PLENARY SESSION II I :

IMPROVING GOVERNANCE AND DEVELOPING STRONGER POLICY COHERENCE &

COORDINATION BETWEEN EMPLOYMENT AND SKILLS POLICIES

Anil Verma, Ph.D., Professor

Centre for Industrial Relations & Human Resources and Rotman School of Management

University of Toronto

OECD Southeast Asia Regional Policy Network on Education and Skills and

Regional Cooperation Programme to Improve the Quality and Labour Market Orientation of Technical and

Vocational Education and Training (RECOTVET)

9th Annual Expert Meeting of the Initiative on Employment and Skills Strategies in Southeast Asia (ESSSA) and

6th Regional Policy Dialogue on TVET

“Building Talent for the Next Production Revolution”

11-12 October, 2017

Ha Noi, Viet Nam

SYMPTOMS OF POLICY INCOHERENCE IN TVET

High structural unemployment

-grads

-economy

Not responsive to market needs

Not agile in responding to the

market

Lack of innovation

- In TVET

- Among firms

Lack of demand for higher skills

FIRST THEOREM OF THE SKILLED JOBS ECONOMY

Utilization of enhanced skills depends largely on a demand for enhanced skills

Demand for enhanced skills depends on innovation and creativity at the workplace

Workplaces vested in the status quo

do not contribute to demand for

enhanced skills

A culture of innovation creates a steady demand for enhanced skills

Two Lenses

• TVET as multi-lateral

• TVET as specialized agency

• Supply-and-Demand for skills policies

• Supply dominant TVET

Service delivery

focus

Strategic policy focus

Inter-dependent

Ecosystem

Self-contained

Platform

Tw

o L

en

se

s

Limited effectiveness

Ideal

Very Ineffective

Low industry

engagement

Skills supply focused

TVET as a self-

contained system

Skills supply-and-demand focused

TVET as a

multilateral

ecosystem

POLICY COHERENCE IN TVET

Within Institutions Across Institutions

INCOHERENCE ACROSS INSTITUTIONS

• Industry Associated NGOs

• Local organizations

• Professional bodies

• Institutes of Technology

• Colleges

• Universities

• Private sector trainers

• Industry Associations

• Individual firms

• Skills & Employment

• Labour

• Industry

• Technology Government Industry

Non-profit associations

Education & Training

Institutions

POLICY INCOHERENCE WITHIN GOVERNMENT

• Supply side:

- skills & employment

- labour

• Demand side:

• Industry

• Regional

development

• Science & technology

SUPPLY-SIDE APPROACHES

Boost post-secondary enrollments

Incentives for apprenticeships

Incentives for training

Target key groups: youth, women, minorities

Bridging programs

CASE: NIAGARA COLLEGE

• Programs pertinent to local industry:

viniculture, tourism & hospitality

• Local labour market surveys

• Internships

• Research Projects

• Contract research with industry

Specific skills &

knowledge

Competing Locally

High Quality

Unique Products

Responsive & Flexible

Creating Demand for Higher Skills

Diffuse Innovations

2

Demonstrate

3

Train

4 Support

1

Legitimize

AUDIT & BENCHMARKING FOR EDUCATIONAL & TRAINING INSTITUTIONS

• Periodic curriculum review

• Self-study

• External review

• Joint boards with industry

• Local labour market surveys

• Apprenticeships

• Fast-track approval of new & modified programs

GOVERNMENT AS POLICY LEADER

• Develop and coordinate across stakeholders

• Invite joint input from industry and TVET on

where to invest? Geographically and functionally.

• Fund programs accordingly

• Set performance targets

• Audit performance of institutions

• Set up rewards based on performance

CONCLUSION: TAKEAWAYS FOR POLICY COHERENCE

Connect

Demand-side considerations to supply-side policies

Network

Across all the institutions in TVET design and delivery

Innovate

Within firms and within TVET

NOT JUST SUPPLY, ALSO DEMAND..