A STUDY OF THE UKRAINIAN VOCATIONAL EDUCATION AND … · 2018. 6. 29. · VET and labour market issues. Individual employers and their associations contributed with the necessary

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A STUDY OF THE UKRAINIANVOCATIONAL EDUCATION ANDTRAINING SYSTEM ANDITS RELEVANCE TOLABOUR MARKET NEEDS

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THE EUROPEAN TRAINING FOUNDATION IS THEEUROPEAN UNION’S CENTRE OF EXPERTISESUPPORTING VOCATIONAL EDUCATION AND TRAININGREFORM IN THIRD COUNTRIES IN THE CONTEXT OFTHE EU EXTERNAL RELATIONS PROGRAMMES

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External Communication UnitEuropean Training FoundationVilla GualinoViale Settimio Severo 65I – 10133 TorinoT +39 011 630 2222F +39 011 630 2200E [email protected]

A STUDY OF THE UKRAINIANVOCATIONAL EDUCATION ANDTRAINING SYSTEM ANDITS RELEVANCE TOLABOUR MARKET NEEDS

Prepared by Galina Borisova, Søren Poulsen and Evelyn Viertel

ETF, December 2003

A great deal of additional information on theEuropean Union is available on the Internet.It can be accessed through the Europa server(http://europa.eu.int).

Cataloguing data can be found at the end ofthis publication.

Luxembourg: Office for Official Publications ofthe European Communities, 2004.

ISBN 92-9157-377-9

Reproduction is authorised, provided thesource is acknowledged.

Printed in Italy

ACKNOWLEDGEMENTS

This study was carried out in the first half of2003 by a team of experts, comprised ofGalina Borisova, Søren Poulsen andEvelyn Viertel, and supported by a numberof individuals and entities in Ukraine.

The vocational education and training(VET) department of the Ministry ofEducation and Science (MOES) offeredextensive help in providing information anddata on the VET system as well as sharingtheir views on areas where improvementsare needed. The frank and facilitating wayin which this assistance was offeredcontributed greatly to the team’s work. Wewish in particular to acknowledge thesupport received from the formerDeputy Minister of the MOES,Mr Vitaliy Tomashenko, whose personalinvolvement resulted in many fruitful schoolvisits and discussions. We were very sadto learn that Mr Tomashenko, a valuedcolleague, passed away following a caraccident in November.

Representatives from Parliament, thePresident’s administration, the Cabinet ofMinisters, the Ministry of Labour and SocialProtection, employment services, theMinistry of Agriculture, regional educationalauthorities, VET school directors and

teachers offered their valuable time andshowed the necessary patience inexplaining the situation and their views onVET and labour market issues.

Individual employers and their associationscontributed with the necessary informationand opinions from the point of view ofenterprises. This adds an importantelement to the analysis and understandingof how VET and enterprises are linked.

Thanks must also go to the people met andtalked to during the two VET events theteam attended. Their commitment toeducation and their willingness to discussthe future of the Ukrainian VET systemgave a broader understanding of the criticalissues currently being examined. For a listof individuals met and organisationsvisited, see annex D.

Without the logistical support of theNational Observatory of Ukraine it wouldnot have been possible to visit so manyinstitutions and talk with so many peoplewith an interest in VET. The Observatoryteam leader, Ms Olga Shcherbak, offeredan insight into the VET system, which wasextremely valuable.

3

TABLE OF CONTENTS

ACKNOWLEDGEMENTS 3

EXECUTIVE SUMMARY 7

1. SETTING THE SCENE 9

1.1 The socioeconomic situation 9

1.2 Labour market trends 14

2. DESCRIBING THE SYSTEM AND RECENT DEVELOPMENTS 21

2.1 Characteristics of the education system 21

2.2 The VET system 22

2.3 Continuing vocational training 24

3. ANALYSING THE SYSTEM 27

3.1 Recent VET system reform efforts 27

3.2 Specialisations and curricula in initial VET 29

3.3 Continuing vocational training policy and programmes 33

3.4 Vocational teachers and instructors at VET schools 35

3.5 VET planning (the state ordering system) 39

3.6 VET management 40

3.7 VET financing 42

3.8 Legal framework governing VET 47

4. CONCLUSIONS 51

4.1 The complexity of the Ukrainian VET system reform: system-wide andsystem-deep reforms 51

4.2 Findings and recommendations 52

ANNEXES 55

Annex A: Statistical information 56

Annex B: Synoptic outline of the vocational education and training system 59

Annex C: Ministry of Education and Science organigram 60

Annex D: Persons and organisations visited 61

REFERENCES 65

LIST OF ACRONYMS 69

5

EXECUTIVE SUMMARY

Following independence, Ukraineexperienced significant changes to itspolitic, economic and social fabric causedby the marked transition from acommunist-ruled society towards oneincreasingly framed by democracy andmarket economy.

The transition process has proven to be farmore complex and with higher social coststhan expected. Ten years of overalleconomic decline have seen theemergence of previously unknown socialphenomena such as poverty,unemployment and declining publicservice. Counter-balancing thesedevelopments, to a certain extent, shadoweconomy has become increasingly evidentboth in economic terms and as a source ofemployment opportunities. The politicalsituation since independence has beenmarked by power struggles between thePresident and the Verhovna Rada (theParliament) and the different fractions inthe Parliament, which has not facilitatedthe reform process.

Within the last three to four years, Ukrainehas experienced significant economicgrowth that has meant some relief for theemployment situation, a reinforcement ofthe shaping of the labour market andincreased diversity in the employmentneeds among enterprises.

Ukraine has inherited an education systemthat was tailored to support a plannedeconomy. A relatively high level of fundingreflected the importance given toeducation, which produced outstandingresults including high literacy, solid basicknowledge, a substantial core of skilledworkers and excellent scientific andtechnological achievements. After years ofneglect however, the vocational education

system is unable to maintain previousquality levels and what is more worrying,the system reform itself, which, witheconomic recovery, has become more andmore visible.

The government recently initiated aneducation reform process that includesredefined underlying education principlesand priorities for the entire sector.Relevance and improved service deliveryfrom pre-school through tertiary educationare key elements of the ‘National Doctrinefor the Development of Education inUkraine in the XXIst Century’ which isguiding the education reform process. Insupport to the Doctrine, the Ministry ofEducation and Science (MOES) hasdeveloped an implementation plancovering short and medium-termimplementation goals for meeting theobjectives of the Doctrine.

To facilitate the political discussion, theMOES compiled a report on the currentsituation regarding vocational educationand training (VET). The report focused onthe chronic under-funding of VET, whichhas a devastating effect on the quality oftraining, and on the need for a criticalreview of the very complex legal frameworkgoverning VET. The discussions illustratedthe increased attention paid to VET at thepolitical level. The Parliament has made aresolution on VET and the Cabinet ofMinisters (COM) is reviewing a draft lawamending the legal framework for VET inthe country. More concretely, the MOEShas, with the support of the ETF, initiated aprocess for the development of a newconcept on VET, which will be the basis forfuture reform efforts.

Our study confirms the MOES’s concernthat the VET system is unable to

7

sufficiently meet the needs of an emerginglabour market.

� The VET system is in need of a newfunding scheme. Public funding is notsufficient, therefore a scheme for directfinancial contribution from employersneeds to be found.

� The effectiveness of the resourcesallocated and used needs to beimproved.

� The state ordering system, whichdetermines the number of studentsentering the VET system, is unable totap the need of the emerging labourmarket.

� Management of the VET system is toocentralised which is a barrier to makingthe system relevant to localdevelopments.

� VET systems do not sufficiently coincidewith the needs of the labour market,which increasingly is demanding aworkforce with higher qualificationsand/or competencies. Although the

system has gained relevant experiencein standard and curriculum developmentthrough donor projects, measures needto be taken to pool these resources andto institutionalise processes that canfacilitate employers’ involvement.

� Teachers/instructors do not have thenecessary competences to meet theneed for new pedagogical teachingmethods and new technical skillsrequirements. Training facilities andequipment are outdated.

� Continuing vocational training (CVT)cannot meet the growing needs fortraining both in terms of quantity andquality.

Increased attention to reforming theUkraine’s VET system is also timely giventhe fact that, from 2004, it will be amongthe new neighbours of the European Union.This will have possible implications for thecountry’s social and economicdevelopment in which VET is so firmlyembedded.

8

A STUDY OF THE UKRAINIAN VOCATIONAL EDUCATION AND TRAINING SYSTEMAND ITS RELEVANCE TO LABOUR MARKET NEEDS

1. SETTING THE SCENE

1.1 THE SOCIOECONOMICSITUATION

Since regaining independence on24 August 19911, Ukraine has experiencedunstable political and economicdevelopment, which has added greatly tothe challenge of building a modern socialfabric based on democracy and marketeconomy principles.

The results of the initiatives taken toaddress the challenges facing apost-Soviet Ukraine can only be said to bedisappointing. A decade of negativeeconomic growth has naturally hadtremendous social consequences, with aquarter of Ukrainians still living in poverty inearly 2000, a situation that is likely to haveimproved slightly since then2. Despite the

social consequences, Ukrainians aresupportive of the continuing transition to amarket economy. In 1994 a surveysuggested that 43% of Ukrainianssupported private business development,while 31% had a negative view of privateenterprise. In 2001 the support hadincreased to 52%, with 23% still againstprivate sector development (ICPS 2002).The positive economic trends experiencedin 1999 and 2000 are likely to have madeUkrainians more positive about thesuccess of market economy.

The Ukraine’s initial attempts to maintain acentrally planned economic policy led, inlate 1993, to an economic crisis that almostresulted in hyperinflation. In 1994 GDPdropped by 23% and industrial output by28%. The near-collapse of the formal

9

1

1 The Ukrainian Republic was proclaimed on 22 November 1917 and became a part of the USSR on30 December 1922. Immediately after the failed coup against former Soviet president Mikhail Gorbachev,Ukraine declared its sovereignty. On 24 August 1991 Parliament declared Ukraine independent. In areferendum held on 1 December 1991, 84% of eligible voters took part and over 90% supportedindependence. The Commonwealth of Independent States (CIS) was created on 8 December 1991 and theUSSR was officially dissolved on 17 December 1991.

2 The World Bank estimates, based on a survey covering the first three-quarters of 1999, that 27% of thepopulation is living in poverty and that 18% is living in extreme poverty (World Bank, 2000). This is animprovement on the figures for 1995, which showed that 31% of the population was living in poverty (WorldBank, 2002). According to Ukraine: Common Country Assessment (UN, 2001), the situation has improvedfurther in 2000. Different definitions might influence the comparison between data, although this cannotexplain away the fact that many Ukrainians are living in poverty.

economy resulted in an even greaterdecline in public revenue, stretching publicresources for public services, which had adevastating effect on normal service levels.The hesitant progress towards economicreforms has made the Ukrainian transitionone of the most prolonged of the NewIndependent States (NIS), as theUkrainians have endured over 10 years ofnegative economic output3.

As table 1 demonstrates, it was not untilthe end of the 1990s that the economy wasrecovering to such an extent that it startedto show figures indicating a sustainedeconomic recovery. Over the last threeyears, Ukraine has had a high level ofeconomic growth of almost 6.5% per yearon average.

Recent very positive figures show that theeconomy continues to recover. In the firstquarter of 2003 GDP improved by 7.5%, atrend which is likely to make the authoritiesadjust, upwards, their GDP prediction for2003-04 (Institute for Economic Researchand Policy Construction, 2003; and

Dansk-Ukrainsk Press Service, 2003). Onthe other hand, last year’s harvest wasvery good, allowing Ukraine to export largeamounts of grain, while the 2003 harvest isexpected to be poor, which will have anegative influence on the overall economicperformance4.

The positive economic developmentsshould be viewed in conjunction with theslow progress towards privatisation sinceindependence. Although privatisation hasbeen progressing at a slow pace, privatisedenterprises have contributed significantly toindustrial production, especially since theend of the 1990s. Privatised enterprises’share of industrial production increasedfrom 51.1% in 1997 to 58.3% in 2000,which is likely to be the critical mass whichcan allow restructuring, economic progressand improved employment opportunities(UEPLAC, 2001). Many of theseenterprises are SMEs that are establishedand showing growth in all sectors. Most ofthe SMEs were established within the pastthree to five years, often as a result of theprivatisation of larger industries5.

10


15

20

25

30

35

40

45

1998 1999 2000 2001 2002 2003

%

Agriculture Industry Service

Figure 1: GDP by sector – 1998-2003 (%)

Note: Figures for 2003 are estimates.

Source:The Economist, EIU viewswire, Economist Intelligence Unit, 2 August 2002 (www.viewswire.com).

3 In Ukraine real per capita GDP fell by 62% between 1989 and 1998. Only Georgia and Tajikistan had agreater decline in GDP, with 67% and 64% respectively (Unicef, 2002).

4 The poor harvest is likely to set off additional internal discussion on agricultural policy issues such asprivatisation and pricing. The price of grain influences the price of bread, and, consequently, the situation oflow-income families.

5 It is relevant to make a distinction between privatised and new private enterprises. Many privatisedenterprises are not necessarily progressing simply because they are privatised. New private enterprises areenterprises that were established recently, and these are showing a better growth potential.

Tab

le1:

Ukra

ine

basic

eco

no

mic

ind

icato

rs–

1990-2

003

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

RealG

DP

%ch

anges

ove

rth

esa

me

period

ofth

epre

vious

year*

-4.0

-8.7

-9.9

-14.2

-22.9

-12.2

-10.0

-3.0

-1.9

-0.2

5.8

9.0

4.6

***

5.3

****

Consu

mer

price

infla

tion

%**

30.8

47.5

13.2

9.1

2.9

0.8

1.6

1.5

1.9

0.5

0.9

***

Regis

tere

dunem

plo

yment%

**0.3

0.2

90.3

50.3

60.5

31.4

92.7

44.3

05.4

05.3

14.5

33.8

***

Sourc

e:

*U

kra

ine

Econom

icT

rends,Q

uart

erly,M

arc

h2000

and

Decem

ber

2001

Issues,U

EP

LA

C.

**U

kra

ine

Econom

icT

rends,Q

uart

erly,D

ecem

ber

2001

Issue,U

EP

LA

C;S

tatistics

of

Ukra

ine’s

Econom

y,In

stitu

tefo

rE

conom

icR

esearc

hand

Polic

yC

onsultin

g;and

Quart

erly

Pre

dic

tions,#19,A

pril2002

and

#22,firs

tquart

er

2003,IC

PS

.

***

Month

lyE

conom

icM

onitoring

Ukra

ine

No

4,A

pril2003,In

stitu

tefo

rE

conom

icR

eseach

and

Polic

yC

onsultin

g;and

New

sle

tter

No

165,11

Novem

ber

2001,IC

PS

.

****

Month

lyE

conom

icM

onitor

Ukra

ine

No

10,O

cto

ber

2003,In

stitu

tefo

rE

conom

icR

eseach

and

Polic

yC

onsultin

g.

11


Comparisons between the main economicsectors in terms of contribution to the GDP(figure 1) show that since 2000 industryhas become the dominant sector. Theoverall economic recovery can be creditedto positive growth in all sectors. All sectorsexcept construction are showing the samepattern. Within the industrial sector it hasbeen machine building, lumber processingand the food processing industry inparticular that have driven the sector (May2002 to May 2003). Despite similar growthpatterns, growth rates have been quitediverse (figure 2). In such a period (1998 to2003) of relatively rapid economicchanges, overall growth andtransition-related issues have been difficultto assess6. What seems certain is thattransition processes in the economy, suchas privatisation, the speed ofmodernisation, improved technology leveland managerial capacities, varied betweenand within sectors.

During the central planning period,enterprises were locked together into fixedsupplier and sales relationships (production

chains) for both inputs and outputs, so thatenterprises did not need marketinformation or marketing capacities. Theseinstitutionalised production chains, whichwere a feature of all the Soviet republics,totally collapsed after independence, andthis naturally left a vacuum that has yet tobe filled by market economy principles7.As well as being a traditional economicindicator, Ukraine’s foreign trade cantherefore be seen as an indicator of howwell the restructuring of the economy isprogressing in terms of such issues asintegration into the world market,market-oriented production processes,higher technology levels, increased qualityand improved management, and of theeconomic transition policy in general.

In the late 1990s the Ukrainian balance ofpayment improved thanks to a slightincrease in exports to European and othernon-former Soviet States, which amongother things is a result of devaluation andgreater product diversity. Although tradefigures can be ambiguous, improvementsin trade cannot be the result of the

12


-10

-5

0

5

10

15

20

25

1997 1998 1999 2000 2001 2002 2003 July

%

Agriculture Industry Construction Trade Transport GDP

Figure 2: Growth of real GDP by sector – 1997-2003 (% year-on-year)

Note: Figures for construction, trade and transport are forecasts for the entire year.

Source: ‘Macroeconomic Forecast Ukraine’ No 1, Institute for Economic Research and Policy Consulting, October

2002; and ‘Economic Statistics’, Issue No 33, International Centre for Policy Studies, July 2003.

6 The difficulty that economists have in explaining overall economic developments in the Ukrainian economy isdiscussed in ‘Why has Ukraine Returned to Economic Growth?’ (Åslund, 2002). Macroeconomic forecastsmade in late 2002 downgraded expectations for growth in 2003 to be lower than 2002, or predicted only amoderate increase in growth. Half a year later, predictions for 2003 were for a significantly higher growth ratethan in 2002 (see for example ICPS, 2002; or Institute for Economic Research and Policy Consulting, 2002).

7 The collapse of production chains cannot explain a lasting decline in the overall economic performance, sinceenterprises are likely to develop new supply and demand relationships.

devaluation of the hryvnia alone, but arealso a positive effect of the transitionpolicy. Again, differences between andwithin sectors can be related to their abilityto transform8.

