Jaime Saavedra Chanduví -...

Jaime Saavedra ChanduvEducation Minister of Peru

Juan Pablo Silva MacherVice -Minister of Institutional Management

Ral Choque LarrauriHead of the Office of Scholarships and Educational LoansExecutive Director of the National Program of Scholarships and Educational Loans (MINEDU)

Institutional Management Plan for the National Program of Scholarships and Educational Loans

Technical Team:Ral Choque LarrauriSergio Bravo CucciCsar Llanos TorresDan Yaricahua IparraguirreLuis Guerrero Silva SolisDelia Quispe MarochoRaquel Gutirrez SnchezDora Pineda Paredes

Edited by:National Program of Scholarships and Educational Loans - Ministry of EducationArequipa Av. 1935, LinceLima, Peru. Telephone: (511) 672-6233www.pronabec.gob.pe

Design and Layout:Manuel Bardlez HerreraAlex Saavedra Pisconte

Legal deposit made in the Peruvian National Library No 2015-11704ISBN No: 978-612-46789-3-6Printed in:AVC PUBLICIDAD YARE S.R.L.R.U.C. 20554120068Mz X Lt 6 Reino Unido, Villa Mara del TriunfoFirst EditionPrint run: 700 copiesMarch, 2015It can be totally or partially reproduced by quoting the source.

INSTITUTIONAL MANAGEMENT PLAN

2014 - 2018FOR THE NATIONAL PROGRAM OF SCHOLARSHIPS AND

EDUCATIONAL LOANS FROM THE MINISTRY OF EDUCATION

P R O N A B E C S I N S T I T U T I O N A L M A N A G E M E N T P L A N 2 0 1 4 - 2 0 1 8

President of the Peruvian Republic, Mr. Ollanta Humala Tasso, with Scholarship Holders of Scholarship 18

2014 - 2018

INSTITUTIONAL MANAGEMENT PLANFOR THE NATIONAL PROGRAM OF SCHOLARSHIPS AND



5

President of the Peruvian Republic, Mr. Ollanta Humala Tasso, with Scholarship Holders of Scholarship 18

2014 - 2018



BOARD OF TRUSTEES FROM THE NATIONAL PROGRAM OF SCHOLARSHIPS AND EDUCATIONAL LOANS

JUAN PABLO SILVA MACHERPresident of the Board of Trustees Vice -Minister of Institutional Management

RAL CHOQUE LARRAURI Technical Secretary of the Board of TrusteesExecutive Director of the National Program of Scholarships and Educational Loans

OMAR AMED DEL CARPIO RODRGUEZNational Center of Strategic PlanningMember

VIVIANA CRUZADO DE LA VEGAMinistry of Economy and FinanceMember

JOS LUIS AMADEO SEMINARIO CARRASCOMinistry of HealthMembe

MARTN VIZCARRA CORNEJONational Assembly of Regional Governments Member

MARA GISELLA ORJEDA FERNNDEZNational System of University Quality Assessment, Accreditation and Certification (SINEACE)Member

GUILLERMO VALDIVIESO PAYVAPresidency of the Council of Ministers General SecretaryMember

CHRISTIAN CALDERN LUNAMinistry of Labor and Promotion of EmploymentMember

P R O N A B E C S I N S T I T U T I O N A L M A N A G E M E N T P L A N 2 0 1 4 - 2 0 1 8P R O N A B E C S I N S T I T U T I O N A L M A N A G E M E N T P L A N 2 0 1 4 - 2 0 1 8

6

BOARD OF DIRECTORS FROM THE NATIONAL PROGRAM OF SCHOLARSHIPS AND EDUCATIONAL LOANS

RAL CHOQUE LARRAURIExecutive Director

SERGIO DAVID BRAVO CUCCIHead of the Administration Office

JUAN EULOGIO ARROYO LAGUNAHead of the Planning Office

ELADIO MXIMO RAMN NEZ PEA Head of the Legal Advisory Office

MARTN GUSTAVO MALLMA ARRESCURRENAGAHead of the Press and Communications Office

VCTOR CARLOS SALAZAR CNDORHead of the Undergraduate Scholarships Office

MAX RAFAEL TELLO CHARNHead of the Postgraduate Scholarships Office

JORGE AUGUSTO CALLE LPEZ Head of the Special Scholarships Office

HCTOR SANTIAGO CUADROS RAMREZ Head of the Educational Loan Office

ISABEL PAIVA ZRATEHead of the National Coordination Office

CSAR ALEJANDRO LLANOS TORRESTechnical Advisor of the Executive Management

MANUEL ANTONIO PERAMS OBREGNAdvisor of the Executive Management


7

HEADS OF THE REGIONAL AND LOCAL LIAISON UNITS (UER / UEL) FROM THE NATIONAL PROGRAM OF SCHOLARSHIPS AND EDUCATIONAL LOANS

RLU Amazonas Villacrez Gallo Mara EsperanzaRLU Ancash Camones Snchez Pedro SantosRLU Apurmac Quispe Huamn FranciscoRLU Arequipa Cervantes Castro de Ivanov Tania PaolaRLU Ayacucho Valer Torres Gleni MelvaRLU Cajamarca Requejo Nez Joel NahunRLU Cusco Cusimayta Osca JavierRLU Huancavelica Carrin Riveros Hctor RodolfoRLU Hunuco Sabrera Ortiz Miguel ngelRLU Ica Muoz Fernndez Rina TatianaRLU Junn Pastrana Quintana EleliaRLU La Libertad Racchumi Macalopu Carmen del MilagroRLU Lambayeque Carrasco Mogolln de Sanjins Mara del PilarRLULima Medina Zela BernabRLU Loreto Sandoval Daz Yolanda AmaliaRLU Madre de Dios Laura Lima AnaRLU Moquegua Chire Olvea Daniel FernandoRLU Pasco Trinidad Egsquiza HugoRLU Piura Chvez Requena Guido ErtidoRLU Puno Escobedo Dueas Genaro EnriqueRLU San Martn Crdenas Inuma Vilha RaquelRLU Tacna Carrillo Zavala Hugo AbelRLU Tumbes Rujel Atoche scarRLU Ucayali Retegui Prez RubnLLU Mazamari - Junn Pajar Muoz Mery LuzLLU Pichari - Cusco Rojas Abad Alexander RafaelLLU Bagua Grande - Amazonas Morillos Garca Luis JoelLLU Huanta -Ayacucho Pozo Ore EdgarLLU Chimbote - Ancash Zafra Marcelino Miguel ngelLLU Juliaca - Puno lvarez Alagn Maribel LLU Nauta - Loreto Nez del Prado Hidalgo Dora KarinaLLU Tarma - Junn Espritu Espritu Edison


Minister of Education Ph.D. Jaime Saavedra Chanduv with scholarship holders of Scholarship 18

2014 - 2018




9

Minister of Education Ph.D. Jaime Saavedra Chanduv with scholarship holders of Scholarship 18

2014 - 2018



INDEX

PRESENTATION 15 CHAPTER I : PRONABECS INSTITUTIONAL FRAMEWORK 21

1.1 INSTITUTIONAL BACKGROUND 23 1.2 NATIONAL INSTITUTE OF SCHOLARSHIPS AND EDUCATIONAL LOANS (INABEC) 24 1.3 OFFICE OF SCHOLARSHIPS AND EDUCATIONAL LOANS (OBEC) 27 1.4 NATIONAL PROGRAM OF SCHOLARSHIPS AND EDUCATIONAL LOANS (PRONABEC) 28

CHAPTER II : CONTEXT OF HIGHER EDUCATION IN LATINAMERICA AND PERU 41

2.1 ACCESS TO HIGHER EDUCATION IN LATIN AMERICA 43 2.2 GAPS IN ACCESS, TERM AND COMPLETION IN HIGHER EDUCATION IN PERU 44 2.3 HIGHER EDUCATION RELEVANCE AND QUALITY IN PERU 52 2.4 RETURN TO HIGHER EDUCATION IN PERU 69 2.5 SCHOLARSHIP PROGRAMS FOR POOR POPULATIONS WITH HIGH PERFORMANCE 72 CHAPTER III : STRATEGIC FRAMEWORK 75

3.1. VISION 77 3.2. MISSION 77 3.3. INSTITUTIONAL VALUES 77 3.4. STRATEGIC ALIGNMENT AND ARTICULATION 78 3.5. STRATEGIC OBJECTIVES 87 3.6. APPROACHES OF PRONABEC 87 3.7. MANAGING FOR RESULTS 95

