Mapping Sector Skills

Development across
the Commonwealth
Analysis, Lessons and Recommendations
 Mapping Sector Skills
Development across
the Commonwealth
Analysis, Lessons and Recommendations

31 January 2015
(updated July 2016)
ii \ Mapping Sector Skills Development across the Commonwealth

Author: Dr Marcus Powell1

Technical Director
The Centre for Employment Initiatives
Bridge Street
Llangollen
LL20 8PL
Wales
© Commonwealth Secretariat 2016
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 Acknowledgements \ iii

Acknowledgements
The need for a mapping of approaches to sector skills development across
the Commonwealth was identified at the Roundtable on Technical and Vocational
Education and Training held at the headquarters of the Commonwealth Secretariat
in 2013. The Commonwealth Secretariat wishes to thank all our partners from
organisations who attended this Roundtable and supported the necessity for such
a study: the Department for International Development (DFID), the United Nations
Education, Scientific and Cultural Organization (UNESCO), the Commonwealth of
Learning (COL), the British Council, the University of Nottingham, the International
Labour Organization (ILO) as well as representatives of the Commonwealth
Association of Technical Universities and Polytechnics in Africa (CAPA), the
Association of Colleges UK, TAFE Directors Australia (TDA), and delegates from
Bangladesh, Jamaica and Papua New Guinea. The Secretariat also wishes to extend
profound gratitude to Dr Marcus Powell for his work towards the development of this
publication. The study was originally completed in 2015 and subsequently revised in
July 2016 to take into consideration the demands of Agenda 2030 for Sustainable
Development and its associated education goal SDG4. Final acknowledgements go
to the Health and Education Unit (HEU), Commonwealth Secretariat, for their work
on this publication.
 Contents \ v

Contents
Acknowledgements iii
Acronyms ix
Executive Summary xi
1. Introduction to the Assignment 1
1.1 Introduction 1

2. Method and Approach Used to Undertake the Assignment 3

2.1 Introduction 3

2.2 Phases to undertaking the assignment 3

2.3 Approach used to undertake the country case studies (Phase IV) 4

2.4 Analysis, lessons and recommendations 5

3. Setting the Context for Sector Skills Councils 7

3.1 Introduction 7

3.2 Theoretical debates shaping an understanding of technical

and vocational education and training 7

3.3 Global drivers and their impact on technical and vocational education and training 9

3.4 Public–private partnerships, technical and vocational education

and training and skills development 12

3.5 Conditions for effective skills formation 15

4. What Does the Literature Reveal about Sector-Based

Approaches to Skills Development? 17
4.1 Introduction 17

4.2 What is a sector-based approach to skills development? 17

4.3 What are the benefits of adopting a sector-based approach to skills development? 19

4.4 What specific functions are performed by Sector Skills Councils? 19

4.5 What are the conditions for effective Sector Skills Councils? 20

4.6 Limitations of the sector-based approach 22

5. Analysis of Approaches to Sector Skills Development

Across the Commonwealth 23
5.1 Analysis of how a selection of African countries approach Sector Skills Development 23

5.2 Analysis of how a selection of Asian countries approach sector skills development 29
vi \ Mapping Sector Skills Development across the Commonwealth

5.3 Analysis of how a selection of industrialised countries approach sector skills

development 34

5.4 Analysis of how a selection of island countries approach sector skills development 40

6. Lessons from How Commonwealth Countries Approach

Sector Skills Development 46
6.1 Introduction 46

6.2 What do we mean by approaches to sector skills development in the context

of the Commonwealth? 46

6.3 What conditions are necessary for Sector Skills Councils to perform
their expected roles? 49

6.4 The importance of effective relationship with other structures in the technical and
vocational education and training system 50

6.5 What has been learnt about employer engagement and public–private partnerships? 5
1

6.6 How can Sector Skills Councils obtain accurate and valid intelligence? 52

6.7 How do systems of government influence how Sector Skills Councils operate? 53

6.8 The importance of performance-monitoring systems 53

7. Recommendations for setting up or reforming Sector Skills Councils 55

7.1 Introduction 55

7.2 Which economic sectors should be targeted for skills development? 55

7.3 What is the mandate of the Sector Skills Councils? 56

7.4 What structure should be developed to support skills development

at the sector level? 56

7.5 How do the Sector Skills Councils relate to other structures in the government
and technical and vocational education and training system? 57

7.6 How can Sector Skills Councils be funded and what are the different options
for sustainability? 58

7.7 How can public–private partnerships be developed for Sector Skills Councils
that are strategic and demand-led? 59

7.8 What information systems are required to support Sector Skills Councils? 60

7.9 How can Sector Skills Councils develop strategic and operational plans? 61

7.10 How should the sector-based approach be rolled out? 62

Annex I: Case Studies on How a Selection of African Economies

Approach Sector Skills Development 64
 Contents \ vii

Attempts to develop a coherent and pro-active approach to sector-based

human resource development plans: the case of Botswana 64

Kenya: Lessons from industry-based sector training and support for training in the
hospitality and tourism sector 69

Mozambique and sector skills development: One step forward and two steps back? 75

Sector skills planning in South Africa: One of the most comprehensive and strategic
approaches? 80

Lessons from the sector-based approach in South Africa 83

Annex II: Case Studies on How a Selection of Asian

Economies Approach Sector Skills Development 86
The sector-based approach of India: the Leviathan awakes 86

Bangladesh has made a promising start but there is still too much government control 94

Annex III: Case Studies on How Industrialised Countries

Approach Sector Skills Development 102
Sector skills planning in Australia: lessons on dealing with federal-
and state-level approaches 102

Sector skills planning in Canada: a case study of best practice? 107

An outline of the Technical and Vocation Education and Training system 109

Singapore: making the transition from centrally planned state development

to a more inclusive sector-based approach. 114

Sector skills development in the United Kingdom: could it have been done better? 119

Comments on the effectiveness of the Sector Skills Councils 124

Annex IV: Case Studies on How a Selection of Island Countries

Approach Sector Skills Development 127
Dependent sector skills development: the case of Industry Lead Bodies and employer
engagement in Antigua and Barbuda162 127

Linking industrial priorities to skills development: the sector-based

approach of Jamaica 130

A regional approach to sector skills development: upskilling youth in the Pacific 135

References 143
Endnotes 148
viii \ Mapping Sector Skills Development across the Commonwealth
 Acronyms \ ix

Acronyms
ABNTA Antigua and Barbuda National Training Authority
ACCC Associations of Canadian Community Colleges
ADB Asian Development Bank
AIMO Manufacturing Industry Association
ANEP National Authority for Vocational Education
BQA Botswana Qualification Authority
BTEB Bangladesh Technical Education Board
CBE competency-based education
CEDEFOP European Centre for the Development of Vocational Training
CoE Centre of Excellence
COREP Comissão Executiva da Reforma da Educação Profissional 
CTDLT Catering and Tourism Development Levy Trust
CVET Continuing Vocational Education and Training
DEEWR Department of Education, Employment and
Workplace Relations
DFID Department for International Development
DHET Department of Higher Education and Training
DIT Directorate of Industrial Training
DTI Department of Trade and Industry
EC European Commission
EDB Economic Development Board
EFA Education For All
ETF European Training Foundation
FE Further Education
FET Further Education and Training
GDP Gross Domestic Product
GEAR Growth Employment and Redistribution
GTO Group Training Organisations
HEART Human Employment and Resource Training Trust
HRD Human Resource Development
HRDC Human Advisory Development Council
HRSDC Human Resources and Skills Development Canada
ILB Industry Lead Bodies
ILO International Labour Organization
IMF International Monetary Fund
INEFP Institute of Employment and Training
ISC Industry Skills Council
1ESE Instituto de Estudos Sociasis e Economicos
ITB Industry Training Board
ISTC Industry Skills and Training Council
ITE Institute for Technical Education
LMIS Labour Market Information System
x \ Mapping Sector Skills Development across the Commonwealth

LMO Labour Market Observatory

MDGs Millennium Development Goals
MESD Ministry of Education and Skills Development
MNC multinational company
MOEST Ministry of Education, Science and Technology
NEET Not in Education, Employment or Training
NITA National Industrial Training Authority
NOS National Occupational Standard
NSA National Skills Authority
NSDC National Skills Development Council
NSDS National Skills Development Strategy
NSF National Skills Fund
NTA National Training Agency
NTVQF National Technical and Vocational Qualification Framework
OECD Organization for Economic Co-operation and Development
PIOJ Planning Institute of Jamaica
PPP public–private partnerships
QP qualification package
RAB Regional Advisory Board
RTO Registered Training Organisations
SARS South African Revenue Services
SC Sector Council
SCDC Standards and Curriculum Development Committee
SETA Sector Education and Training Authority
SME Small and Medium-sized Enterprise
SSA Sector Skills Agreement
SSC Sector Skills Council
STEM Science, Technology, Engineering and Math
SDGs Sustainable Development Goals
SYP Skilling Youth in the Pacific
TAFE Technical and Further Education
TVET Technical and Vocational Education and Training
UCEP Underprivileged Children Education Programme
UN United Nations
UNESCO United Nations Educational, Scientific and Cultural Organization
VET Vocational Education and Training
VITB Vocational Industry and Technical Board
WDA Workforce Development Agency
WDED Workforce Development And Employment Division
WSQ Workforce Skills Qualification
 Executive Summary \ xi

Executive Summary
This study must be set against the United Nation’s 2030 Agenda for Sustainable
Development, particularly SDG Goal 4 for Technical and Vocational Education and
Training. Under this goal Sector Skills Councils (SSCs) can play a critical role in helping
employers, skills providers and other stakeholders to work together to achieve the
targets identified for this goal. In today’s society, in both developing and developed
countries alike, youths are more affected by unemployment than any other age
group. TVET is one mechanism that can equip youths with the relevant skills to
prepare them for the jobs of today and the future that will enable them to lead more
fulfilling and prosperous lives. Sector Skills Councils provide the support, enabling
young people to achieve such goals.
This study was commissioned by the Commonwealth Secretariat in 2015 and
updated in 2016 to reflect the new global education agenda. The broad objectives
are to map approaches to sector skills development across 16 Commonwealth
member countries and to explore the different approaches used, to identify the
structures that are adopted and to document the functions that they perform, the
links they have with the private sectors and how they relate to the broad processes
associated with the Technical and Vocational Education and Training (TVET)
infrastructure. Adopting such a process provides lessons on why some approaches
to sector skills development are more successful than others, as well as a number of
recommendations for developing countries who want to establish or even reform
their existing approaches to sector skills development.
There is a growing body of literature on approaches to sector skills development,
as well as on the parts played by Sector Skills Councils (SSCs). The majority of these
studies focus on Organization for Economic Co-operation and Development (OECD)
countries and normally analyse what works best in the context of industrialised
countries. The situation in developing countries differs considerably, given that they
do not normally have a large industrial base. Similarly, public institutions in developing
countries are often not familiar with forging partnerships with the private sector to
deliver skills. This raises the question of how the sector-based approach can work in
developing countries and what lessons can be gained from successful industrialised
countries, especially as it pertains to employer engagement, public–private
partnerships (PPPs) and mechanisms for adjusting supply to changes in demand.
As far as we know, there have been limited attempts to compare and contrast
approaches in different parts of the world.
This analysis compares sector skills approaches in a selection of African, Asian and
traditional industrialised economies, as well as in a number of small island economies.
The reason for choosing such groupings was because the countries share similar
development characteristics and the analysis was intended to compare how
approaches for sector skills development differed, what functions are carried out by
SSCs in these different groupings, the roles of employers and governments in these
processes, as well the possible benefits/disadvantage of different approaches.
The countries analysed in Africa include Botswana, Kenya, South Africa and
Mozambique. The size of the formal sector is relatively small in all four countries,
with South Africa exhibiting the largest industrial base of the four. The sector-based
approach to skills development in the four countries takes different forms. South
Africa has arguably one of the most sophisticated sector-based approaches to
skills development in the world. This forms a key part of the country’s approach to
xii \ Mapping Sector Skills Development across the Commonwealth

skills development and involves Sector Education Training Authorities (SETAs), but
implementation has experienced severe difficulties and the country continues to
face large skill shortages. In Botswana, the approach to skills development involves an
integrated top-down and bottom-up approach to planning, under which the Human
Resource Development (HRD) sector plans feed into a national policy framework.
Kenya has a long history of funding industry-based sector skills development, but
recently this has stopped owing to a perceived lack of effectiveness. However, Kenya
still operates a sector-based approach using autonomous structures, which are
managed outside government. The former has good governance structures and
are driven by employers, as opposed to government structures. The final country,
Mozambique, has experienced difficulties in establishing even basic structures for
sector skills development owing to a lack of funding and what could be regarded as
limited political support.
The Asian countries of Bangladesh and India, analysed in this study, share some
similar development characteristics and aspirations for growth. The private sector
demand for skills has outstripped their supply in both countries, and employers in
priority sectors commonly complain that they cannot find workers with suitable
skills. In response to these demands, the governments in Bangladesh and India
have embarked on extensive reforms to their TVET systems. On the surface, the
reforms appear to be similar and sector skill structures are envisaged to play a key
part. Within India the nature and extent of the reforms are more extensive, with
employers playing a key part in driving the agenda through their SSCs. By contrast,
in Bangladesh the government appears to drive this approach and employers have
more of an advisory role in the recently established Industry Skills Councils (ISCs).
These countries illustrate how different strategies for employer engagement can lead
to different outcomes.
The sector-based approaches in the four industrial countries chosen for this
analysis (Singapore, the United Kingdom, Canada and Australia) are very different,
reflecting their development trajectories and government strategies, as well as their
political commitment to skills and industrial development. Within our selection of
industrialised economies, Singapore has achieved successful growth and this has
been facilitated by a mechanism that links industrial production with the type of skills
produced. Only recently have formalised structures been established to support
a sector-based approach to skills development through the Industry Training and
Skills Councils (ITSCs). Another industrial economy chosen for this analysis is the
UK. The UK has one of the longest histories of sector-based approaches to skills
development and SSCs and offers a number of lessons on what to do, and what not
to do. The UK has been criticised for having what could be regarded as a supply-
based approach to sector skills development in which strategies, funding and targets
are driven by the national government and civil servants. The other two economies,
Australia and Canada, have federal systems and sector bodies have a key role in skills
development, but it has been more pronounced in Canada than in Australia. The
Sector Council (SC)-based approach in Canada, and the ISCs to a lesser extent in
Australia, are key vehicles for ensuring that employers play a key part in influencing
the skills agenda.
The island countries chosen for this comparative analysis are situated in two very
different parts of the globe, namely the Caribbean and the Pacific. The countries in
the Caribbean include Jamaica and Antigua and Barbuda and in the Pacific include
Fiji, Kiribati, Solomon Islands and Vanuatu. In Jamaica the sector-based approach
involves a collaborative approach between the Planning Institute for Jamaica
(PIOJ) and the Human Employment and Resource Training Trust (HEART) National
 Executive Summary \ xiii

Training Agency (NTA). PIOJ determines economic sector priorities and the HEART
NTA translates them into supply through their academies and other partners.
A performance monitoring-based system is used, enabling the HEART NTA to
adjust supply to changes in the labour market in a relatively short time. By contrast,
Antigua and Barbuda has Industry Lead Bodies (ILBs) that were established under
a donor-funded programme. Despite the good intentions of the programme, once
the overseas technical assistance was removed the sector-based approach had
limited sustainability.
The Pacific Islands have developed an innovative approach to sector skills
development, called Skilling Youth in the Pacific. Currently, this programme is in
the planning stages and will be funded by the Australian government. Under this
programme technical education providers in the region will work together with
professional bodies to deliver internationally validated programmes that have an
identified demand within specific sectors. The technical providers in the region will
have to form consortiums with employers and bid for funds to deliver these skills.
In theory, this could provide a strategy for overcoming many of the constraints
faced by providers in the Pacific region, enabling them to produce graduates with
internationally recognised qualifications who can also access jobs markets overseas.
By undertaking the above analysis it was possible to map approaches to SSCs
across the Commonwealth and to understand their functions. A total of four main
approaches or models were identified during the research. Most of the countries
analysed followed one or more of these approaches to varying degrees.
The first model for sector skills development is called the advisory approach. Under
this approach the sector bodies are expected to perform advisory roles and to
provide the basis for employers and stakeholders to input into the skills development
process. Examples of such an approach can be found in the SSCs in Mozambique,
and the ILBs in Antigua and Barbuda.
The second approach to sector skills development builds upon the features
discussed above. Normally, the structure is more formalised and has underpinning
legislation. The SSC would normally perform advisory activities and also focus its
efforts on developing occupational standards collaboratively with employers. Typical
examples of countries that follow this approach include the ISCs in Bangladesh. This
can be regarded as a more sophisticated advisory approach.
The next model or approach to sector skills development involves a more active
role for the SSCs. In addition to the functions mentioned previously, the SSCs focus
on accreditation, certification and assessment functions. This approach moves the
SSCs away from just being advisory bodies, and towards being more interventionist
bodies that influence the quality of supply. In contrast to the previous approaches,
there are more opportunities for employers to become involved in skills development
and to take ownership. Commonwealth countries that follow this interventionist
approach alone include the island economies in the Pacific region.
The fourth type of approach involves the SSCs managing supply, as well as the other
functions outlined above. Normally this would involve the development of a sector
skills strategy and an attempt to match the supply identified by the skills system
to perceived demand. In most of the case studies this approach does not address
demand issues in the labour market and instead focuses only on reforms to the
supply-side system. For the effective implementation of such strategies the SSCs
normally need appropriate funding or formalised links to other structures in the TVET
xiv \ Mapping Sector Skills Development across the Commonwealth

system. This supply-based approach is probably the most common approach across
the Commonwealth and takes place to varying degrees in Botswana, Jamaica, Kenya,
India South Africa and the UK.
The final approach builds on the former model, but the difference is that an SSC
gives more attention to factors that influence the demand for skills in the workplace.
Emphasis is given to understanding the workplace and how skills development is
integrated with other practices, especially around what are called high-performance
working practices. This approach moves beyond managing supply and attempts to
raise the demand for higher level skills, with the overall goal of raising productivity
and supporting moves up the value chain. Examples include Singapore, Canada and
possibly Australia. It is also clear that India is moving in this direction. This final model
is called the demand-led approach to sector skills development.
The lessons from undertaking the comparative case studies are numerous. The most
important lessons relate to an identification of what conditions are necessary for
SSCs to perform their roles effectively. The analysis identified a number of factors
that can influence whether or not SSCs are fit for purpose, including adequate
capacity, necessary resources and a clear mandate. Another lesson relates to
employer engagement. This is at the heart of many debates about the performance
of SSCs and there is a need to comprehend why employer engagement in some
SSCs is stronger than in others. Equally significant is the importance of integrating
SSCs within the wider TVET infrastructure. Unless this occurs, SSCs will face continual
difficulties in carrying out their intended functions. Other issues or lessons raised
extensively in the analysis relate to how to obtain accurate labour market intelligence
and the implementation of a performance-based system that is not led by the
government. The final lessons relate to larger countries with layers of bureaucracy
and how to mitigate the negative impact of two-tier systems of government with
different decision-making processes on the operation of SSCs.
Finally, a number of recommendations are made for developing countries that want
to establish a system of SSCs or reform their existing ones. A number of questions
are raised that need to be addressed by those involved in the setting up or reforming
of SSCs.
The first question to be addressed is what sectors should the SSCs focus on?
The type of sector is very important, because there is a need to assess which
sectors could benefit from targeted skills development. In some sectors there are
minimal opportunities for employment growth and in other sectors there are few
opportunities for skill advancement. Therefore, research will have to be conducted
and the government, together with partners, will have to decide on the most
appropriate sector in which to establish SSCs.
The second question to tackle is what mandates should SSCs have? This is a difficult
question to answer and will be based on a government’s priorities and reflect the
wider TVET infrastructure within which SSCs are expected to operate. When making
a decision about SSCs’ precise functions, it will be important for the government, with
partners, to decide whether they will be an advisory, an interventionist or a demand-
led body. These are not just academic issues, as the approach followed by the SSC
will ultimately determine the institution’s mandate, functions and corresponding
structure, as well as their funding arrangements. Regardless of mandate there must
be a focus on promoting gender equality and ensuring access to TVET by hard-
to-reach, minority and disadvantaged groups. The SSCs can also help ensure that
women and minority groups obtain improved access to the labour market, particularly
in segments where they are traditionally under-represented. The SDGs and COP21
 Executive Summary \ xv

are also directing a shift towards green economies, which may require newer skill
sets for young people. It also further strengthens the need for an effective SSCs-
based system to advise providers on changes in demand driven by the transition to a
greener economy.
The third question facing governments, along with stakeholders, is what type of
structures should be established to support sector skills development? The decision
to establish SSCs structures is a political one and would normally occur because a
priority economic sector requires skills or is experiencing a severe shortage (and is
acting as a bottleneck to production). A country could embark on a sector-based
approach using their existing systems, with a change in the focus of their existing
policies. Alternatively, it might be possible to establish sector-based committees
that meet occasionally. The introduction of a comprehensive sector system is more
complex, involving the setting up of independent SSCs that report to a National
Training Authority (NTA). The decision to establish an SSC is a political one and must
be supported and, where possible, driven by stakeholders.
A fourth question, which is closely related to the one above, relates to how SSCs
are integrated into the wider TVET infrastructure and institutions responsible for
economic development. There are numerous questions surrounding the integration
of SSCs into such structures. The first is how to ensure that SSCs strategies are
integrated within other policy frameworks, including those for education and
economic development. The second is how to establish mechanisms or agreements
for coordination between different parts of the TVET and education system. The
third issue is how to ensure that SSCs are linked to central and regional government
structures, especially in large countries with federal- and state-level government
systems. Unless mechanisms are introduced, cooperation between the SSCs and
other structures is not likely to occur.
The fifth question focuses on how SSCs will be funded and made sustainable.
Without access to adequate funds, the SSCs will be unable to carry out their mandate.
The funds should be managed in a transparent manner, ensuring that they are used
for their specified purpose. There are a number of issues pertaining to funding that
the SSCs must address, along with government and their partners. These include
how the funds are raised or sourced, how they will be managed and, finally, how they
will be disbursed. A final option for sustainability is for the SSCs to engage in some
form of income-generating activity.
The sixth question investigates how SSCs can establish PPPs that are strategic and
demand-led. The evidence from the different country case studies highlights that
PPPs consist of a number of formal or informal arrangements between the SSCs and
representatives from the private sector. These PPPs involved a number of different
initiatives that could occur at a variety of levels, ranging from the policy to the
operational and delivery levels, as well as in the area of funding. The evidence revealed
that SSCs experienced limited difficulties in the setting up of PPPs. What is more
difficult is for SSCs to establish PPPs that are effective and sustainable. The key to
developing an effective PPP is to provide autonomy for employers involved with SSCs
and to ensure that they take a lead on all issues surrounding skills development. In
order to ensure that this happens there is a need to establish institutional structures
and provide the necessary incentives to make sure that the private sector takes the
lead on any initiative that involves an SSC.
xvi \ Mapping Sector Skills Development across the Commonwealth

The seventh question relates to the need for governments and their partners to
think about the information that is required by the SSCs. The SSCs must have a good
understanding of their sector and access to accurate and timely intelligence. Unless
this occurs they are unable to identify their current or future needs, let alone develop
comprehensive responses in the form of sector skills plans.
A common problem facing developing countries is the lack of valid and timely data to
understand the needs of their sector. The development of data can be an expensive
and time-consuming process. Therefore, it is important that SSCs develop a cost-
effective strategy to identify and collect relevant data that help them to understand
the main trends in their sector. The nature of the data-collection strategies will be
determined by the resources available to the SSCs and their capacity to develop a
labour market information system (LMIS).
The eighth question that must be tackled is how can SSCs develop strategic and
operational plans? A strategic plan helps to define the direction of skills development
in a particular sector over the next 4–5 years. The strategic plan needs to identify
the emerging sector skill needs and the changes that will be required to ensure that
skill shortages are tackled. In some countries the SSC plans are used as part of the
industrial policy and this would require an identification of how to raise demand within
enterprises at the sector level. In contrast, the operational plan is simply the business
plan for the SSC and identifies what needs to be done, how much will it cost and
who will be responsible. In some countries the strategic and operational plans are
combined, but in other countries they are separate.
A penultimate question addressed in the recommendations is how the sector-based
approach should be rolled out. The key to rolling out the sector-based approach is
to have employers driving the SSC right from the start. A number of strategies could
promote such engagement, including the sub-contracting of the SSCs to groups of
employers in the sector under a licensing arrangement. This is currently taking place
in India and appears to be successful (see section 5.2 and the case study on India in
Annex II).
The setting up of new sector-based structures could be done on an incremental
basis and involve the piloting of SSCs in two or three high-priority sectors. Once
some of the teething problems have been ironed out, then a more comprehensive
approach could be followed, tackling all of a country’s priority sectors. Another issue
around the rolling out of an effective system is the flow of funds through the system,
which can help to ensure their integration into the wider TVET system.
A final issue in rolling out the sector-based approach is how to establish a
performance monitoring-based system for the SSCs. The performance of the
SSCs will need to be measured and this will depend upon the functions that they are
expected to perform. The approach should identify what outcomes are intended;
how much will this cost; what partners will be involved in supporting implementation;
and how these processes will be monitored. This should be a straightforward and
flexible system in which modifications can be made in response to changes on
the ground.