The Ukrainian economy is still closelylinked to the Russian economy, making itvulnerable to developments in Russia.Although progress has been made,incomplete structural transformationbetween and within sectors and with regardto ownership, a weak banking system, andlegal and bureaucratic uncertaintiesregarding foreign investments are barriersthat are hampering progress. Theeconomic growth over the past three yearsseems to have been possible because ofthe utilisation of idle industrial capacities.Growth among more innovative enterprisesalso needs to become even more visible inorder to sustain the positive trends.

In Ukraine, as in many of the NIS, theshadow economy is considerable: it isestimated to constitute some 30 to 50% oftotal economic activities in the country(Mel’ota and Gregory, 2001; and WorldBank, 1997)9. In addition, analysis oftransition countries suggests that theshadow economy is particularly large inUkraine, only second to that of Georgia,and that, despite political measures toeradicate it, it appears to have beengrowing in terms of economic importancesince 1993 (Åslund, 2002; Johnson,Kaufmann and Shleifer, 1997; Johnson andKaufmann, 2001; and Mel’ota and Gregory,2001).

Estimates indicate that, if the shadoweconomy is added to the GDP, the declineof 67% from 1990 to 1999 is reduced to41% (Mel’ota and Gregory, 2001)10.Because such a large proportion of thetotal economic activities are concealedfrom official registration, and because theproportion will remain large for theforeseeable future, it will influence thefinancial capacities of the state for years to

come and remain a barrier to economicdevelopment.

Prime Minister Viktor Yanukovychannounced the government's policy foraddressing the economic challenges. Thegovernment will, in its economic policy,give priority to Ukraine’s highly competitiveindustries, such as aerospace andengine-building, consumer goods, transportand pipelines, biotechnology, defence,machine building, electrical engineeringand information technology, andagriculture. The measures to be employedinclude tax and pension reforms,improvements to the market economicinfrastructure (including banking,investment, stock market, business lawand administration), restoration of publicconfidence in the authorities, andstrengthened secondary education andVET.

From a VET perspective, we find support inthe economic developments for thefollowing conclusions.

� Provided that the overall economicrecovery continues, additionalresources – public or private – can bemade available for VET, which is anessential factor for the reform of theVET system.

� Although comparisons between andwithin the different sectors areinconclusive in terms of their detailedeffect on the labour market, sustainedeconomic progress and reform towardsa market economy will have an overallpositive effect on employment levels.

� Economic developments indicate thatpart of the economy is becomingincreasingly confident with themarket-like conditions. A surveysuggests that part of this positivedevelopment can be explained by theemployment of new and moremarket-oriented management principlesintroduced by entrepreneurialmanagers. The survey suggests that

13


8 Naturally, the agriculture sector is very dependent on the harvest and the prospects for 2003 are not good.

9 We consider only those shadow economic activities that are legal, meaning legitimate goods and servicesproduced without proper permits and legal status, as being relevant with regard to VET. For definitions andmeasuring methods see ‘Informal and Underground Economy’ (Frey and Schneider).

10 In the article the authors argue that two-thirds of the shadow economic activities can in fact be detected withinthe official statistics.

management training plays a significantrole in the restructuring of enterprises(Akimova and Schwödiauer, 2002). Wefind that this in turn is likely to bringabout an awareness, within theprogressive part of the economy, of theneed for new staff competencies inorder to achieve a more appropriatecombination of the means of production,to take advantage of new equipment,technology and product innovations,and to improve product quality.Following this line of thinking, it will inturn underline the necessity for amodernised VET system which cansupport these trends by being in tunewith economic realities. The interviewsconducted with stakeholders supportthese findings. Employers areincreasingly becoming aware of theneed to upgrade their human capital asa precondition for modernising theproduction process. Employees' lack ofcompetencies in mastering newtechnology and operating modernequipment effectively was clearlyhighlighted during the interviews.

� The shadow economy is likely to remaina significant feature of the Ukrainianeconomy. From an employment andtraining point of view, the shadoweconomy is consequently a factor thatmust be taken into account whendeveloping employment and trainingmeasures.

� The government is acknowledging theimportance of education and training forthe continuing development of theeconomy.

1.2 LABOUR MARKET TRENDS

There is no doubt that transition hasbrought with it dramatic changes in allaspects of life, and that the social costshave been considerable. The very positiveeconomic developments of recent yearshave not been able to eradicate the factthat living standards have declined, andthat for too many, poverty andunemployment have become a sad reality.

Unemployment figures tell a story ofdismissals owing to the slow pace ofeconomic restructuring, which should havebeen creating new jobs in new andtransformed sectors of the economy.

During the Soviet era, local labourauthorities were responsible forimplementing an ideologically determinedfull employment policy. Consequently,much effort went into creating jobs foreveryone of working age, regardless ofeconomic considerations, and thiseventually led to widespreadunderemployment. The gradual shift fromstate-planned production to productionincreasingly influenced by consumerpreferences and international competitionhas seen a labour market take shape11.

Unemployment

One of the first noticeable consequenceswas that underemployment became anincreasingly visible level of unemployment,as state and privatised enterprises werefinancially unable and politically unwilling tocontinue to bear the burden of animpractical full employment policy.Consequently, unemployment became atotally new phenomenon in Ukrainiansociety.

The first manifest increase in registeredunemployment was in 1992 when thefigure was 70 000; this increase continued(figure 3), reaching its highest in the firstquarter of 1999 when employment centresreported over 1 million registeredunemployed (UEPLAC, 2001).

However, official unemployment figures arebased on the number of unemployedpeople who have registered with localemployment service centres12. For socialand financial reasons, employees whohave been made redundant are oftenreluctant to register as unemployedbecause, if they remain officially classed asemployees, they continue to benefit fromthe company’s social services and benefitssuch as schooling, housing and medical

14


11 The very first signs of a labour market can be traced back to the late 1950s when rural citizens were grantedsome mobility rights and workers were given the right to resign.

12 Persons of working age (16-54 years for women and 16-59 for men) are counted as unemployed if they areout of work, have no wage or other legal income, have registered with the state employment service centresas seeking employment and are able and willing to take up any appropriate employment assigned (OECD,2000; and also International Centre for Policy Studies, 2000).

care. If they are owed wage arrears theystill have a chance of being paid, so manyare remaining officially employed.Enterprises sometimes ‘asked’ their staff totake unpaid leave (also calledadministrative leave) or to work onlypart-time. Although forced leave andpart-time work have been used throughoutthe economy, they are particularly commonwithin the light industrial, constructionmaterial, manufacturing and constructionsectors13.

Another reason that many people do notregister as unemployed is thatunemployment benefits are not substantial,and are difficult to obtain because ofcomplex regulations14. Consequently, it canbe assumed there is still a high level ofhidden unemployment and that officialunemployment statistics clearly understatethe real situation. On the other hand, somemight register although they have no realintention of working, which adds to theproblem of using official unemploymentfigures. However, these figures are thosethat are directly visible to the employment

services and are therefore the basis forunemployment measures, includingtraining initiatives.

In addition to the official unemploymentfigures, household survey data have beencollected using the ILO employmentmethodology since 1995. As may beexpected, the ‘real‘ unemployment rate ishigher than the official figures15. It is alsointeresting to note that the labour forcesurvey (LFS) data shows a fall inunemployment since 1999, while theofficial unemployment data do not detectsuch a trend. The regions of Rivne,Ternopil, Volyn, Zhytomyr, Suma,Zaporozhye and Poltava have beenparticularly affected by unemployment,while the main cities have the lowest levelsof unemployment (UEPLAC, 2001; andNational Observatory of Ukraine/ETF,2002). The difficult employment situationcan also be seen in the high level ofmultiple job holding, with around 25% ofemployed people having more than one job(ICPS, 2001).

15


Official rate ILO methodolygy

0

2

4

6

8

10

12

%u

ne

mp

loye

d

1995 1996 1997 1998 1999 2000 2001 2002 2003

Figure 3: Unemployment rates – 1995-2003

Source:Figures from 1995 to 1996: ‘Ukraine Economic Trends’, Quarterly Issue, UEPLAC, December 2001; and

figures from 1997 to the first quarter of 2003: ‘Statistics of Ukraine’s Economy’, Quarterly Predictions Issue No 33,

International Centre for Policy Studies, July 2003.

13 Indications suggest that at the start of the XXIstst century 16.1% of the employed were on forced leave and13.3% were working part-time (Selihey, 2003).

14 The requirements mentioned in the ‘Law on Employment’ as to who is officially acknowledged as unemployedmight also add to the underestimation of real unemployment. For example, men over 60 and women over 55are not included in the figures, and many documents such as residence permits must be produced in order toregister, which for various reasons deter some people from registering.

15 Authorities are aware that the official unemployment figures are understating the unemployment problem. On15 November 2001 a parliamentary hearing on the employment situation acknowledged the weakness of theofficial unemployment figures as a reflection of the true situation. The real unemployment rate was estimatedto be as high as 26-32%.

LFS data shows that unemployment ratesare usually highest among the younger agegroups. Furthermore, it appears thatpeople with a low education level over theyears have managed to find employment(probably a low-paid job) and to keep it.Recently however, it is interesting to notethat a low level of education seemsincreasingly to lead to unemployment,especially among the younger age groupsfrom 1998 to 2001 (figure 4).

Other figures show that men with low(ISCED 0-2) and high (ISCED 5-7)education levels have a higherunemployment rate than women, while theopposite is the case for ISCED level 316.

However, it is the general opinion of thosewe interviewed that the unemploymentsituation is improving, or will slowly do so.The unemployment rate seems to showsigns of levelling off, and the number ofpeople unemployed has actually beenfalling, which the LFS unemployment ratealso shows17.

The other side of the coin is thatemployment service centres are reportinghigh long-term unemployment rates. Asmany as 30% of all job seekers have beenunemployed for one to two years, andanother 30% for over three years; theaverage period of unemployment increasedfrom 9.9 to 11.4 months between 1998 and2001 (UN Country Team, 2002; andNational Observatory of Ukraine/ETF,2002). As well as a lack of vacancies, thecauses of long-term unemployment includelow educational levels, out-of-date skills,low self-confidence and low mobility. Onecan only presume that a number oflong-term unemployed people supplementthe low level of unemployment benefit theyreceive with income from informaleconomic activities.

Many VET school leavers are movingdirectly from school into unemployment.Ministry of Labour and Social Policy(MOLSP) figures suggest that 30 to 35% ofVET school leavers become unemployedafter graduation18. Again, such figurescannot tell us how many of these youngpeople are using their skills in the informaleconomy.

16


Un

em

plo

yme

ntra

te(%

)*

0

2

4

6

8

10

12

14

16

18

25-29 30-39 40-49 50-59 25-29 30-39 40-49 50-59 25-29 30-39 40-49 50-59 25-29 30-39 40-49 50-59

1998 1999 2000 2001

ISCED 0-2 ISCED 3 ISCED 5-7

Figure 4: Unemployment rate by educational attainment and age group – 1998-2001

* The unemployed aged 15 and over as a percentage of the labour force aged 15 and over.

Source:LFS data, National Observatory of Ukraine, 2003.

16 National Observatory of Ukraine, 2003.

17 The actual number of registered unemployed people has decreased from a peak of over 1.2 million in the firstquarter of 2000 to 1 million in December 2001 (UEPLAC, 2001). This should be seen in relation to a decreasein the labour force by 1.1 million people. This is further supported by the quarterly enterprise survey findings(see Institute for Economic Research and Policy Consulting, 2003).

18 Interview with the MOLSP. As in many other countries, the youth unemployment rate is noticeably higher thanthat of general unemployment.

Employment by sectors

Employment by sector is fairly stable from1998 to 2001 in that agriculture, industryand health and education remain the threemain sectors of employment. The majorityof the 1.8 million jobs lost between 1998and 2001 were in industry, trade andconstruction. In percentage terms theconstruction sector has lost more thanevery fourth worker employed in the sector.It is only within the public administrationand finance and banking sectors that wehave seen jobs being created. Although thepercentage increases are impressive, theactual number of jobs created in bothsectors was less than 160 000 in the sameperiod. The general trend is therefore oneof decrease in overall employment by9%19.

The data show that the positive economicdevelopment from 1998 has in general notyet resulted in the creation of new jobs.Many enterprises have been operating wellunder capacity for years and still haveemployees working part-time or on forcedleave. Such staff resources will be utilisedbefore additional employees are hired. Atthe same time enterprises will continue toreduce surplus labour, and investment in

new technology can be expected to reducethe need for labour. We are therefore likelyto see that, although the economy isimproving, jobs will continue to be lost.

Data suggests that when calculated asfull-time employees, the number of peopleemployed falls by some 20% (2001), whichindicates that many are working part-timeand that the potential for decrease orincrease in employment is likely to comefrom part-time employees. There is also ahigh industrial labour mobility gross rate,which in 2001 meant that one in fourpeople employed in industry had worked intheir present job for less than a year andthat one in three employees will not be inthe same job next year. All in all thesetrends indicate that the labour market israther unstable (UEPLAC, 2001).

Survey findings suggest that exportenterprises, especially those involved intrading with Western countries, reducetheir labour force quicker than otherenterprises. New private enterprises arebetter at creating jobs than state-ownedand privatised enterprises, and jobreallocation seems to occur within ratherthan between sectors (Konungs, Kupetsand Lehmann, 2002).

17


Mill

ion

s

1.00

-

2.00

3.00

4.00

5.00

1998 1999 2000 2001Agriculture Industry Health & education

Trade Transport & Communication Construction

Public administration Finance & banking Others

Figure 5: Employment by sector

Note: For each year, agriculture is the first left column followed by industry, health & education and so on.

Source: National Observatory of Ukraine, 2003.

19 SMEs show some interesting employment features. As well as having gained a significant position in theeconomy, SMEs employ more than 57% of the labour force, and 30% are run by women (Considine, 2003).

Mobility, whether between and withinsectors, between and within professions, orgeographically, is a complex problemfacing the emerging labour market. Thetradition of continuing employment in thesame profession and at the sameenterprise has made it difficult forindividuals actively to change professionand seek employment within sectors thatare new to them. To some degree, thedevelopment of the regions is hampered bythe lack of a tradition of geographicmobility. During the Soviet era, freemovement was restricted, and was onlypossible with a special permit. Althoughliberalisation has been introduced, peopledo not have a tradition of looking for workoutside their hometown. However, othermeasures are limiting mobility, such asaccess to housing and transfer of socialrights between regions.

Skills need – a barrier to production

Employers’ views on the need to invest intheir human capital are an indication of thedemand for new skills. High-techenterprises exposed to internationalcompetition, such as the Antonov airplanecompany, which was involved in ourinterviews, are showing concern for theirhuman capital, which is vital for them inorder to compete in an internationalmarket20. Since 2002 the Institute forEconomic Research and Policy Consultinghas been surveying the views of managers

on key business issues. Managers areasked for their views on a number ofbarriers to production, including whether ornot they find a shortage of skilled workersto be such a barrier. Having managers’views on the need for skills gives us abroader insight. As can be seen fromtable 2, managers on the whole, despitesome fluctuation, see a shortage of skillsas being an increasing barrier forproduction.

Highly qualified workers are especiallydifficult for some enterprises to recruit,while finding unskilled labour does notseem to be a problem (Institute forEconomic Research and Policy Consulting,2003). Discussions with employers andemployers' associations seem to confirmthis trend; we therefore view this as anindication of an increased awarenessamong employers of the importance of askilled workforce, and that someenterprises are facing difficulties in findingworkers with the required skills.

Strong core skills are demanded, alongwith broader professional competencies,rather than narrow specialisations targetedat specific work tasks. Having been used tothe Soviet top-led enterprise managementstyle, Ukrainian workers are notaccustomed to demonstrating initiative andorganising their own work, nor do theyhave the skills to do so.

18


2001 2002 2003

Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q2

Shortage of askilled workforce

10.3 11.7 - - 16.6 14.3 13.7 16.4 19.9

Note: A panel of 300 manufacturing firms was used to monitor managers’ perceptions of changes in business

climate and company performance. The table shows the percentages of employers answering that they view the

shortage of a skilled workforce as a barrier to production.

Source: ‘Quarterly Enterprise Survey’, August 2002 to September 2003, Institute for Economic Research and

Policy Consulting.

Table 2: Percentage of employers who see a shortage of skills as being a barrier to

production (2001-03 by quarter)

20 Ukrtelecom is another company illustrating that new human resource demands are emerging (Kiev Weekly,2002).

Employment in the shadow economy

From an employment and training point ofview the shadow economy is of interestbecause it is large and offers manyemployment opportunities. From thisperspective, it is interesting to know towhat extent the shadow economy isdifferent from the formally registeredeconomy.

The concealed nature of the activitiesnaturally makes it difficult to establish acomplete picture of the activities inemployment and training terms. However,the literature on Ukraine’s shadoweconomy gives some insight into itscharacteristics (Johnson, Kaufmann andShleifer, 1997; Johnson and Kaufmann,2001; Mel’ota and Gregory,2001; Mel’ota,Thiessen and Vakhnenkon, 2001;Thiessen, 2002; ICPS, 2000). The shadoweconomy can be divided into unregisteredhousehold activities and underreporting byregistered enterprises. A particular featureof Ukraine’s shadow economy, besides itssize, is that it seems, in terms of value ofproduction, to be concentrated in largeenterprises, and not in households andsmall enterprises as much as might havebeen expected (Mel’ota and Gregory,2001).

This could indicate that a large part of theshadow economy is not very different fromthe formal economy except that it isconcealed, meaning that enterprises areinvolved both in registered andnon-registered activities. Consequently, thetraining needs of this part of the shadoweconomy would be no different from thosethat a modern VET system should be ableto address.