CHAPTER IV : LOGICAL FRAMEWORK OF SOCIALINCLUSION SCHOLARSHPS 103

4.1. LOGICAL FRAMEWORK OF SOCIAL INCLUSION SCHOLARSHIPS 105

LOGICAL FRAMEWORK OF HUMAN CAPITAL TRAINING 115

5.1. LOGICAL FRAMEWORK OF HUMAN CAPITAL TRAINING 117 5.2. EDUCATIONAL LOANS 124

CHAPTER VI : PHYSICAL AND FINANCIAL GOALS 133

BIBLIOGRAPHY 135

ANNEX 1 : BOARD OF DIRECTORS OF PRONABEC REGIONAL LIAISON UNIT 145


10

ACRONYMS

AECID CEPLAN CONCYTEC CPM CTI CVR EBR ENAHO IES IGC INABEC INEI IPE MINEDU OBEC OEA OECD PESEM PIR PNUD PpR PRONABEC REPARED ROF SIAF SIBEC SIBEPREG SISBEC SISCRE SISFOH UE UNESCO VRAEM WEF

Spanish Agency of International Cooperation forNational Center of Strategic PlanningCouncil of Science, Technology and Technological InnovationPublic Teaching CareerScience, Technology and InnovationTruth and Reconciliation CommissionRegular Basic EducationNational Household Survey Higher Education InstitutionGlobal Competitiveness Index National Institute of Scholarships and Educational LoansNational Institute of Statistics and InformaticsRegional Competitiveness IndexMinistry of EducationScholarships and Educational Loans OfficeOrganization of American States - OASOrganization for Economic Cooperation and Development Multiannual Sectoral Strategic PlanComprehensive Reparation PlanUnited Nations Development Program - UNDPBudgeting for ResultsNational Scholarships and Educational Loans ProgramEducation Restoration Program Regulation on Organization and FunctionsIntegrated Financial Administration SystemIntegrated Scholarship SystemUndergraduate Scholarship SystemScholarship Management System Educational Loan SystemHousehold Targeting SystemExecuting UnitUnited Nations Educational, Scientific, and Cultural OrganizationApurmac, Ene and Mantaro Rivers ValleyWorld Economic Forum


11

GRAPHS

Graph N 01:

Graph N 02:

Graph N 03:

Graph N 04:

Graph N 05:

Graph N 06: Graph N 07:

Graph N 08:

Graph N 09:

Graph N 10:

Graph N 11:

Graph N 12:

Graph N 13:Graph N 14:

Graph N 15:Graph N 16: Graph N 17:Graph N 18:Graph N 19:Graph N 20:Graph N 21:Graph N 22:Graph N 23:Graph N 24:

Graph N 25: Graph N 26:

Graph N 27: Graph N 28: Graph N 29:Graph N 30: Graph N 31: Graph N 32: Graph N 33:

National Institute of Scholarships and Educational Loans (Organizational Structure)Scholarships and Educational Loans Office (Organizational Structure)Scholarships and Educational Loans Program (Organizational Structure)Coverage map of active scholarship holders by districts up to 2014Projection of the Gross Enrollment Rate in Higher Education for Latin America and the Caribbean (1998-2015)Gross Enrollment Rate in Higher Education in Latin America 2009Educational Level reached by the population aged 15 and over according to Poverty Conditions 2012 -2013Reasons for not pursuing a Higher Education between 15 - 29 years of ageAverage amount of years of education achieved by the population of 25 years and over, 2002 - 2012Average amount of years of education achieved by urban and rural population aged 25 and over 2002 - 2012Average amount of years of education by region, population aged 25 and over, 2002 - 2012 Percentage of students that access and completed a higher education with at least one degree / by gender (2011 - OECD)Academic efficiency rate in Latin America (2006)Contributions of the economic sectors to the GDP growth (2004 - 2013, I quarter 2014)Staff to be employed by economic sectors - PeruCareers with high demand and oversupply of labourShortage and excess in the labour market by regionPercentage of employers with difficulties for filling postsNumber of documents indexed by regionsEvolution of production in Latin America and the CaribbeanEvolution of scientific production in andean countriesDocuments indexed per USD 1,000 millions of GDP in 2012Documents indexed for each USD 1,000 millions of GDP in 2012The top 10 peruvian universities with high scientific production according to the SIR 2014 Ranking Return of Higher Education in Peru 2012Probability of being poor according to educational achievement, Peru 1985 and 2004PRONABEC Map of Processes Social Inclusion Problem TreeSocial Inclusion Objective TreeCausal logic model - Social Inclusive ScholarshipsHuman Capital Problem TreeHuman Capital Inclusion Objectives TreeProgramming of scholarship


Scholarship holder Annie Constanza Chumpitaz Torres - Harvard University

Master in Public Administration in International Development

It is important to prepare yourself and set goals. Applying and being admitted into a Master program in a top

university is not easy, neither will you get it overnight. For Master programs, universities value that one has

followed a clear professional path, both academically and occupationally. In that sense, the preparation

begins at the university, getting good grades; then working in organizations or institutions that allow continuous

learning.

2014 - 2018




13

Scholarship holder Annie Constanza Chumpitaz Torres - Harvard University

Master in Public Administration in International Development

It is important to prepare yourself and set goals. Applying and being admitted into a Master program in a top

university is not easy, neither will you get it overnight. For Master programs, universities value that one has

followed a clear professional path, both academically and occupationally. In that sense, the preparation

begins at the university, getting good grades; then working in organizations or institutions that allow continuous

learning.

2014 - 2018



TABLES

Table N 01:Table N 02:

Table N 03:Table N 04:

Table N 05:

Table N 06:Table N 07: Table N 08:Table N 09:

Table N 10:Table N 11:Table N 12:Table N 13: Table N 14:Table N 15:

Timeline of scholarships and educational loans granted in PeruCooperating countries and international organizations for the channeling of scholarships.Researchers holding a Ph.D. degree by specialization fieldPeruvian Universities positioned among the best 300 Latin American Universities, according to the QS University Ranking, 2014The top Peruvian Universities according the AmricaEconoma ranking, 2013Human capital index - Peru 2013Human capital index - Latin America 2013Ranking of the Global Competitiveness Index 2013 - 2014Peruvian Evolution in the 12 pillars of competitiveness IGC 2013 - 2014Districts and provinces, by Peruvian departmentsSocial inclusion scholarship productsHuman capital scholarship productsMaximum amounts granted by type of loanDistribution of loans portfolioScholarship programming

PRESENTATION


LOGICAL FRAMEWORK OF HUMAN CAPITAL TRAINING

17

PRESENTATION

Quality higher education is the most profitable investment that countries and their citizens can make. In that sense, investing in the human capital training gives higher future incomes and sustainability to economies, becoming a strategic tool for the nations social development. The clear positive relation between the Human Capital Index with the Gross Domestic Product (GDP), the Human Development Index (HDI) and the Global Gender Gap Index (GGGI), are strong evidences in this regard at a worldwide level (WEF, 2013).

In the last years, our country has grown economically, reducing the poverty level progressively, however, to reduce it even further, it is necessary to put more emphasis in strengthening education, providing it with a more inclusive, decentralized approach with higher quality standards, allowing the labor market to become more competitive and the overall production will increase considerably.

In the last decade there has been a considerable rise in accessibility to a higher education in Latin America, however, according to the United Nations Economic Commission for Latin America (ECLA), gaps in said level of education between not poor populations in relations to poor populations still persist; for example in the year 2010, the completion rate of higher education in Latin America for individuals from the lowest income quintile was 0.7%; while the higher quintile was 18.3%, revealing a significant gap of 17.6% (ECLA, 2011); in the case of Peru, according to the National Household Survey (ENAHO) from the year 2013, only the 2% of the extremely poor have higher education, in contrast to non-poor population which percentage is 32%, revealing a huge gap in the access of 30%, as it can be seen in both contexts, it is noted that the economical factor provokes the scarce possibility that the less advantaged sectors have for accessing, staying and completing their higher education.A powerful performance indicator of higher education is the effectiveness completion rate from which the student dropout rate is reduced. There are countries in the world where the dropout rate border between 10% or more. For example in the case of the United States of America in the XX century the dropout rate in higher education has been around 50%, while in Latin American countries it is 57% (CINDA, UNESCO 2006), and in the case of Peru according to an Alfa Project study from the European Community it is 57% (ALFA, EC, 2009). In this context the PRONABEC scholarships programs from the Ministry of Education take into account these problems, with the purpose of making more effective strategies to achieve a reduction in dropout rates and therefore generate the students effective completion of higher education.

