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Lifelong Learning
A policy framework for skill acquisition in Latin America and the Caribbean?
World Bank
September 13, 2005
The storyline
• The growing demand for skilled workers in the face of growing global economic interdependence
• The weak educational foundations, unevenly distributed in the adult population
• A Lifelong Learning framework for leveraging training investment
Low Productivity GrowthAnnual growth rate of Productivity
1960/69 1970/79 1980/89 1990/99
East Asia Pacific 1.14 1.28 2.27 2.01
Eastern Europe -0.17 -0.27 0.52 0.3
Latin America 1.5 1.15 -0.93 0.45
Middle East N Afr 1.14 -1.62 -1.12 0.85
OECD 2.09 0.85 1.1 0.56
South Asia 0.46 -0.39 2.27 1.72
Sub Saharan Africa 1.54 -0.55 -0.88 -0.43
The Diverging paths:
• LAC has seen a remarkable growth in the relative wages of the most skilled workers—those with tertiary education.
• In contrast the relative wages of the workers with secondary education tend to stagnate or deteriorate.
Changes in relative wages in tertiary and secondary education
Colombia
0
20
40
60
80
100
120
140
160
180
1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Year of Survey
1983
= 10
0 (3-y
ear M
A)
WagesSupply
Colombia
0
20
40
60
80
100
120
140
160
180
200
1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Year of Survey
1983
= 10
0 (3-
year
MA)
WagesSupply
What accounts for the patterns? • To a great extent, the increase in relative wages to
tertiary-level education has resulted from shifts in the demand for qualified, skilled workers by firms
• Changes are occurring in same sectors in different countries and in sectors which opened up to trade, in particular trade which is intensive in R&D
SO … • Increases in the demand for skilled workers are related
to patterns of integration of LAC countries in the “global knowledge economy”
• Trade is a vehicle transmitting skill-biased technological change (increases productivity and relative wages)
Latin American countries tend to be under-educated relative to their incomes
.
Me
an
ye
ars
of e
du
ca
tion
, p
op
ula
tion
ag
ed
25
+
Log of per capita GDP, 20005 6 7 8 9 10 11
3
6
9
12
Haiti
NicaraguHonduras
Guyana
Bolivia
Ecuador
Guatemal
Paraguay
El Salva
JamaicaDominicaColombia
Peru
Panama
Venezuel
Mexico
Costa Ri
Brazil
TrinidadChile
Uruguay
Argentin
Barbados
China
Indonesi
Philippi
Thailand
Malaysia
Korea
Taiwan
Hong Kon
Singapor
New ZealCanada
Australi
Sweden
United S
Finland
With a gap in secondary enrollment rates
.
Ne
t se
co
nd
ary
en
rolm
en
t ra
te,
19
98
Log of per capita GDP, 19985 6 7 8 9 10 11
20
40
60
80
100
Nicaragu
Guyana
Ecuador
El Salva
Paraguay
Jamaica
Dominica
Peru
Colombia
Belize
Venezuel
Mexico
Costa Ri
Brazil
TrinidadChile
Argentin
China
Indonesi
PhilippiThailand
MalaysiaKorea
Hong Kon
New ZealCanada
Australi
Sweden
Finland
United S
And also at the tertiary level …
.
Gro
ss t
ert
iary
en
rolm
en
t ra
te,
19
98
Log of per capita GDP, 19985 6 7 8 9 10 11
0
20
40
60
80
Haiti
NicaraguHondurasGuyana
Bolivia
SurinameGuatemal
EcuadorEl Salva
ParaguayJamaica
Dominica
Peru
Colombia
Belize
Panama
Venezuel
Mexico
Costa Ri
Brazil
Trinidad
ChileBarbados
Argentin
Bahamas
China
Indonesi
PhilippiThailand
Malaysia
Korea
Hong Kon
Singapor
New ZealCanada
Australi
Sweden
Finland
United S
Some countries have an unbalanced education development
• While most Latin American countries follow a balanced but slow education transition.
• Some countries like Costa Rica, the Dominican Republic, Ecuador, El Salvador and Venezuela have the bulk of population with some primary schooling and more individuals with tertiary education than secondary.
Educational transitions (2)South Korea: fast and balanced
0
10
20
30
40
50
60
70
80
90
100
1960 1980 2000
0
2
4
6
8
10
Primary or less Secondary Tertiary Years of Education
Change in years of education: 7.2
Educational transitions (3)Colombia: balanced, but slow
0
10
20
30
40
50
60
70
80
90
100
1960 1980 2000
0
2
4
6
8
10
Primary or less Secondary Tertiary Years of Education
Change in years of education: 2.0
Educational transitions (4)Costa Rica: unbalanced and slow
0
10
20
30
40
50
60
70
80
90
100
1960 1980 2000
0
2
4
6
8
10
Primary or less Secondary Tertiary Years of Education
Change in years of education: 2.2
LAC the most unequal region
• LAC income inequality is wider than any other region of the world (the nine most unequal countries are in LAC).
• Income inequality in the region has increased since World War II
• During the 90’s, inequality increased but not uniformly across countries: Argentina has experienced dramatic increases in inequality while in Brazil inequality has fallen
Latin America is unusually unequal in income differences…
Source: Authors’ calculations based on UNU/WIDER-UNDP World Income; Inequality Database, Version 1.0, September 2000.
