY--boarding places were included to attract students from

rural areas and poorer students. Only the PDRY specifically targeted women

for expanded training opportunities, although in Lesotho women were well-

reprcsented in project institutions; school authorities encouraged their

enrollment, which became a focus of the Second Education Project. Brazil and

Morocco constructed facilities in previously neglected re-ions.

The chief justification for the network of VTCs introduced in the

PDRY's rapidly developing cities was replacement of the labor eraigrating to

neighboring oil-producing countries. Emigrating managers (especially

management instructors) from Somalia to the Gulf states were cited as the

justification for two Somalia components.

Bringing the needs of the economy and the output of the educational

system into balance was another objective. Projects in Jordan, Gambia and

Ivory Coast were intended to direct students into training programs that would

prepare them for specific areas of the labor market and discourage them from

pursuing general education which was leading to high unlemployment; in all of

these countries, the focus was on projected manpower needs rather than on a

demand for commercial studies. Job creation was the rationale for the

Manpower Development and Training Project in Indonesia. The government

anticipated that the informal sector would account for most new employment

outside of agriculture; therefore, in a move to create jobs, it sought to

train people in entrepreneurial skills.

Planning

Parallel with the earlier review of VET for industry, most projects

were planned on the basis of general manpower projections. In many cases, the

components were designed to replace expatriate workers, especially at the

managerial level. Certain projects used innovative planning techniques such

- 19 -

as employer interviews and computer simulations. Others attempted to improve

their planning techniques.

The fact that many of the projections were based on inadequate data

is documented in the industry VET repoxt. The data limitations were

particularly severe in Jordan and the PDRY, where the outflow of labor to oil-

producing countries created special problems. Very often, the manpower

estimates were only general, providing just broad orders of magnitude. The

SARs and PCRs note this point repeatedly. Often project were based on no more

than a felt need: the SAR for the Indonesia XIX self-employment component

notes,

Although it is not possible at present to obtain a preciseand detailed analysis of skilled manpower needs.. .thedata...indicate the large and urgent training needs facedby the Government. These needs include... training peopleto become productively self-employed or to enter theinformal sector."

In the case of the management skills components, planning was based

on a desire to replace expatriate managers and a felt need to improve the

quality of training for existing managers. In most instances, the point of

reference was very general studies of the number of expatriate managers or the

future need for managers. For example, the SAR for Indonesia reported,

Large numbers of adequately trained civil service staff atintermediate and higher levels would be required to carryout and supervise the multitude of diverse Governmentprograms needed to pursue the development objectives ofthe Second Five Year Plan and beyond. This in turn woulddemand a selective expansion and strengthening of publicadministration training.

Gambia and Senegal previously had no specialized managerial training

institutions, while Somalia's and Lesotho's facilities were limited.

In an innovative approach to planning, two projects were based on

employer interviews, a third on a computer simulation. In Zambia, the SAR

- 20 -

reported, "Available data does not provide sufficient information to identify

shortages of high and middle level manpower by major disciplines. However,

interviews with employers reveal that gaps are particularly serious in

science-based occupations." An attempt was made during the implementation of

Mali I to survey the needs of employers the PCR noted that this effort was not

adequately systematized. The latest Brazil project was based on a simulation

model.

Several countries recognized the weakness of their planning data and

attempted to improve it. Brazil incorporated technical assistance (TA) to the

Ministry of Labor to improve its planning capacity; Indonesia XIX included TA

to strengthen the labor market and manpower planning information systems at

the national and regional levels. The PDRY put a manpower survey in its third

education project.

Sector Work

The education sector work that preceded project approval generally

involved only a cursory examination of the need for commercial VET. In only

two countries did sector work play an essential role in overall project

design. However, sector work conducted during and shortly after project

implementation contributed to helping projects meet their objectives.

A wide range of sector work has been conducted in Inidonesia over the

past two decades. A sector survey in 1973 indicated the need to expand the

role of Indonesia's School of Public Administration (LAN), including expanding

the pre-service and in-service training for senior government officials and

bringing LAN into policy decision-making. This sector work also involved the

preparation of a national plan for training public administrators at all

levels of government, an effort that led to the Fourth Education Project in

1976. Sector work conducted in 1977 and 1978 (the Higher Technical Education

Subsector Survey) underlined the need for an Institute of Accountancy. The

sector paper provided an in-depth analysis of accounting education and laid

the groundwork for the Seventh Education Project in 1979. This project

- 21 -

incorporated many of the sector study's recommendations: providing training to

upgrade instructor and accountant skills; developing improved and relevant

courses and teaching materials; and providing for research to improve

Indonesia's accounting methods. Further, studies conducted under this project

set the stage for the Accountancy Development Project approved in 1988.

Sector work carried out in Yemen in 1977 influenced both the Second

and Third Education Projects. The high rate of emigration that led to a

shortage of technical manpower necessitated the establishment of the proposed

network of VTCs (serving both the industrial and commercial sectors) included

in those two projects. It also called for the development and expansion of

middle-level technician training at the upper secondary technical level, which

was included in Education III. Further sector work conducted in 1985 after

the completion of the first project looked closely at productivity and pay

issues that would affect the numbers of people seeking vocational and

technical education.

Sector work in Lesotho, Ivory Coast, Somalia and Zambia helped in

formulating strategies for implementing educational reforms, including

commercial VET components. In Zambia, a team of experts from Cuba, Jamaica,

the People's Republic of China and selected African countries conducted the

research. The study carried out in Somalia did not provide direct input into

project planning and implementation but did address the root cause behind the

emigration of workers: the falling real wage in the public sector was

encouraging the most qualified and experienced staff to leave the civil

service.

Sector work was, also, useful as the projects progressed. For

example, in Korea, a sector study released during implementation of the First

Education Project noted that the project schools had not made arrangements for

cooperation with industry. This point was taken seriously and rectified

before project completion. Similarly, sector work conducted in Morocco

produced recommendations regarding the financing of the technical lycees.

- 22 -

Interestingly, sector work performed in Mali after project

completion was instrumental in fulfilling the objectives of the project. A

National Institute for Management was to be constructed under the First

Education Project. Because the actual facility was not built, sector study

suggested that it be refinanced under a new project and TA Project 1307

financed construction of the facility.

Stratesies

Objectives

The SARs discuss two types of objectives--those directed towards the

interests of clients of project institutions and those oriented towards

institutional development.

The objectives for clients of project institutions focus on

improving the quality of commercial education (31, or 91 percent, of all

components had this intention), even more than on increasing the number of

commercially trained workers (28 of the components, or 82 percent) (Table 9).

Of further interest is that many components included training to upgrade

skills (19, or 56 percent) because so many governments felt that those already

employed at all levels (from secretarial/clerical to management skills) of the

modern sector were inadequately trained. Over one-third of the project

institutions provided evening courses for employees to improve their skills.

- 23 -

Table 9: Distribution of Component Objectives for Clients by Region, Modend Country Income Level Objectives

Oblectives for Clients Cg of comwonents)Reduce Average #

Type of Improve Pressure on Upgrade Improve of ClientComponent Manpower Training Higher Worker Access of Objectives

(9 of components) Expansion Quality Education Skills Groups Component

MODE

Secondary (8) 7 8 0 3 ¶ 2.38Post-Secondary (7) 6 7 2 3 1 2.71Won-Formal (9) 8 7 0 4 2 2.33Management Skitls (10) 7 10 0 9 0 2.60

REGION

Africa (16) 13 15 0 11 1 2.50Asia (6) 4 5 0 3 0 2.00ENEMA (10) 9 10 2 3 2 2.60LAC (2) 2 1 0 2 1 3.00

ICNCE LEVEL

Low (14) 11 13 0 8 2 2.43Lower Middle (16) 13 15 2 8 1 2.38Upper Middle (4) 4 3 0 3 1 2.75TOTAL (34) 28 31 2 19 4 2.64

Improving the access of special population groups was a minor

objective (only four components). This took the form of providing boarding

facilities for rural students who did not have training institutions in their

areas (the PDRY and Morocco), as well as locating training centers in

previously neglected areas (Brazil and Zambia). Finally, one country, Jordan,

saw commercial VET as a means of providing a "cooling out" period to reduce

the pressure on higher education. Community colleges were introduced there in

part to provide technical training to meet the community's needs, but also to

satisfy thz constantly increasing demand from secondary school leavers for

post-secondary education.