A growing problem that exists in the country is in regards to the human capital insufficiency; especially in the areas related to productivity, science and technology and with more emphasis in the different regions of the country. According to the Human Capital Economic Map of Peru (2003) there is a deficit of 862,750 of professionals in the country. More professionals are needed in industrial engineering, communications, and technic in mechanics, administration, medicine, agricultural work and gastronomy areas. On the other hand, according to SENATI, approximately 300,000 industrial technicians are required in the country to be able to satisfy the



18

markets labor demands.

The problems associated with inequity factors in the access, permanency and completion of the higher education, have important consequences on the labor market behavior, the productivity, the incomes, the competitively and the economic and social sustainable development of our country and its population. There is neither the quantity nor the quality of technicians and professionals that the productive areas require with greatest dynamism, in a short term a decline in productivity could be experienced, also reducing the income level; on the other hand, in the medium and long term, this will cause a negative impact on competitively, economic growth and development.

Another very important fact, is related to the enormous deficit of researchers and scientist in Peru, effectively, according to the CONCYTEC data (2013), it is necessary to generate human capital with the highest postgraduate levels, since the country requires 17,000 professionals with a Ph.D. degree to accelerate the scientific production and generate new innovative technologies that at the same time will strengthen the national industry and our international competitive performance.

In that order of ideas and in contrast to preceding years, where the Nations participation was limited to receiving and channeling different national and international scholarship offers with little intervention and monitoring margin in the academic strengthening of the student. We consider important that the Nation participates and invests in a more inclusive way, forming quality human capital, fact that is being made by the Ministry of Education by granting the higher education scholarships, having benefited up to date, the talented young peruvians with more than 30,000 scholarships and 1,500 educational loans, whichs reversion is destinated to increase the production factors of the different regions where they come from.

Despite the impact obtained and with the strong intention of increasing the obtained results, the current strategy of the Ministry of Education is based on two central axes: a) Social Inclusion scholarships whichs main purpose is to decrease the higher education gap of populations in situations of poverty, extreme poverty, conditions of vulnerability and/or social exclusion; and b) Human Capital Training, by granting scholarships directed to the youth and adults with talent and academic excellence in professional careers related to research, science and technology or other fields of national interest such as art, culture, and sports; as well as through the educational loan arrangements with a decentralized approach in all the regions of our country.

The formulation of this plan has been developed with the contribution and participation of all the members of PRONABECs Board of Trustees , so that, it represents a multi-sectorial performance directed towards the achievements of the objective and goals of our nation in strengthening the Human Capital for the next four (5) years. Its structure consist of seven chapters: the first chapter describes PRONABEC institutional framework; the second chapter explains the higher education in Peru and Latin America; the third chapter explains the strategic approaches; the fourth chapter explains the programs strategy: mission, vision, values, strategic objectives and action axes; the fifth and sixth chapter shows the logical frameworks of the



19

strategic axes; finally, in the seventh chapter the programming of physical goals and the multiannual budget are shown.

In summary, we can certainly highlight that our current education policy has made efforts to give more importance to young talented students with few economic resources to access a higher education. Implementing this new growth approach is a challenge, since geographical, territorial, social and public service factors are threats for the main purpose of this program, however, nowadays we have the enough experience to focus on the continuous improvement and strengthening of our strategies, optimizing the recruitment of a great number of Human talent, with the ambitious intention of strengthening their capacity and place them in high competitive working environments.

The program is generating good intermediate results, nowadays the programs recipient students, even those coming from poor and extremely poor households, have better academic performance and lower dropout rates than the non-poor students. We also know, that the decentralized exams have balanced the participation of women and has increased the number of scholarship holders from native populations. For the first time in our history more than 1,000 scholarship holders have been able to access prestigious international universities such as Harvard, Stanford, Columbia or Liverpool, among others. Currently we have scholarship holders of the President of the Republic Scholarship (Beca Presidente de la Republica) in United States of America, Mexico, Colombia, Argentina, Chile, Bazil, Spain, England, France, Holland, Italy and Australia.

The impact of the program is much more ambitious, it aspires to transform the development opportunities of the recipients and their families, promoting the economical and human development of the poorest regions and districts of our territory, as well as, promoting a higher international competitiveness of our country.

RAL CHOQUE LARRAURI PRONABECS Executive Director

Leader organization of the Nation in granting scholarships and educational loans for training and specialization of the human talent in the country and abroad

VISION

To grant scholarships and educational loans to talented people, under quality standards to train human capital with a social inclusion approach

MISSION

Commitment

Transparency

Justice and Equity

Suitability

Honesty

INSTITUTIONAL VALUES

Leader organization of the Nation in granting scholarships and educational loans for training and specialization of the human talent in the country and abroad

VISION

To grant scholarships and educational loans to talented people, under quality standards to train human capital with a social inclusion approach

MISSION

Commitment

Transparency

Justice and Equity

Suitability

Honesty

INSTITUTIONAL VALUES

CHAPTER 1: PRONABECSINSTITUTIONALFRAMEWORK


PRONABECS INSTITUTIONAL FRAMEWORK







23

1.1 INSTITUTIONAL BACKGROUND

The Peruvian State has 42 years of experience in granting scholarships and educational loans, through three specific periods: The first one through the National Institute of Scholarships and Educational Loans (INABEC) assigned to the education sector, the second one with the Office of Scholarships and Educational Loans (OBEC), a line agency of the Ministry of Education and currently with the National Program of Scholarships and Educational Loans (PRONABEC) under the Ministry of Education. In the Table No. 01 the periods and the way in which these institutions carried out their activities are detailed chronologically.

TABLE N 01TIMELINE OF SCHOLARSHIPS AND EDUCATIONAL

LOANS GRANTED IN PERU

CRITERIA INABEC OBEC PRONABEC

Activity Period 1972 - 2007 2007 - 2012 2012 - To date

Years of Existence 35 5 2

Legal Framework Decree-Law N 19602Supreme Decree N

009-2007 Law N 29837

Effectiveness

Organization

Decentralized Public Body of

the Educational Sector

MINEDU Line Agency Dependent program of MINEDU

Administration BudgetE.U. dependent and

MINEDU Central Administration

MINEDU Executive Unit

Offices of Attention 01 office in Lima 01 office in Lima

5 Offices in Lima, 27 offices nationwide and 223 at a province and district level

Management model

Scholarships Management and Channeling

Channeling, management and beginning of the

subsidy

Management model

Educationalloans

Revolving fund Revolving fund Revolving fund

12% interest rate 12% interest rate 4.22% interest rate

Number of Permanent Workers 40 30 317

Number of scholarship subsidized by the Nation in Quality IE 0 72 31,165

International Agreements 0 0 50

Source : Planning Office PRONABEC, 2014





24

1.2 NATIONAL INSTITUTE OF SCHOLARSHIPS AND EDUCATIONAL LOANS INABEC (1972 -2007)

The National Institute of Scholarships and Educational Loans (INABEC) was established by Decree Law No. 19602, Organic Law of the Education Sector, dated November 7, 1972 and institutionalized by Decree Law No. 21547 Organic Law INABEC dated July 13, 1976.

After having issued the Law Decree No. 25762, Organic Law of the Ministry of Education, which decided by Supreme Decree, the new organization and functions of the decentralized public government assigned to the Ministry of Education. Its Regulation of Organizations and Functions (ROF) were adopted with Supreme Decree No. 06-94-ED, dated May 6, 1994, and subsequently the institutional framework of the organizational restructuring of INABEC arranged by Supreme Decree No. 022-2001-ED dated April 15, 2001 approved a new Regulation of Organizations and Functions - ROF through Management Resolution No. 041-JI / INABEC / 2001 dated April 19, 2001.

Objective:

INABEC was a public body decentralized of the education sector with legal status of internal public law, responsible for the creation, proposal and implementation of the policy regarding the granting of scholarships and educational loans with technical, administrative and financial autonomy.

Functional Structure:

In accordance with the provisions of the Regulation of Organizations and Functions approved by the Administration Decree No. 041-JI / INABEC / 2001 of April 19, 2001, the organizational structure of the Entity was as follows:

GRAPH N 01NATIONAL INSTITUTE OF SCHOLARSHIPS AND EDUCATIONAL LOANS

(Organizational Structure)

Source: ROF INABEC approved by D.S. N 06-94-ED, 1994

Senior Management

CollectionsManagement

AdministrativeOffice

Internal AuditOffice

ScholarshipAdminstration Office

Institutional AdvisoryOffice

Educational LoanAdminsitration Office





25

Components:

a) Scholarship and Educational Loans

INABEC administrated the national and international scholarships programs, managed, and channeled cooperating sources, prioritizing the recruitment of those in favor of the scientific, technological and cultural development of the country. Likewise, it was involved in the identification of new lines of action in the supply of scholarships, including those with short duration and was aimed at the young and unemployed population of the country, whichs goal was the sustainability and support for small and medium companies.

