Report No. 1549a-BR LAppraisal of a VocationalTraining Project BrazilMay 26, 1977

Education Projects DivisionLatin America and Caribbean Regional Office

FOR OFFICIAL USE ONLY

Document of the World Bank

This document has a restricted distribution and may be used by recipientsonly in the performance of their official duties. Its contents may nototherwise be disclosed without World Bank authorization.

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Currency Equivalents(As of May 12, 1977)

Currency Unit = Brazilian Cruzeiro (Cr$)US$1 Cr$ 13.65Cr$1 5 US$ 0.073Cr$ million = US$ 73,260

Measures

1 M210.76 sq. ft.

Acronyms

CENAFOR Centro Nacional de Aperfeiioamento de Pessoal National Center for Vocational TrainingCNRH Centro Nacional de Recursos Humanos National Center for Human ResourcesDASP Departamento de Administra go do Servico Publico Administrative Department for Civil ServantsDNMO Departamento Nacional de MWo-de-Obra National Manpower DepartmentEMATER Empresa Brasileira de Assistencia Tecnica e Brazilian Agency for Technical Assistance and

Extensao Rural (Estadual) Rural Extension (at State level)EMBRATER Empresa Brasileira de AssistAncia Tecnica e Brazilian Agency for Technical Assistance and

Extensgo Rural (Federal) Rural Extension (at Federal Level)FUNDACENTRO Fundacgo Nacional de Seguran,a, Higiene e National Foundation for Occupational Safety,

Medicina do Trabalho Hygiene and MedicinePIPMO Programa Intensivo de Preparacafo de Mao-de-Obra Intensive Program for Manpower TrainingPOLONORDESTE Polo de Desenvolvimento do Nordeste Northeast Development PoleSENAC Servico Nacional de Aprendizagem Comercial National Service for Commercial ApprenticeshipSENAI - Servico Nacional de Aprendizagem Industrial National Service for Industrial ApprenticeshipSENAR > Servis o Nacional de Formas,o Profissional Rural National Service for Rural TrainingSINE Sistema Nacional de Emprego National Employment System

Government of Brazil Fiscal Year

January 1 to Deceiber 31

FOR OFFICIAL USE ONLY

BRAZIL

APPRAISAL OF A VOCATIONAL TRAINING PROJECT

TABLE OF CONTENTS

Page No.

SUMMARY AND CONCLUSIONS ............................ i - iv

I. INTRODUCTION .....................................................

II. DEVELOPMENT STRATEGY AND HUMAN RESOURCESIMPLICATIONS ................................................... 3

III. VOCATIONAL TRAINING IN BRAZIL ................... 6

Issues in Organization and Management ......... 6Industrial Training ........................... 9Services Sector Training ...................... 9Rural Training ....... ......................... 10Occupational Safety and HealthTraining .................................... 11

Employment Services ...... ........................ 12

IV. THE PROJECT ................ 13

Objectives and Content ........... .. ........... 13Industrial Training (SENAI) .. ................. 14Commercial Training (SENAC) ................... 15Hotel Training (SENAC) ........... .. ........... 15Occupational Safety and HealthTraining (FUNDACENTRO) ..... ................. 16

Rural Training (SENAR) ........................ 17Employment Services (SINE) ......... ........... 18Manpower Studies (Ministry of Labor) ........ .. 19Technical Assistance ...... .................... 19Evaluation .................................... 20Cost of the Project ............ ............... 20Project Recurrent Costs ........... .. .......... 22

This report is based on the findings of an appraisal mission which visitedBrazil during November/December 1976. The mission comprised Messrs. R.Hemingway (technical educator), A Tobelem (economist), J. Levine (economist,consultant), Y. Tencalla (agricultural educator) and R. Corradine (architect).

This document has a rctricted distribution and may be used by recipients only in the performanceof their omcial duties. Its contents may not otherwise be disclosed without World Bank authorization.

TABLE OF CONTENTS (Continued)

Page No.

V. IMPLEMENTATION AND DISBURSEMENTS .... ............... 23

Project Administration ..... ................... 23P'rofessional and Technical Services ........... 24Implementation Schedule ................... .... 24

Sites . ........................................ 24

Maintenance ................................... 25

Procurement ...... ............................. 25

Disbursements ...... ........................... 25

VI. BENEFITS, RISKS AND UNCERTAINTIES .................. 25

Benefits ...................................... 25

Risks and Uncertainties ................... .... 26

VII. AGREEMENTS REACHED AND RECOMMENDATION .... .......... 27

ANNEXES

1. Population (1970-1985)2. GDP, Employment and Productivity (1970-1985)3. Employment and Training Needs - Primary Sector4. Project States-Employment and Training Needs-Secondary Sector5. Employment and Training Needs-Hotel and Catering Industries and

Related Activities6. Selected State and Territories-Employment and Training Needs-

Commercial and Services Sector7. Annual Output from Project Institutions and Mobile Action (1981)8. Activities of PIPMO and SENAR9. Occupational Accidents (1970-1975)10. Output of FUNDACENTRO Network (1981)11. Occupational Safety and Hygiene Campaign-Rate of Return Analysis12. Staff Training Program for SINE13. National Vocational Training System, SENAI, SENAC and FUNDACENTRO:

Organization Charts14. Technical Assistance Schedule15. Estimated Project Costs by Category of Expenditure16. SENAI: Summary of Estimated Costs17. SENAC: Summary of Estimated Costs18. FUNDACENTRO: Summary of Estimated Costs19. Summary of Total Project Costs20 Contingency Allowances21. Estimated Recurrent Expenditures and Unit Costs of SENAI Project

Items (1981)22. Estimated Recurrent Expenditures and Unit Costs of SENAC Project

Items (1981)23. Hotel Schools: Financial Analysis

TABLE OF CONTENTS (Continued)

24. Budget and Estimated Recurrent Expenditures of SENAR ProjectItem (1981)

25. Project Unit. Proposed Organization Chart26. Implementation Schedule27. Disbursement Schedule28. Comparative Education Indicators

MAP

BRAZIL

APPRAISAL OF A VOCATIONAL TRAINING PROJECT

SUMMARY AND CONCLUSIONS

i. This report appraises a project which is designed to assist theGovernment of Brazil in strengthening the capacity of its Ministry of Laborto coordinate and rationalize the expansion of the country's major publicand private vocational training agencies, with a view towards alleviatingshortages of middle-level, skilled and semi-skilled manpower in all sectorsof the economy in accordance with established development priorities. Inaddition to this institution-building effect, the project would provide fora substantial increase in vocational training opportunities in selected sub-sectors and geographic areas, through the physical facilities to be financed.Finally, the project would complement the aforementioned efforts in vocationaltraining through the expansion nationwide of an employment information andplacement system and an occupational safety and health training program.

ii. This would be the Bank's third loan for the development of educationand training in Brazil. The first, Loan 755-BR (US$8.4 million, signed inJune 1971), supported the expansion and improvement of 16 federal agriculturaland industrial schools at the secondary and post-secondary levels. The second,Loan 1067-BR (US$23.5 million, signed in December 1974), supported implemen-tation of a national education reform at the basic and secondary levels ineight North and Northeastern states. Despite some initial problems with thefirst project, both are now being implemented satisfactorily. The proposedthird project would complement these ongoing operations in the formal educationsystem with assistance to nonformal vocational training to meet the needs ofthe economy for trained manpower.

iii. Between 1970-75, Brazil experienced high rates of economic growth,which were accompanied by rapid expansion of employment opportunities (3.7percent annually), such that by the end of the period the supply of skilledmanpower could hardly meet demand. Overall industrial employment increased atan annual rate of 5.5 percent. In commerce and services, the annual growthrate was 4.9 percent. Agricultural employment tended to stagnate, growing atan annual rate of only 1.6 percent and throughout the period there was amarked shift of labor out of agriculture and rapid urbanization. Althougheconomic growth has slowed during 1975-76 and is likely to be more moderatefor the next several years, the prospects in the medium and long-run are veryfavorable. However, while the absolute number of new entrants to the laborforce over the next decade will be adequate to meet demand, their low skilllevel will place increasingly serious constraints on economic growth.The formal education system has been expanding rapidly and at present reaches86 percent of the school age group (7-14 years), but some 80 percent of adultshave not completed primary education and illiteracy rates are high at 36percent of the total labor force (50-60 percent in agriculture). Nonformalvocational training, organized by both the public and private sectors has had

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a fairly long tradition in Brazil, dating back to 1942, but there has beenlimited coordination and no common strategy among the various programs, andthe private sector has not been particularly active in organizing directin-plant training schemes. Training standards have varied widely throughoutthe country, and most training plans have been designed without adequateprior assessment of the labor market.

iv. Aware of the increasingly serious prospects of skilled labor short-ages and of the low productivity levels prevailing in many sectors, the Govern-ment has taken several important steps in the last few years to marshall thetraining resources available in the country and to encourage the developmentof new ones in support of its investment priorities. First, in 1974 theMinistry of Labor and Social Security was separated into two Ministries, andthe new Ministry of Labor was selected as the vehicle, inter alia, for coor-dinating, eliminating gaps and rationalizing the expansion of vocationaltraining in Brazil to provide the expanding economy with sufficient skilledmanpower. At the same time, a major nonformal training program previouslyoperated by the Ministry of Education was transferred to the Ministry ofLabor. Secondly, in 1975 a tax incentive law was promulgated which enablesenterprises financing their own training activities to deduct twice theexpenditure on training from their taxable income. During the first sixmonths after enactment of the law, about 1,000 training proposals were sub-mitted to the Ministry of Labor for approval. Finally, in April 1976 a decreewas approved establishing a National Vocational Training System, which com-prises all of the public and private vocational training agencies in Brazil.The System will be operated by a Federal Council of Manpower composed ofrepresentatives of the Ministries of Planning, Finance, Education and Labor,of workers' and employers' organizations, and of the Confederations of Industryand Commerce. Under a second decree, recently approved in March 1977, theCouncil has the responsibility for establishing national vocational trainingpolicies in support of the goals and objectives of the national developmentplan and of introducing suitable programs to implement these policies. Inpractice, the Ministry of Labor will function as a technical secretariat tothe Council and will be responsible for executing the Council's decisions,either directly or through the existing training agencies.

v. The proposed project is designed to support the Government's effortsto establish the National Vocational Training System by strengthening thecapacity of its Ministry of Labor. At full operation in 1981, the projectwould provide a total additional annual output of 40,000 trainees from coursesof varying duration in commerce, tourism and industry. Rural mobile trainingprograms would be expanded by about 250,000 persons annually, and the employ-ment service and occupational safety and health training programs wouldbe expanded to have nationwide coverage. Although the absolute figures arerelatively small in the overall Brazilian context, the training facilities tobe provided will make a substantial impact on the geographic areas where theywill be located. Also, since they represent a sizeable share of the plannedinvestment program for the next five years of the participating trainingagencies, they will permit the Ministry of Labor, through which loan fundswill be channelled and which will be responsible for managing project im-plementation, to become actively involved in guiding the expansion of theseagencies. Specifically, the proposed project would include:

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(a) the construction, furnishing and equipping of:

- twelve industrial training centers- three hotel training schools- three commercial training centers- a national headquarters/training center for

occupational safety and health training

(b) equipment for:

- one existing industrial training center- eight regional occupational safety and health trainingcenters, the buildings for which will be provided bythe Government

- 180 rural mobile training units

(c) staff training for:

- 600 instructors and supervisors of the industrial,commercial and hotel training schools

- 2,525 administrators and other staff of the nationalemployment information and placement system

(d) the costs of:

- studies on the labor market and follow-up of students- preparation of instructional materials for hotel, cateringand related trades

(e) technical assistance in the form of:

- 36-2/3 man-years of specialists' services- 27-1/4 man-years of fellowships- a seminar on employment information and placement services

(f) selected project administration costs, including:

- 100 percent of the salaries of six Project Unit staffduring project implementation

- consulting services to the Project Unit.

vi. Project administration would be a cooperative venture on the part ofthe Ministry of Labor and the vocational training agencies. A special ProjectUnit would be established within the Ministry of Labor, reporting to the ViceIlinister, to assist in coordinating implementation and maintaining financialcontrol over the project. The Project Unit would collaborate with the Secret-aries of Manpower, Employment and Wages, and Labor Relations. The functionsand responsibilities of the Project Unit, the Secretaries and the training agen-cies, the implementation schedules, procedures for the transfer of Bank loanfunds and local counterpart financing, and the procurement arrangements to be

- iv -

used under the project would all be detailed in subsidiary agreements betweenthe Ministry and the independent training agencies and in intra-Ministerialwork programs for those agencies/services which are actually part of the

Ministry. The Project Unit would comprise a full-time director, architect,civil engineer, vocational training specialist, programmer and accountant.The loan would reimburse the salaries of these six staff and 2-1/2 man-yearsof consultant services to assist the Project Unit in procurement matters.

vii. All civil works contracts expected to exceed US$3.0 million andequipment contracts (except for vehicles) would be awarded on the basis ofinternational competitive bidding in accordance with the Bank's guidelines.Civil works contracts for lesser amounts and all contracts for furniture andvehicles would be awarded on the basis of competitive bidding advertisedlocally in accordance with procedures which are acceptable to the Bank.However, such furniture and equipment which cannot be grouped into packagesof at least US$50,000 may be purchased in accordance with regular Governmentprocurement procedures which are acceptable to the Bank. The total valueof items purchased in this manner would not exceed US$3,800,000 (equivalentto about 15 percent of the total estimated value of furniture and equipment).Domestic manufacturers would be allowed a preferential margin in bid evalu-ation of 15 percent of the c.i.f. price or the prevailing tariff, whicheveris lower.

viii. The total cost of the project would be US$92.51 million. The pro-posed loan of US$32.0 million, equivalent to 35 percent of total projectcosts, would finance 94 percent of the foreign exchange component (US$15.47million) and 22 percent of local costs (US$16.53 million). The UNDP wouldfinance US$1.5 million of technical assistance costs under a project, for partof which the ILO would be the executing agency. The Federal Government andthe training agencies would finance the balance of project costs. The loanwould be disbursed over a 5-1/2 year period, with construction ending in fiveyears and the project completed by June 30, 1982. Disbursements wouldfinance: (a) 100% of foreign expenditures or 26% of local expenditures forequipment; (b) 35% of total expenditures for site development, selected pro-fessional services, construction, furniture, staff training, studies andteaching materials production; and (c) 100% of selected technical assistanceand project administration expenditures.

ix. The proposed project would constitute a suitable basis for a Bankloan of US$32.0 million to the Federative Republic of Brazil for a period of17 years, including a grace period of 3-1/2 years.

May 26, 1977

BRAZIL

APPRAISAL OF A VOCATIONAL TRAINING PROJECT

I. INTRODUCTION

1.01 The Government of Brazil has requested Bank assistance in financinga project designed to assist its Ministry of Labor in coordinating and ration-alizing the expansion of the major public and private vocational trainingagencies in the country, with a view towards alleviating shortages of middle-level, skilled and semi-skilled manpower in the primary, secondary and tertiarysectors of the economy in accordance with established development priorities.In addition to this institution-building effect, the project would provide fora substantial increase in vocational training opportunities in selected sub-sectors and geographic areas, through the physical facilities to be financed.Finally, the project would complement the aforementioned efforts in vocationaltraining through the expansion nationwide of an employment information andplacement system and an occupational safety and health program, also throughthe Ministry of Labor. A Bank loan of US$32.0 million is proposed to finance35 percent of total project costs (US$92.51 million), including the 94 percentof the foreign exchange component (US$15.47 million) and 22 percent (US$16.53million) of local currency costs. The loan would have a term of 17 years,including a grace period of 3-1/2 years. The UNDP would finance US$1.5 millionof project costs related to technical assistance, and the Federal Governmentand the training agencies would finance the balance of total project costs.

1.02 This would be the Bank's third loan for the development of educationand training in Brazil. The first two projects addressed primarily the needsof children and young adults within the formal education system. Loan 755-BR(US$8.4 million, signed in June 1971) supported the expansion and improvementof 16 federal agricultural and industrial schools at the secondary and post-secondary levels. The project is about 30 months behind appraisal estimatesdue mainly to initial difficulties in setting up the project unit, governmentchanges and sporadic shortages of some building materials, but it should becompleted by the revised Closing Date of December 31, 1977. Some 80 percentof construction has been completed and furniture and equipment procured, andthe technical assistance program is proceeding satisfactorily. A cost overrunof about 20 percent, mainly in civil works, is being financed by the Govern-ment. The second Bank Loan, 1067-BR (US$23.5 million, signed in December 1974),supported implementation of a national education reform at the basic andsecondary levels in eight North/Northeastern states. The project is onschedule and should be completed by the December 31, 1979 Closing Date; thusfar, there have been no changes in total project cost estimates. A recentadministrative merger of the units responsible for implementation of the firstand second education projects should improve the efficiency of the second andrelatively less experienced unit.

1.03 Initial discussions with the Government about a possible thirdeducation project commenced in February 1976 when a Bank reconnaissancemission visited the country. It was decided that while further assistance tothe formal education system was appropriate and would be supported underfuture Bank projects, the more immediate priority was to complement those

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efforts by assistance to nonformal vocational training to meet short andmedium-term manpower needs of the economy. In May 1976 a Bank identificationmission reached tentative agreement with the Government on the possiblecontent of the third project, which was then prepared locally. In August 1976a Bank mission, with support from ILO specialists in industrial training,rural training, hotel training, occupational safety and health training andemployment services, preappraised the project and assisted the Governmentin finalizing preparation. The project was appraised in November/December1976 by a Bank mission comprising Messrs. R. Hemingway (technical educator),A. Tobelem (economist), J. Levine (economist, consultant), Y. Tencalla(agricultural educator) and R. Corradine (architect).

1.04 The project, as modified during appraisal, would finance:

(a) the construction, furnishing and equipping of:

- twelve industrial training centers- three hotel training schools- three commercial training centers- a national headquarters/training center for

occupational safety and health training

(b) equipment for!