Management skills components were of special interest in this

analysis. All 10 of the components studied cited qualitative improvement of

manpower as an objective, whereas only 7 were concerned with increasing the

- 24 -

numbers trained. Host of these project institutions were designed to provide

training for upgrading skills (9 of the 10 management skills components, or 90

percent) through short courses and seminars. The majority were public schools

of administration, which also provided a range of services, including contract

training (for public agencies and ministries and private enterprises), applied

research and training. In addition, some were designed to provide a full

spectrum of training, including secretarial, clerical, bookkeeping, accounting

and management skills. Post-secondary and secondary components also focused

on qualitative improvement over quantitative expansion.

Projects in Africa and EMENA, which constituted the bulk of the

study, focused on qualitative improvements in manpower. Africa accounted for

the majority of the management skills components, which were largely concerned

with improving the oualitv of mid- and upper-level managers in the public and

private sectors, as noted above.

Institutional develoRment was an important objective of the

commercial training components, especially at the post-secondary level (Tatle

10). In many cases, new institutions were set up that required technical

assistance in establishing management capabilities as well as policy

development and planning. These projects included: in Jordan, the

introduction of commuuity colleges, general vocational secondary schools and a

hotel training school; in the PDRY, a network of VTCs; in Gambia, a technical

institute and management institute; in Ivory Coast, a technical institute and

vocational secondary schools; in Senegal, a management training center and a

regional training center in Senegal; and in Indonesia, accountancy training

centers and polytechnics.

- 25 -

Table 10: Distribution of Coqmonet Objectives for Institutionsby Regfon, Mode dnd Country

Income Ltl

Oblectives for Institutional Devalot1mnt(U of cenmonents)

Average Bof Overall

Policy Strengthen SystemType of Planning Linkages Development

Coqponent or Improve With Objectivest# of Coponents) Analysis Management Eaployers Carxponent

MWE

Secondary (8) 2 3 5 1.25Post-Secondary (7) 4 4 5 1.86Non-Formal (9) 4 4 7 1.66Management Skills (10) 7 6 4 1.70

REGION

Africa (16) 7 7 9 1.50Asia (6) 4 4 1 1.50EHENA (10) 4 4 9 1.70LAC (2) 2 2 2 3.00

INCOME LEVEL

Low (14) 7 6 9 1.57Lower MiddLe (16) 8 9 10 1.69Upper Middle (4) 2 2 2 1.50

Total 17 17 21 1.61

It is clear that institutional development became more important in

project design over time. Between the periods 1969-78 and 1979-87, the

average number of objectives devoted to institutional development rose by 61

percent (from 1.18 to 1.90).

Linkages between Training and Employment

The importance of good relationships between employers and training

institutions has long been recognized in vocational education. Linkages were

- 26 -

included in the design of nearly every one of the sample projects--of the 23

completed components, only 2 made no such provision (Table 11). The greatest

variety of linkage arrangements was found in the post-secondary institutions.

The management skills components often included contract training, and some

project institutions brought in employers to advise on the curricula. An

innovative approach to bringing schools and employers together was the use of

seminars.

Table 11: Incidence of Articulation Arrangements by Mode and Income Levelfor a Sample of Completed Commerce VET Components, 1969-82

Number of Percent of AverageComponents Components Number of

in the with Linkages PerSample Linkages Component

MODE

Non-Formal 6 100.0 1.17Post-Secondary 5 100.0 2.00Secondary 5 80.0 1.20Management Skills 7 86.0 1.57

INCOME LEVEL

Low 10 90.0 1.50Lower Middle 10 90.0 1.60Upper Middle 3 100.0 2.33

TOTAL 23 91.0 1.65

As noted, the post-secondary components had the largest number of

linkages on average, with advisory boards playing an important role. Further,

60 percent of these institutions were involved in training to upgrade skills;

employers recommended chosen employees to the training institutions. Still,

post-secondary commercial components had significantly less on-the-job

training than did those under industrial VET (Table 12).

- 27 -

Table 12: Linked Components by Linkage Type and by Mode for aSample of Completed VET Commercial Components, 1969-82

Mode(# of Comgleted Comgonents)

Non- Post- ManagementType of Formal Secondary Secondary SkillsLinkage (6) (5) (5) (7)

EmployerCouncils 3 2 3 3

OJT/Internshipsin Curricula 4 1 2

Employers-Financed Training -- -- 1

Employer Staffas Teachers -- -- 2

Contract Trainingfor Employers 1 -- -- 5

Employers-ProvidedTraining in Schoolor Center -- -- 1 1

Student Counseling& Placement Services 1 1 1

Of special interest was the high percentage of management skills

components providing contract training for employers. As indicated, many of

these training institutions were integrated training centers providing a wide

range of training, consultancy, and research services (Senegal's Higher School

of Business Management, Somalia's SIDAM, Indonesia's LAN, Malaysia's INTAN,

and Mali's Planning and Management Institute). In most cases, the

institutions supported by projects belonged to the government, but most still

afforded training and skills upgrading for workers in both the civil service

(both pre-service and in-service contract training and seminars) anci the

- 28 -

private sector. In most cases, employers recommended the employees for

training.

In several of the components, employers contributed to the training

programs by advising on the curricula (the PDRY, Ivory Coast and Indonesia).

Korea developed such close relations with the business community that project

schools were able to modify their curricula to accommodate the changing needs

of business.

Special seminars were seen as a way of promoting the relationship

between schools and employers. The government of Lesotho arranged annual

seminars with employers to introduce them to Basotho graduates in order to

curb their emigration to better-paying jobs in South Africa. The PCR found

the seminars to be successful. Authorities in the Ivory Coast sponsored

seminars to acquaint employers with the types of training received in their

new vocational secondary schools.

Of special note is the National Service for Commercial

Apprenticeship (SENAC) in Brazil. It has built-in provisions for employer-

training relationships: representatives from commercial enterprises are

included on its national board. Further, SENAC boasts an employment

information and placement system that the third education project expanded (it

established employment guidance centers in the regional departments and

districts). The fifth education project placed even more emphasis on

improving relationships with employers--one of its main objectives was to

develop a strategy to encourage private involvement in vocational training.

Generation of Demand

The PDRY was the only country that directly addressed the need to

induce students to choose vocational study. Because enrollment in project

institutions was much lower than anticipated (only 35 percent of the targeted

number), the government began to offer stipends to students of commercial

- 29 -

training programs. Zambia also offered stipends although not explicitly to

increase student interest in the program.

Currlculum-Devel22ment

Curriculum development was highlighted in six projects but played a

role in nearly all project components. In many cases, Industrial subjects

were introduced along with commercial subjects. In one of the components, the

borrower resented the expert assistance in curriculum development. Three

countries introduced a modular program design.

As indicated, curriculum development was a special concern in six

components. In Indonesia's LAN, where fragmentation and irrelevancy of

curricula were problems, training programs were integrated or streamlined and

new programs added. Course books, workbooks, case studies and/or source books

with Indonesian content were prepared and tested. In Jordan, improvement of

the quality of the Jordan Institute of Public Administration was the focus of

Education VII, to be effected through the design of teaching materials,

audiovisual and other equipment and library materials. In Brazil, SENAC was

to improve methodologies for commercial training in priority skills areas,

using occupational analyses to create new training modules. The PDRY

employed an extensive system of curriculum development:

Comments and suggestions on the draft syllabi by userministries and potential employers were evaluated andincorporated as appropriate into the final curriculumdesign prior to finalization and approval by the AdvisoryCouneil of the MOE.. .Appropriate textbooks, library booksand reference materials were selected from Egypt andSyria, and modified by the curriculum committee to suitthe Yemeni situation.

--from the SAR, Second Education Project, PDRY

Finally, as described in the GOR for industry, the Polytechnic

Educational Development Center was established in Indonesia for both

industrial and commercial programs.

- 30 -

Over one-third of the components included industrial subjects along

with commercial ones. In these cases, the commercial courses were a

relatively small part of the component; they appeared to have been "tacked

on." Most often, however, the same institutions taught both subjects.

In Morocco, there was resentment over the technical assista:;ce

provided to develop the curricula for the Hotel Training School and training

centers. The Ministry of Tourism felt the training programs employed in other

training schools in the country were adequate and that the outside assistance

was an intrusion in their territory.