Concerning the educational loans, INABEC was constituted as a financial support service. It was destined to facilitate higher education, occupational and professional improvement studies, with a criteria of social solidarity. They were aimed at Peruvian students and professionals. The interest rate that INABEC applied for the loans was 12 % annually. The population that benefited from the loans were as follows:

Students of occupational education centers Students of higher education (non-university) Students of university education Graduates Professionals

b) Technical research, orientation and cooperation

Regarding the scholarships allocation and the educational loans concession, INABEC implemented specialization activities in favor of scholarship and loan users, holding orientation programs in function of the labor, technological and scientific improvement of the country. On the other hand, it was responsible for managing with the foreign and national cooperating bodies, the financial support for the National Plan and Program of Scholarships and educational Loans, promoting the participation of institutions or public and/or private companies in the development of these training, updating and improvement programs.

Implementation of actions:

INABECs budget, operated until April 2007, subsequently and by Supreme Decree No. 009-2007-ED dated February 23, 2007, the merger by absorption of INABEC was authorized, leaving the Ministry of Education as the absorber entity. In the existence of INABEC, greater emphasis was placed on the educational loan concession through a revolving fund. Regarding scholarships, only management models of national scholarships and channeling of international scholarships were applied with non-subsidies cooperating countries by the Peruvian State, as detailed below:





26

TABLE N02COOPERATING INTERNATIONAL COUNTRIES AND AGENCIES

Source: INABEC files, table elaborated by the Planning Office PRONABEC, 2014

COUNTRIES THAT PROVIDE

UNDERGRADUATED

SCHOLARSHIPS

COUNTRIES THAT PROVIDE

POSTGRADUATED

SCHOLARSHIPSINTERNATIONAL AGENCIES

Cuba Germany Japan Internationalcooperation Agency Czech Republic Belgium

Slovak Republic CanadaSpanish Agency for International

Development Cooperation (AECID)

Romania Egypt

Russia Spain

United States Fulbright Commission

Holland Organization of American States (OAS)India

Israel UNESCO

Italy

Japan

Malaysia

Mexico

New-Zealand

Czech Republic

Russia

Sweden

Switzerland

Lessons Learned:

A management autonomy developed through a public decentralized body, delivers a more efficient operation and budget. INABEC as a budget and executing entity had greater operational and budgetary management capacity.

The Scholarship and Educational Loans Management Systems: The SISCRE (Educational Loan System) and the SISBEC (Scholarship Management System) contributed in the recording and monitoring of the services, during the time in which these were applied.

The operational management at an educational loan level prioritized the inter-institutional partnerships by signing inter-institutional agreements, which allowed the payroll deduction, but did not include an effective return plan of allocations.

The capacity of carrying out coactive collections becomes an effective tool against financial commitments.

The management of international scholarships channeling offered a unique opportunity for applicants to access and enroll in international scholarships, but it does not foresee the macroeconomic or demand changes.

The allocation of national scholarships allows consolidation of the social responsibility of scholarship granting institutions, but it must include the monitoring and follow up as well as the analysis of quality and suitability of the offer.

Scholarships offers and loan concession were mostly concentrated in Lima without a national level expansion.





27

1.3 OFFICE OF SCHOLARSHIPS AND EDUCATIONAL LOANSOBEC (20072011

With the enactment of Supreme Decree No. 009-2007-ED dated February 23, 2007, The National Institute of Scholarships and Educational Loans (INABEC) was renamed Office of Scholarships and Educational Loans (OBEC). On January 7, 2008, with the amendment of the Organization and Functions Regulation of the Ministry of Education which was approved by Supreme Decree No. 001-2008-ED, OBECs new organic structure was established. Subsequently, through the enactment of Supreme Decree No. 006-2012-ED, The Organization and Functions Regulations of the Ministry of Education dated March 31, 2012, OBEC is considered to be a line organ dependent of the Vice-Ministry of Institutional Management of the Ministry of Education.

Objective:

The OBEC was in charge of developing, proposing and implementing policies related with the granting of scholarships and educational loans. With the enactment of the PRONABEC Regulations by the S.D. No. 013-2012-ED, the Office of Scholarships and Educational Loans (OBEC) is established in the first final complementary disposition to exercise the steering role over the policies in terms of Scholarships and Educational Loans.

Functional Structure:

In accordance with the Organization and Functions Regulations of the Ministry of Educa-tion, the organizational structure of OBEC was formed as follows:

GRAPH N 02OFFICE OF SCHOLARSHIPS AND EDUCATIONAL LOANS


Source: S.D. No. 001-2008-ED, 2008

OFFICE OF SCHOLARSHIPSAND EDUCATIONAL LOANS

Scholarships Units Loans UnitsManagement and

Development Units

Components:

The OBEC implemented a strategy based on 3 components:

1. Channeling scholarships from cooperating international agencies and mana-ging national scholarships.

2. Granting scholarships financed by the Nation.





28

3. Granting educational loans.

The most important aspect of The Office of Scholarships and Educational Loans (OBEC) is that through said institution, the Nation financed -for the first time- higher education scholarships and productive technical scholarships; the types of scholars-hips granted were as follows:

Haya de la Torre Scholarship for a masters degree in the countrys public and private higher institutions.

VRAE Scholarship for productive technical studies, higher technological studies and undergraduate university studies in the regions belonging to the area of the Apurimac and Ene river basins in public institutions.

Santiago Antunez de Mayolo Scholarship for studies and major in the undergraduate higher technological and university level in public educational institutions.

The Bicentennial of Peruvian independence Scholarship (Beca Bicentenario de la independencia del Peru) for undergraduate higher university studies in private institutions of Lima.

Lessons Learned

The development of financed scholarships allowed validation of a new model of the scholarships management and channeling focused in the recipient and the demand that faces the run-out model oriented to the donors.

The implementation of a single selection exam for the Bicentennial Scholarship developed by universities allowed a more transparent and standardized selection of scholarship holders.

The VRAE Scholarships creation and implementation permitted focusing efforts into a defined geographical field and a complex problem that is drug trafficking and terrorism.

The Santiago Antunez de Mayolo Scholarship allowed for the youth from public educational institutions with academic achievements and economic problems stay and complete their higher education.

1.4 NATIONAL PROGRAM OF SCHOLASHIPS AND EDUCATIONAL LOANS PRONABEC (2012 AT PRESENT)

The National Program of Scholarships and Educational Loans of the Ministry of Education was created by Law No. 29837, dated February 12, 2012, and established in its First Final Complementary Disposition that the administration and organization of the Program should be made under the precepts issued by the Ministry of Education; and in its Second Final Complementary Disposition arranges that the Executive Management of the Public Budget of the Ministry of Economy and Finances creates the Executing Entity: the National Program of Scholarships and Educational Loans.

It is in this spirit, through Ministerial Resolution 108-2012-ED dated March 20, 2012, PRONABECs Operations Manual is approved. For that reason, PRONABEC





29

begins its functioning since such date and in function of the First Final Complementary Disposition of its Creation Act.

The purpose of the program is to contribute to the equity in higher education by grating scholarships and educational loans to students with low and limited economic resources and with high academic achievements, ensuring the access, term and completion in this phase.

Objective:

PRONABECs objective is to contribute to the equity in higher education by grating scholarships and educational loans to students with low and limited economic resources and with high academic achievements, ensuring the access, term and completion in this phase

Functional Structure

The organizational structure determines a guide for tasks and roles specific to generation of value for public servants, with the purpose of increasing the efficiency, quality, innovation and all the distinctive capabilities which create value in the organization. The National Program of Scholarships and Educational Loans has Senior Management, line, advisory, support, and local or regional liaison agencies; the last ones allow a support network throughout the national territory, they are established as decentralized units whichs specific responsibilities and functions are determined in its Operational Manual1 approved by Ministerial Resolution No. 108-2012-ED, the PRONABECs organizational structure is as follows:

Board of Trustees:

The Board of Trustees is the maximum hierarchy body of PRONABEC, between its functions is the following:

a) To establish PRONABECs guidelines, policies and priorities. b) To approve PRONABECs Institutional Management Plan and Annual Memory. c) To carry out the monitoring and evaluation of PRONABECs results in order

to propose improvements in its design and implementation. d) To absolve the questions that the Executive Direction may have.

The Board of Trustees consists of the following members:

Two representatives of the Ministry of Education, where one of them presides the board of trustees and holds the casting vote.

One representative of the Presidency of the Counsel of Ministries.