- one existing industrial training center- eight regional occupational safety and health training

centers, the buildings for which will be provided bythe Government

- 180 rural mobile training units

(c) staff training for:

- 600 instructors and supervisors of the industrial,commercial and hotel training schools

- 2,525 administrators and other staff of the nationalemployment information and placement system

(d) the costs of:

- studies on the labor market and follow-up of students- preparation of intructional materials for hotel,

catering and related trades

(e) technical assistance in the form of:

- 36-2/3 man-years of specialists' services- 27-1/4 man-years of fellowships- a seminar on employment information and placement

services

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(f) selected project administration costs, including:

- 100 percent of the salaries of six Project Unit staffduring project implementation

- consulting services to the Project Unit.

During project appraisal a proposed staff training center to providehigh level directive personnel (training managers, planners and analysts)in vocational training was eliminated because alternative means of providingthe services were identified through existing institutions and programs, andone commercial and one industrial training center were eliminated becauseof inadequate manpower justification.

II. DEVELOPMENT STRATEGY AND HUMAN RESOURCES IMPLICATIONS

2.01 Between 1970-75, Brazil experienced high rates of economic growth,which were accompanied by rapid expansion of employment opportunities (3.7percent annually), such that by the end of the period the supply of skilledmanpower could hardly meet demand. Overall industrial employment increased atan annual rate of 5.5 percent. In commerce and services, the annual growthrate was 4.9 percent. Agricultural employment tended to stagnate, growing atan annual rate of only 1.6 percent and throughout the period there was amarked shift of labor out of agriculture and rapid urbanization. Althougheconomic growth has slowed during 1975-76 and is likely to be more moderatefor the next several years, the prospects in the medium and long-run are veryfavorable. However, while the absolute number of new entrants to the laborforce over the next decade will be adequate to meet demand, their low skilllevel will place increasingly serious constraints on economic growth. Theformal education system has been expanding rapidly and at present reaches 86percent of the school age group (7-14 years), but some 80 percent of adultshave not completed primary education and illiteracy rates are high at 36percent of the total labor force (50-60 percent in agriculture). Nonformalvocational training, organized by both the public and private sectors has hada fairly long tradition in Brazil, dating back to 1942, but there has beenlimited coordination and no common strategy among the various programs, andthe private sector has not been particularly active in organizing directin-plant training schemes. Training standards have varied widely throughoutthe country, and most training plans have been designed without adequateprior assessment of the labor market.

2.02 Labor Force and Employment. Rapid growth in employment representeda favorable feature of Brazil's dynamic economic development during the 1970-75period. During these years the employed adult labor force increased by 5.2million (i.e. about 1,000,000 per year), of which some 1.2 million were inagriculture and 4.0 million in non-agricultural activities. This representsa growth rate of 3.7 percent per year. The main characteristics of thisperiod were: (a) rapid growth in employment in all regions, but particularly

in Sgo Paulo and the Northeast; (b) a shift of labor out of agriculture;

(c) rapid urbanization; (d) a rise in the share of the urban labor forceengaged in informal activities; and (e) an increase in the inequality in thedistribution of urban wage income. About 55 percent of the total employed werewage earners in 1975, the remaining 45 percent being self-employed.

2.03 In 1975, the Brazilian labor force totalled 34.1 million, of which32.4 million were employed (38 percent in agriculture, 19 percent in industry,38 percent in services, and 5 percent unemployed). The labor force is expectedto increase at a rate of 3.1 percent in the future, reflecting the high popu-lation growth rate of 2.8 percent per year (4.3 percent in the cities) and theyoung age structure of the population (Annex 1). The 0-14 year age group willincrease from 45 million in 1975 to 57 million in 1985, when it will representabout 41 percent of the total population. The average number of new workersentering the labor force over the next decade will be about 1.2 millionannually, one-third in the North, Northeast and Center West regions and two-thirds in the South and Southeast regions. The participation rate of women inthe labor force is expected to increase more quickly than in the past as theaverage size of families decreases, education opportunities are expanded andurbanization increases.

2.04 Skill Level of the Labor Force. The skill level of the labor forcein Brazil is low. Although the education system has been expanding veryrapidly and at present reaches 86 percent of the relevant age group (7-14years), some 80 percent of the labor force has not completed primary education.Illiteracy, which affects about 36 percent of the total labor force (19 percentin the urban sector) according to the latest census, is particularly high inthe agricultural sector (50-60 percent) and contributes to the serious regional,economic and social imbalances which continue to affect Brazilian development.The low educational attainments in the rural sector are accompanied by anabsence of technical preparation which restricts the optimal use of moderntechniques in agricultural and livestock production. Furthermore, the need toincrease the productivity of Brazilian workers is considered by the Governmentas an essential element for further development of all sectors. Progress inachieving this objective is expected in the long-run because of the rapidexpansion of formal education for the school age groups (the future laborforce). However, in the short-run most of the present Brazilian labor forceneeds intensive training, particularly those adults who are among the majoritywhich never completed basic education (Annex 2).

2.05 Wages. Between 1967-75, industrial wages improved by 27 percentin real terms. The proportion of the labor force working in the higherpaying, dynamic sectors increased most rapidly, leading to a substantialincrease in earning inequality and a significant skewing in the wage struc-ture. The increase in wages was 2.2 percent a year for employees earningbetween one and four times the minimum wage, but 8.9 percent for those earningmore than 70 times the minimum wage.

2.06 Manpower Requirements in the Agricultural Sector. Overall growthin agricultural employment is expected to increase rather slowly from about13 million in 1975 to only 14 million in 1985. However, in order to meet theobjectives of the Government's programs in the agricultural sector, consider-able training efforts will be required to raise the productivity of farmersand other rural workers. The use of insecticides, increased mechanization andthe expanded availability of rural credit are foreseen. The adoption and useof such new techniques and practices must be accompanied by programs to pre-pare the rural labor force. For the most part, requirements are for fairlyshort courses for about 650,000 rural workers per year from 1975-85, of whomabout 40,000 would be self-employed persons requiring more intensive trainingin administrative skills relating to credit schemes and marketing. About 75percent of the workers would be involved in direct agricultural productionactivities, such as crop raising, and animal husbandry, and 25 percent inactivities such as agricultural mechanics and artisan works. These overallneeds may be compared with the present capacity of the rural training agenciesof about 114,000 per year (Annex 3).

2.07 Manpower Requirements of Industry. Growth in industrial employment,by an estimated 220,000 persons per year through 1985, is likely to be concen-trated in manufactured exports like chemicals, plastics, transport equipmentand mechanical and metallurgical products, and in substitution of manufacturedimports in both the intermediate and capital goods categories, like steel,automobiles and fertilizers. Considerable additional vocational training ofthe new labor force entrants and upgrading of the skills of existing workerswill be required (Annex 4). The main training needs are in the mechanical andelectrical trades, especially for repairmen and technicians. There seems tobe an especially acute need in the Northeast and Southeast regions. One ofthe objectives of Government policy is to redistribute industrial activitygeographically so as to achieve a more equitable inter-regional distributionof employment opportunities and to strengthen small and medium-scale indus-trial enterprises.

2.08 Manpower Requirements in the Tourism, Commerce and Other ServicesSector. It is estimated that in the tertiary sector about 750,000 new jobswill be created annually through 1985, and tourism employment as a whole willincrease twofold by 1985. In the hotel and catering industries 26,600 newjobs would be generated annually from 1981 onwards. The rest of the tertiarysector development will be in commerce, transport and other services, result-ing from the spill-over effects of industrial development and from specialfederal projects of economic and social assistance to the poorest segments ofthe North, Northeast and Center West regions (Annexes 5 and 6).

2.09 Employment Services. Information about job vacancies and the place-ment of workers is a responsibility of the Secretariat of Employment and Wagesof the Ministry of Labor, which has established a limited network of employ-ment agencies. Because of inexperience and inefficiency, the existing systemis able to find jobs for only a limited number of unemployed workers. Inorder to allow it to play an effective role in the Brazilian labor market,there is a need to expand the network of employment agencies. The Secretariat

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of Employment and Wages is establishing a National Employment System (SINE)with state centers and local employment agencies throughout the country. Toimplement the Svstem, an estimated 2,525 trained employees would be neededby 1978 and some 1,700 employees per year thereafter would need upgrading.

2.10 Occupational Safety and Health. The recent rapid pace of indus-trialization has involved many processes and techniques that are new for thelabor force. As a result, there has been a very sharp increase in occupa-tional accidents and work-related diseases. In 1975, there were two millionreported accidents, equivalent to a high 15 percent of the insured laborforce. The social and economic costs of this situation are very great. Thefinancial burden on the Social Security System has been heavy, even thoughthis System does not cover all workers. Through the use of its specializedagency FUNDACENTRO (National Foundation for Occupational Safety, Hygiene andMedicine) located in Sgo Paulo, the Government is starting a campaign toreduce industrial accidents by implementing compulsory occupational safetytraining schemes. The Secretariat of Labor Relations is responsible forcarrying out the program, which is expected to reach about 500,000 workers peryear (of the 1981 target group of 7.1 million industrial workers) when in fulloperation, eventually reducing the accident rate to 6 percent of the insuredlabor force by 1986.

III. VOCATIONAL TRAINING IN BRAZIL

Issues in Organization and Management

3.01 Background. Vocational training organized by both the public andprivate sectors has a fairly long tradition in Brazil. In 1942 the Governmentestablished the National Service for Industrial Apprenticeship (SENAI) underthe responsibility of the National Confederation of Industry, which representsprivate industry. In 1946 similar action was taken to establish the NationalService for Commercial Apprenticeship (SENAC) under the responsibility of theprivate National Confederation of Commerce. SENAI and SENAC are financed bya 1% tax on the payrolls of industrial and commercial firms, respectively, andtherefore until recently both had financial and administrative independencefrom the Government.

3.02 In 1963, the Intensive Program for Manpower Training (PIPMO) wascreated as a dependency of the Ministry of Education and Culture, to providetraining mainly for employed workers not covered by the SENAI and SENACsystems. Subsequently, in 1967 the Ministry of Labor and Social Securityorganized the National Manpower Department (DNMO) to provide training forunemployed workers. These two schemes arranged for training to be implementedby existing agencies such as SENAI and SENAC, or by private firms or tradeunions. Having little overhead and no permanent training facilities, theymade flexible use of their resources, adjusting easily to new priorities.In 1974, PIPMO absorbed the activities of DNMO and was itself taken over bythe Ministry of Labor's Secretariat of Manpower.

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3.03 In the past there was limited coordination and no common strategybetween PIPMO, which was highly centralized within the Government, and SENAIand SENAC which were independent from it. Furthermore, since private enter-prises financed vocational training through the 1% tax on the payroll leviesfor SENAI and SENAC, they felt that no further efforts were necessary on theirpart. Only a few of the larger industrial enterprises, such as ELETROBRAS andPETROBRAS introduced and operated their own in-plant training schemes to meetspecific requirements, and together with SENAI and SENAC they constructed somefixed training centers. The limited initiative of the private sector as a wholein establishing more in-plant training schemes has resulted in a situationwhere most of the training has been in fixed centers with higher costs. Workcontracts for apprentices have been difficult to arrange, and finally, mosttraining plans were made without adequate prior assessment of the labor market.

3.04 In the field of rural training, the agricultural extension services(EMBRATER and EMATER) 1/ are responsible for providing technical assistanceservices to peasants and small-scale farmers. PIPMO played a complementaryrole in determining rural training needs and making agreements with the ex-tension services and other agencies to provide the required training. However,with no systematic assessment of the rural labor market, the different agenciescould not meet the full range of training needs implicit in recent agriculturaldevelopment policies.

3.05 Recent Developments. Between 1970-75, the high rate of economicgrowth put pressure on the labor market such that the supply of skilled man-power could hardly meet the demand. Aware of this situation and of the above-mentioned problems, the Government has taken several steps since 1974 toimprove coordination, eliminate gaps and rationalize expansion of vocationaltraining in Brazil.

(a) First, in 1974 the Ministry of Labor and Social Security wasseparated into two Ministries. The new Ministry of Labor in turncreated three Secretariats to cover the areas of responsibilityassigned to it: Manpower, Employment and Wages, and Labor Relations.The Secretariat of Manpower was charged with defining the actionrequired to provide the expanding economy with sufficient skilledmanpower. In December 1974, this Secretariat absorbed PIPMO,transferred from the Ministry of Education (para. 3.02).

(b) Secondly, in 1975 a tax incentive law was promulgated whichenables enterprises financing their own training activities todeduct twice the expenditure on training from their taxableincome. The Ministry of Labor is given the authority toapprove training activities financed under this scheme. Duringthe first six months after enactment of the law, about 1,000training proposals were submitted to the Ministry of Labor by

1/ Empresa Brasileira de Assistancia T4cnica e ExtensAo Rural (EMBRATER)at Federal level and Empresa Brasileira de Assistencia Tecnica e ExtensaoRural (EMATER) at state level.

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both large and small firms grouped together. This is expectedto greatly increase demand for the services of SENAI and SENAC,which will be called upon to execute many of the approved trainingprograms.

(c) Finally, in April 1976 the Ministry of Labor issued a decreeestablishing a National Vocational Training System comprising allthe institutions concerned with vocational training in the country.This System is to be operated by a Federal Council of Manpowercomposed of representatives of the Ministries of Planning, Finance,Education and Labor, of workers' and employers' organizations, andof the Confederations of Industry and of Commerce. (Representativesof these last two are the national directors of SENAI and SENAC,respectively.) A second decree setting forth the functions andcomposition of the Council was approved in March 1977. In general,the Council, which held its first meetings in April 1977, has theresponsibility for establishing national vocational trainingpolicies in support of the goals and objectives of the nationaldevelopment plan and introducing suitable machinery for implementingsuch policies. It will collaborate with the National Center forHuman Resources (CNRH), the research unit of the Secretariat ofPlanning of the Presidency of the Republic, and the Secretariat ofEmployment and Wages to improve techniques for collecting quanti-tative and qualitative employment information for use in planningvocational training nationwide (Annex 13). The Council will also(i) promote the coordination of vocational training with formaleducation; (ii) promote better coordination within the SENAI andSENAC systems themselves and stimulate course standardizationnationwide with a view to establishing a national accreditationsystem for recognized occupations; and (iii) undertake a researchprogram at the state and national levels aimed at improving trainingmethodology and evaluation techniques, and reducing unit costs. Thelaw also provides that SENAI's and SENAC's annual budgets have to beapproved by the Ministry of Labor. Finally, as the training ofinstructors at all levels for the training agencies has become aserious problem over the last five years, the Council will cooperatewith the National Center for Vocational Training (CENAFOR)--anautonomous agency for the training of technical teachers andinstructors, established in 1969 with UNDP/ILO assistance andfinanced through the Ministry of Education.

3.06 The abovementioned changes are designed to centralize decision-making and reinforce the capacity of the Ministry of Labor to identify nationalvocational training needs and decide which agency will do which part of thejob. Since the Secretariat of Manpower of the Ministry of Labor is a relativelyinexperienced body lacking sufficient numbers of qualified staff for thesepurposes, it will have largely to rely for some time to come on the technicalexpertise of the existing agencies. It has already received considerableassistance from SENAI and SENAC during the initial phase of implementation ofthe National Vocational Training System. In order to strengthen further itsposition vis-a-vis the training agencies and enable it to cope with its new

responsibilities, the Ministry will require considerable support from locallyand internationally recruited specialists.

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Industrial Training

3.07 Most industrial training in Brazil is organized by the NationalService for Industrial Apprenticeship (SENAI) in its 245 training centers orthrough in-plant schemes in enterprises. SENAI is a highly decentralizedorganization managed by the national and regional councils of the NationalConfederation of Industry. The national council includes among its membersrepresentatives of the Ministries of Education and Culture and of Labor (Annex13). Courses offered ranged from the management to the semi-skilled workerlevels, with a total output of 430,000 in 1975 (290,000 from SENAI centers and140,000 from in-plant training programs). About 80 percent of the training incenters is oriented towards adult workers and supervisory staff in shortcourses where dropouts are negligible. The remaining 20 percent are studentsof the formal education system who have access to the vocational trainingcenters to receive occupational training. Many State Secretariats of Edu-cation have contracts with SENAI and other training agencies for this purpose;in 1975, 41,800 secondary students received training. Of the 140,000 personswho received in-plant training in 1975, about 5 percent were apprentices and95 percent were adult workers of whom about one-third were supervisory staff;the main training areas were steelmaking industries (24%), electricity (14%),railways (12%) and petrochemicals (11%).

3.08 Resulting from the 1% tax on the payroll of industrial firms, SENAI's1975 budget of US$75 million (1977 prices) was 12% above its 1974 budget inreal terms. In 1976, the budget increased by 10% in real terms and the samerate of increase is expected through 1981. There is some redistribution ofSENAI's budget among geographic regions: in 1975, 90% of the revenue originatedin the South and Southeast, although SENAI centers in these regions producedonly 83% of total graduates. The unit cost per SENAI student/hour (averagingUS$1.00) is slightly higher than in other similar Latin American institutions,due mainly to higher instructor salaries and higher maintenance costs.

3.09 The main issues of the SENAI system are administrative and organiza-tional. Administration is highly decentralized among autonomous states.Within states, centers are loosely coordinated by the state councils ofthe Confederation. As a result, there are wide variations in the relationshipbetween SENAI output and manpower requirements and there is no standardizationof course content and instructional methodology. Each state determines itsown curricula, length of courses, instructor/trainee ratio, training nethodsand workshop organization. There is no systematic and continuous assessmentof the labor market or clear evaluation system. In an effort to overcomegradually this situation, the SENAI's National Directorate is introducingplanning at the federal level and a program of research on the functioning ofthe labor market.

Services Sector Training

3.10 Training for the services sector is organized by the NationalService for Commercial Apprenticeship (SENAC) in its 76 training centers.SENAC is a much more centralized organization than SENAI, with a National

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Board responsible for the whole country comprising representatives of theMinistries of Education and Culture, Labor, commercial enterprises, andorganized labor (Annex 13). Almost all training action is for adults andsupervisors in short courses organized in fixed centers. In 1975, less than10 percent of the 290,000 persons trained by SENAC were trained in enter-prises. The rest were trainees in apprenticeship (55 percent) and upgrading(35 percent) courses in fixed centers. The main training areas were insecretarial skills (44 percent), nursing (10 percent), and hotel andcatering (9 percent). In recent years SENAC has been experimenting withso-called "pedagogic enterprises" for training in hotel and catering, beautyand barbering occupations. These are institutions which finance theirtraining programs out of the profits of the services they provide to thepublic. Trainees receive graduated stipends during their training. Twohotel schools already operating (in Aguas de Sao Pedro and Barbacena) arebased on this methodology, and SENAC is planning to use the same approach in athird hotel school under construction with IDB assistance, as well as in thehotel schools to be constructed under the proposed project.