Gini coefficient: distribution of household per capita income, regions of the world, 1990s
0
10
20
30
40
50
60
1
LAC
Asia
Developed Eastern Europe
Education is central to the reproduction of inequality
Example: differences in years of education between top and bottom quintiles, 1990 and 2000
3
4
5
6
7
8
Uru
guay
Ven
ezue
la
El S
alva
dor
Nic
arag
ua
Chi
le
Arg
entin
a
Cos
ta R
ica
Par
agua
y
Hon
dura
s
Pan
ama
Per
u
Ecu
ador
Bra
zil
Mex
ico
Around 1990 Around 2000
Secondary Education remains the priority
• Countries without a large fraction of the workforce with at least secondary education do not attract advanced technologies—and when they do, there are few “knowledge spillovers”
• Secondary education as a necessary stepping stone to university-level education
• Countries which have had the most successful educational transitions have done so sequentially
The modest private rate of return to secondary education
Secondary
Education
Tertiary
Education
Argentina 5 11
Bolivia 8 14
Brazil 19 19
Chile 8 22
Columbia 5 18
Mexico 6 13
Jamaica 3.3 8.4
Removing constraints to secondary education development
Demand side• Cost of schooling• Opportunity Cost• Low rate of return
Supply side• School Infrastructure• Teacher shortage• Private sector
• Scholarships• Cash transfer/attendance• Certification of basic skills• Fees in Higher education
• Reconverting primary schools• Scholarships in higher education• Funding formula, vouchers,
charter schools
Does lifelong learning provide a useful framework to guide policy makers in shaping policies that address the challenges of skill development in Latin America
and the Caribbean?
The case studies:
• Peru: Skill acquisition in “High Tech”Export Agriculture (Martin Carnoy, Tom Luschei and Enrique Aldave)
• Brazil: Mapping the “invisible lifelong learning non-system (Elenice Leite)
• Colombia: The demand for training ( Felipe Barrera Osorio and Lucas Higuera)
• Costa Rica: Learning and training for work (Hernan Araneda)• Dominican Republic: Lifelong learning in the labor force (Rolando
Guzman)• Jamaica: Building a lifelong learning strategy (Lorraine Blank, Tom
Mc Ardle)• Mexico: The Educational status of out of School adults in Mexico
(Roger Diaz de Cosio and Alfonso Ramón Bagur)• Chile: Meeting the challenge of the knowledge economy (Hernan
Araneda)
The main findings: • LLL foundations are weak • Employers and individuals make substantial
investments in post school LLL• Much of post school LL is job related training for
younger workers• The articulation between formal schooling and
post school LLL is weak • Participation in post school LLL is more unequal
than formal schooling• Education and training policies are not aligned in a
LLL framework
Implications for policy
• An LLL inventory
• LLL as a framework to guide adult education and training
• Filling the gaps: targeted intervention in LLL
• LLL and new opportunities
• Financing lifelong learning
Lifelong Learning is more Necessity than Luxury
• Rapid and continuous change in technology
• Organizational changes at firm level
• Short job tenure in competitive sectors
Learning in the Knowledge Economy
Then• Information based• Rote learning• Teacher directed• Just in case• Formal education only• Directive based • Learn at a given age• Terminal education
Now• Knowledge creation/
application• Analysis and synthesis• Collaborative learning• Just in time• Variety of learning modes • Initiative based• Incentives, motivation to
learn• Lifelong learning
• Knowledge economy puts premium on learning and skills
• Increased access to learning–through home, school, job
• Chances of lagging further behind–“Digital Divide”
• Transformation of learning
Knowledge Economy and Lifelong Learning Require Rethinking of Education and Training
A New Architecture for Education and Training
• New skills and competences• New pathways to learning• Governance system• Financing options
New Skills and Competences
• Traditional academic skills• Literacy, numeracy,
• Science, technology/ICT, international language
• Emerging need for different skills• self-regulated learning
• tolerance for ambiguity
• creative thinking
• ability to work in a team
• learning how to learn
New Pathways to Learning
• Increased access to learning opportunities • Variety of ways learners can learn• Increased access to knowledge resources
• Additional/diverse learning modalities• Modular, Part-time, Distance/e-learning,..
• Different approach to learning (pedagogy)• Changing role of teachers, curricula, technology
Governance of Lifelong Learning: Challenges
Traditional Education Lifelong learning
Scope • Formal schooling • Formal, non/informal
Content • Acquisition/
repetition
• Curriculum-driven
• Creation/application
• Diverse source
Delivery • Limited options
• Institutions
• Uniform, supply-
driven
• Multiple options
• Individuals
• Pluralistic, demand-
driven
Learning
Outcome
• Standardized
assessment
• Flexible recognition
of soft skills
Governance for Lifelong Learning
From To• Sectoral approach • Multi-sectoral, coordination
• Control and regulation • Support and partnership
• Issue orders
• Direct students
• Create choices, pathways;
• Inform learners
• Institution-driven • Learner-driven
• National curriculum • Recognition & quality control
• Rules and regulations • Incentives and facilitations
Financing Lifelong Learning: Challenges
• Expenditures increase, public resources limited
• Priority for public: basic education
• Balance between subsidies and market mechanisms given that• Benefits both private and public
• Access to capital uneven
Financing Options
Cost-recovery Subsidies
Traditional loan Voucher
Human capital contracts Learning accounts
Graduate tax Savings accounts
Income contingent loans Tax credits
Entitlements: combination loan/voucher
Building the missing lifelong learning framework
• Adapting curriculum, pedagogy and objectives within the education system, to give to everyone the foundations for autonomous learning (at school and for adults)
• Promoting complementarities between education and training, formal and informal learning, public and private provision (learning pathways)
• Revamping training policies (modular, competencies based, certification of achievement)
• Creating alternative modes of financing to stimulate demand and provision of training
Questions for a debate:• In a context of limited financing, are investments
in formal secondary and investments in out of school unskilled youth conflicting priorities?
• Should public financing focus on providing foundation skills leaving to the private sector the more costly vocational training.
• Is it the right policy to target LLL on youth considering that LLL start in early childhood.
• With a LLL policy stimulating the individual investment is there a risk of increasing inequity.