1 Operations Manual from the National Program of Scholarships approved by the Ministerial Resolution N 108-2012 ED





30

One representative of the Ministry of Economy and Finance. One representative of the Ministry of Labor and Promotion of Employment. One representative of the National Assembly of Regional Governments. One representative of the Universities Accredited by Competent Bodies

of the National system of Assessment, Accreditation and Certification of Educational Quality (SINEACE).

One representative of the National Center of Strategic Planning. One representative of the Ministry of Health.





31

The organizational structure of the Program is summarized in the following flowchart:

GRAPH N 03NATIONAL PROGRAM OF SCHOLARSHIPS AND EDUCATIONAL LOANS


Source: R.M No.108-2012-ED, 20 mars 2012

MINISTER

Vice-minister ofInstitutional Management

ExecutiveDirectorate

Board of Trustees

Accounting Unit

Treasury Unit

AdministrationOffice

Logistic Unit

Staff Unit

Information andSystems Unit

Patrimonial control Unit

Monitoring and Prior Control Unit Press and

Communication Office

Planning Unit

Budget Unit

InternationalAffairs andCooperation

Unit

PlanningOffice

Undergraduate Scholarships

Office

PostgraduateScholarships

Office

Regional Liaison Unit of Scholarships and Educational Loans

Local Liaison Unit of Scholarships and Educational Loans

National Coordination

Office

Special Scholarships

Office

Educational Loan Office

Legal Advice Office

Archiving and Documentary

Procedures Unit





32

Components

Undergraduate Scholarships Component (Undergraduate Scholarship18):

This component is regulated in numeral 3.1 of the Article 3 of the Law No. 29837 and of the article 6 to 15 of its regulation, approve by Supreme Decree No. 013-2012-ED, amended by Supreme Decree No. 008-2013-ED. It is granted to the graduate students of the basic education of public institutions, with higher academic level and low economic resources according to the Household targeting System (SISFOH). This Components objective is to finance the access, term and completion of higher university studies and higher technological education in Peru and abroad, with emphasis in professional careers related to the scientific and technological development of the country and facilitates an adequate entrance of graduates to the labor market.

Postgraduate Scholarships Component

This component is regulated in numeral 3.2 of the Article 3 of the Law No. 29837 and articles 16 to 24 of its regulation. It is granted to those who have finished their higher university studies and got the academic degree, major or professional degree for the development of the professional career. It gives priority to students with excellent academic performance belonging to the top 30% of their class from the higher education institutions where they finished their undergraduate studies, good professional and investigation profiles, and insufficient economic resources; or recipients of the undergraduate scholarship belonging to the top 30% of their class, for research studies and postgraduate investigations. It finances postgraduate studies: doctorates, masters, doctoral internships, jointly supervised doctorates, and research or integration scholarships at a postgraduate level which are given after obtaining the academic degree, professional degree or major for the profession.

Special Scholarships Component

This component is regulated in Article 4 of the Law No. 29837 and the Articles of 25 to 28 of its regulation. It has different type of methods and it consists of scholarships that are not included within the undergraduate and postgraduate scholarship components. They are subsidized and charged to the Ministry of Educations institutional budget, as well as contributions from national and international cooperating sources. Its objective is to strengthen the human capital and attend the necessities of access to different types of productive technical, higher university and technological education that the vulnerable populations present; or to attend special situations not covered by other legal dispositions in force regarding scholarships.





33

Educational Loan Component

Its purpose is to partially or fully finance, in a refundable way, undergraduate and postgraduate studies for students with high academic performance and insufficient economic resources, in national or international technological higher education institutes and public or private universities. In this sense, the educational loans purpose is to facilitate the access, term and completion of higher education for people with financial restrictions, financing these through the granting of loans with an interest rate much lower than what the financial system offers with related products.

Lessons Learned

The subsidized scholarships directed to the demands or necessities of the country and to the populations duly focused allow the social inclusion of quality higher education and the strengthening of the human capital in institutions in the country and abroad, reducing the access, term and completion gaps that have been historically documented.

The decentralization process must begin at the invitation that must include promotion and diffusion actions, as well as the recruitment of potential applicants in their communities of origin. Furthermore, strategic partners must be sought out regional, provincial and local governments, private companies, etc. at the regional, provincial and local level; in order to implement orientation activities to the potential recipients of the program. These could be developed through vocational orientation fairs or informative talks; where all the necessary and suitable information will be provided for correct decision-making, related to the kind of educational institution and professional career to be chosen.

The selection processes of the scholarship holders are more transparent when the participation of the organized civil society is included and there is intervention from the private sector through the outsourcing of the last phase of the validation process of the application files.

The diversification of populations must generate differentiated products and services but the attention must be comprehensive, in that sense the scholarship has financial support of housing, transportation, study materials, meals, health services, tutoring and leveling courses costs.

The efficiency of the subsidy processes is key, the timely payments to scholarship holders and institutions gives confidence and reduces the risk of dropouts or abandonment. The subsidies unit of the SIBEC system, aligned with the Integrated Financial Management System SIAF-SP, allows a transparent and efficient management of the subsidy payments.

The information technologies are essential for keeping contact with the scholarship holders and the institutions. The Scholarship Holder Intranet is a social and administrative space between PRONABEC and the scholarship holder that allows an optimal monitoring of the scholarship holders requirements.





34

A coverage approach based on the geographical stratification of the poverty and extreme poverty at a district level, allows geo-referenced monitoring of the populations and communities attended or not attended, allowing a plan of attention of the same.

A high level excellence model based on 100 by 100 (on hundred scholarship holders enter, 100 leave and 100 are inserted in the labor market) allows the results to be directed to the academic excellence and the optimal monitoring. The zero cycle service allows a greater success rate in the scholarship holders transition and the tutoring service allows a successful continuity and completion.

The public-private partnerships like the ones related to the unique and decentralized exams oblige the educational institutions to include recipients of different cultures and communities, the savings of the program in admission exams is significant and it also results on a higher access to the program for women.

The labor integration and employability of the graduated scholarship holders must be directed since a pertinent selection of the careers that meet the expectations of the labor market, the productive, scientific and technological development of the country. Likewise, the quality of the higher educational institutions that participate in the program must contribute to an adequate labor integration.

After 42 years, the scholarship management in the country has been able to capitalize a valuable experience and learned lessons, having gone through three organizational periods (autonomy, dependence and semi-autonomy), evolving from a model of channeling and managing scholarship grants to a subsidiary model focused in the higher academic performance directed to populations with low and insufficient economic resources to access quality higher education and human capital. This last model of scholarship granting has achieved a higher social inclusion in quality higher education, prioritizing access to the talents coming from districts with a higher level of poverty, vulnerable populations and in special situations. At an educational loan level, the autonomy model has been kept through the rotatory fund, which has allowed the financing of studies with low interest rates reduced from 12% to 4.22%, facing the implementation of a decentralized new model of long-term loans in comparison to others experiences in the contemporary world.

PRONABEC has the strong intention to take the presence of the Nation to a national level, for that, it prepares a decentralization strategy of its processes through the regional or local liaison units, in order for the young and adults students from the furthest and more excluded districts and provinces of the country have access to the programs benefits. Effectively, to date, PRONABEC has benefited young and adult students nationwide, covering the 25 regions of the country and the 1,559 districts, this means, at a regional level a 100% coverage has been achieved and 84.45 % at a district level. In graph No. 04 the great coverage of the program can be seen according to the region and district at a national level, even in the larger regions





35

furthest from the capital of the country: Loreto, Amazonas, San Martn, Huanuco, Cusco, Puno, among others.

On the other hand, PRONABEC also promotes the Peruvian human capital presence abroad, thousands of young and adult scholarship holders continue undergraduate and postgraduate studies in the best universities of the world. For example: approximately 1,000 professionals with a high academic level have been able to access prestigious international universities such as Harvard, Stanford, Columbia or Liverpool universities, among others. We currently have scholarship holders of the President of the Republic President of the Republic Scholarship in the United States of America, Mexico, Colombia, Argentina, Chile, Brazil, Spain, England, France, Holland, Italy and Australia.