3.11 SENAC's 1975 budget of US$27 million (1977 prices) was 20% aboveits 1974 budget in real terms. In 1976, the budget will increase by 18% and

a 10% rate of increase is expected thereafter through 1981. As in the caseof SENAI, there is some small redistribution of SENAC revenues from the Southand Southeast to the North, Northeast and Center West regions. Of the totalSENAC output of 290,000 trainees in 1975, 88% were in the South and Southeastregions and only 12% in the North, Northeast and Center West regions. SENAC'sexpansion program will improve somewhat this situation by 1981, when 76% ofthe output will be in the South and Southeast regions and 24% in the North,Northeast and Center West. The unit cost per SENAC student/hour (averagingUS$0.40-US$0.50) is lower than SENAI's because of lower instructor salariesand maintenance costs. However, it varies substantially among courses (1-8ratio of variation), mostly because of considerable differences in classsizes.

3.12 The main problems of the SENAC system are technical. No assessmentof the labor market is made before courses are planned, and there has beenlittle innovation in training methodology except for the pedagogical enter-prise concept and a very recent effort aimed at offering programmed coursesfor catering occupations. Finally, no systematic follow-up or tracer studiesare made. In an effort to overcome some of these difficulties, and in anti-cipation of the substantial increase in its total output which SENAC plans by1985, the National Directorate is planning to undertake manpower studies incollaboration with the Secretariat of Manpower of the Ministry of Labor.

Rural Training

3.13 All the rural training activities and part of the staff of PIPMOare being taken over by the National Service for Rural Training (SENAR), whichwas created in 1976 and will be operated by the Ministry of Labor and financedthrough 1978 by a special development fund earmarked for that purpose under apresidential decree (Annex 8). SENAR will play an important role in analyzing

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the rural labor market, defining training needs, offering training andconducting continuous evaluation of training programs in collaboration withthe Ministry of Agriculture, EMBRATER, and local agricultural agencies,cooperatives and farming enterprises. Training will emphasize mobile actionbased on the experiences gained by PIPMO in the Sao Francisco River region.SENAR will utilize instructor staff and technical personnel of the EMATER'sand other agencies, as well as provide some of its own instructors.

Occupational Safety and Health Training

3.14 In 1975, two million persons (i.e., about 15% of the insured indus-trial work force) were involved in occupational accidents. Lost time dueto accidents of all kinds amounted to 354 million hours in the reporting estab-lishments and the direct cost in wages lost was estimated at US$127 million,which probably understates the case because accidents are routinely under-reported (Annex 9). To this amount should be added medical and hospital costsand indirect costs, such as those related to production interruptions anddamaged materials and equipment, which could amount to as much as four to sixtimes direct costs.

3.15 In the face of the increase in occupational accidents resulting fromthe rapid industrial expansion, in 1972 the Government made compulsory theestablishment of specialized occupational safety, hygiene and health servicesin enterprises employing more than 100 employees. The regulation indicatesthe number of safety engineers, inspectors, nurses and factory medical officersrequired to be employed according to the size and activities of the enterprise,together with their duties and qualifications. Subsequent regulations intro-duced in 1975 elaborate in more detail the steps to be taken against thehazards in different industries and enterprises. The Government campaign toreduce occupational accidents has been divided into three stages beginning in1972: (a) to concentrate efforts on the 10,500 industrial enterprises eachemploying more than 100 workers with a total of 6,890,000; (b) to extend theaction to the 670,000 enterprises each employing less than 100 workers witha total of 6,110,000; and finally (c) to extend the action to agriculture.

3.16 The Secretariat of Labor Relations of the Ministry of Labor isresponsible for these activities, operating through its divisions attached toregional offices of the Ministry located in the state capitals. It setsstandards, supervises enforcement and makes inspections as required. Trainingand research are the responsibility of the National Foundation for OccupationalSafety, Hygiene and Medicine (FUNDACENTRO), a semi-autonomous agency under theSecretariat of Labor Relations, which is financed by 0.5 percent of the basicwork-accident insurance contribution of enterprises (Decree 62172 of January1968) and is managed by a curatorial council responsible for finance and adeliberative council responsible for technical activities (Decree 77319 ofMarch 1976). The council members are nominated by the Minister of Labor(Annex 13). At present FUNDACENTRO has a national center in Sao Paulo and

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three small administrative branches in Rio de Janeiro, Brasllia and Recife,all in rented premises. In future it plans to expand considerably its activi-ties in Sao Paulo and to establish a network of eight regional centers tocover the whole country.

Employment Services (SINE)

3.17 Plans for establishing an employment system in Brazil date backto 1953, when a few placement offices were set up in connection with the TradeUnion Social Fund. Most of these offices were later absorbed into the regionaloffices of the Ministry of Labor. In 1975, legislation was enacted establish-ing the National Employment System (SINE), under which the Secretariat ofEmployment and Wages in the Ministry of Labor is responsible for general policy,technical guidance and financial assistance to the system, development of oper-ational standards and procedures, and implementation of a program of stafftraining. Each state wishing to participate in SINE must present to theSecretariat of Employment and Wages a program conforming to established guide-lines and must sign an agreement with the Ministry of Labor which specifiesthe terms, conditions and financial assistance to be provided. By 1976, 17SINE offices providing placement services were operational in Sao Paulo, RioGrande do Sul, Bahia, Santa Catarina and Piaul with a total of 656 technicaland administrative persons employed. In addition to the public employmentsystem, there are some 500 small private agencies registered with the Ministryof Labor.

3.18 Due to the relatively short period of operation of the SINE offices,critical assessment is difficult. Nevertheless, certain regional disparitiesin approach are apparent which could lead to lack of comparable statisticson job seekers, vacancies and employment levels, if not corrected. Govern-ment s strategy is basically to improve the functioning of the labor marketthrough the expansion of a network of SINE employment offices, providingfree information, advice and placement services to job seekers; informationand recruitment services to employers; information on trends with regardto training needs, job creation needs, migration and so on to policymakers.Within the SINE framework a national office, 22 state offices, 52 localoffices for towns with between 200,000 and 500,000 inhabitants and 218 localoffices for towns with between 50,000 and 200,000 inhabitants would be estab-lished. The national office, which would function within the Secretariat ofEmployment and Wages, would be responsible for standardizing SINE's procedures,analyzing regional labor market reports, articulating SINE programs with thenational employment policy, training SINE personnel and supervising stateagreements. The state offices would coordinate SINE's local activities withthe national office. The network of local offices, some located in theproject vocational training centers, would have the major responsibility fordeveloping the information, placement and follow-up services. To ensureuniformity of approach in each participating state with regard to the organi-zation and administration of the employment offices, the Secretariat ofEmployment and Wages, plans also to arrange training and upgrading coursesfor existing and future SINE staff, which is critical to the success of theproposed expansion.

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IV. THE PROJECT

Objectives and Content

4.01 The proposed project would develop the capacity of the Ministry ofLabor to perform its functions within the newly established National Voca-tional Training System (para. 3.05(c)). These are basically to coordinateand rationalize expansion of the major public and private vocational trainingagencies in the country, with a view towards alleviating shortages of middle-level, skilled and semi-skilled manpower in all sectors of the economy inaccordance with established development priorities. Be-ides this institutionbuilding effect, the project would provide for a substantial increase in voca-tional training opportunities in selected sub-sectors and geographic areas,through the physical facilities to be financed. Finally, the project wouldcomplement the aforementioned efforts in vocational training through theexpansion nationwide of an employment information and placement system andan occupational safety and health program.

4.02 The content of the proposed project is summarized below and detailedin Annexes 7, 12, 14, 16, 17 and 18.

(a) construction, furnishing and equipping of vocational trainingcenters, as follows:

Numbers of CentersComplete Equipping Trainee Annual

Training Centers Facilities Only Places Output

- Industrial (SENAI) 12 1 4,746 /1 25,700- Commercial (SENAC) 3 - 495 5,000- Hotel School (SENAC) 3 - 795 9,500- Occupational Safety

and Health(FUNDACENTRO) 1 /2 8 2,095 24,300

Totals 19 9 8,131 64,_500

/1 Including 144 existing places in the one SENAI industrial training centerto be equipped only.

/2 Partially replacement of temporary facilities rented by FUNDACENTRO inSao Paulo.

(b) provision of 180 mobile units (vehicles and equipment) forthe expansion of SENAR rural training programs, to provideannual training opportunities to about 250,000 persons:

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(c) staff training for about 600 instructors of SENAI industrial,SENAC commercial and SENAC hotel school training centers,and for about 2,525 administrators and other staff of the SINEemployment information and placement system;

(d) studies on the labor market and follow-up of students by theMinistry of Labor and preparation of programmed instructionalmaterials for SENAC hotel, catering and related services courses;

(e) technical assistance to SENAI, FUNDACENTRO, SENAR, SINE and theMinistry of Labor, including 36-2/3 man-years of specialists'services, 27-1/4 man-years of fellowships, and a seminar onemployment information and placement services; and

(f) selected project administration costs including 100 percent ofthe salaries of six Project Unit staff during project imple-mentation and consulting services to the Project Unit.

Industrial Training (SENAI)

4.03 At full operation in 1981, the project centers would increase thedirect annual output of trainees from the national SENAI system by some ninepercent to about 325,000. In the particular states where the project centerswould be located (Bahia, Pernambuco, Distrito Federal, Goias, Espi?ritoSanto, Minas Gerais, Rio de Janeiro, Sao Paulo and Rio Grande do Sul), theywould increase annual output from the SENAI system by about 13 percent toa total of 200,000 trainees, of which 80,000 would be new entrants to thelabor force (which represent some 22% of the total estimated annual require-ments for new and replacement workers in the secondary sector in those statesthrough 1985-Annex 4). Trainees would include persons at the supervisory,middle technician, skilled and semi-skilled worker levels in the mechanical,electrical, refrigeration, instrumentation, garment and printing trades. Oneof the project centers (specializing in instrumentation for the petrochemicalindustry) would also produce higher level technicians. This would be SENAI'sfirst experience in post-secondary training. The Government gave assurancesthat by June 30, 1979 appropriate action would have been taken to obtainofficial recognition of the SENAI higher technician degree.

4.04 The project institutions would operate on a multiple shift basiswith apprentice, secondary school and adult job entry courses organizedduring the day (about 40 percent of all trainees) and upgrading courses foralready employed workers (60 percent) arranged in the evenings. Courses wouldvary in duration from 40 hours for upgrading to 1,800 hours for apprenticetraining. The Government gave assurances that the operational year for thetraining centers would be established at a minimum of 45 weeks.

4.05 At present the content and duration of courses in the same fieldsvary considerably among SENAI centers. As a first step towards establish-ing recognized national skill levels, the Government gave assurances thatduring project implementation action would be taken to establish (a) minimumstandards regarding the content and duration (according to the method ofinstruction) of SENAI's courses for the most common occupations, and (b) an

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adequate system for the exchange of information and experience among all theregional departments of SENAI. The use of self-contained training moduleswould permit trainees to enter the system at the stage appropriate to theirqualifications and return for further training at any SENAI center at laterstages in their careers.

4.06 To staff the SENAI project institutions, an estimated 400 newinstructors and supervisors would be required. They would be selected fromamong experienced workers and supervisors in their respective fields and givenpedagogic training at the National Center for Vocational Training (CENAFOR)in Sao Paulo, one of CENAFOR's seven regional centers, or some other appro-priate instructor training institution. The drawing up of acceptable contractsbetween the Ministry of Labor, SENAI and the collaborating instructor traininginstitution(s) specifying the curriculum, duration and financial arrangementswould be a condition of loan disbursement for the staff training courses.

4.07 The project would also finance technical assistance to carry out anevaluation study by SENAI to assess the results of an experiment which it hasbeen conducting since 1968 in ten of its training centers in Rio de Janeiro,involving the use of individualized instruction techniques. The objective ofthe study would be to determine the appropriateness of extending the use ofsuch techniques nationwide. Draft terms of reference for the study have beenreviewed by the Bank, and the Government gave assurances that the study itselfwould commence no later than January 1, 1978.

Commercial Training (SENAC)

4.08 At full operation in 1981, the commercial training centers to befinanced under the project would provide for only a relatively minor increaseof some 1.0 percent in the direct output of the national SENAC system, to about520,000 persons annually. However, they would make a substantial impact ontraining opportunities in the state of Mato Grosso and the federal territoriesof Rond8nia and Amapa, as they would be SENAC's first training centers in thoseareas. These are newly opening and rapidly developing areas which have par-ticularly acute shortages of skilled manpower. The combined output from theproject training centers of 5,000 trainees in secretarial, accounting and salesoccupations would satisfy about 38 percent of the estimated annual requirementsfor new and replacement workers in the tertiary sector (excluding tourism)in that state and those territories through 1985 (Annex 6).

4.09 The training centers would operate on a multiple shift basis withjob entry courses (60 percent of all trainees) during the day and upgrading(40 percent) arranged in the evenings. Courses would vary in length from40-150 hours for upgrading and 80-450 hours for job entry. Approximately 40instructors and supervisors would be required to staff the project institu-tions, and they would be recruited and given pedagogical training under arrange-ments similar to those for SENAI industrial training staff (para. 4.06 above).The Government gave assurances that the operational year for the trainingcenters would be established at a minimum of 45 weeks.

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Hotel Training (SENAC)

4.10 At full operation in 1981, the three project financed hotel schoolsin Brasilia, Florian6polis and Rio de Janeiro would double the number of SENAChotel schools in the country to six and would increase the direct annualoutput of SFNAC trainees in hotel, catering and other activities by about7.2 percent to a total of some 200,000 persons nationwide (including 6,400 forthe hotel industry, 11,500 for catering and 139,000 for other activities-Annex 5). In the hotel and catering training areas, output from project hotelschools would increase the direct annual output of SENAC trainees by 100percent and 26 percent, respectively to a total of some 17,900 persons nation-wide. Project hotel schools output would meet about 25 and 18 percent of thetraining needs in the hotel and catering industries, respectively.

4.11 Facilities would consist of 100-bedroom first class hotels attachedto training centers. This is the minimum possible size of hotel, the earningsof which would finance all training costs when the hotel is at 70 percent occu-pancy. The Government gave assurances that the operational year for the hotelschools would be established at a minimum of 45 weeks. Key positions in thehotels would be held by instructor-supervisors (approximately 160), who wouldbe recruited and given pedagogical training under arrangements similar to thosefor SENAI industrial training staff (para. 4.06 above). The operating staffof the hotels would be trainees who would alternate between the trainingcenter, where they would receive theoretical instruction and off-the-jobpractice, and the hotel itself where they would receive on-the-job trainingand experience. The duration of the courses would vary from 45-2,200 hoursfor job entry (76 percent of all trainees) and 60-300 hours for upgradingcourses (24 percent). To permit maximum flexibility, the training programswould be arranged on an individual basis, with each trainee moving through thehotel on his own itinerary. To the extent possible, trainees would be groupedfor instruction in the attached training centers, but even there flexibilitywould be encouraged through the use of programmed instructional materials forthe theoretical subjects. The preparation of such instructional materialswould be financed under the project.

Occupational Safety and Health Training (FUNDACENTRO)

4.12 At full operation in 1981, the output from the FUNDACENTRO networkof eight regional training centers and one national headquarters/trainingcenter in Sao Paulo would be about 24,300 graduates per year (Annex 10).Approximately 20 percent of these would be high-level technical personnel(senior medical officers, safety engineers and psychologists) who, aftertraining at the national headquarters, would either staff the regional train-ing centers, work as safety personnel in large enterprises, or join universi-ties and other educational institutions where they would organize and deliveroccupational safety and health courses. The remaining 80 percent, mostlysupervisory staff (medical officers, safety engineers, trade union officials,managers and foremen), would be trained in FUNDACENTRO's eight regionalcenters or in enterprises and cooperating educational institutions, afterwhich they wculd be responsible for in-plant safety and health training ofworkers in smaller enterprises. It is expected that an additional 500,000

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workers would receive training annually through in-plant schemes, representingone-twelfth of the insured labor force. The anticipated effect of thistraining would be to reduce accident rates from 15 to 8 percent of the insuredlabor force during 1976-81, and to stabilize the rate at 6 percent by 1986.(Annex 11).

4.13 Courses would vary in duration from 10-60 hours, and they wouldcover topics such as epidemiology, work physiology and psychology, ergonomics,work hygiene and work safety. It is expected that FUNDACENTRO would seekand receive from universities and other institutions assistance in the prepa-ration of curricula, teaching materials and audiovisual aids. In addition,technical assistance specialists would assist in establishing the laboratoriesand training counterpart staff for the FUNDACENTRO national headquarters inSao Paulo, and they would subsequently assist in the extension of trainingactivities to the regional FUNDACENTRO centers and in the organization ofadvisory and technical services programs for enterprises (para. 4.14 below).

4.14 Besides direct training, FUNDACENTRO would manage a national pro-motional campaign to encourage awareness and acceptance of occupationalsafety and health practices in Brazil, maintain documentation and libraryservices on related subjects; establish an advisory service to assist largerenterprises in organizing their own occupational safety and health programs;and provide technical services to enterprises in the form of basic quali-tative and quantitative analysis related to industrial hygiene and of basicmeasurements related to occupational safety. The Government gave assurancesthat the operational year for all FUNDACENTRO facilities would be establishedat a minimum of 45 weeks.

Rural Training (SENAR)

4.15 As a result of the project, SENAR would increase its rural trainingprograms by more than two and one-half times to reach some 309,000 persons 1/at full operation in 1981, thereby satisfying about 40 percent of estimatedrural training needs in selected regions where priority agricultural and ruraldevelopment projects are either underway or planned (Annex 8). The mode oftraining would be by mobile unit, with each unit consisting of a vehicle andsets of training equipment (sub-divided into kits) for each separate trainingactivity, such as soil conservation, plant protection, agricultural machineryoperation and repair. Interchangeability of kits among mobile units would bepossible and would permit maximum flexibility in the range of courses whichcould be offered.

