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Skills, not just diplomas Presentation of findings from forthcoming regional flagship report

Skills, not just diplomas Presentation of findings from forthcoming regional flagship report. Mamta Murthi May 12, 2010. Future growth requires skills. Why skills? Recent growth masked many shortcomings of regional economies – postponed reforms

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Skills, not just diplomas Presentation of findings from forthcoming regional flagship report

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  1. Skills, not just diplomasPresentation of findings from forthcoming regional flagship report MamtaMurthi May 12, 2010

  2. Future growth requires skills • Why skills? • Recent growth masked many shortcomings of regional economies – postponed reforms • Future growth will rely much more on improving competitiveness • Improving labor productivity requires skills

  3. Messages and structure of presentation • What skills are we talking about? • Broad set of skills: cognitive, social and life skills • How well are education and training systems doing? • Expanding access • Providing skills for all • What can countries do to improve? • Provide better information on quality of education • Relying more on incentives to steer sector

  4. Complex skills are needed and all workers need them Source: European Survey of Working Conditions 2005

  5. There is broad agreement on the skills needed to succeed in work and life Source: OECD (2005): Definition and Selection of Competencies (DeSeCo) Project

  6. Good news: more diplomas are being issued Source: World Bank Edstat

  7. But quality of lower secondary in ECA countries falls short OECD avg 1 year behind 2-3 years behind 3-4 years behind Math Reading Science Source: OECD PISA 2006

  8. Too many students do not have the ability to “read to learn” Source: OECD PISA 2006

  9. Higher education does not provide students with the right skills

  10. Fraud, corruption and unethical behavior – quality of diplomas? (*) Data for Kyrgyz Republic is a based on a slightly different question: students were asked if they had “personal experiences with corruption and bribery in their university”. Source: Heyneman, Stephen P. Kathryn H. Anderson, and NazymNuraliyeva (2007)

  11. Employers found “skills” to be a major constraint before the crisis Workers' skills had become a constraint on firm expansion by 2008. (percent of firms considering factor a 'major' or 'very severe' constraint) Source: Turmoil at Twenty, World Bank, 2009

  12. Quality assurance mechanisms are in their infancy

  13. Regulators find many degrees do not meet quality standards

  14. Let’s face it: very little is known about the good versus the less good • Unhealthy tendency to focus on excellence at the top rather than the quality achieved by all • What do we really know about the quality of tertiary education when it comes to creating skills? • Bologna is far away! • Which institutions are truly great at imparting skills to their students? • What happens to students after they graduate?

  15. In the dark……all individuals, institutions and systems look the same… But with a little light….

  16. In the dark……all individuals, institutions and systems look the same… But with a little light…. …important differences become apparent….

  17. Example of important unknown • There are around 35 HE institutions teaching economics in Kiev: 20 private and 15 public • Student’s perspective: which institution does a better job at teaching me the skills I need to succeed? (selectivity ≠ high quality teaching) • Employer’s perspective: which students outside of the prestigious institutions have skills? • Policy maker’s perspective: which institution is performing well? Which institution need sanctions/rewards/support?

  18. The distribution matters! Solid academic gains Significant academic gains Limited academic gains Dramatic academic gains & impact Academic growth of students 19

  19. What can policy makers do better? • Turn the lights on! • Measure, analyze, disseminate and use results for policy making • Different role for central policy makers: less micro-management and more focus on steering

  20. Turning the lights on! Tracer studies Quality of tertiary Quality of vocational education Quality of training Performance-informed budgeting Linking incentives to results

  21. Autonomy • Accountability Use information on results to steer • Financing • More autonomy in exchange for results • Use financing as an instrument: tie resources to results • Increasing accountability for results

  22. Steering involves a balancing act among three instruments

  23. Don’t rely on only one way to strengthen accountability • Accountability through accreditation and quality assurance… but this takes time! • Accountability through information and transparency: rankings, performance tables (e.g. CHE), tracer studies (e.g. the US and LAC) • Accountability through partnerships with civil society and students (e.g. Romania)

  24. Better use of sector’s resources is needed to pay for better quality

  25. The right policies can have a big impact Reform years

  26. How can the World Bank help creating skills for competitiveness? • For more information on report: contact Lars Sondergaard,Mamta Murthi or Andrei Markov lsondergaard@worldbank.org or mmurthi@worldbank.org • For technical support and/or fee based services to strengthen skills creation: contact Isak Froumin ifroumin@worldbank.org

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