Präsentation Vietnam mit Küstenmanagement

Albanian VET Strategy and Action Plan for the period 2013 - 2020 Workshop on VET System Management and Financing

VET System Financing Werner Heitmann Senior VET Policy Consultant Tirana | 13 June 2012

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Basic Challenge of VET System Financing Society Government Government must be interested in satisfying market and social demand. Competitiveness

Labour Market Demand from Enterprises

Voters

Social Demand from Individuals VET System

Ability to Study

Employability Donor Contribution

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Inter-company training model

Co-operation Strategy

Effectiveness

Both are needed for sustainable improvement of VET!

Market model

Partnership model

Alternating model

Low

 Efficiency: Input-OutputRelation  Effectiveness: Impactorientation

High

Efficiency and Effectiveness of VET

Status Quo

Rehabilitation Strategy

Low

Efficiency

Government School model

High

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Key Elements of VET Financing Systems Vision: Challenges: 





 

Public funds are decreasing, but still the main source State budget alone is not sufficient for high-quality VET offers Enterprises hardly contributing Individuals‘ ability-to-pay is limited Donor financing is lacking sustainability Control Mechanisms:

Ensuring transparency; Avoiding misuse; Monitor & evaluate progress and impact

Diversification of VET Financing (State, Enterprises, Individuals) Strategy: Generation of Resources

Efficient and effective allocation of rare resources

Objective: Management

Four Key Elements

Allocation

Stronger incentive-driven & output-orientated financing mechanisms Result :

Institutions

Replacement of input-driven financing mechanisms through demand-driven financing mechanisms (e.g. vouchers, loans)

Organisation: Establishment of stakeholderdriven VET Funds in Combination with a National VET Authority 13.04.2015

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Four Basic Allocation Models Decentralised (market) Approaches International Trend

Purposespecific purchasing from providers

Demanddriven allocation through trainees

Traineecentered

Contract based

Input Orientiation

Output Orientation

Budgetorientated

Centrally planned, inputbased distribution to providers

Performancebased distribution to providers Programorientated

Output-oriented allocation motivates VET providers to increase their internal efficiency. Three reform models: 1. Financing of VET programmes (performance-based) 2. Tender-based purchase of VET services

Centralized (regulated) Approaches

3. Learner-centered financing model

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Strengthening Private Sector Involvement  Target: Direct contribution | In-Company Training  Utilization of workplaces for training increases | Efficiency  In-Company Training is employment-relevant | Effectiveness  Direct benefit must be recognized ( Cost-benefit analysis)

 Incentive Systems | Indirect Monetary Contribution  Collective VET Levy  Levy-Grant-Systems (levy exemption, re-distribution, re-funding)  Special taxes

A VET Levy System can only be realized in combination with a National VET Fund.

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VET Levy  Advantages  Adequate measure if engagement of companies in VET is weak  Purpose-specific utilization of funds  Constant flow of funds | Applicable to all companies

 Disadvantages  Informal sector | SMEs: Ability-to-pay is negligible  Companies see levies as a burden, not an incentive Particularly tax-paying enterprises being engaged in VET  Mistrust in public institutions | Low acceptance Clear regulations for purpose-specific utilization of funds, or combination of levies with pay-back / refunding mechanisms are necessary!

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Training cost

Training Levy | 3 Pay-Back Mechanisms

Training providing Company

Training cost

Non-Training providing Company

Option 1: Exemption from Training Levy Administration cost VET Funds

Training Levy

Training providing Company

National VET Fund

Option 2: Re-funding of training cost Option 3: Redistributed levy

Direct Allocation to Training Provider, etc.

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Management via VET Funds  Key characteristics  Budget clearly addressed to VET purposes only, no access through other state budget positions  Can be fed by sources of the public and/or private sector, donor contributions etc.  Frequently (not necessarily) combined with a levy system

 Advantages     

Budgets reserved for VET purposes | Reliable financial planning Through ‚Funding Windows‘: Adressing special target groups Cross-subsidisation (between VET sub-systems) easier to control Private sector engagement in financing and forming VET system Independent / performance-based distribution of funds to providers

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Common VET Financing Reform Approaches Grants, Loans, Vouchers

Government / State Budget Allocation

Subsidies, Matching Grants, Tax Benefits

Grants / Loans

National VET Fund

Donors

VET Levy

Fees

Enterprises

Trainees

Fees

Target groups: Trainees, Workers

Fees / Vouchers

Performance / Output-orientated Financing

Public and Private Training Providers

Additional Revenues

Income-Generating Activities

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VET Voucher System | Possible Design VET Authority: Legislation, Regulation, Coordination, Facilitation Government

National VET Fund VET Budget Temporary Budget Support

VET Levy

including VET Voucher & Levy Administration

VET Information Center

Innovation Budget

Levy-based Grant Tax Incentives

Voucher Schemes

Grants Donors

Quality Assurance & Accreditation

VET Innovation Fund

Matching Grants

Trainees

Tuition Fees

VET Vouchers

Enterprises Employers

Employee Voucher Schemes

Public & Private VET Providers Income Generation

Cooperative Training; Partnerships between Industry & VET Providers

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Thank you for your attention…

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