4.16 Courses would vary in duration from 150 to 300 hours and would beoffered to small-scale farmers, agricultural laborers and rural artisans.Prior to commencement of courses, participants would be classified accordingto age, schooling and economic activity to ensure some degree of homogeneity

1/ Compared with the 1975 output of SENAR's predecessor agency PIPMO -- theNational Project for Rural Manpower Training.

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within groups; there would be no specific entry requirements, except that theminimum age for participants would be 14 years. Only a certificate of attend-ance would be given at the end of each course.

4.17 In executing the various training programs, SENAR would adopt thesame approach as has been applied by its predecessor agency PIPMO, namely toutilize specialized agencies (Ministry of Agriculture, extension services,banks extending agricultural credit, local machinery or farm inputs firms)in defining detailed training needs within specific geographic areas andsubsequently to utilize their instructors or key personnel to offer thetraining courses. The most important collaborative effort would be betweenSENAR and the agricultural extension service (EMBRATER at federal and EMATERat state level). The respective responsibilities of SENAR and the collabor-ating agencies would be clarified in agreements acceptable to the Bank (similarto a previous agreement between PIPMO and EMBRATER) and the signing of suchagreements would be a condition of disbursement of loan funds for the SENARcomponent of the project. In general, EMBRATER and other collaboratingagencies would provide instructors for agricultural training courses and SENARwould use its own instructors for rural artisan training. The Government gaveassurances that acceptable detailed training programs showing the annualitineraries of the mobile units would be furnished to the Bank by June 30 ofeach year, beginning with the first such itinerary to be received by June 30,1978.

4.18 At full operation, SENAR's permanent staff would consist of about1,305 persons. Most positions would be filled by former staff of PIPMO. TheGovernmental Administrative Department for Civil Servants (DASP) has approvedthe staffing and salary scale of SENAR and most of the key positions havealready been filled. The Government gave assurances that by April 1, 1978 allthe key administrative and support staff of SENAR would have been appointed.

4.19 Of SENAR's total permanent staff, some 265 would be directly involvedin training (80 for course planning, coordination and supervision at agencylevel and 185 field instructors). All training staff would participate in ageneral orientation course, and specialized training would also be offered tothose responsible for organizing and implementing instructor training courses.Assistance will be provided by the ILO under the terms of an ongoing projectwith the Ministry of Labor, and from the specialized personnel of otherinstitutions as appropriate.

Employment Services (SINE)

4.20 To staff the decentralized employment offices of SINE, by 1978 some3,250 persons would be required (8 percent at state and 92 percent at locallevel). Of these, about 2,525 persons would require specific, although short,training courses, both at the time of job entry and thereafter every two yearsfor upgrading (Annex 12). Course content would be established by the Secretariatof Employment and Wages and specialists would be recruited from each state tocarry out the program. To assist SINE during the starting up period (6 to 12months), the Secretariat of Employment and Wages would contract part-time local

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consultants who have relevant experience, for a total of 13 man-years equiv-alent. National fellowships would be awarded to about 100 persons for onemonth each to study specific topics in those states where SINE is already wellestablished. Foreign fellowships would be awarded to 10 persons to studyvocational guidance and the functioning of foreign employment services, andinternational specialists would be recruited in the field of labor marketanalysis and employment statistics. Finally, SINE would organize a seminar tobe held in early 1978 with participation of foreign specialists on the subjectof organizing and implementing employment information and placement programs.The Bank would be given an opportunity to comment on the detailed agenda andfinancial plan for the seminar prior to disbursement of loan funds for thispurpose.

Manpower Studies (Ministry of Labor)

4.21. Manpower studies would be carried out by the Secretariat of Manpower,on behalf of the Federal Council of Manpower, to establish an information baserelating to the existing stock of skilled manpower, install a system forthe continuous assessment of manpower needs and devise means to channel theinformation to the training agencies for use in their planning process.Furthermore, the Ministry of Labor would recommend and coordinate an evalua-tion program which would take the form of follow-up studies of traineesduring their transition to work. The Bank would review draft terms of refer-ence for the studies, and the Government gave assurances that the studiesthemselves would commence no later than January 1, 1978. The studies would bedesigned in close collaboration with the local agencies specialized in humanresources planning and implemented by the training agencies (SENAI, SENAC andSENAR).

Technical Assistance

4.22 The project would include the following technical assistance (Annex14): (a) About 9 man-years of international specialists' services, 1 man-yearof international fellowships and 4 man-years of fellowhips to other LatinAmerican countries to assist SENAR in establishing its rural mobile trainingprograms (complementing two man-years of assistance presently being providedby ILO under UNDP financing); (b) about 5.5 man-years of international special-ists' services and 10.5 man-years of international fellowships to assistFUNDACENTRO expand the occupational safety and health training programs;(c) about 4 man-years of international specialists' services and 7 man-yearsof fellowships to assist SINE in expanding its employment information andplacement services, and 6.8 man-years of international fellowships and US$60,000for a seminar on employment services; (d) about 14 man-years of nationalspecialists' services and 2.5 man-years of international fellowships to assistthe Secretariat of Manpower in coordinating vocational training at the nationallevel; (e) about 4.0 man-years of local specialists for the evaluation of SENAI'sindividualized instructional methodology in industrial training; and (f) about2.5 man-years of international fellowships for training the directors of SENACproject hotel schools and commercial training centers. The cost of technicalassistance is estimated as follows: US$55,000/ man-year for internationalspecialists' services; US$35,000/man-year for national specialists' services,and US$16,320/man-year for international (including other Latin American)

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fellowships. The UNDP would finance US$1.5 million equivalent of these tech-nical assistance costs under a project, for part of which the ILO would be theexecuting agency, and the Bank would finance the balance of about US$1.3million of the costs.

Evaluation

4.23 The Government gave assurances that: (a) by January 1, 1978 it wouldcause the Project Unit, in cooperation with the Secretariats of Manpower,Employment and Wages, and Labor Relations and the training agencies, to submitto the Bank an acceptable plan for monitoring and evaluating the qualitativeand quantitative impact of each of the project components in accordance withtheir stated objectives, and (b) within three months of the Closing Date ofthe loan, it would cause the Ministry of Labor to prepare and send to the Banka report providing a preliminary assessment of the project, its results andexperience gained during implementation.

Cost of the Project

4.24 The total project cost, net of identifiable taxes, is estimated atUS$92.51 million equivalent, as summarized below and detailed in Annexes 15-20.

- 21 -

US$(million)l'Local Foreign Total x of Total

(a) Industrial Training (SENAI) 19.63 3.16 22.79 24.6

- 13 Industrial Training Centers 16.58 3.16 19.74 21.3

- Staff Training 1.03 - 1.03 1.1- Technical Assistance 0.14 - 0.14 0.2- Project Administration 1.88 - 1.88 2.0

(b) Hotel and CommercialTraining(SENAC) 17.46 1.60 19.06 20.6

- 3 Hotel Schools 13.81 1.37 15.18 16.4- 3 Commercial Training Centers 1.63 0.20 1.83 2.0- Technical Assistance 0.01 0.03 0.04 -- Staff Training 0.22 - 0.22 0.2- Teaching Materials 0.18 - 0.18 0.2- Project Administration 1.61 - 1.61 1.7

(c) Rural Training (SENAR) 8.99 5.10 14.09 15.2

- 180 Mobile Units 8.79 4.74 13.53 14.6- Technical Assistance 0.20 0.36 0.56 0.6

(d) Occupational Safety and HealthTraining (FUNDACENTRO) 4.13 1.18 5.31 5.7

- 9 Occupational SafetyTraining Centers 3.53 0.87 4.40 4.7

- Technical Assistance 0.17 0.31 0.48 0.5- Project Administration 0.43 - 0.43 0.5

(e) Employment Information andPlacement Services (SINE) 1.22 0.38 1.60 1.7

- Staff Training 1.08 0.12 1.20 1.3- Technical Assistance 0.14 0.26 0.40 0.4

(f) Ministry of Labor 3.24 0.33 3.57 3.9_

- Manpower Studies 1.00 - 1.00 1.1- Technical Assistance 0.18 0.33 0.51 0.6- Project Administration 2.06 - 2.06 2.2

Base Cost Estimates (a-f) 54.67 11.75 66.42 71.8

Contingencies 21.40 4.69 26.09 28.2

- Physical (11.9%) 6.49 1.42 7.91 8.6- Price (24.4%) 14.91 3.27 18.18 19.6

Total Project Costs 76.07 16.44 92.51 100.0

1/ Base costs estimated in expected prices as of April 1977 (US$1.00 = Cr$13.50).Differences due to rounding.

- 22 -

4.25 Construction costs have been estimated at US$280/M2 for SENAI,industrial training centers, and SENAC commercial training centers,US$440 for SENAC hotel schools, and US$407 for the FUNDACENTRO headquarters/training center. Cost estimates are based on data obtained from privateenterprises in seven of the 15 cities where project institutions would belocated, and they assume functional and economical accomodation schedules andspecifications which emphasize low maintenance costs and maximum use of localbuilding materials. All facilities would be used intensively on a multipleshift basis. Industrial and commercial training centers would be one storyreinforced concrete structures with brick interior walls and roofs of eitherflat concrete slabs or steel trusses with asbestos-cement or tiles. Simpleconcrete and poly-vinyl flooring would be used, and electrical, mechanical andsanitary installations would be flexibly designed to permit future adaptationof facilities to varying training purposes. The FUNDACENTRO headquarters/training center in Sao Paulo would be of similar standards, except that itwould have three to four stories and include air conditioners because of thenature of the equipment to be installed. The hotel schools would be of six toeight stories and would generally conform to the areas and standards appro-priate to a first class hotel in Brazil; site works would include a swimmingpool and parking facilities. The costs of site acquisition have not beenincluded in total project costs, because most sites are already owned by thetraining agencies and the Ministry of Labor or are expected to be donated atno cost by the communities. Furniture and equipment costs are based onpreliminary lists prepared by the training agencies and modified to reflectrecent experience with similar Bank-financed vocational training programs inLatin America.

4.26 Contingency allowances have been added to base cost estimates (ex-pressed in US dollars) for: (a) unforseen factors equal to 10 percent of basecost estimates for construction, furniture, technical assistance, stafftraining, labor market and evaluation studies, teaching materials productionand professional services, and 15 percent of base cost estimates for siteworks, equipment and project administration; and (b) expected price increasesestimated for construction at 13.5 percent in 1977, 13 percent in 1978, 12.5percent in 1979 and 12 percent annually in 1980-81, and for all other cate-gories at 8.5 percent in 1977, 8 percent in 1978, 7.5 percent in 1979, and 7percent annually in 1980-81 (Annex 20).

4.27 The foreign exchange component of the project would be about US$16.44million equivalent, representing 17.8 percent of total project costs. This hasbeen calculated as follows: (a) site development, 6 percent; (b) construction,10 percent; (c) equipment, 35 percent; (d) technical assistance, 65 percent,and (e) staff training, 5 percent.

Project Recurrent Costs

4.28 The annual recurrent costs of the project institutions and mobileunits at full implementation in 1981 would be about US$23.25 million (1977prices), equivalent to about 10 percent of the projected total recurrentexpenditures of the agencies in that year, as follows (Annexes 21-24):

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(US$ million)Recurrent Costs in 1981 Total Recurrent

Project Expenditures in PercentageAgency Total Institutions 1977 (2)/(1) (2)/(3)

(1) (2) (3)

SENAI 116.0 13.0 76.1 11.2 17.0SENAC 39.0 2.3 15.1 5.9 15.2SENAR 21.7 7.0 8.0 32.2 87.5FUNDACENTRO 3.1 0.42 1.0 13.5 42.0Ministry of Labor

(including SINE) 52.3 0.53 31.0 1.0 1.7

Totals 232.1 23.25 131.2 10.0 17.8

The recurrent costs of the SENAI industrial and SENAC commercial training centersare well within the projected income of both agencies from their respectivepayroll taxes. The SENAC hotel schools would be self-financed out of the earn-ings of the hotels. FUNDACENTRO's recurrent costs would be financed in themain by its payroll tax (90 percent), supplemented by a small Governmentcontribution (10 percent) already earmarked for that purpose. Through 1978,the recurrent costs of SENAR (including those of the project training programs)will be financed by a special development fund earmarked for that purpose undera presidential decree. The Government gave assurances that it would take thenecessary steps to meet all of the operating costs of SENAR and SINE and tocause SENAI, SENAC and FUNDACENTRO to make adequate budgetary allocations tomeet the respective recurrent costs generated under the project.

V. IMPLEMENTATION AND DISBURSEMENTS

Project Administration

5.01 Project administration would be a cooperative venture on the part ofthe Ministry of Labor and the training agencies (Annex 25). A special ProjectUnit would be established within the Ministry of Labor, for the purposes ofcoordinating implementation and maintaining financial control of the projectthrough (a) the Secretary of Manpower for the SENAI, SENAC and SENAR compo-nents; (b) the Secretary of Employment and Wages for the SINE component; and(c) the Secretary of Labor Relations for the FUNDACENTRO component. TheProject Unit would report to the Secretary General (Vice-Ministry). Therespective functions and responsibilities of the Project Unit, Secretaries andagencies, implementation schedules, procedures for the transfer of Bank loanfunds and local counterpart financing, and the procurement arrangements to beused under the project would all be detailed in: (a) subsidiary agreementsbetween the Ministry of Labor and SENAI, SENAC and FUNDACENTRO, and (b) intra-ministerial operating programs drawn up by the Ministry of Labor for the SINEand SENAR components. The Bank would review drafts of the subsidiary agree-ments and the operating programs, and their signing, after approval by theBank, would be a condition of loan effectiveness.

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5.02 The Project Unit would comprise a director, architect, civil engineer,vocational training specialist, programmer and accountant, all appointed on afull-time basis in consultation with the Bank. The loan would reimburse 20percent of the total costs of project administration, including: (a) 100percent of the salaries of the aforementioned Project Unit staff over theimplementation period of the project, estimated at US$981,000; and (b) theequivalent of 2-1/2 man-years of consultant services, estimated at US$210,000,to permit the Project Unit to retain such short-term specialists as it mayrequire to assist it in procurement matters (e.g. lawyers, equipment special-ists).

Professional and Technical Services

5.03 All architectural design work and related engineering and constructionsupervision would be assigned to consultant firms employed by the trainingagencies on terms and conditions acceptable to the Bank, except in the case of:(a) SENAI's regional office in Sao Paulo, which has permanent staff for suchactivities; and (b) SENAC's hotel schools and commercial training centers, forwhich preliminary design work only would be performed by architects at SENACnational headquarters, who have already handled similar operations. Equipmentand furniture lists and specifications would be drafted by the trainingagencies. All architectural designs and equipment and furniture lists wouldhave to be approved by the Ministry of Labor before they are submitted forapproval to the Bank. The cost of professional services (architecturaldesigns and related engineering and construction supervision) for FUNDACENTRO'snational headquarters building in Sao Paulo would be reimbursed under the loan.

Implementation Schedule

5.04 To assist in the effective and timely execution of the project, animplementation schedule has been prepared (Annex 26). This schedule was dis-cussed during appraisal and mutually agreed upon with the Ministry of Labor asa project implementation and monitoring tool which would be updated regularlyby the Project Unit in consultation with the Secretariats of Mlanpower, Employ-ment and Wages, and Labor Relations, and the training agencies.

Sites

5.05 SENAI has already selected acceptable sites for the construction ofthe industrial training centers, and no difficulties are foreseen in theirtimely acquisition. SENAC already owns two of the three sites for construc-tion of hotel schools and all three sites for the commercial training centers.All are acceptable, and no difficulties are foreseen in the timely selectionand acquisition of the site for the third hotel school. FUNDACENTRO is seek-ing a suitable site for the construction of its national headquarters/trainingcenter in Sao Paulo; submission to the Bank of evidence that the Governmenthas rented or acquired acceptable premises for the eight regional centers tobe equipped under the project would be a condition of loan disbursement forthe purchase of such equipment.

- 25 -

Maintenance

5.06 SENAI, SENAC and FUNDACENTRO would each be responsible for theregular inspection and repair of their own facilites. For proper and effect-ive maintenance and operation of the mobile units, SENAR would prepare amaintenance handbook and establish appropriate procedures. The Governmentgave assurances at negotiations that it would make or cause to be made ade-quate budgetary allocations for the maintenance and repair of all buildings,furniture and equipment provided under the project.

Procurement

5.07 All civil works contracts expected to exceed US$3.0 million andequipment contracts (except for vehicles) would be awarded on the basis ofinternational competitive bidding in accordance with the Bank's guidelines.Civil works contracts for lesser amounts and all contracts for furniture andvehicles would be awarded on the basis of competitive bidding advertisedlocally in accordance with procedures acceptable to the Bank. However, suchfurniture and equipment which cannot be grouped into packages of at leastUS$50,000 may be purchased in accordance with regular Government procurementprocedures which are acceptable to the Bank. The total value of items pur-chased in this manner would not exceed US$3,800,000 (equivalent to about 15percent of the total estimated value of furniture and equipment). Domesticmanufacturers of furniture and equipment (defined under Brazilian law as thosewhose bids contain components manufactured in Brazil equal to at least 50percent of the total bid) would be allowed a preferential margin in bidevaluation of 15 percent of the c.i.f. price or the prevailing tariff, which-ever is lower.

Disbursements

5.08 The proposed loan of US$32.0 million, equivalent to 35 percent ofthe estimated total project cost of US$92.51 million, would finance 94% ofthe foreign exchange component (US$15.47 million) and 22 percent (US$16.53million) of local currency costs. The UNDP would finance US$1.5 million oftechnical assistance costs, and the Federal Government and the trainingagencies would finance the balance of project costs. The loan would bedisbursed over a 5-1/2 year period (Annex 27), with the project completed byJune 30, 1982. Disbursements would finance an estimated: (a) 100% of foreignexpenditures or 26% of local expenditures for equipment; (b) 35% of totalexpenditures for site development, selected professional services, construc-tion, furniture, staff training, studies and teaching materials production;and (c) 100% of selected technical assistance and project administrationexpenditures.