In an innovative approach, Ivory Coast and Brazil developed modular

programs to permit students the flexibility of entering the job market during

their studies and then returning for advanced training later. The Malaysian

INTAN also provided modular pre-service training for university graduates to

prepare them for a management career in the administrative and diplomatic

services.

Testing and Certification

Although standardized skills testing and certification systems can

provide a valuable mea,as of assessing the quality of training, the project

designs did not adequately provide for them. The problem was most acute for

management skills training: certification was awarded without any link to the

acquisition of skills.

Certification was not extensively addressed within the non-formal

components. Unlike industrial VET, commercial VET is not generally organized

under a national training system, which often has standardized testing and

certification procedures. It is true that Brazil boasts the SENAC; however,

even it has not instituted a national testing system, which the SAR saw as a

weakness. Sector work in Morocco examined the problems posed by the lack of

an overall testing and certification system. Interestingly, in the PDRY, two

of the three non-formal vocational institutes providing commercial studies

- 31 -

offered a diploma from the Arab Republic of Egypt. In Zambia, the Department

of Technical Education and Vocational Training had a Standards and

Certificatiou Unit (SCU) that dealt with testing. It prepared the exams for

TTI students (with the assistance of advisory committees), as well as

tecnnician-level exams in business studies at the post-secondary level and

trade testing. The SCU received project assistance.

In general, the ministries of education (MOEs) administered skills

testing at the secondary level, as part of the general education program.

Technical degrees and certificates were awarded on this basis. Two exceptions

were Korea and Lesotho. In 1975, the Korean MOE introduced a national

technical qualification test that covered practical abilities as well as

theory. It was given in addition to an exam admi-nistered by the Office of

Labor Affairs, developed with the help of the International Labor Organization

(ILO). Lesotho had a Trade Testing Committee under the Ministry of Commerce,

Industry, Geology and Mines, and Labor. However, testing in Lesotho was still

conducted at the institutional level. A second education project aimed to

establish a national trade-testing system.

At the post-secondary level, only one project paid attention to

skills testing. In Jordan, the Directorate of Community Colleges instituted a

national examination for all graduating students from public and private

colleges (community colleges included), "in an effort to control the quality

of education and maintain standards."

In most of the management skills components, certification was

largely given, as noted, just for attending the short courses and seminars.

Often, government pecsonnel needed the certification to advance in the civil

service or private business. Because this type of articulation does not

require that the participant demonstrate skill acquisition, it may be a

serious weakness in management institutions. In the case of Indonesia, the

LAN had an advisory board of representatives of all departments and agencies;

it served as an auditing body to evaluate the programs throughout the civil

- 32 -

service. In Senegal, the regional facility for management education CESAG was

to have an educational council to establish exams.

Staff Development

The most important observation regarding the staff in the project

institutions was the prevalence of expatriate teachers: 41 percent of the

components relied on them (Table 13). As was true -J the industrial VET

institutions, the majority of the expatriates were in Africa, where almost

two-thirds of the institutions were partially staffed by them.

By far the most popular method of training for staff for both

administration and teaching was fellowships abroad--over 70 percent of the

project components included them. In-service training was evident in only 18

percent of the projects. In contrast, to maximize the use of funds,

authorities in Gambia abandoned the fellowship approach and, introduced an in-

country training program, bringing in expatriates so that more teachers would

be trained than would have been possible with fellowships abroad.

Staff development was the focal point of two of the projects--in

Jordan for the Jordan Institute of Public Administration and in Somalia for

the Somali Institute of Development Administration and Management. Both

countries believed that poorly trained staff in conjunction with inadequate

instructional materials were contributing to the low quality of the

institutions.

- 33 -

Table 13: Factors in Instructional Staff Development, by Region

Number of Number of Components with:Components Expatriate Fellowship In-service Teacher

Region in Sample Teachers Training Component Incentives

Africa 16 11 10 1 0

Asia 6 1 4 1 1

EMENA 10 3 8 3 0

IAC 2 0 2 1 0

Total 34 14 24 6 1

Part-time teachers drawn from the private and public sectors were

employed in Senegal, Somalia and Indonesia. In the latter, this approach

presented difficulties. The component (Indonesia IV) was intended to promote

in-house staff development through close working cooperation with a team of

experts and through fellowships for administrators and teachers. The PCR

reported, however, that "...the impact of the component on the quality of

training was impaired by the shortage of full-time staff in LAN, as the part-

time teachers could not devote the necessary time to contribute to and benefit

from the training of trainers component." In Somalia, a study initiated under

the third education project pointed out the problems of using part-time staff

at the Somali Institute of Development Administration and Management. The

fourth education project was designed to address ++is need. In contrast,

Senegal viewed its many part-time teachers in a positive light: "The

practical orientation of the program is strengthened through the use of about

40 practicing managers as part-time instructors."

In some cases the lack of national counterparts for expatriate staff

limited the success of technical assistance. One such case--Indonesia--was

- 34 -

noted above. Similarly, the technical assistance provided to the Management

Development Institute constructed in Gambia was not fully utilized because the

government did not provide sufficient numbers of counterparts. In contrast,

the staff development afforded by technical assistance to the Senegalese

Management Training Institute (ESGE) was well-received as authorities of the

school were deeply involved in selecting the technical advisors. This

involvement was considered to be a determining factor in the success of the

project.

In only two projects was special attention given to attracting staff

to project institutions. The PCR for the ESGE in Senegal reported, "Special

attention has been given to attracting the teaching staff necessary for

offering a high quality program," although it did not report how this

promotion was carried out. The main focus of the Somali project was to

provide a core of teachers and administrators who would ensure quality and

consistency of training. This project also included funding for a study of

public employment, including a review of the salary and wage structure, which

had implications for attracting teachers to the institute.

One problem encountered in several of the projects was the loss of

staff after they received expensive training. In Senegal, of the three

administrators who received training abroad, only one remained at ESGE, while

the other two accepted attractive job offers in the private sector. In Mali,

the fellowship training provided for the Director of Practical Work at the

training center did not have an impact on the component, and the post was

abolished.

DeveloRment of Planning and Management

This section evaluates how project components were planned and

managed, and examines the financing arrangements. Three areas of management

are addressed--management of the component institution(s), Bank supervision

missions and the Project Implementation Units (PIUs).

- 35 -

Overall management performance (as measured by a numeric indicator

that brought together all levels of management) was foune' to be roughly equal

in the Africa, Asia and EMENA Regions and was slightly higher in LAC (bearing

in mind that only one component was completed there) (Table 14). Management

performance was higher where the components were adequately financed, except

in the Asia Region. Less than half the Africa projects received adequate

financing. Not surprisingly, adequate funding was strongly associated with

the income level of the country, although management performance was not.

Table 14: Component Management Effectiveness and Adequacyof Financing, by Region, Income Level and Mode

Percent ofComponents with

Average Management AdequateEffectiveness Scored Financing

REGION

Africa 2.43 50.0Asia 2.50 100.0EMENA 2.50 75.0LAC 3.00 100.0

INCOME LEVEL

Low 2.50 60.0Lower-Middle 2.30 60.0Upper-Middle 3.00 100.0

MODE

Secondary 2.40 40.0Post-Secondary 2.40 100.0Non-formal 2.50 67.0Management Skills 2.57 57.0

Overall Averages 2.48 65.0

1 1 - poor; 2 - fair; 3 good; 4 - excellent.

- 36 -

Generally, there was little reporting on the management 2f

individual Droject institutions. In Lesotho, school authorities were reported

to have contributed to the successful implementation of the project because of

their "...constructive and flexible attitude.. .which allows for multiple-use

of resources and support of new programs to reach rural communities, out-of-

school youth and women." In Malaysia, the PCR noted that:

the "INTAN [Institut Tadbiran Awam Negara] administrationworked to reduce substantially the bureaucratic red tapethat often hampers or delays projectimplementation... JNTAN management delegated considerablepower to the Director of the PIU to make day-to-daysupervisory decisions on the spot, without the need torefer to the other parties.

--from the PCR, First Education Project, Mali

However, institutional management there was responsible for a 65

percent increase in the cost of the civil work because it demanded that

project institutions be enlarged. Similar problems were encountered in Ivory

Coast, where ministry officials balked when the appraisal mission sought to

reduce unit capital costs by using austere standards of finish. The

performance of SENAC in Brazil was considered slightly problematic in that it

caused some delays during planning and implementation.