Despite the fact that many largeenterprises seem to be engaged in shadowactivities, we find that many informaleconomic activities are entrepreneurial bynature and are hidden because thisincreases the survival chances of the

business. It is estimated between 1.8 and3.0 million people are using their skills asunregistered entrepreneurs (UN CountryTeam, 2002). Clearly these informalentrepreneurs represent a growth potentialthat should be fully utilised throughadditional training and other measures. In1998 the tax rules for entrepreneurs andsmall enterprises were simplified, whichresulted in a sharp increase in the numbersof registered entrepreneurs andsmall-scale businesses21. Many of thosewho were previously operating in theshadow economy are likely to have enteredthe formal economy, thereby becomingpart of the more transparent andaccessible growth potential. Targetedtraining activities are likely to strengthenthe growth of entrepreneurs and SMEs.

The sheer size of the shadow economyhas meant that it has become the onlyalternative for many households, since itprovides employment and an incomewhere the formal sector has failed. It couldbe argued that the informal economy hascounter-balanced the potential socialunrest that would otherwise have beenexpected to surface as living standardsdeclined. There is a fear that informalactivities and behaviour patterns willbecome institutionalised before sounddemocratic and market-based principlesare established.

Others, especially young people and singlemothers, not having the capacity to findinformal jobs or self-employment, arepushed into poverty. For young people andsingle mothers, education and training islikely to offer a way into employment.

Demographic developments

Ukraine has seen a fall in its populationfrom 51.7 to 48.5 million between 1989 and2001. Demographically we see an ageingpopulation, the result of a sharp fall in thefertility rate, which will influence theeducation system and the labour market in

19


21 Since 1986 single entrepreneurs are required to pay a high fixed tax based on their own book-keeping andsubject to inspection. This simplification means that entrepreneurs (1 to 5 employees and a gross income ofup to 7,000 times the tax-free minimum income, which in 2001 was around 17 hryvnia) will pay a fixed tax,with no extra book-keeping or inspection required. This tax varies from approximate 20 to 100 hryvnia permonth per employee. For small enterprises with up to 10 employees a single low-turnover tax of 10% wasintroduced (Thiessen, 2001).

the near future22. The fertility rate has fallensignificantly, from 1.9 in 1989 to 1.09 in2000, which consequently will result infewer students enrolling in the educationsystem. From 1998 to 2001 the number of14 year-olds fell by 4.4%. The entireeducation system will have to adjust itselfto having fewer students, which is likely tomean some reallocation of resources andthe introduction of new measures, such asincreased school bussing and therestructuring of training institutions in ruralareas, which can offer a wider range ofeducational programmes (training centres).An increased need for adult training is alsolikely to emerge in the coming years.

Economic performance and developmentsin the labour market have, sinceindependence, had a significant influenceon education and VET. This can besummarised as follows.

� Economic performance has beennegative, which subsequently has anegative effect on every aspect of life.Since 2000 the economy has recoveredand is showing positive growth rates.

� In a society in transition, the VETsystem needs to adjust its approach tothe new political and economic realities.

� Public funds have not been able tosustain previous public service levels.The positive economic development in

the past three years should make itfeasible to allocate additional resourcesto strengthening public services,including education and VET.

� Visible unemployment has become areality. Measures to addressunemployment, such as retraining, arenew undertakings that require theestablishment of a new institutionalorder, giving new tasks to establishedinstitutions and at the same timedeveloping new ones.

� Economic growth since the late 1990shas not resulted in a net increase inemployment. The period sinceindependence has been characterisedby job destruction. In fact, the jobdestruction has been less than thedecline in GDP might suggest.

� The large shadow economy is both abarrier to public service developmentand an area of potential economicgrowth in need of VET.

� Self employed and SMEs are potentialgrowth segments for which trainingneeds should be identified andaddressed by continuing education andVET.

� Jobs are increasingly being filled via thelabour market.

� Demographic developments demandeducational restructuring due to theaging population.

20


22 UN’s latest long-term estimates suggest that the population will fall by between 30 and 50% by 2050(Dansk-Ukrainsk Selskab, 2003).

2. DESCRIBING THE SYSTEM

AND RECENT

DEVELOPMENTS

2.1 CHARACTERISTICS OFTHE EDUCATION SYSTEM

Education has always held a strongposition in Ukraine. During the Soviet eraeducation was promoted at all levels, frompreschool to higher education. This policywas supported by the allocation ofsufficient funds to meet the educationalexpectations of the society. The result wasa well-functioning education systemproducing a high literacy rate and with afocus on acquiring knowledge and skills,especially within science, which couldserve the needs of a planned economy.

The education system in Ukraine isstructured as a continuous systemconsisting of preschool, secondarycomprehensive, VET, higher education andcontinuing education.

The comprehensive secondary school isthe basic component of the educationsystem, which, with effect from 2003, willgradually start to offer 12 years ofcompulsory education. The school systemis divided into primary general (elementary

school), lower secondary and uppersecondary general education.

� Primary school, which covers four years(from age 6 to 10), comprises gradesI–IV.

� Lower secondary, which covers fiveyears (from age 10 to 15), comprisesgrades V–IX, and students are awardeda Lower Secondary School LeavingCertificate.

� Upper secondary or, as it is also known,complete secondary education,comprises grades X–XII. Three types ofschools (Licei and Gimnazia (specialeducation), and Starsha Srednia Shkolatwo-year programme) offer uppersecondary education (from age 15to 18). After taking exams, students areawarded an Upper Secondary SchoolCertificate. In addition, VET schoolsoffer secondary education combinedwith professional training.

Since 1992, the entire system ofpost-secondary education has beenconsidered to be higher education.

21

2

2.2 THE VET SYSTEM

The VET system consists mainly of publicVET schools23. Taking entrants from eitherlower secondary or upper secondaryschools, these establishments can offeraround 260 different professionalqualifications at three different levels24.

� Level I – Lasts one to six months andprovides lower qualifications in differentoccupational areas. At the end of thecourse the student is awarded a statequalification depending on the results.A certificate of attendance is offered tothose who fail to complete courses.This level also offers continuing trainingfor adult participants.

� Level II – Lasts one to three years,depending on entrance level (lower orupper secondary) and providesqualifications for science-intensivetrades and occupations. The StateSkilled Workers’ Diploma is awarded,depending on the results. Thoseentering from the lower secondary levelwho also take courses at upper generalsecondary level will in addition receivean upper secondary school leavers'certificate.

� Level III – Lasts one to one and a halfyears and provides higher qualificationsfor science-intensive trades andoccupations. The entry requirement is alevel II diploma plus a full upper generalsecondary education. Accredited highVET schools can award a JuniorSpecialist Diploma 25.

VET schools can offer education andtraining up to level II, and high VET schools

can offer education and training up toJunior Specialist. Some VET schools havea specific profile that links them to specificsectors of the economy, such as theconstruction or service sectors. The VETdepartment within the MOES is in chargeof these different types of VET schools.

To offer Junior Specialist programmes,which belong to higher education, highVET schools should have a level IIaccreditation. Graduates must sit finalexams and defend a graduationthesis/work. The Diploma gives graduatesthe right to work at different qualificationlevels or the opportunity to continueeducation and training at institutions of ahigher level. The department of highereducation within the MOES is in charge ofthese higher VET institutions.

In recent years the majority (71%) of lowersecondary graduates (grade IX students)continue on to the upper secondary, 27%of students continue their education andtraining in a VET institution and 2% enterthe labour market (National Observatory ofUkraine/ETF, 2002). For students enteringVET after the lower secondary level, theirfirst ‘career choice’ is made at the age of15. The majority of the more than 500,000(2002/03) VET students are between 15and 18 years of age, and almost 67% ofthese graduates acquire a completeprofessional secondary education (qualifiedworker at level II), and 18% of all studentscontinue to study after graduation.

A significant feature of the VET system isits substantial social obligation with regardto offering education and training for

22


23 Some enterprises also offer training outside their own workforce, but the total number is small. Private VETproviders, which are mainly found in cities, are very few in number and have a limited capacity, mainlyoffering short courses such as language training, computer literacy and office administration. Their certificatesare not recognised by the MOES.

24 The number is being reduced from 800 to 260 by combining specialisations into broader occupationalcategories.

25 High VET schools offering junior specialist programmes require accreditation for levels 1 and 2, and a licencewithin the four-level higher education accreditation system. Some 120 VET schools can offer JuniorSpecialist Diplomas within specific occupations.Level 1: vocational schools and other higher education institutions equivalent to institutions that offer junior

specialist professional programmes;Level 2: colleges and other higher education institutions equivalent to institutions that teach bachelor and

junior specialist professional programmes;Level 3: institutes, conservatories, academies, universities that teach bachelors and specialists, as well as

junior specialists using educational and professional programmes;Level 4: institutes, conservatories, academies, universities that teach bachelor, master and specialist

courses.

disadvantaged groups (orphans, studentsfrom single-parent families, troubled homesand poor families, individuals with aphysical or mental disability). Over the pastseven years, this group has constitutedbetween 46 and 49% of the total number ofstudents26. These figures could indicatethat socially disadvantaged students are‘automatically’ guided into the VET systemregardless of their personal interests andpotentials, which is not necessarily the bestway to utilise a country's human resources.

This practice also contradicts the officiallystated policy of providing equal access toeducation. This has undoubtedly added tothe image of VET as being the last resort ifan academic career is not a possibility. Inaddition the social obligation requiressubstantial resources, not only in terms ofoffering this group of students the basicmeans of subsistence (board, lodging andscholarships), but also from a pedagogicalpoint of view.

23

2. DESCRIBING THE SYSTEM AND RECENT DEVELOPMENTS

%o

f1

5-1

8p

op

ula

tion

0

10

20

30

40

50

60

70

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

Upper secondary general education VET Upper secondary total

Figure 7: Upper secondary and VET enrolment (gross rates, % of 15-18 population)

Source: ‘A Decade of Transition’, Regional Monitoring Report No 8, Unicef Innocenti Research Center, Florence,

2001.

475,000

Stu

de

nts

VE

TS

cho

ols

495,000

515,000

535,000

555,000

575,000

595,000

615,000

635,000

655,000

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003800

850

900

950

1000

1050

1100

1150

1200

1250

VET students VET schools

Figure 6: Number of VET students and VET schools under the MOES – 1994-2002

Note: VET schools come under the Ministry of Education and Science, department of VET and general education.

Source:Information from the Ministry of Education and Science, 2003.

26 If the students who have suffered the consequences of Chernobyl can be regarded as belonging to a sociallydisadvantaged group, the percentage increases to 53% for 2002. Information obtained from the MOES.

As can be seen in Figure 6, the number ofVET students fell during the 1990s. Thenumber of VET schools has also declined,partly because of the declining number ofstudents, but also because of decreasingfunds, which has made it necessary toclose VET schools. This has resulted in anincrease of over 12% in the averagenumber of students per VET school,especially from 1996 to 1997 when arelatively large number of VET schoolswere closed.

Although the number of VET studentsdropped during the 1990s, the percentageof those graduating has increased slightly.The increase in the number of students perschool and, hence, per class, did not haveany negative effect on the numbersgraduating.

Figure 7 shows that upper secondaryeducation is becoming less attractive toyoung primary school leavers, this beingespecially true for VET. Enrolment levelsfor VET schools started to fall in 1992, andby 1998 more students enrolled in uppersecondary than in VET schools. It shouldalso be mentioned that enrolment intohigher education increased between 1993and 1999, which may suggest that someyoung students enter higher education at ayounger age than was previously thecase27.

The figure also suggests that employment– be it formal or informal – has attractedmany young people. Either some youngpeople leave the education system aftergrade IX or they drop out of upper generalor VET programmes. Data from 2000suggests that VET programmes especiallyhave a higher dropout rate than uppersecondary schools, and that among theVET programmes it is students studyingsolely for a vocational qualification withoutthe upper secondary level who areespecially likely to drop out (NationalObservatory of Ukraine/ETF, 2002).Consequently, this means that many enterthe labour market without any proper skills.

2.3 CONTINUING VOCATIONALTRAINING

With the improved economic situation,enterprises are increasingly becomingaware that their human capital needs to bemaintained and constantly upgraded.However, the existing CVT system isunable to meet the new demands that areemerging.

Responsibility for CVT rests with theMOLSP. Within the ministry, an advisorycouncil has been established which is incharge of developing further the training foremployed people. However, as CVT partlyshares the structures and resources of theinitial education and training system, theMOES also shares responsibility. Thisnaturally calls for a high level ofcoordination in terms of both policy-makingand implementation.

In 2001 the Cabinet of Ministers (COM)approved several measures aimed atimproving CVT, and in turn enhancing thecapacity of enterprises to meet therequirements of the market economy.

Private training providers have entered the‘market’, especially in areas of highdemand such as computer training,languages, services, and officeadministration and management. Somecompanies with the capacity to train theirown staff sometimes also offer training tostaff from other companies and toself-paying participants. Private traininginstitutions have been successful inobtaining contracts with employmentservice centres for the training ofunemployed people, which is very oftentheir main source of income.

Publicly funded VET schools have beenable to adjust only slowly to the rapidlyemerging demand for adult training. Theirgeneral lack of up-to-date equipment,material and experience with adult traininghas been a barrier to developing thenecessary capacity.

24


27 ‘A decade of transition’ (Unicef, 2001). It seems to be particularly within accreditation levels III-IV thatenrolments have increased. ‘Child and Family Welfare in Ukraine: Trends and Indicators’ (Unicef, 2001).Other data indicate that for the 1994/95 school year an increase in the number of higher education institutionsaccreditated for levels III-IV has taken place, many of these being private institutions. See ‘System of theHigher Education’ (Finnikov, 2001).

Although the number of people receivingtraining increased to nearly 7% in 2001, theMOES acknowledge that the CVT systemneeds to be improved in terms of both

quality and quantity. One target group inwhich the ministry has shown a specificinterest is entrepreneurs who lackmanagerial skills.

25

2. DESCRIBING THE SYSTEM AND RECENT DEVELOPMENTS

3. ANALYSING THE SYSTEM

3.1 RECENT VET SYSTEMREFORM EFFORTS

Since 1991, when Ukraine started toreform its education system, VET hasfrequently been on the agenda of theUkrainian government. The ambitious‘Education – Ukraine XXI’ programme wasnever realised due to the severe economicsituation from 1994 to 1998. The reformprocess was resumed in 1996 with apresidential decree entitled ‘the maindirections to reform VET in Ukraine’, whichset the priorities for the reform.

The first phase of the reform effortculminated in February 1998, when theUkrainian government was the first of the

NIS to adopt a law on VET that included acomprehensive reform plan. Thegovernment adopted some 20 resolutionsin support of the financial implications ofthe vocational reform28.

The economic crisis has, however,imposed severe budgetary cuts on the VETsystem. These constraints have not onlymeant that the implementation of thereform plan was at a standstill, but havealso led to increasing difficulties inmaintaining the existing educationalstandards and infrastructure.

In September 2000 the MOES, incooperation with the InternationalRenaissance Foundation (IRF), initiated a

27

3

28 Major elements of the reform efforts� The dialogue on vocational education and training with key stakeholders must be improved. An inter-branch

industry council has been created to coordinate the vocational education and training policies of severalnational sector ministries and regional authorities. The council is chaired by the deputy prime minister.

� The new state list of integrated professions must be implemented through the development of vocationaleducation and training standards that reflect the vocational qualifications required by the labour market. Theimplementation includes the need to develop new curricula, textbooks and other teaching materials and toretrain teachers.

� The new vocational education and training law sets out the basis for decentralisation and gives greaterautonomy to vocational education and training schools. Regional administrations and school heads need tobe prepared for this new responsibility. Among the schools’ responsibilities are the assessment of regionallabour market needs, the identification of the regional component of the curricula, the development ofteaching materials and training for unemployed people.

process to strengthen further thegovernment’s educational reform effortthrough the development of a NationalDoctrine on Education (the Doctrine). InNovember 2000 a working group within theMOES was established and charged withthe task of preparing the Doctrine thatshould redefine the orientation of the entireeducation system29.

The Doctrine, which was approved in April2002, sets out the goals and priorities foreducational development: (i) to bring theindividual into the focus of educational andtraining provisions throughout a person’slife; (ii) to promote national identity andvalues based on solidarity, ethnic toleranceand democracy; and (iii) to facilitateEuropean integration30.

The Doctrine sets out some overallguidelines for the reform of the VETsystem, including the following:

� VET should be free for students at stateinstitutions;

� VET can be provided by institutions withvarious forms of ownership;

� the entire VET system should meet theneeds of the labour market;

� VET schools should engage in CVT;� VET schools can engage in

income-generating activities;� social partnerships should be

developed;

� teaching materials should be upgradedand information technology introduced.

For continuing education the Doctrinehighlights the following points that arerelevant for VET:

� continuing education should be basedon a lifelong learning approach;

� it should focus on meeting individualneeds;

� optimisation of the system of continuingeducation should be pursued;

� distance learning capacities andopportunities need to be developed;

� training institutions that cater to theneeds of adult learners and the labourmarket must be established;

� VET institutions should offer vocationaltraining for unemployed peopleaccording to what is needed in thelabour market, based on state forecasts.

Parallel to the Doctrine, the MOES hasdeveloped an implementation plancovering short and medium-termimplementation on goals for meeting theobjectives of the Doctrine31. Theimplementation plan, which is divided intoseven main sections and includes25 action points directly related to VET,has much to say on the actions needed,but little detail on how the actions areconnected, the logic behind the actions orthe need for the resources to realise them.

28


29 ‘National Doctrine for Development of Education in Ukraine In the XXIst Century’. The Doctrine was approvedby Presidential Decree No 347/2002 on 17 April 2002.

30 Doctrine’s main sections: 1) goal and priorities in education development; 2) national nature of education;3) national and civic education; 4) equal access to quality education; 5) health of the nation througheducation; 6) continuous education – lifelong education; 7) education management; 8) economics ofeducation; 9) education and science; 10) teaching cadres and scientific and educational brainpower;11) social guarantees for participants in the training process; 12) strategy of language education;13) information technologies and training aids; 14) link between education and the development of civilsociety; 15) international cooperation and integration in the area of education; and 16) expected results.The underlying principles of the Doctrine are a further step in the de-ideologisation of education. It departsfrom the Soviet educational hypotheses such as: education should be collective not individual; the applicationof identical curricula, material and methods throughout the country guarantees the development of loyal andcorrectly trained citizens; only the best ideology – communism – can guarantee the happiness of all workersin the world. www.eucen.org/conference/past/warsaw1998/ukraina/index.