1. Introduction to the
Assignment
1.1 Introduction
This study has been commissioned by the
Commonwealth Secretariat as part of their
programme to understand and facilitate improved
access to and delivery of quality skills across
the Commonwealth. Improving access to skills,
particularly for the most disadvantaged in our
society, is a key aspect of the Secretariat’s work
on sustainable development, gender equality
and enhanced education attainment, as well
as facilitating improved youth transitions, all of
which are articulated in its Charter. This current
assignment focuses on mapping approaches
to sector skills development in a selection of
Commonwealth member countries. Normally, the
structures responsible for supporting skills at the
sector level are called Sector Skills Councils (SSCs).
There are many different approaches to sector skills
development across the Commonwealth and the
success of a particular approach often depends
upon its integration within the wider Technical and
Vocational Education and Training (TVET) system
and national policy frameworks.
The purpose of this study is to unpack the term
sector skills development and to understand
how SSCs in different Commonwealth countries
work, including how they develop skills, what roles
employers have, and how government policy
frameworks facilitate these processes. This has
been achieved through undertaking case studies
of 16 Commonwealth member countries. Through
analysing the experiences of these different
countries it is possible to offer lessons and to
understand why SSCs in certain countries are more
strategic and demand-led than others, as well as
the role of public–private partnerships (PPPs) in
this process.
There are six sections to this report. The method
and approach for undertaking this study is
outlined in Section 2. A case-study method was
used to investigate how SSCs (or equivalents)
approach sector skills development in the 16
countries. Each case study analysed the context
in which sector skills development took place, the
Introduction to the Assignment \ 1
functions that were performed by SSCs, how they
were managed, the role of PPPs in these processes,
as well as the benefits/limitations of using such an
approach. The careful selection of case studies
ensured that a representative sample of countries
from across the Commonwealth was analysed.
Literature reviews for the studies are presented in
Sections 3 and 4. The first review focuses on TVET,
providing an understanding of the context in which
SSCs operate. The following issues are tackled:
recent theoretical debates within TVET; the factors
that are driving reforms in TVET; the meaning of the
term PPP; and the conditions that are necessary
for successful skills formation. It is important
to emphasise that researchers have identified
the following factors as vital for successful skills
formation: (a) a good foundation in basic education;
(b) a strong formal education system that produces
young people with strong intermediate-level skills;
(c) groups of employers in strategic economic
sectors are committed to developing skills; (d)
there is a strong commitment from government
at all levels to the process of skills formation; and
(e) synergies are required between strategies for
economic growth and skills development.
Section 4 focuses on existing evidence about
SSCs and the work that has been done in this
area before. The literature reviews provide the
framework for undertaking the case study research,
especially in determining what issues to investigate
and the importance of understanding the context in
which SSCs operate.
The complete country cases studies can
be found in Annexes I-IV and a comparative
analysis is presented in Section 5. This analysis
compares sector skills approaches in (a) Africa;
(b) Asia; (c) industrialised countries; and (d) island
economies. The reason for using this grouping
is that the countries share similar development
characteristics. The analysis compared different
approaches for sector skills development;
what functions are carried out by SSCs in the
different regions; the role of employers in forming
2 \ Mapping Sector Skills Development across the Commonwealth

partnerships with the state; and the possible Finally, recommendations are made on how to
benefits/disadvantages of the approaches in the establish effective SSCs that are fit for purpose
different regions. (Ashton 2006) or, alternatively, to reform existing
ones. A number of recommendations are given
Section 6 identifies the lessons that can be gained
that could help an SSC move from a solely advisory
from the preceding comparative analysis. The
function to a more strategic and demand-led one.
section begins by mapping the type of approaches
The key for making such a transition is to ensure
used by SSCs across the Commonwealth, enabling
that SSCs are employer-led, have the appropriate
us to understand why some SSCs are more
funds, have a clear mandate and are integrated
successful than others. Second, on a more practical
positively with other institutions in the wider TVET
level we look at what conditions are necessary for
infrastructure. Only through effective engagement
SSCs to perform their roles effectively. The third
between public institutions, stakeholders and
lesson tackles employer engagement, especially
employers is it possible for countries to achieve
around the issue of PPPs. This is at the heart of
the SDGs.
many debates about the performance of SSCs
and the section looks at effective strategies for
PPPs. The fourth lesson focuses on the importance
of integrating SSCs within the wider TVET
infrastructure. Unless this occurs, SSCs will face
continual difficulties in carrying out their intended
functions. The fifth lesson considers the issues
that were raised extensively in the analysis, namely
how to obtain accurate labour market intelligence
and how to implement a performance-based
system that is not state-led. The final lesson relates
to countries within larger federal government
structures and how to mitigate the negative impact
of a two-tier system of government on SSCs.
 Method and Approach used to Undertake the Assignment \ 3

2. Method and Approach used

to Undertake the Assignment
2.1 Introduction • Sector Skills Councils (SSCs): the formalised
structures that attempt to understand the
As outlined previously, the broad objective of
nature of skills in demand within a sector and
this study is to map approaches to sector skills
to develop an appropriate response;
development across the Commonwealth and
to explore the approaches used by different • Public–Private Partnerships (PPPs): any
member countries, the functions of SSCs and their formal or informal arrangement between the
relationship to the broad processes associated with public sector and representatives from the
the TVET infrastructure, including the role of PPPs. private sector, as well as other stakeholders,
that supports or facilitates skills development.
The specific objectives of this study were to identify
As outlined before, sustainable partnerships
the lessons that could be gained from different
are at the heart of the SDGs, and PPPs provide
countries’ approaches to sector skills development
a framework for ‘strengthen[ing] the means
and why certain approaches were more successful
of implementation and revitaliz[ing] the global
than others. This provides the basis for making
partnership for sustainable development’ (the
recommendations for developing countries who
goal for SDG 17)
want to establish or reform their existing systems.
These four terms are used extensively in the
The overriding framework for guiding this
assignment. It is important to recognise that
study is shown in Figure 2.1 There are three
TVET refers more to the structures involved
main components to this framework. The first
in producing skills, whereas skill development
component relates to the actual stages of
refers to the outcomes of the TVET processes.
undertaking this assignment. The second refers
The definition for SSCs is used generically in the
to the approach that was used to conduct the 16
assignment and describes a situation in which
country case studies. The final component focuses
governments, along with stakeholders, develop
on the analysis, lessons and recommendations that
and in some instances implement an approach to
emerge from the case studies.
sector skills development. This definition may be
an oversimplified account of what actually happens,
2.2 Phases to undertaking the but it provides the basis for investigation in the
assignment current study. Finally, the term PPP has a broad
coverage and refers to a situation in which public
There were a total of five phases to undertaking this
sector institutions engage with representatives
assignment. The starting point (Phase I) was to clarify
from the private sector to improve the quality and
and understand key terminology used in the study.
responsiveness of provision. This may take many
Among the most important terms that required
forms, ranging from the development of strategies
clarification and definitions are the following:
to the facilitation of delivery and funding for skills
• Skills Development: this refers to the development.
acquisitions of skills, knowledge and aptitude
Phases II and III of this assignment involved two
to undertake the practical competencies
separate literature reviews. The first review (Phase
necessary to perform a trade or occupation in
II) focuses on TVET to provide an improved
the labour market;
understanding of the context in which SSCs
• Technical and Vocational Education and operate. There is a vast and growing literature on
Training (TVET)2: the institutions, structures TVET, with new studies being published each day.
and enterprises that are involved in developing In an attempt to make sense of this material, the
or delivering skills; review focused on (i) understanding theories of
4 \ Mapping Sector Skills Development across the Commonwealth

Table 2.1 Selected case studies for understanding how Commonwealth countries
approach sector skills development
Asia Africa Canada/ Pacific Europe
Region
Caribbean
Countries Bangladesh Botswana Canada Australia UK
India Kenya Antigua Kiribati
and Barbuda
Singapore Mozambique Solomon
Jamaica Islands
South Africa
Fiji
Vanuatu

TVET; (ii) the factors that drive reforms in TVET; (iii) • the background context and labour
PPPs in TVET and skills development; and (iv) the market issues;
conditions required for an effective TVET system.
• an overview of skills development;
By contrast the second literature review
• the development of the sector skills system;
(Phase III) focused on the existing evidence for
sector skills development and addressed the • management and governance of and funding
following questions: for SSCs;
• What is a sector-based approach to skills • the part played by employers and the private
development? sector in these processes3; and
• What are the benefits to be derived from • benefits and limitations of the sector-based
adopting such an approach? approach
• What are the functions performed by SSCs? For most of the case studies extensive discussions
took place with experts who had inside knowledge
• What are the conditions required for the
of the country’s skills development system.
effective operation of SSCs?
The countries selected for the case studies are
• What are the limitations of a sector-
shown in Table 2.1 The decision to select these
based approach?
countries was based on three criteria. First,
Taken together, the literature reviews helped the selection of countries had to comprise a
to provide the theoretical underpinnings and representative sample of countries from across
framework for undertaking the 16 country the Commonwealth. Second, the country must
case studies. have existing structures that support sector skills
development (or plans to develop them). Third,
2.3 Approach used to undertake it must be possible to readily gain access to this
information and the relevant documentation
the country case studies
related to performance. The complete country case
(Phase IV) studies can be found in the Annexes.
The framework for the case study research
recognised that SSCs are not isolated structures
that work independently. In any country the success
of an SSC depends on the wider infrastructure
for skills development, the government’s national
policy frameworks and employment commitment,
as well as the country’s level of development. Taking
account of these issues, each of the country case
studies tackled the following:
 Method and Approach used to Undertake the Assignment \ 5

Table 2.2  Approach used to undertake comparative analysis

Regions for Asian African Industrialised Island Europe
comparative economies economies economies economies
analysis

Countries Bangladesh Botswana Australia Antigua UK

and Barbuda
India Kenya Canada
Jamaica Kiribati
Mozambique Singapore
Solomon
South Africa UK
Islands
Fiji
Vanuatu

2.4 Analysis, lessons and • What do we mean by approaches to

recommendations
The analysis of the case studies identifies trends
among SSCs in different countries, as well as the
strategies or approaches that are most effective.
Prior to undertaking the analysis it was necessary
to identify which country case studies should
be compared. Initially, attempts were made to
analyse the country case studies by region or gross
domestic product (GDP), but there were problems
with this approach, as some of the countries in the
same grouping had very different development
characteristics. Therefore, the decision was taken
to compare and analyse countries with similar
development characteristics (see Table 2.2).
It was possible to draw a number of lessons
from the comparative analysis, with a view to
reconsidering the following:
sector skills development across the
Commonwealth?
• How do systems of government impact on
the way in which SSCs operate?
• What conditions are necessary for SSCs to
perform their expected roles?
• How do SSCs relate to the wider
TVET infrastructure?
• What have we learnt about employer
engagement and PPPs?
• How do SSCs obtain accurate labour
market intelligence?
• What can we say about performance
management systems for SSCs?
The lessons provided the basis for the
recommendations. An attempt has been made to
develop a number of practical steps that should be
taken by a developing country to establish an SSC
or to reform their existing SSCs
 Stages to Analysis, Lessons
assignment &
Framework for Recommendation
undertaking 16 country s (phase V)
case studies (phase IV)
Phase I: Analysis:
 Asia
Understand Government policy National culture &
 Africa
terminology framework global markets  Industralised
economies
 Island Economies

Sector Skill bodies

Phase II: Literature
review on TVET
6 \ Mapping Sector Skills Development across the Commonwealth

Lessons:
 How do countries approach
sector skills development?
TVET and Education Employers and  How do government system
influence sector skills
Infrastructure other stakeholders development?
Phase III: Literature  what conditions are
review on sector necessary for effective sector
Figure 2.1 Methodological framework for guiding study

approach skills development?

 What relationships are
needed with the wider TVET
Labour Market system?
 What can we learn about
employer engagement?
Phase IV: 16  What can we learnt about
country case PPPs?
 How can SSCs obtain LMI?
studies

Recommendation:
Phase V: Analysis,
How developing
Lessons &
countries can
Recommendation
 Setting the Context for Sector Skills Councils \ 7

3. Setting the Context for

Sector Skills Councils
Understanding trends and developments within Technical, Vocational Education
and Training

3.1 Introduction Together these areas offer a basis for

This section sets out the context in which SSCs
operate. It is important to understand that
SSCs do not operate in isolation and that their
effectiveness depends on the wider institutional
and policy environment in which they are located.
The most important structures that interact with
SSCs are TVET providers and employers, as well
as other government structures involved in skills
development.
This section looks at recent debates within TVET
and provides an understanding of the background
in which SSCs function. This is a complex task
given the large number of debates and different
approaches used to interpret skills development.
In order to make sense of this vast literature a
decision was made to focus on the following:
• theoretical debates shaping our understanding
of TVET. This is important because theories
enable us to make sense of the real world;
• practical and operational issues and the
factors driving reforms in TVET;
• the importance of PPPs and their implications
for SSCs;
• the literature on the conditions for effective
skills development.
understanding trends and developments within
TVET, providing the background context in which
SSCs operate (see Figure 3.1).
3.2 Theoretical debates shaping
an understanding of technical
and vocational education
and training
There are a number of theoretical debates about
TVET and skills development, most of which
account for why countries follow a certain pathway
for skills development and approaches that are
more successful than other countries. The reason
for the success of a country’s TVET system can
be explained by a country’s development path,
the type of institutional structures established by
the government, the relationship between capital
and labour, as well as the state’s role in supporting
relationships between the different actors involved
in skills development. According to Kraak (2013)
the former processes and relationships ultimately
determine who provides training, who finances
training, who controls the relationships between
firms and the state and the perceived status of
TVET in society. All of these issues are key to

Figure 3.1  Approach used to understand the context in which SSCs operate

Public, Private
Theories for
Partnerships for
understanding
TVET & Skills
TVET
Development
Understanding the
environment in which
SSCs operate

Factors driving Conditions for

reforms for effective TVET
TVET
8 \ Mapping Sector Skills Development across the Commonwealth

understanding why some countries’ TVET systems, studies have argued that the continued difficulties
as well as the operation of their SSCs, are more of responding to employer demand, combined with
successful than others. high unemployment rates among TVET graduates,
reflect the fact that many countries continue
The key issue to emerge from the theoretical
to follow a supply-led approach. The former is
debates around TVET is the importance of
reflected in the type of reforms occurring within
understanding the context in which TVET
many Commonwealth countries, a large number of
institutions operate and how they relate to the
which have focused on qualification frameworks,
wider network of institutions and socio-political
the development of standards, curriculum
relationships impacting on skills development.
development, the training of instructors and other
Together these structures and political interests
supply-based issues. There is a need to focus on
help to shape decision-making processes for
improving the quality of supply, but this should
TVET and to determine investment levels and how
not occur at the expense of understanding and
different actors relate to each other. This is the
supporting more demand-led reforms. This issue is
environment in which SSCs operate.
very relevant to how SSCs operate, as the evidence
Using the theoretical approach outlined above, from this study highlights that most follow a supply-
Finegold (1989) and Ashton (2006) have led approach.
distinguished between low-skill equilibrium and
In the light of the issues raised above, Kraak (2013)
high-skill equilibrium. Under this definition Britain
emphasises the need to focus more attention on
is identified as having a low-skilled equilibrium,
factors that determine a firm’s demand for skills.
with a government and network of structures
Two key factors have been identified as shaping
that reinforce this pathway. Among the reasons
employer demand for skills. The first of these is the
for this low-skill pathway are a lack of government
technology used by employers in the workplace.
interest in long-term skills development; an
The second is the type of management and higher
emphasis on a low-skill path; uncoordinated policies
performance practices used by an organisation.
for industrial and skills development; emphasis
Together, these two factors help to shape the
given to university education at the expense of
nature of demand for skills in the workplace (rather
technical training; and a development path driven
than government policy or what happens in
by the stock market as opposed to longer term
TVET providers).
planning for strategic industrial development.
The significance of this thesis is that any attempt The importance of understanding demand is seen
to reform the skills development system without in the work undertaken by the Skills, Knowledge
tackling any of the other connected institutions is and Organisational Performance Network based
likely to have a minimal impact. at the University of Oxford.4 Central to this work is
the recognition that the production markets and
A number of other researchers have built on the
competitive market of a firm, and not government
low-/high-skilled route to account for the situation
policy, determines an enterprise’s demand for
facing skills development in other countries. The
skills. Other researchers focusing upon demand
most well-known of these is the developmental
for skills have emphasised the significance of
state model. This approach explains how the South
tacit knowledge and how firms working together
East Asian Tiger economies were able to achieve
at the local or regional level can benefit from
high growth rates using state intervention and
knowledge sharing through industry associations,
the protection of specific industrial sectors, as
state agencies and other intermediate bodies.
well as ensuring that investments occurred in the
The Organization for Economic Co-operation and
right type of skills. Through supporting improved
Development (OECD) has also been leading the
links between priority economic sectors and
debates on the importance of local interventions
investments in quality skills, the South East Asian
to help stimulate demand and the need for
Tiger economies were able to successfully move
policy-makers to support more joined-up thinking
up the value chain through a series of different
around workforce development and to ensure that
industrial phases.
initiatives steer enterprises into more high-value-
Another issue emerging from the TVET literature added production (OECD 2012).
is the need for countries to follow a more demand-
side approach to skills development. A number of

These theoretical debates explain the context
in which SSCs operate and how their functions
depend on what happens in the broader
environment, including how they relate to wider
institutional structures and partners involved in
skills and economic development. Moreover, the
debates help us to understand the significance
of demand and the importance of focusing more
upon practices and behaviour within enterprises as
opposed to focusing only on supply-level reforms.
3.3 Global drivers and their impact
on technical and vocational
education and training
Theoretical debates are important, but it is equally
significant to understand the main factors that
are driving reforms within TVET (see Marne
2014, from which a number of the drivers were
drawn). Understanding these drivers has practical
implications, especially around the priorities
that should be targeted by policy-makers and,
correspondingly, the resources that are required to
effectively implement such reforms.
In the past, the direction of TVET, especially
in developing countries, was influenced by
international organisations and the strategies
suggested by donors. During the 1970s and 1980s
the vocationalisation of the secondary school
curricula was high on the development agenda.
There was a naive assumption that a strong
relationship existed between the vocationalisation
of the school curricula, facilitating youth
employment and support for economic growth.
Unfortunately, TVET failed to achieve the expected
results and a number of studies highlight the
poor returns from investing in school-level TVET
compared with general education at the secondary
level (UNICEF-WBI, 2008).5
During the 1990s the international education
agenda was also driven more by a focus on
achieving universal basic education and improving
basic numeracy and by a commitment to
Millennium Development Goals (MDGs), as well as
Education For All (EFA) goals. This also resulted in
a general neglect of TVET, especially at the post-
school level, by donors.
A renewed interest in TVET could be seen 10 years
later and by 2010 it was back on the international
agenda. This has been reflected in a number of
global reports published by the United Nations
Setting the Context for Sector Skills Councils \ 9
Educational, Scientific and Cultural Organization
(UNESCO), OECD, the International Labour
Organization (ILO), the G20 summit and others
(Norrage 2013). The 2012 EFA global monitoring
report focused on the concept of life skills, as well
as foundational and transferable skills. An OECD
report, Better Skills, Better Jobs and Better Lives,
tackled the important topic of adult skills (OECD
2012). In addition, Mckinsey (2013) focused on the
debates surrounding the high skills debate.6
Another aspect of the international agenda that
is driving change and providing momentum is
the 2030 Agenda for Sustainable Development.
This Agenda is a plan of action for people, planet
and prosperity that seeks to strengthen universal
peace through larger freedom. There are a total
of 17 Sustainable Development Goals and a
corresponding 169 targets. The most relevant to
the area of TVET is Goal 4: ‘[e]nsure inclusive and
equitable quality education and promote lifelong
learning opportunities for all.’ A number of specific
targets are also identified for this goal, some of
which are relevant for SSCs. The target for 4.3
states that by 2030, equal access for all women and
men to affordable and quality technical, vocational
and tertiary education, including university, should
be ensured. Another relevant target under Goal
4 is that the number of young people and adults
who have relevant skills, including technical and
vocational skills, for employment, decent jobs and
entrepreneurship should substantially increase
over the same period. It is clear that SSCs will have
to work with the broader framework of reform
agendas to help government, as well as partners,
to achieve this goal and its corresponding targets.
At the same-time it has to be remembered that
increasingly, the international community will have
less influence on the direction of many developing
countries. Compared with 10 years ago, a significant
number of developing countries are no longer
recipients of donor budgets and in most instances
determine their own agendas, regardless of
international targets or commitments. Two cases in
point are South Africa and India, which are pursuing
their agendas for skills development independently
of donors or international commitment to targets.
Despite the declining influence of international
donors, TVET is recognised by policy-makers,
governments and stakeholders as having the
potential to contribute to socio-economic
and political development. In developed and
10 \ Mapping Sector Skills Development across the Commonwealth
developing countries there is an increasing
demand for skills and this appears to be driven by
a number of factors, the most significant of which
are the following:
Demographics: There is no doubt that
demographic changes are one of the most
significant factors impacting on countries across
the globe. The nature of the impact is felt differently
by developing and developed countries. Within
developed economies there is a significant
decrease in the number of young people entering
the labour market, and the numbers retiring from
the labour market over the next 10 years will
increase. According to the United Nations (UN)
there will be a decline of around 17 million people
of working age in developed countries by 2020
(UNESCO 2012). This will leave developed countries
with a lack of workers and in some instances
a diminished skill base. There are examples of
developed countries responding to this anticipated
crisis by creating opportunities for skilled migrants,
especially if they have the type of skills that are
in demand.
In contrast, developing countries are expected to
have an additional 460 million persons of working
age by the year 2020. The increased numbers
coming onto the labour market will create an added
burden for governments in developing countries. In
some developing countries, especially those with
a minimal formal sector, there have been attempts
to improve employment opportunities through
developing formal strategies to export workers. The
earnings from overseas workers have contributed
to GDP levels for a number of years in a number
of countries, the most significant of which include
Ghana, the Philippines and Jamaica.
Youth: A key feature of the demographic changes
is the increased numbers of young people in
developing countries coming onto the labour
market for the first time. The 2009 financial crisis
and the rise in the numbers of young people
coming onto the labour market, combined with the
lack of employment opportunities, were some of
the triggers for the Arab spring and the eventual
overthrow of governments. The significance of
links between rising youth unemployment and
political instability has been highlighted in a number
of countries, ranging from large countries in North
Africa to smaller island states in Asia, such as
Timor-Leste.
It is clear that the labour markets in most countries,
especially developing countries, will not be able to
absorb the numbers of people searching for work.
The ILO states that in 2013 around 74.5 million
people aged between 15 and 24 years old were
unemployed. These figures are three times the
levels for adults (ILO 2014).
Based on existing demographic evidence the World
Bank argues that the trend in youth unemployment
is likely to continue and become even worse with
the larger numbers entering the labour market.
According to the World Bank, Africa alone needs
to create 100 million more jobs by 2020 just to
maintain the current levels of employment.7  
This ‘demographic bulge’ is a global trend within
developing countries. The number of young people
in the world is at an all-time high, with around
1.2 billion people looking for work. Over the next
decade another 1 billion people will enter the
labour market.
Many countries have started to measure the
numbers of young people who are not in education,
employment or training (referred to as NEET).
According to the OECD (2012), 30–40 per cent of
young people in any country can become NEET
when they first enter the labour market (OECD
2012). Approximately 358 million young people can
be broadly classed as NEET (ILO 2014). This has
led to concerns about young people’s transitions
to adulthood, and their ability to participate as
citizens in their own country. Currently, a number
of programmes are being supported by the
international community to encourage citizenship
values among young people.8 This is given
prominence under the 2030 Agenda for sustainable
development and cuts across a number of its
development goals.
Emerging labour market trends: The latest ILO
global employment trends report (2014) predicts
that by 2018 there will be 215 million job seekers
across the globe. Many of these will lack the
appropriate skills to obtain employment.
Another important trend is the numbers of people
engaged in what economists call vulnerable forms
of employment, including self-employment, part-
time employment, employment on temporary
contracts and working for one’s own family. The
ILO identifies that nearly 50 per cent of global

workers are engaged in some form of vulnerable
employment and such workers are likely to have less
access to social security or a secure income.
On a positive note, a final trend worth noting is the
falling numbers of what the ILO calls the working
poor. In the early 2000s there were around 600
million people working for less than US$1.25 per
day, but by 2013 the number had fallen to 375
million people.
One of the key strategies for tackling youth
unemployment and providing people with
opportunities for better work is to ensure that
they have acquired the skills needed to meet an
identified market demand. Unfortunately, the levels
of skills mismatches are growing in many countries.
A survey conducted by the World Bank (2013)
found that enterprises in 90 countries had identified
that a lack of suitable skills is causing bottlenecks
in production and impacting negatively on their
business performance.
Globalisation and technological change: With
the advances of globalisation, the flow of foreign
investments and the use of technologies have
become more widespread across the globe. This
has resulted in severe competition and uneven
development across the globe, with some
countries experiencing rapid growth rates and
others experiencing declining growth rates.
In the past economists assumed that globalisation
could improve developing countries’ access to
technology, enabling them to leapfrog stages of
development. For some parts of the globe, such
as the Tiger economies of South Asia, these
assumptions proved true. For other developing
countries, the relationship between globalisation,
technology and employment growth is not that
simple. Many countries around the globe are now
experiencing growth, but this is having a negligible
impact on employment levels. An example includes
South Africa, the largest economy in Africa, where
positive growth rates have been accompanied by
growing unemployment levels.9
A number of economists have argued that
countries are now experiencing a hollowing out
of their labour markets. In simple terms this
means that many middle-level and professional
occupations are being displaced by technology,
leaving a very small number of future job openings
in senior-level professions and the vast majority of
people needing to find employment in semi-skilled
Setting the Context for Sector Skills Councils \ 11
service jobs.10 There are other commentators who
question the hollowing out thesis and argue that
continuous investment in skills is still one of the key
ways to ensure competitiveness and employment
growth, especially for young people.
Education reforms: A number of wider education
reforms are impacting on TVET systems, especially
in developing countries. TVET is a key component
of lifelong learning and reforms to other parts of the
education system will also have implications for how
SSCs operate.
One of the key issues facing policy-makers is
the age at which young people should enter
TVET programmes. In some northern European
countries, young people enter apprenticeships
as young as 12 years old. This is based on the
assumption that those of lower academic ability are
channelled into more practically oriented pathways.
In the context of developing countries the debate
around the introduction of vocational subjects into
the secondary school curricula has gone around
in circles. This issue is highlighted in other parts of
this study and the key issue facing many developing
countries is whether they have adequate resources
to support the sustainability of a secondary school
TVET, particularly given the high costs of upgrading
and maintaining technologically advanced
machinery.
A final issue worth noting is the failure of education
to deliver the expected results for young people,
especially for those with degree-level qualifications.
According to Brown et al. (2012) this has led to a
broken promise in which university graduates are
unable to follow a professional career path or obtain
the wage levels experienced by their parents. The
consequences are growing numbers of unemployed
graduates in developing and developed countries.
Governments are responding to this problem by
providing unemployed university graduates with
work experience or more vocationally oriented skills.
Sustainable development: There has been a
growing interest by policy-makers and researchers
into the greening of economies and the changing
skill requirements. Many economists argue that
this offers opportunities for employment provided
that people have the right types of skills. This
affects training needs and delivery. In responding
to sustainable development issues, TVET is
creating new learning and research opportunities
to understand better the emerging issues. Against
12 \ Mapping Sector Skills Development across the Commonwealth
the move towards greener forms of employment,
UNESCO estimates that 15-60 million new jobs
could be generated globally over the next two
decades through the transition to a greener
economy. (UNESCO Strategy for TVET 2016-
2021). It will be important that young people have
the skills to take advantage of these opportunities,
especially those poorer sections of the community
that live in rural areas.
Another sustainable development issue is climate
change. Climate change may increase vulnerability
to and result in young people being displaced and
possibly becoming state-less, especially those living
in small tropical islands. This is a difficult challenge
for policy-makers to resolve. The greening of labour
markets can help to improve the situation, but this
cannot tackle the longer term impact of climate
change and rising sea levels. There is a need for
island economies to be given increased access
to labour markets in larger, more industrialised,
economies. This will have implications for
international trade agreements and also the type of
skills developed in island economies.
3.4 Public–private partnerships,
technical and vocational
education and training and skills
development
PPPs are a key reform area for skills development
and a number of international organisations are
investigating what PPPs are and how they can be
established effectively in developing countries.
There is a growing volume of literature on the
subject, but it is difficult to find a comprehensive
definition for this term in the context of skills
development. The role of partnerships features
prominently under the 2030 Development Agenda
and SSCs are part of the framework for bringing
together employers, public institutions and
stakeholders for sustainable development.
Most of the earlier debates on PPPs in skills
development focused on how governments
could leverage capital investments from the
private sector to fund infrastructure projects. The
assumption underpinning this approach was that
the public sector could obtain capital investments
for TVET and, in return, the private sector would
receive a return on their investment. There are
numerous examples of PPPs being used in the field
of skills to raise capital funds, especially in the UK.
Under the former coalition-led government (2010-
2015) there were plans to rebuild between 100
and 300 education institutions in the UK’s poorest
areas using a Private Finance Initiative (PFI)11. It is
anticipated that the PFI scheme will help to meet
shortages in public sector funding and provide an
estimated £8.5 billion for capital repair bills. Under
this arrangement, a private contractor pays upfront
for the costs of building or repairing colleges, and
these buildings are leased back to the public sector.
Recently, PFIs have become increasing expensive
owing to the higher costs of borrowing funds as a
result of rises in interest rates. Critics have argued
that PFIs can result in the public sector paying
back loans at higher levels than would occur on the
commercial market, which can divert resources
away from other training inputs, such as equipment,
material or even teachers.12
In developing countries, the use of PPPS to raise
capital investments for TVET is much less likely to
occur because financial markets are undeveloped
and the costs of borrowing are much higher. In
many countries the private sector is also less
likely to engage in such PPPs because the risks far
outweigh the benefits. Despite these difficulties,
donors continue to investigate the possibilities
of using PPPs to leverage private capital for
TVET. From a search of the literature there is
limited concrete evidence of PPPs actually being
used in developing countries in the area of skills
development for such a purpose. One of the only
examples can be found in Cambodia (Garment
Manufacturers Association 2011). This involved a
donor bringing together a government planning
unit and a selection of private enterprises to
support skills development in the garment sector.
Under this PPP a group of private enterprises were
intending to borrow funds from a donor to build
a college to train young people for the country’s
growing garment sector. The private sector would
support the operational costs of the college and
pay back the loan at a rate below commercial levels.
As part of this partnership the government would
provide the land upon which the college would be
constructed. After years of preparation for this PPP
an agreement could not be reached between the
enterprises and the government’s planning unit.
According to the relevant documentation, each
of the partners wanted control of the college and
eventually the PPP was abandoned.