V. BENEFITS, RISKS AND UNCERTAINTIES

Benefits

6.01 The project would develop the capacity of the Ministry of Laborto perform its functions within the newly established National Vocational

- 26 -

Training System (para. 3.05 (c)). These are basically to coordinate andrationalize the expansion of the major public and private vocational trainingagencies in Brazil (SENAI, SENAC, PIPMO/SENAR), with a view towards alleviat-ing shortages of middle-level, skilled and semi-skilled workers in the primary,secondary and tertiary sectors of the economy in accordance with establisheddevelopment priorities. The channeling of loan funds through the Ministry ofLabor to the training agencies, the establishment of a Project Unit in theMinistry of Labor to assist it in implementing the project, and the provisionof substantial specialists' services and fellowships to the Ministry of Laborin the planning and management of vocational training, would all contributeto this end.

6.02 Besides this institution building impact, the project would alsoprovide for a substantial increase in vocational training opportunities inselected sub-sectors and geographic areas through the physical facilities tobe financed. Training in the rural sector would be increased some two andone-half times to meet an estimated 40 percent of national requirements fortrained rural manpower, with emphasis on those regions where there are on-going or planned agricultural and rural development projects. There would bea further 13 percent increase in the output of trained industrial manpower inthe nine project states, where industry is concentrated and such demand ishighest. For the first time, commercial training would be introduced in onestate and two federal territories in the North and Center West regions of thecountry to meet a growing demand for trained personnel. Lastly, with regardto the tourism industry, expansion of hotel schools based on the pedagogicenterprise concept would double the output of trained manpower for the hotelindustry. To complement these vocational training programs, the projectwould also provide for the expansion of a national employment informationand placement system (SINE) under the direction of the Ministry of Labor.

6.03 Finally, the project would provide for the expansion nationwideof an occupational safety and health training program, under the directionof the Ministry of Labor (FUNDACENTRO). Besides the considerable but unquanti-fiable social and personal welfare benefits of such an endeavor, this projectcomponent would have a purely economic rate of return on investment of about26 percent (Annex 11). The benefit stream includes a conservative estimateof the reduction in the loss of total hours worked and of medical costs ofaccidents. The cost stream includes the agency and Ministry of Labor'scapital and recurrent costs for the program and the recurrent costs incurredby the firms required to establish safety programs within a 15-year period.

Risks and Uncertainties

6.04 There would be no major risks of a technical nature associated withthe project. The main participating agencies (SENAI, SENAC, PIPMO/SENAR) haveconsiderable experience in their respective fields of training. The compo-nents for SINE and FUNDACENTRO, which have much less experience, would be ofa reasonable scale that is manageable in the Brazilian context. More subjectto uncertainty would be the institutional objective of the project -- that is,the extent to which the Ministry of Labor would be able to develop its full

- 27 -

potential for coordinating the National Vocational Training System and partic-ularly to guide the activities of the well established agencies such as SENAIand SENAC. The actions taken by the Government during the past three years asdescribed in para. 3.05 above, and the project implementation and financingarrangements described in para. 6.01 above have been designed to foster theseends.

VII. AGREEMENTS REACHED AND RECOMMENDATION

7.01 The Government has given assurances that:

(a) by June 30, 1979, all appropriate action would have been takento obtain official recognition of the new SENAI higher tech-nician degree in instrumentation (para. 4.03);

(b) the operational year for all project training institutionswould be established at a minimum of 45 weeks (paras. 4.04,4.09, 4.11, 4.14);

(c) during project implementation, action would be taken toestablish: (i) minimum standards regarding the contentand duration (according to the method of instruction) ofSENAI's courses for the most common occupations, and(ii) an adequate system for the exchange of informationand experience among all the regional departments ofSENAI (para. 4.05);

(d) by January 1, 1978, the evaluation study by SENAI of itsindividualized instruction techniques would have commenced(para. 4.07);

(e) by June 30, 1978, SENAR would furnish to the Bank an acceptabledetailed training program showing the annual itinerary of themobile units and similar programs would be submitted by June 30 ofeach year thereafter during the period of project implementation(para. 4.17);

(f) by April 1, 1978, the key administrative and support staff ofSENAR would have been appointed (para. 4.18);

(g) the Project Unit, in cooperation with the training agencies andother local agencies specialized in human resources planning, wouldfurnish to the Bank acceptable terms of reference for the manpowerand follow-up studies and by January 1, 1978, such studies wouldhave commenced (para. 4.21);

- 28 -

(h) by January 1, 1978, the Project Unit, in cooperation withthe Ministry of Labor and the training agencies, would submitto the Bank an acceptable plan for monitoring and evaluatingthe qualitative and quantitative impact of each component of theproject (para. 4.23);

(i) within three months of the Closing Date of the loan, the Ministryof Labor would prepare and send to the Bank a report providing apreliminary assessment of the project (para. 4.23);

(j) the necessary steps would be taken to meet all of the operatingcosts of the project (para. 4.28);

(k) a director, architect, civil engineer, vocational trainingspecialist, programmer and accountant would be appointed to theProject Unit on a full-time basis in consultation with the Bank(para. 5.02); and

(1) adequate budgetary allocations would be made for the maintenanceand repair of all buildings, furniture and equipment providedunder the project (para. 5.06).

7.02 The following would be conditions of effectiveness of the proposedloan:

(a) the signing of acceptable subsidiary agreements between theMinistry of Labor and SENAI, SENAC and FUNDACENTRO, and theapproval of the Ministry of Labor of acceptable operatingprograms for the SINE and SENAR components of the project (para.5.01); and

(b) the establishment within the Ministry of Labor of a ProjectUnit (para. 5.01).

7.03 The following would be conditions of disbursement under the proposedloan for the respective portions of the project:

(a) for the staff training courses for instructors and supervisorsof SENAI and SENAC, the drawing up of acceptable contractsbetween the Ministry of Labor, SENAI/SENAC and the collaborat-ing instructor training institution(s) (paras. 4.06, 4.09, and4.11);

(b) for the SENAR component, the signing of acceptable agreementsbetween SENAR and collaborating agricultural agencies regardingthe operation of the rural mobile training units (para. 4.17);

(c) for the purchase of equipment for FUNDACENTRO's eight regionalcenters, submission to the Bank of evidence of the acquisitionor renting of suitable premises by the Government (para. 5.05);and

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(d) for the employment services seminar, the opportunity for theBank to comment on the detailed agenda and financial plan(para. 4.20).

7.04 Subject to the above assurances and conditions, the project consti-tutes a suitable basis for a Bank loan of US$32.0 million to the FederativeRepublic of Brazil for a term of 17 years including a 3-1/2 year period ofgrace.

May 26, 1977

ANNEX 1

BRAZIL

Vocational Training Project

Population (1970-1985)

% of Annual Change1970 1975 1980 1985 75/70 80/75 85/80 85/70

(a)Total PopulAtlin ('000) 9.60 107.000 222.8h0 3Il. 2 8 2.8 2.8O0- 4 L5*100 17,200 19,940 21,700 2.6 2. 2.25 - 14 214,400 27,700 31,660 35s950 2.6 2.7 2.6 2.615 - 24 18,000 21,200 23,900 27,110 3.3 2.4 2.5 2.7

25 and over 35o260 40,90o 47,,84O 566,,24o 3.O 3.1 3.2 3.1

(b)Geographic distribu-tion () 100 100 100 100

North 3.85 3.93 4.00 4.08 0.5 0.5 0.5 0.5Northeast 30.30 29.65 29.15 28.52 0.5 0.4 0.5 0.5Center West 5.45 6.16 6.93 7.79 2.5 2.5 2.3 2.4Southeast 42.70 42.06 41.44 40.83 0.4 0.4 0.5 0.4South 17.70 18.20 18.48 18.78 0.6 0.4 0.4 0.4

Rural 43.0 40.0 36.0 32.0 -1.4 -2.0 -2.1 -1.8

Labor Force ('000) 29.400 34.100 39.40o 46.00 3.0 -3.0 3.1 3.0

Source: (a) World Bank Atas (1976) and UN Dmuographio Indicatorj (1975).(b) Inastituto Brasileiro de Geografia e Estatistica (TIBE) - 1976.

%ay 16, 1977

BRAZIL

Vocational Training Pro.iect

GDP. Enrloymrnt and Productivity (1970-1985)

(At 1973 Prices US$14) 8 (% of Total GDP) (I of anmal chan8)IZO 1M l9dO PIJ.E 1970 1M 197 0 195 17 196017 19,5190 -195770

1. Total GDP 45, 298 71.322 97.107 146.612 100 100 100 100 6.4 8.6 8.1

(at factor cost)Agriculture 7,895 10,698 13,700 17,600 17.4 15.0 14.1 12.0 6.2 5.1 5.1 5-5Industry 14,153 23,424 31,900 50,000 31.3 32.8 32.9 34.1 10.6 6.4 9.4 8.8Services 23,250 37,200 51,500 79s000 5L 3 52.2 53.0 53.9 9.9 6.7 8.9 8.5

(Value added per worker at 1973 US$) (% of Avera pe) (% of annual chanpe)1970 1975 1980 -i 1970 1M l9d -9 =0 198d/70 19b5/d0 1977.7

2. Productivity 1.665 2.207 2 .r o 100 100 100 100 5 8 4.0 5.0 La

Agriculture 663 830 1,000 1,220 40 37 37 35 4.6 3.8 4.0 4.2Industry 2,883 3,700 4,670 6,000 173 168 173 174 5.1 4.8 5o0 4.9Services 2,235 2,860 3,300 3,900 134 129 122 113 5.0 2.9 3.4 3.8

(t°0°) (% of Total Iaior Force) (% of annual change)1970 1975 1980 1985 1970 1= 1980 1928 192. 1960t?7 195•180 19 S/7

3. Labor Force 29> 0 1o 100 100 100 100 3.0 0 3.1 3.0Emaloyrren 27.200 J2,4XS 36.700 41.800 92.5 95.0 93.1 q,_2 2. .4 3.6 3.2Agricult u r l I9 I 130d00 450.4 37.8 35.0 31 5 7 1.3 1.1 1.3Industry 4,900 6,4oo 6,900 8,600 16.7 18.8 17.5 18.7 5.5 1.6 4.4 3.9Services 10,400 13,200 16,000 20,700 35.4 38.4 40.6 45.0 4.9 3.8 5.5 4.7Unemployrent 2 200 1,700- 2,700 2.200 7.5 5.0 6.9 4. -5.3 9.6 - 2.4 -

4. Educatianal Profile of the Labor Force (% in 1970)

Sectors Illiterate 1-3 years 4-5 wars 6-9 years 10-12 YearS University Total

Prirary 5.6 33.7 9.6 0.8 0.2 0.1 100 I!Secondary 21.8 30.2 32.1 9.6 4.2 2.1 100Tertiary 16.9 23.6 30.0 14.2 10.4 4.9 100BRAZIL 35.8 28.4 21.3 7. 408 2.3 100

Z c-cc: ho. 1 (all) and Noo. 2 & 3 1970-75: sank Eccncric Memorandum No. 1267 aeR of January 1977.Nlon. 2 & 3 1975- 8 5!icssion Pro-cctiona.No. 4:1970 Con--us.

M'ay 16, 1977

ANNEX 3

BRAZIL

Vocational Training Project

Employment and Training Needs - Primary Sector

a) Labor Force in Primary Sector (1981)

Primary Sector Labor Force ('000) Regional Primary

of which Sector Labor ForceSelf Family Members Total National

Regions Total Employees Employed Employers Without Wages Rural Labor Force

Brazil 13,900 3,658 7,573 217 2,452 100.00North 580 74 394 2 110 4.17Northeast 5,500 1,314 3,233 53 900 39.57Center West 820 170 550 16 84 5.90Southeast 3,800 1,600 1,680 100 420 27.34South 3,200 500 1,716 46 938 23.02

b) Primary Labor Force by Subsectors (1981)

Subsector Labor Force %('OOOs)

Agriculture 12,321 88.64Livestock 861 6.20Forestry 46 0.33Fishery and Hunting 163 1.17Vegetable Extraction 381 2.74Others 128 0.92

Total 13,900 100.00

c) Annual Skilled Manpower Required for On-going and PlannedRural Development Projects (1977-85)1/

Manpower required ('000s)Skilled and Mid-Level

Region Semi skilled Technicians

North 40 20Northeast 300 150Center West 30 15Southeast 40 25South 30 20Brazil 440 230

- Assumptions are based on experience gained in on-going Polonordeste Rural DevelopmentProject: half the total agricultural labor force will require training, of whom 65%as semi-skilled workers and 35% as skilled workers, to meet the plan's objectives.

Source: POLONORDESTE, SUDENE and Mission estimates. Also SENAR estimates from theintegrated rural development projects in North, Northeast and Center West Brazil,and from priority rural development projects in other regions.

May 16, 1977

aDI 4

Suzz ~ ~ EL

Vocational Tralninzf jresot

Proisort States - Iag1oy.mtb and Traixdnz Needs - Immuidwy BaSool (1975-1985)

SIA cdoxW4 (3V81)Bmlnint L1oo) 1Anna AMrstio.la UMW^gda

Project 195 Mlnpowr Of ubJeh Of iliohStates- E rBeln ROOIUnT^lPo Ig. oz P8. n"

Bahia 350 442 20,300 3475 120 4,765 300

Pernambuco 288 335 139200 1,355 300 2,035 300

Distrito Federal 60 94 5s,000 2,325 660 3,490 2,250

GoiAs 106 137 6,0oo 1,800 180 2,700 210

Espirito Santo 74 103 5,200 1,565 200 2,345 740

Minas Gerais 678 902 439600 2,210 1,266 3,320 334

Rio de Jarwiro 890 1,200 57J300 169055 860 24,080 800

Sto Paulo 2,646 3,600 170,300 43,565 5*930 65,350 30,100

Rio Gruido do SUl _ 520 700 33.300 7.235 - 660 l08 .0 .9

Total 5.612 354.200 79.285 10.U76 318,935 15,¢24

%) - - (100%) (22%) (3%)/ - -

Y Based an monthly indtstrial cenOua of "Boletim Teonic" of the MnintrY of Labor.

i/ Augu a copound annual growtJh rate In .nyeyunt by state, in the order of whichStates are listed, of 2.5%, 1.5%, 4.5%, 2.5%, 3.5%J 3.0%, 3.0%, 3.0% and 3.0%.

I/ Includes mnpowr requdremint due to attrition (3% pea.).

i Project Institutions' output would represent an Increase of 13% of SSNAI totaloutput in 1981.

Sources SENAI and Bia n projection.*

May 16, 1977

VOCAOatIe Twaiaiaa Pxeot

TStlwr 8.otr IlM t ad draiaina e"da (1975-3985)

Seleoted Tertiary 19T5 15 _pr EH1 Cinial

Sector Activities 1fIJOUL Preinoio 11ZaI T1 Seol C2EELo L

Hotel 70 166 13,100 6s,400 3,198 - 3,198

Catering 15 216 13, 500 11,520 2,283 135 2#418

Administrative andOffioe Workwr 1,300 2,221 131,100 114#000 1,200 29520 3,720

Persanzel Serwices 29 50 2,900 1lo490 426 225 651

Sales 2.400 3 222.900 23.600 _1 90 2L0

Total 910_ 6A62 3,50 17.0l0 72 2.970 10.227

(%) (100%) (41%) (All

I/ Includes mnpeir requiremens due to attrition (5% p.a. in the hotel indutryand 3% p.a. In the other subsetwis).

X/ Total SEMAC output wild be 200,000 in 1981, of ihich 14,450, inol2ding ulWrading,would be from Project Lutitutiuis in these five subseotor training areas.

/ Project Instituticnst output would represent an increase of 31% of total SCKACoutput in the hotel and catering subsectors hi&ch would cover about 25% and18% of the training needs respectively.

Sourest SENAC and mission projections.

MaY 16, 1977

13RA.ZIL

Vocational Training_Pro,ject

Selected State and Territories - Employment and Training Needs - Commercial and Services Sector '

Employment Proposed

Annual ~AnnualEmployment (1970-1985) Needs for Output

Population 1970 Census Tertiary Employment Tertiary SENAt

1950 1970 Tertiary Projected 2/ Sector C,eterCensus Census Total Sector 1975 1980 1985 (1975-1985(1

Amapa 21,000 86,000 29,104 12,158 21,580 34,800 53,600 3,200 1,650(Macapa)

Rondonia 27,000 84,000 33,903 13,774 21,040 29,880 40,900 1,986 1,650 /(Porto Velho)

Mato Grosso n.a. 1,600,494 494,503 140,250 175,875 211,750 249,450 7,350 1,650(Campo Grande)

/ Excluding Tourism.

/ Resulting from the spill over effect of Lndustrial developsent, euploymnt In this seotor is expectedto have a 9.5% yearly rate of growth in Macapc 7% in Pbrto Velho and 3.5% in Campo Grande.

3/ Actually 5ENAC proposes to start the operation of this center at 50% of capacity in 1981, 75% in 1982and l00% in 1983.

May 16, 1977

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N 4 4 ,.0Nh141 3

ANNEX 8

BRAZIL

Vocational Training ProJect

Act1ivties of PIPMO & SENUR

Activity PIPMO SENAR Remarks

A. Planning of Manpower Training

i) Analysis of employment situation(labor market) no yes with respective agencies

ii) Definition of training priorities no occasionally only is done by respectiveagencies

iii) Definition of training needs partially, through yesspecialized agencies

iv) Identification of:a) problems concerning manpower

training done by SMOb) priority programs yes previously done by SMO

B. Programming of Manpower Training

always in collaborationi) Definition of modalities of yes, with respons- yes with responsible agency

action (which kind of training, ible agencywhere, by whom, etc.)

ii) Preparation of trainingprograms yes yes

iii) Programming of selected modali- yes, with respons- yesties of action ible agency

C. Implementation of Training Program

i) Preparation of teaching aids financial assistance yes SENAR will also sub-to methodology contract, when necces-

sary

ii) Training of instructors financial assistance yesand training

iii) Provision of training no yes specialized agenciesequipment also

iv) Direct execution of training no nly partially- done by specializedprograms agencies

D. Monitoring and Evaluation ofTraining Programs

i) Monitoring yes yes SENAR will operate in

ii) Supervision partially yes strict collaborationwith the specializediii) Evaluation no yes agencies

SMO = Secretaria de Mgo-de-Obra

l/ SENAR will provide own instructors for the following courses: bricklayer and masonry,carpentry,installation electricity and agricultural mechanics.