36

GRAPH N 04COVERAGE MAP OF ACTIVE SCHOLARSHIP 18 HOLDERS BY DISTRICTS - 2014

TumbesTumbes

PiuraPiura

LambayequeLambayeque

La LibertadLa Libertad

ncashncash

LimaLima

IcaIca

ArequipaArequipa

MoqueguaMoquegua

TacnaTacna

PunoPuno

CuscoCusco

ApurmacApurmac

HuancavelicaHuancavelica

Madre de Dios

Madre de Dios

UcayaliUcayali

AyacuchoAyacucho

JunnJunn

PascoPasco

San MartnSan Martn

HunucoHunuco

LoretoLoreto

CajamarcaCajamarca

AmazonasAmazonas

Total Active Scholarship Holders20,866

KEY

Districts without coverage -287 (15.55%)

Districts with coverage -1,559 (84.45%)

Source: Pronabec, 2014





37

NU

MB

ER

OF S

CH

OLA

RSH

IP H

OLD

ER

S O

F T

HE P

RESID

EN

T O

F T

HE R

EP

UB

LIC

SC

HO

LAR

SH

IP

Cou

ntry

Sch

olar

ship

Hol

ider

s

Spa

in450

Arg

enti

na197

Chi

le109

Aus

tral

108

Mex

ico

42

Uni

ted

Kin

gdom

14

Bra

zil

26

US

A12

Fran

ce09

Col

ombi

a09

Hol

land

4

Ital

y2

Can

ada

2

Ger

man

y1

TO

TAL

985

Can

ada

2U

nite

dKin

gdom

14

Fran

ce09

Spa

in450

Ital

y2

Aus

tral

108

Ger

man

y1

Hol

land

2

US

A12

Mx

ico

42

Col

ombi

a09

Bra

zil

26

Chi

le109 Arg

enti

na197

Source: PRONABEC Postgraduate Office, 2014





38

PRESIDENT OF THE REPUBLIC SCHOLARSHIPCOUNTRY AND EDUCATIONAL INSTITUTION

COUNTRY AWARDED EDUCATIONAL INSTITUTION Nro.

GERMANY 1 GOETHE UNIVERSITY FRANKFURT1

CATLICA DE ARGENTINA 17

AUSTRAL DE ARGENTINA 36

UNIVERSIDAD DE BUENOS AIRES 144

AUSTRALIAN NATIONAL UNIVERSITY 1

CURTIN UNIVERSITY 9

DEAKIN UNIVERSITY 7

GRIFFITH UNIVERSITY 2

JAMES COOK UNIVERSITY 2

LA TROBE UNIVERSITY 11

MACQUARIE UNIVERSITY 18

MONASH UNIVERSITY 1

QUEENSLAND UNIVERSITY OF TECHNOLOGY 10

UNIVERSITY COLLEGE OF LONDON-SEDE AUSTRALIA 1

UNIVERSITY OF ADELAIDE 1

UNIVERSITY OF MELBOURNE 9

UNIVERSITY OF NEW SOUTH WALES 13

UNIVERSITY OF QUEEENSLAND 17

UNIVERSITY OF SOUTH AUSTRALIA 2

UNIVERSITY OF WESTERN AUSTRALIA 3

UNIVERSITY OF TECHNOLOGY, SYDNEY 1

UNIVERSITY OF WOLLOGONG 1

UNIVERSIDAD DE CAMPIAS 2

UNIVERSIDAD DE SAO PAULO 24

UNIVERSITY OF BRITISH COLUMBIA 1

UNIVERSITY OF MONTREAL 1

UNIVERSIDAD CATLICA DE CHILE 41

UNIVERSIDAD DE CHILE 68

PONTIFICIA UNIVERSIDAD JAVERIANA 1

UNIVERSIDAD DE LOS ANDES DE COLOMBIA 4

UNIVERSIDAD NACIONAL DE COLOMBIA 4

UNIVERSIDAD AUTNOMA DE BARCELONA 43

UNIVERSIDAD AUTNOMA DE MADRID 35

UNIVERSIDAD CARLOS III DE MADRID 13

UNIVERSIDAD COMPLUTENSE DE MADRID 44

UNIVERSIDAD DE BARCELONA 74

UNIVERSIDAD DE GRANADA 2

UNIVERSIDAD DE NAVARRA 50

UNIVERSIDAD DE ROVIRA I VIRGILI 2

UNIVERSIDAD DE VALENCIA 37

UNIVERSIDAD DE VIGO 43

UNIVERSIDAD POLITCNICA DE CATALUA 28

UNIVERSIDAD POLITCNICA DE MADRID 7

UNIVERSIDAD POLITCNICA DE VALENCIA 70

UNIVERSIDAD POMPEU FABRA 2

450

CANADA 2

COLOMBIA 9

CHILE

BRAZIL

SPAIN

26

109

AUSTRALIA 109

ARGENTINA 197





39

COUNTRY AWARDED EDUCATIONAL INSTITUTION Nro.

NEW YORK UNIVERSITY

STANFORD UNIVERSITY

UNIVERSITY OF CALIFORNIA, DAVIS

JOHNS HOPKINS UNIVERSITY

CARNEGIE MELLON UNIVERSITY

COLUMBIA UNIVERSITY

GEORGETOWN UNIVERSITY

HARVARD UNIVERSITY

UNIVERSITY OF PENNSYLVANIA

TEXAS A&M UNIVERSITY - COLLEGE STATION

AIX MARSEILLE UNIVERSITY

SCIENCES PO PARIS

PIERRE AND MARIE CURIE UNIVERSITY - PARIS 6

UNIVERSITE PAUL SABATIER TOULOUSE

UNIVERSITE PARIS 1 PANTHEON-SORBONNE

UNIVERSITE DE BORDEAUX 1

UNIVERSITY OF AMSTERDAM

UNIVERSITY OF WAGENINGEN

UNIVERSITY LEIDEN

UNIVERSITY OF PISA

POLYTECHNIC UNIVERSITY OF MILAN

MEXICO 42 TECNOLGICO DE MONTERREY

HERIOT WATT UNIVERSITY

UNIVERSITY COLLEGE OF LONDON

UNIVERSITY OF LIVERPOOL

THE UNIVERSITY OF MANCHESTER

LONDON SCHOOL OF ECONOMICS AND POLITICALSCIENCE (LSE)

UNIVERSITY COLLEGE OF LONDON

UNIVERSITY OF PORTSMOUTH

TOTAL 985

1

3

1

1

1

1

1

1

1

1

1

1

2

2

3

0

1

1

2

1

1

42

1

4

2

2

2

1

1

985

ITALY 2

UNITEDSTATES

12

UNITEDKINGDOM

9FRANCE

HOLLAND 4

TOTAL

13

Source: Pronabec/Postgraduate Scholarship Office-2014

CHAPTER 2:CONTEXT OF HIGHER EDUCATION

IN LATIN AMERICA AND PERU

CONTEXT OF HIGHER EDUCATION IN LATIN AMERICA AND PERU




43

2 2.1 ACCESS TO HIGHER EDUCATION IN LATIN AMERICA The Final Declaration of the World Conference on Higher Education 2009 (UNESCO 2009) argues that the expanding access to higher education has become one of the priority objectives of the member states; however, there are still marked inequalities that must be faced by the governments in order to promote access and inclusion of the populations at all levels.

As a matter of fact, (OREALC / UNESCO, 2013) made a projection of gross enrollment rate in higher education for Latin America and the Caribbean (1998 - 2015); the results show that the rate of enrollment in higher education in the countries of the region increased about 20 percentage points between 1998 and 2010, from 20% to 41% over that period; moreover, it was estimated that the gross enrollment rate in higher education regional average would increase reaching 51% by 2015.

GRAPH N 05PROJECTION OF THE GROSS ENROLLMENT RATE IN HIGHER EDUCATION

FOR LATIN AMERICA AND THE CARIBBEAN (1998 - 2015)

Source: OREALC/UNESCO - 2013

60

50

40

30

20

10

0

Gross Enrollment Rate in Higher Education ISCED 5 and 6 Projected

Gross Enrollment Rate in Higher Education ISCED 5 and 6 Observed

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

2 This rate represents the percentage of population enrolled at any higher education institution at ISCED 5 and 6 levels that are appropriate levels for undergraduate and postgraduate level in the International Standard Classification of Education ISCED.




44

From the graph shown below, it is deduced that the average of the gross enrollment rate in higher education in countries such as Argentina, Uruguay, Chile, Mexico, Colombia, Venezuela, Panama, Dominican Republic, Peru, Paraguay and El Salvador varies by 37%, which reflects that Peru (35%) is within the average rate as countries like Dominican Republic (35%) and Colombia (32%), overtaking Mexico (27%), Paraguay (26) and El Salvador (21%), those with lower rates. On the other hand, countries such as Argentina (67%) and Uruguay (64%) lead in terms of coverage and nearly double the gross enrollment rate in higher education in Peru.