The difficulties associated with using PPPs as a
means of raising capital funds for investment has
seen a rethink of how the private sector could
support skills development in developing countries.
Now PPPs are given a much broader remit and
used to explain how the public sector can work with
representatives from the private sector, as well
as other partners, to support different forms of
skills development. This is a very broad definition
and needs to be unpacked. A starting point for
understanding this new interpretation of PPPs can
be seen in the following definition made by the
World Economic Forum (2005):
Public Private Partnerships are a voluntarily alliance
amongst various actors from different sectors,
whereby they agree to work together to reach a
common goal or fulfil a specific need that involves
shared risks, responsibilities and competencies.
At the heart of this new definition of PPPs is an
assumption that skills development must be
increasingly driven by the private sector, for the
private sector and that the private sector must play
a key part in funding and supporting the delivery of
skills (with the government and other partners). A
number of international organisations are working
with governments in developing countries to help
their countries move towards a demand-driven
approach using PPPs.
The ILO has developed a policy for PPPs and
around 145 PPPs have been established involving
108 partners.13 The PPPs support all areas of
the ILO’s work, including the development of
standards, employment, social protection and
social development, as well as the promotion
of fundamental principles and rights at work.
Of these areas, 63 per cent of PPPs occur in
employment, encompassing interventions for
youth employment, skills development, policy
frameworks and conductive environments for
small and medium-sized enterprises (SMEs). Key
to each of these areas is the tripartite structure
in which employers, social partners and the state
are brought together to reach a consensus on
any reform for employment, skills development or
related areas.
The Asian Development Bank (ADB) is also active
in the area of PPPs and has developed an operation
plan to support the implementation of PPPs across
member countries. The ADB approach continues
to focus on infrastructure and the important role
of skills development in this process.14 Most of
Setting the Context for Sector Skills Councils \ 13
the ADB’s programmes for skills development are
also demand-driven and focus on using PPPs in
different forms. Examples include support for the
setting up of National Training Bodies to coordinate
skills development, most of which are employer-led
structures. The ADB is also investigating the role
that employers can have in the funding and delivery
of skills development across South East Asia. The
ADB is helping governments in the South East Asian
region to set up SSCs and implement levy grants
systems for skills development.
The OECD have conducted a number of studies
on PPPs. Reference to one of their recent
publications can provide more empirical evidence
on what constitutes a PPP in the context of skills
development (OECD 2013). According to the
OECD, the Indian government has undertaken four
significant initiatives since 2007 to encourage skill
upgrading using PPPs. This involves public training
institutes (ITIs), private sector ITIs, the National
Vocational Education Qualification Framework
(NVEQF) and the National Skills Development
Corporation. The National Skills Development
Corporation is responsible for quality assurance
systems, the training of trainers and the SSCs.15 The
National Skills Development Corporation is a PPP,
with the private sector holding 51 per cent and the
Indian government 49 per cent of the ownership.
Moreover, the SSC are driven by the private sector
under a performance-based contract. Under
this arrangement the private sector also has to
contribute to the operating costs of the SSCs.
Besides research on how countries use PPPs,
the OECD has also developed a number of
publications to help partners establish their own
PPPs. For instance, a recent guide focuses on how
to establish a business linkage programme for
skills development in Kazakhstan’s IT sector. The
guide identified a number of stages to establishing
this PPP, including the creation of a database of
local enterprises, selection and assessment of
the companies to participate, the provision of
local IT training, the organisation of cooperative
secondments abroad and the carrying out of
network activities. The guide spells out each of
these activities in detail.16
What can we make of the changing definition
associated with the use of PPPs in skills
development? The evidence demonstrates
that PPPs are now mainly used to describe
arrangements that move beyond infrastructure and
14 \ Mapping Sector Skills Development across the Commonwealth
Figure 3.2 A conceptual approach to understand how PPPs can support
skills development
Level of PPP Structures required
At the strategic
National Training Board
level
Sector Skill Councils
Implementation
level
Industry Advisory groups
Apprenticeship
Operational or
delivery level
Internship
Funding National Training funds
capital investment projects. The new arrangements
for PPPs focus more on knowledge-based activities
and how the state can work with employers to
ensure that skills development adapts to the needs
of the labour market and technological innovation.
The evidence also demonstrates that PPPs will
not automatically occur in developing countries
and require a number of conditions to be effective
and sustainable. The state must take a facilitation
role and ensure that the appropriate institutional
structures are in place for PPPs to operate. Equally
significant is the introduction of mechanisms or
incentives to encourage private sector participation.
The state must also play a part in providing such
funds. The private sector is also expected to have a
role in these processes and be fully committed as a
partner. Unless these conditions are in place, PPPs
are not likely to occur.
The evidence also reveals that PPPs for skills
development vary enormously and are influenced
by a country’s level of development and the type of
enterprises operating in that country, as well as the
structures and mechanism developed to facilitate
PPPs. In the context of the current study this raises
the question of how PPPs relate to SSCs and the
issues that should be investigated. Figure 3.2
attempts to provide answers to these questions.
This identifies where and at what levels PPPs can
Role played by PPP Mechanism
required
Support strategic planning Legislation
Identification of skill need
Mode of
and support for
operation and
determining occupational
funds
standards
Legislation
Support the delivery of
workplace learning Provision of
funds
Payment of funds/voucher
Levy grant
system
occur, the structures that are needed to support
them, the role that the private sector is expected
to have and the mechanisms that are required to
ensure the private sector’s participation.
At each of the different levels identified in Figure
3.2 a structure is required to support a PPP. For
instance, at the strategic level a national training
board or council would be required to drive the
agenda for skills development. Employers and
government would be expected to have a key role
in determining the direction of skills development
through such structures. This would require some
form of legislation or funding to facilitate this PPP
arrangement. Similarly, at the implementation level,
SSCs, involving representatives from employers
and the public sector, would determine skills needs
and facilitate the development of occupational
standards. Once again funds and support for the
setting up of the SSC would be required to ensure
that such a partnership functioned effectively. At
the delivery level the private sector can have an
equally important role, ensuring that access to skills
can be improved. Finally, in the area of funding the
PPP might involve the private sector contributing
to the costs of delivering skills through voluntarily
contributions or from a levy-based system
supported by legislation.

Figure 3.2 may be a simplification of how PPPs
operate and support skills development, but it
provides a boundary for guiding our research and
for defining the issues to be investigated. There is
no doubt that the focus will be on implementation
and the role of SSCs. However, is it important
to note that the successes of SSCs are also
determined by the TVET infrastructure in which
they operate. Figure 3.2 highlights the many
dimensions associated with PPPs and how they can
influence directly or indirectly the functions of SSCs.
It should be noted that the wider definition
associated with PPPs is similar to the expression
‘employer engagement’. Indeed, it could be
argued that the expression ‘PPP’ is an attempt to
reconceptualise and understand the way in which
the private sector works with the state in the field
of skills development, taking into account the
complexities associated with a global economy
and the increased pressures for competition and
technological innovation.
3.5 Conditions for effective
skills formation
Successful skills formation is at the heart of most
countries’ development agendas, insofar as it
determines how they can move their economies up
the value chain and tackle poverty alleviation and
rising unemployment. However, the way in which
countries approach skills development will depend
on their specific needs or goals. Understandably,
the needs vary from society to society and are
shaped by unique historical, political, social and
economic circumstances.
The type of TVET system developed will be
influenced by various agendas and will result in
emphasis being given to different components of
education, training or development, depending
on what the government and stakeholders think
are the most appropriate. Nevertheless, there are
a number of common lessons that can be gained
from the experience of other countries. A number
of pieces of work have addressed the important
issue of what conditions are necessary for effective
skills formation. Much of the earlier research
looked at the conditions that could explain the high
skill growth path followed by the East Asia Tigers
(see, for example, Ashton and Green (1996) for a
seminal piece of work on conditions for effective
skills formation). Later research has focused more
on developing countries and attempted to identify
Setting the Context for Sector Skills Councils \ 15
what can be regarded as golden rules that should
be followed for establishing an effective TVET
system. The following represents a summary of
the debates:
A good foundation in basic education is a
prerequisite for successful skills formation.
There is a great deal of international evidence
that demonstrates that a good basic education
provides the foundations for subsequent stages
of learning. The EFA states that ‘pre-primary
schooling is critical to early childhood development
and is the basis for all subsequent education
and training’ (UNESCO 2012: 17). More recently,
UNESCO (2015) has argued that a good foundation
in basic education is a prerequisite for achieving a
commitment to lifelong learning.17 TVET students
with good basic education perform better, in terms
of higher pass rates and higher grades, than those
without successful learning experiences. In other
words, the efficiency and effectiveness of TVET
learning improves when the enrolled TVET student
population has benefited from a better (in terms of
learning outcomes) basic education.
The education system must produce young
people with strong intermediate-level skills. A
total of 9 years of basic education needs to provide
young people with the prerequisite knowledge, skills
and attitudes to prepare them for more formal,
independent and diversified education and training.
This is at the heart of the UN MDG that stresses
the need for access for all children to 9 years of
basic education. At this stage of the education
system, it is becoming clear what the specific skills,
attitudes and interests of each learner are and this
forms the basis for further decision-making on
each learner’s continuing journey (further general
education, streaming into TVET or entry into the
world of work).
A sound secondary education with specific skills
in literacy, science, maths and IT are prerequisites
to achieve the targets for expanding occupational
skills at these levels. Interestingly, even in the USA
and the UK there are a number of studies that
emphasise the importance of Science, Technology,
English and Maths (STEM) skills. According to the
OCED (2014) the USA has a severe shortage of
STEM skills.18 In the UK a recent survey conducted
by the Confederation of British Industry of 294
firms, employing 1.24 million workers, found that
39 per cent were struggling to recruit workers
16 \ Mapping Sector Skills Development across the Commonwealth

with STEM skills.19 The issue of developing levels of an NQF need to be built around nationally
quality STEM skills is an equally important issue in agreed qualifications standards. Industry sector
developing countries bodies usually take a lead role in this work, but in
many developing countries this does not occur.
Groups of employers in strategic economic
sectors are committed to developing skills. One Synergies are achieved between strategies for
of the key conditions identified by Ashton (2006) economic growth and skills development. TVET
for high skills development is the involvement and cannot create jobs by itself and TVET graduates
active participation of the private employment cannot automatically obtain a job when they have
sector and professional bodies. In the context of successfully completed their learning. The situation
developing countries it may also be necessary of the performance of the macro-economy
to involve community groups to reflect the and the effectiveness of active labour market
interests of the informal sector. The participation policies, along with local economic development
of employers will help to ensure that relevance is initiatives, play a key part in generating growth and
achieved through the content of skills programmes, supporting employment.
enabling the learner to acquire skills that are
Any strategy that supports economic development
useful for employment. Similarly, it will also ensure
through increased investment (in hotels, factories,
that learning reaches an acquired standard that
warehouses, mines, roads, etc.) should ensure
is recognised by employers within that country.
that attempts are being made by government
For this reason, employers need to be engaged
and partners to develop the appropriate skills.
at a national, sector and institutional level in the
Only through anticipating such skills is it possible
development of policy and skills planning (setting
to prevent the occurrence of skills shortages, as
skills targets for specific occupations); in the design
well as to ensure that TVET graduates are more
of standards and qualifications; in the verification
likely to obtain employment in identified areas of
of curriculum plans; in the design of assessment
local demand.
instruments, policies and procedures for assessing
learners; and in the governance and management At the national level governments should also
of TVET institutions. attempt to adopt a more strategic approach to
skills development. This can be achieved through
Strong commitment from government at all
ensuring that synergies are achieved between
levels to the process of skills formation. Another
trade and investment strategies and those for skills
key feature of countries that have followed a high-
development at the national, as well sectoral, levels.
skill path to development is the commitment of
government at all levels to the process of skills
formation. This commitment must be based on
more than superficial rhetoric. Unfortunately, one
of the criticisms of governments in developing
countries is the failure to implement national- or
sector-level skills plans. There are many examples
of complex skills plans with ambitious goals, but
they are never implemented owing to a lack of funds
or coordination between different levels of the
government bureaucracy.
The issue of government funding for TVET is crucial
for longer term sustainability, especially in middle-
income or developing countries. The private sector
can have a contributory role, but government
support is required to support the high capital costs
associated with the provision and maintenance of
industrial machinery and industry relevant tools.
There is also a need for the government to regulate
skills development in the workplace. Qualifications
to provide knowledge, skills and competence at all
 What Does the Literature Reveal about Sector-Based Approaches to Skills Development? \ 17

4. What Does the Literature

Reveal about Sector-
Based Approaches to Skills
Development?
4.1 Introduction in the same or similar forms of productive
activities or services. Normally, economies are
There is a growing literature on how countries
divided into four sectors. The primary sector
approach skills development at the sector level.
involves the extraction and harvesting of natural
Much of the early research grew out of the
products from the earth (e.g. agriculture, mining
experience of developed economies. More recently,
and forestry). The secondary sector consists of
research has been conducted on middle-income
processing, manufacturing and construction.
countries’ experiences of sector skills development.
The tertiary sector provides services, such as
At the heart of this work is an attempt to analyse
retail, entertainment and financial services. Finally,
the most appropriate sector-based mechanisms
the quaternary sector is made up of intellectual
through which to forge links between the supply and
pursuits, such as education.20
demand for skills, including how employers can drive
this process. Through conducting analyses using the sector
lens it is easier to understand the characteristics
The interest in sector-based approaches to
of sectors than could occur at the national level.
skills development results from the collapse in
However, the analysis of the economy by four
manpower planning and the move towards more
sectors is very broad and cannot help to explain
market-oriented approaches to skills development.
the specific details or skill needs that are required
This section investigates the background to these
within each of the individual sectors. The ILO
trends and focuses on the following questions:
provide a more detailed breakdown of sectors
• What is a sector-based approach to skills into 18 standard industrial classifications.21 This is
development? taken a stage further by Eurostat, who use 27 of
the International Standard Industrial Classifications
• What are the benefits to be derived from
for policy purposes.22 As mentioned previously, this
adopting such an approach?
is often achieved through an industry partnership
• What are the functions performed by SSCs? or SSC
• What are the conditions for the effective The sector-based approach to skills developments
operation of SSCs? attempts to ensure that an alignment can occur
between the supply and demand for skills. The
• What are the limitations of a sector-
closer the degree of an alignment, the more likely
based approach?
a TVET graduate is to receive relevant training
and enter the labour market to obtain productive
4.2 What is a sector-based employment. Given the resource constraints in
approach to skills most countries there is no point in training people
development? for jobs that do not exist. Once again, the sector-
based approach helps to ensure that a closer
Before outlining what is meant by a sector-based
alignment is achieved than could occur at the
approach to skills development, it is necessary to
national level.
define what an economic sector is. An economic
sector comprises enterprises and groups of
workers in similar occupations who are engaged
18 \ Mapping Sector Skills Development across the Commonwealth
The demand for skills is a derived demand and
is determined by production activities and
the services delivered by enterprises. Those
enterprises or organisations operating within
the same sector are likely to share similar
characteristics, especially around their production
strategies, exposure to overseas markets, import
penetration and the types of workers that they are
likely to employ. Understanding such characteristics
at a sector level can help to provide an indication
of the type of skills that should be produced by the
TVET system (Lempinen 2013).
In most countries, especially developing ones,
there is a need for the government to facilitate
an improved match between the supply and
demand for skills at the sector level. This will not
occur if left to the market. Normally, some form
of institutional structure is required to help ensure
that such a match is likely to happen. As mentioned
previously, this is often achieved through an
industry partnership or SSC. Typically, three
different types of partners support the operation
of these structures. The first is the government,
which normally has a facilitating role in helping
to bring together the private sector and TVET
partners, as well as in establishing the institutional
arrangements for the sector skill body. The second
partner is the employers who, with other partners,
need to take a key role in driving the sector-based
approach. Finally, there are the TVET institutions,
enterprises and other providers who actually deliver
the skills.
The composition, structure and functions of
the SSCs will vary from country to country and
be determined by historical circumstances, the
experience of partners working together and
the level of development, including the type of
enterprises that operate in that country. This
sector-based approach is nothing new. Historically,
firms in western and northern Europe have been
organised around specific sectors. Common
examples can be found in Germany, where the
artisans and merchants controlled trades within a
particular sector.23 Similarly, within the context of
the UK, craft trades were structured around the
following sectors: manufacturing, construction, gas
and electricity.
The most well-known examples of SSCs can be
found in Anglo-Saxon countries. SSCs originated in
the 1950s in the UK and involved Industry Training
Boards (ITBs), which supported manpower planning.
Later, the ITB approach was used in different forms
by governments in South Africa, Kenya, Australia
and Antigua and Barbuda. At the heart of the ITB
approach was a need by government to plan their
economies’ manpower requirements and to ensure
that the education systems produced the right type
and quantity and quality of skills required by national
plans. In some instances, the ITB became involved
in regulating labour markets and directing workers
into specific jobs in targeted economic sectors.
The ITB approach used by many countries had to
be modified following the collapse of manpower
planning and the move towards market-based
mechanisms. Most of the ITBs have now changed
their names to SSCs and in the majority of
countries, including those in the Commonwealth,
employers are starting to play a significant part
in driving the skills agenda. Examples include: the
SSCs in the UK, the Sector Education and Training
Authority (SETAs) in South Africa and the Industry
Sector Councils (ISCs) in Australia. Within these
structures employers are supposed to play a key
part in articulating their needs, identifying how they
can be met and supporting their actual delivery.
However, as this study reveals, the degree to which
employers actually drive these processes in some
Commonwealth countries is questionable.
There are a number of different SSC approaches
used by countries to support skills development.
Nevertheless, they do share a number of similar
characteristics. They tend to be permanent
structures and are often supported by legislation
(Lempinen 2013). The legislation for these
structures defines the composition of the board
and their respective functions, as well as addressing
issues related to funding.
There are also initiatives to establish transnational
bodies for sector skills development. The
most well known are the proposals to establish
European-level SSCs. This initiative is related
to the establishment of a common European
Qualifications Framework in the past decade.
The planned transnational bodies would provide a
platform to support the exchange of knowledge
between national-level SSCs or similar structures
across Europe. The European Commission (EC)
would facilitate this process through funding and
technical assistance. Currently, this process has
involved a number of feasibility studies in order to
identify those sectors in which these transnational
 What Does the Literature Reveal about Sector-Based Approaches to Skills Development? \ 19
councils should be established. A decision is
expected soon on the proposed structures and
their specific functions.24
4.3 What are the benefits
of adopting a sector-
based approach to skills
development?
The benefits of the sector-based approach were
touched upon in sections 1 and 2.. In order for the
TVET system to meet the needs of enterprises
and learners it will be important to understand
the dynamics of how a sector operates and
the corresponding impact on the demand for
skills. This knowledge can be obtained only
through working with employers in a sector and
understanding the sector’s dynamics. Employers
and partners working in the sector have a much
better insight and awareness of their needs than
would occur at the national level. Adopting such
an approach can provide the basis for identifying
future needs and implementing more strategic
interventions, as well as developing competencies
and qualifications that have an identified demand at
the sector level.
There are successful examples of initiatives at a
national level that have achieved positive outcomes
for skills development, but they are more likely
to occur at the sector level. Most of the current
evidence is from research undertaken on the
sector-based approaches used in developed
economies. A recent study supported by CEDEFOP
(2012), for instance, investigated the benefits to be
derived from training at the sector level in a number
of European countries. Overall, the study found that
enterprises in sectors in which skills development
is firmly rooted in human resource development
practices can achieve much higher productivity
gains than those in which it is not. The study also
found that training within sectors has a high impact
on job satisfaction when accompanied by a bundle
of human resource practice. It is questionable
whether such findings are directly applicable
across sectors in developing countries, especially
where the majority of enterprises operate in low-
skill sectors and do not use high-performance
practices.
There are no significant studies that outline the
benefits to developing countries of adopting a
sector-based approach to skills development.
In middle-income, and, to a lesser extent, low-
income countries, employers are largely organised
into sectors through their sector organisations
at regional and national levels (especially for well-
established industries at the primary and secondary
sector industries, i.e. extractive and manufacturing
industries). Therefore, the sector-based approach
should build on institutional structures that
already exist and allow stakeholders within these
sectors to also consider the importance of
ensuring the availability of skills. This would allow
organisations of employers and stakeholders
in certain sectors primarily to address the
development of qualifications based on identified
needs and improved chances for young people to
obtain employment.
4.4 What specific functions are
performed by Sector Skills
Councils?
The preceding sections highlighted the importance
of institutional structures for the SSCs and the
possible benefits to be derived from following such
an approach. The next important question is what
functions are typically carried out by SSCs? From a
review of the relevant literature on this subject the
SSC are expected to perform the following:
• Identify skill needs and undertake labour
market analysis: One of the key functions
of SSCs is to identify the changes that are
occurring within their sectors and to analyse
how this is impacting on the demand for skills,
particularly in terms of the occupations that
are in high demand.
• Develop sector skill strategies: In order
to help match the supply and demand for
skills, SSCs need to develop sector skill
strategies. This involves using intelligence on
sector demand and identifying the degree
to which supply is responding accordingly.
This analysis provides the basis for a strategy
and implementation plan that should be driven
by employers.
• Support the development of occupational
standards and learning material: Another key
function of the SSC is to develop occupational
standards. This is achieved through working
with groups of employers in the sector or
professional groups to develop new standards
or to upgrade existing standards.
20 \ Mapping Sector Skills Development across the Commonwealth
• Provide initial training of young people
and skills upgrading for existing workers:
SSCs in certain contexts will support the
training of young people, normally through an
apprenticeship or a traineeship. Some SSCs
also facilitate the continual and professional
development of those already in employment.
• Fund skills development: The SSCs can
also play an active part in funding skills
development in their sector (see levy section
4.5 below).
• Support the formation of PPPs: Most of
the above activities involve some form of
partnerships and, in theory, the SSCs can
provide the basis for establishing effective
PPPs, providing that the private sector plays
a key part in driving the process. This can help
to ensure that skills development becomes
demand-led and responsive to the changing
needs of the labour market.
4.5 What are the conditions for
effective Sector Skills Councils?
The literature on conditions for effective SSCs
is scarce and tends to focus on developed or
industrialised countries. The most useful work
includes research undertaken by the City and Guilds
(2013) organisation on how different countries
approach SSCs, and by Kraak (2013), who identified
ingredients for effective SSC systems, as well as
the study conducted by the European Training
Foundation (ETF) on the success factors for SSCs
(Lempinen 2013). Reference to these three pieces
of work and other studies provides the basis for
identifying the conditions for effective operations
of SSCs, especially in developing countries. The
following factors were identified:
The importance of employer engagement
The literature identifies employer engagement as
one of the key factors for effective SSCs. There is
no doubt that in a demand-led system, employers
are in the best position to determine solutions.
Wilson et al. (2013) state that one of the success
pre-conditions for SSCs is that stakeholders,
including SMEs, make the commitment to working
together within SSCs. The ownership of work by the
SSC should lie with the stakeholders representing
the sector and not the public authorities.
Unfortunately, SSCs are often government-led
and this partly explains why many SSCs experience
implementation difficulties and are criticised for
being supply-led.
The ownership and commitment to the sector by
employers and stakeholders must be based on
a true partnership and not one defined on paper
or in a strategy document. Unless this occurs the
SSC is unlikely to achieve positive outcomes. Lack
of employer commitment can undermine the
legitimacy of the SSCs and reduce their longer
term effectiveness. There is no doubt about
the importance of employer engagement, but
there is an equally important issue of what type
of engagement is most suitable for developing
countries. Reference to work undertaken by
Raddon and Sung (2006) helps to address
this issue by identifying the different types of
employer engagement:
• Employer involvement: This model is based
on the voluntary engagement by employers
in the work of an SSC. Under this approach,
employers do not own the SSC. Instead
the control of the SSC lies in the hands of
civil servants and many of the decisions are
driven by policies developed by national
governments. At best, employer involvement
is passive and limited to confirming standards.
An example of the employer involvement
model is the UK.
• The ‘employer-owned’ typology: Employers
dominate this model and are primarily
responsible for supporting the structures and
the provision of funding. The key objective
of this approach is to meet the skill needs of
employers in that sector. Examples of the
employer-level approach can be found in
developing countries, and in particular in the
minerals sectors where employers require
skills that meet international standards.
• The ‘employer-modelled’ approach. This
provides another variety of the employer
approach. Under this model the state
facilitates a blueprint for best practice which
is designed to meet employers’ needs.
When this standard has been achieved by
lead employers in the sector it is rolled out
to others. Employers have the lead role in
driving the process, and employers learn
from best practice and also contribute to a
skills development fund. The best example
 What Does the Literature Reveal about Sector-Based Approaches to Skills Development? \ 21

of this approach is Singapore where the • The third factor, and one that applies to
government’s role is limited to steering post-conflict and former centrally planned
employers into new areas of sectoral growth. economies, is the lack of a culture of
co-operation between organisations. In many
• Employer-driven models: The final model
developing countries public TVET institutions
involves a PPP under which the public TVET
are distrustful of the private sector and vice
system works with employers. Employers work
versa. Such a culture can make it difficult
with SSCs to determine skills needs within
for SSCs to perform their roles of bringing
their sector and this is fed into colleges to
together the actors necessary for improving
develop the curriculum based on identified
the match between the supply and demand
standards. This approach can ensure that
for skills.
a neat alignment is achieved between
employer’s requirements and the curricula The issues identified above illustrate the difficulties
delivered by the college. This approach faced by SSCs trying to forge links with employers
represents the vision for the SETAs in in developing countries. These factors also help to
South Africa. explain why it is difficult to find examples of best
practice for employer engagement within the TVET
The typology of different types of employer
system of developing countries. However, it is also
engagement is useful for understanding the
important to point out that effective engagement
approaches that are suitable in particular contexts.
with employers is possible in developing countries,
However, in the context of developing countries
provided that appropriate incentives are in place.
there are a number of other immediate concerns
One of these is adequate funding for SSCs and also
that can impact on the nature and extent of
relates to how these funds are channelled.
employers’ engagement. The linking of employers
with the TVET sector and SSCs is often made more The importance of adequate funding
problematic as a result of the following issues:
Resources are required for SCCs to function
• The most important influence on the degree
effectively. These funds are the glue that binds
of employer engagement is a country’s level
the skills development system together, enabling
of development. Clearly, those countries
the SSCs to support their operational costs and
with a low industrial base have only a small
to facilitate engagement with other parts of the
number of enterprises and most of these do
TVET system. Funding will function as an incentive
not have the capacity, time or resources to
for employer engagement and provide a means
engage with public providers for the purposes
of supporting the actual delivery of skills. There
of training. Even in developed economies it
are a number of important funding issues that can
is difficult to encourage engagement among
impact on SSCs, especially around how funds are
SMEs. This is much more problematic in
collected, managed and disbursed.
developing countries where employers are
sole traders and in many cases operate in the One of the ways in which funds can be collected
informal sector. at the sector level is through the use of a levy
grant system. Normally, levy grants work on the
• The second factor, closely related to the
principle that enterprises pay a tax on their payroll of
one above, is the type of economic sectors
between 0.5 per cent and 3 per cent. Subsequently,
that dominate developing countries. In most
the employer can claim back a certain proportion
developing countries the sectors are likely to
of these funds, provided that they undertake
be low-skilled sectors, such as agriculture and
certain types of training. The objective of the levy
the wholesale retail sector. Many of the firms
is to encourage enterprises to engage in skills
operating in these sectors compete on price
development within targeted sectors. Normally,
and not quality. Under such circumstances
countries abandon their levy once they have
there are limited incentives for employers
achieved a certain level of economic development
to become involved in training, as they are
and enterprises are committed to training and
interested only in immediate concerns,
development. Examples of countries that have
as opposed to the longer term benefits
abandoned their skills levy include the UK and
associated with skills development.
Australia.
22 \ Mapping Sector Skills Development across the Commonwealth