At the Bank level of management, the PCRs noted several problems,

First, the supervision missions tended to be inconsistent in terms of staffing

(including different participants on each mission at the expense of

continuity) and timing (Malaysia especially). Second, the missions often did

not include specialized technical educators who might have been able to

identify and trouble-shoot problems before they grew. This issue was a

particular problem in Morocco during the implementation of the hotel training

component. Similarly, the supervision missions to LAN in Indonesia did not

include an expert in a public administration training, while half the missions

to Malaysia did not include any kind of educator. Finally, the supervision

missions tended to focus on the "hardware" rather than the "software" of

- 37 -

project implementation, often at the expense of the component (Indonesia,

Senegal and Zambia).

Project documentation contained much more information on the

performance of the Project Implementation Units. They identified four issues.

As with the Bank supervision missiona, the PIUs sometimes placed too much

emphasis on physical implementation at the cost of educational objectives. In

Zambia, the absence of an educator on the PIU staff meant that management and

monitoring of software inputs such as training and curriculum development fell

by tte wayside. Senegal and Mali experienced similar problems. In Indonesia,

the PIU gave greater attention to implementing the construction of

polytechnics within the project, at the expense of overseeing the important

technical assistance aspects of the Accountancy Development Centers. This

lack of attention meant that senior expatriate accountancy specialists were

not appointed until the end of the project period, so that the Second

Polytechnic Project had to bear the major cost of their services. This latter

example points to a second PIU issue--whether each component should have its

own PIU or whether there should be a central PIU. Project documents are

inconclusive about which approach is preferable.

The third issue was related to staffing. Depending on the country,

those who chose to work in the PIU had to leave their career paths, which were

difficult to reenter. Further, they were not adequately compensated for their

work. In Jordan, the government attempted to entice people to work with the

PIU by offering higher salaries; a special allowance for this incentive was

included in the credit. It was not totally effective in maintaining staff,

however. Although the government requested such special allowances in

subsequent loans, the Bank denied the request. Mali had similar problems in

maintaining staff. In Ivory Coast, the government attempted to compensate for

the inexperience of staff by hiring a management consulting firm to assist the

PIU. This approach was not effective because the consulting firm itself did

not have experience with the Bank and because it did not promote Indigenous

capacity. This problem was addressed in subsequent projects.

- 38 -

The final issue involved the nature of the relationship between the

Bank and the PIU. This relationship was found to be critical. Good rapport

and close communications between the Bank and the PIU were instrumental in

successful project implementation in Gambia, Brazil and the PDRY. Of the

latter the PCR noted, "Communications between the government and the

Association were generally good throughout the project period and critical

problems were solved efficiently.' Conversely, implementation suffered in

those projects where Bank-PIU relations were weak. In Morocco, the Ministry

of Transportation (MOT) resented the Bank's interference in staffing the

school and the PIU. Ultimately, the HOT failed to assign full-time high level

staff to oversee implementation, and three hotel training centers had to be

deleted from the project.

Regarding project financing, in several cases outside funding was

needed to carry out project objectives. For example, secondary facilities in

Lesotho had poor ventilation, and the German government stepped in to repair

them, as well as to provide additional fellowships. The Canadian government

provided substantial technical assistance to the Technical Institute in

Gambia, which facilitated its opening.

The first education project in Mali experienced the greatest

problems with financing. The PCR noted that,

Almost all implementation problems stemmed from the country'sdifficulty in meeting operational expenses and from the shortage ofexperienced personnel to initiate, manage and sustain operationalprograms. None of the project institutions or extensions wasoperational until 1979 because the national contributory funds werenot available at the scheduled times.

These problems spilled over into the second education project and

resulted in the cancellation of the construction of the Planning and

Management Institute.

- 39 -

XnBnovatxlo

Two more recent projects deserve special mention here because of

their uniqueness: a self-employment component in Indonesia; and a project to

construct a regional management training center in Senegal.

One of the key elements of Indonesia's Fourth Development Plan is to

expand employment opportunities. Manpower projections have led authorities to

conclude, as mentioned, that self-employment and the informal sector will

account for about three quarters of new employment outside agriculture.

Therefore, government policy is to assist self-employment directly through

training and other support. One component of the Manpower Development and

Training Froject of 1986 addresses this policy with a pilot that program

explores ways to provide training for self-employment, entrepreneurship and

management.

The project is reviewing existing training in self-employment,

entrepreneurship and management at the universities and private businesses and

management schools and at similar locations in other countries in order to

design a program for Indonesia. The project will work through the BLKs

(vocational training centers) and will be coordinated with other, similar

planned activities, such as a proposed UNDP/ILO project to train youth for

self-employment. The programs will assist trainees to prepare investment

proposals for financing by Bank Negara Indonesia 1946. Extensive technical

assistance is being provided for staff training.

In Senegal, a regional institution for management training for the

six Communautes Economique de l'Afrique de l'Ouest (CEAO) countries will train

high-level managers for the private and public sectors. Although several

institutions existed in the various countries to train middle-level managers

and clerical workers, none trained the highest level managers until 1981, when

the ESGE was established in Dakar. Senegal IV is intended to expand ESGE into

a regional training center, Centre Africain d'Etudes Superieures en Gestion.

(CESAG). CESAG will absorb the programs of ESGE and provide upper-level

- 40 -

management training and upgrading courses for managers in Burkina Faso, Ivory

Coast, Mali, Mauritania, Niger, and Senegal, as well as other countries in the

region. It will also serve as a research and resource center and providing

consulting services.

CEAO member countries have long wanted a regional training

institution (they initially signed an agreement in 1978). They saw the need

for specialized training institutions for high-level staff but recognized that

the number of high-level managers did not justify the creation of such

institutions in each country. Each of the countries had also experienced

difficulties in recruiting and maintaining top-quality specialists from abroad

to train the most advanced students. As a result, they decided to push for a

regional high-level facility to address these issues and facilitate

communication among managers in different countries. Although the recurrent

costs at ESGE were high and were expected to remain high under CESAG, project

managers are most concerned with creating a quality institution.

- 41 -

IV.- PERFORHSNCE

It is important to weigh the costs and benefits of training

institutions when making decisions regarding continuation of training and

future training initiatives. The question has long been posed in terms of

whether the skills provided by vocational and technical education are worth

the higher costs of this type of training.

Overall, project documentation did not provide enough information to

answer this question. The data on recurrent costs were sporadic, general,

and, as with the industry sample, difficult to decipher. In many cases the

PCR simply referred to the recurrent costs as being "too high," without giving

precise figures. Data on graduation rates, placements and employer

satisfaction were practically non-existent.

Below is an itemization of the recurrent cost data (by mode) given

in the reports, as well as an indication of how these costs were financed.

Economic Outcomes

Management Skills

Recurrent costs for the Lesotho Institute of Public Administration

were $962 (1974). The students made a small contribution toward these costs.

In Mali, the government paid the salaries of the staff as well as the

scholarships for training at the Planning and Management Institute (IPGP)

under Mali II. Other operating costs of the institution were being financed

through consulting contracts with state enterprises, government agencies and

private firms. The PCR for the ESGE under Senegal III questioned the high

operating cost and low student staff ratios. Employers were to cover a large

share of the recurrent costs:

[The ESGE] would organize upgrading courses and seminars for middle-and high-level managers employed in parapublic and privateenterprises. A fee would be charged for participation in thesecourses and seminars, and it is expected that after a start-up

- 42 -

period the upgrading courses and seminars would be self-supporting.The Institute would also establish a management consultingdepartment, which would undertake organization and managementstudies and analyses for private and parapublic sector enterprisesin Senegal and neighboring countries.

--from the PCR, Third Education Project, Senegal

The PCR indicated that the departments responsible for the in-

service training and consultancies had substantial income and "if the hopes of

the business consultancy department, which are partly based upon the

development of the regional service offered by the Center are realized, the

school will be on the way to a much greater degree of self-financing than at

present." It is noteworthy that, in this project, the loan provided partial

financing for the salaries of Senegalese staff.

Non-Formal

Although precise figures were not given, the SAR for Brazil III

noted that the unit cost per student/hour at SENAC was less than at SENAI

because of lower instructor salaries and maintenance costs.

Secondary

The PPAR for Ivory Coast I noted that, although the Technical

Secondary School was considered to be very successful, the recurrent costs

were high as a result of the large number of expatriate teachers, low student

teacher ratio and generous bursaries. The recurrent costs were very high for

the Vocational Secondary Schools under Ivory Coast III, at $5,062 (1980). The

reason was the under utilization of facilities and low student teacher ratio.