BRAZIL

Vocatioal Trsininz Prosect

Occupational Accidents. 1970 - 197E

DirectTotal Percentage of Average of Days Cost per

Year Insured Workers Accidents Insured Work Force Deaths Lost per Accident Accident (S$) L

1970 7,284,022 1,220,111 16.75 2,232 17 42

1971 7,649,848 1,330,523 17.39 2,587 16 61

1972 8,001,877 1,504,723 18.80 2,805 17 84

1973 10,956,956 1,632,696 14.91 3,122 20 105

1974 11,537,024 1,796,761 15.57 2,764 20 118

1975 12,996,796 1,916,187 14.74 3,942 _ 105

v Total accidents/total estimated cost (see para. 3.14)

Source: Instituto Nacional de Previd8hcia Social.

May 16, 1977

ANNEX 10

BRAZIL

Vocational Training Project

Output of FUNDACENTRO Network1981

High Level Middle Level Total

Medical Safety Industrial Assistant Supervisors trainedStates Officer Engineer Nurse Nurse of Work Safety by State

Alagoas 40 58 - 42 98 238Amazonas 64 88 25 56 153 386Bahia 82 113 35 110 202 542Ceara 64 88 25 56 153 386Dist.Federal 42 42 22 43 53 202EspiritoSanto 64 88 30 54 152 388Goias 64 88 - 54 153 359Maranhao 42 58 22 42 98 262Mato Grosso 62 88 22 54 154 380Minas Gerais 324 456 62 290 808 1,940Par! 62 88 25 64 154 393Para'ba 42 58 - 43 98 241Parana 104 138 38 90 252 622Pernambuco 164 220 28 146 406 964Piaui 42 63 22 42 98 267Rio Grandedo Norte 42 58 - 43 98 241Rio Grandedo Sul 325 462 76 294 808 1,965Rio deJaneiro 322 460 58 280 806 1,926SantaCatarina 84 120 46 120 202 572Sao Paulo 2,066 2,883 184 1,640 5,044 11,817Sergipe 42 48 - 40 99 229

Total 4,143 5,765 720 3,603 10,089 24,320

May 16, 1977

BR A7ZTI,

VoiLnonTrininPrjc(t

Occupational Safety and Hy isiene Campaigr'

Rate of Retlrn AnalysisJ-OoRs (Th TJs$ M Benefits Tn US li

T~~~~Rlecurron 1,

Recurrent Costs Pri- (% of ac4S- 11adical and Pxo-Year C2apital IiUJTDACTlTIJT() Overhead vate Firmis Total. (etsS Va es luction Los sW Total

(2%of-?)

1977 0. f22 8 .17 2.94 17l 15-1978 1.91 .93 .19 8.80 11.83 Vl 1.27 5eO3 6.351979 3.75 1.03 .21 17.61 22.60 11- 1/2 ). el5' 17.80 22.051980 1.47 1.13 .23 35.22 35.o5 ? '7.c2 30.48 38.101.931 .10 1.24 .25 5'8,- 73 60032 8-1/2 8.26 4L30 49.561]982 .10 1.36 *27 5t873 6o.1b6 8 8 3<8 3 1.!4.65 53.341983 .10 1. ,30 5y1.73 Oo.63 7ll/ 95'3 57 .18 66.71198h) .10 1.65' 33 5'8.73 60.81 7 10.16 60.96 71.121985 o10( 1.65' _33 t t373 608]1. 6-1/2 10,(M 61.o8o 75.601986 .10 1.70 .34 5'8.73 60.87 6 I1IJ3 68,5i3 80.011987 o10 1-70 o34 35873 6o.87 6 11.b3 68 3 8 80.011L988 110 180 .36 5'8.73 6o.s99 6 11.113 6805;8 80.011989 .10 1080 .3G '8.73 60.99 6 11.13 68.58 80.011990 .10 1.90 .38 58 73 61,11 6 11,43 63, 58 80.011991 .10 1.(0) .38 5'8.73 61.11 6 11,43 68.5'8 81.51

/ Shadow exchange rates were not used; in this case they would not have had a significant impact on theeccnomic rate of return.

/ Include total capital and recurrent costs for the whole National Program carried out by the Ministryof Labor, FUT,JA(GENTR0 and private finms.

Expected reduction of accidents is from 1551 of total work forces in 1976 to 8% in 1981, 1/2% per yearin 1982-86 and stabilization afterwards.

4 x 1 in 1978-80, 5 x 1 in 1981-82 and 6 times afterwards.frTwo-thirds of the value of the FUNDACENTROt s Headquarters in Sao Paulo. pMay 16, 1977

ANNEX 12

BRAZ Th

Vocational Training Project

Staff Training Program for SINE 1977-1979

Post Number Course Course durationof Staff Location Initial Training Upgrading

Program Chiefs 25 Brasilia 30 hours 30 hoursPromotors 25 of 30 hours 30 hoursAnalysts and Research

Assistants 100 Regional 30 hours 18 hoursAdministrative

Assistants 25 Brasilia 18 hours 18 hoursAgency Chiefs 250 States 30 hours 18 hoursSocial Assistants 250 of 30 hours 18 hoursTraining Offices 250 it 30 hours 18 hoursPlacement Officers 900 It 30 hours 18 hoursDesk Assistants 700 18 hours 12 hours

TOTAL 2,525

May 16, 1977

BRAZIL

Vocational Training System

National Vocational Training System Organization Chart

Ministry of | _ Federal Council - P.njg oa fLabor \ \ of Manpower Presidency of

the FLepblicpeeretariat General

Secretariat of Secretariat Secretariat of|Labr Rlaions of Manpower Employment and8 Labor Relations' |Wages

|FUNDACENTRO| S 11

PIPMO t ~SENAR(non Rural (Rural

Sectors) Sectors)

I Confederation \ _ _ _ _ _ _ _ _ __ _ . _ __ _ _ Confederation

of Industry SEEAC

I ~ ~~~~ i -

Executive relationship-------- Advisory relatimshlp

1/ Not an institution but a program of the respective Secretariat.

2/ Regional Centers of SENAI and SENAC.

ANNEX 13Page 2 of 4

BRAZIL

Vocational Training Project

SENAI: National Structure

National Council: Representatives of theMinistries of Planning, Finance, Edu-cation and Labor, of the workers' and em- Ministryployers' organizations and of the Fede- of Labor

ration of Commerce _

tTechnical Advisers National Headquarters Legal Advisers| ~~Director

|Vocational | | Upgrading| |Payrol| | Accounting| jlTraining in & In-Service Tax & PersonnelSENAI Centers Training l|Control Budgeting

I i Cooperation General Publicwith Services Treasury Relations

Enterprises .

Executive relationship

Advisory relationship

A! Regional Centers.

ANNEX 13Page 3 of 4

BRAZIL

Vocational Training Project

SENAC: National Structure

National Council: Representatives ot the

Ministries of Planning, Finance$ Edu-

cation and Labor, of the workers' and enm- Ministry of

ployers' organizations and of the Fede-- _ Labor

ration of Commerce

SENAC Legal

National Headquarters Council

Director_

Technical andAdministrative

Commission I

jVocational Research Orien- Statis- Architec- Adminis-

Training & tation tistics ture & tration Personnel

Divisiorn Planning Division Division Communica Division

Division tion Di-

. vision .

Executive relationship

- - - - - - - Advisory relationship

- SENAC Regional Centers

BRAZIL

Vocational Training Project

FUNDACENTRO: National Structure

Ministry ofCOUNCILS Labor

CURATORIAL - FINANCEDELIBERATIVE - TECHNICAL

ADVISERS- LEGAL

SUPERINTENDENT ; _ - PUBLIC RELATIONS

.~~INTENDENT - PLANNING

- INTERNATIONAL

NATIONAL TECHNICAL CENTER

SAO PAULO

DEPARTMENT DEPARTMENT [DEPARTMENT DEPARTMENT DEPARTMENT DEPARTMENT DEPARTMENT COORDINATIO ADMINIS ACCOUNTING

OF OF OF OF OF OF OF REGIONAL TRATIVE DEPARTMENT

WORK WORK WORK AGRICULTURAL WORK EDUCATION DOCUMENTAT CENTERS DEPT.

SAFETY HYGIENE MEDICINE SAFETY PSYCHOLOGY ION

rifEmay 16, 1977

o w

ANNEX 1LPage 1 of 3

BRAZIL

Vocational Train.ng Project

Technical Assistance Schedule

TotalA. Specialists Im 1,977 1978 17 1980 1981 1982

1. SENAR 110 9 35 21 1 -

Rural TrainingPlanning 18 - 12 6 - - -

Organization ofl4obile Units 8 3 - 2 2 1 -

Preparatian Inst.iaterials 18 4 8 3 3 - -

Instructor Training 30 - 12 12 6 - -

Program Control &Evaluation 36 2 12 12 10 - -

2. S:IE 218 3 24 2

labor MarketAnaLysis 24 3 12 9 - - -

EraploymentStatistics 24 - 12 12 -

Seminar./

3. FlmACENTRO 66 12 42 12 _

National Plannming &Ooordination ofexperts 24 6 12 6 -

7Tork Safetv Engineer 12 - 6 6

Mine Safety 12 - 12-

A^grlcult'lral Safety 12 3 9 -

Protection Equip. 6 3 3 -

/ US$60,000 is provided to finance a seminar on employment to be held in early 1978(para. 4.20).

ANNEX 1LFage 2 of 3

TotalI/m 1M 12 18 179 1980 1981 1982

4. SECRETARIAT OF MANPMER 168 12 48 48 12

Organization of train-ing at National Level 60 3 12 12 12 12 9

Prinary sector trainingat National Level 36 3 12 12 9 - -

Secondary sector train-ing at National Ievel 36 3 12 12 9 -

Tertiary sector trainingat Natianal Level 36 3 12 12 9 - -

5. SENAI

Evaluation of individualinstruction __8 48 _ - - -

TOTAL 440 84 158 116 60 13 9

(International Specialists) (224) (24) (110) (68) (21) (1) (-)

(National Specialists) (216) (60) ( 48) (48) (39) (12) (9)

B. FELLOWSHIPS

1. SENAR _ 24 - _

International 10 - 10 - - - -Regional (Latin America) 47 - 14 33 - - -

2. SINE 82 12 0 30 -

International 82 12 40 30 - - -

3. FU1ACENTRO 128 2 12

International 128 57 59 12 _ _ _

4. SECRETARIAT OF MA.NPOER 30 6 6 6 6 6

International 30 6 6 6 6 6

ANNEX 14Page 3 of 3

TotalVMm 1977 1978 197 1980 19X 1982

5. SENAC O 6 6 6 6 6 _

International 30 6 6 6 6 6

TOTAL 327 81 135 87 12 12 -

(Internatimal Fellowships)(280) (81) (121) (54) (12) (12) (-)

(Regional Fellowships) (47) ( -) ( 14) (33) ( -) ( -) (-)

Cost International Specialists 224 man-months at US$55,ooo per year US$1,026,850

National Specialists 216 man-months at US$35,o000 per year 630$000International Seminar 60 .000

Sub-total Cost US$1,716,850

Cost International Fellowships 280 man-months at US$1,360 per month US$ 380,000Regional Fellowships 47 man-months at US$ 875 per month -

Sub-total Cost US$ 421.925

Total Cost all Technical Assistance US2

I/ All technical assistance for FUNDACENTRO, Ministry of Labor and 27% ofSENAR wiould be financed through UNDP funds as follows:

US$ .41 million for FUNDACENTRO (BRA/75/010);US$1.09 million for the Ministry of labor including SENAR (BRA/76/12).

v.ay 16, 1977

ANNEX 15

BRAZIL

Vocational Training ProJect

Estimated Project Cost by Cate,or2 of Exnenditure

US$ (million)Local Foreign Total

1. Civil Worksa. Site Works 3.09 .20 3.29b. Construction 21.63 2.40 24.03

Sub-total 24.72 2.60 27.32

2. Furniture 3.19 0 3.19

3. Rquipment 14e37 7,74 22.1.1

Sub-total 1, 2 & 3 42.28 10.34 52.62

4. Techiical Assistance .84 1.29 2.13

5. Staff Training 2.33 .12 2.45

6. Teaching Materials .18 0 .18

7. Studies 1.00 0 1.00

8. Professional Fees 2.07 0 2.07

9. Project Administration 59 0 5-97

Total Base Cost 54.67 l1175 66.42

10. Contingenciesa. Physical (11.9?l) 6.49 1.42 7.91b. Price (24.4%) 14.91 3.27 18.18

11. Total Costs 76.07 16.Wj.

Mxay 16, 1977

BRAZIL

Vocational Training Projict

SENAI - Summary of Estimated Cost* (US$'OOOf

No. Project Item Student Buildip Site Construction Furniture Equipment Technical Staff Teaching Studies Professional Project TotalName Places Area M- Works Assist. Training Materials Fees Admin.

01 PA/CFP. Cama9ari 240 2,355 92.8 618.4 79.7 306.2 - 64.0 109.7 1,270.8

02 PE/CFP. Petrolina 150 2,ooo 63.0 525.2 95.8 289.4 - 52.9 97.3 1,123.6

03 DF/CFP. Gama 180 2,365 70.6 588.2 56.0 311.7 - - - - 59.3 102.6 1,187.8

04 GO/CFP. Vila Canaa 210 2,479 73.9 616.6 52.6 311.1 _ _ - - 62.2 104.6 1,212.5

05 ES/CFP. Serra 340 2,707 101.0 673.3 71.8 307.0 _ _ _ _ 69.7 115.3 1,338.1

o6 MG/CFP. Contagem 286 3,112 116.1 774.1 69.0 383.2 - - - - 80.1 134.2 1,556.7

07 MG/CFP. Belo Horizonte 144 - - - - 236.4 - - - - - 23.6 260.0

08 RJ/CFP. N. Igua5u 360 4,751 177.2 1,181.8 90.1 673.3 122.7 212.2 2,457.3

09 PJ/CFP. B. Manse 160 2,o20 75.4 502.4 52.6 280.4 - - - - 52.0 91.1 1,053.9

10 SP/CFP. Santos Dumont 1,058 7,070 179.4 1,674.4 151.5 865.o - - 117.2 287.0 3,274.5

11 SP/CFP, V. Leopoldina 1,372 10,845 323.8 2,697.4 194.3 1,168.7 - - - 211.4 438.4 5,034.0

12 RS/CFP. Sapucaia 135 1,800 67.2 447.7 38.7 272.1 - 46.4 82.6 954.7

13 RS/CFP. Porto Alegre 111 1,629 60.7 405.2 43.6 260.9 - - - - 41.9 77.0 889.3

Staff Training - - - - - 1,032 - - 1,032.0

Technical Assistance - - - 140 - - - 140.0

BASE COST 4,746 43,127 1,401.1 10,704.7 995.7 5,656.3 140 1,o32 - - 979,8 1,875.6 22,785.2

*April 1977 Prices

May 16, 1977 L

BRAZIL

Vocational Training Project

SENAC - Summary of Estimated Cost* (US$'000)

Project Item Student BuildinR Site Technical Staff Teaching Professional ProjectNo. N me Places Area M Works Construction Furniture Equipment Assistant Training NItclals Studies Fees Adun, Total

Hotel Schools

14 DF/HE. Brasilia 265 9,809 323.1 3,734.7 576.7 253.0 - - - - 284.0 488.7 5,660.2

15 SC/BE. Florianopolis 265 7,809 566.4 3,336.0 576.7 253.0 - - - - 273.2 473.2 5,478.5

16 RJ/HE. Rio de Janeiro 265 7,809 566.4 3,336.0 576.7 253.0 - - - - 273.2 473.2 5,478.5

Vocational TrainingCenters

17 RO/CFP. Porto Velho 165 1,404 54.8 365.0 98.0 87.8 - - 37.8 60.6 704.0

18 AP/CFP. Macapa 165 1,404 43.8 292.0 98.0 87.8 - - 30.2 52.2 604.0

19 MT/CFP. Campo Grande 165 1,404 54.8 365.0 98.0 87.8 - - 37.8 60.6 704.0

Staff Training - - - - - - - 218.8 - - - - 218.8

Teaching Materials - - - _ _ - - - 175 - _ _ 175.0

Technical Assistance - - - - - _ 42 - - - 42.0

BASE COST 1.290 29.639 1.609.3 11,428.7 2,024.1 1.022.4 42 218.8 175 - 936.2 1.608.5 19.065.0

* April 1977 Prices

May 16, 1977

BRAZIL

Vocational Traiinna ProJect

FUNDACENlEO - Sumrv of Eat:imted Qogt* (US$0POO)

No. Project Item Student Btuilding Site Construction Furniture Equipment Technical Staff Teaching Studies Professional Project TotalName Places Area M

2Works Assistance Training Materials Fees Admin.