The channelling of funds using the levy through
SSCs is an effective way of ensuring that they, along
with their partners, have a voice in the country’s skill
development system. Unless SSCs have a continual
flow of funds they are likely to become just advisory
bodies and in most instances have limited influence
on skill outcomes. When funds flow through an SSC
they can influence provision and have a much more
significant impact on skill outcomes.
4.6 Limitations of the sector-based
approach
This section has focused on providing an improved
understanding of the sector-based approach and
the conditions necessary for the effective operation
of SSCs. However, it is also worth outlining the
possible limitations of a sector-based approach, as
highlighted recently by the EFT:

Clear mandate and adequate The first general problem of focusing upon a single
sector is that only a partial view of the labour market
support structures
needs for training will be produced, where as a broader
It will be important that the SSCs have a clear perspective is needed for many purposes, such as
mandate, that appropriate management structures the development of the education system. Secondly,
are in place and that effective links are made with top down initiatives do not usually motivate private
other parts of the TVET system. Ashton (2006) sectors actors into participation in the formal sectors
refers to issues and comments that ‘SSCs must be or other forms of cooperation.
fit for purpose’. In practical terms this means that (Lempinen 2013: 6)
the SSC must have the capacity to understand and
The situation outlined above can be made worse
engage with their sector and also have adequate
if certain SSCs have a number of large enterprises
funds to carry out their mandate. In the context
that dominate the sector and are able to translate
of the UK, the mandate of the SSCs is very wide
their needs into priorities. In such a situation, sector
and lack of funds is one of the contributory factors
priorities could be given more importance than
for their inadequate past performance. It will
nationally based ones.
be important for the SSCs to have transparent
management and governance structures that
involve employers. The failure to implement such
structures will result in supply-led systems in which
decisions are made by civil servants.
In developing countries SSCs should establish
formal relationships with other organisations in the
TVET system. Procedures should be established
to guide TVET agencies and to enable them to
consult directly with SSCs about skills development
at crucial points in the decision-making process
(Lempinen 2013). Without such formalised
structures in place such engagement with other
parts of the TVET system is not likely to occur.
Other structures within the TVET systems must
also perform their functions effectively. According
to Kraak (2013), TVET qualifications must have
real labour market value for SSCs to carry out their
functions effectively. This means that vocational
qualifications must facilitate labour market access
for learners. Unfortunately, in most developing
countries the vocational route is seen as second
best and to be followed by a learner only if they
cannot get into higher education.
 Analysis of Approaches to Sector Skills Development Across the Commonwealth \ 23

5. Analysis of Approaches to
Sector Skills Development
Across the Commonwealth
5.1 Analysis of how a selection of 5.1.2 What approaches are used for
African countries approach sector skills development in Africa?
The sector-based approach plays a key role in
Sector Skills Development
all countries’ approaches to skills development,
5.1.1 Introduction aside from Mozambique. Three of the countries
have a British colonial past in common, which in
The countries chosen for this analysis are
part explains why they have established industrial
Botswana, Kenya, South Africa and Mozambique.
committees or SSCs of the type that occur in the
The size of the formal sector is relatively small in
UK. In South Africa these structures are called
these countries, with only South Africa exhibiting
SETAs and in Botswana the term Human Resource
any form of advanced industrial base. The
Development Committees (HRDCs) is used. In
economies of Botswana, Kenya and Mozambique
Kenya the situation is slightly more complex, with
are dependent on a small number of sectors for
training boards that operate as independent bodies.
their development, with the majority of people
Until recently, Kenya also had industrial committees
working or earning a living in agriculture or
that operated under the former Directorate
services.25 A key issue facing the four countries is
of Industrial Training (DIT). In Mozambique the
the large number of people coming onto the labour
government is proposing to establish SSCs with
market and the lack of formal sector employment
the support of employers.
opportunities. Each country also faces severe
skills shortages, with employers in key sectors The institutional setting for sector skills
complaining that they are unable to find suitable development is similar in South Africa and
workers. Botswana, and to a lesser extent, in Mozambique.
In these three countries there has been an attempt
The sector-based approach to skills development
to establish the sector-based structures under a
takes different forms in the four countries. For
national council or an advisory body. Within South
instance, South Africa has arguably one of the
Africa the SETAs were initially established as a
most sophisticated sector-based approaches
National Skills Authority (NSA) and in Botswana
to skills development in the world. Examples of
under the Human Resource Advisory Council
innovative approaches to planning for sector skills
(HRDAC). In both countries these structures are
development can be found in Botswana, and Kenya
in the process of reform, with the HRDAC being
provides some interesting lessons on funding
changed into a HRD Council, with similar reforms
industrial skills development. Mozambique has
occurring in South Africa (with the name of new
experienced difficulties establishing even basic
structures yet to be determined). These changes
structures for sector skills development. Table 5.1
could enable the sector-based bodies to play a
provides an overview of each country, including
more prominent part in influencing the direction
the labour market context, issues facing skills
of policy and the process of skills development,
development, the structures and functions of SSCs
as opposed to being concerned only with
and the roles of employers and PPPs, as well as their
advisory activities.
benefits/limitations. Specific issues surrounding
sector skills development in each of these countries The institutional structures for sector bodies in
is discussed in more depth below. Kenya are different. Under the former DIT the
industrial committees in sectors had the power
to raise funds for training in their own sector.
In practice, this meant the committees could
24 \ Mapping Sector Skills Development across the Commonwealth
determine how funds were collected and dispersed
from enterprises in their sector. In contrast, the
current training boards in Kenya also operate as
autonomous bodies with boards of directors and
some have their own legislation. An example of
such a board can be found in the tourism sector
where boards are able to collect and use their own
funds for supporting skills development in the
sector. This is called the Catering and Tourism
Development Levy Trust (CTDLT).
The current CTDLT strategy in Kenya involves an
independent board of directors determining the
nature of priorities. A strategic plan is developed
and the actual delivery of training occurs through
the Kenya Utali College. This has gained a
reputation as one of the best catering and tourism
training institutions in Africa. SME representatives
sit on the board of the CLDLT and have a key role in
decision-making processes.
The SSCs in Mozambique are still in the planning
stages and it appears that they will follow a
similar structure to that used in South Africa.
The proposed SSCs will report to a board under a
new centralised governance structure called the
National Authority for Vocational Education (ANEP).
The SSCs will develop individual strategies that feed
into a combined national strategy (similar to South
Africa and Botswana).
The functions of the different sector skills structure
are similar in the four countries. In Botswana,
South Africa and Mozambique the emphasis is on
achieving a better match between the supply and
demand for skills. This is similar in Kenya, but each
country uses a slightly different strategy.
One of the most innovative approaches to sector
planning is used in Botswana. The HDR council,
along with the HDR committees, attempts
to manage supply and demand using two
methods. At the national level the government
investment priorities form the boundaries for skills
development and provide guidance regarding
the sector skills to be developed. This is seen at
the macro-level in their National Development
Plan, in which emphasis is given to diversifying the
economic base and moving towards other sectors.
Within the national HRD strategy emphasis is given
to supporting skills development in these priority
sectors. Finally, the HRD sector plans identify
the priority skills to be developed. This joined-up
thinking provides a more strategic approach to
linking macro priorities to the type of skills being
developed by providers and in the workplace.
In South Africa the SETAs develop five-year plans
that are supposed to identify sector skill priorities
and feed into the national skills strategy. These five-
year plans are supposed to reflect what the sector
priorities are, including skills related to industrial
development and changing demand within the
workplace. In practice many SETAs lack the capacity
or knowledge to determine such industrial needs.
This has prevented many SETAs from addressing
their true needs, including future strategic demands
in their sector.
5.1.3 What functions are carried out by
the sector skills structures?
As outlined previously, most of the sector skill
structures in Botswana, Kenya, South Africa and
Mozambique are concerned with matching the
supply and demand for skills. This is achieved
through the sector bodies identifying skill
requirements in their sector and developing plans
for the implementation of training. The key for
ensuring that the plans are effectively implemented
is the availability of funds and their integration within
national policy frameworks.
In South Africa the SETAs develop Sector Skills
Plans for their sector for a period of 5 years. Each
year the SETAs are required to provide an annual
update of their plans and ensure alignment with
any major skill changes occurring in their sector.
These updates are intended to provide signals to
providers and learners about the current skills in
demand, as well as the skills being oversupplied.
SETAs also develop learnerships for their sectors,
which are a form of apprenticeship. There were two
types of learnerships, one for young people leaving
the formal education system and one for those who
are unemployed.26 The SETAs work with employers
and providers in their sector to develop and deliver
these learnerships.
The SETAs, along with the government and
stakeholders, are able to influence which skills are
developed through the collection and disbursement
of a levy. Under this system if a company’s payroll
exceeds R500,000 per annum, then it must register
with the South African Revenue Services (SARS)
and pay a 1 per cent levy of their payroll to support
training in their sector. The SETAs must pay a grant
to employers in their sector who appoint a Skills
 Analysis of Approaches to Sector Skills Development Across the Commonwealth \ 25
Development Facilitator for employee training. An
employer can also get back 50 per cent or more
of the levies they paid to SARS from the SETA,
provided that they undertake specified training
and develop their own employees’ skills. Recent
reforms suggest that SETAS will shift their focus
onto identifying skill needs, facilitating links between
employers and providers and supporting providers
to develop curricula and training programmes.
Under the former DIT in Kenya the sector
committees developed their own plans. The
sectors were also responsible for determining how
their funds were collected and used. Reference to
the Plantation, Agricultural and Allied Industries
Committee can illustrate this point. This committee
stipulated that employers in the sector should pay
a levy at the rate of four Kenyan shillings for every
metric ton of products produced by an employer
in a month. Other committees would determine
the levy based on the numbers employed or
the turnover in their sector. The benefit of
such an approach is that it tailored the funding
mechanism to the characteristics of the sector.
Subsequently, employers could apply for funds to
train at a DIT industry training institution or for an
overseas scholarship.
In Botswana the HRD committees also influence
the supply and demand of skills using a different
mechanism. The HRD sector plans are produced in
conjunction with government national development
plans, as well as education development plans.
In theory this means that the recommendations
from the HRD sector plans provide an input into
education and macro-economic plans. Currently,
the country is in the process of undertaking this
planning and it will take time to see if an effective
alignment is achieved between the different levels
of planning.
In the case of Mozambique there is no available
evidence on how the SSCs will undertake their
tasks. Provided that they have capacity and funds to
support operational costs, it seems likely that they
will function more as advisory bodies.
5.1.4 What roles do employers and
public–private partnerships have?
The roles of PPPs are important for all four
countries. Within these four countries the relevant
government agencies work with employers to
perform two key roles. The first role, which is
important if carried out effectively, is to have an
input into the policy process. The evidence from
Botswana, as well as South Africa, illustrates that
employers work with the relevant public sector
bodies to identify skill requirements and support the
development of sector-based plans.
The mechanism for involving employers in
Botswana is through the sector committees.
These committees are chaired by key employers in
the sector and also include representatives from
employees, stakeholders and those in the informal
sector. Together the different Sector Committees
help to identify skill priorities for their sector and
also sign off on the development of any sector
plans. A similar approach is used in South Africa in
that employers are represented on the governing
structures of SETAs and have to sign off on any
sector skills plan.
The second role for employers is apparent in the
funding and delivery of skills, especially in the
context of South Africa and, to a lesser extent,
Botswana and Kenya. In all countries employers are
involved in the actual funding of training through
a levy. This can provide the basis for employers to
become involved in training, especially if they are
offered the opportunity to claim back funds at the
sector level (as occurs in South Africa). However,
the evidence from South Africa showed that
significant number of employers just viewed the
levy as a form of tax and preferred not to participate
in skills development. This evidence suggests that
the appropriate mechanism is not in place in South
Africa and, as a consequence, the PPP does not
operate effectively as it could do.
For Mozambique, the first attempt to involve
employers in sector skills development involved
a structure called the Comissão Executiva da
Reforma da Educação Profissional (COREP).
Under this arrangement, instead of independently
choosing representatives from the private sector
that would champion the views of that sector,
the government selected employers that would
conform with their views. This approach had limited
legitimacy and was used to endorse government-
driven initiatives. In other words, the private
sector had only a passive role in decision-making
processes which resulted in a supply-led approach.
In another instance, the government attempted to
involve employers in TVET through COREP. This
new body was created by a government decree
in August 2005 and was supposed to represent
a more independent approach to involving
26 \ Mapping Sector Skills Development across the Commonwealth

the private sector. However, this was also not committed to this process. However, difficulties
effective owing to limited resources and a lack of were experienced with the actual implementation
institutional support. of this approach. It is clear that many of the
assumptions of the South African approach,
The best example of employer engagement in
especially around linking industrial policy to skills
the selected case studies in Africa can be found
development at the sector level, were not possible
in the CTDLT in Kenya. The reason for its success
with the current institutional capacity. Another
was the autonomy of the board and the fact that
shortcoming was the separation between parts
employers, including SME representatives, were
of the education and skills development systems.
appointed to the board and supported decisions
This prevented skills development being related
on how resources were collected and dispersed.
to and building upon the underpinning theoretical
This helped put employers in the driving seat and
knowledge. In addition, the PPP arrangements
ensured their commitment to skills development in
were not as effective as they could have been.
the sector.
The institutional structures were in place for
In each of the countries identified above the engagement, but the mechanisms did not provide
government is the main driver of skills development adequate incentives. Indeed, the current skills
at the sector level, and attempts have been made to levy grant system was viewed as a tax by many
involve employers to varying degrees. The provision employers (instead of an incentive to train).
of funds can play an important part in determining Hopefully, the recent reforms will go some way
whether sector bodies have a real impact and towards addressing these constraints.
the degree to which employers are engaged in
Positive lessons can be gained from the Kenyan
the process of skills development. Nevertheless,
experience. In theory, the industry levy based on a
the evidence from South Africa highlights that
sector’s characteristics also appears to be a good
the use of a levy was not an automatic guarantee
model for sustainability because it is specific to a
that employers would participate in the process
particular sector. On a practical level the approach
of skills development. This clearly suggests that
failed because resources were used to support
funding alone cannot assure employer buy-in. The
administration and training that did not respond
example of Kenya also pointed to the importance of
to industry needs, especially those of SMEs. In
putting employers in the driving seat and ensuring
contrast the CTDLT was able to operate more
that they can contribute to decisions. Unless this
effectively and achieve employer support. This was
occurs employers are unlikely to be interested in
accomplished owing to governance structures that
participating in sector skills development where
involved SMEs, as well as the careful way in which
decisions are driven by the government.
the levy was administered. This demonstrates that
5.1.5 What are the benefits and with the appropriate structures and mechanisms
in place, the partnership between the public and
limitations of the sector-based
private sector can be an effective vehicle for
approaches in Africa?
supporting skills development at the sector level.
On a positive note, the South African approach
Finally, the lessons from Botswana illustrate how the
represents an idealised model for sector skills
sector-based approach to skills development can
development. In theory this approach has all
have a key role in supporting industrial restructuring.
the components for a successful approach.
The use of skills as a tool for industrial development
An excellent framework is in place for planning,
is important for helping a country to diversify its
sufficient funds are available for encouraging
industrial base and to tackle skills gaps.
employer engagement and the government is
Country Socio-economic development
Botswana • Middle-income country dependent on
export of diamonds
• 50% of the 2.1 million population under
24 years of age
• The country has embarked on a
diversification programme to support
tourism, health and agriculture
• A key issue is low productivity
Kenya • Lower-middle-income country
• Current growth rates of 5.4%, but
historically these have been very low
• 50% of the 44.4 million population are
under 24 years of age
• Unemployment rates are estimated to
be 34% for youth
• Key sectors are tourism, agriculture,
wholesale and retail, manufacturing,
business processing and outsourcing
Issues facing skills development
• Lack of perceived quality of skills
development by employers
• Very low levels of productivity and poor
work ethic
• Major challenge to move from a supply-
to a demand-led system
• Government has established an HRD
Council to improve links between the
supply and demand of skills
• The HRD Council also provides the
basis for improved representation of
employers and stakeholders
• Lack of access is a concern, with
800,000 young people entering the
labour market without education or
skills
• The quality of existing standards for
TVET appear to be low
• Large skills mismatches and industry
unable to find skilled personnel
• Responsibility for TVET rests with the
Ministry of Education, Science and
Technology (MOEST) and Ministry
of Labour and Human Resource
Development, and its operational
arm the National Industrial Training
Authority (NITA)
• One of the significant problems facing
the system is the continued separation
between TVET and industrial training
• Attempts are being made to develop a
unified system through the setting up of
a new national TVET authority
Structure and function of sector skills body
• HRD sector skill committees have been
established in eight priority sectors
• These are embryonic structures and
consist of a committee that meets
quarterly
• The key vehicles are HRD sector plans
• The plans focus on the skills
development that is required for the
priority sector over the short, medium
and longer term
• PPPs are more focused on planning
than delivery
• Extensive sector-based skills system
was established under the DIT
(precursor of NITA)
• 11 sector-based committees were
established under legislation to improve
industrial training
• The levy would be used to fund overseas
training and skills development by DIT
providers
• Other Ministries deliver their own skills
development at the sector level
• Normally the above is managed by an
independent board or parastatal
• One of the most successful examples
is the Tourism Board. This is funded
through a sector-based levy
• Successful structure and incentives are
in place for PPPs at the sector level
Lessons from sector skills development
• This is truly a bottom-up and top-down
approach to sector skills planning
• Sector HRD plans feed into national
development plans
• Government provides a facilitating role
for this sector-based approach
• There are close synergies between
priority sectors for economic
development and for skills development
• There is a lack of valid data to support
plans
• Lack of internal capacity means
that committees are dependent on
consultants
• The former sector skill levy
administered by the DIT provides an
effective means of linking the sectors
needs to sustainable funding
• Under the DIT, training was not geared
to SMEs owing to the way in which it was
administered
• For some sectors a considerable
amount of resources were used for
administration
• For the above reasons the sector-based
levy administered under the DIT was
disbanded
• The tourism levy trust, which operated
formerly under the Ministry of Tourism,
provided a cost-effective means by
which to administer skills development
• The effectiveness of the tourism
levy resulted from the governance
structures that involved SMEs, as well
Table 5.1 Sector bodies that support skills development in four African countries
as the careful way in which the levy was
collected and used
Analysis of Approaches to Sector Skills Development Across the Commonwealth \ 27
Country Socio-economic development
Mozambique • Low-income country
• Successful transition to a democratic
state
• Highest levels of GDP growth in Africa
• Priority sectors are tourism,
construction, transportation,
certain sectors of agriculture and
manufacturing
• Population of 23.43 million, with around
44% classified as youth
• Around 350,000 youth annually
enter the labour market looking for
employment
South Africa • South Africa is the largest middle-
income country in Africa
• The recent financial crisis has caused
unemployment levels to reach 5.2
million
• Certain research suggests that youth
unemployment may have reached levels
as high as 50%
• 60% of unemployed youth have not
completed secondary education or
have not worked in the past 5 years
• Significant skills mismatches exist
Issues facing skills development
• A number of surveys highlight that
employers are not satisfied with TVET
graduates
• Evidence shows that employers prefer to
recruit learners from schools, as opposed
to post-secondary TVET institutions
• The largest providers of TVET
programmes is the Ministry of Education
which covers pre-employment technical
education and junior, secondary high
school and senior secondary schools
• The Ministry of Labour through the
INEFD manages 16 employment and
training centres that focus on post-
secondary skills development
• Both ministries have attempted to
involve employers
• At best the private sector has only an
advisory role
• The end of apartheid saw a considerable
reform to the skills development system
• This process of reform was managed by
the Department of Labour and saw the
setting up of an NSA, SETAs and three
successive National Skills Development
Strategies and a series of sector skills
plans
• The Department of Education was
responsible for the TVET colleges (now
called Further Education and Training
Colleges)
• Recent reforms are attempting to
remove the distinction between
education and training. The
Department of Higher Education and
Training is now responsible for skills
development
Structure and function of sector skills body
• Mozambique only has a limited
experience of developing or
implementing sector-based
approaches
• In 2004 the government signed an
agreement with the largest employers
organisation to involve the private
sector in TVET issues
• A board was established to involve
employers in sector-based skills issues.
Unfortunately, no institutional structure
was established
• Proposals are being made to establish
a new peak body, called ANEP, who will
develop a TVET strategy based on new
sector skills committees. This has been
supported by legislation
• Responsibility for sector skills
development rests with SETAs. There
are 21 SETAs covering priority sectors
• The functions of SETAs are to
coordinate skills development in sectors
to ensure that an improved match is
achieved between supply and demand
through a sector skills development
strategy
• The SETAs are funded through a levy
on company payrolls, and companies
can claim back monies if they undertake
training
• SETAs’ functions are changing to focus
on identifying skills needs, facilitating
links between employers and providers
• Inadequate incentives exist for
partnership with the private sector
Lessons from sector skills development
• Despite strong policy statements from
the government and considerable
donor investment over the past decade,
there has been little visible concrete
action towards establishing a sector
skills planning approach for orientating
the TVET system towards a demand-
led approach
• The proposed ANEP board, along with
the SSC looks promising. This must be
accompanied by adequate resourcing
and improved capacity
• There is a need to ensure that the ANEP
and the SSCs have access to valid and
timely data
• Outside the government a number of
studies are taking place in the extractive
sector. It would appear that the private
sector might be organising this owing to
dissatisfaction with skills development
28 \ Mapping Sector Skills Development across the Commonwealth
supported by government
• The sector-based approach is very
comprehensive and represents a model
of best practice, but the results are not
very good
• The country continues to face severe
skill shortages
• The plan addresses current as opposed
to future skill requirements
• The planning process is too complex
• SETAs fail to spend their funds
• Many employers view the levy as a form
of tax
• There is a failure to develop links
between the skill development and
education systems
• Many have argued that the approach
used in South Africa is a state-
dominated and supply-led approach to
skills development
• The recent reforms for the SETAs should
help to address some of these criticisms
 Analysis of Approaches to Sector Skills Development Across the Commonwealth \ 29
5.2 Analysis of how a selection
of Asian countries approach
sector skills development
5.2.1 Introduction
Bangladesh and India share some similar
development characteristics and aspirations for
growth. The private sector’s demand for skills has
outstripped their supply in both countries, and
employers in priority sectors commonly complain
that they cannot find workers with suitable skills. In
response to these demands, the governments in
Bangladesh and India have embarked on extensive
reforms to their TVET systems. On the surface,
the reforms appear to be similar and sector skill
structures are envisaged to have a key role. Within
India the nature and extent of reforms are more
extensive, with employers playing a key part in
driving the agenda through their SSCs. In contrast,
in Bangladesh the government appears to drive
this approach and employers have more of an
advisory role in the recently established ISCs. These
case studies illustrate how different strategies for
PPPs can lead to different outcomes. Once again
a summary of the issues facing the two countries,
including those relating to skills development and
approaches to sector skills development, along
with their benefits/limitations are shown in Table 5.2
Specific details are discussed in more depth below.
5.2.2 What approaches are used for
sector skills development?
The institutional approach to sector skills
development is similar in the two countries, with
both establishing PPPs at the national and sector
levels. Bangladesh and India have embarked
on significant reform programmes for skills
development, involving the setting up of similar
structures and institutions. However, the approach
and strategies used in each country are radically
different and can in part explain why different
results are being experienced, especially in terms
of employer engagement and the number of
learners produced.
Within the TVET reform process in Bangladesh
a centralised structure known as the NSDC has
been established to improve the planning and
coordination of skills development. This comprises
36 representatives from government, the private
sector, trade unions and community organisations
and is chaired by the Prime Minister. It also oversees
the activities of the ISCs by holding them to account
for the accuracy of the data they collect and the
projections they make of future skills demand.
During the initial stages of reform in Bangladesh,
at least five ISCs were established during the
period 2010–12 (Agro food processing, leather
goods, IT, tourism and transport equipment),27
with at least another two having been established
more recently. These ISCs were established as
tripartite committees, involving representatives
from employers, workers and government. The
establishment and operation of the ISCs are
facilitated by the NSDC.
A similar PPP structure has been established
in India where the responsibility for sector skills
development rests directly with new institutional
structures called SSCs. The SSCs are relatively
young organisations, of which 27 have already been
established with operating licences and funding
for 10 years (another 4 are waiting approval).28
In contrast to the situation in Bangladesh, the
establishment of SSCs in India was not made legally
mandatory. Instead, the private sector is invited
to submit proposals to the NSDC for establishing
SSCs within a given economic sector which they
themselves define together with a business plan
that, upon its evaluation, is supported by financial
assistance from the central government.
The SSCs in India operate with a wider range of
powers and functions within a policy environment
that is shaped and influenced by two important
national government institutions, namely the
NSDC and the National Skills Development Agency
(NSDA). The NSDC is a non-profit government
(yet autonomous) agency within which the SSCs
and training providers interact, and whose main
purpose is to provide support and funding for public
and private training providers. The NSDA is a multi-
stakeholder agency which advises the government
on skills policy and coordinates and harmonises the
skill development efforts of the government and
the private sector to achieve targets outlined in
skills strategies.
The operating costs of the SSCs in India are
funded by the government through the NSDC.
The government provides funding through grants,
equity or loans to SSCs on the condition that
the sponsoring agency (i.e. the private sector
partners) must contribute 25 per cent of the total
operating costs.29
30 \ Mapping Sector Skills Development across the Commonwealth
There are significant differences between the
PPP approaches used in India and Bangladesh. In
India employer representatives are in the driving
seat and are responsible for implementation at
the sector level, including contributions to part
of the operational costs for skills development.
In Bangladesh, however, the state still controls
the processes associated with sector skills
development, with employers having only
minor roles.
5.2.3 What functions are carried out by
the sector skills structures?
In Bangladesh, the key functions of the ISCs are
to work with employers to identify the long- and
medium-term skills demand for their sector and
to identify priority occupations where training
is needed. The ISCs have also recommended
technical experts as participants on Standards and
Curriculum Development Committees (SCDCs)
which are given responsibility for new competency-
based (CBE) training courses that are being
aligned to a new National Technical and Vocational
Qualifications Framework (NTVQF). Two of the ISCs
have also established Centres of Excellence (CoEs)
which, even at this early stage, are organising job
training for industry.30
A recent presentation by a government agency,
the Bangladesh Technical Education Board (BTEB),
outlined some of the achievements of the ISCs in
Bangladesh, among the most important of which
are the following:
• 15 ISCs are now registered;31
• all ISCs have established technical working
committees to develop skills standards
and each has already completed three
standards each;
• the number of registered apprentices has
increased more than 30 times since 2011;
• 5 per cent of all government training providers
now offer flexible learning programmes and
100,000 people per year are being assessed
for their skills through recognition of prior
learning (RPL).
The functions of the SSCs in India can also be
gauged by reference to what they have achieved.
According to the NSDC, 17 of the SSCs have
produced more than 270 qualification packages
(QPs) and have accredited hundreds of training
providers.32 For instance, the Automobile SSC
(ASDC) claims to have accredited 504 providers
in total and trained 1.2 million trainees in just over
4 years, and the SSC for the retail sector claims
to have accredited 1,325 training providers and
trained more than 8 million trainees in only 3 years
of operation. A number of the SSCs have also taken
the initiative to set up their own academies or CoEs
for their industry.
Another function of the SSCs is to accredit
Assessment Centres. Some training providers
also function as assessment centres but in
cases in which students are being funded under
the government’s Skills Training Partnership
Programme, the funding guidelines state that the
assessment cannot be carried out by the training
provider, but only by an Assessment Centre
certified by the relevant SSC. For the 32 trades
developed by the Automotive SSC, it has accredited
5 Assessment Centres. In the case of the
Agriculture SSC, for its 15 training packages, it has
accredited 20 training providers and 4 Assessment
Centres. In addition, 4 of the SSCs (auto, IT, retail
and security) have been involved in a pilot project
for setting up a new NVEQF as part of which, new
vocational courses in these four sectors are being
introduced into Grade 11 and 12 across 40 high
schools in Haryana.33
Finally, many SSCs are presently in the process
of setting up labour market information systems
(LMISs) to assist in the planning and delivery of
training, identifying skills needs and preparing a
catalogue of skill types. To this end a donor project
supported by the European Union (EU) is helping to
develop a common framework for an LMIS across
all the SSCs. This project has used the Automotive
SSC as a pilot case study.
5.2.4 What are the roles of employers
and PPPs?
A slightly different strategy is used by each country
to form PPPs and engage employers.
In India, the evidence appears to suggest that the
government is attempting to ensure that within
their PPPs the private sector is driving the agenda
for skills development through its control of the
activities of SSCs. The SSCs have been given a wide
range of functions and powers including:
 Analysis of Approaches to Sector Skills Development Across the Commonwealth \ 31