Employers who paid to send their employees for training met some of these

costs. In addition, they paid a payroll tax of 1.5 percent, some of which

went to finance the recurrent expenditures at the commercial school.

Sector work conducted during Korea I showed that fees were charged

at all levels, and collected by parent-teacher associations in accordance with

- 43 -

guidelines set by the MOE. Further, earmarked taxes on personal income and

business profits provided some financing for the technical high schools. This

review looked at secondary technical schools in both the commercial and

industrial sectors. Surprisingly, the recurrent costs for the commercial

schools--at $172--was higher than those for the industrial schools--at $162

(1969).

In Lesotho, recurrent costs were given as $319 (1974). Students

made some contribution toward the recurrent costs, but it was minimal (about

15 percent). At the ECICA, in Mali, recurrent costs were $600, and the

government was -nable to meet them during project implementation. The PCR

noted that part of the problem was the large number of students receiving

scholarships: just prior eo project implementation, they had accounted for 57

percent of budgeted expenditures.

Post-Secondary

Recurrent costs were high at Ivory Coast's INSET--$3,900 per year--

because of the high costs of expatriate teachers, low student/teacher ratios

(61) and generous bursaries. In Senegal, recurrent costs for the Senegal I

University Technology Institute were high for similar reasons, although France

subsidized them providing both teachers and funds for some operational

expenses. The mission estimated that if the entire teaching staff were

Senegalese and there were no subsidy for the recurrent costs, the total cost

per student would be about $3,400 (1971), even higher than the unit costs of

the University of Dakar. Again the reason was the high pupil/teacher ratio

(6.5:1) and high social costs (the government was providing a large number of

scholarships and was subsidizing boarding expenses). The PCR noted that,

High unit costs are perhaps an unavoidable feature of an institutionlike the IUT in Senegal [and, we could say, Ivory Coast], where themodern sector is relatively small and hence the demand for qualifiedmanpower is fragmented and in each specialization only a smallnumber can be absorbed. This means that each section of the IUT canhave only a small annual intake; therefore, since courses arealready combined whenever possible, pupil/teacher ratios are low andthe cost per student is high.

- 44 -

--from the PCR, First Education Project, Senegal

The PCR recommended cutting the boarding subsidies and instituting

more selective criteria for scholarships, as well as asking employers to

contribute.

For the Indonesia XIII polytechnics, the SAR projected recurrent

costs at about $300 per year (based on the costs of teaching in the commercial

secondary schools). It was anticipated that some of this cost would be

recovered from student fees, which were being charged at other polytechnics.

Similarly, the community college system in Jordan solicited nominal "voluntary

tuition fees" from students. Finally, it appears that the Evelyn Hone College

in Zambia may have been partially funded by an education tax levy, although

the project documents did not give full information. It is known that fees

were charged for tuition and boarding at the post-secondary schools, although,

again, complete data were not provided.

Rates of Graduation. Placement and Emnlover Satisfa^tion

Management Skills

Almost of the management training components were designed to

upgrade the skills of those already employed. In the case of LIPA in Lesotho,

the short business and management courses were reported to be improving the

quality of civil service personnel at the highest level. Employers gave high

marks to the caliber of graduates of the ESGE under Senegal III. Relations

between the institute and the business and industrial sectors were excellent.

Non-Formal

Io data were available.

- 45 -

Secondar

Korea I had high placement rates (there were close contacts between

employers and schools, and, as noted, the schools were able to modify their

curricula to meet employers' needs). The reports gave graduation rates only

for Ivory Coast III (a very low 40 percent, attributed to the weak scholastic

background of the students accepted for entrance and the teachers' lack of

training problems that led the entrance requirements to be raised), and PDRY

II (very high--97 percent). Surveys indicated that employers were very

satisfied with the training of students in Lesotho, whereas they were very

disappointed with that in Mali.

Post-Secondary

The PCR reported that wastage in Senegal at the University

Technology Institute was considerable. Only 40 percent of the students passed

from the first to the second year in the commercial techniques stream, only 52

percent in the finance and accounting stream, and only 22 percent in the hotel

management stream. However, of those entering the second year, 100 percent

completed their courses for the diploma. This wastage contributed to a move

toward stricter admission criteria. The PCR for Zambia IV stated that the

graduates of the Evelyn Hone College were in high demand in both the public

and private sectors.

IMulementation Outcomes

Project performance was also evaluated according to two related

implementation criteria: percentage of enrollment targets achieved at project

completion and ratings of implementation performance for components.

Enrollment Performance

Overall, the proportions of enrollment targets (actual

enrollment/planned enrollment) achieved at completion were excellent (Table

15). The secondary and post-secondary components, at 1.01 and .91

respectively, came very close to meeting their targets. The data for the non-

- 46 -

formal components were inconclusive: these components ran far over their

targets--at 4.21--but the figure includes Brazil III, a component which

overshot its target by 450 percent. Otherwise the figure would have been

.78). It was difficult to gather enrollment data for the management sk'lls

components, since these types of institutions offered such a wide variety of

training experiences, from one-day seminars to three-month courses and even

degree programs. Of seven completed management skills components, enrollment

data were available for four; their targets were met, at 1.30.

Table 15: Proportion of Planned Enrollment Targets Achieved atCompletion, by Mode, Region and Income Level, 1969-82

MODE

Secondary 1.01Non-Formal 4.21 (.78 excluding Brazil III)Post-Secondary 0.91Management Skills 1.30

REGION

Africa 0.78Asia 1.22MENA 0.78LAC 4.56 (includes only Brazil III)

INCOME LEVEL

Low 0.99Lower Middle 0.87Upper Middle 2.62 (1.46 excluding Brazil III)

Overall Average 2.10 (1.23 excluding Brazil III)

Both "planned" and "actual" enrollment figures were availablefor 19 of the 23 completed components.

Low-income countries performed much better in contrast to the

industrial sample, meeting their enrollment targets at .99 (vs. .41). The

lower middle-income countries had a reasonable showing of .87, very close to

- 47 -

that of the industrial sample (.90). There were only two upper middle-income

countries reporting (only a total of three components in this category were

completed)--they exceeded their targets by 2.62 (or 1.46 if Brazil III is

excluded).

Average Component Performance

Component performance was the second criterion by which

implementation performance was evaluated. Here, a numeric value of 1-4 was

assigned to indicate the success of the component (Table 16). The commercial

sample performed better than the industry VET components, with an average of

2.8 for low-income countries, 2.6 for lower middle-income countries and 3.0

for high-income, vs. 1.7, 2.2 and 2.5, respectively, for the industrial

components.

The larger proportion of components achieving enrollment targets and

the higher component performance ratings indicate that the commercial projects

were more successful than the industrial projects. A possible explanation is

that the commercial projects had simple designs and were easier to implement.

By Region, the projects implemented in Africa were quite successful,

with an overall component performance rating of 2.78. Africa had the largest

number of projects planned in the commercial field and the largest number of

completed.

- 48 -

Table 16: Average Component Performance,*/ by Mode, Region,and Income Level, 1969-82

Mode Region Income Level

Secondary 2.60 Africa 2.78 Low 3.10

Non-Formal 2.80 Asia 2.50 Lower Middle 2.60

Post-Secondary 2.80 EMENA 2.75 Upper Middle 3.00

Management Skills 2.86 IlC 3.00

Overall Average 2.78 2.78 2.78

1 - poor; 2 - fair; 3 - good; 4 - excellent.

- 49 -

V. CONCLUSIONS

The conclusions center around five major topics, as discussed in

further detail below:

(1) While there is an increasing demand for commercial training in

developing countries, the Bank plays a small and possibly

diminishing role.

(2) The Bank's commercial VET projects have been well-designed and

implemented.

(3) The commercial VET projects have been similar in many ways to

the industria' VET projects.

(4) Many features of the commercial VET projects made them stand

out from the industrial VET projects.

(5) The management training components were characterized by a

number of unique features.

Bank Investment in Commercial VET is Small. Although Demand Is

Growing Worldwide. Bank financing of commercial VET has accounted for a small

share of its overall funding for vocational education and technical training.