31 ‘Programme of Government’s Actions Aimed at Implementation of the Doctrine for Development of Educationin Ukraine in XXI Century for the Period of 2001-2004’. The programme is divided into sections coveringgeneral secondary, pre-school and non-school education, vocational education, higher schools, quality ofproviding educational services, development of the material basis and integration of education of Ukraine intothe international educational environment.

During the second half of 2002 and at thebeginning of 2003, political attention turnedto VET. National discussions culminated ina parliamentary hearing and debate onVET32. The MOES report on VET was thebasis for the discussion. The reportfocused on the chronic under-funding ofVET, which has a devastating effect on thequality of training, and on the need for acritical review of the very complex legalframework governing VET(MOES/Academy of PedagogicalSciences,2003)33. The discussions illustrated theincreased attention being paid to VET inthe political arena. Parliament has made aresolution on VET and the COM isreviewing a draft law on amendments tothe legal framework governing VET34. Onthe more concrete level the MOES has,with the support of the ETF, initiated aprocess to formulate a new concept ofVET.

3.2 SPECIALISATIONS ANDCURRICULA IN INITIAL VET

As illustrated in the previous chapters, theeconomic, demographic, social and labourmarket trends are placing new demands onthe VET system. It quickly became clearthat the many specialisations offered in theSoviet VET system needed to be replacedby broader occupational categories thatwould allow for more flexibility andadaptability to changing labour marketneeds and that would also increase jobmobility. A reform of the differentprogrammes following this approach iscurrently underway, though it is far fromcomplete.

One of the main motivations for therevision of VET programmes was toprovide students with greater access tovarious qualification levels by creating clearpaths through the new types of VETprogrammes35. The list of occupationalprofiles was reduced from around 800 toapproximately 260occupations/specialisations by groupingthem into broader occupational ‘families’36.This can be seen as a first attempt to bringVET closer to the existing or emergingneeds of the labour market.

VET curriculum structure

In August 1998 the MOES approved thecore curriculum as a new basic documentthat describes the general structuralcomponents of any (VET) curriculum.It contains key elements, such as thequalification structure, types of training andsubjects to be taught. As such, it providesthe necessary basis for developingstandard curricula for specific occupationsor specialisations. Training institutions usethe core curricula to draw up the curriculafor each occupation; these are thensubmitted to the MOES for approval.

Curricula used in initial VET aretraditionally divided into two parts:vocational and general educationalsubjects. As shown in Figure 8, VETcurricula (levels I and II) are, as a rule,composed of around 30% general subjects,with 70% being devoted to vocationalsubjects. Vocational subjects are thendivided up into vocational theory (40%) andvocational practice (60%).

29


32 In mid February Parliament’s Committee on Education and Science held a hearing on VET, which wasfollowed by a debate in Parliament on 11 March 2003.

33 Prepared for the hearings in the Verhovna Rada’s Committee for Science and Education status anddevelopment problems of vocational education and improvement of legislation.

34 ‘On Developments and Perspectives of the Vocational Education and Training System in Ukraine’, Parliamentresolution No 699-4, 3 April 2003.

35 The amendments to the Law ‘On Education’ (March 1996) identified the following goals for vocational andtechnical training: ‘…creation of possibilities for citizens to acquire professions in accordance with theirwishes, interests, and abilities; retraining and advanced training on the basis of the complete or initial generalsecondary education. In certain events, the citizens who had no initial general secondary education and whoneeded a social support and rehabilitation have been provided with opportunities to acquire professions inaccordance with the list of the relevant professions’.

36 In April 1998 the COM approved the ‘Temporary Governmental List of Professions’, according to whichvocational schools broaden the training profiles of qualified workers. The existing list of 800 professions hasbeen grouped into 260 units and shortened to 456 integrated professions.

There is provision for 20% of a givencurriculum to be adjusted to local needs,which is usually done by the schools totake account of the staff and materialresources available37. The choice of thegeneral subjects is to some extentdependent on the VET specialisationselected. However, the contents of thegeneral subjects, and those who teachthem, are largely the same as those ingeneral secondary education programmes.There are two general subject areas thatare compulsory: (i) humanities andmathematics, and (ii) natural sciencedisciplines.

Part of the explanation for such a systemcan be found in the fact that VET, as wellas offering occupation-related educationand training, has also in addition been acontinuation of general education to enablestudents to complete full secondaryeducation. In Ukraine, this approach isseen to reflect the general European viewof a modern VET curriculum in whichemphasis is given not only to work-relatedskills, but also to contributing to personaldevelopment and preparing young peoplefor adulthood and citizenship. However, theproblem is that vocational and generaleducation are seen as totally separate(scientific) disciplines or subjects taught bydifferent subject teachers, and learningdoes not follow overarching learning goalsaimed at developing the necessaryoccupational competence of the individuallearner.

The vocational aspect is the main part ofthe curriculum. It aims to develop practicalknowledge and skills through various, butagain separate, vocational subjects. As arule, students receive practical training atschool workshops and through industrialplacements. However, with the severeconstraints being faced by enterprises, anincreasing number are unable to offerpractical training opportunities to students.Consequently, more and more practicaltraining is confined to the VET schools,with their often poorly maintained andequipped workshops. Recognising theessential role of practical training in VET,the COM attempted to ‘legislate’, through adecree, an increased level of employerparticipation in the provision of practicaltraining placements38. As could have beenexpected, however, this effort failed. ThoseVET schools that already had good linkswith local employers (in mutually beneficialrelationships) were usually able to findindustrial placements for their students,while the decree did not help those schoolsthat were experiencing problems in thisarea.

The review team did not gain sufficientinsight into the question of whethervocational theory is sufficiently integratedwith occupational practice. A genericanalysis of this phenomenon may not inany case be possible, as, for instance,agricultural schools that run their ownfarms may be better able to link vocationaltheory and practice than vocational schools

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Figure 8: Curriculum structure

General subjects30%

Vocational subjects70%

Vocational theory40%

Vocational practice60%

� Workshop training

� Industrial placement

Source: National Observatory of Ukraine, 2003.

37 Findings from general secondary education suggest that the main criterion for selecting these optionalsubjects is to give teachers who do not have a full schedule extra lessons in order to increase their salary(Nikolayev et al., 2001).

38 COM passed a decree in June 1999, The Ratification of the Procedure for offering job placements to thoseenrolled in vocational education institutions for industrial training and work experience. It specified theadministrative, legal and teaching measures that aim to provide hands-on experience in businesses or theservice sector during students’ training at VET schools.

that prepare students for industrialoccupations and have weak links withindustry. Furthermore, it is unclear to whatextent VET schools’ income-generatingactivities could be, or are already, used togive students practical training inaccordance with different curricula.

VET levels and occupational

qualification categories

The Ukrainian system of education levelsand occupational qualification categories isvery complex. However, it deservesparticular attention, as it influencesemployers’ decisions concerningrecruitment and remuneration, and hencereflects the ‘currency’ of VET in the labourmarket. The VET system has three levels,which correspond, in essence, to VETprogrammes of a fixed duration, rather thanbeing linked to certain output (orqualification) standards. Occupationalqualifications – a sub-division that appearsin the Ukrainian labour code – are dividedinto six categories, the sixth being thehighest. The first group of (lower)categories refers to workers and thesecond group (higher) to specialists.

The three levels provided by the VETsystem are translated into specificqualification categories that are recognisedin the workplace. Students graduating at acertain level already know the qualificationcategory at which they would start their job.For example, a car mechanic graduating atlevel II is grouped into qualificationcategory 3, a cook is grouped intoqualification category 4 and a tailor intoqualification category 3. This means thatthe same amount of time spent ineducation can lead to diverse qualificationcategories when a graduate takes upemployment.

In the past it was often the case that one ofthe preconditions for being promoted into ahigher qualification category was skillsupgrading through training. The fact thatreaching a higher attainment level waslinked to a higher salary can be seen as a

positive feature, but at times this alsomeant that companies were reluctant tosend their staff on such courses.

According to the Employers’ Association,companies are increasingly interested inrecruiting workers with a higherqualification category, while workers withlower ones are less and less in demand.Graduates from VET programmes who inthe past were almost guaranteed jobcontracts at the (lower) qualificationcategories 3 or 4 can now no longer besure of getting a job at all. Employers feelincreasingly reluctant to follow‘prescriptions’ concerning the hiring ofworkers at a certain qualification category,particularly in fields where there is anoversupply of labour. More and moreemployers give preference to higher-levelformal qualifications and transferable skillssuch as innovation, self-management, thecommand of foreign languages andcomputer skills. These developmentstestify to a changing labour market, and theVET system needs to respond morequickly to the resulting skill andcompetence needs.

Labour market information, VET

standards and curriculum development

During the Soviet era there were no output(or qualification) standards in VET thatwould have defined what a student shouldbe able to do at the end of his/her training.Instead, complete and very detailed syllabiand lesson plans were, along with teachingaids, developed centrally in Moscow andthen made compulsory in every corner ofthe Soviet Union. Following independence,national and regional educationalauthorities found themselves with verylimited experience and resources in thearea of curriculum development.

The MOES has recognised the problems,and much attention is currently being givento the development of VET standards. Aprocedure for standard development hasbeen developed that suggests theinvolvement of employers and key experts.

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The COM has adopted the basic structureof a VET standard, which consists of thefollowing components39:

� the qualification characteristics of thegraduates of VET schools (occupationalprofiles);

� framework syllabi for the occupations;� framework syllabi for each theoretical

subject and for practical training;� a system for the assessment of

knowledge and skills and criteria fortheir assessment;

� mandatory training aids and tools to beused;

� students’ entrance requirements andthe type of final school leavingcertificate;

� qualification levels of teachers andinstructors.

Embarking on the development ofstandards is a complex and veryresource-demanding exercise, which hasbeen delegated to methodological centresand pilot schools. However, these centresand schools are faced with considerableresource and information constraints.

By and large, VET standards andcurriculum development are stilleducation-driven, as employers are not yetinvolved in an institutional and structuredway. Labour market and skill changes arenot monitored in a systematic way, andstudies to trace the job or educationcareers of school graduates are not carriedout. The use of such labour marketinformation, as well as the involvement ofemployers in either the development or thequality checking of VET standards andcurricula would, however, be an essentialprerequisite for making VET moreresponsive to the labour market in Ukraine.

There is one interesting initiative on whichthe VET system could build further. Theemployment service centres are in theprocess of setting up a computerisedlabour market information system. Thesystem was not specifically perceived as ameans of also informing macro- and

micro-planners in VET. As the employmentservice centres are in direct contact withmany unemployed people, and registerrelevant information, it could be beneficialto explore the ways in which the systemcould also be used to address the needsalso of those concerned with eitherplanning the network of schools andprogrammes or developing VET standardsand curricula in VET.

Previously there was little coordinationbetween the work of employment servicesand education authorities, including ageneral lack of exchange of information.However, the problem has beenrecognised, and a more structuredcooperation both between the ministries ofeducation and labour and with the socialpartners is beginning to emerge. In thiscontext, an inter-ministerial committee onVET, on which the two ministries arerepresented, has been set up, with amandate, among other things, to work onproposals for occupational profiles andVET standards.

Several donor-supported projects have, fora limited number of sectors andoccupations, revised curricula based onadequate skill needs analyses40.Unfortunately, each of the different donorshas introduced its own curriculumphilosophy, as well as curriculumdevelopment methodology. The resultingpicture is a fragmented VET ‘system’ inUkraine, with some schools following theirown (donor-promoted) approaches andcurricula, being better equipped thanothers and with some of their teachershaving benefited from training. Although alldonor projects have, without doubt, made auseful contribution to VET development,the newly gained insights have remained,by and large, restricted to the level of theinstitutions that have benefited from theprojects. Although spread over a number ofVET schools and institutions, localcapacities and understanding ofapproaches to curriculum development areavailable within the VET system.

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39 For a detailed English description of VET standards see ‘Vocational Training Standard of Ukraine’(MOES/ETF, 2000).

40 One newly introduced course development approach deserves particular attention, not least because of itsadvanced degree of system penetration: the ‘Modules of Employable Skills’ (MES) approach introduced byILO consultants. This approach will be discussed in the following section.

Therefore the time seems ripe for a coregroup of Ukrainian VET experts to discussand agree, at national level, which of theVET curriculum models that have beenpiloted in Ukraine is the one to be followedfor all curricula in initial and continuing VETin the future, if the system is to regain itscoherence and transparency and toprovide equal conditions for all students.Without a nationally agreed VET curriculumframework and without decisive effort bythe MOES to steer future donors, ratherthan the other way round, resources maybe wasted and the Ukrainian systembecome even more fragmented. Anin-depth analysis of relevant curriculumdevelopment approaches could beundertaken in support of the work of such anational VET expert team, and regionalauthorities and schools would need to bemade familiar with the newly agreedapproaches by a core group of trainers ormentors.

3.3 CONTINUING VOCATIONALTRAINING POLICY ANDPROGRAMMES

Policy development – A modular

approach to CVT

The importance of a well functioning CVTsystem is increasingly recognised byemployers and the education community inthe Ukraine. The nature of work, productionand industrial relations is changing aseconomic recovery is sustaining itself,while in turn is pushing forward the needfor competence upgrading of employees.

Responsibility for CVT is formally placedwith the MOLSP and both the latter and theMOES have recognised the need tostrengthen the links between initial VETand CVT with a view to share scarceresources and create a continuous cycle ofeducation and training services.

In 1999 the MOLSP, with the support of theILO, introduced a modular approach toCVT, called ‘Modules of Employable Skills’(MES) and established the Ukrainian

Intersectional Centre for ModularTraining41. Following this initiative, regionaland municipal administrations set up28 regional centres for modular training.

CVT following the modular approach hasso far evolved mainly around the field ofre-training unemployed adults. However,persons in charge of developing themodular approach expressed the viewvis-à-vis the review team that the approachshould also be promoted and applied ininitial VET.

It could be argued that a truly modularsystem requires the existence of a centralresource institution, which keeps andupdates all modules regularly, and fromwhich, institutions or individuals can flexiblydraw teaching and learning materials asneeded.

From our point of view, there are certainchallenges connected to this, which shouldbe carefully considered. From a learningand relevance point of view having toomany narrowly defined modules, mayreduce the acquisition of competencies42 toa minimum of technical/technological skills.This would increase the number ofmodules needed and could easily becomecounterproductive for job mobility. Anotherconcern is, whether the modular approachwill dissolve occupations as they areknown today, because a number of diversemodules might create a vast number ofoverlapping qualifications that could blurthe outline of a given occupation, possiblymuch to the dislike of employers.Furthermore, depending on how detailedthe modular approach taken is, the wholeprocess of developing and maintainingmodules, course materials, teaching aidsand equipment and the qualificationscheme linked to modules requiresimmense resources. In addition, thesystem works well only if it is linked toadequate teacher development. In theforeseeable future it is questionable if theUkrainian VET system has or will have thenecessary resources to accomplish such acomplex task for the entire VET system.

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41 It should be mentioned that other donors also, such as Lernia from Sweden, through Swedish support,introduced different modular approaches to training. A common feature of such modular approaches is thatmodules are viewed as smaller self-contained didactic components/units, breaking down complex educationand training programmes. Such modules often have a uniform structure and can be certified individually.

42 ‘Competence’ is the ability to act in certain, ever changing work situations.

Re-training of the unemployed

Training and re-training of unemployedadults is one of the active labour marketmeasures, which the MOLSP has set inplace and which is managed by theemployment services centres. From theformer employment agencies, the StateEmployment Service was established asan independent entity within the MOLSP in1991. The system is a three-levelledstructure composed of a NationalEmployment Centre that manages regionaland local employment service centres.Currently, all Ukrainian regions are beingequipped with the necessary infrastructureand resources to register unemployed, toundertake placement services, to identifytraining needs and to organise re-trainingcourses at a modest level. The activities ofthe employment service centres includingtraining are financed via the StateEmployment Promotion Fund. The fundwas set up in 1991 and its main source ofrevenue was mandatory contributions ofenterprises and institutions. Thecontribution to the fund is today shared bythe employers (1.5% of salary) andemployees (0.5% of salary)43.

The MOES and MOLSP have jointly issueda number of legal acts governing(re-)training activities44. This legalframework gives the employment servicecentres the right to tender out re-trainingactivities, which is a novelty within theworld of VET. Although the bulk of trainingcourses is carried out by public VETschools, the new rules have given room forthe emergence of a private training market,which includes company-based trainingcentres.

Courses are developed and offered, largelybased on the labour market information

gathered by the employment centres andon the training needs of the unemployed.We feel that the relevance of trainingcourses to employers’ needs could be evenfurther improved, if employers wereinvolved in the process in a moresystematic way.

There is a certain tension in therelationship between the employmentservice and the MOES. The formerrequires that all those institutions that wantto get a contract for training unemployedpersons would have to follow the MESapproach. However, this requirementexcludes many public vocational schools45

that are not yet familiar with this approach.Not using these schools limits the choice ofproviders and may, however, be a waste ofresources, apart from depriving thesepublic schools from the possibility to benefitfrom adult training. Although schemes areunderway to disseminate the MESapproach on a wider scale, trainingschemes following other approaches maybe useful, as well. It makes it all the morenecessary to put in place a system formonitoring and evaluating the quality oflabour market courses (or publicly-fundedCVT in general), which uses efficiency andeffectiveness criteria, including bothemployment-related and social indicatorsand assessing both the shorter andlonger-term impact of those who benefitedfrom the training.

However, there are also some examples atthe regional level, where the cooperationbetween educational authorities andemployment centres works well. Notsurprisingly, it is in these regions wherepublic vocational schools participate in there-training of unemployed adults to ahigher degree.