GRAPH N06GROSS ENROLLMENT RATE IN HIGHER EDUCATION IN LATIN AMERICA

2009(Percentage)

67%

80%

70%

60%

50%

40%

30%

20%

10%

0%

64%

52% 52%

Arg

enti

na

Uru

guay

Chi

le

Vene

zuel

a

Pana

ma

Dom

inic

an R

epub

lic

Per

u

Col

ombi

a

Mex

ico

Para

guay

El S

alva

dor

45%35% 35%

32%27%

26%21%

Source: UNESCO, 2009

2.2 GAPS IN ACCESS, TERM AND COMPLETION IN HIGHER EDUCATION IN PERU

In Peru, the gaps in access, term and completion of higher education are significant, being the economic factor the main element of inequity and inequality that affects, with marked incidence, sectors of poverty and extreme poverty in our country.



45

Educational level achieved by poverty status in Peru

In our country, according to the National Household Survey (ENAHO) 2012 2013, only 2.8% of the extreme poor achieved a higher education in 2012 and 2% did so in 2013; while 37% of non-poor individuals achieved higher education in 2012 and 32% did so in 2013 (INEI Peru, 2013). As you can see, there are wide gaps between the two populations, which brings as consequences that individuals with poverty and extreme poverty condition do not have access to tertiary level and, therefore, the highest degree of education focuses primarily on basic education levels.

GRAPH N 07PERU: EDUCATIONAL LEVEL ACHIEVED BY THE POPULATION AGED 15 YEARS

AND OVER ACCORDING TO POVERTY CONDITION 2012 2013(Percentage Distribution)

67%

PrimarySchool

SecondarySchool

SecondarySchool

HigherStudies

Period 2012 Period 2013

PrimarySchool

SecondarySchool

HigherStudies

HigherStudies

PrimarySchool

68%

80%

80%

80%

80%

0%

30% 30%

28% 2%

49%43% 44%

48%

8%9%

20%21%

44%47%

37%32%

POOREXTREME POOR NON-POOR

Source: INEI National Household Survey 2012 2013

Reasons for not attending higher education

The reasons or causes of why people do not attend a higher education, may be due to various factors economic, cultural, ethnic, etc. - however, empirical evidence shows us that the reasons for non-attendance are mostly explained by factors of economic nature (INEI, 2011).




46

GRAPH N 08PERU: REASONS FOR NOT PURSUING A HIGHER EDUCATION FROM 15 29

YEARS OF AGE (Percentage)

37.7%

24.8%

6.4%

6.0%

5.4%

3.9%

3.2%

2.3%

2.1%

6.6%

1.6%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Economic problems

PERIOD 2011

Because of work

Attendee of a university-preparatory school

Housework

He/she is satisfied with what they learned

Because of pregnancy

Family problems

There is no interest or pleasure for studying

Studying in a regular education center

Other/1

It does not specify

1/ includes health problems and distance with the study centerSource: INEI- First National Survey of Peruvian Youth, 2011.

In fact, according to the National Youth Survey of 2011, young Peruvians said that the main reasons why they did not attend a higher education were related to economic problems 37.7% and 24.8% because of work (INEI, 2011). On the other hand, according to a research conducted by the Consulting Flanking Marketing in 2013, up to 30% of students enrolled in Peruvian universities and institutes dropout in the first semester (Gestin, 2013). In the same research it was determined that the main reason for dropouts would be linked to economic factors (29%), followed by lack of vocation (26%), disappointment of the chosen career (20%), poor quality teaching (15 %), poor organization and lack of concern by the students (10%).

Years of schooling of the Peruvian population

An important variable to measure educational attainment in a country is the rate average of education years of the population, which is estimated by analyzing the population aged 25 years and over; this indicator shows the reached educational capital and, therefore, a lower average reflects the inequality of access to this service and evidences the structural discrimination that affects certain sectors of



47

the population. The importance of this variable is in relationship between educational progress and opportunities of getting out of poverty, which has been widely studied. For example, (Yamada, Returns to higher education in the labor market: is it worth the effort ?, 2007) and (Yamada & Castro, Poverty, Inequality and Social Policies in Peru: As Poor As It Gets, 2012) estimated that in Peru the probability of being poor for an adult is always decreasing as they accumulate more years of education.

GRAPH N09PERU: AVERAGE AMOUNT OF YEARS OF EDUCATION ACHIEVED BY

POPULATION AGED 25 YEARS AND OVER, 2002 - 2012

Source: INEI, January 2014

10

9.8

9.6

9.4

9.29.2

9.3

9.4

9.4

9.59.6

9.7

9.7

9.8

9.8

9.9

9

8.82002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

According to statistical data (INEI, 2014), the average schooling years of the population aged 25 years and over in Peru analyzed in the temporary series from 2002 to 2012 increased from 9.2 years to 9.9 years from 2002 to 2012. Despite this sustained growth, by analyzing the behavior of the variable according to geographical area, we note that large gaps persist, in fact, the population of urban areas reaches more years of schooling (10.7 years) compared to those who live in rural areas (6.7 years) (INEI Peru, 2013).




48

GRAPH N 10PERU: AVERAGE AMOUNT OF YEARS OF EDUCATION ACHIEVED BY

URBAN AND RURAL POPULATION AGED 25 YEARS AND OVER, 2002 - 2012

Source: INEI - National Household Survey (ENAHO) 2002 2012

12

10

8

6

42002 2003 2004 2005

Urban population Rural population

2006 2007 2008 2009 2010 2011 2012

On the other hand, by analyzing the variable years of schooling depending of the regional scope in the year 2012, we obverse that the highest averages are presented in the regions of Lima (11.1 years), Callao (10.8 years), Arequipa (10.6 years), Tacna (10.6 years), Ica (10.7 years) and Moquegua (10.5 years). While the regions with lower average of education years are: Huancavelica (7.4 years), Amazonas (7.8 years), Cajamarca (7.8 years) and Hunuco (8.3 years); it is noteworthy that these regions are, at the same time, the regions with the highest poverty rates (INEI, 2014).



49

GRAPH N 11PERU AVERAGE AMOUNT OF YEARS OF EDUCATION BY REGION 2012

POPULATION AGED 25 YEARS AND OVER

Tumbes9.6

Tumbes9.6

Piura8.9

Piura8.9

Lambayeque9.5

Lambayeque9.5

La Libertad9.4

La Libertad9.4

ncash9.5

ncash9.5

Lima11.1Lima11.1

Callao10.8Callao10.8

Ica10.7Ica

10.7

Arequipa10.6

Arequipa10.6

Moquegua10.5

Moquegua10.5

Tacna10.6Tacna10.6

Puno9.1Puno9.1

Cusco9.4

Cusco9.4

Apurmac8.3

Apurmac8.3

Huancavelica7.4

Huancavelica7.4

Madre de Dios9.8

Madre de Dios9.8

Ucayali9.2

Ucayali9.2

Ayacucho8.6

Ayacucho8.6

Junn9.6

Junn9.6

Pasco9.5

Pasco9.5

San Martn8.6

San Martn8.6

Hunuco8.3

Hunuco8.3

Loreto8.9

Loreto8.9

Cajamarca7.8

Cajamarca7.8

Amazonas7.8

Amazonas7.8

High

Middle

Low

Source: INEI - National Household Survey (ENAHO) 2002 2012




50

Completion of higher education: Comparative analysis on the world

Among the various studies that have addressed the issue of completion and drop outs in higher education, we find the studies of Tinto (1989)3, who estimated that for the US case, the dropout rate about 45% - had remained practically constant throughout the twentieth century, regardless of major changes in the education system.

On the other hand, in a research developed by the Organization for Economic Development and Cooperation - (OECD, 2013) where dropouts in higher education for developed countries is analyzed, it is observed that the problem of dropouts at the tertiary level can also affect advanced economies; for example, while countries like Japan, Australia and Denmark have a dropout rate lower than 20%, in developed countries like the US the dropouts at a higher education level is about 47%; a similar situation is observed in Sweden and Hungary.

GRAPH N 12PERCENTAGE OF STUDENTS THAT ACCESS AND COMPLETE

HIGHER EDUCATION WITH AT LEAST ONE MAJOR / BY GENDER(2011 - OECD)

100

Total Men Women

90

80

70

60

50

40

30

20

10

0

Japa

n

Aus

tral

ia

Den

mar

k

Fran

ce

Spa

in

Finl

and

Ger

man

y

Turk

ey

Bel

gium

Net

herl

ands

Cze

ch R

epub

lic

Uni

ted

Kin

gdom

Slo

vaki

a

Ave

rage

OEC

D

Por

tuga

l

Isra

el

Mex

ico

Aus

tral

ia

Pol

and

New

Zea

land

Nor

way

Sw

eden

Uni

ted

Sta

tes

Hun

gary

Source: OECD -013

3 Tintos data (1989) are derived from a rudimentary form of measurement: the calculation is made from apparent cohorts (Martinez, 2001), i.e., the number of graduates is compared in one year with the first ingress five years before assuming that it takes on average five years to complete a career.