20 SP/National TechnicalCenter & Sao Paulo

Regional Center 405 5,347 284 1,893.3 169.7 683.4 152.5 303.0 3,485.9

21 MG/B. Horizonte Center - - - - - 152.8 - 15.3 168.1

22 SC/Porto Alegre Center 152.8 - 15.3 168.1

23 PE/Recife Center - - - - 152.8 _ - 15.3 168.1

24 BA/Salvador Center - - - - - 152.8 - - - - - 15.3 168.1

25 DF/Brasflia CenteT - - 152.8 - - 15.3 168.1

26 AM/Manaus Center - - - - - 152.8 - - - - 15.3 168.1

27 PR/Curitiba Center - - - _ 152.8 - - 15.3 168.1

28 RJ/Rio J. Center - - - - 152.8 - - - - - 15.3 168.1

Technical Assistance - - 481.7 - - 481.7

BASE COST 405 5,347 284 1,893.3 169.7 1,905.8 481.7 _ _ _ 152.5 425.4 5,312.4

*April 1977 Prices

May 16, 1977

BRAZIL

Vocational Training Project

Summary Total Project Costs*(US$'000)

Project Item Student Buildin 8 Site Technical Staff Teaching Professional ProjectNo. Name Places Area M Works Construction Furniture Equipment Assistant Training Materials Studies Fees Admin. Total

1-13 Senai 4,746 43,127 1,401.1 10,704.7 995.7 5,656.3 140.0 1,032.0 - _ 979.8 1,875.6 22,785.2

14-19 Senac 1,290 29,639 1,609.3 11,428.7 2,024.1 1,022.4 42.0 218.8 175.0 - 936.2 1,608.5 19,065.0

20-28 Fundacentro 405 5,347 284.0 1,893.31/ 169.7 1,905.8 481.7 - - - 152.5 425.4 5,312.4

29 Senar - - - - 13,526.5 559.3 - _- - 14,085.8

Sine - 394.8 1,201.4 - - - - 1,596.2

Ministry ofLabor - - - - - - 514.5 - - -2.060.0 3,574.5

Base Costs 6.441 78,113 3,294,4 24.026.7 3,189.5 22.111,0 2,132.3 2.452.2 175.0 1,000 2.068.5 5.969.5 66,419,1

Contingencies - - 494.2 2,402.7 319.0 3,316.6 213.2 245.2 175.0 100 206.8 597.0 7,912.2

Physical Increase - - (15%) (10%) (10%) (100%) (1070) (10%) (10%) (10%) (10%) (11.9%)

Sub-total 3,788.6 26,429.4 3,508.5 25,427.6 2,345.5 2,697.4 192.5 1,100 2,275.3 6,566.5 74,331.3

Price Increase - _ 1,098.7 7,664.5 947.3 5,594.1 445.6 512.5 28.9 209 432.3 1,247.6 18,180.5

_ - (29%) (29%) (277) (22%) (19%) (19%) (15%) (19X) (19%) (197) (24.4%)

Total Cost - 4.887.3 34,093.9 4.455.8 31,021.7 2,791.1 3,209,9 221.4 1.309 2.707.6 7.814.1 92.511,8

* April 1977 Prices

/ Only for 405 student places, new construction for the Sgo Paulo FUIDACENTRO

Headquarters. -

May 16, 1977

BRAZIL P321TX 20

Vocational Training Proiect

Contingency Allowances(in US$'000)

Technical Staff Teanhing Professional ProjectSite Workn C-ontr-ctioc Fcrniture Eqiiprent AcOictance Training _tMateraial Sices Fee Adsin. Totals

Forsigc Locai eig Local Foreign Local Foreign Local Forsign Local Foreign Local conESig Loc.l Foreign Local Foreign Logal Foreign Local Prias Locai Total

BaRo toots 197.7 3,096.7 3,904.4 20,122.3 - 3,189.5 7,738.9 14,372.1 1,295.0 837.3 _ 2,452.2 - 175.0 - 1,000 2,068.5 5 2,969.5 13,135.8 53,283.3 66,419.1

Phyoical Contingencies 29.7 464.5 390.4 2,012.2 318.9 1,160.8 2,155.8 129.5 83.7 - 245.2 - 17.5 - 100 _ 206.8 - 597.0 1,710.4 6,201.8 7,912.2

(p-rc-ntge) (15%) (157) (lO) (10%) (1) /) (15%) (107.) (10C-1) (107. - (10%) (101) - (10%) - 110%) (11.97,) (11.97.) (11.9%)

Bloe Cost In-ldtiinPhysical Cnnticgengiec 227.4 3,561.2 4,294.8 22,134.5 - 3,508.4 8,899.7 16,527.9 1,424.5 921.0 - 2,697.4 - 192.5 - 1,100 _ 2,275.3 - 6,566.5 14,846.2 59,485.1 74,331.3

Price C-tingengien:

Anount 65.9 1,032.8 1,245.5 6,419,0 - 947.3 1,957.9 3,636.1 270.7 174.9 5 512.5 _ 2S.9 _ 209 - 432.3 - 1,247,6 3,622.4 14,558.1 18,180.5Perccetage (297.) (29%) (291/) (297.) - (2T7) (226) (22%) (19%) (19%) - (19%) _ (15%) - (19%) (197) 19;o) (24.4%) (24.4') (24.4%)

Coot IncludinR AllConticg-nies 293,3 4,594.0 5,540.3 28.553,s - 4,455.7 10,857.6 20,164.0 1,695.2 1,095.9 - 3,209.9 9214 - 1 7n7.367 - 9 -6._7814.0 18.468.6 74,043.2 9. l52I a

May lb, 1977

BRAZTL

Vocational Training Project

Estimated Recurrent Expenditures and Unit Costs of SF.NAI Projeect Items (1981)(at 1977 prices)

Recurrent Ex .enditures 1981

Of VAlich ~~~~~~~~~~~~~US$Non- AnnualTeachiing Teaching Material Total Total Cost Cost

Personnel Personnel & Supplies Maintenance Others Trainee Trainee Trainee Trainee/Centers Total 35% 15% _ 13% 10% Places Hoturs/year Place llour

Camacari .29 .10 .04 .04 .03 .08 240 323,100 1,210 .90petrolina .43 .22 .10 .08 .06 .18 150 279,600 2,867 1.54Gama ] .46 .16 .07 .06 .05 .12 180 316,815 2,556 1.45Serra- .34 .06 .03 .02 .01 .05 340 396,720 1,000 .86Canam-/ .34 .06 .03 .02 .01 .05 210 389,250 1,620 .88Contagem .43 .15 .06 .06 .04 .I.2 286 448,800 1,'03 .96Belo Horizonte .17 .06 .03 .02 .01 .05 204 209,616 833 .81Nova Iguacu .99 .34 .14 .13 .10 .28 360 900,030 2;750 1,10Barro Mansa .34 .12 .06 .04 .03 .09 160 300,000 2,125 1.13rorto Alegre .26 .09 .04 .03 .03 .07 111 225)000 2,342 1.16Sapucaia .34 .12 .06 .04 .03 .09 135 283,500 2,519 1.20Sao Jose 3.59 1.26 .54 .46 .36 .97 1,058 2,639,090 3,393 1.36dos CamposV. Leopoldina 4.70 1.64 .70 .61 .47 1.28 1,372 3,263,330 3426 1.44

Total 12.68 4.38 1.90 1.61 1.23 3.43 4,806 9,974,821 2 I 8 1.27

/Bank mission estimates.

SOURCE: SENAI (except Serra and Canar which are Bank Mission estimates).

May 16, 1977

BRAZIL

Vocational Traning Project

Estimated Recurrent Expenditures and Unit Costs of SENAC Project Items (1981)(at 1977 prices)

Recurrent Expenditures 1981 (US$M) US$-of which AnnualNon Total Total Cost Cost

Teaching I/ Teaching 2/ 3/ Trainee Trainee Trainee TraineeCenters Total Personneel- Personnel- Others- Places Hours/year Place Hour

HS Brasilia .63 .05 .15 .43 265 879,000 2,378 .72 632,800

HS Florianopolis .63 .05 .15 .43 265 879,000 2,378 .72 632,800

HS Rio de Janeiro .63 .05 .15 .43 265 879,000 2,378 .72 632,800

VTC Campo Grande .13 .07 .03 .03 165 204,675 788 .64 130,900

VTC Porto Veiho .13 .07 .03 .03 165 204,675 788 .64 130,900

VTC Macapa .03 .03 165 204,675 788 .64 130,900

Total 2.28 .36 .5h 1.38 L2. 3,251.025 1,776 .70 2,291.100

- Full time teachers only for the academic or theoretical aspects of students training.2/ Hotel employees acting sometimes as instructors are computed under this column.- Includes: materials, supplies, heat, light, power, maintenance, amortization, insurance and overheads.

source: SENAC

May 16, 1977

IX

BRAZ IL AMIEX 2

Vocational Training Project

Hotel Schools: Financalj Ana3ysis

A) Projected cost of oPerationnat full i=DeMntatim (at 1977 US$ cost )

Operating costs Hotel School Total

Teaching salaries - 48,149 48,149Non-teaching salaries 106,900 37,556 144,456Materials and supplies 69,630 8,900 78,530Heat, light, power 23,704 5,934 29,634Maintenance 26,667 5,934 32,601Amortization 177,800 44,445 222,245Others 42,962 31,111 74,073

Total cost of operation 447,663 182,029 629,692

Less hotel revenue 610,740

Net cost of operation 18,952

/ US$1 - Cr$13.50

B) Hotel School Net Income (1981)(at 1977 US$ Cost)

1. Sales US$ooms-l/ (25,200 x 18.52) 466,740Restauint (20,000 x 3.7) 74,000Others- 70,000

Total 610,740

2. Operational Cost (Hotel)Salaries 106,900Materials (Restaurant) 66,660Maintenance and others 59,300Social Secur~y 37,200Amortization- 177,603

Total 447,663

Net income of the Hotel US$163,077

1/ Rate of occupancy = 70%

2/ Valet, sauna, barber, boutique, telephone: 15% of room sales.

3/ 2% per year out of 80% of the value of the building (Hotel) plus10% per year out of 80% of the value of furniture and equipment.

may 16, 1977

ANNE -24

BRAZIL

Vocat;Lona1 Traininz Proiect

Budget a-nd Estimted Recurrent BzM,sditvreu of SENAR proLeot ito (191

a) Total. Budzet and ProJeot Orating Cos0t (US$M)

SENAR BudgetOf -which-Project

Year Tot al SIfalais C MA Other One.ra1L tCos bai9T-)rr (2)' (3) (4) 75) (6) (6)st1)

1977 8.5 0.5 4.3 3.1 0.6 0.22 2.61978 13.6 o.4 6.4 6.o 0.8 0.72 5.61979 21.2 0.1 9.3 10.6 1.2 2.77 13.11980 21.5 0.1 9.5 10.7 1.2 6.34 29.41981 21.8 0.1 9.7 70.8 1.2 7.0 32.1

b) SENAR Estimated Project Recurrent Exgenditures at full imuiemantation

Prolect Recurrenit Expendit s 1981 (US$4) uSs$fI which Operating Costs

Total Instructor Nan-teac1i4g Material & Maintenance per per perSalsaries SalariesY 9Upple z rmoblle trainee trainee

unit hour

7.0 1.60 1.20 .35 3.85 34,900 25

/ It includes prsonnel responsible fcr a2l mobile units (180 under the project andexisting 30)

T It includes gasoline cost.

/ Including all instructorst salaries of the part of the program executed by EM&TER,the unit cost per trainee/hour amounts to US$ .24.

Source: Ministry of Labor and mission estimates.

May 16, 1977

BRAZIL

Vocaticnal Training Prolect

Proiect Unit: Proiosed Relationfl and Oranizaticn Chart

I"iiistry of Labor

t General Secretariait Project Unkit

FUNDAQEIJTRO . : ofLabor Relations II

SEKATAI a _I-------- iat of ~~~--- - --- u

Secretariat of

;og Construction_ Vocational AccountigTraining

Executive relations

Supporting relations

_______----- Supervision relations T

dTay 16, 1977

BRAZIL A lI

Voeat±a1 T~~~~~~~.du~~~m, Nelmet1of

Iaplaeentation Schedule

Activities and Institutions 1977 1978 1979 1980 1981 1982V/

1. Selection 6 Appointment of Consul-tants.

A. Senai x x

B. Senac

Hotel-Schools x x xCenters x x x

C. Fundacentro x

2. Surveying, Soil Test

A. Senai x x

B. Senae

Hotel-Schools x x xCenters x x x

C. Pundacentro x

3. Design

A. Senai xx x x ,x

B. Senac

Hotel-Schools x x x x x x x x

Centers xxxx xx x xx

C. Fundacentro x x x

4. Civil Works Tendering

A. Senai xx xx

B. Senae

Hotel-Schools x x x x x x

Centers xx xx xx

C. Fundacentro x x

5. Construction

A. Senai x xxxx xxxx xxxx x

B. Senac

HCtel-School xx x x x x x x x x x x x x x xCenters x xx x X x x x x x xx

C. Fundacentro- x xx x x x x x x

6. Furniture Listing, Specifications& Tendering.

A. Senai x x x x x x

B. Senac

Hotel-Schools x x xi x xCenters x x x x x x x x x x

C. Fundacentro x x x x

7. Furniture Manufacture, Delivery& Installation

A. Senai x x x x x x x x

B. Senae

Hotel-Schools xx xxxx xxCenters x x

C. Fundacentro x x x x

1/ Calendar Years.

AMNC 26Page 2 of 2

Activities and Institutions 1977 1978 1979 1980 1981 98 v

8. Equipment Listing, Specifications& Tendering.

A. Senai x x x x x x

B. Senac

Hotel-Schools x x x x xxx x xCenters x x x xxx x x xx

C. Fundacentro

National Headquarters x x x xRegional Centers x x x x

D. Senar x x x x x x x x

9. Equipment Manufacture, Delivery& Installation.

A. Senai x xxx x x xx

B. Senac

Hotel-Schools x x x x x x x xCenters x x X x x X x x

C. Fundacentro

National Headquarters x x xxRegional Centers xx x x

D. Senar x xxx x x x x xxxx x x

10. Technical Assistance

B. Senac x x x xx x x x x x xx x x

C. Fundacentro xxx x x x xx

D. Senar x xxxx x xx xx

E. Sine x x x xx x x x xx

F. Ministry of Labor x x x xx x x x x x xxx x x x x

G. Staff Training

A. Senai x xxx xx

B. Senac x xx xx

C. Sine x x- x xx Xxx

11. Teaching Materials, Evaluation& Studies.

A. Senai x x'

B. Senac x x

C. Ministry of Labor x x xx x xx x

12. Professional Services x x x x x xxx xxx xxxx xx x

13. Project Administration x x x x x * xx .xx

1/ Calendar Years.

May 16, 1977

ANNEX 27

BRAZIL

Vocational Training Project

Disbursement Schedule(US$'000)

Accumulated UndisbursedFiscal Year Semester Disbursements Disbursement Balance

1978 1 100 100 31,9002 2,100 2,200 29,800

1979 1 5,150 7,350 24,6502 6,800 14,150 17,850

1980 1 5,800 19,950 12,0502 6,650 26,600 5,400

1981 1 2,400 29,000 3,0002 1,400 30,400 1,600

1982 1 1,000 31,400 6002 500 31,900 100

1983 1 100 32,000 --

i.Tay 16, 1977

AIRM X 2 8Page 1 of 2

------------------------------------------------------------- 7------- 7------ 7........ 7 -7 --------- 7--------- 7------ 7------ 7: GNP/ : X GNP :% TOTAL:% CIF PUBLIC I I I IPRI. 1AV.PAl. I 8 ISEC I I

I ICAPITA: n[VOTEDIPUBLIC t EMUCATION tLITER- e PRI. eCOMPLE- sSTU- ISCH.TEACHIPROGRE33-1 SEC. ISTU- I II IAl Tn EDU,i FXP. t RECURRENT IACY iENROLLiTION IDENTS13ALARY INSION RATE tENROLLIDENTSiMIGHERsI 1"ItRKETS (PURLICIDEVOTCDIEXP ALLOCATEDs RATE iRATID tRATE FORiPER ORELATION #FROM PRI.IRATIO iPER IENROLLSII-lip. SPRICESS EXP. 6To I Tot ItIt OF I NET OPRI SCH.ITEACHI TO GNP/ #TO SEC, j MET 17EACM- RATIOt

Y--'ImlttS.l (US$)$ ONLY) iFOU. aPRI. 3EC, M1.1ADULT3)j (X) iCYC1E(%)iFR i CAPIIA t (%) i M oER I (z) I

(1) it (2) : (31 : (4) (S) (6) : (7) : (8) :(9) (101 : (11) :(12) :(13) :(14)..................................................................................... ............