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43 In its 12 years of existence, the state employment service system has undergone many changes. Its financialsupport has changed – funds were collected independently of the state budget and became part of the statebudget. In 1997 the entire system was nearly closed because its effectiveness was seriously doubted.

44 Regulation on organisation of professional training, enhancement of qualification and re-training fordischarged employees and unemployed persons; Regulation on the organisation of professional training forunemployed persons using module system; Regulation on the selection of educational establishments forprofessional training organisation for unemployed persons on account of Ukraine's Fund of general obligatorysocial insurance against unemployment; Regulation on open vocational training on module basis; Regulationon competition selection of educational establishments for organisation of professional training, re-training orqualification enhancement for unemployed persons; methodological recommendations concerning procedureof using the resources of the Ukraine's Fund of state social insurance against unemployment for the purposeof arranging professional training, re-training or enhancement of qualification of unemployed.

45 According to the MOES, close to 50% of the vocational schools are involved in the re-training of unemployed.

In-company training

The slight recovery of the Ukrainianeconomy in the past few years has pushedthe need for skill development. Accordingto the MOES, in 1999 5.9% of allemployees received further training, and in2001 this figure grew to 6.9%. With theintroduction of new managementprinciples, flatter organisational structuresand the need for an increased flexibility inthe more progressive enterprises, there isan increasing demand for workers with ‘softskills’, such as creativity, team working,communication and problem-solving skills,etc. Enterprises feel that many of theseskills are better developed at the workplace or around the practical job, ratherthan in traditional formal training settings,which is why they often meet their trainingneeds through in-company trainingactivities.

The MOLSP and the MOES have launcheda number of initiatives, such as changes tothe legal frame governing in-companytraining.46 As mentioned theinter-ministerial committee was alsocharged, with the development of astrategy for in-company training. In thiscontext, the Council has addressed theissue of licensing, which seems to havebecome a serious barrier for in-companytraining. If companies want to train forstate-recognised occupations, they have toobtain a ‘licence’. To get such a licence,enterprises have to follow, for eachoccupation, a complicated formalprocedure that asks for an extensiveamount of documents.

When encouraging and supportingcompanies in training, the main aim is toassist them in improving their operationalmethods and procedures so that they canincrease competitiveness and profitability.However, the increased emphasis placedon in-company training should not eclipsethe need for assessing and maintaining thecompetence of staff with a view to ensuringthat the training results not only in in-housebenefits but also in transferable

competences which in turn can securemobility. Accrediting in-company training isan important tool in that direction.

The MOLSP has designed a project aimedat developing different approaches toin-company training and approached theEC Delegation with the request for funding.If such a project was to be funded, both theinitial VET and the CVT system couldbenefit from the newly developedapproaches.

To marry public and company interests thefollowing issues should be considered:

� alignment of the training process to thebusiness needs – ensuring that thetraining being delivered is meeting thetrue needs of individuals and thecompany;

� effective methods for measuring ofcompetencies are in place – the targetsto be reached are clear and understoodby everyone, the individual, the trainersand management;

� greater motivation and commitment –individuals undergoing the programmeare rewarded by national accreditation;

� measures to empower the enterprisesto looking critically at their own trainingneeds and how to respond to them.

3.4 VOCATIONAL TEACHERSAND INSTRUCTORS AT VETSCHOOLS

During the Soviet period, knowledge wasgreatly appreciated, and teaching was awell-regarded profession. Althougheducation is, in many policy documents,referred to as a key factor in social andeconomic development, the situation ofteachers and other personnel in schools isvery poor, as regards both their workingconditions and their remuneration levels,which are below standard living costs.There were times when the ministry couldnot even pay salaries at all, but the reviewteam was told that the problem of wagearrears has largely been settled now.

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46 Regulation on the professional training of staff at production facilities, approved by the joint Order of theMinistry of Labour and Social Policy of Ukraine and the Ministry of Education and Science of Ukraine inMarch 2001. The Ministry of Labour has started the development of the new Labour Code, the work aimed atbringing the Professions Classifier DK 003-95 and the contents of qualification characteristics intocorrespondence with the demands of modern production and services.

VET schools employ three types ofteachers. On average, teachers of generalsubjects make up some 40%, teachers ofspecial theoretical technical subjects 20%and, finally, workshop instructors another40% of the entire teaching cohort at avocational school47.

Teachers for both general and technicalsubjects follow the same four-levelcareer/salary system. This comprises thebasic category, teacher of the secondcategory and first category and teacher ofthe highest category. The entry level isdetermined by academic merits. Every fiveyears a teacher has the opportunity tomove up one category. Althoughinstructors have a different career/salarysystem, they follow the same promotionscheme.

The current teacher appraisal and careerprogression system does not providesufficient incentives for teachers to beinnovative or to upgrade their skillscontinuously. One reason might be thatthere are only minor differences, inmonetary terms, between the salaries of ajunior and a more experienced teacher.Moreover, new skills can in many casesnot be applied in practice immediately dueto the poor conditions at schools and thelimited means for obtaining new textbooksand other teaching aids.

Many professionals, especially those withpractical skills, leave the teachingprofession for better-paid jobs in industry.In addition, over the last five to eight yearsit has been difficult to recruit new teachersand instructors into the system and, as aconsequence, the VET system has had ashortage of teaching staff. The MOESestimates that, with the present standardsapplied (such as teacher–student ratio,school staffing levels and curriculumstructure) and the current number ofstudents (school year 2001/02), vacancylevels in VET schools are 15% forinstructors and 9% for teachers (bothgeneral and technical subject teachers)48.

What remains is a teaching force that isageing, that finds it increasingly difficult tocope with the prevailing conditions andshows signs of ‘reform fatigue’. Increasingcriminality, alcohol and drug abuse amongthe students add to the difficulty of workingas a teacher. In such an environment,where teaching and learning are not muchfun and where social problems loom overthe teacher’s primary task, it is very difficultto motivate teachers and introduce new,modern forms of learning.

The review team was told that for teachingtechnical subjects, teachers and instructorswork together in small subject teams inorder to plan and implement the training.This is a highly praiseworthy initiative, asthe need to develop key occupationalcompetencies of the individual requires abetter integration of general subjects,vocational theory and practice and, hence,a close cooperation between all vocationalschool teachers. This is likely to present aradical challenge vis-à-vis most of thecurrent school practice: the teacherbecomes part of a collective planning bodyand feels responsible, together with his/herteacher colleagues, for the(subject-independent) occupationalcompetence development of an individualstudent. To achieve this goal, a great dealof school-based teachers and trainers’training will be required, following differentapproaches. The school manager will bethe central actor in this field, providingdirection and leadership based onconsensus and ‘orchestrating’ the efforts ofthe teacher teams.

The Ukraine Human Development Report2001 (UNDP, 2001) summarises the mainchallenges with regard to the personnel ofVET schools, including managers, teachersand instructors, as follows:

� ‘paying employees adequate wages ontime;

� attracting young professionals (into thesystem) and retaining top qualityexperienced teaching professionals;

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47 Percentages depend on the type of school and programme. For example, trade schools offer more practicallessons and therefore need more instructors.

48 We calculate that this means that more than 19,000 teachers and 27,000 instructors are missing, according tothe present manning standards (MOES/Academy of Pedagogical Sciences, 2003). Reforming the VETsystem should, among other things, lead to improved efficiency that might mean that the number of teacherand instructors can be reduced.

� adjusting curricula throughout theeducation system to assure thatgraduates will have necessary life skillsand the professional training needed toobtain employment in Ukraine’s newmarket-based economy;

� providing the teaching materials andequipment.’

Pre-service training of VET teachers and

trainers

In an effort to modernise the learningprocess, much attention has recently beenpaid to the postgraduate pedagogicalstudies of VET teachers and thepedagogical training of instructors.Following an agreement with the MOES,the ETF has asked the Ukrainian NationalObservatory to undertake a study of thepedagogical training curricula presentlyoffered to teachers and instructors (NationalObservatory of Ukraine/ETF, 2002). Thedraft report highlights some interestingpoints, which are discussed below togetherwith other findings. The MOES has alreadyacknowledged some of the shortcomings towhich the study points, and policymeasures are being scheduled that areintended to improve the situation within theexisting financial framework. However, amore in-depth study, which should alsoinvestigate existing school managementschemes, would be needed in order toprepare for more far-reaching changes.

As mentioned above, VET schools employthree types of teacher. Teachers of generalsubjects, such as languages and history,are graduates from pedagogical, highertraining institutes or universities. Teachersof special technical-theoretical subjects,such as technical drawing, are graduatesfrom higher technical institutions. For bothgroups, reading pedagogy and undertakingteaching practice does not form acompulsory part of their initial professionalpreparation, which is why many of themhave limited teaching skills when they takeup positions as teachers in VET. They arerequired to develop their pedagogicalcompetence on the job and through shortin-service training courses. Finally, thereare instructors who come fromvocational-pedagogical colleges and teachpractical subjects at school workshops.

Every teacher can seek pedagogicaladvice from the school’s pedagogicaladvisor.

According to the current legislation, eachteacher should receive skills upgrading atleast every five years. However, for manyyears this has not been possible, fromeither a financial or a supply-sideperspective.

Vocational-pedagogical andindustrial-pedagogical colleges trainwould-be teachers and instructors forvarious specialisations in VET at ‘juniorspecialist’ level (‘Bachelor of Pedagogy’),and the Ukrainian Engineering PedagogicalAcademy and other institutes at tertiarylevel train VET teachers at specialist level(‘Master of Pedagogy’).

The above-mentioned study points to theneed to improve the pre-service training of(VET) teachers and trainers from acontent-related point of view, referringespecially to the need to update thepsychological and pedagogical content.The revision of related ‘state standards’ forhigher pedagogical education is underway.Psychological and pedagogicalcompetencies are seen as particularlyimportant in (VET) teachers mastering theirprofession.

Although the programmes offered by thevarious pedagogical academies, collegesand university faculties involved in thepreparation of teachers vary considerablyin terms of types of subjects and number oflessons, they all include subjects dealingwith teaching or learning methodsspecifically related to VET. While the studydoes not mention the methods by whichthese subjects are taught (it is assumedthat this is done in the traditional way thatis practised in higher education in general,i.e. through ex-cathedra lectures ratherthan applying active methods of learning),nor to what extent these subjects lendthemselves to the development of soundtechnical and methodological competencein VET teachers, future projects to upgradepre-service VET teacher trainingprogrammes could certainly include thesesubjects.

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All pre-service teacher trainingprogrammes include practical training,which starts in the third semester andcontinues until completion of the studies.Teaching practice is estimated to take upan average of 16% of the entire studyperiod. Doubts have been raised as towhether this is sufficient. Student teacherswould like to see a reduction in the timespent on pedagogical theory in favour ofmany more opportunities for developingpractical skills (National Observatory ofUkraine/ETF, 2002). The study concludesthat graduates are not adequately preparedwhen they take up their teaching dutiesand that more practical training needs totake place within real-life contexts, i.e.schools or workshops.

The study refers to the fact that existingVET teacher training curricula do notsufficiently prepare teachers for innovativeactivities, nor do they develop youngteachers’ confidence in their own abilities,helping them to become active andindependent, while solving pedagogicalproblems and mastering their VETspecialisation. Interestingly, however, boththe Pedagogical College in Kiev andPodillya Technical University offer a coursecalled ‘Elements of pedagogical creativework’ (which is not offered by other teachertraining institutions), and it remains to beexplored further whether this could be aninteresting initiative to be followed by otherteacher training institutions.

All in all, pre-service (VET) teacher trainingprogrammes seem, despite the practicaltraining involved, to be rather‘science-driven’, lending themselves todeveloping (theoretical) knowledge ratherthan (practical) competence. Active typesof learning are rarely applied, so thatstudent teachers do not themselvesdevelop sufficient proficiency in suchlearning methods. The study suggests theneed for a more intensive use of interactivemethods, including project-basedassignments. It presents a long list ofcompetencies that a VET teacher shouldmaster, divided into psychological andpedagogical areas of competence, with thelatter including the potential to engage inresearch work and design textbooks andteaching aids, as well as skills relating to

both the strategic management of VETinstitutions and labour market research.

The principal problem with training for VETteachers and instructors in Ukraine is thatthe various disciplines, includingpsychology, (vocational) pedagogy andengineering and some other technicaldisciplines, are seen as separate ratherthan integrated fields. We cannot speak ofa holistic VET teacher training system, asstudents read such subjects in parallelrather than applying psychological orpedagogical aspects directly to theteaching of technical contents. Thus, animportant basis for VET teacher training ismissing: the didactics and methodics ofspecific vocational subjects. Furthermore,there is no common standard for VETteachers as a platform on which trainingcurricula could be built; teacher educatorsthemselves lack the necessary expertise inVET; and no adequate, well-structured andsupervised teaching practice is carried outin real-life contexts during the academicpre-service training of VET teachers orlater on in practising the profession.Technical contents of VET focus on theteaching of (often out-of-date)technologies, along with partly relevant,partly irrelevant (especially in hightechnology sectors) practical skills, ratherthan taking into account the technical,organisational and managerial complexitiesof the real workplace in companies today.Teachers are, hence, rather ill prepared todevelop, with their students, thecompetencies needed to act in different,highly challenging and ever-changing worksituations.

The study suggests that a key role inrevising the VET teacher training systembe given to the scientists of the Academyof Pedagogical Science. While the reviewgreatly appreciates the academic merits ofthe Academy staff and while their activeinvolvement would be important, ourconcern is that they lack the necessarypractical expertise themselves.

In-service training of VET teachers and

trainers

The Central Institute for TrainingPost-Diploma Teachers, the Donetsk

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Institute of Post-Diploma Education forEngineer-Teachers and VET centres suchas those in Kharkov and Khmelnytskyprovide short in-service training courses orseminars for VET teachers (NationalObservatory of Ukraine/ETF, 2002). Inaddition there are institutions that offertraining on market terms. Both schools andthe teachers themselves are increasinglyunable to afford the transport and othercosts involved in attending such events,and even publicly funded training institutesare considering introducing course fees.Despite the existence of legal provisionsfor regular attendance by all teachers atsuch continuing training events, in realitythis is no longer common practice – mainlyfor reasons of cost. Moreover, currentstaffing levels in VET and the fact that theexisting teaching force has to take on extralessons do not allow for a great deal oftime to be spent on training.

The existing dominant in-service teachertraining model is supply-based: traininginstitutes establish the list and contents ofthe courses on offer, mostly withoutconducting adequate (individualised)teacher training needs analyses. Trainingevents follow a subject-based approachand are mostly of short duration. Trainingprovision is focused on individuals ratherthan groups, and does not incorporateinstitutional and organisationaldevelopment of the schools in question.The danger with this approach is that itrisks creating individuals who,metaphorically speaking, return from theircultural island to a resistant mainlandwhere it is almost impossible to implementwhat has been learned.

The need for in-service training greatlyexceeds the available resources of theexisting institutions. On the other hand, it isclear that teachers cannot adjust to newteaching challenges if learningopportunities are not provided. The MOEShas started to address this problem bylaunching, with the help of internationaldonors, a series of small-scale pilotprojects. Vocational schools that have boththe necessary expertise and the necessaryresources within one or more occupationalfields have been selected to become‘model schools’ and to provide in-service

training for other schools. The aim is tosupplement existing in-service teachertraining schemes with a system that is (i)school-based and, hence, responsive tothe needs of teachers (and localemployers), and (ii) more sustainable froma financial point of view.

Findings show, firstly, that although thesituation has improved slightly, lowsalaries, wage arrears and poor workingconditions have resulted in a loss ofprestige for the VET teaching profession.The result has been an ageing teachingforce owing to the migration of staff toprivate employment, and a profession thatis not attractive to the younger generationof graduates.

Secondly, the study undertaken by theNational Observatory of Ukraine concludesthat pre-service teacher training needs toreflect the new roles and competenciesdemanded by a contemporary VET system.Links and a distribution between theoryand practice need to be found, in whichpractical application is prioritised. Thereview of the curricula should, among otherthings, ensure that learning and practice ofmodern, and more participatory, teachingmethods are included.

Thirdly, local capacities and anunderstanding of approaches to curriculumdevelopment are available within the VETsystem, albeit spread over a number ofVET schools and institutions. Furthermore,it is expected that additional bilateral donorprojects will continue to focus oncurriculum development. These effortsshould be utilised to develop a nationalcurriculum approach.

3.5 VET PLANNING (THESTATE ORDERING SYSTEM)

VET schools are providing training inaccordance with yearly state orders thatdetermine the number of students to betrained, and in which professions. Thesestate orders are also the basis for fundingof the training.

Each year, VET schools forward to theregional education authorities an estimate

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of the number of students to be trained andin which professions for the coming schoolyear. The regional authorities draw upregional plans, which the MOES collectsand, in April each year, turns into a nationalestimate by region, sector and branch. Thisis then sent to the Ministry of Economicand European Integration (MOE). TheMOE reviews the estimate and decides onstate orders for VET (number andprofession) for the coming school yearstarting in September. These state ordersare then sent back to the VET system andto each school, and form the basis foradmitting students49.

The yearly state order planning processdoes not seem to allow for, nor to makeuse of, systematic labour marketmonitoring procedures or tools that cansatisfactorily monitor labour marketdevelopments. Many VET schools haverelationships with employers that can beused to obtain labour market information.However, these are not sufficientlydeveloped or systematised to allow reliableand systematic labour market informationto be gathered, on which needs can beestimated and translated into training plansfor the part of the curriculum that can beadapted to local needs. In addition, is ituncertain to what extent employmentinformation gathered by the MOLP or theemployment services forms a systematicpart of the state ordering system.Furthermore, the state ordering systemseems only to be concerned withestablishing the number of students to betrained and not with tackling contentissues. This seems to be a legacy of theSoviet era, when content issues were dealtwith in a uniform manner separate from thequantitative issues. In other words, it isvery doubtful whether the existing stateordering system is a relevant tool forestimating and responding to employmentneeds and changes in professions.