• defining occupational standards and training certification) system. All these functions are still
packages for key occupations; carried out by the BTEB. In terms of these quality
assurance functions, the ISCs are essentially
• forecasting sector-wide skills demand and
functioning only as advisory bodies instead of being
identifying skills gaps;
directly responsible for quality assurance. Under
• developing sector-wide skills strategies and these circumstances there is a danger that the
plans; private sector could become quickly frustrated
with the ISCs and their limited mandate. Within the
• accrediting providers and assessors and
Bangladesh PPP model, there is a reluctance by the
assessment centres; providing support to
government to delegate power and responsibilities
providers in terms of new curricula, training of
for skills development to the private sector.
trainers and assessors.
The benefits of the SSCs in India lie in the way
However, in Bangladesh the government’s
employers are empowered to drive the agenda
approach to PPPs is slightly different. Employers
for skills development. For instance, the private
are encouraged to become more engaged in skills
sector, acting through the SSCs, has been given
development through the work of ISCs, but they are
effective control over quality assurance of the
not given control over certain key functions such as
TVET sector through three key interventions:
accreditation and assessment policy, which remain
setting standards, accrediting providers and
a responsibility of a few government agencies.
controlling the assessment of learners (through
However, employers can still identify the long- and
accrediting assessment centres). Under this
medium-term skills demand for their sector, identify
approach to PPPs it is the employers who are in
priority occupations in which training is needed and
control of the processes associated with skills
provide support for the development of standards
development (and not the government).
and curriculum development committees.
From the available information, the SSCs in India
5.2.5 What are the benefits and appear to have made considerable progress in
limitations of the sector-based a relatively short space of time. At this stage,
approaches in Bangladesh and India? although the scale of the reform is vast, meeting
annual targets appears to be on track. However,
The recent reforms for skills development in
the reform process is still relatively young and it is
Bangladesh are still only a few years old. The initial
still too early to evaluate the performance of the
signs are positive, indicating that the ISCs, with
SSCs. The following issues or challenges need to
the support of the private sector, are starting to
be considered:
make significant improvements in aligning course
provision to skills demand in the labour market • First, the governance of the skills system
as well as in increasing the numbers of students in India remains highly contested.
in training. The development of occupational Fragmentation of decision-making is still
skills standards, the increase in the number of evident at both a national level, where 17
apprenticeships, and the increase in the number ministries and departments are still involved
of people presenting themselves for RPL in skills development, and at a regional level,
assessments are three good indicators of private where a similar breadth of structures and
sector engagement. responsibilities exist. This fragmentation leads
to excessive bureaucracy, implementation
On the downside, the evidence from Bangladesh
delays, duplication of effort and wasted
demonstrates that the government is reluctant
public resources. Although a number of state
to let the private sector have a key role in driving
governments have established their own
quality assurance of the country’s skill development
coordination bodies for skills development
system. This is evident in a number of areas. First,
and vocational education programmes,3
the ISCs do not appear to have responsibility or
policy-making remains highly fractured with
capacity for developing training packages. Second,
parallel initiatives and duplication of effort not
the ISCs do not have powers/responsibilities for
uncommon. Inter-agency cooperation and
accrediting training providers. Third, the ISCs do
synergies will have to be facilitated.
not appear to have any direct role in the design
and administration of the skills assessment (and
32 \ Mapping Sector Skills Development across the Commonwealth
• Second, as noted by the Planning
Commission, the ‘sheer magnitude of scale’
of the reform poses serious challenges
to improving the quality and relevance of
education and training in India.4 Interventions
and investments are required to address
deficiencies in delivery and assessment
methods, curricula and resource materials
and infrastructure as well as the general
lack of participation of the private sector
and industry. Although SSCs have the
potential to clearly increase the relevance
of training delivered in the skill system, they
will take time to become established as lead
organisations and to complete development
of sector specific standards, assessment and
certification frameworks for their industries.
• Third, the capacity of the skills system to
respond to these challenges is severely
hampered by the looming shortage of
teachers and trainers. In fact, the NSDC in
India predicts that 12,000 trainers must be
trained annually for posts in Industrial Training
Institutes (ITIs) and Industrial Training Centres
(ITCs), with a further 27,000 required in other
vocational areas.6 Given that the current and
planned public sector capacity for training
of trainers is less than 5,000 places a year,
and that little additional capacity exists in the
private sector, the shortage of trainers is set
to develop into a critical constraint on the
supply of skills in the short term.7 There is
an urgent need to develop and implement a
national strategy to address this constraint.

Country Socio-economic development
Bangladesh • A low-income country
• A population of 156 million people,
with a labour force of 56 million
people
• An estimated 83% of people work in
the informal economy
• Low skill levels are constraining
business growth, with 25% of
vacancies existing in the garment
sector
India • Population size of 1.2 billion people
• GDP per capita is around USD$1,500
• In 2010, the Indian labour force
consisted of 761 million people and
is expected to rise to 869 million by
2020
• 94% of people work in the informal
economy
• Unemployment rates are around
10% for youth
• Youth unemployment levels
averaged 10% and only 2% of the
total workforce has participated
in some form of post-secondary
education and training
1: See: ‘Skills system in India: Its key issues’ (2016). Retrieved from http://www.skillingindia.com/thought-tree/articles/skills-system-in-india-its-key-issues?print=1
Issues facing skills development
• Only an estimated 0.4% of the
workforce have a vocational
qualification
• TVET qualifications do not have a
labour market value
• There is also no nationally consistent
approach to quality assurance,
and current qualifications are not
based on standards aligned with the
occupations or skill levels in industry
• The government has recently
established a TVET qualification
framework, HRD fund and a National
Skills Development Corporation to
coordinate skills development
• Skills development has been
fragmented with limited employer
engagement
• The country is in the process of
a significant reform, which will
consolidate and rationalise a
fragmented system and provide
a platform for improved employer
engagement
• The key structures for facilitating
this reform is the NSDC
• A skills strategy has been developed
and the vision is to train 500 million
people by 2022
• The government will establish 1,500
new skills development centres,
50,000 new skills development
centres, 11 new technical
universities and will expand the
number of vocational schools.
• A qualifications framework will be
established
Structure& function of Sector Skills
Body
• At least five ISCs were established
during the 2010–12 period and
at least another two have been
established more recently
• ISC are tripartite committees,
involving employers, workers and
government
• ISCs have helped to identify the
long- and medium-term skills
demand for their sectors, supported
SCDCs and established CoEs
• The SSCs are relatively young
organisations with operating
licenses and funding for 10 years
• There are now 27 SSCs in existence
(with 4 awaiting approval)
• Membership of an SSC is limited
to business and professional
associations as well as agents of
government
• The functions are clearly defined
and focus on: developing
qualification packages, accrediting
training providers to deliver
these qualification, accrediting
assessment centres and supporting
training centres and establishing
their own training centres.
• The operating costs of the SSCs are
largely funded by the government,
but the private sector must meet
25% of the costs
Lessons from sector skills development
• The ISCs are in an early stage of development
• Evidence on the early performance includes:
15 ISCs have established technical working
committees to develop skills standards, and the
number of registered apprentices has increased
more than 30 times since 2011
• However, the private sector is not driving this
process. For instance, the engagement of ISCs
with public sector training providers appears to
be mediated through a network of local boards at
state level which are dominated by government
representatives
• PPPs are predominantly led by the state which
could result in supply-led system in the future
• The SSCs are performing well on the all above
measures and 3.5 million people have been
trained and 1.3 million people placed in jobs
• Private sector is playing a key part in driving PPPs
through the SSCs and appropriate engagement
measures have been put in place
• NSDC have a key role in providing technical and
financial support to make sure partnerships
between industry and training providers actually
happen
• There are still a number of challenges:
• fragmentation of decision-making is still evident
at a national level, where 17 ministries and
departments are involved in skills development
• the ‘sheer magnitude of scale’ and ‘duplicated or
excessive bureaucracy’ are serious challenges to
improving the quality and relevance of education
and training in India1
• A final issue is the shortages of trainers
Table 5.2  Sector bodies that supports skills development in Bangladesh and India
Analysis of Approaches to Sector Skills Development Across the Commonwealth \ 33
34 \ Mapping Sector Skills Development across the Commonwealth
5.3 Analysis of how a selection
of industrialised countries
approach sector skills
development
5.3.1 Introduction
The sector-based approaches in the four countries
chosen for this analysis are very different, reflecting
their historical past and government strategies,
as well as their political commitment to skills and
industrial development. Within our selection of
industrialised economies, Singapore has achieved
successful growth facilitated by a mechanism that
links industrial production with the type of skills
produced. Another industrial economy chosen
for this analysis is the UK. The UK has one of the
longest histories of sector-based approaches to
skills development, offering lessons on what to do
and what not to do. The UK has been criticised for
having what could be regarded as a supply-driven
approach to sector skills development and one in
which strategies, funding and targets are driven
by the national government and civil servants.
The other two economies, Australia and Canada,
have federal systems and sector bodies play a
key part in skills development, but it has been
more pronounced in Canada than in Australia. The
SSC-based approach is used in Canada, and, to a
lesser extent Australia, as a vehicle for ensuring
that employers play a key part in influencing
the skills agenda. Once again an overview of
skills development approaches to sector skills
development, along with their limitation/benefits, is
presented in Table 5.3 and analysed below.
5.3.2 What approaches are used
for sector skills development in
industrialised economies?
The economies in the four countries considered
here face different developmental challenges and
their development paths have been shaped by
their past historical events and political priorities.
In all countries the sector-based approach has
been implemented to varying degrees and their
importance has been determined by government
strategies. Some of the countries have been more
successful at developing demand-led systems, with
sector bodies playing a significant part. However, in
other countries the sector-based approach has not
achieved the anticipated results owing to failings in
other parts of the skills development system.
The example of Singapore shows how a skills
development system has evolved in response to
the economic priorities defined over four phases
of development since independence (Kraak 2013).
An important feature of three development
phases has been the construction of curricula for
providers in alignment with the occupational skills
needs of industrial policy. Under this arrangement,
the Ministry of Trade would determine the
country’s manpower projections based on planned
investments, whereas the Economic Development
Board (EDB) set about establishing joint
government training centres which would meet the
skills needs of the multinational companies (MNCs)
(Sung 2006; Kraak 2013). Most of the emphasis
was geared towards meeting higher value-added
sectors at each phase of development.
During Singapore’s latest stage of development,
the scope of the relationship between the private
and public sectors in Singapore widened to include
new sectors and higher levels of skills training.
Under these changes the government realised that
it was necessary to formally establish SSCs. Over
the period 2005–10, 24 new Industry Skills and
Training Councils (ISTCs) were established. These
ISTCs comprised senior managers and technical/
professional representatives from the dominant
businesses in each sector, including local and
multinational businesses.
Until 2009 in the UK there was no industrial policy,
and sector skills structures started life in the
post-war period as structures called ITBs. These
ITBs were eventually disbanded in the 1980s when
the Thatcher government came to power. Under
Thatcher, emphasis was given to productivity and
improving the role of markets, as well as moving
away from centralised manpower planning and
government direction. Under these reforms the
ITBs were rebranded as Industry Lead Bodies (ILBs)
in the 1980s, as National Training Organisations
(NTOs) in the 1990s and eventually as SSCs in
2001. There are now 22 SSCs that cover most
sectors of the economy and an estimated 90
per cent of the workforce.34 In the past, SSCs
received their operational and core funding directly
from government. Under recent reforms, SSCs,
in conjunction with partners and employers,
can now access the government-supported
Employer Investment Fund and the Growth and
Investment Fund.35 This provides the potential for
more income provided that employers undertake
certain activities.
 Analysis of Approaches to Sector Skills Development Across the Commonwealth \ 35
Each of the SSCs in the UK consists of a
management board comprising employers, unions
and different stakeholders. The operational team
delivers core services. One of the optional key skill
development deliveries is through the Sector Skills
Agreement (SSAs), which outlines what the SSCs
will deliver (see section 5.3.3).
The sector-based skill approaches are very different
in Australia and Canada to those mentioned above.
The industry training committees (ITCs) in Australia
were established around a number of key trade
areas and professions. These ITCs were replaced by
a more formalised Industry Advisory Training Boards
(IATBs), which were concerned with employer
engagement. Each of the IATBs was responsible
for managing competency-based standards and
training packages for a sector, with some also acting
as providers.
In 2004 an independent review of the ITABs took
place. This review was undertaken in light of
the continual coordination difficulties between
the national- and state-level boards. The
recommendations of the review resulted in the
setting up of 10 national ISCs. The framework
guiding workforce development in Australia is called
Skills for Australians. Under this framework the
Commonwealth government provides an additional
A$1.75 billion over a 5-year period to support deep
reforms in the skills development system.36
In Canada the sector skills approach dates back
to the 1980s and was established in response
to a rapid decline in jobs in the country’s metal
industry sector. During the 1980s business and
labour stakeholders formed the first sector
council (SC) ‘in order to deal with the crisis through
skills development, retraining, redeployment
and reorganisation of working practises’
(ECORYS 2010).
Now there are more than 35 SCs that cover around
25 per cent of the Canadian workforce. The SCs
receive core funding from the government to cover
overheads, including staff and operational costs,
which can be supplemented by project-specific
funding for federal initiatives to develop the skills
sector. This second tier of funding is normally
used to finance projects which support the federal
government’s skills priorities, and critics argue
that this may not necessarily correspond with the
industry’s skills needs.
5.3.3 What functions are carried out by
the sector skills structures?
The functions of the sector skills structures in the
four countries vary considerable and most are
formally specified in policy documents or on the
SSCs, or equivalent, webpages.
One of the key functions of the ISTCs in Singapore
is to develop a sector-based strategic plan for
the continuing education and training needs in
the sector. This plan is submitted to the country’s
Workforce Development Agency (WDA) and
provides the basis for the setting of annual
targets, updating providers on the content of
curriculum and coordination programmes for
workforce development. The ISTCs also drive the
development and validation of skills standards,
assessment strategies and training curriculum for
the industry.
In the UK, SSC are expected to develop a Sector
Skill Agreements which involves an assessment
of the sector’s needs and an analysis of the
current, as well as future, skills gaps. This provides
the basis for an action plan. The SSCs are also
expected to serve as a voice for employers
regarding skill needs; improving supply through the
development of apprenticeships, higher education
and national occupational standards (NOSs);
improving productivity, business and public service
performance; developing occupational standards
and qualifications; as well as the development of
career materials and continual vocational training
(Lloyd & Payne 2007: 12; EC 2010: 44). One of the
major criticisms of the SSCs has been their wide
remit and limited amount of funds to actually carry
out their functions effectively.
The function of the ISCs in Australia was guided
by the 2010 review, under which they were
expected to become more involved in providing
labour market intelligence, strategic advice and
workforce planning. Each year the ISCs undertake
an environmental scan of the external factors
influencing change in their respective industry
and address the implications for workforce
development. These scans are based on valid and
timely data and function as an ‘early warning system’
to the vocational education and training (VET)
sector and enable stakeholders to understand how
well the products of Australia’s training system
are responding. After the intelligence has been
obtained, ISCs produce a Continuous Improvement
36 \ Mapping Sector Skills Development across the Commonwealth
Plan that outlines what changes need to be made
to the Training Package qualifications to meet new
skill requirements.
For Canada, the functions of the SCs has changed
with improving economic conditions, with the
current focus on skills development for young
people, creating new industries and enhancing
co-operation between existing industries (ECORYS
2010). The structure and work of SCs is not
definitively prescribed and the functions have
evolved according to a differing industry landscape,
with each SC delivering different activities according
to industry needs. Nevertheless, they include the
production of LMIS, the development of standards,
career awareness, support for the development
of industry-based curricula and the actual
implementation of training programmes. Other,
more recent, activities have extended into HRD
activities within firms and the retraining of workers.
5.3.4 What roles are played by employers
and public–private partnerships?
Private sector engagement has been touched
upon previously and in each country employers
appear to have a similar function, but the degree of
engagement varies. In Singapore the government
has played a key part in creating the institutional
framework for employer engagement, ensuring
an effective approach to PPPs at all levels of the
system. The ISTCs provide the vehicle in which
employers can drive the system, especially around
the type of skill areas to be trained, as well as the
content of occupational standards. Put simply, the
ISTCs serve as a forum through which employers
within a defined economic sector can collaborate in
influencing the shape of the TVET system.
In the UK in the past, one of the major criticisms
of the SSCs was that they were part of a supply-
led system that responded primarily to targets
established by the national government. The
partnerships with the private sector were minimal.
Under such an approach the SSCs could not tackle
broader demand issues associated with the labour
market and, as a consequence, there were minimal
incentives for employers to become involved.
The former coalition government in the UK was
aware of the difficulties facing SSCs and attempts
were made to improve their operations, particularly
around how PPPs operate. The introduction of a
number of competitive funds provides an incentive
for SSCs to work closer with employers and the
initial evidence appears to show these reforms
are encouraging employer investment in skills
development. This approach will help to ensure that
the approach to PPPs moves towards a genuine
partnership in which employers help to drive
the agenda.
For Canada one of the successes of the SCs is
the fact that they have PPPs driven by employers.
As outlined earlier, the tripartite nature of the
Canadian skills system makes it mandatory for SCs
to have equal representation from all stakeholders.
In Canada the SC boards are elected by industry
and must represent the key stakeholder groups,
including business, education, labour and any
groups have to the industry which they represent.
37
In most of the activities performed by the SCs
employers play a key role.
Within the context of Australia PPPs are strong,
with employers playing a key role in driving the
agenda at all levels. The ISCs in Australian are
run like companies and have boards of directors,
which in the majority of cases are drawn from lead
employers that work in the sector. Once again
this enables the employers to play a key role in
identifying requirements in the workplace and also
developing solutions that are capable of being
implemented.
5.3.5 What are the benefits and
limitations of approaches to sector skills
development?
For all the industrialised countries analysed there
are a number of benefits, as well as limitations, to
sector skills development. Singapore illustrates the
importance of linking industrial policy with the type
of skills that are developed. A government-driven
mechanism was developed to ensure that this
match was achieved and that employers had a key
role in this process, especially in the transition to
knowledge-based economy. Another lesson to
be taken from the Singapore example is the focus
on understanding and raising demand, especially
around the emphasis given to the workplace and
wider HRD practices.
There are also a number of important lessons to
be learned from the UK case study. The setting
up of a national and sector skills system led by
the government, with nationally determined
targets, is not a good way to encourage employer
engagement. The imposition of a state-led
framework leads to what is commonly called a
 Analysis of Approaches to Sector Skills Development Across the Commonwealth \ 37

supply-led system. The introduction of project-

based funding in the UK can provide a mechanism
for encouraging employers to work with the SSCs,
as well as tackling more demand-related issues in
the workplace.
Lessons were also apparent in the case of Canada
and Australia. Both countries have developed
flexible sector systems that help them to respond
to the characteristics and needs of their sectors.
This is a move away from the usual one size fits all
approach. More specifically the ISCs in Australia
provide an effective means of working with
employers to gather labour market intelligence
at the state, regional and sector levels. A further
strength of the ISCs is their ability to develop and
deliver training packages.
In Canada the success of the SCs lies in their
inclusiveness, and the fact their processes are
employer driven, ensuring that demand issues are
tackled in the planning as well as in the delivery of
skills. A summative evaluation study concluded
that the SCs had had a direct impact on employees
and employers. Workers had obtained the skills
they needed to get jobs and employers had gained
access to workers with the right skills. On the
downside a two-tier approach of governance in
Canada makes it challenging to develop strategies
and operational plans at a national level while also
trying to achieve relevance and impact at a regional
and local level, especially around qualifications
and competencies.