51

For the specific case of Latin America, the Inter-University Center for Development working in partnership with the International Institute for Higher Education and the Caribbean of UNESCO published in 2006 the study University Dropouts and Repetition in Latin America, in which several variables are analyzed that are related to the dropouts and repetition in the universities of the region. It is held that the average rate of effective qualification for the countries of Latin America was approximately 43% assuming that the repetition rate is similar to the increase by leaving behind graduates, because of that the dropout rate would be in the order of 57%4 . Roughly, with the exception of Cuba, that shows one of the lowest dropout rates in the world (25%), all other countries in Latin America show dropouts rates ranging between 76% and 49%

GRAPH N 13ACADEMIC EFFICIENCY RATE IN LATIN AMERICA (2006)

27%

80%

70%

60%

50%

40%

30%

20%

10%

0%

41% 47%49%

Bol

ivia

Bra

zil

Chi

le

Col

ombi

a

Cub

a

Hon

dura

s

Dom

inic

an R

epub

lic

Uru

guay

Vene

zuel

a

Ave

rage

75%

51%

24%28%

48%43%

Source: CINDA-UNESCO, 2006

4 Inter-university Center for Development, International Institute for Higher Education and the Caribbean, University dropouts and Repetition in Latin America (2006). On page 22 of that document is stated (...) that in a way of proxy indicator could be considered graduates for the cohort of ingress in time period stipulated in each career, which implies that the dropout rate would be around 57%, assuming that the repetition rate is similar to the increase by left behind graduates




52

Completion and dropouts in higher education: Peruvian case5

The efficiency of education can be measured by indicators such as completion, graduation, professional degree rates and - in contrast - abandonment and dropouts rates; as discussed below, these rates continue showing not much encouraging results, which seem to indicate a low efficiency of the Peruvian education system at the tertiary level.

There are in Peru few studies and research that address the problem of completion and dropouts in higher education. An approach to the subject can be found in the Report on the System of Higher University Education of Peru (2009), prepared by the ALFA program of the European Union. Such report argues that the average rate of completion of Peruvian universities is about 43%, therefore, it can be concluded that the dropout rate is about 57%.

The problem of the high dropout rates in education in the country causes a negative effect on the family economy and causes huge losses to the Nation. According to Plascencia (2011), in our country it is estimated that each year about 40 to 50 thousand young people abandon their university studies, generating no less than one hundred million dollars loss. Also, dropouts have wide differences by type of IES; for example, the total number of dropouts: 70% belongs to private university students and 30% to students of state universities

(Ramirez, 2009) based on a survey applied to 677 students from the National University of San Marcos, said that the main cause for the university dropouts was the economic problem (44%), followed by lack of professional career vocation (31%), disappointed expectations in training (15%) and low academic achievement (8%). Another important fact is that 73% of teachers think that the economic cause was the main cause of dropouts.

2.3 RELEVANCE AND QUALITY OF HIGHER EDUCATION IN PERU

As already mentioned, both the quantity and the quality of higher education and training of the population have a positive impact on levels of prosperity (Barro & McCleary, 2002) (Krueger & Lindahl, 2001). On the other hand, the relevance (UNESCO, 1998) of higher education refers to the response ability that education has before the demands of the economy and the productive sector; considering the megatrends and global challenges of the international environment. In this context, the instability or imbalance between supply and demand in the labor market could be explained, in large part, due to low relevance of the training process.

The dropoutrate in Peru

is about 57% in Higher

EducationThe percentage of the dropouts rate has been extracted from the Report on the System of Higher Education of Peru, 2009 carried out by the ALFA Project, sponsored by the European Union, which argues that completion rates in higher education in Peru is 43%.

5 Source: Map of the Human Capital Budget prepared by Per Econmico, October 2013.



53

Problems in the Peruvian labor marketOne of the aims of education is to provide the economies of the workforce - both in quantity and quality according to the demands of the productive sector. In Peru, according to the Map of Human Capital (Per Econmico, 2013) imbalances in the labor market are observed; these imbalances can be linked to three major problems:

a) Supply and demand do not match each other, although supply and demand are growing, there is still no balance between them, i.e. labor supply does not meet demand needs. Regarding the first problem, a shortage of professionals in careers related to gastronomy, agriculture, medicine, mechanics and engineering is observed. In fact, in said report it is considered that more than 860,000 professionals are needed in various productive sectors of the country. Due to the shortage of professionals, qualified workers and specialized technicians in some sectors, especially those who invigorate economy and mining, qualified and specialized technical work are now imported.

Additionally, as we can see in graph No. 13, there are marked differences between the shortage or excess of professionals by geographical area; in general, Lima, Callao and Moquegua are regions that have a shortage of professionals, technicians and workers; while in other regions of the country there is an excess of supply. (Per Econmico, 2013). It is noteworthy that, with respect to the shortage and supply of professionals and technicians at the regional level, these show a different behavior. Then the supply or shortage of professionals for a career or certain area depends on the analyzed region.

b) The quality of education does not always meet the requirements that companies expect. This second problem is referred to the lack of skills and knowledge that are required by employers and that graduates should possess. According to the report, the causes of this problem are related to factors such as: a) Outdated educational method that educational institutions at tertiary level use; and b) Shortage of suitable infrastructure or quality in order to complement the learning. These events cause the professionals who graduate not to meet the requirements of employers. On the other hand, the diversity of criteria for accreditation and qualification exams does not really guarantee the educational level of the professional. (Per Econmico, 2013).

c) Lack of personal attributes of qualified professionals. It refers to a set of personal qualities, habits, attitudes and social virtues that make someone a good employee from the point of view of a potential employer.

The problem of training for the labor market in Peru has been addressed by various

More than 860,000 professionals are

needed invarious sectors of

the country

Source: Map of Human Capital carried out by Per Econmico published in October 2013




54

experts on the subject. For example, in a publication of Diario Gestin (10-25-2012), Jorge Antonio Rivera6 noted that in 2013 there was a shortage of three hundred thousand industrial technicians all over the country. The careers related to the petrochemical, fishing and mining are the ones with the highest demand for this occupational group. Diana Rake7 considered that due to the growth of the mining sector and the retirement of senior staff, between 2011 and 2013 there was a shortage of four hundred thousand jobs in that sector.

On the other hand, Otilio Chaparro8, in an interview for the newspaper Peru 21, argues that there is a huge shortage in the training of professionals for the construction sector, given that the sector needs annually over eighty thousand professionals throughout the country, however, it only generates forty thousand.

It can be concluded that the problems of professional and technical training unrelated to the needs and demands of short and medium term of the productive sectors of the country both in quantity and quality are not only causing serious problems and bottlenecks in the Peruvian and multinationals companies that operate in the country; but also affects the employability of generated human capital, decreasing job opportunities.

TECHNOLOGICAL CHANGES IN INDUSTRY

Companies require qualified and updated operators, technicians and professional both in new technologies and productive processes according to the specific task of these. This is because science and technology are rapidly advancing and the companies constantly modernize their productive structure, so that they require increasingly qualified and updated staff.

Analyzing the behavior of GDP between 2004 and 2013, we note that the Peruvian economy has grown at an average rate of 6.4% over the past ten years. Notably, even during the global financial crisis, Peru was one of the few countries of the world which achieved a positive growth.

The first half of 2014, Peru still has a high growth in the GDP based on year 2007 the Gross Domestic Product (GDP) of Peru grew by 4.8 percentage points by constant prices compared to its counterpart in the first half of 2013. This growth has been mainly driven by the greater economic dynamism that non-primary sectors are experiencing, being the sectors which experienced a greater growth: services (6.4%), construction (5.3%) and trade (5.2%). Meanwhile, the primary sectors that contributed more to GDP growth were the processing industry of primary resources (8.6%) and mining and hydrocarbons (4.7%).

6 Jorge Antonio Rivera current Director of the National Service for Training in Industrial Work SENATI. http://gestion.pe/empresas/existe-deficit-300000-tecnicos-industriales-peru-2050358

7 General Manager of Downing Teal. Newsletter Thursday Mining No. 114 of the Institute of Mining Engineers of Peru

8 Chief Executive Officer, SENCICO. http://peru21.pe/noticia/670261/hacen-falta-tecnicos-peru



55

GRAPH N 14 CONTRIBUTIONS OF THE ECONOMIC SECTOR TO THE GDP GROWTH IN

PERU (2004 2013, I QUARTER 2014)

5.0

6.3

7.5

8.59.1

10

8

1.0

8.5

Jaime Saavedra Chanduví -...

Documents

Transcript of Jaime Saavedra Chanduví -...