ADVANCED

;,J;T;-l ; 73 7.SL 4 , 11 I at 4.5 919 479 25Q 209 99 96 93 ab 2,0 99 St 19 6,00CANADA 7.1 Pe."It' 6,191IIE 7.7 19,11 so .Ss 19 96 89 98 24 2.0 99 82 37 9,00GERMANV F REV. F.�� ime.OE 6. Zbot 4.P in'? - 14kA 26 99 91 99 31 99 91 22 17,OOCYJAI'AN 71 tO9.1F 4, o7nF 4 3 20,7 49 38 12 99 990 99C 29C 2.0 99C 94D 20C 26,000NEtHERLANDS 7e I 1. 9f: 5,29nt 9:9 19,IG 3a 45 19 99 915 99 29 340 97 73 P, 0 11,00NE. ZEALAND 7 lt I11 l' 11 . I I rIt r, .2 ... 39 ?4 29 99 99 99 26 99 67 19 24 00N1IR.AY 7 1� 11 11C S , Runt Iti IS;z sn ?3 1 3 99 99 98 ?0 1.9 99 76 1 4 1 1 .00

S-F DEN 7 i 8 .,?I 7,24(t A" 60 u 16 114 i 3 99 99 99 1 7 90 5 I 0 30, 00U.K. I,, 51; . 91, 3, Sq ME 6:3 t'2,7 26 39 22 98 99 ... 26 ;:0 :3 17 11.01). S. A . 7,- ZI I . 9V 6. 670t f, 1) I S . 11 ... 73kk 27 99 99 99 29U 2.0 93 19U 29. 01,

q)L P. tvqnt ? .;. I I I 54Y 29V 14Y 82A 9-SY . . . 32Y . . . IUA 58Y 43V 1 1 , 00IRELAND 71, 3. 1 EP. S20F I IS. " 43Y 41Y 14Y 90 97 994 3s . . . 9SA 75 1 9 7, OOAPOR I UGAL 7e 9 oE I . 6 SaF sxv . . . 7.60YSt' A I N 7 1Ili. IE ?. ilq(f ;:;A ;;:;A A 29A 30 6.00A

AF fl I C A

;� RJA I S. 7 771% 7 .- i 4tG SP9 ISC 30 76 62E 4at 6.QG 49F 1 7 2S 4,0014t NIN I.,lE I Pol' -, . S V 0 47 "I I 0 1 1 32XB 7 0 Iq 5418 M ON 438 78 395 0,44CYB�; TSWANA I I t . / P911 S . 0 20,11 'SA ?O ts 2s 7OX 75 39 s . 0 24 13X la 0.30Y

B I?uNnl 74 it.fi 9.) Ps I9199 47W 4tR 12R I,0 2OX lo? 38 to.0 14 2X 18 1 .0CAME RIIIIN I � II L 2SOE S:q 20 I) say ?9Y ITY ... 74 . . 91DY 9 23CY 0,90cyC . ,R. 7,; 1I L, ?I of 4 .,IN it) I 41 96 1 9 ... ... 64cy Pli 6lic Y SCY 27by 0,07Y

I S I . OL I w-E i In 11 78 22 is 29xey 10 690Y ;.u a 2xey 30 0.01gyCHAD

CONGn( S I 7:1 I 117-1 6::" ig'-s 40 32 21 907 133X 63 63 6.0 48 33X 22 3,4071 A6. I 119.1 5 . S . 11 29 36 24 40 74X a S 4 0 . . . 64 lqy 28 It . 0 o

ETHI 14 � I I 00 I 1 20 to 4? ag Is 7 1 7c 42 S( 3. 0 63 2 so 0. 20GABUN 7 S U 1,960t 9 :,I 20 6 25 9 1 1 ... 184XBY 25C 46C r, . 0 ISA 20C 21C 1,40cyGHANA 71 9.6L /iltiF II. I 24t4DR 380 1 SO 230 ... 56XCY 62 IOCY . . . 1 4 1 1 x 16CY 0,748YIV(IRY COAST Y2 6.1it 1160F 6. i eii. I 27qy 338Y 13Y 9A 92 %7A 46 ; ; - ; 0 25 1.20BYKENYA 7-i 1 2 QE ?(oF 6.1N e7 u 63 1 1 1 1 40 73 ... 4u ;:0 2 23 1.039YLESO rSil 79 L . ? tint 12 OP 231u 49 18 2o 40 85 90 r, 2 7.ON a I I 0 26 1. 00LIBERTA ?S L . s 41 0 ?: 11 t3.? 27 1 `S 20 73 Ss . . . 31; 2,0 , . . 1 2 26 1.10AYMADAGASCAT? 711 8.6 ISO 3. ? I??. I S I 24 25 40 68X 30 6 S I Is . 0 46 9x 26 1 .0 0

MALAWI 711 'I . 9 I SO i.1 20.9 ... ... ... 25 9fix ow SO 7 . 0 40 4x 20 0,26cy

MALI 7111 9 GE "'i 4 fiN v'S 168 '528 120 Inc taA 22A 40A 14 , 08 37A 4A IIA 0,16AYMAUNIIANIA y') I . 'IL 2911F 4:5 211.0 ... ... ... I 0 tsx ... 22 ... ... 3 24 ...MAU141 I IUS 7 1-1 U.9F 9NOF 3.7 1 1 ;700 7 1 1 0 4 no 86 94 3 1 . . . . . . 31 10 1 .47eyMOROCCO 1.1 I 6 . I 54( S.0c lb's 44 47 9 467 r) 4 x P 1 37 . . . St 13X a 1 2,00NIGERIA 7 171. OE 127F S.^ 40A 24A 20A ... 39xcv ... 34cy 20cy 0,37CY

RWANDA 73 It .. It Flnt 3.?C OR 00 ... ... 23 5? S I ... . . . 2 1 3 0.23CYSENEGAL I 1 'I . 9L isilE 4 . ON 22,90R 38A 42A S A t 0 3ax . . . 4 6 I I x 25 1 I 7 I c YSlEliPA LEONE 7i 0.91F 1 9-IF I .,I 23,4 3 1 36 5 o ts? 34X 45 32 4.OE 6 S 13X 2 I 0,530YSt 104AL I A 7 9 3.,? IOA 3. ?a 10,80 490 t60 190 lio? 34X 86 3r, Io.0 60 3 1 5 0.1 0SUDAN 7 1! I 1i . 1?� 2 30E 11 . r, 1 3. P 43 29 as I S 38 7i 4 1) 4.0 25 1 1 20 1,23YSWAZILAND 719 o . 1, 1171, i.8 ... 38 31 19 -io 73 71 la 3. 8 St 24 22 1 , 00

TANZANTA ?;I I 11 . IIE I ulif Ii. I N 1 7,i) 36 ... 1 2 63 44X . . . 49 . . . T 2 ?IC 0.30TUNISIA 7 i S . %� 65,11F 6. S e3,4 37 43 is 55 72 ei 41 6,D 31 J4 a] 3,00UGANDA Io 1 1.2F ?4nE S. PN I 7,6CR 400 22Q 250 25A aaxcy ... 36 . I . 14A 4xcy 21 0,58ovUPPER VOL[& 72 -3 . RE 9OF q.0 21.9 6-i I 0 6 r, I 0 . . . 4-i 18.0 20 2 23 coolayZAIRE is 24 . IE I Sof S 2CN 21 ;IC 94C 17C 29C tS 63 lo 44A 6,0 43 a 24 0,96gyZAMBIA 711 'I.8 qpo r1:3 14.2 34 18 t6 43 Be 80 47 9.0 20 ts 22 1.00

CENIRAL AMERICA AND TWE CARIBBEAN

a-lin-F----S 2 22,7 97 2S 12 89 86CY 115 29 3.0 158 22cy ?5 IZOIICY

DOMINICAN REP.7P 14.6t 6SOF 3: 0 13.9 42 24 22 St 80 17 54 5.0D 63 1 3.5 24 7 .00EL SALVADOR 75 I.AL ItnE 1. 6 23,8 61 S 22 608 69 C ... 39cy . . , 3 9 13xc ?ICY 4,35BYG IJ A I E M A L A 7 A q.3E qgnf I '" 160 SS 2 3 1 4 4 ? 6 4 26 SS 5.0 b 9 a 2 5 Al , 0 9 YHAITI 7 P 4.9[ lTnE 11 . 9 6,6D 6 t t I a 200 22 ?S? 4 13 S.0 so 3 2 3 1,00?HUNDURAS 71� A L i I 11 E 3.q 26,S0 64 t 3 t a 52 etx I 8 3 7 6.0 7 5 lgx 1 4 3.DoJAMAICA I " 011tI 9,lE 6 . SY 1 9$7 33Y 2zv ly 86 I(6xY ... S2 . . . ... 32XY I 9 4, 7gyMEXICI TO S7.QfIn9nE 2 6 9 3 S4 an 2 76 7 1 31 46 3 u 63 19 23 6j32CYNIC4RAGUA 7 ;I 2 , 11 L 67nE S 1 4 11. P 6 1 t 3 It 3 97 b's 21 37 2: 0 93 1 7 P4 7.00TRINIDAD 9 1. 7 1 1I LI , 7 ( OL I tft,9 3 2 7 1 2 9 a 9 1) x a I 39 4 . 0 1 5 49 25 2.56AY

SIAUIH AMERICA-------------

BOL I V I A 7 6 'i8 IISF S.0 17,SF .. .. 38 178 29D ?4 SF 49 IOD . . .BQAZIL 71; 1 t) I11 I . 1, I 1! S . n 1 2,4 4?F 20E 37E 64A 86G ... 27cy . . . 26C ISCY 6,008CHILE 72 1 u11 K Pi iflE ti . bY I ti, 6AY 36Y t4Y 36Y ... tltXDY ... 379Y . . . 48XDY . . . I 4 .COLUMBIA 7 u23,1t VOnE I . ow 1 019 3 I t a ao 7 3 67 2ii 36 It, u 90 1 7 1 4 4,00ECUADIIR 72 6.9t lie(F 3. 7 27.7C 4 IRY 420Y IOGY 69 72 ... la . . . . . . la 1 4 4,97SYGUYANA 711 o.9 9041 r, . SN I 4.70 47 3S 14 93A 92X 19 33 6.0 19 62X ?a I AD 0PARAGUAY 711 2.9 -; 1.1 I . 8 I 1;Q S 9 I 3 22 9 1 82 ob 3 c 1.9 65 t 7 1 2 stooPERI) 7 1t4.9t 7$10E I .5 2 ti , t D SO 22 1 S 72 8 0 iss 39DY 3 .0 ? 0 30 23DY 12,00VENEZLIELA 73 1 t .6t 1.904'f 11.6 19.9 309 28Q 35G 77A 8i 3S 2, 4 . . . 33 ... 12,63CY

I

A NNE7,X 2 8Page 2 of 2'

COMPRATIE EDCATON IDICAORS (CaNTD)

APRI:!L 7,1977 I

* gGNP/ I I GNP II TOTAL:% Of PUBLIC I I PRI, IAV.PRI, I I iSEC ** CAP;TAI nCV0TEDIPU,8LlC : EDUCATION iLITER- EPRJ. ICOMPLE. I3TU. i3CH,TEACHiPROGRE33Si 3EC, iSTUm i*Al inT EDU.I xp. g RECURRENT lACY ENROLLITinN IOENYSISALARY INSION RATE 1ENROLLIDENTINSHIGMERi

I IMARKFTI (PU8LIC,DEVOTEDsEXP ALLOCATEDI RATE IRATID IRATE FORIPER IRELATION ,FROM PRI.IRATIO iPER IENROLLIIPOP p* *PRICESI Copr. I TO I T0g its OF I NET i#RI.3CM.lTEACHi TO GNP/ iTO SEC. I NET ITEACH* RAT10i

Y17,MILLS.1 (IISS)l ONI Y) I EDU, iPRI. SEC, ml.aADULTS)i (S) lCYCLE(IiER i CAPITA i (8 i (2 lERt I CZ)I

I I II IIIII I I I I II I() I~ I1?) I ( 1 I (0)I (5) (6) 7 7) I () IS (9) I (0) MI) 1(12) .13) I CAI

ASIA AND) OCEANIA

AF--IS -711 I,,.1 I t .. 39P 25P 16P 10 26X 20 02 ,0 18 80 2 1 1.0 0BANGLADESH 73 76,,( I tortE I .2 20,2. . . 23 561 .* R ... As. 211 28CHJNA(IAJI,AN) 73 IS. IL A I 0 3.2 1 lo it j 0 -2 2 82 9BIC 90 Ot0 II.I 61 C 26 20;OOCINDIA 72 S99,6[ lI OIE ? * NY I* . . .. 2?9 79) .*. . 4lA . . . *... 281 20AY 4£,OOAY

INDONFSIA 70 12PA.IF 22nG I2.a I2, 63 3 10 62 63 00 12 2,AUG 91I 12 2 6 2. 00IRAN 73 133.1 It,250E S. S t,6 -50R 288 128 so 77 74AA 12 5.08 BOA 24 32 24.32cyJR AD 7)- I uR 8tI I II 1 6. 7 16,3nR . .'.... 26 61CY . .. 22 .. . 26XCY 26 6.2SCYJOIRDAN 71 ?.OE 1 S'tlE 7 . ( 8.8 5'2 1 5 221 59 91 it, 3 8 9. 8 Bx 22 8,00K ORE A 75 35. I 51If ?.q t6,OR 69 33 2 92D0 10 9 98 92 5 .9 77 551 38 7,6LE BA NON 7,? .2 ,to I I *11 .9 1RtFl 39 00 10 68 86 65 29 2.0 63 26U 25 23,00MALAYSIA 7£4I 227 600 .0I 28.0 00 32 II1 60C 96F 90 32 0 .00O 83SF ROF 27F 3,00FOMAN 7 ? 0. 72 1,6(60E I .7N 3,8 96 - - 20 200 99 31 7*0 . .. 0.4X 9PAK101 AN 75 "9 I So O I *6 16.2 4 9 25 I28 21t 47X SItl 39 ?.0 . . . 170 18 6.00;PAPiJA N.G. i 75 2.0 'tIlt 5*6 16, 'I 38 2 6 242 32 57? 73P 1 2. 0 90 12X? 20 0.90?PHILIP'PINCS 7 1 ' I 'LE s3tE ,' . Il1. 9 73 25 12 87 to

04 ... 301 25. 0 . .. 460 . .. 21 .0 0

SINGAPORE 7'l 2.PE ?,2'IOt 1 .1 16.? 40 II 2 5 79A 960 7?A 33 . .. 99A 57Y ?A1 8.25YSYRIA 75 1.0~~~~I ' 6 6 0,'6 6. 9 1 9 25 26 953 89 71 35i 2.0u 92 45 21 12.00

TIHARILAANn 70 L0 It A ) /I) ,INF 21),7F 65, 9 is, 82 870 91C 3? S,0 U 9IC 220 28 2.0 0T114K[Y 2 0 7. 90 6 000 ... i3,0 . .... ...2.OSYCY ... 34DY ,. . 2200 2700 5,318yYEH1N 70 , o~II I 8,11,E 0, / '.7 45P 21P 23P 1 0 151 II 36 5. 1 2 19 0,0sBYYtEMEP 1',D.R. 7'1 I.oE 2?f)E 2. SA I ?.b6 79 22 - 10 100 31 29 11 .0 99 220 20 0. 08AY

NUOBE R I)F COINI 1JNT 3: 751 70S 70 69 69 12 89 9 5 I8 5 13 55 7 9 75 704

RANGE: (~~~~~~~~~~~~~~o.- (3.8. (25 (0. 0- (9- I f- (Il 1 - C19- 11,8- (17- I(.0- (9- (,01-12.tIP 32. 3 96 It 52) 4 00) 98) 18001 09 I 65 I 25.1£) 99)I 75S. 0) 4t3 23,0)

0UARTILESii,pr1it S. e22,1 95 St 22 75 8i7 75 0 6 a 8 (I 29 26 6,0M EO)I A IfI 'I. 1Rl £1 5 21 15 9 50 721 50 18 5 61 1 6 23 2.00

I 3ER t 13.As,9" A8 I6 1 2 2 1 52 30 1 S 3 a's 9 Ž 0 * 9

-MAGPI'.TIID NTI. OR 1F'ILIf.IRLE SRI297 1 NuGDP? GIESTI,INAVLE ~~~~~~~~Cu2972 P=INCLUDING FOREIGN AID COUMNSII AND 2 WORLD BANK ATLAS

A INLIItDES PART.Timr STYdDFNTS DxI9711 Q:CENTRAI. GOVT. ONLY OR lORD MISSIONSA* CLtMRIN4T .ITH PRIMARY Ls 29701 RzMINISTRY OF EDUCAtION (MOE) ONLY 3 TO 14 18R0 MISSIONS

Fm197q 3:MGE AND STATE GOvT. ONLY AND/OR UNESCOG=1976 T3EXCLUDING CFNTRAL. GOVT. STAT1STICAL

U21PUBLIC ONLY YEARBOOKV=INCLUDING PRIVATE EXPFNDITUREXEINCLUDING OVFRAGED STUDENTSYEUNESCI) SOURCES

COMPARATIVE EDUCATIOIN DATA AROE IJSEFIIL IN THE EVALUATION OF VARIOUS EDUCATION SYSTEMS AND ANALYSIS OF RELATIVe STAGES OF EDUCATIONALOEVELIIPHENT HET'EEN VAR1rt11S COULNTRIES. HOUWtVER,ON4 THE BASIS OF THE PRESENT DATA,CROSS-NATIONAL COMPARISON SHOULD BE APPROACHED WITHGREAT cAuTILiN. O)ATA POESFNTEDTNI THE ABOVE TABLE HAVE BEEN COLLECTED LARGELY BY THE BANK MISSIONS FROM GOVERNMENT SOURCEST THE

PEWAINDER ARE STAFF ESTIHAYES 18R DATA FROIM UNESCO. EFFORTS HAVE BEEN MADE TO STANDARDIZE DEFINITIONS AND WITHIN LIMITS, TO CHECK THEACCVRACY OF THE DATA. NEVERIHFLESS,SUCH DATA ARE STILL IMPERFECT IN SEVERAL RESPECTS AND THE BANK IS WORKING TO IMPROVE THEMPROGRESSIVELY ON THt f)CCASIIJN OF ITS I'PlERATIONAL WORK. IN THE USE OF THESE DATA, THF FOLLOWING QUALIFICATIONS SHOULD BE BORNE INHI 501

(1)'EDIJCATIJUN' AS DEFINEn IN THE TABLE INCLUDES ALL EDUCATION AND TRAINING, FOIRMAL AND NON-FORMAL,(2)"P'9IMARY CDUCATZION RFFERS TO EDUCATION AT THE FIRST LEVEL AND 'SECONDARY' EDUCATION REFERS TO ALL EDUCATION AT THE SECONDARY

LEVEL REGARDLESS OF IYPF (E.G. GENERAL, TECHNICAL, AGRICULTURAL) I(3)'LITERALY RATFS"(COl..o) ARF OFTEN OBTAINED FROM COUNTRY CENSUSES. IN MANYCrOUNTRIFS THFY ARE ONLY APPROXIMATIONS AND IT IS

DOJBTFOI. THAT ANY UNIFORM DEFINITION OF RLITERATE' HAS BEEN FOLLOWED CONSISTENTLY,(f'11PURLIC EXPENDTTIIREF TN rrl1CATION'(C0LS.3,4 AND 9) REFER TO ALL CAPITAL ANn RECURRIENT FOPENDITURES DEVOTED TO EDUCATION BY

PUBLIC AND QUASI-PURlITC AGFENCIESI(5)-ENRI1LLHENT RATI'lS"(COLS 7, If? AND 14) REFER TO SCHOOL YEAR ANO MEAN THE PFRCFNTAGE OF ELIGIBLE CHILDREN ENROLLED FULL-TIME

IN THE APIPROPRIATE SCHnOOL. PIJBLIC AND PRIVATE BY LEVEL. THEY ARE OFTEN SUBJECT TO A AIDE MARGIN UF ERROR IN THE DEVELOPINGCOUNTOIl'S OWING TO VAIIIATInN IN THE ACCURACY OF BASIC DATA(I.E. AGE-SPECIFIC POPULATION AND ENROLLMENTS), ENROLLMENT FIGURESFREGUENTLY ARE HIIGHER THAN THF NUMBER OF STUDENTS ACTUALLY IN SCHOOL. OVERAGED STUDENTS WHOSE INCLU3ION IS INDICATED BYFOOTNOTt 5 At 'J30 CAP; T'FI ATE THE RATIOS.

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