Country Socio-economic development
Australia • Economic boom driven by the
global demand for minerals
• Some of the lowest
unemployment rates for
women and men in the OECD
countries
• Significant skill shortages in a
number of areas
• Size of domestic labour market
is expected to contract owing
to numbers of people retiring
• Visas are linked to occupations
in demand
Canada • GDP/capita of US$59,000
• Negative population growth
over the next 15 years
• Low unemployment levels at
around 7%
• Majority of the employed
population are in the services
sector (76%)
• High demand for STEM skills
• Very high skill levels, with 45%
of the population holding a
tertiary degree
Issues facing skills development
• Two layers to the skills
development system, the
National/Commonwealth
government and the State/
Territory government
• Skills for Australians represents
the framework for skills
development
• States/Territories responsible
for funding and implementation.
• One of the main vehicles for skills
development is apprenticeships
• The Registered Training
Organisations (RTOs) have a
key role in delivering training.
The key RTOs are the Technical
and Further Education (TAFE)
colleges, universities, schools
and businesses.
• Canada is a federal system and 10
provincial governments and three
territories are responsible for the
organisation and delivery of TVET
• At the federal level the HRSD is
responsible for workforce policy
• Technical and vocational
training is mainly offered at
post-secondary level through a
network of community, technical
and commercial colleges
• There is no federal standard that
has to be adhered to
• quality assurance of education
and training provision in Canada
is the responsibility of providers
Structure and function of sector skills
body
• A total of 10 ISCs exist in Australia,
covering the main industrial sectors.
• The functions of the ISCs have changed
over time and they are now focused on:
(a) providing labour market intelligence
to government, industry and other
stakeholders about the nature of skills
development and supply; (b) supporting
the development of quality training
packages and advice to enterprises;
(c) liaising and engaging with state and
territory governments on skill issues
• 35 SCs covering about 25% of the
Canadian workforce
• The tripartite nature of the Canadian
skills system makes it mandatory for
SCs to have equal representation from
all stakeholders
• Each SC delivers different activities,
according to industry needs
• Common foci of the councils
are the development of LMIS,
development of standards/industrial
curricula, implementation of training
programmes, encouragement of firms
to investment in HRD and retraining
• An alliance of SCs has been established
to assist in the setting of standards,
assessment and certification activities
Lessons from sector skills development
• Effective PPPS with employers driving the process
• Each ISC operates with its own constitution and a
board of directors. This helps them meet the specific
needs of their sector
• The ISCs provide an effective means of gathering
labour market intelligence and a mechanism is in place
to ensure synergies occur between the identification
of sector priorities at the state, regional and sector
industrialised economies
level.
• Evidence suggests the ISCs have been effective in the
development and delivery of their training packages.
An estimated 1.1 million people are enrolled on
publicly funded programmes
• The ISCs have been criticised for acting as a voice of
industry and not representing their interests
38 \ Mapping Sector Skills Development across the Commonwealth
• Formal evaluations found workers had obtained the
skills they needed to get jobs and employers had
gained access to workers with the right skills
• Their success stems from the fact that they bring
together different stakeholders to address HR issues
• The approach to planning is inclusive and is driven by
employers, ensuring buy-in
• SCs are able to offer leadership from their grounded
knowledge and interests in the sector
• On the downside a two-tier approach of governance
makes it challenging to develop strategies and
operational plans at a national level while also trying
Table 5.3  Sector bodies that supports skills development in a selection of
to achieve relevance and impact at a regional and
local level, especially around qualifications and
competencies

Country Socio-economic development
Singapore • Singapore has a per capita GDP
of S$78.362 million, making it
the second best performing
economy in the Asia-Pacific
• In 2014, the labour force was
estimated at 3.43 million
people
• 70% of the workforce is
engaged in service-based
industries
• Unemployment is officially
recorded at 2% and youth
unemployment at 4.3%: less
than 7.5% of young job seekers
take more than 25 weeks to
find work.38
United • Highest growth rates in the
Kingdom EU since 2007, making it the
fastest growing economy in
western Europe
• In September 2014
unemployment levels were at
1.8 million people, which were
the lowest levels for 6 years
• Unemployment rate for 16–24
year olds was 16.2%
• In 2013 a total of 559,600 job
vacancies existed in England
Issues facing skills development
• Skills development has evolved
in response to a number of
economic priorities
• In the last phase of development
(2003 onwards), the focus has
been on changes within the firm
and emphasis was given in 2003
to the continuing vocational
education and training (CVET) of
the entire adult workforce
• Under CVET a Workforce Skills
Qualifications (WSQ) system will
be set up
• Under CVET programme, from
2011–15, the government
planned to train upwards of
240,000 people annually
• The key public providers –
Polytechnics and ITEs – are
mandated to deliver these WSQ
qualifications: 49 to high quality
• CET centres in 24 economic
sectors will also be established
• The UK’s skills development
system has evolved in response
to a significant number of
government reforms and there
are a number of organisations
delivering skills, as well as layers
of bureaucracies to support this
process
• One of the key issues in skills
development system has been
the move towards the use of a
competency-based education
(CBE) curriculum
• For sake of clarity there are
three main vehicles that support
the delivery of CBE, namely (a)
Further Education Colleges
(FECs); (b) apprenticeships; and
(c) private providers
Structure and function of sector skills
body
• Key growth sectors were identified
that would promote economic
development: estimates for skilled
personnel in these growth-driven
industries were made based on
projected and planned investments:
process managed by a few key
government policies
• With the shift to a ‘knowledge-based
economy’, the government established
24 ISTCs over the period 2005–10
• The role of these councils includes
developing a sector-based strategic
plan and development and validation of
skills standards
• Through its engagement with the
WDA, the ISTCs provide advice in
setting targets for education and
training at all levels and serve to
institutionalise the link between
industrial policy and the education and
training system
• There are 22 SSCs which cover most
sectors of the economy and an
estimated 90% of the workforce
• Each of the SSCs consists of a
management board comprising
employers, unions and different
stakeholders.
• The current functions of the SSCs are
to promote employers’ investment in
vocational training; to improve learning
and productivity; to provide support
for LMIS; to develop occupational
standards and qualifications; and to
offer training
• An overarching body exists for the
SSCs called the Alliance of Sector Skills
Councils
Lessons from sector skills development
• The most striking feature of these reforms has been
the way in which industrial policy has had a direct
influence on the education and training system
through a centralised state development approach
helping to ensure links were achieved between priority
sectors for economic development and strategies for
skills formation
• The Singapore model also demonstrates the critical
importance of involving the private sector in its
(centralised) approaches to skills planning. Through
three phases of development and planning over four
decades, it has been able to articulate this relationship
through informal consultations between private firms
and key state agencies responsible for industrial
policy. Management of the implementation of training
achieved through an efficient horizontal coordination
between different Ministries
• More recently the PPPs have had a key role in skills
development, with more formalised structures
established for employer engagement
• Critics argue that it is a centralised state-dominated
system that fails to involve employers, or to respond
to the needs of learners or employers
• SSCs have also been criticised as they are funded by
the state and targets are established by the state and
are expected to deliver state policy
• The government recognises these criticisms and has
started to encourage more employer engagement
through a project-based mechanism. There are signs
of success with SSCs encouraging more employer
investment into the sector, but systemic constraints
continue
• PPPs are beginning to change, with employers
starting to play a role in driving the agenda
• The UK has an excellent culture of research in the field
of skills development, offering valuable insights
Analysis of Approaches to Sector Skills Development Across the Commonwealth \ 39
40 \ Mapping Sector Skills Development across the Commonwealth
5.4 Analysis of how a selection
of island countries approach
sector skills development
5.4.1 Introduction
The island case studies chosen for this analysis are
situated in two very different parts of the globe,
namely the Caribbean and the Pacific. The countries
in the Caribbean include Jamaica and Antigua
and Barbuda and in the Pacific include Fiji, Kiribati,
Solomon Islands and Vanuatu. Each of these
countries has similarities as well as differences as
regards to their development characteristics. The
potential for development driven by domestic
demand is limited in small island economies, which
makes them very dependent on and vulnerable to
changes in global markets. These islands are also
vulnerable to extreme weather conditions and the
impact of climate changes. However, being close to
markets in North and Latin America, the Caribbean
islands have better opportunities for exports than
their counterparts in the Pacific. The approach
being used for sector skills development is very
different between the two Caribbean islands and
also very different from the system being proposed
for the Pacific island economies. A summary of the
issues skills issue facing these islands are shown in
Table 5.4 and an in-depth analysis is provided below:
5.4.2 What approaches are used for
sector skills development in island
economies?
Two very different approaches have been adopted
for sectors skills development in the Caribbean.
Antigua and Barbuda borrowed the ILB approach
from the UK and established these ILBs under a
NTA. A total of four ILBs have been established
in the following sectors: cosmetology, building,
engineering and construction and tourism. The
ILBs were developed under a technical assistance
programme funded by the EC. The remit of the
programme was to develop the capacity of the
country’s TVET system so that young people
could be provided with recognised skills to obtain
employment. Prior to this programme most
of the job opportunities were given to foreign
workers for the simple reason that they had
recognised qualifications.
In Jamaica the approach to sector skills
development is more developed and occurs under
the country’s Human Employment and Resource
Training Trust (HEART) NTA. In simple terms the
HEART NTA plans sector skills development at the
national level and this is delivered through their own
sector academies, other providers and employers.
The planning and implementation occurs on a
sector basis linked to pre-defined priorities. The
government has a macro-level development plan in
which the country’s economic sector priorities are
identified. The funding for sector skills development
comes from a 3 per cent levy on the monthly
emoluments of enterprises, provided that the
contributions of emoluments exceed J$14,444 per
month. Under this arrangement an employer who
pays emoluments to trainees for any month shall be
entitled to relief from that month equivalent to an
amount of up to 3 per cent of the emolument.
The HEART NTA has established a performance-
management system to monitor progress towards
pre-determined enrolment targets in specific
sectors. This system also enables planners to
identify how much this provision costs and what
approaches are used to deliver these skills. Through
the use of such a system the HEART NTA is able
to respond rapidly to sectoral changes in the
labour market.
In contrast the Pacific islands are proposing to
use a regionally based approach for supporting
sector skills development, called Skilling Youth
in the Pacific (SYP). This is a programme-based
initiative that involves the setting up of a
programme management-type unit, along with
an advisory board in Fiji, to disperse funds on a
competitive basis to consortia across the region.
Each consortium will consist of technical education
providers, employers and professional bodies from
islands in the region. Each consortium will have to
outline in their proposals how they will train a certain
number of people to international standards in
targeted sectors over a specified time period. This
regionally based approach has been developed
by governments and partners across the Pacific
in response to the difficulties experienced in
producing quality skills for employers. In addition,
the programme will facilitate access to employment
markets overseas, especially in light of the inability
of local labour markets to absorb the increasing
numbers of youth coming onto the labour market.
The Australian government is supporting this
programme for a period of 10 years and is providing
around AUS$85 million.
 Analysis of Approaches to Sector Skills Development Across the Commonwealth \ 41
5.4.3 What functions are carried out by
the sector skills structures?
The situation of island economies is similar to that
of other countries in the study. The sector skills
approach is mainly used to help match supply and
demand and, more importantly, to develop skills
in targeted sectors that are more likely to result in
young people obtaining employment. An analysis
of the experiences of the different countries will
illustrate this point.
In Jamaica the focus is upon matching the
supply and demand of skills. This is driven by the
government’s development priorities and their
longer term vision for the country. More detailed
information about the anticipated growth in specific
sectors is provided by the Planning Institute of
Jamaica (PIOJ). It is worth noting that PIOJ is a
powerful institution in Jamaica responsible for
national development and economic growth. It
works closely with the Ministry of Finance and
has a key role in signing off on national budgets.
This means that in the context of TVET PIOJ has
a good overview of what is actually happening in
the economy and should be able to effectively
plan ahead for changes in skills requirements at a
sector level.
The HEART NTA interprets intelligence obtained
from PIOJ, ensuring that synergies are achieved
between industry and skills development priorities.
This provides the broad macro framework for
planning skills development. As outlined earlier this
is supported by the performance-management
system which enables the HEART NTA to adjust
the type of skills developed and enrolment levels
according to the changing levels of demand
identified by PIOJ and partners. For instance, over
the past 2–3 years, the HEART NTA has decided to
reduce enrolment levels in occupations in certain
sectors owing to an oversupply in the labour market.
At the same time the LMIS department within the
HEART NTA has been working with PIOJ to identify
the potential expansion of the business outsourcing
sector and the implications for skills development.
Adopting such an approach has enabled the
country to adopt a strategic approach to skills
development, ensuring that a more cost-effective
mechanism is used to match supply and demand in
priority sectors for employment growth, especially
for youth.
In Antigua and Barbuda, the functions of the
ILBs are defined in a constitution and enforced
in legislation through the 2008 National Training
Agency Act. Under this Act the functions of the
NTA, in conjunction with the lead bodies, are
defined as follows:
• promote and coordinate technical and
vocational training;
• develop and maintain a national training policy
and advise on matters related to TVET;
• maintain, operate and regulate a system of
apprenticeship and traineeship;
• establish and maintain standards in TVET;
• develop and maintain a register of national
training facilities and resources,
• set up a new system of certification
(Antigua and Barbuda National
Vocational Qualifications) in a national
qualifications framework
• help set up a regional system of certification
(CVQs);
The above tasks are very ambitious given the
limited capacity of the country’s ILBs. Evidence
from those working on the EC programme is that
the ILBs had some success in carrying out the
above tasks, especially when the EC programme
was in operation. The EC programme provided a
number of long-term technical experts to facilitate
ILBs undertaking the tasks specified above and
seed money was also provided to encourage active
employer participation, especially around support
for the development of standards. However, once
the EC programme was finished and the technical
assistance and funding removed, the sustainability
of the ILBs was questionable. There is evidence to
demonstrate that professional trade associations in
Antigua and Barbuda are no longer involved with the
TVET sector39.
The precise function of the Pacific advisory body
in SYP is yet to be determined. The key strategy
underpinning the SYP programme is how to
facilitate coherence in the skills system by ‘providing
the information, coordination and relationship
structures, to better match skills supply to labour
market demand at the sector’ (ERF 2014). A brief
look at each of the issues will explain the proposed
functions that the advisory body and the PMU-type
structure are expected to have. At the heart of
42 \ Mapping Sector Skills Development across the Commonwealth
this approach is valid labour market intelligence on
the skill needs of sectors across the region. Three
main types of data analysis have occurred. The
first investigated the number of foreign workers in
skill-based occupations across the region. Second,
an analysis of occupational data was undertaken
to illustrate the share of national and foreigner
workers with post-school-level qualifications. Using
these data enabled the SYP to identify the gaps
between national and foreign workers, indicating
areas in which the qualifications of nationals needed
to be upgraded. The third approach recognised
that, owing to the small size of domestic labour
markets in the Pacific, there was a need to look at
overseas employment opportunities. Therefore,
the analysis investigated the current and future skill
needs for the Australian and New Zealand labour
markets. Together these data provided the basis for
determining what sectors and skill areas would be
supported under the SYP.
What is unique about the regionally based approach
under the SYP is how the funds will be dispersed.
The proposed funding dispersed by the SYP
programme will be based on the unit cost for
training each student plus an incentive of 50 per
cent. The advisory body, along with the PMU, will
have a key role in managing this disbursement. The
submission of proposals must include a quality
improvement plan that specifies how partners
in each consortium will achieve international
standards. However, they will not receive direct
funding to achieve this improvement quality. The
thinking behind such an approach is that it will
encourage providers and stakeholders to achieve
international quality standards themselves, without
having them imposed by international technical
assistance or a donor.
5.4.4 What roles are played by employers
and public–private partnerships?
The types of PPPs that have been established in
Jamaica, Antigua and Barbuda and in the Pacific
countries are very different. The roles of employers
range from providing advice on the types of skills
developed or standards required to the actual
funding and delivery of skills development. A
variety of structures and incentives are used
to involve employers in partnerships with the
public institutions.
Under the 1982 HEART Act in Jamaica the
Minister of Education is responsible for appointing
the chairman of the board and any members.40
According to the Act the number of board
members can range from a minimum of 7 people
to a maximum of 20. The Act does not state the
representation of the board and fails to specify
industry representatives. This suggests that
established structures are not place at the national
level to engage with employers
Enterprises have a more important role in Jamaica
for the actual funding and delivery of skills. As
outlined earlier, enterprises are required to pay a
levy on their payroll if it reaches above a certain
point. They are also exempt from paying the levy
if they support the training of their employees.
This provides the government with leverage for
involving employers. The HEART NTA also works
with employers through an apprenticeship to
deliver skills in targeted sectors. Once again the
levy and the corresponding disbursement provide
the government with a mechanism to determine in
what sectors skills development occurs. This acts
as a mechanism to ensure that PPPs are involved in
the actual delivery of skills.
In the case of Antigua and Barbuda, employers were
given a wide range of functions, but in practice the
employers in the ILBs were primarily concerned
with supporting and confirming the development
of occupational standards. As outlined previously,
this was facilitated through pilot funds by the
EC technical assistance programme. Under this
proposed arrangement PPPs were supposed to
play a key part in driving the skill agenda. However,
once the programme was completed there was no
more technical support or funding and engagement
with employers started to break down, resulting in
PPPs that were no longer operational.
The Pacific islands provide an unusual example of
employer engagement at the regional level through
the proposed SYP. The involvement of employers
and stakeholders will occur through a Regional
Advisory Board (RAB) that will be established in
Fiji. The board will provide strategic advice to the
SYP programme and contain representatives
from governments in participating countries,
professional bodies, the Australian government
and Technical Education Providers. Among the
professional bodies confirmed to participate in
the RAB are the Australian Institute of Building, the
South Pacific Engineers Association, the Institute
 Analysis of Approaches to Sector Skills Development Across the Commonwealth \ 43
of professional Engineers New Zealand and
relevant licensing authorities. Together the various
professional bodies will provide support for the
accreditation of programmes to be financed under
the SYP programme. Like the example of Antigua
and Barbuda this PPP is also dependent on donor
funding, but differs in that attempts are being made
to establish partnership that will be sustainable
once the donor funds are withdrawn.
5.4.5 What are the benefits and
limitations of sector-based approaches
in the island economies?
Jamaica offers a number of valuable lessons. The
first and perhaps the most important lesson, is
that the Jamaican government is able to translate
the country’s industrial and political priorities into
those for skills development. A second lesson, and
closely related to the first, is the ability to change
supply quickly in response to sudden changes in the
labour market. Another benefit of the system is the
transparent way in which resources are managed.
The provision of information on skill needs and the
publication of progress towards these needs in
annual progress reports means that stakeholders,
as well as the general public, can see how resources
are utilised – something that occurs in only a small
number of developing countries.
There are also lessons to be gained from the
sector-based approach in Antigua and Barbuda.
It is clear that the ILBs were dependent on donor
funding and expertise. Without this support the
ILBs are not sustainable over the longer term.
The findings also illustrate the important point of
choosing champion employers in the sector to drive
employers’ perspective, as well as the importance
of providing them with seed money.
The proposed SYP regional programme is a very
innovative approach to linking demand at the
sector level, to the development of internationally
recognised qualifications. This approach attempts
to tackle some of the constraints facing TVET
in the region and to overcome the limitations of
previous donor-driven approaches. Hopefully,
the funding modality being proposed by the
SYP will encourage changes in behaviour and
encourage providers, together with partners, to
meet international standards. A final benefit of
the SYP programme is the decision to focus also
upon employment opportunities overseas. The
international community must recognise that they
will need to open up their labour markets more
to developing countries if they want to tackle
youth unemployment.
Country Socio-economic development
Antigua and • High-income country
Barbuda • Tourism accounts for nearly 60%
of GDP
• Very few data
• In 2001 the labour force was
around 30,000
• Unemployment rates in 2001 were
11%, with levels much higher for
male (18.4%) and female (21.6%)
youths
• Severe skill shortages exist for
technicians
Jamaica • Jamaica is an upper-middle-
income country
• Has experienced long periods of
poor growth
• Recently improved performance
• Government defines the following
priority sectors for development:
agriculture, manufacturing, mining
and quarrying, construction,
creative industries, sport, ICT,
sciences and tourism
• Unemployment levels are
falling, but 38.8% of youth are
unemployed
Issues facing skills development
• Enterprises overcome their labour
shortages through the recruitment of
foreign workers
• The EC has supported the Antigua
and Barbuda Institute of Continuing
Education (ABICE) that trains
technicians and craftsmen. The
Antigua and Barbuda International
Institute of Technology also supports
ICT, business and administration
training
• A NTA has been established to
coordinate TVET
• The NTA and providers face severe
capacity constraints
• University of Technology responsible
for professional/technician level
• HEART NTA responsible for skills
training
• Initially HEART focused on the delivery
of training. It now performs a more
strategic role and attempts to manage
supply and demand for skills on a
sector basis
• HEART works with their own providers
and others partners to deliver training
• An LMIS system at HEART is
responsible for tracking trends in the
labour market and identifying priorities
• The funding of skills development
is through a 3% levy on monthly
emoluments of enterprises
Structure and function of sector skills body
• Beneath the NTA are a number of
ILBs covering the following areas:
cosmetology, building and construction,
engineering and tourism
• A constitution was establish for the ILB
supported by legislation
• The functions of the bodies are: the
coordination of TVET providers;
the development of a TVET policy;
the regulation of apprenticeships;
the establishment of standards; the
maintenance of a register of providers
and the establishment of a system of
certification
• Within the sector-based approach the
PIOJ determines priority areas for the
country’s development
• Currently the HEART NTA supports
skills development in seven of nine
government priority economic sectors
• The delivery of skills is supported
through a mixture of PPPs using a levy on
enterprise payroll
• LMI system is used to help signal
changes in demand and helps determine
enrolment levels in skill areas
• Enterprises do not pay the levy if they
support skills development according to
pre-dated criteria
Lessons from sector skills development
• Cost-effective means of establishing
structures to involve employers in
standards development and policy issues
• The ILB were successful, as the right
champions of industry were chosen to lead
Island countries
them. This encouraged participation of
other employers.
• The ILBs were initially dependent on donor
funds and operated effectively. Once donor
funds were removed they were no longer
sustainable
• The remit of the ILBs were also unrealistic
given the limited capacity
• The approach to PPPs was dependent on
donor funding and this was not sustainable
• One of the key lessons to be gained from
Jamaica’s sector-based approach is the
strong links between economic and skills
development.
44 \ Mapping Sector Skills Development across the Commonwealth
• HEART has established a performance-
based system for skills development. They
can monitor the actual numbers of people
being trained against identified labour
market demand
• The Jamaican sector-based approach to
skills development can respond in a short
space of time to changes in anticipated
changes. The private sector appears
to have a key role in the funding and
delivery, but not in the actual planning or
representation of the board. This model
of PPPs is different from that of other
countries, but seems to be effective in
Table 5.4  Sector bodies that supports skills development in a selection of
supporting delivery
• The only weakness of the system is that it
might lead to the selection of the wrong
sectors and the development of skills that
are not in demand
Country Socio-economic development
Fiji • Tourism accounted for 35% of
GDP and F$2.51 billion of foreign
exchange
• Population 880,000
• 21,000 enter the labour market
each year, but only 9,000 jobs are
created
• Youth are twice as likely to be
unemployed
• Number. of young people will
increase by 50% by 2020
Kiribati Limited development opportunities
Vulnerable to climate change
Population is 102,000
Few data are available
The labour force comprised 7,870
people in 2001
Solomon Tourism offers potential, but faces
Islands infrastructure and security difficulties
Population is 561,231
75% of the labour force in subsistence
activities
Overseas aid accounts for 40% of
GDP
Vanuatu 80% of population engaged in
agriculture
Labour Force was 76,376 in 2009
and an estimated 27% of youth were
unemployed
1,500 jobs created each year and
4,000 people enter the labour market
Issues facing skills development
• The Fiji Institute of Technology
(FIT) and the Advanced Vocational
Training (IHRD) are responsible for
community and non-formal training.
The MoE supports vocational training
centres. The, Training and Productivity
Authority of Fiji (TPAF)supports skill
development
• Benefits of the system are close links
with industry and a well-organised
apprenticeship
• Limitations are a failure to match
supply and demand, as well as a lack of
quality assurance
Responsibility rests with the Ministry
of Labour and Human Resource
Development.
The main provider is called the Kiribati
Institute of Technology (KIT)
DFAT is helping improve capacity and
support for delivery at KIT focusing upon
health and community services, tourism
and hospitality, automotive and transport,
and building
The Ministry of Education and Human
Resource Development is responsible for
TVET
The key provider is the Solomon Islands
College of Higher Education (SICHE)
Non-formal providers include
Community-Based Training Centres
(CBTCs) and Rural Training Centres (RTCs)
Main constraints: shortage of managers
at MoE, fragmented TVE system and lack
of data
A large post-secondary TVET institution is
the Vanuatu Institute of Technology
The Australian government supported
the setting up of the Australia Pacific
Technical College
There are also 39 Rural Training Centres
Employers continue to face recruitment
difficulties and cannot find young people
with the right type of qualifications or skills
Structure and function of sector skills body
• The Pacific Islands provide an innovative-
based approach to sector skills
development, called SYP, which is in the
planning stages
• Technical education providers in
the region will work together with
professional bodies and governments
in the region to deliver internationally
validated programmes that have an
identified demand within a specific
sectors
• Around A$84.5 million will be provided
by the Australian government to
support the implementation of the SYP
programme over a 10-year period
• The key strategy underpinning the SYP
programme is to achieve a better match
of skills supply to labour market demand
at the sector level
• The following sectors were identified as
sector priorities for the SYP: engineering,
construction and maritime
• The involvement of employers and
stakeholders will occur through a RAB
that will be established in Fiji
• Under the programme technical
education providers will be asked to
submit a proposal for funding of specific
number of learners. The submission
of the proposal will involve a number
of providers in different countries,
professional bodies and employer
associations
• The funding of the proposal will be
competitive and be dependent on the
submission of a Quality Improvement
Plan (QIP) demonstrating that certain
standards have been achieved
Lessons from sector skills development
• At the time of writing this report it is
difficult to comment on the impact of the
SYP programme, as implementation has
yet to begin
• The only lessons that can be gained relate
the proposed approach and the planning
process
• This is a very innovative approach for linking
demand at the sector level to development
of internationally recognised qualifications
• This approach attempts to tackle
constraints facing TVET systems in
the Pacific region and to overcome the
limitations of past donor approaches to
TVET
• The SYP programme will overcome the
limitations of previous approaches by
providing incentives to technical education
providers to upgrade themselves to
international standards and forge links with
employers (PPPs).
• Under the SYP, funds are used as an
incentive to influence the behaviour of
technical education providers, especially in
terms of working with employers and also
meeting international standards
• The regional approach proposed by the
SYP programme will offer the benefits
of economy of scale, enabling positive
outcomes to be achieved that could not
be achieved by each of the individual
countries working by themselves. This
approach is also providing a means of
engaging with professional bodies and
employer representatives from a number
of countries, including those from Australia
and New Zealand
• Another benefit of the SYP programme
is the focus on meeting international
standards
• Finally, the programme recognises that
it is not enough to just focus up domestic
demand as means of tackling youth
unemployment and there is a need to
also focus on employment opportunities
overseas
Analysis of Approaches to Sector Skills Development Across the Commonwealth \ 45
46 \ Mapping Sector Skills Development across the Commonwealth
6. Lessons from How
Commonwealth Countries
Approach Sector Skills
Development
6.1 Introduction
This section presents a number of important
lessons based on the preceding analysis. Prior
to discussing the lessons, it is necessary to map
the different approaches used by SSCs across
the Commonwealth and to understand what
functions they performed. The lessons from
undertaking the comparative case studies are
numerous. The most important lessons relate
to the conditions that are necessary for SSCs to
perform their roles effectively. Another lesson
relates to the whole area of employer engagement.
This is at the heart of many debates about the
performance of SSCs and there is a need to
comprehend why employer engagement in some
SSCs is stronger than in others. Equally significant
is the importance of integrating SSCs within the
wider TVET infrastructure. Unless this occurs
SSCs will face continual difficulties in carrying out
their intended functions. Other issues or lessons
raised extensively in the analysis include how to
obtain accurate labour market intelligence and
the implementation of a performance-based
system that are not led by the government. The
final lessons relate to larger countries and how to
mitigate the negative impact of this two-tier system
of government on the operation of SSCs.
Together the various lessons help to explain why
SSCs in certain countries can be more successful
than those in others. The lessons also provide
the basis for the next section where a number
of recommendations are made for developing
countries who want to embark on setting up sector
skills structures or improving their existing systems.
6.2 What do we mean by
approaches to sector skills
development in the context of
the Commonwealth?
The case studies revealed a variety of approaches,
mechanisms and strategies for supporting sector
skills development. No single approach to sector
skills development will be suitable for all countries.
There were similarities and differences in the
functions performed by SSCs. Some countries
have borrowed sector-based approaches from
other countries. Other countries have established
a sector approach based on the ability of employers
in the sector to fund skills development. Other
countries have ensured that links have been made
between strategies for skills development and
those for economic growth at the sector level.
There was even an example of a regionally based
approach to sector skills development. None of the
approaches is necessarily better than the others,
and each represents an attempt to manage change
and target skills development in a priority sector.
What can we make of these different approaches
and how can they be categorised? This is a difficult
task given the different country contexts and variety
of approaches and structures. The starting point for
understanding sector skills development is to map
the different types of functions carried out by SSCs
or their equivalents across the Commonwealth.
Figure 6.1 portrays the main functions performed
by sector bodies across the Commonwealth.
For the sake of analysis these functions can be
organised into five different categories. Most of the
countries analysed followed one or more of these
categories to varying degrees. Using this logic, the
countries in this study have been mapped against
these different categories. The y-axis in Figure
6.1 represents the groupings that were used to
 Lessons from How Commonwealth Countries Approach Sector Skills Development \ 47