VET school directors and regionaleducation authorities are expressing

frustration over the state ordering system,which they find to be increasingly out oftouch with real needs. In addition, they findthat they are given a labour marketmonitoring task that is not theirs alone, nordo they have the sufficient resources andcapacity to undertake the task efficiently.They call for greater MOLP involvement inmonitoring local labour marketdevelopments, on which trainingrequirements can be estimated.

Findings suggest, firstly, that as the labourmarket develops, the state ordering systemis an inadequate mechanism for identifyinglocal labour market needs and turningthese needs into relevant traininginterventions. Consequently, a newmechanism for VET planning must beintroduced which can better respond toshort- and long-term needs.

Secondly, the state ordering system is asmuch a VET financing tool as a VETplanning tool, not founded on a systematiclabour market monitoring tool relevant foreducational planning; it seems to have hadits day. Because of its close link to VETfinancing, any changes to the system willhave to go hand in hand with anintroduction of new allocation instruments.

3.6 VET MANAGEMENT

The overall management of initial VETfollows the ‘division of labour’ between theMOES, MOE and Ministry of Finance(MOF)50. In simple terms, the MOEdecides, through the state ordering system,the number of persons to be trained and inwhich professions. The MOF provides thefinancial resources for VET, and the MOESimplements the training mainly througheducational standards and regulatoryinstruments. Although this is a simplifieddescription, it is these relationships that,from a managerial point of view, are up forreview and that have implications farbeyond the management of the system.

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49 In addition to the training ordered by the state and depending on capacity, the schools can undertakecontinuing training courses.

50 The management of continuing vocational training is largely in the hands of the Ministry of Labour and SocialProtection, the employment services and companies. Management of some agricultural schools is theresponsibility of the MOA.

Initial VET is managed at national level bythe MOES51 and the MOA, which atregional level are represented by regionaleducational authorities that form a part ofthe regional government structure. VETschools are organised under the regionaleducational authorities.

The responsibility for VET provision lieswith the MOES52. The minister is becominga more political figure, leaving the moremanagerial tasks to the first deputyminister. The first deputy minister issupported by four deputy ministers, eachheading one of the four departments listedbelow:

(i) Research and Science (Science andTechnological Development; Innovation;International Section);

(ii) Finance and Economy (Administrationand Logistics; Economy and Finance;Accounting and Auditing);

(iii)Higher Education (Higher Education;Licensing and Certification); and

(iv)General and VET (Preschool; General;VET) (see annex C).

The management of VET is theresponsibility of a department consisting oftwo units, one responsible for the contentof VET and one for the social andpedagogical work. The VET departmentemploys 20 people and is assisted by stafffrom the finance and the licensing andcertification units53. At regional level, one tothree people deal with VET issues54.

VET management is largely a matter ofissuing and monitoring an ever-increasing

number of laws, regulations and decreesthat together with educational standards(such as student–teacher ratios, class sizeand hours per subject) and the stateordering system determine VET inputs(content, allocation of teaching resourcesand financing). As a result, the ministry isfully occupied with maintaining the systemthrough legal instruments, which theregional and school levels are left tocomply with.

The VET policy and management sphere isinfluenced by a number of players outsidethe MOES. A number of political andadministrative institutions, such as thepresidential administration, the VerhovnaRada, the COM and other line ministriesand committees, are issuing a variety ofstatements, recommendations, orders,regulations, resolutions, laws and advice,which together form the policy frameworkand environment within which VET isprovided and developed. Consequently,VET is governed by fragmented, complexand in some cases contradictory rulingsand policies. In a report to Parliament inMarch 2003 the MOES pointed out theneed to review the legal frameworkgoverning VET (MOES/Academy ofPedagogical Sciences, 2003).

The general impression is that the legacyof the Soviet era still seems to compel theMOES to focus on VET system inputs suchas rules, the monitoring of educationalnorms and the application of definedstandards. This is done at the expense offorward-looking strategic management andreform steering. With many outside

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51 From 1988 to 1991, the Ministry of Popular Education of the Ukrainian Soviet Socialist Republic managed theVET system. The ministry was founded in 1988 on the basis of the USSR Ministry of Education and theUSSR State Committee on Vocational and Technical Training (Degree of the Presidium of Verhovna Rada ofUkraine No 6143 – XI, 6 July 1988). In 1991 the Ministry of Popular Education and the Ministry of HigherEducation were merged into a single Ministry of Education. The management of VET was placed within onedepartment of the new ministry. In June 2000 a presidential decree joined the State Committee of Ukraine onScience and Intellectual Property with the Ministry of Education, which changed name to the Ministry ofEducation and Science. The Autonomous Republic of Crimea followed a similar development of its educationauthorities.

52 The description of the MOES is based on information provided by the MOES, department of generaleducation and VET.

53 The State Inspection Board and the State Certification Board also handle VET related issues. Adding theseorganisations increases the total number of staff working on VET to around 34. The VET research centreunder the MOES has a staff of 47.

54 A special feature of the management structure is that VET school directors are hired directly by the MOES,while the directors and staff of the educational regional authorities are employees of the regional authorities.As one would expect, this duality in VET management presents a potential problem, as both directors andregional VET authorities might experience conflicts of interest.

influencing policies, the MOES has limitedinfluence on overall VET policydevelopment.

Taking the size, responsibilities andchallenges facing VET into consideration,there is no doubt that at national level(MOES level) VET management isunderstaffed. It seems inevitable that thelack of staff is a barrier to the VETdepartment steering the reform process.The staffing level should correspond to thetask, and undoubtedly the reform tasksrequire additional staff with a capacity tobring the MOES to a position where theministry can steer the process.

Secondly, VET management – especiallyat national level – should increasingly focuson establishing and maintaining theframework within which VET is delivered,by providing overall VET policies andsteering (outcomes and deliveries) ratherthan monitoring inputs. Measurable criteriafor effective and relevant VET provisionshould be developed, which couldeventually lead to benchmarking exercisesstriving at improving relevance and quality.Such instruments would greatly increaseeffective management and could becomevaluable tools for decision-making andreform steering. Such measures arenaturally closely linked with a review ofVET financing and of the legal frameworkgoverning VET, and presuppose that thenecessary capacities and VET informationsystem are in place.

Thirdly, VET management is practisedwithout any involvement from employers.At neither school nor regional level are

structures in place to give employers a partto play in overall VET managerialdecisions. The VET system cannot,therefore, benefit from the employers' viewon general managerial issues, which couldimprove delivery and strengthen thesystem's capacity to meet emergingemployment needs.

Fourthly, the above should be consideredwith a view to decentralising VETmanagement. However, decentralisationshould not be done without ensuring thatstaff at the lower levels of VETmanagement has the required capacitiesand resources to take on board thedecentralised managerial tasks.Decentralisation of duties to lower levels isbeing discussed within the MOES.However, the MOES acknowledges thecomplexity of the task and the need to buildlocal capacities as a precondition fordecentralisation. This brings into focus thegeneral question of reviewing therelevance of the state both providing andfinancing VET.

3.7 VET FINANCING

Although the law on education stipulatesthat no less than 10% of the nationalincome must be allocated for education, ithas never been possible to reach such ahigh level of funding of education in theyears since independence55. As can beseen in table 3, constrained public fundshave resulted in a gradual decrease offunds (in real terms) being allocated toeducation from 1990 to the present56.

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55 Law on Education, Article 56.

56 It is estimated that allocations for education have fallen by some 60 to 70% in real terms (WB, 2000). In 1999the OECD average of expenditure on educational institutions from both public and private sources was 5.5%of GDP (public expenditure 4.9% and private 0.6%). In 1995 the figures were 5.6% (public expenditure 5.0%and private 0.6%). See OECD, 2002.

During the Soviet era VET schools werelinked to base industries that provided theschools with up to 60% of their budget,either as direct financial support or, moreoften, in the form of equipment, facilities,materials and other necessities. Althoughthe law on vocational education stipulatesthat VET provision must now be publiclyfinanced, it has not been within thefinancial capacity of the state to allocatesufficient funds, nor to make up for thedeclining support from the former baseenterprises. Consequently, the VET systemhas been chronically under-funded almostsince independence, a situation that islikely to continue until a sustainable fundingscheme is in place.

As mentioned above, state VET fundingand planning come together in the stateordering system. From 2003, the MOE hasrequested the MOES to enhance the levelof detail in their estimates for training toinclude needs by sub-branches andprofessions, and to estimate the trainingcosts for each profession. Such newinitiatives are likely to be founded on a wish

to bring VET planning and financingincreasingly in line with economicdevelopments. However, the VET systemis not equipped to take on such new labourmarket monitoring tasks. In addition, themanagement information system currentlyin place does not allow for precise costingof VET provision by professions andbranches.

Because of the budgetary constraintsmentioned, state orders for VET provisionare not backed by sufficient financing. AsFigure 9 suggests, salary and benefit costsmake up 60% of the total expenses.Together with the large social obligation totrain disadvantaged students (totalling78%) these costs are crowding out othertraining-related costs.

A broad estimate indicates that statefunding covers 100% of the salaries,scholarships, support to orphans and othersocial obligations, 30% of electricity, 10%of boarding and 2 to 3% of theadministrative costs.

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Table 3: Funding levels of education and VET (1991 and 1995-2003)57

1991 1995 1996 1997 1998 1999 2000 2001 2002 2003

Education as %of GDP

3.8 4.3 4.4 4.2 3.9 3.6 4.0 4.7 - -

VET in real terms(thousand)

- - - - 249.6 261.6 336.5 457.1 557.8 704.4

VET as % of GDP - - - - 0.25 0.22 0.25 0.29 0.26** -

Actual allocatedamount for VET asa % of budgetedamount*

- - - - 78 88 99 94 96*** -

Note:

* The budgeted amount for VET differs from the actual allocated amount. The table shows the amount

allocated, except for 2002 where it is the expected allocated amount and for 2003 where it is the budgeted

amount.

** Calculated by the author.

*** Calculated based on the budget amount.

Source: ‘Quality assurance and educational management at primary and secondary level in Ukraine’, base-line

study report, Ministry of Education and Science, September 1997; ‘Ukraine Economic Trends’, Quarterly Issue

December 1999, Ukraine National Observatory, 2003, p. 58.

57 According to the National Observatory of the Russian Federation, Russia allocated 3.5 % of GDP oneducation and for 2003 it is estimated at 3.8% of GDP.

57 According to the National Observatory of the Russian Federation, Russia allocated 3.5 % of GDP oneducation and for 2003 it is estimated at 3.8% of GDP.

Constant under-funding has forced theVET system to introduce other ways ofraising funds. A large part of VET schoolfunding currently comes fromincome-generating activities such aseducational services, the sale ofstudent-made products, and othernon-training related activities such ascatering services and hotels, leasing ofpremises and facilities, sponsorships, anddonations. Figures from the MOES clearlyshow that production activities are by farthe biggest income earner. A yearlyestimate is made of how much each schoolis expected to generate through thesebusiness activities. Since 2000 these fundshave been channelled into a special fundfor VET schools (Vocational EducationSpecial Fund), for which an allowance ismade in the state budget. VET schoolshave accumulated a significant amounteach year, and in 2001 and 2003 itprovided 24% and 14% respectively of thetotal public funds for VET. Fundsgenerated by a particular school areearmarked for that school. No redistributionbetween schools or regions is made.Funds that a school has generated abovethe expected level can, provided salaries

and all outstanding bills have been paid, beused as the school wishes.

It is a thorn in the side of VET schools andauthorities that income-generating activitiesare subject to taxation, which is consideredan unfair burden to place on schools thatare suffering from lack of state funding58.The financing authorities regard any fundsgenerated by state institutions as beingstate funds. Consequently, fundsgenerated by state VET schools areregarded as being state funds. Whenconsulting statistics, this could lead to theconclusion that increased state funds havebeen allocated to VET, when in reality theyare funds coming from VET schools'income-generating activities. The VETsystem, on the other hand, views VET asbeing financed by those ordering thetraining, which means firstly the state (stateorders), secondly the employment services(unemployment training), and thirdly byprivate training orders (companies andindividuals).

Despite the contribution from the schoolsthemselves, the financial situation has notimproved significantly. In 2001, the public

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44%Salary

16%Benefits

8%Teachingmaterial

1%Equipment

11%Utilities

2%Construction &maintenance

18%Scholarships

Figure 9: Funds allocated to vocational education and training by the Ministry of

Education and Science in 2001

Note: Read the pie-chart clockwise starting with ‘salary’, the largest area at 44%.

Source: ‘Vocational Education and Training in Ukraine’, National Observatory of Ukraine, 2002.

58 In 2000 the tax issue was – at the instigation of the MOES – discussed at the Inter-Branch Council on VET.The council made a resolution, which the COM followed up by encouraging the State Tax Administration to liftthe tax on VET schools. The Tax Administration rejected the request, arguing that the exemption from taxwould leave a hole in the state budget. Instead the Tax Administration suggested that the MOES should seekadditional funds from the state budget and from employers.

under-funding of VET continued, and inaddition only 94% of the budgeted fundswere actually allocated, though this was animprovement on 78% in 1998 and 88% in199959. Although the 2003 budget wasincreased, it is still insufficient (believed tobe covering only around 40 to 50% of theactual needs), to such a degree that theMOES views it as a ‘survival budget ratherthan a development budget’ (MOES/Academy of Pedagogical Sciences, 2003).

The consequence of years ofunder-funding is a severe decapitalisationof the VET system, with disastrousconsequences for the quality of VETprovision. One aspect that the MOES isgiving especially concerned with is theoutdated training equipment. As Figure 10shows, most of the equipment in use isover 10 years old and almost half of it isover 20 years old. Clearly the broken link toenterprises, which previously supportedVET schools by donating equipment, is oneof the reasons for the presence of outdatedequipment in most VET schools.

During the past five years, only 90 of the368 textbooks planned have beenpublished, illustrating that modern teachingmaterials have become a scarcecommodity in the VET system. In addition,most VET schools have not beenmaintained or modernised for years. Thegeneral condition of buildings is thereforepoor.

As well as old equipment and outdatedtextbooks, the quality and relevance oftraining has been negatively affected. Thepoint is not simply to replace oldequipment, but rather to introduce newtypes of equipment that mirror thetechnology used in modern productionprocesses. Updating (new and different)equipment can be considered a vitalprecondition for being able to offer relevantdemand-oriented VET. Consequently, ahuge investment in school maintenanceand modernisation is needed tore-establish the right infrastructure for VET.

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0

10

20

30

40

50

60

70

80

90

100

Metalprocessing

Woodprocessing

Industrialsewing

Welding Trucks Otherequipment

up to 9 years 10 to 20 years more than 20 years

Figure 10: Age of equipment (%) – 2003

Source: ‘Information – Analytical and Statistic Material on the Status and Development Problems of Vocational

Education in Ukraine’, prepared for the hearings in the Verhovna Rada’s Committee for Science and Education

on status and development problems of vocational education and improvement of legislation, Ministry of

Education and Science of Ukraine and the Academy of Pedagogical Sciences of Ukraine, February 2003.

59 Data could indicate that the execution percentage for VET (perhaps for education in general) is lower thanoverall public budget execution percentage. This could lead to the conclusion that (i) an ‘administrative’allocation of public funds does not follow the politically established priorities; and (ii) the administrativeallocation process neglects VET. However, additional data is needed to support such conclusions. For insightinto the fiscal discipline in Ukraine see ‘Fiscal Discipline and Budgetary Institutions in Ukraine’ (Nazarovets,2001).

The MOES has devoted a great deal ofeffort to alerting members of Parliamentand the COM to the financial problems ofVET and its consequences. Thedevelopment of a sustainable fundingscheme is regarded as being vital if themodernisation of VET is to be broughtforward. The MOES has proposed theintroduction of a VET levy of 1 to 2% ofenterprises' profit; this, together with taxexemption for VET schools'income-generating activities and anincreased state budget, should secure thenecessary funding for VET provision andreform of the VET system.

Although the VET system is chronicallyunder-funded, it is also clear that financialmanagement itself and especially thecost-effectiveness of VET provision needsto be critically reviewed. Observationsindicate a waste of scarce resources, forexample on power and public utilities dueto run-down facilities, wasteful attitudes,expensive management procedures andhigh staffing levels.

In addition, a critical review and reform ofcurricula (content and duration), thenumber of training programmes offered,possible costly overlaps within the systemand between VET providing systems (forexample between VET provided by theMOES and the Ministry of Agriculture) andpedagogical practices are likely to add tothe cost-effectiveness and efficiency of thesystem.

Our findings show, firstly, that the VETsystem is chronically under-fundedbecause the state has been unable andperhaps unwilling to cover the financialresponsibilities of VET, which werepreviously shared between the state andthe enterprises. A chronically under-fundedVET system is showing signs of fatigue, ofwhich the most alarming is the MOES'statement that the system is financiallyunable to reform itself given the presentallocation level (MOES/Academy ofPedagogical Sciences, 2003). Finding asustainable solution to the financialproblems of VET should therefore be giventhe highest priority. The issue is highlycomplex because it goes to the heart of theVET system and is likely to be politicallysensitive, especially at a time when the

forthcoming presidential election in 2004 ismoving up the political agenda. If theproblem is not addressed, VET in itspresent structure will become increasinglyirrelevant to enterprises, so that it fails tofacilitate economic development.

Such a scenario is likely to become abarrier to SMEs especially, whichtraditionally do not have the resources tomeet their own training needs. Moreseriously, VET could become veryfragmented and incoherent as enterprisestry to meet their needs for qualified staffthrough their own initiatives and therebystart an undesirable trend.

Secondly, the state ordering system doesnot seem to hold within it the capacity tofacilitate the meeting of training demandsthrough its financing mechanisms. Furtherstudies should be made into the functioningof the state ordering system and the extentto which it is a relevant financing methodfor a reformed VET system. In this regard,the division of responsibility and financialprocedures existing between the MOES,MOE and MOF should be reconsidered,with a view to increasing allocationefficiency, transparency and streamlinedprocedures.