Since the Bank began to support commercial VET, its commitment has been fairly

stable, with about one to two new projects starting each year. The average

size for commercial VET components has been very small relative to other types

of VET. In more ways than one, commercial VET investments can be

characterized as "add-ons" to larger, mainly industrial VET projects. In

strong contrast to the Bank's limited support for this form of VET,

enrollments in commercial VET and developing country investment in it have

been growing rapidly in recent years.

- 50 -

Commercial VET Components Score High Marks Based on Indicators of

Successful Planning and Implementation. By and large, Bank-financed

commercial VET has been well-planned and implemented. Most projects boast a

high rating on component performance (2.78 on a scale of 4), especially in the

lower income (2.78) and African countries (3.1). Actual costs have been close

to planned costs, with an average underrun of 2 percent overall. As with the

industry VET projects, the commercial VET projects experienced time overruns,

albeit smaller ones: the typical commercial VET project was completed

approximately one year closer to the planned completion date than was the

typical industry VET project. Nearly 100 percent of the commercial projects

achieved their planned enrollment targets by the time they were completed.

Not all of the indicators were so positive, however. In particular,

the average planned (and actual) unit cost of a Bank-financed commercial VET

student place was quite high--nearly US$8,000 per student (nor does this

figure account for the recurrent costs). This figure is substantially higher

than the per-place cost of industrial VET. Surprisingly, the non-formal

commercial VET components were primarily responsible for the exceedingly high

costs.

Commercial VET Projects Are Similar in Many Respects to Industrial

VET Projects. The justification for many of the projects in both samples was

similar, that is, to train workers to help meet economic growth targets.

Other rationales included replacing emigrating labor and expatriate workers

and improving the equity of VET. As with the industrial components, many of

the commercial projects were based on general manpower projections, that

involved inadequate data.

Again as with the industrial components, the commercial VET

components rarely addressed the training needs of women. This oversight was

particularly serious in the commercial components, since they were the most

likely to involve women. Nor did either type of VET component pay much

attention to generating demand for vocational training, although the

- 51 -

industrial components were more likely to attempt this strategy than were the

commercial components.

Interestingly, there was substantial overlap in the provision of

commercial and industrial training: over one-third of the commercial courses

were introduced along with industrial courses. In these projects, the focus

was usually on the industrial courses.

Financing was a problem for the commercial projects in Africa and

low-income countries as it had been for the industrial projects. However,

overall component performance was higher in the commercial sample than in the

industrial sample for those groups of countries.

Educational outcomes such as graduation rates, job placements, and

employer satisfaction were very difficult to discern for either the commercial

or industrial components. The reason is that the PCRs were often written

after the civil works had been completed but before the project institutions

were fully operational.

Congjerial VET Projects Are Distinct from Other VET Prolects in Many

fl. Many fewer commercial projects were financed, and they were

significantly smaller than the industrial projects. The cost of the average

commercial VET component amounted to only one-fifth of the total project cost,

whereas the average industry component came to three-fifths of the total

project cost. Further, the component institutions were smaller under the

commercial VET projects than the industrial ones (430 student places vs. 506

places).

Sector work has not addressed commercial training issues

extensively. Most sector studies of VET have concentrated on industrial

training.

When instituted, commercial training was a novelty. In many cases,

the commercial VET institutions the Bank financed were the very first or among

- 52 -

the very first to be instituted by borrower country governments. This factor

may have contributed to the high cost of the civil work and the

correspondingly high per-place costs.

The emphasis in commercial VET projects has been more on improving

the skills of currently employed modern sector employees than on increasing

the number of white-collar workers available for this sector. In contrast,

the industrial VET tended to focus more on the need to provide new blue-collar

workers to the manufacturing sector. Given this focus of commercial VET, much

of the training emphasized skills upgrading. Further, many commercial VET

institutions provided training courses in the evening, that extended the use

of facilities.

Training for entrepreneurs was an innovation introduced in

Indonesia.9 It was intended to provide the skills and know-how-training

(such as bookkeeping, clerical work and management) that workers with

industrial skills (such as plumbing, woodworking, etc.) needed to create their

own jobs. Access to financing for small business start-up was an important

component of the strategy.

Another feature of commercial VET was the large number of women who

received training. However, only one project targeted women, while several

others referred to the many women enrolled in secretarial and office support

courses.

Although the commercial institutions had a large number of

expatriate teachers on staff, only one project included teacher incentives.

The industrial projects were much more likely to incorporate salary incentives

and the like to attract teachers from the private sector.

Commercial institutions were far more likely than industrial

institutions to send staff abroad for fellowship training rather than

V Madagascar also has introduced entrepreneurial training, but was notincluded in the study.

- 53 -

providing in-service training. Fellowship training is decidedly more

expensive, and one project institution purposely eschewed it in favor of in-

service training in order to expand the numbers reached.

Commercial VET involved no uniform testing and certification

standards. Because commercial VET, especially the non-formal and post-

secondary components, falls outside most countries' national vocational

networks, systematic competency testing and certification procedures are often

overlooked. This gap may impede quality control in training programs.

An important difference between the industrial and commercial

training components is that the latter did not have ready access to

alternative financing for recurrent- expenses. The industrial components were

more likely to have received finarncing from employer payroll taxes under

national training systems. Only a few commercial components provided for some

cost recovery.

A final distinctive characteristic of the commercial 7ET components

is that those implemented in low-income and African countries performed very

well. They were, on the whole, smaller, simpler projects with smaller VET

components and they focused on quality improvement and upgrading of worker

skills. Their performance contrasts sharply with the industrial VET

components in low-income or African countries, which performed quite poorly.

Management Training Components Were Characterized by a Number of

Unique Features. This review of commercial VET projects included management

training inasmuch as it was directed toward acquiring job-related skills.

Also, many of the component institutions provided a broad range of training,

including office support in addition to business management. Further,

although 'commerce" may be seen as a private sector activity, schools of

public administration were included for two reasons. In most countries

managerial talent flows freely between the commercial or business sector and

the public sectors. Moreover, many businesses that in a developed country

- 54 -

would normally be privately-owned in developing countries are publicly-owned,

and their managers have the same tasks.

Most of the management skills components were justified on the basis

of replacing expensive expatriate workers in managerial positions. The

training was seen as a way of indigenizing the work force in order to improve

economic competitiveness. In addition, a large num'ier of these management

institutions had expatriate teachers.

These components sought to improve the quality of employed managers,

rather than to increase their numbers substantially.

Almost all of the management training institutions were integrated

centers that offered: research and consulting capabilities to undertake

organization and management studies and analyses for private and public sector

enterprises; contract, in-service training to upgrade workers in public and

private enterprises; and on-site training. An objective of most of the

institutions was to become self-supporting through the provision of services

for fees. It was difficult to discern from the project documentation how

successful these institutions had been in achieving this goal. The PCR for

the Higher School of Business Management in Senegal noted that this

institution was on its way toward some degree of "self-sufficiency."

Finally, most management skills components were not concerned with

institutional evaluation. In most cases, attendance at the training sessions

and seminars was sufficient for certification, which often was required for

advancement. No attempt was made to assess the practical impact of the

management development.

It is important to note that the SARs offer little discussion on the

value of publicly-run management training centers. One exception to this is a

1985 EDT discussion paper ("Institutional Development in Education and

Training in Sub-Saharan African Countries"). It reported that often public

agencies and especially private enterprises do not value the input of the

- 55 -

public management training centers enough to pay for their services. Several

reasons were noted. First, being government-administered, the training

centers were likely to be designed and operated as public bureaucracies

instead of developing business-like and entrepreneurial attitudes and skills.

The centers were also dependent upon the government for financing. Further,

links with employers were often tenuous; therefore few in the managerial

circles regarded the management institutions as organizations that they owned.

Third, the centers were often too academic, pursuing their own objectives

rather than those of local businesses, and as such were only marginally useful

to practitioners. Fourth, many were staffed by teachers and trainers with no

practical experience. For all these reasons, both private and public

enterprises were unlikely to seek consultation from the training centers. In

short,

Institutions that do not enjoy decision-making and financialautonomy lack a high degree of motivation, and are not exposed tofinancial pressures which would stimulate them to make continuousefforts to improve services to clients, and to achieve a reasonableratio between the costs of these services to clients, and to achievea reasonable ratio between the costs of these services and the feescharged. Instead, many heads of institutions.. .see the solution infurther grants and subsidies, and further aid coming from donors, sothey can continue delivering their current services, regardless ofclient acceptance. The total dependence of an institution on agovernment department means that clients have little influence onthe institution that is P-pposed to serve them. Thus clients rarelyfeel a sense of shared responsibility for the development of theirmanagement institutions.