analyse the countries (i.e. Africa, Asia, industrial The fourth type of approach involves SSCs
countries and island economies). The x-axis shows managing supply, as well as the other functions
the functions that were performed by the SSCs outlined above. Normally this would involve the
or their equivalents. It should be noted that these development of a sector skills strategy and an
represent idealised models and enable us to map attempt to match the supply coming out of the
the different approaches. skills system to perceived demand. In most of
the cited case studies this approach does not
Using Figure 6.1, the different functions performed
address demand issues in the labour market and
by SSCs can be grouped into a number of models
instead focuses only on reforms to the supply-side
or approaches. The first model can be called an
system. For the effective implementation of such
advisory approach. Under this approach the sector
strategies the SSCs normally need appropriate
bodies are expected to perform advisory roles and
funding or formalised links to other structures in
provide the basis for employers and stakeholders
the TVET system. This supply-based approach is
to input into the skills development process. In
probably the most common approach across the
more sophisticated systems this advisory approach
Commonwealth and takes place to varying degrees
could influence the direction of the policy, but in
in Botswana, Jamaica, Kenya, India, South Africa and
most of the case studies it was more concerned
the UK, and, to a lesser extent, Australia.
with determining which occupations are in demand.
Examples of SSCs following such an approach The final approach builds on the former model,
are evident in the Mozambique and Antigua and but with the difference that the SSC gives more
Barbuda models. attention to factors that influence the demand
for skills in the workplace. Emphasis is given
The second approach to sector skills development
to understanding the workplace and how skills
builds on and extends the features discussed
development is integrated with other practices
above. Normally, the structure is more formalised
in the workplace, especially around what is called
and has underpinning legislation. The SSCs would
high-performance working practices. This approach
normally perform advisory activities as well as
moves beyond managing supply and attempts to
focusing their efforts on developing occupational
raise the demand for higher level skills, with the
standards collaboratively with employers. Typical
overall goal of raising productivity and supporting
examples of countries that follow this approach
moves up the value chain. Examples include
include the ISCs in Bangladesh. This is a more
Singapore, Canada and, possibly, Australia. It is also
sophisticated advisory approach than in the
clear that India is moving in this direction. This final
first model.
approach can be called the demand-led approach
The next model or approach to sector skills to sector skills development.
development involves a more active role for the
Overall, the message from the mapping exercise
SSCs. In addition to the functions mentioned
is that the majority of approaches to sector skills
previously, the SSC focuses on accreditation,
development are focused mainly upon supply-
certification and assessment functions. This
based approaches. There have been considerable
approach moves the SSC away from just being
investments in supply initiatives, and governments
advisory and towards an interventionist body
have attempted to drive the reform progress
that influences the quality of supply. In contrast
into areas perceived as having a priority for skills
to the previous approaches there are more
development. In only three developing countries,
opportunities for employers to become involved
namely Botswana, Jamaica and India, is there any
in skills development and to take ownership.
genuine attempt to move towards demand-driven
Commonwealth countries that follow this
systems. In the remainder of the developing
interventionist approach include the island
countries the SSCs have only interventionist roles
economies in the Pacific region.
and over the longer term this will do little to raise
skills to higher levels.
 Figure 4. Mapping the sector-based approaches to skills development across the Commonwealth

Africa Botswana
South Africa
Mozambique
Kenya
the Commonwealth

Asia

Bangladesh India
Canada
Industrialised
economy Australia
United Kingdom
Singapore
48 \ Mapping Sector Skills Development across the Commonwealth

Antigua and Jamaica

Island economy PacificIsland
Barbuda
Management demand and
supply
Managing supply Managing supply
responsiveness responsiveness
Accreditation and Accreditation and Accreditation and
certification certification certification
Standard development Standard development Standard development Standard development

Advisory body Advisory body Advisory body Advisory body Advisory body
Approach to
sectorskills
Advisory Interventionist Demand-led
development
Figure 6.1 Mapping the sector-based approaches to skills development across
 Lessons from How Commonwealth Countries Approach Sector Skills Development \ 49
6.3 What conditions are necessary
for Sector Skills Councils to
perform their expected roles?
In order to be effective institutions the SSCs must
be fit for purpose. In practical terms this means
that they must have a clear remit. Closely related
to this aim, the SSC must have the capacity and
resources to implement this remit.
The degree to which SSCs were fit for purpose is
evident in a number, although not all, of the case
studies. In nearly all countries analysed the remit
for the SSCs is clearly defined in government
documents and in many instances could be
regarded as long shopping lists. In most countries
it is questionable whether the SSCs are actually
capable of undertaking the tasks outlined in such
wish lists. One of the criticisms of the SSCs in the
UK is that they will have difficulty in meeting their
mandate owing to the low level of funding support.
The same criticisms have been levelled at the
sector bodies in Canada and Australia and could
also apply to Bangladesh, Antigua and Barbuda,
South African and Botswana.
The evidence would suggest that a single list of
prescribed functions for SSCs is not necessary,
as sectors in each country will have different
characteristics and requirements. This means
that implementation strategies for SSCs will need
to vary from sector to sector to respond to such
differences. There are no universal functions for
SSCs that would apply to all sectors. A number of
countries recognise this issue and now SSCs are
given broad parameters in which to operate, as
opposed to prescribed functions. This provides
flexibility for SSCs to respond to the perceived
needs in their sector, without being constrained by
nationally defined boundaries.
SSCs also need adequate resources and capacity
to carry out their tasks. In a number of the case
studies it is clear that the SSCs have not been
provided with adequate support. A case in point is
the ILBs established in Antigua and Barbuda. The
government failed to provide adequate resources
or technical support for their operation, despite the
fact that the fact that the country can be classified
as having an upper income level. The experience of
Antigua and Barbuda illustrates another important
issue, namely the problem of policy borrowing from
other countries. In Antigua and Barbuda, the sector-
based approach was copied from the UK, without
consideration of how it would be sustainable.
Clearly, for an SSC to be fit for purpose it must be
developed by local employers and stakeholders and
given appropriate support by the host government.
In countries with limited capacity and few
employers, it becomes difficult to establish SSCs
that are fit for purpose. Nevertheless, the case
studies have revealed that there were ways around
this problem. The example of the HRD sector
committees established by the HRD Council in
Botswana provided a simple solution for facilitating
employer engagement at the sector level. Another
innovative approach was the regional programme
for sector skills developed being proposed
for the Pacific island cluster. This identified
regional sector priorities for skills development
and provided opportunities for delivery by
partners. This collaborative approach enables
the programme to achieve more than would be
possible at the individual country level.
A penultimate issue is whether the SSCs have
access to adequate resources. The provision of
adequate resources enables the SSCs to carry out
their operational functions. In addition, resources
can also enable SSCs to perform a wider remit,
especially around engagement with employers,
the development of standards and support for the
delivery of training. The types of funding used in
the case studies varied from direct government
budgets to various forms of levy payments.
There were also examples of SSCs engaging in
revenue-generating activities or even charging for
their services. None of the funding mechanisms
is necessarily better than another. However, the
use of the levy provides a means of encouraging
employer engagement, provided that other
conditions in the TVET system are aligned. The flow
of regular funds through SSCs, especially if they
fund the supply of skills, can enable SSCs to impact
positively on skill outcomes, as opposed to just
being an advisory body.
A closely related issues to those discussed above is
the degree to which SSCs are part of government
development plans, especially those focused on
industrial policy. Most countries have a long-term
development plan, often covering periods of
10–15 years or even longer. Within these plans
SSCs should be identified as key structures for
skills development and providing the basis for
PPPS in key sectors of economic development.
The incorporation of SSCs into development
50 \ Mapping Sector Skills Development across the Commonwealth
plans would provide the basis for longer term
sustainability and ensure that SSCs are not subject
to political changes as a result of new governments
coming into power.
6.4 The importance of effective
relationship with other
structures in the technical
and vocational education and
training system
The effectiveness of the SSCs will ultimately
depend on their relationship with the TVET
infrastructure within which they operate, as well
as other relevant structures, especially those
concerned with local economic development. Two
important issues pertaining to this were revealed
during the analysis. First, there was the question
of how the SSCs interacted with other structures
in the TVET infrastructure. Second, consideration
was given to whether the TVET institutions
performed their intended functions (or not) and
how this impacted on SSCs. In developed countries
the articulation of SSCs with the wider TVET
infrastructure is normally much more positive and
they tend to reinforce each other’s functions. The
same could not be always said for SSCs in some
developing countries.
In a number of the case studies there were
examples of SSC structures facing difficulties
in forging links with other parts of the TVET or
education system. There were a number of reasons
for such difficulties, one of which relates to the
fact that government Ministries or Departments
operate in silos. The examples of South Africa
and Kenya illustrate the difficulties that can arise
when Ministries of Education and Ministries of
Labour do not cooperate. In both countries, until
recently, the sector bodies operated under the
Ministry of Labour and were unable to cooperate
with education providers under the Ministry of
Education. This led to a situation whereby skills
development supported by SSCs did not employ
underpinning knowledge that could be provided
by the education institutions. Similarly, education
providers were unable to engage with employers
owing to the fact that incentives were provided
only by the Ministry of Labour. In both countries
attempts are being made to bring together the two
systems of education and training, with the sector
bodies facilitating this process.
In contrast, Botswana provided an example of a
deliberate attempt to ensure synergies occurred
between different parts of the training and
education system, taking into account the roles
and functions of the HRD sector committees.
This has been achieved through the setting up
of an HRD Council which has responsibility for
coordinating all aspects of skills development and
a planning framework to facilitate this process.
Under this process the HRD sector plans are fed
into this planning process, as part of the bottom-up
approach to planning. Adopting such an approach
has ensured that synergies occur in the planning of
education and training, preventing any Ministry from
operating in isolation.
Besides integration within TVET infrastructures and
other parts of the education system, it is equally
important that SSCs link with structures or bodies
that support economic development. The evidence
from Singapore illustrates how the government
was able to support close alignment between
trade and investment strategies and those for skills
development, especially during the early phases of
development. Other countries have experienced
difficulties in achieving such synergies. For instance,
the SETAs in South Africa were intended to tackle
the skill implications of industrial priorities for their
sectors and develop responses. Unfortunately, the
SETAs were unable to perform this task because
they lacked the capacity or political support.
Currently in South Africa attempts are being made
to develop a mechanism that will link industrial
priorities with those for skills development at the
national and sector levels.
A good example of linking government priorities
for industrial development with those for skills
development was found in Jamaica. This involves
a deliberate attempt to translate industrial sector
priorities determined by the country’s planning unit
into the production of skills by the country’s NTA.
There is no doubt that SSCs need to articulate
positively with their surrounding TVET
infrastructure, and those bodies involved in
economic development. The evidence shows
that the different structures for education, skills
development and economic growth should
complement each other. In practice this means that
SSCs’ strategies must be aligned with governments’
wider policy frameworks, including those for
education and economic growth. The ways in which
SSCs relate to other structures is determined by
 Lessons from How Commonwealth Countries Approach Sector Skills Development \ 51
the roles and functions they are expected to have,
as well as by degrees of political support. The SSCs
need to work in a collaborative manner with other
institutions and the government must play a key
part in facilitating this process.
6.5 What has been learnt about
employer engagement and
public–private partnerships?
Everybody would agree that PPPs are one of the
key element of an effective SSC, especially if they
want to engage in more strategic and demand-level
activities. What is more difficult to understand
is how SSCs can achieve effective engagement
with employers and what are the most effective
strategies, especially in developing countries?
A number of different strategies for PPPs were
evident in the case studies, some of which were
more successful than others. One of the key issues
was whether employers drove the SSC structures
or whether employers were a reluctant participant.
In a developed economy it is easier for the SSC to
engage with an employer since there is an industrial
base and employers have experience of working
with education providers. This is not necessarily the
case in developing countries where mechanisms
and incentives have to be developed to ensure
that engagement occurs. The type of institutional
structures and mechanisms determine whether
a PPP can be successful or not. At the heart of
the debate is also whether the employer is given
autonomy to drive the system. Unless this occurs
the PPP is likely to be ineffective.
One of the best examples of an employer-led
system among developing countries can be found
in India. In India employers played a key part in
establishing the initial SSCs through a proposal
and licensing system. In addition, the employers
contributed around 25 per cent of the operational
costs for the SSCs. This helped to ensure that SSCs,
right from the start, were driven by employers,
as opposed to civil servants. In India employers
in the SSCs made all decisions around skills
issues, including those relating to planning, quality
assurance and occupational standards and training
packages. The case of India can be regarded as one
of the most effective PPPs identified outside the
industrialised countries.
In a number of the other case studies, particularly
in developing countries, the setting up of PPPs
and the involvement of employers has often been
at the request of the civil servants and has been
limited to participation on a board or in a temporarily
committee. In some countries, especially those
that are new to PPPs or employer engagement,
there is a reluctance to let decision-making around
skill issues be determined by employers. Clearly,
the inability to work together means that those
employers do not trust the private sector and
vice versa. Under such circumstances there is a
reluctant PPP, and employer activities are limited to
identifying skills needs or confirming standards.
Even in developed countries there were examples
of predominantly state-led SSCs. The most cited
example of state-led SSCs can be found in the
UK. A number of critics have pointed out that the
SSCs in the UK are totally state funded, with state-
defined targets and decision-making processes
that are also predominantly driven by civil servants.
Under the coalition government in the UK there
were attempts to reverse this situation, involving
the use of project-based funding to encourage
collaboration between the SSCs and employers.
These reforms appear to have worked and they
leveraged increased employer investment in
skills development at the sector level. It could be
argued that these reforms helped the country
to move towards a more strategic-led PPP for
skills development.
The use of a levy-based systems can provide an
incentive for encouraging employer engagement
with an SSC. Nevertheless, the evidence from the
case studies has shown that the use of incentives
or levies is sometimes insufficient. The example of
South Africa illustrated that employers sometimes
viewed the use of the levy as a form of tax and
decided not to participate in the government’s skill
development programme. Once again this could
be viewed as an ineffective PPP, as employers are
involved but are reluctant participants.
There is no doubt that the relationship between
an SSC and N employer depends on the actual
context and, perhaps more importantly, on the
government commitment to establishing PPPs and
letting employers have an input into or to actually
drive the process. The evidence also demonstrated
that incentives on their own are insufficient to
engage employers. What is more important is
to give employers a role in decision-making and
52 \ Mapping Sector Skills Development across the Commonwealth

the autonomy to drive processes that impact on the needs defined in the state-funded workforce
skills development. Unfortunately, this does not development plans, the regional development
happen in many countries, especially developing plans and the industry sector plans. Other federal
ones. Exceptions to this are the SSCs in India and countries could learn from Australia’s approach.
the training boards in Kenya. These two countries
Within developing countries, especially smaller
have examples of PPPs that are strategic and
ones, there is a lack of capacity to collect and
employer-led.
analyse data. The case studies revealed a number
of options on how data-collection processes can
6.6 How can Sector Skills Councils be supported. The most usual approach is for the
obtain accurate and valid National Planning Agency (or the relevant Ministry)
intelligence? to support the SSCs with their data-collection
and -analysis activities, as occurs in South Africa,
Access to timely and valid intelligence is important
India and Botswana. Reference to South Africa is
for determining occupations in high demand and
useful in illustrating the difficulties that can occur in
priority areas for skill investment. In most of the
following such a strategy. In South Africa a specific
case studies one of the key roles of SSCs is to
unit was established in the Department of Labour
identify skill needs or shortages. For industrialised
to support data collection for SETAs. Unfortunately,
countries the emphasis of SSCs was more about
the architecture for the LMIS was designed by ICT
how to look to the future and determine the best
specialists and neglected the type of quantitative
approaches for forecasting future sector skills
and qualitative data that were available on the
needs. Other issues tackled in developed countries
ground. As a consequence, the LMIS was unable to
included how to understand skill needs across a
provide SETAs with the type of data they required.
number of levels and the use of high-performance
Attempts are now being made to reverse this
working practices. In developing countries, the
situation through an LMIS system based on the
concerns among SSCs relate more to capacity
needs identified by SETAs and stakeholders. This
and how they can understand skills demand in
highlights that data collection should be driven by
their sector, including how to collect or access
the needs of planners and not ICT systems.
relevant intelligence.
Another strategy for overcoming the lack of data
An example of best practice for gathering labour
is for the NTA or Ministry to sub-contract sector-
market intelligence, and one that will have relevance
based research or data collection to universities
to developing countries, is the strategy used by the
or research-based institutions. Adopting such an
ISCs in Australia. The ISCS are currently undertaking
approach could provide a means by which to build
environmental scans of their sector to quickly
the capacity of the SSCs, especially if they worked
determine trends and possible skill shortages.
with the university in the data-collection and
This intelligence is captured from employers and
-analysis processes.
stakeholders working in the sector. A guide has
been developed for ISCs to undertake such scans. The collection and analysis of data is an expensive
There is no doubt that this approach could provide activity. The starting point for SSCs is to work
lessons for SSCs in developing countries on how to with industry partners to identify the type of data
gather data in a cost-effective manner, as opposed that they need to collect. Only then can the SSCs
to relying on quantitative statistics which in most address the question of how they will collect
cases are out of date. these data. The evidence from Australia pointed
to the importance of using qualitative intelligence
Another important data issue in larger economies,
gathered form employers and stakeholders who
especially federal ones, is how to understand what
work in the sectors. This would prove a much more
the skill needs are at the national, state, district
cost-effective method of understanding needs in
and sector levels, as well as how to reconcile any
the sector than undertaking expensive surveys.
differences. A number of countries in the case
studies are trying to tackle this problem, but most
have not developed formal mechanisms to take
on board demand signals from the different levels.
The exception to this rule is Australia, which has
developed a formalised framework to combine
 Lessons from How Commonwealth Countries Approach Sector Skills Development \ 53
6.7 How do systems of government
influence how Sector Skills
Councils operate?
The SSCs are not islands. The evidence showed
they operate in complex political environments and
are influenced by the type of government systems
present in that country. Within the case studies
it was evident, as earlier studies have found, that
the two-tier system of government can create
significant difficulties for how SSCs operate.
The case study from Canada highlighted the
problems associated with operating in a two-tier
system of government. At the federal government
level, the HRSD Department has the mandate to
develop policies and the provincial governments,
along with the three territories, are responsible
for the delivery of TVET and post-secondary
education. This structure can make it difficult for
the sector SCs in Canada to develop strategies
and operational plans at the national level and
achieve relevance and impact at the local level.
There are also examples of where this governance
structure has resulted in SCs overlapping their
functions with regional sector bodies, and in some
instances competing with them. Currently, the lack
of adequate funding prevents the SCs from building
links with dispersed institutions and stakeholders
due to their two-tier system.
Problems were also experienced with the two-tier
system in Australia and India. In Australia there are
also two layers to the skills developments system,
namely the national/Commonwealth government
and the state/territory government. Difficulties in
cooperation between national and local structures
for sector skills development was one of the
reasons why the current ISCs were established. One
of the remits of the ISCs is to liaise with state and
federal agencies over skills issues and to a certain
extent this has helped overcome some of the
difficulties that occur in Canada. Despite the former
achievements, there are still problems in Australia
associated with having a national competency
framework that is delivered in states and territories
that have different legislation and requirements.
Under such arrangements the funding mechanisms
will be different from state to state and this will
impact on the number of training hours, as well as
the possible quality that is delivered.
In India the impact of two tiers of governance is
more complex and the evidence suggests that this
could be one of the most significant constraints
facing skills development. The difficulties stem
from the vast size of India and the multiple layers
of federal and state arrangements which have
overlapping responsibilities for managing parts of
the skills development system. This will make the
functions of SSCs very difficult. The role of the SSCs
at the national level, in terms of supporting the
interface between the public and private sectors, is
well defined. However, what is not clear is how this
relationship will play out at the state level, especially
as regards the roles and functions that the SSCs are
expected to carry out.
Clearly, federal countries are more complex on
account their sheer size, and imposing sector-
based structures can compound the difficult
relationships that already exist between the
different levels. Whatever the context, the evidence
shows that it takes time to resolve the differences
associated with having different layers of decision-
making. The evidence shows that strong political
leadership is required from governments to
resolve such difficulties, as well as the setting
up of mechanisms that facilitate dialogue and
inclusiveness at the different levels. This also
requires resources and political support from the
national government.
6.8 The importance of
performance-monitoring
systems
The introduction of a performance-based system
can be a double-edged sword. On the one hand,
there is a need to introduce a monitoring system
that will help to measure performance and
demonstrates accountability, especially when public
monies are being used. On the other hand, this
system must not become too bureaucratic and
responsible for driving the system.
In a number of the case studies, the use of
performance-based systems by SSCs helped
highlight potential problems. For instance, in South
Africa, the SETAS are required to monitor the
number of learnerships in their sector and also the
amount of funds disbursed. The evidence from
these monitoring systems has highlighted that a
number of enterprises are not claiming back their
levies, raising questions about the effectiveness of
54 \ Mapping Sector Skills Development across the Commonwealth