Thirdly, financial solutions should be linkedto a critical review of the entire financialmanagement of the system with the aim ofincreasing the cost-effectiveness andefficiency of the system. At all stages of thereform process it is vital that decisionmaking is based on correct information andan information system that can generaterelevant data to facilitate cost-effectivemanagement and reform monitoring. Toachieve this, the MOES needs to build amanagement information system that canbecome an effective tool in steering thereform process and strengthening thefinancial management of the system.

Fourthly, the poor and outdated equipmentand textbooks used, along with the lack ofschool maintenance, are in themselvesnegative factors. However, re-equippingand maintaining VET schools after years ofneglect is a Herculean financial task thatwill require special attention and to whichenterprises will need to contribute.

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Clearly the above points are interlinked,and represent some of the main areas thatshould be addressed in the process ofmodernisation for VET financing.

3.8 LEGAL FRAMEWORKGOVERNING VET

As mentioned previously, the legalframework governing VET is influenced bya number of government and politicalbodies. These bodies have issued anumber of documents that togetherconstitute the framework governing VET.However, other legal documents, notdirectly targeted at VET, also influence it.For example, application of the tax law andregulations makes income-generatingactivities of VET schools taxable. This innot only counter-productive for the MOESefforts to improve the financial situation inschools, but it is one among the manylegislative issues that make it difficult toclearly define the legal frameworkgoverning VET. Consequently, this chapterwill be limited to discussing only the legalframework directly governing VET.

In order to respond immediately to thepolitical and socioeconomic changes in thecountry, the legislative reform initiatives inVET were given priority, and began in theearly 1990s before any of the otherreforming processes in education. The firstpolitical acts of the country regulated therights of the citizens to receive VET as wellas the function and provision of VET.

The resolutions of the COM and the jointresolutions of different ministries approvedthe general concepts of VET and describedthe basic goals of VET training inconditions of transition to a marketsituation. They specified the foundingprinciples of the VET institutions, theircustomers and services, types and levelsof training, and the arrangements forpractical training. Close cooperationbetween the VET schools and the publicemployment services was declared as oneof the priorities.

The newly developed law ‘On Education’(1991) did not provide any regulation ofspecific requirements of the VET system.

Therefore amendments to the law had tobe introduced in March 1996. Theamendments defined the goals of VET asthe creation of opportunities for citizens toacquire professions in accordance withtheir wishes, interests and abilities, inaccordance with the list of relevantprofessions, approved by the COM.However, the amendments added in March1996 were not in line with the newconstitution, adopted in July 1996.

The constitution defined the basic rights ofcitizens, including the right to work andaccess for all to free VET. It prioritised thedevelopment of the VET system andencouraged the process of developing alegislative framework that could stimulatethe necessary changes. This gave rise tothe second stage of the legislative VETreform process.

The second stage of the legislative reformin VET focused on the internal reshaping ofthe system. The decree of the president‘On Basic Directions of Reforms in theVocational and Technical Training Systemof Ukraine’, dated 8 May 1996, defined thebasic short-term goals and detailedobjectives for the reform of the VET systemto be carried out in the period 1996 to2000. The decree mentions measures tobe undertaken to restructure the system,such as:

� development of a new list of professionsfor training of qualified workers atvocational schools and industrialenterprises;

� development of a state standard forvocational and technical training;

� improvement of the organisation andprocedure of licensing; and

� development of the network of VETinstitutions.

The number of professions and specialtieswere reduced from more than 800 to 260.There was a transition fromone-dimensional to multi-dimensionalprofessions, and changes in amendmentsto the Classifier of Professions were made.

Ukraine was the first country in the NIS tohave a specific VET law. The law ‘OnVocational Education’, of February 1998,

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set out in 12 sections and 47 articles,includes concrete measures for theimplementation of VET in Ukraine. The firstsection provides general regulations andmain definitions, and subsequent sectionscover various arrangements, includingthose for the provision of education andtraining, the organisation and content of thecurricula, and special needs.

In order to comply with the provisions ofthis law, the COM, the MOES, and otherministries and central executive powerauthorities have developed and adopted anumber of important acts, covering:

� higher vocational colleges and centresfor vocational education;

� procedures for offering job placementsto those enrolled in VET institutions forindustrial training and work experience;

� state standards for vocationaleducation;

� the core structure of curricula fortraining qualified workers in vocationaltraining institutions and the corestructure of curricula in highervocational colleges.

All of these acts affected the structuralchanges of the system, the content-relateddevelopments, vocational practical trainingimprovements, and the monitoring of thedevelopment process.

The legal framework governing training

of unemployed people

In order to improve the social and labourrelations of the VET schools and todevelop social partnerships, several actswere adopted. For example, theInter-Branch Council on VocationalEducation and Training was established inaccordance with the resolution passed bythe COM in April 1998. Despite thecouncil’s potential to have a guiding andcoordinating role, it does not seem to beinfluential, so that the relevance of thecouncil to VET reform seems to be limited.

In order to govern VET for unemployedpeople, the MOLSP initiated legislative actsthat facilitated the:

� provision of VET for unemployed peoplebased on a modular approach;

� introduction of competitive selection oftraining providers for the training ofunemployed people;

� development of contracts betweeneducational institutions, enterprises andunemployed people;

� improvement of the competencies ofunemployed people.

For the purpose of enhancing thequalifications and skills of employees inenterprises, the Regulation on theprofessional training of staff in enterpriseswas developed and approved by theMOES and the MOLSP. Though the legaldevelopment process involved bothministries, it does not seem to have beenpossible always to marry the differentinterests and approaches. This might bemore visible at the implementation levelthan at the policy level.

VET reform through legal instruments

Ukraine has taken a number of importantsteps to strengthen the rule of law and tostrengthen institutional and administrativereforms. However, the need for legislativereform is far from being fulfilled.

The VET system, like those of the otherformer Soviet states, is firmly rooted in law.Therefore, the natural starting point forVET reform has been to make adjustmentsto the legal framework governing VET.Consequently we have seen a wealth oflaws, regulations and decrees, all claimingto be important, but very little has changedin the VET schools. A popular saying of theformer Soviet countries describes thesituation well: ‘Laws are issued to beignored’.

The first phase of the legislative reform ofVET was hastily carried out over a verybrief period of time, which was notsufficient to allow thorough consideration ofthe direction and impact of these changes.As a result, amendments to the acts havebeen necessary. In February 2003 therecommendations based on the hearings inUkraine's Verhovna Rada’s Committee forscience and education ‘On the Status andDevelopment Problems of VocationalEducation and Improvement of Legislation’highlighted the necessity of introducingchanges to current legislation, because it

48


does not fully promote the effectiveness ofVET and because a number of laws andregulations contradict each other. In itsreport to the committee, the MOESrecommended the introduction of changesand supplements to the laws ‘OnEducation’, ‘On Vocational Education’, andother Ukrainian laws in order to bring VETrelated legislation in line withsocioeconomic needs.

The majority of regulations are stronger onstating policy priorities than onimplementation guidelines. In a system stilllargely managed in detail through laws andregulations, this often leads to a gapbetween the legal requirements and theinstruments and resources available to fulfilthem, which naturally creates frustration atlower levels. For example, the regulationsrequiring VET schools to strengthen theircooperation with enterprises have broughtabout little change, although they wereissued as long ago as the early 1990s.However, supporting legislative documentscontaining guidelines and mechanisms tofacilitate a new social partnership werenever issued. VET directors, accustomedto acting according to legal orders,ventured with hesitation into unchartedterritory.

The lack of coordination between thebodies responsible for the legislativeframework in different areas is seen asanother major problem hampering thedevelopment of VET reforms in Ukraine. Inparticular, there is a need for coherencebetween financing initiatives in VET andother areas of VET reform. Only through abetter balance between the legalrequirements and the financial resourcesavailable for their implementation can theVET reform process become a reality.

The above illustrates, firstly, the fact thatVET reform has been addressed mainlythrough an overemphasis on legalinstruments, and it is evident today thatreform of the VET system cannot beachieved through laws and regulationsalone. This brings into focus the question

or whether the MOES should be engagedin detailed legislative work at all, orwhether the ministry should increasinglyfocus on developing the legal frameworkfor VET provision and leave the details tolower-levels administrations and the VETschools themselves. It is debatablewhether a modern demand-driven VETsystem can be regulated in detail from thecentre. The need to be responsive to locallabour market needs demands lessdetailed regulation and more focus onprovision. Moving from a detailedinput-management approach towards aframework approach that is focused onoutcomes clearly requires a neworientation of the responsibilities of theMOES and of the way VET is managed.

Secondly, it illustrates the need to analyseand review the entire legislative frameworkgoverning the field of VET in order tostrengthen its operational relevance andestablish coherence with the legislativeframework governing labour andemployment.

Thirdly, the present legal framework doesnot give employers a legal position withregard to VET policy development,financing, management or provision. Thereis a need to include all the stakeholders inthe legislative process and to ensure thatsocial partnership is written into VET lawsand regulations. Informal butinstitutionalised consultations involvingsocial partners, regional and municipalauthorities, and VET schoolrepresentatives in broad discussions ofVET legislation before its ratification mightcontribute to its appropriateness and theeffectiveness of its implementation.

Fourthly, it will be appropriate to update thefunctions of the Inter-Branch Council onVocational Education and Training,focusing on guiding and coordinating VETand employment efforts, and to secure theallocation of sufficient resources to supportefficient and cost-effective VET provision.The involvement of the relevant ministriesand employers should be secured.

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4. CONCLUSIONS

4.1 THE COMPLEXITY OF THEUKRAINIAN VET SYSTEMREFORM: SYSTEM-WIDE ANDSYSTEM-DEEP REFORMS

The study shows that the Ukrainian VETsystem is heavily linked to the overalltransition process which is changing theentire fabric of society.

In this process, the Ukrainian VET systemreform has reached a crossroads at whichfundamental issues need to be addressedin order for the VET system to regain itsrelevance to the individual and theeconomy. Bringing the reform processforward is not only a question of reformingeach individual VET institution, through, forinstance, improving the relevance of theirservices and quality of training provision. Itis just as much a question of reforming theinstitutional interface between theinstitutions and between them andstakeholders outside the systemdependent on their services and trainingprovision. A modern VET system is notonly characterised by its internal structuresand content but just as much by how itinteracts with other systems/sectors.

Therefore continued VET reform should beconsidered both as a system-wide andsystem-deep reform process.

System-wide reform

System-wide reform relates to the need forcomprehensive change in practically allinterconnected elements of structures andcontents of the Ukrainian VET system. Theindividual aspects or ‘building blocks’ of theUkrainian VET system are closelyinterlinked, for example, the need fordemand driven competency basedcurricula will demand teacher/instructortraining and probably also new teachingand learning facilities and equipment.

‘A change in one aspect of the VET systemwill therefore trigger off a whole chain ofrelated changes in order to make thatparticular change work. If the widerimplications of change have not beenconsidered or are not allowed to happen,such partial change is likely to remainisolated and be short-lived. System-widechange therefore requires a well-designedand coherent strategy for change with clearand transparent objectives, a good choice

51

4

of strategic interventions based on anefficient use of resources and capacities,and effective assessment and feedbackmechanisms’60.

System-deep reform

A comprehensive view on reforming a VETsystem in a transition period requires areshaping of the system’s interactingcomponents, boundaries, inputs andoutputs, feedback and relationships withother systems and outside stakeholders.As the social and economic transitionprocess progresses, the Ukrainian VETsystem cannot provide relevant serviceswithout being in constant dialogue withsociety, to finetune its abilities anddeliveries. This means that the VET systemmust develop new institutionalised (formaland informal) relationships with students,social partners, labour and employmentauthorities (the labour market andeconomic system), financial and economicauthorities and the political system. Suchreshaping of system-deep relationships islikely to call for a radical redefinition of therole of VET and the mind set underpinningits organisation and operation61.

Awareness of the need for system-wideand system-deep reform is increasinglypresent within the Ukrainian VET systemitself and is beginning to spread to policymakers and employers. While thesystem-wide challenges seem easier toidentify and address because they arelinked to existing structures, system-deepchallenges seem more difficult to come toterms with. As a result, the findingsdescribed on the following pages relatemainly to the system-wide challenges whilemany should be considered equallyimportant for addressing the challenges ofsystem-deep reform.

4.2 FINDINGS ANDRECOMMENDATIONS

The National Doctrine on Education is thelatest framework document coveringreforms in different parts of the educational

system. From the Doctrine, it is clear thatsuccessful reform of the VET system reliesalso on a new understanding of VET and ofits role in the Ukrainian society. In supportof this, a new ‘concept on VET’ is presentlybeing developed by an expert workinggroup established by the MOES with theassistance of ETF. The working grouptabled the draft concept at the end ofNovember 2003, for comment by areference group composed of key VETstakeholders. It is intended that the newVET concept will guide the reform processforward both in terms of system-wide andsystem-deep reform initiatives. In light ofthis, the study points to the followingfindings under three main headings.

4.2.1 THE RELEVANCE OF VET

Curriculum development

VET provision is not geared to meetingnewly emerging labour market demands,neither in terms of detecting needs nor interms of responding to them. As a resultwe see that students are increasinglychoosing not to enter into VET, andevolving enterprises are increasinglylooking for alternative training options.Although fragmented capacity does existfor developing more demand-orientedcurricula, this capacity needs to be pooledand to be linked to institutionalised socialpartnership approaches and proceduresthat have local relevance. We would alsosuggest that:

� The work that has already begun toreduce the many specialities currentlyprovided should be continued.

� General and technical subjects shouldbe better interlinked, both in thecurricula and during the actual teaching.

� Practical application of theory (throughworkshops and placements) should bemaintained and possibly furtherstrengthened.

� Simple procedures should beestablished for curriculum developmentand implementation, which can facilitateemployers’ involvement.

52


60 ‘Learning Matters – Sharing Experience from the Past for the Future’, Discussion Paper presented by PeterGrootings at ETF Advisory Forum Conference, November 2003.

61 ibid.

The opportunity to shape the curriculumto local needs should be used not forstaff and institutional interests, but tomake curricula relevant to the localeconomy.

� The strength that exists within thesystem at regional and school levelshould be utilised, rather than attemptsbeing made to centralise the standardand curriculum development process.The MOES should increasingly steerand guide the process, while the actualstandard and curriculum developmentshould be carried out at regional andschool level with the involvement ofemployers. This will create systemownership and revitalise unusedresources within the system.

� Existing labour market and employmentinformation should be used increasinglyin steering the standard and curriculumdevelopment process. In addition, theexisting labour market and employmentinformation system should increasinglyobtain information that can be used insuch a steering process.

Continuing vocational training

CVT cannot meet the growing need fortraining. As the economy continues torecover, the need for upgrading of skills isexpected to increase. The existing capacityof the system is likely to be insufficient, asis the system’s capacity to translate thequantitative needs detected into targetqualitative training interventions. Theexisting cooperation between the MOESand MOLSP should result in proceduresthat can detect skill needs at an earlystage. Labour market and employmentinformation should also include informationthat can identify skill changes withinoccupations. Both ministries shouldactively facilitate enterprises' opportunitiesfor undertaking in-company training,through a de-bureaucratisation ofprocedures.

4.2.2 THE QUALITY OF VET

Teacher training

The competence of teachers andinstructors is not sufficient to meet the

need for new pedagogical teachingmethods and new technical skillrequirements. Based on a developedteacher training strategy, changes topre-service and in-service teacher trainingshould be made as soon as possible.Donor projects and the study implementedby the National Observatory offer concretesuggestions that should be implemented assoon as possible. The pilots withinin-service training should be reviewed assoon as possible, and if the results arepositive, measures should be implementedmore widely.

Training facilities

Training facilities and equipment areoutdated. As soon as resources areavailable, investment in the maintenanceand upgrading of buildings and equipmentshould be increased. Upgrading andmodernisation of training facilities shouldbe carried out locally and in closecooperation with employers.

Modernising training facilities and updatingschools’ equipment is likely to be a verycostly undertaking that, at present, itseems unlikely the Government can afford.In order to raise the funds required, as itwould be untraditional to offer enterprisestax deductions for their investment in VET,it is more likely that they would be askedfor a financial contribution. An alternativeway to overcome to some extent the lack ofadequate equipment in schools would be toincrease practical training in enterprises.

4.2.3 VET GOVERNANCE,PLANNING AND FINANCING

VET governance

Steps should be taken to develop a formatfor social dialogue, which could lead to asocial partnership model for the VETsystem. What has been done so far in thisfield is still too fragmented and sporadic toconstitute a deliberate social partnershipmodel. Employers’ organisations do notseem to have the capacity to articulatetheir policy on education and VET. Thisshould not, however, discourage theMOES from entering into a dialogue with

53

4. CONCLUSIONS

them. Instead, the MOES shouldencourage employers to formulatecomprehensive opinions on VET policies.

VET planning

Management of the VET system should bedecentralised as much as possible. TheMOES should focus on overall systemsteering, monitoring and guidance. Thus,the MOES should continue itsconsiderations regarding decentralisation.

The state ordering system is not designedfor a situation in which individual andmarket needs increasingly determine thedemand for VET. The system shouldgradually be replaced with one that is moredecentralised and demand-oriented.

Labour market and employmentinformation gathered by the employmentauthorities should increasingly be used foroverall VET planning. For this purpose theexisting labour market and employmentinformation system could be extended toinclude education and training information.

VET financing

There is a lack of funds owing to anunsustainable funding scheme. Increasedpublic funding is likely to be insufficient tomake up for years of neglect; employers'contributions, therefore, are very likely tobe needed in the longer run. Employers’direct financial contributions are likely toincrease their interest and commitment totraining. The MOES should initiate adialogue with employers on possible waysthey could contribute to the funding of VET.