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VI. RECONUNDATIONS FOR FUTURE PROJECTS

Secondary, Post-secondary and Non-formal Commercial Training

The Bank is well-placed to finance commercial VET in lower income

countries, where development of the modern sector is progressing slowly. The

Bank has a proven record in planning and implementation, except for the high

per place costs of many of the components. Instead of waiting for private

provision to evolve, a country might identify a critical period in the

development of its modern sector during which multilaterally-financed VET

could be implemented rapidly. PDRY is a good example of such an effort in a

lower income developing country. PDRY is in the initial stage of modern

sector development. Prior to the PDRY II project, there was no private

provision of commercial training, despite a critical shortage of skilled

technical and managerial personnel. The Bank-financed commercial training

component in PDRY satisfied a recognized need.

For middle-or upper middle-income countries, Bank financing of

commercial secondary, post-secondary or non-formal VET is not as critical as

it might be in lower income countries. However, the Bank can provide

exemplary training institutions for private firms to emulate. In addition,

the Bank can provide types of services that the private sector is ill-equipped

to provide, such as advanced technology. Finally, the Bank can provide

complementary training for workers, as is happening in Brazil, where Bank

project institutions are providing necessary skills training. Graduates of

these institutions then continue on at private sector institutions where they

polish their skills. The institutions also serve as employment agencies for

trainees.

More specifically, commercial VET projects could benefit from

improvements in the following areas:

(a) Typically, women have little access to vocational and technical

training--especially in the agricultural or industrial sectors.

- 57 -

Not only should the Bank not encourage gender segregation of

training, but commercial training can provide women with

specific occupational competencies that would enable them to

obtain salaried employment in the growing modern sector. Hore

effort could be made to enable women from rural areas to study

commercial courses.

(b) Simple project designs were particularly successful, especially

in the lower income and African countries; commercial VET was

usually a small component in each project, an approach that

appears to have been optimal, and one that should be continued.

(c) To cut project TA costs and increase the benefits of TA, there

should be more use of in-country trainers, as is the case with

industrial VET, in lieu of fellowship training abroad. The

literature on accounting training and management education

strongly endorses localization or at least regionalization of

skills training for these subjects over sending trainees abroad

for study.V Even more than industrial training, commercial

skills training benefits from within-country (or within region)

instruction because the skills acquired tend to be more

culture-specific.

(d) Testing and certification should be built into each commercial

VET project, especially accounting. The Bank could help the

MOEs set up uniform testing and certification standards and

could assist ministry staff in setting performance standards

for the institutions.

I/ See A.J.H. Enthoven, Accounting Education in Economic DevelopmentManagement (Amsterdam: North-Holland Publishing Company, 1981) and Milan Kubrand John Wallace, Successes and Failures in Neeting the Nananement Challenge:Strategies and Their Implementation (Geneva: Management Development Office,ILO, 1983).

- 58 -

(e) Entrepreneurial training is a new area. This training was

introduced on an experimental basis in Indonesia (Indonesia

Manpower Development and Training Project XIX), where self-

employment and the informal sector were expected to account for

about three-fourths of new the employment outside of

agriculture. The Bank's experience with such efforts is, as

yet, very limited. But cautious experimentation accompanied by

strong evaluation merits consideration where informal sector

employment is expected to generate a large share of new jobs.V

(f) With regard to commercial training in financial skills, the

World Bank has focused on project-related training programs for

accounting. This approach has led to institutional successes

but has not contributed to country-wide improvement in the use

of financial data by professionals in developing countries.

The spin-off effect has failed to materia''ze because there has

been little opportunity to promote accounting at the national

levels.2 Through its sector work, the Bank can help countries

establish a strategy for teaching accounting and through

project designs it can help them identify, develop and

implement accountancy training nationwide.

(g) Other recommendations for commercial VET mirror those for all

types of project implementation. For example, (i) greater

effort should be made to develop good relations between the

PIUs and Bank officials, as an effective linkage is strongly

associated with positive project outcomes; (ii) technical

educators should be included on supervision missions so that

1 A good discussion of the link between commercial and entrepreneurialtraining is presented in Kubr, Milan and Wallace, op. cit., pp. 86-95.

1' International Federation of Accountants, Asian Development Bank and WorldBank, Asia and Pacific Coniference on Accounting Education for Develo2ment(Philippines: Asian Development Bank, 1984).

- 59 -

they can trouble-shoot problems before they escalate; and (iii)

PCRs should be written only after the educational outcomes can

be assessed.

tana;ement Skills Trainina

Before proceeding to the recommendations for future Bank projects

involving the development of management skills, it is important to note that

only 10 such projects were included in the sample, of which only 7 had PCRs.

Of the 7, one invol'-ed a study of a Management Development Institute to be

implemented in a future project, and in two others the physical facilities

were not completed, although training was provided on a limited basis in

alternative quarters. Therefore the inferences have been drawn from a

relatively small number of projects. For this reason, outside sources were

consulted in analyzing the Bank's experience in management skills components.

In particular, Christopher Willoughby made a valuable contribution to the

analysis of management skills training in the developing world. In his

monograph, "Strategies for Strengthening Mid-Career Management Training

Institutions in Developing Countries," he pointed out that the need for

training in management skills has been growing, especially in sub-Saharan

Africa:

... the events of the last decade--first the sharp rise in energycosts and then the growing burden of external debt coupled with aslow-down in the world economy--have put a premium on managementskills at the national, program, and individual enterprise levelsand have focused the attention of all concerned on the shortage ofstaff with management training and experience...This shortage is notonly simply of those with basic management training; it is even morea shortage of management staff who have the higher level ofmanagement expertise required to respond effectively to theincreasingly complex economic conditions facing developingcountries.. .Faced with these needs for trained management staff, itis acutely apparent that existing management training opportunitiesfor mid-career staff are far too few and many of the institutions

- 60 -

which are t ing to meet this need are themselves in great need ofupgrading.27

The following recommendations, then, are based on the findings of

this review supplemented by other critical research in the field.LV

(a) Initiatives to strengthen mid-career management training should

build on existing institutions. There is no need to re-invent

the wheel. Four of the components in the sample did expand on

existing management institutions.

(b) Training institutions ought to be designed to serve a broad

clientele in both the public and private sectors. Most of the

project institutions in the sample were open to both sectors,

although the focus was usually on the public sector.

(c) Institutions should incorporate a mix of training, consultancy

and research that mutually reinforce one another and better

serve the institutions' clienitele. All but one of the project

institutions were integrated training centers offering a full

range of services.

(d) Management skills training components should develop internal

costing, financial planning and management capabilities and

procedures so that the training institution can remain

financially viable after donor agency support is ended or

stopped. Although most of the project reports in the sample

did not discuss recurrent costs, the completior. mission for

ESGE in Senegal considered operating costs to be a serious

problem. Authorities there anticipated that it would be

W Christopher Willoughby, Strategies for Strentthening Mid-Career ManaaementTraininA Institutions in Develoning Countries (Geneva, Management DevelopmentOffice, ILO, 1985).

111 Ibid., Willoughby. See also Kubr and Wallace, op. cit.

- 61 -

possible to charge fees as the institution became more

established. Willoughby recommends charging fees from the

start to set a precedent.

(e) Training institutions need to build a competent faculty by

adopting personnel policies that provide opportunities for

career development and include other incentives to encourage

faculty members to remain at the institution for a reasonable

period. Faculty must also have practical experience. The

leadership of the institution is of critical importance.

Staffing was a problem in almost all the project institutions.

Inadequate staff at the centers in Gambia and Indonesia meant

that technical assistance (counterpart training) was not used

to best advantage. In Malaysia, some staff were considered

unqualified. The focus of the Somali project was to build a

strongly qualified and dependable staff. In addition, it

included a component to study civil service salaries, with a

view toward providing more incentives for teachers.

(f) Management skills training institutions should incorporate into

their curricula a broad range of effective pedagogical

techniques and use relevant, locally prepared material.

Teaching and training should be linked to the identification

and solution of practical problems--that is, should embody a

problem-oriented approach rather than a discipline-oriented

one. Almost all of the project institutions had some linkage

to their clientele (e.q.,in the case of the public sector,

advisory boards were established with representatives from user

agencies while in the case of the private sector, employers

were included on these boards). The success of ESGE in Senegal

was the result, in large part, of the strong employer influence

on the curriculum.

