1 / 9

SDC’s E+I and Skill Development

SDC’s E+I and Skill Development. Some remarks on costing, pricing and financing Skill Development. SDC’s approaches and key mid-term priorities for Skill Development. make Skill Development responsive to labour market developments.

loan
Download Presentation

SDC’s E+I and Skill Development

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. SDC’s E+I and Skill Development Some remarks on costing, pricing and financing Skill Development

  2. SDC’s approaches and key mid-term priorities for Skill Development make Skill Development responsive to labour market developments Cooperation between the state, private sectorand civil society costs &financing develop theskills, especiallyof poor people urbanand ruralareas Skill Developmentin rural areas linkingbasic educationand Skill Development constant exchange of experienceamong all stakeholders

  3. The purpose of costing • Deciding on resource allocation (human and others). • Justifying bids for external funding. • Strategic orientation of course programmes. • Knowing costs = prerequisite for proper pricing. • Assessing economic viability of Skill Development, a training provider’s programme or individual modules. • Determining fees for trainees. • Etc.

  4. Approaches to pricing • Cost-based pricing approaches: • Cost recovery or • Profit-making • Demand-based pricing approaches: • Deciding on the price on what is obtainable at the market, • Sponsor-determined pricing, • Strategic pricing approaches (e.g. market-penetration, politically motivated pricing)

  5. The challenges in costing and pricing Skill Development • Costing and pricing of training are often neglected or done “the amateurish way”. • Lack of easily applicable costing instruments suited for providers with little institutional capacity. • Training providers striving for institutional autonomy need to start this exercise with proper costing and pricing.

  6. Financing Skills Development: Who pays? government donors public interest businessorganizations communities trainee employer individual interest

  7. Fund raising mechanisms private • fees • in-house training • donor funding • etc. mixed • cooperative systems (e.g. apprenticeship) • government incen-tives to companies for training • matching grants • fees + subsidies • etc. public • taxes • levy systems • donor funding • etc.

  8. Fund allocation mechanisms • Input-oriented on the basis of costs for “production factors”. • Output-oriented on the basis of delivering an agreed product. • Tenders. • Market-oriented financing through voucher systems. • Subsidies aiming to push interests or a political agenda. • Etc.

  9. What E+I does in the areas of costing, pricing and financing Skill Development • Pursuing a holistic approach by combining issues of costing/pricing and fund raising and fund allocation. • Providing information, instruments (esp. cost calculation and pricing) and lessons learnt. • Ensuring that information is shared among all parties involved in costing/pricing and financing. • Advising in the decision-making processes at all levels. • Promoting costing and pricing as instruments for the pro-active management of training institutions.

More Related