Considerations of effectiveness andefficiency do not adequately determineresource allocation and use. The VETsystem lacks a management informationsystem and administrative instruments thatcan be used for monitoring and help toimprove effectiveness. Traditional andinstitutional standards and norms need tobe reviewed with a view to bringing costs inline with financial capacities and applyingmodern public management principles.

54


ANNEXES

55

AN

NE

XA

:S

TA

TIS

TIC

AL

INF

OR

MA

TIO

N

Tab

le1:

Main

eco

no

mic

ind

icato

rsan

du

nem

plo

ym

en

tra

tes

–1990-2

003

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

RealG

DP

%ch

anges

ove

rth

esa

me

period

ofth

epre

vious

year*

-4.0

-8.7

-9.9

-14.2

-22.9

-12.2

-10.0

-3.0

-1.9

-0.2

5.8

9.0

4.6

***

5.3

****

Consu

mer

price

infla

tion

%**

--

30.8

47.5

13.2

9.1

2.9

0.8

1.6

1.5

1.9

0.5

0.9

***

-

Unem

plo

yment%

**-

0.3

0.2

90.3

50.3

60.5

31.4

92.7

44.3

05.3

85.3

14.5

33.8

***

�ofw

hic

hw

om

en

%-

-79

75

73

73

67

65

62

62

--

--

�ofw

hic

hm

en

%-

-21

25

27

27

33

35

38

38

--

--

Unem

plo

ymentLF

S%

--

--

-5.6

7.6

8.9

11.3

11.9

11.5

11

10

9.5

�ofw

hic

h15-2

4ye

ar-

old

s%

--

--

-14.3

18.3

22.7

22.5

26.5

--

--

Sourc

e:

*U

kra

ine

Econom

icT

rends,Q

uart

erly,M

arc

h2000

and

Decem

ber

2001

Issues,U

EP

LA

C.

**U

kra

ine

Econom

icT

rends,Q

uart

erly,D

ecem

ber

2001

Issue,U

EP

LA

C;S

tatistics

ofU

kra

ine’s

Econom

y,In

stitu

tefo

rE

conom

icR

esearc

hand

Polic

yC

onsultin

g;and

Quart

erly

Pre

dic

tions,

#19,A

pril2002

and

#22,firs

tquart

er

2003,IC

PS

.

***

Month

lyE

conom

icM

onitoring

Ukra

ine

No

4,A

pril2003,In

stitu

tefo

rE

conom

icR

eseach

and

Polic

yC

onstr

uction;and

New

sle

tter

No

165,11

Novem

ber

2001,IC

PS

.

****

Month

lyE

conom

icM

onitor

Ukra

ine

No

10,O

cto

ber

2003,In

stitu

tefo

rE

conom

icR

eseach

and

Polic

yC

onstr

uction.

Tab

le2:

Perc

en

tag

eo

fG

DP

allo

cate

dto

ed

ucati

on

an

dV

ET

–1991

an

d1995-2

002

1991

1995

1996

1997

1998

1999

2000

2001

2002

Educa

tion

as

%ofG

DP

3.8

4.3

4.4

4.2

3.9

3.6

4.0

4.7

-

VE

Tas

%ofG

DP

--

--

0.2

50.2

20.2

50.2

90.2

6*

Note

:

*C

alc

ula

tion.

Sourc

e:‘

Qualit

yassura

nce

and

educationalm

anagem

entatprim

ary

and

secondary

levelin

Ukra

ine’,

base-lin

estu

dy

report

,M

inis

try

ofE

ducation

and

Scie

nce,S

epte

mber

1997,p.24;‘U

kra

ine

Econom

icT

rends’,

Quart

erly

Issue,U

EP

LA

C,D

ecem

ber

1999,p.58;N

ationalO

bserv

ato

ryofU

kra

ine,2003.

56


Tab

le3:

Nu

mb

er

of

VE

Tstu

den

tsan

dV

ET

sch

oo

ls–

1994-2

002

1994

1995

1996

1997

1998

1999

2000

2001

2002

VE

Tst

udents

629,3

96

572,8

00

537,7

73

526,4

64

527,2

00

527,0

00

523,3

00

511,0

00

500,6

00

VE

Tsc

hools

1185

1177

1146

995

989

977

966

960

957

Sourc

e:I

nfo

rmation

supplie

dby

the

Min

istr

yofE

ducation

and

Scie

nce,2003.

Tab

le4:

Up

per

seco

nd

ary

an

dV

ET

en

rolm

en

t(g

ross

rate

s,%

of

15-1

8p

op

ula

tio

n)

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

Upper

seco

ndary

genera

leduca

tion

25.3

25

24.4

23.3

22.8

23.6

24.1

25.5

27.4

29.3

31.1

VE

T40.3

39.6

39.5

39

36.5

34.7

33.4

32.6

30.1

28.6

-

Upper

seco

ndary

tota

l65.6

64.6

63.9

62.3

59.3

58.3

57.5

58.1

57.5

57.9

-

Sourc

e:‘

Adecade

ofT

ransitio

n',

Regio

nalM

onitoring

Report

No

8,U

nic

efIn

nocenti

Researc

hC

entr

e,F

lore

nce,2001.

57

ANNEXES

Tab

le5:

Un

em

plo

ym

en

tra

teb

yed

ucati

on

att

ain

men

tan

dag

eg

rou

p–

1998-2

001

(%)

Men

Wo

men

To

tal

ISC

ED

0-2

ISC

ED

3IS

CE

D5-7

ISC

ED

0-2

ISC

ED

3IS

CE

D5-7

ISC

ED

0-2

ISC

ED

3IS

CE

D5-7

1998

25-2

9ye

ars

11

16

13

915

10

10

16

12

30-3

9ye

ars

815

10

813

88

14

9

40-4

9ye

ars

613

76

12

76

11

7

50-5

9ye

ars

58

73

11

54

10

6

25-5

9ye

ars

814

96

12

87

12

8

1999

25-2

9ye

ars

12

16

11

12

16

912

16

10

30-3

9ye

ars

814

99

13

98

13

9

40-4

9ye

ars

714

88

12

87

13

8

50-5

9ye

ars

612

74

10

55

11

6

25-5

9ye

ars

816

98

13

88

14

8

2000

25-2

9ye

ars

18

16

14

13

16

11

16

16

12

30-3

9ye

ars

16

11

911

14

10

14

12

9

40-4

9ye

ars

10

10

76

12

88

11

8

50-5

9ye

ars

410

62

11

73

10

7

25-5

9ye

ars

10

12

97

13

99

12

9

2001

25-2

9ye

ars

16

13

11

15

14

915

13

9

30-3

9ye

ars

19

12

915

14

817

13

9

40-4

9ye

ars

b13

10

78

13

811

11

7

50-5

9ye

ars

510

62

10

64

10

6

25-5

9ye

ars

12

11

88

13

810

12

8

Sourc

e:N

ationalO

bserv

ato

ryofU

kra

ine,2003

58


ANNEX B: SYNOPTIC OUTLINE OF THE VOCATIONALEDUCATION AND TRAINING SYSTEM

59

ANNEXES

So

urc

e:N

atio

na

lO

bse

rva

tory

ofU

kra

ine

,2

00

3A

ge

ISC

ED

Le

vel

2 1 0357 62

1

20

19

18

17

16

15

14

13

12 11 10 6

VE

Tsy

ste

mm

an

ag

ed

by

MO

ES

VE

Td

epa

rtm

en

t

Junio

rle

vel p

rofe

ssio

nal

Junio

rle

vel p

rofe

ssio

nal

Hig

hsk

ille

dw

ork

er

leve

l III

1-2

ye

ars

Hig

hsk

ille

dw

ork

er

leve

l III

1-2

ye

ars

Mu

lti-

skill

ed

wo

rke

rle

vel I

I1

-1.5

ye

ars

Mu

lti-s

kille

dw

ork

er,

leve

l II

•w

ithu

pp

er

seco

nd

ary

ed

uca

tion

3ye

ars

Mu

lti-s

kille

dw

ork

er,

leve

l II

•w

ithu

pp

er

seco

nd

ary

ed

uca

tion

3ye

ars

Mu

lti-

skill

ed

wo

rke

r,le

vel I

I1

-1.5

ye

ars

Ski

lled

wo

rke

r,le

vel I

1-6

mo

nth

s

Ski

lled

wo

rke

r,le

vel I

1-6

mo

nth

s

Up

pe

rse

con

da

rye

du

catio

nU

pp

er

seco

nd

ary

ed

uca

tion

Up

pe

rse

con

da

rye

du

catio

n

Lo

we

rse

con

da

rye

du

catio

n

VE

Tsy

ste

mm

an

ag

ed

by

MO

ES

hig

he

re

du

catio

nd

epa

rtm

en

t

ANNEX C: MINISTRY OF EDUCATION AND SCIENCEORGANIGRAM

60


Lin

em

an

ag

em

en

t

Fre

qu

en

tco

mm

un

ica

tion

&co

op

era

tion

So

urc

e:N

atio

na

lO

bse

rva

tory

Ukra

ine

Pe

rso

nn

el

&L

eg

al

Affa

irs

Min

iste

rS

ecr

eta

ria

t

First

De

pu

tyM

inis

ter

De

pu

tyM

inis

ter

Re

sea

rch

&S

cie

nce

De

pu

tyM

inis

ter

Fin

an

ce&

Eco

no

my

De

pu

tyM

inis

ter

Hig

he

rE

du

catio

n

De

pu

ty

Ge

ne

ral &

VE

T

Min

iste

r

Sci

en

ce&

Tech

no

log

ica

lD

eve

lop

me

nt

Inn

ova

tion

Ad

m.&

Lo

gis

tic

Eco

no

my

&F

ina

nce

VE

Tse

ctio

n(5

)

Hig

he

rE

du

catio

n

Lic

en

se&

Ce

rtifi

catio

nV

ET

sect

ion

VE

TV

ET

con

ten

t(9

)S

oci

al &

Ed

uca

tion

al

wo

rk(1

0)

Pre

sch

oo

l,G

en

era

l &S

eco

nd

ary

Re

sea

rch

&M

eth

od

olo

gic

al

Ce

ntr

e(4

7)

Sta

teIn

spe

ctio

nB

oa

rdV

ET

sect

ion

(8)

Sta

teC

ert

ifica

tion

Bo

ard

Su

b-b

oa

rdo

nV

ET

Inte

rna

tion

al

rela

tion

s

Acc

ou

ntin

g&

Au

dit

ANNEX D: PERSONS AND ORGANISATIONS VISITED

Ministry of Education and Science

Mr Victor Ogvujk, Deputy Minister of MOES

Mr Vitaliy Tomashenko, Director of VET Department, appointed Deputy Minister of MOESfrom September 2003

Ms Svitlana Danylenko, Deputy Director of Economics and Social DevelopmentDepartment

VET schools

VET school No 2, Kiev

VET school No 29, Kiev

VET school in Belaya Trsekov

People met during educational events in March and May 2003

Ms Valentina Kutova, VET Education Authorities in Vinnitsa region

Mr Valentin Chagin, Head of VET Educational Authorities in Kiev

Mr Timofey Desayatov, Head of Education Authorities in Cherkassy Region

Mr Igor Klukin, Education Authorities in Odessa Region

Mr Ludmila Shevchuk, Director of the Khelmintski Regional Methodological Centre of VET

Mr Volodimir Kobersky, Director, VET school No 32, Hushentsy

Mr Sergiy Ogorodnikov, Director, High School No 42, Pogrebische

Mr Victor Kovalenko, Director, VET school No 3, Kiev

Mr Ivan Pilipiv, Director, School No 34, Stryi

Ms Ludmila Gorodechna, Deputy Director, VET school No 26, Odessa

– and many others

Academy of Pedagogical Sciences of Ukraine

Ms Nellya Nychkalo, Academician-Secretary of VET Department of Academy ofPedagogical Sciences of Ukraine

Education and Science Committee of the Verhovna Rada

Mr Stanislav Nikolaienko, Head of Education and Science Committee of the VerhovnaRada

61

ANNEXES

Cabinet of Ministers of Ukraine

Mr Volodymyr Vovk, Head Consultant of Scientific, Technical and Human DevelopmentAdministration of Secretariat of the Cabinet of Ministers of Ukraine

Administration of the President of Ukraine

Mr Volodymyr Golyb, Head of Department of Human Policy Board of Administration of thePresident of Ukraine

Ministry of Labour and Social Policy

Ms Ludmila Shcherabk, Deputy Head of Employment Policy and Labour Migration Board ofMinistry of Labour and Social Policy

Ms Tatiyana Petrova, Ministry of Labour and Social Policy

State and regional employment centre

Ms Ludmila Yanevich, Head of the Department of the State Employment Centre

Mr Leonid Shayan, Employment Centre, Kiev

Ms Zhelyanska, Employment Centre, Kiev

Ministry of Agriculture Policy

Ms Tataiya Ishenko, Methodical Centre of Ministry of Agriculture Policy

National Observatory of Ukraine

Ms Olga Shcherbak, Director of Kyiv Anton Makarenko Professional Pedagogical College,Leader of National Observatory

Mr Olena Zaytseva, Project Manager

Federation of Employers of Ukraine

Mr Oleksiy Miroshnychenko, Head of Federation of Employers of Ukraine

Companies

Antonov Company Training Centres

Mr Vitaly Oliynik, Ukrtransauto Transport Company Ukraine

Ms Iryna Dudnik, Head of Staff Training Department, Joint Stock Mining Company, Poltava

Mr Ivan Tupik, Head of Staff Professional Development, Joint Stock NovokramatorskMachinery Plant

Mr Oleksander Shcherbina, Deputy Director of Personnel Development, State Plant,Kivorogstal

62


Ukrainian Centre for Independent Political Research

British Council

Ms Olena Gorsheneva, Project Manager

European Commission’s Delegation to Ukraine, Moldova and Belarus

Ms Alla Seletska, Project Manager, Education

Mr Michel Zayet, Project Manager, SME and Enterprises

German Embassy

Ms Elena Junatzka, Kreditanstalt für Wiederaufbau

Kultur Kontakt, Austria

Mr Hans Schustereder, Project Manager

Ukrainian Inter-Branch Centre of Modular Training, ILO

Mr Vasilii Koval, Project Manager

International Renaissance Foundation

Southern Alberta Institute of Technology, Canada

Ms Wendy Yurka, Corporate Training – International

UNDP

Ms Olga Kovalenko, Project Manager

Ms Alina Martynenko, PR Manager

World Bank, Kiev

Ms Olena Bekh, Project Manager

63

ANNEXES

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Akimova, I. and Schwödiauer, G., ‘Determinants of Enterprise Restructuring in Ukraine: theRole of Managerial Ownership and Human Capital’, Working Paper No 13, Institute forEconomic Research and Policy Consulting, March 2002.

Åslund, A., ‘Why has Ukraine Returned to Economic Growth?’, Working Paper No 15,Institute for Economic Research and Policy Consulting, July 2002.

‘Child and Family Welfare in Ukraine: Trends and Indicators’, Background paper preparedfor Regional Monitoring Report No 8: A decade of transition, Unicef, 2001.

Considine, M.S., ‘SME Growth in Ukraine Spurs Private Sector’, BISNIS Bulletin,June 2003.

‘Desperately Seeking Economic Recovery. Why Is Ukraine's Economy – and Russia's –Not Growing?’, Transition Newsletter, World Bank, April 1997.

‘Economic Growth with Equity: Ukrainian Perspectives’, Discussion paper No 407, WorldBank, 2000.

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‘Economic Statistics in Ukraine’, Policy Studies No 13, International Centre for PolicyStudies, November 2000.

‘Economic Statistics’, Issue No 33, International Centre for Policy Studies, July 2003.

Education at a Glance 2002, OECD, 2002, Table B2, 1a.

‘EIU viewswire’, The Economist, Economist Intelligence, 2 August 2002(www.viewswire.com).

Finnikov, T., ‘System of the Higher Education’, Background paper written in connectionwith the Educational Policy Support Programme, IRF/UNDP, September 2001.

‘FN: Ukraines befolkning vil falde med 30%-50% inden 2050’, Dansk-Ukrainsk Selskab,22 May 2003.

‘Fortsat vækst i det ukrainske BNP’, Dansk-Ukrainsk Press Service, 17 April 2003.

Frey, B.S. and Schneider, F., ‘Informal and Underground Economy’,(http://www.economics.uni-linz.ac.at/Schneider/informal.PDF).

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REFERENCES

LIST OF ACRONYMS

CAS Country assistance strategy

CIS Commonwealth of Independent States

COM Cabinet of Ministers

CSP Country strategy paper

CVT Continuing vocational training

EC European Commission

EET Entrepreneurship in education and training

ETF European Training Foundation

EU European Union

ICPS International Centre for Policy Studies

ILO International Labour Organisation

IRF International Renaissance Foundation

ISCED International standard classification of education

KfW Kreditanstalt für Wiederaufbau

LFS Labour force survey

MES Modules of employable skills

MOA Ministry of Agricultural Policy

MOE Ministry of Economic and European Integration

MOES Ministry of Education and Science

MOF Ministry of Finance

MOLSP Ministry of Labour and Social Policy

NGO Non-governmental organisation

NIP National indicative programme

NIS New Independent States

OECD Organisation for Economic Cooperation and Development

SME Small and medium-sized enterprise

UEPLAC Ukrainian-European Policy and Legal Advice Centre

UNDP United Nations Development Programme

VET Vocational education and training

WB World Bank

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EUROPEAN TRAINING FOUNDATION

A STUDY OF THE UKRAINIAN VOCATIONAL EDUCATION ANDTRAINING SYSTEM AND ITS RELEVANCE TO LABOUR MARKET NEEDS

Luxembourg: Office for Official Publications of theEuropean Communities

2004 – 72 pp. – 21.0 x 29.7 cm

ISBN 92-9157-377-9

Documents

A STUDY OF THE UKRAINIAN VOCATIONAL EDUCATION AND … · 2018. 6. 29. · VET and labour market issues. Individual employers and their associations contributed with the necessary