- 62 -

(g) Training institutions must engender a management style that is

flexible and efficient--they should be run as an enterprise

rather than as administrative units of the government. Their

operational management must ensure that strategies and plans

are implemented and the cost of services kept to the necessary

minimum. This recommendation is based on Willoughby's

research, as well as on observations made by a Bank review of

institutional development in education and training in sub-

Saharan Africa. All of the project institutions were publicly-

run and therefore ran the risks detailed in the previous

section: a tendency to be operated as a bureaucracy and a lack

of motivation to improve services, since the government

provided the financing.

(h) Finally, management skills training institutions must create

the necessary competence and procedures for self-evaluation so

that they can continually improve their performance and adapt

to changing circumstances. Evaluation was a real shortcoming

of these projects. There were no measures to assess the

performance of the institutions and to determine whether the

training provided contributed to improved job performance on

the part of participants.Dl

Project planners of management skills training institutions could

use the ESGE, established under the Senegal III project, as a model. ESGE,

which under Senegal IV was expanded into a regional training cenier, CESAG,

serves both the public and private sectors (although the focus is on the

latter); it offers a full range of services, from training to consultancy and

research; it charges fees for in-service training and consultancies that have

generated substantial incomes) for the institution; the practical orientation

of the program is strengthened through the use of about 40 practicing managers

as part-time instructors, and special attention is paid to attracting the

R' Kubr describes five evaluation criteria: (i) attendance, (ii) reaction,(iii) learning, (iv) behavior and application and (v) results.

- 63 -

teaching staff necessary for a high quality program; and, finally, the

curricula are tied to participants' needs--priority is given to practicing

managers, classes are scheduled to fit participants' schedules and allow them

to return to their enterprises for practical application after the first two

semesters. As the completion mission observed,

In brief, this is a dynamic component whose achievements and resultsare quite impressive and whose relevance to country needs andflexibility are probably largely due to the size of the employerrepresentation on the governing board... Its achievements so far arequite impressive in terms of the amount and quality of the trainingmade available, relations with the industrial and business sectorand the Senegalisation of the training staff.

- 64 -

Annex I

METHODOLOGYPJ

A representative sample of commercial VET components was selected

for detailed analysis of the questions raised in the introduction. The

components were analyzed using a questionnaire developed from a list of

variables list based on a conceptual framework of VET.W These variables, and

the corresponding questions, clustered around four main themes:

(a) Description of the overall project and its VET components;

(b) External efficiency of the component institutions;

(c) Internal efficiency of the component institutions;

(d) Financing of the component institutions.

The questionnaire provided for both quantitative, descriptive

information and evaluative data. This material was entered into a data base

program on a personal computer that facilitated analysis across variables,

including the integration of the quantitative and textual information.

CHARACTERISTICS OF THE SAMPLE

The universe of the components for the four modes studied consisted

of 63 VET components in 56 projects in 37 countries financed between FY63 and

FY87. The total cost of these components, including contingencies, was

$373.85 million (6 projects accounted for 56 percent of these costs, the other

PI A full description of the methodology is recorded in Review of World BankInvestments in Vocational Education and Training for Industry, by JohnMiddleton and Demsky (Washington, D.C.: World Bank, 1988).

W Drawn in part from Hunting, Zymelman and Godfrey,. Evaluatini VocationalTraining Programs: A Practical Guide. (Washington, D.C.: World Bank, 1986).

50 projects for the remaining 44 percent). Thirty-four of these components

(54 percent of the total), drawn from 28 projects in 14 countries, were

selected for the sample. The total cost of the VET components in the sample

was $298.49 million, or about 80 percent of the total cost for the universe of

components. An attempt was made to include all completed commercial VET

projects and their follow-ons in the sample.

The sample was stratified to permit comparison of investments by

mode, country income level and Region. As noted, the study examined

commercial vocational and technical education and training delivered through

four institutional modes, defined as follows:W5

Secondary. Vocational education and training delivered through

senior secondary schools that grant degrees and that offer such

programs as a principal purpose (not through a "diversified"

curriculum). These schools were generally operated by the

Ministry of Education. In principle, secondary-level VET

provides access to higher level education and training.

Post-Secondary. VET programs that provide occupation-oriented

training and generally require a secondary-level degree for

entrance. These courses are operated either within existing

universities or in centers such as polytechnics, designed

specifically for technical purposes.

Non-Formal. Institutions that offer a variety of non-degree

programs, from short-term, three-month courses to training of

two and three years at the vocational level. These programs

are designed to provide specific skills for employment. Non-

formal institutions are generally administered by agencies

WI These categories, with the addition of university-level VET investments,general teacher training and diversified secondary school projects, encompassthe range of types of VET institutions supported by the Bank (see SchwartzNineteen eighty eight).

- ii -

outside the formal education structure, such as the Ministries

of Labor or Tourism, or by employer organizations.

Management Skills. Programs designed to provide specific

functional skills for employed managers at all levels. This

approach is in contrast to universities, which focus on pre-

service managerial education and the provision of general

administrative skills. Management skills training programs

were often provided by schools of public administration,

catering to both the public and private sectors. Some provided

lower-level commercial skills training as well, including

secretarial and clerical skills, accounting and language

courses.

The second dimension of the sample was the income level of the

country, using the annual per capita income categories of the 1986 World

Development ReRort: low ($400 or less), lower middle ($401-$1,600) and upper

middle ($1,601 or more).

The third dimension was the World Bank Regional structure of Africa,

Asia, Europe/Middle East/North Africa (EMENA) and Latin America/Caribbean

(LAC).

Characteristics of the sample, as stratified by these three

dimensions, can be seen in Annex Table 1.

THE DATA

The data were drawn primarily from SARs and PCRs. The data were

weak in many respects. The SARs did not deal uniformly with project

justification and planning, the elements in the design of a component or

costs. The PCRs rarely contained adequate information on the outcomes

educational projects since they were written at the completion of the physical

-111 -

components. To clarify the information included in the documents, projects

officers were occasionally contacted.

Annex lable 1: Characteristics of the Sample--Distribution of Components byMode, Region and Income Level (sample in parentheses)

Mode Region Income Level

Secondary 18 (8) Africa 36 (16) Low (14)

Post-Secondary 13 (7) Asia 9 (6) Lower Middle (16)

Management Skills 16 (10) EME k 13 (10) Upper Middle (4)

Non-Formal 16 (9) LAC 5 (2)

Total 63 (34) 63 (34) (34)

- iV -

SELECTED BIBLIOGRAPHY

American Accounting Association. Accounting Education and the Third World.(American Accounting Association, 1978).

Auerhan, J. Ramakrishnan, S. Romain, R. Stoikov, G. Tiburcio and L. Torres, P.Institutlonal Development in Education and Training in Sub-SaharanAfrican Countries. Education Policy Division Discussion Paper EDT22.(Washington, D.C.: World Bank, 1985).

Enthoven, Adolf J.H. Accounting Education in Economic Develonment Management.(Amsterdam: North-Holland Publishing Company, 1981).

International Federation of Accountants, Asian Development Bank and WorldBank. Asia and Pacific Conference on Accounting Education forDeveloRment. (Philippines, Asian Development Bank, 1984).

Kubr, Milan (ed.). Managing a Management Develogment Institution. (Geneva:ILO, 1982).

Kubr, Milan, and John Wallace. Successes and Failures in Meeting theMAnagement Challenge: Strateagies and Their Implementation. (Geneva:Management Development Office, ILO, 1983).

Ministere de l'Enseignement Technique et de la Formation Professionnelle..mniire StatistiLue de 1'Enseignement Technique et de la FormationProfessionMelle. Abidjan: Ministere de l'Enseignement Technique et de laFormation Professionnelle, 1982).

Organisation for Economic Co-operation and Development. E"u atig, andTraining After Basic Schooling (Paris: OECD, 1985).

UNESCO. "Statistical Report: Technical and Vocational Education in the World,1970-1980."

-. Studies in Technical and Vocational Education: Developments inCommercial Education. (Paris: UNESCO, 1983).

USAID. Indonesia: Education and Human Resources Skctor Review (IEES, 1986,pp. 7-27).

Willoughby, Christopher. Strategies for StXengthening Mid-Career ManagementTraining Institutions in DeveloRing Countries. (Geneva: ManagementDevelopment Office, ILO, 1985).