the sector-based approach. The monitoring system There is no doubt that it is easier to implement
also helped to identify instances in which officials in a performance-monitoring system in a small
SETAs have allegedly misappropriated funds. country such as Jamaica. In larger countries, where
the sector bodies have a more complex role, it
The use of the performance-monitoring system
will be more difficult to effectively implement a
in Kenya also highlighted how funds had been
performance-based monitoring system. This raises
utilised by the sector bodies. One of the major
questions over what should be monitored and
findings was that levy funds for some sectors had
what the most appropriate tools are. The answer to
mainly supported administrative costs. Another
these questions will depend on the functions being
finding was that some sectors had provided
performed by the SSC, the capacity of the SSC and
minimal training for SMEs. The use of an effective
the context in which the SSC operates.
monitoring system in Kenya may help to explain
why a decision was taken by the government
to remove the levy-based sector approach to
industrial training.
One of the best examples of a performance system
in developing countries can be found in Jamaica
where the HEART NTA adopts a sector-based
performance approach to managing their skills
system. This involves the careful identification of
priority occupations in demand – as determined
by the government planning agency. This is
translated into supply through the HEART NTAs
academies, providers and the workplace. The
system also monitors the costs of providing these
skills. Subsequent continual monitoring of the
labour market allows planners at the HEART NTA to
understand whether supply should be increased or
decreased. All of this information is available on the
NTA’s webpages.
 Recommendations for Setting Up or Reforming Sector Skills Councils \ 55
7. Recommendations for
Setting Up or Reforming
Sector Skills Councils
7.1 Introduction
Any recommendations for setting up or reforming
an SSC must be based on the specific context in
which they operate, including the political system
of government, the size of the industrial base, the
commitment given to skills development by the
government and the degree to which a culture of
trust exists between the government and the private
sector. Taking these issues on board, it is possible to
make a number of recommendations that can form
the basis for establishing or reforming an existing
SSC. These stages and issues are shown in Figure 7.1.
In making these recommendations two important
issues must be taken on board. First, there are a
number of stages for the setting up or reform of
SSCs. These stages can be sequential, but some
may occur at the same time. Second, at the heart
of establishing or reforming an SSC is determining
whether it is going to undertake an advisory role, a
more interventionist role, or a more strategic role.
The following represent some important questions
that must be addressed when establishing
or reforming an SSC and deciding upon what
approach will be followed.
7.2 Which economic sectors
should be targeted for skills
development?
Governments in most developing countries do not
have the resources to support skills development
across all their economic sectors. Therefore, the
first question is what sectors should be targeted
for skills development? Today’s global environment
it is very competitive and countries must focus their
efforts on sectors in which they have a competitive
or comparative advantage.
Priority sectors for economic development
are normally defined in a country’s National
Development Plan. Notwithstanding these plans,
it is important to research which economic sectors
are most likely to benefit from targeted skills
development. This is more complex than it sounds.
For instance, in certain sectors in which the GDP
growth is high the opportunities for employment
and skills development are low – a classic example
of where this occurs is in the minerals and energy
sector where employment levels are very low. Other
sectors might offer opportunities for employment,
but the wages are very low and there are minimal
opportunities for skills development. Given these
issues it will be important to undertake research to
understand the different sectors and to identify which
ones are likely to benefit from skills development.
There will be a need to undertake analysis of national
data sets, as well conducting structured interviews
with employers and other stakeholders in the sector.
The most suitable data analysis would focus on
changes to the occupational composition of a
country’s labour market by sector over time. In
practical terms there is a need to understand in
which sectors and occupations people are employed,
and how this changes over time. For instance,
this analysis might reveal that the proportion of
technicians in the agriculture sector has declined
over the past 3 years, and the number of technicians
in the construction sector has risen. This simple
analysis could provide one of the signals to inform
policy-makers about which sectors and skill areas
should be targeted and supported by the SSC.
If the country has time series data it is possible to
calculate the elasticity’s of demand for labour in
different economic sectors. Such an analysis would
inform policy-makers whether a sector is labour
intensive or not. If this elasticity of demand for labour
analysis was combined with future projections by
economic sector, often undertaken by the central
bank, this would provide the basis for another signal on
potential sectors for investment in skills development.
Finally, it would be useful to obtain employers’
perception of skills shortages in their sectors. If
sufficient funds are available, a small-scale survey
56 \ Mapping Sector Skills Development across the Commonwealth
of enterprises could reveal the sectors in which skill
shortages and skill gaps are being experienced. The
implementation of surveys tends to be costly and it
might be better to hold a number of focus groups,
containing key employers that work in the different
sectors. These focus groups could provide a cost-
effective method for obtaining further signals on
employers perceptions of trends in their sector and
in which sectors demand for certain occupations
is highest.
Further dimensions that should be taken on board are
the greening of economies, overseas employment
and the informal sector. These represent new
areas of employment that must be investigated by
SSCs. In most developing countries the number
of employment opportunities in traditional sectors
is in decline. One of the areas that provides new
opportunities is in green jobs. As indicated earlier,
UNESCO estimates that around 15-60 million new
jobs could be generated globally over the next two
decades. At the same time a considerable number of
young people will have to work in the informal sector
and also search for work overseas. The SSCs must
help identify what type of skills are required for them
to earn a decent living in these new opportunities.
7.3 What is the mandate of the
Sector Skills Councils?
The second question must identify what mandate
SSCs are expected to perform. The mandate of the
SSC will reflect the functions that they are expected
to perform. This mandate would be based on the
governments’ and private sectors’ priorities and
would reflect the wider TVET infrastructure in which
SSCs are expected to operate. When making a
decision about the precise functions of an SSC it will
be important to be realistic about what the SSCs are
expected to do. There is no point expecting an SSC to
become involved in influencing supply if the resources
are not available. The evidence from the case studies
highlights that SSCs adopt different approaches, and
governments about to establish new SSCs should
think about whether they will be an advisory, an
interventionist or a strategic and demand-led-body?
These are not just academic issues, as the approach
followed by the SSC will ultimately determine the
institution’s mandate, functions and corresponding
structure, as well as their possible funding.
The different approaches associated with an SSC
have been discussed previously in the lessons
section. For instance, the advisory role would
involve the setting up of structures for employer
engagement and occasional meetings to identify
skill requirements. At the other extreme a strategic
and demand-led SSCs will require putting employers
in the driving seat, and the focus of activities
will be on managing supply- and demand-led
interventions. Whatever the approach followed, the
SSC will also be expected to have a broker role and
facilitate linkages between employers, stakeholders
and different parts of the TVET system.
There is a need to develop a mandate that is
clearly spelt out and agreed upon with the relevant
government and employer representatives. In
most instances, the mandate is underpinned by
legislation to ensure effective implementation. This
is normally part of legislation for the setting up of a
National Training Board (NTB) or Council. Without
legislation the SSCs are just voluntary structures
and will have difficulties achieving their mandate,
especially around securing funding from central
government and engaging with other structures in
the TVET system.
7.4 What structure should
be developed to support
skills development at the
sector level?
The third questions facing governments, along
with stakeholders, is what type of structures
should be established to support sector skills
development? The decision to establish SSCs
structures is a political one and would normally
occur because a priority economic sector requires
skills or is experiencing a severe shortage (and is
acting as a bottleneck to production).
In some instances, there might not be a need to
establish a new formalised structure for an SSC.
The sector-based approach could be incorporated
into existing TVET structures or simply involve
an introduction of sector-based committees.
The examples of Jamaica, and, to a lesser extent,
Botswana, provide examples of a sector-based
being followed without the setting up of new
institutional structures. In the case of Jamaica
the government decided to fund priority sectors
using their national planning system, as opposed
to setting up sector-based structures. This is a
relatively cost-effective method of targeting skills
 Recommendations for Setting Up or Reforming Sector Skills Councils \ 57
at the sector level and the time between identifying
skill requirements and translating this into supply
is quick.
The example of Botswana sheds light on an
approach that can allow employers to have an
input into the development of a sector-based
approach without the setting up of complex new
structures. Under the Botswana model sector-
based committees are established and driven by
employers, as well as key stakeholders in the sector.
These committees help to determine priority skills
for their sector and support the development of
the sector-based skills strategies. Subsequently,
these needs assessment and strategies are fed into
national level structures and form the basis for a
bottom-up approach to sector skills development.
Such an approach is a relatively cost-effective
mechanism for ensuring employers have an input
into policy processes at the sector level. This
could be followed by other countries, especially
where there is a need to ensure that employers
buy into the planning process. The disadvantages
of this approach are that employers may have
only a minimal input in delivering skills and that it is
essentially government-led.
The introduction of new SSCs would entail the
establishment of independent structures outside
government control. Normally, a centralised
employer-led agency would be established to
facilitate and coordinate the activities of different
SSCs. This centralised agency takes different forms
and as outlined above is normally an NTB, National
Training Council or an NSA. The SSCs structure
would operate under this national structure.
The SSC structure would also normally consist of an
employer-led structure, with representatives from
stakeholders and government ministries, as well as
providers and other relevant stakeholders on the
board. One of the key mandates of the board would
be to give strategic direction to the council and
to sign off strategies, as well as budgets. In most
countries the board would meet three to four times
a year.
The operational activities of the SSC would be
carried out by operational units or professional
staff. In those countries that do not have large
budgets the SSCs will consist of multi-skilled staff
who perform functions associated with research,
planning, liaison with employers and providers,
and others services such as the facilitating the
identification of skill needs or the development
of occupational standards. The SSCs would be
headed by a Director General (DG) who would
report to the board. Beneath the DG would be a
number of department or units who would carry out
operational functions. This could include a research
and planning unit which would be responsible for
data collection, analysis and the development
of plans. Another unit could focus on employer
engagement and facilitate the development of
standards as well as the support for apprenticeships
or workplace learning. Another unit might be
responsible for funding and monitoring. The type of
unit would be dependent on the functions that the
SSC is expected to perform.
7.5 How do the Sector Skills
Councils relate to other
structures in the government
and technical and vocational
education and training system?
An equally important question is how the SSCs
are integrated into the wider TVET infrastructure
and institutions responsible for economic
development. There are numerous questions
surrounding the integration of SSCs into such
structures. The first is how to ensure that SSCs
strategies are integrated within policy frameworks
for skills development, education and, where
appropriate, for economic growth. The second is
how to establish mechanisms or agreements for
coordination between different parts of the TVET
system. The third issue is how to ensure that SSCs
are linked to central and regional government
structures, especially in large countries with federal-
and state-level government systems. Unless these
mechanisms are introduced, cooperation between
the SSCs and other structures is not likely to occur.
Once again the answers to the above question
will depend very much on the context in which the
SSCs operate. The incorporation of the SSCs into
existing wider policy frameworks is crucial to ensure
that sector skills strategies are integrated into wider
frameworks for Human Resource Development, as
well as those for economic development. Certain
components within an SSC’s plan will be concerned
with influencing supply and it will be important that
links are developed with the country’s education
policy framework. Similarly, if a country has a
national development plan it will be important that
economic development priorities are reflected
58 \ Mapping Sector Skills Development across the Commonwealth

in the types of skills that a system produces. 7.6 How can Sector Skills Councils
Evidence from a number of countries highlighted
be funded and what are
that there were close synergies between strategies
for economic development and those for skills the different options for
formation. The way in which SSCs strategies are sustainability?
integrated with other strategies will often depend
The fifth question focuses on how SSCs will be
on the government’s philosophy and approach to
funded and made sustainable. Without access to
joined-up government thinking. For instance, if
adequate funds the SSCs will be unable to carry out
the government has a strong developmental role
their mandate. The funds should be managed in a
then there are opportunities for linking strategies
transparent manner, ensuring that they are used
for trade and investment, with those for skills
for their specified purpose. There are a number of
development will be strong. The adoption of
issues pertaining to funding that the SSCs must
an integrated approach to planning would need
address, along with government and their partners.
to be supported politically by government and
These include how the funds are raised or sourced,
other stakeholders
how they will be managed and finally how they will
For the second question area, namely the be disbursed.
integration with other parts of the TVET system,
The SSC can obtain their funds from central
it will be important to ensure that the SSCs can
government or through some form of sector-based
carry out their roles and functions effectively. The
levy. The benefits of direct government funding
SSCs will be unable to perform their functions
are that levels are continuous and guaranteed. This
unless formalised agreements are made within
funding would need to cover the operational costs
other structures inside the TVET system. Within
of the SSCs and other interventions that would be
the TVET system clarification must be obtained
facilitated or implemented by the SSCs. Unless the
over issues associated with quality assurance
SSC has funding to facilitate such interventions it
of providers, as well as qualifications, to avoid
will not be able to influence the development of
duplication with other institutions that might be
supply or demand of skills in their sector, and at best
involved in such activities. Similarly, agreements
be just an advisory body.
should be made with organisations outside the
TVET system (when they are considered relevant). The other main source of funds could come from
For instance, if the SSC requires national accounts the introduction of a sector-based levy. Normally,
to be analysed by economic sector according to such a levy would be introduced at the central
three or four level digits, than agreements must government level and would be supported by
be made with the relevant statistical agencies to underpinning legislation. A sector-based levy
supply these data. would consist of a tax of between 1 per cent and
2.5 per cent of pay roll and would be collected by
Finally, in relation to the third question area of linking
a government revenue agency. This would be
with central and regional government structures,
collected on a monthly basis from enterprises.
this is especially important for SSCs that operate
Certain criteria need to be established to define
in large countries with federal and state structures.
those organisations that have to pay the levy. There
Under this situation it will be important to ensure
is a tendency for public institutions and SMMEs
that activities are not duplicated by national- and
who only employ a small number of people to be
state-level governments, especially when they
excluded from the payments of levies. The criteria
have implications for SSCs. This can be a difficult
for the former have to be determined between the
issue to handle and would require clarification
government and the private sector.
from central government over responsibilities and
where necessary the appropriate support provided, The management and disbursement of funds by
including adequate funding. the SSC would be based on pre-determine criteria.
The key issues, especially if a levy-based sector
fund is being implemented, is what proportion of
the nationally collected funds should go to the
SSC and how should be the SSC disburse these
funds? In some developing countries only a certain
proportion of the funds are given to the SSC and
 Recommendations for Setting Up or Reforming Sector Skills Councils \ 59
the majority are used by government for their
recurrent education or TVET budgets. In other
countries the majority of funds flow directly to the
SSC to manage. Under the former circumstance
the SSCs are required to use the majority of funds
to support the delivery of skills and a small 5–10 per
cent for management and administrative costs.
Finally, with regard to the disbursement or
utilisation of funds the SSC would also need to
follow agreed procedures or guidelines. This
would focus on the disbursement of funds back
to the enterprises in the sector provided that
they meet certain conditions, such as training
that leads to a recognised qualifications or the
sending of employees to accredited institutions.
Other funds could also be available for the SSC to
address other issues, such as skills development
in the informal sector. The decision of how
much funds are allocated to SSCs and how they
are disbursed are political ones and will require
extensive consultations between those paying the
levy (i.e. the employers) and government partners.
Whatever decision is made over how the funds
are raised or disbursed it will be important that
appropriate monitoring systems are in place, to
ensure transparency and to understand how the
resources are utilised.
A final option for sustainability is for the SSCs
to engage in some form of income-generating
activities. The options for income-generating
activities will depend on what opportunities are
available and the SSC’s degree of integration within
the wider TVET infrastructure. For instance, if the
SSC were given responsibilities for the certification
of learners in a particular trade or the accreditation
of learning for occupations in their sector, then
they could charge a fee for their services and
generate a significant proportion of their income. In
most circumstances the opportunities for income
generation by SSCs in developing countries are
minimal and staff would need to develop their
capacity before they engaged in activities such
as consulting.
7.7 How can public–private
partnerships be developed for
Sector Skills Councils that are
strategic and demand-led?
The sixth question that needs to investigate
is how can SSCs establish PPPs that are
strategic and demand-led? The evidence from
the different country case studies highlighted
that PPPs consisted of a number of formal or
informal arrangements between the SSCs and
representatives from the private sector. These
PPPs involved a number of different initiatives that
could occur at a variety of levels, ranging from the
policy to the operational and delivery levels, as well
as the area of funding. The evidence revealed that
SSCs experienced limited difficulties in the setting
up of PPPs. What is more difficult is for SSCs to
establish PPPs that are effective and sustainable.
The key to developing an effective PPP is to provide
autonomy for employers involved with SSCs, and
to provide the conditions so that they take a lead
on all issues surrounding skills development. In
industrialised countries this process is much easier
than in developing countries for the simple reason
that state institutions are familiar with dealing
with the private sector. Therefore, in developing
countries there is a need to establish institutional
structures and provide the necessary incentives
to make sure that the private sector takes the lead
on any initiative that involves an SSC. In the case of
the SSC’s board there is a need to ensure stronger
representatives from employers, as opposed to
the public sector on their boards. Adopting such an
approach will help to ensure that the board is driven
by employer’s interests and responds to their needs
Similarly, the SSC should be managed by
professionals with industry experience and
not solely civil servants. The involvement of
professionals with industrial experience in the
management of the SSC operations is important
for moving forward with demand-led solutions.
The SSCs have to play a key liaison role between
enterprises and the public providers in number of
areas, and it is vital that staff have experience and
understanding of how to work with businesses.
A common problem experienced by SSCs in
number of countries is that they are managed
by civil servants who are unable to relate to the
private sector.
60 \ Mapping Sector Skills Development across the Commonwealth
The key to implementing a demand-oriented
sector-based approach is to have employers driving
the SSC right from the start. This can be achieved
through a tendering process in which employers
in a specific sector, along with providers and
professional bodies, submit a proposal to manage
the operation of the SSC for a period of 5 years. The
support for a tendering process would require funds
from a national government and the establishment
of some form of performance agreement based on
deliverables over this five-year period. The license
would come up for renewal in 5 years based on the
preceding performance.
The SSCs also need to be strategic in their
approach and recognise future opportunities
and constraints in their sector, and anticipate the
corresponding implications for skills development.
In practical terms this means that the SSC must
utilised their networks of key employers in their
sector and anticipate changes before they occur
and support the development of relevant skills. This
will ensure that the SSCs become pro-active and
demand-oriented, as opposed to being reactive
and supply-oriented.
7.8 What information systems are
required to support Sector
Skills Councils?
For the seventh question there is a need for
government and their partners to think about
what information is required by the SSCs.
The SSCs must have a good understanding of
their sector and access to accurate and timely
data. Without this, they will be unable to identify
their current or future needs, let alone develop
comprehensive responses in the form of sector
skills plans.
A common problem facing developing countries is
the lack of valid and timely data to understand the
needs of their sector. The development of data
can be an expensive and time-consuming process.
Therefore, it is important that SSCs develop a cost-
effective strategy to identify and collect relevant
data that help them to understand the main trends
in their sector. The nature of the data-collection
strategies will be determined by the resources
available to the SSCs and their capacity to develop
a LMIS.
The data-collection strategy refers to the type of
data that the SSCs want to collect. The data must
be timely and valid, as there is no point using data
that are 2 or 3 years old. The use of existing data
sources is one of the most cost-effective ways by
which to understand trends in the sector. Most of
the existing data to measure trends in the sector
can be obtained from a Labour Force Survey, Hold
Survey or, possibly, a census. When such data sets
are analysed by occupation at the sector level they
can help to provide a broad picture of supply in their
sector, including how many people are employed
and their qualification levels.
It will also be important that SSCs focus on demand
and understand what is happening at the workplace
within enterprises. There are two main ways in which
data for understanding demand can be collected.
The first is to undertake a survey of enterprises
in the sector. This survey would attempt to
understand skill gaps and shortages, as well as to
determine some of the factors driving demand in
the sector. A second way of understanding demand
is to have short focus groups with employers in
the sector. When holding a focus group, it will be
important to have a facilitator who asks the right
questions and ensures that one person does not
dominate the discussions.
Besides looking at current demand it will be equally
important that SSCs obtain an understanding
of what is likely to be happening in their sector in
the near future. This is easier said than done. It is
generally accepted that it is impossible to predict
what is going to happen in the future, especially
with the recent financial crisis and fluctuations in
currencies. Nevertheless, the SSCs can obtain
some signals on which sub-sectors are likely to
grow or contract as well as the possible implications
of new legislation or technology. The SSC must
obtain some understanding of these issues and
how they impact on skills, as well as on the demand
for occupations in their sector.
There are other tools that can enable SSCs to
understand their sector and these are documented
in other webpages.41 The most common tools
include tracer studies, forecasting models,
case studies and focus groups. Each of these
approaches has its advantages and disadvantages
which have been outlined above. Trace studies
are normally undertaken at the provider level and
 Recommendations for Setting Up or Reforming Sector Skills Councils \ 61
the findings could have important implications
for SSCs, especially in terms of understanding the
responsiveness of current supply.
Most SSCs will not have the capacity or technical
expertise to collect new data using the methods
described above and will need to sub-contract
these processes. A common approach used by
many SSCs is to work with a local university or
national consultants to help with the process of
data analysis and dissemination. In most instances
the data will be used to inform the planning process
or inform stakeholders or learners about labour
market issues. For instance, the data will have a
key role in developing strategic plans (see below).
In addition, the data could be used to inform young
people about career prospects in the sector,
especially if there is a high demand for skills in the
sector. There is no point collecting data unless they
are used by the SSCs or stakeholders in the sector
to make more informed decisions.
7.9 How can Sector Skills Councils
develop strategic and
operational plans?
The eighth question must tackle how can SSCs
develop strategic and operational plans? A
strategic plan helps to define the direction of skills
development in the sector over the next 4–5 years.
The strategic plan needs to identify the emerging
sector skill needs and the changes that will be
required to ensure that skill shortage are tackled.
In some countries the SSC plans are used as
part of the industrial policy and this would require
an identification of how to raise demand within
enterprises at the sector level.
In contrast, the operational plan is simply the
business plan for the SSC and identifies what
needs to be done, how much will it cost and who
will be responsible. In some countries the strategic
and operational plans are combined, but in other
countries they are separate.
On a practical level the SSC, with support from the
NTB or other relevant government agency, must
decide on the content of its strategic plans. In
order to ensure that commonalities exist between
the plans of different SSCs a template needs to
be developed to guide their construction. At a
very basic level the template should focus on how
strategic plans can be used in the following ways:
• to document the background context for the
sector in which the SSCs operate, including
the numbers of people employed and their
occupations, the different sub-sectors
contributing to the sector, growth rates for
the various sub-sectors, and major actors in
the sector.
• to identify the major factors driving the
sector and where the sector will be going
over the next 4–5 years. Some sectors may
be heavily influence by global markets and
others by national legislation, technology, or
the environment, etc. The plan will have to
document these drivers and their implications
for priority skills or occupational areas.
• to analyse the current and future supply of
skills for the sector. Where possible analyse
enrolment and graduation rates of key
occupations that are assumed to be in high
demand. It will be impossible to get a perfect
match between occupations in demand and
the types of qualifications coming out of the
system. Nevertheless, signals can be obtained
on areas in which supply is not responding to
demand, especially in terms of technical areas
and levels.
• to identify the skills in high demand. The
SSC will have to use the data on occupations
in high demand and analyse the degree to
which they are being produced by the current
education and training system (or will be in the
future). This will provide evidence on what skill
are being produced that have a high demand
in the sector
• to develop a strategy to respond to the skills
in high demand. This strategy must specify
how the skills will be produced, especially
where there are shortages. This strategy must
identify what solutions are being produced
over the short to medium and longer terms.
Where a more demand-oriented approach is
being used the SSC will identify how demand
can be raised and what measures are required
The above is intended only as guidance for SSCs on
what issues can be addressed. Each SSC will have to
decide with its partners as regards what should be
contained in their strategic plan. In some countries
the SSC strategic plans are large documents of
180 pages and contain complex analysis based
on extensive research. In other countries the
62 \ Mapping Sector Skills Development across the Commonwealth

strategic plans are only 10 pages in length and The process of developing a national system
identify priorities as well as key responses to of SSCs will be ongoing. This involves continual
be implemented over the next 5 years. In most reforms, ranging from the legislation underpinning
countries it would be preferable to develop a SSCs to the way in which they undertake their
succinct document that can be readily understood sector skills planning. Each time a reform occurs to
by those working in the sector, as opposed to the TVET or education system there will probably
lengthy research-based documents. be implications for the SSC.
The operational or business plan is much A final issue that needs to be considered is how
more practical. This must build upon the the performance of the SSCs will be measured
recommendations in the strategic plan. This once they have been established. This will depend
practical plan identifies what needs to be achieved upon the functions that the SSCs are expected to
over the short to medium term, as well as over perform and whether they are primarily concerned
the longer term. Where possible the plan must with advisory, interventionist or strategy-led
establish tangible targets for such interventions. activities. Each of these approaches will result in
In addition, the plan must identify how much these different outcomes and should form the basis for a
interventions will cost to implement and how performance-monitoring system.
they will be managed, as well as how the process
Evidence has demonstrated that any performance-
will be monitored. Appropriate resources must
monitoring system should be not be bureaucratic
be provided to support implementation of the
and should simply identify the expected outcomes,
business plan.
how much it will cost, what partners will be involved
in supporting implementation and how the process
7.10 H
 ow should the sector-based will be monitored. This should be a flexible system
approach be rolled out? in which modifications can be made in response
to changes on the ground. For instance, if there
Given the various dimensions to setting up an SSC
was a sudden reduction in funding from central
and the multitude of different partners involved
government, then the outcomes would need to
in this process, it will be important not to rush this
be adjusted and arrangements made for a smaller
process. Effective SSCs cannot be established in
number of parameters for implementation. This
a short space of time. A great deal of ground work
would help ensure a dynamic SSC that can respond
must take place prior to their establishment.
to change.
The process must begin with careful planning
and be part of a wider reform process for skills
development. The careful planning must reflect the
various stages associated with the setting up and
operationalisation of the SSC. This must cover all
the finer details discussed in the previous sections,
ranging from the identification of the sectors to the
development of strategic or operational plans. It will
be necessary for this planning process to accurately
identify the costs associated with each stage, as
well as ensure that adequate funds are available.
The plan also needs to take into account the risks
and how they could be mitigated.
The rolling out of the plan should occur on an
incremental basis. A decision will need to be taken
on the in which sectors to pilot the SSCs. A pilot of
two to three SSCs could help to ensure that some
of the difficulties or problems associated with their
operations are ironed out. Only then is it possible
to move forwards with full-scale implementation
across a large number of sectors.
 Figure 5. Recommended Question that need to be addressed for setting up or reforming an SSC

Stages to setting up an
SSC
Stage 9

Stage 8 How should the sector- based

approach be rolled out?
Stage 7
How can SSCs develop strategic
reforming an SSC

and operational plans?

Stage 6 What information systems are
required to support SSCs?
Stage 5 How can PPPs be developed for
SSCs?
Stage 4 How can SSCs be funded and what
are the options?
How do the SSCs related to other
Stage 3
structures?

Stage 2 What structures should be

developed?

Stage 1 What is the mandate of SSCs?

Which economic sectors should

be targeted for SSCs?

Type of Advisory Interventionist Strategic

Approach and
demand led
Figure 7.1  Recommended questions that need to be addressed for setting up or
Recommendations for Setting Up or Reforming Sector Skills Councils \ 63
64 \ Mapping Sector Skills Development across the Commonwealth

Annex I: Case Studies on How a

Selection of African Economies
Approach Sector Skills
Development
Attempts to develop a coherent and pro-active approach to sector-based
human resource development plans: the case of Botswana
Introduction Botswana is to maintain this status and achieve
Botswana is often cited as one of Africa’s success a more sustainable growth trajectory. One of
stories. The country’s high growth rates have the most important structural constraints is the
been achieved through the revenue earned from country’s relative dependence on the export of
exports and the government’s sound macro-policy diamonds, especially in the light of the fact that
framework. The government is aware of the need to reserves are expected to run out by about 2030.
diversify its economy away from diamonds and this
The most immediate concerns are low productivity
has created the focus of the current development
and skill issues. Estimates show that Botswana has
plan. Key to the success of diversification is the
a low productivity compared with other middle-
need to ensure that it produces the right type of
income countries, such as Chile, Malaysia and
human resources. In this respect the government
South Africa. Another equally important issue is
has established an HRD council and is, along
that mining has minimal impact on employment
with HRD sector committees, in the process of
generation. The current development path has
facilitating the development of HRD sector plans
created a situation in which there are minimal
for a number of key sectors. The example from
opportunities for employment even within mining.
Botswana demonstrates how HRD sector plans
can be integrated within the boarder framework of The population of Botswana is around 2.1 million, of
government policies. which 53 per cent are under the age of 24 years. A
lack of available data prevents a full understanding
Setting the context and the extent of of how the increased numbers of young people
youth unemployment entering the labour market are impacting on
unemployment levels. According to Morima
At the time of independence Botswana was one
(2012), Botswana youth unemployment is one of
of the poorest countries in Sub-Saharan Africa.
the highest among middle-income countries.43
It is now cited as one of the success stories of
Evidence from employment centres and the
Sub-Saharan Africa, rising to upper-middle-
number of applications for placements on the
income status. This growth has been attributable
country’s National Internship Programme confirms
to the abundance of diamonds, investments
that Botswana is experiencing an increasing number
in infrastructure and a sound macro-policy
of young people who are unable to find work,
framework, as well as a prevailing view of Botswana
including those who have obtained post-secondary
as one of the least corrupt governments on the
and graduate-level qualifications.44
continent. These factors have helped Botswana
achieve upper-middle-income status, with one of Botswana urgently needs to respond to these
the highest GDPs per capita in Africa.42 challenges. As part of National Development
Programme (NDP) 10, and the subsequent NDP
Despite the successful transition to an upper-
11, the government has started to support a
middle-income status, the country faces a number
diversification programme and encourage shifts
of structural constraints that must be tackled if
 Annex I: Case Studies on How a Selection of African Economies Approach Sector Skills Development \ 65
within the mining sector towards other sectors,
including tourism and health. This has resulted
in the development of a number of strategies
including the strategy for economic diversification
and sustainable growth (BEAC 2006) and the
more recent Economic Diversification Drive (EDD)
Strategy 2011–16 (Government of Botswana
2011). Another key to facilitating the diversification
of the economy, improving productivity and
raising commitment to lifelong learning is through
increased support for HRD. Within Botswana
a considerable emphasis has been placed on
HRD. One of the key objectives of NDP10 for the
education and training sector was to produce
‘productive and competitive resources to meet the
needs of the local and global markets’.
An overview of the skills
development system
Significant reforms are taking place in the field of
skills development, and it is anticipated that the
sector-based approach will become one of the key
drivers in helping Botswana move from a supply-led
system towards a more demand-led one. This will
be achieved through the setting up of a number
of sector-based committees. One of the key
issues surrounding the sector-based approach is
how it will be integrated into parts of the country’s
planning framework.
In Botswana overall responsibility for skills
development rests with the Ministry of Education
and Skills. The mandate of the Ministry of Education
and Skills Development (MESD) is to provide quality
education and training to facilitate economic
growth and global competitiveness. The mandate
is premised on the need to enable individuals
to develop their potential for a productive and
meaningful livelihood. It is a key Ministry priority
that from an early age children experience quality
learning that directs itself to the protection of all
children’s rights and by extensions the rights of
all persons as well as the responsibilities arising
from the enjoyment of such rights. The priority
goals for the Ministry, as specified under NDP10,
are to increase access to, and equity and quality
in, education and training and to provide globally
competitive human resource to drive the economy.
Within the MESD one of the key departments
covers TVET. This department is responsible for
the planning and implementation of all institutional-
based vocational programmes. The DTVET
consists of five divisions:
• Policy and Development;
• Programme Development and Delivery;
• Human Resource Management
and Development;
• Brigades Development; and
• Departmental Management.
Another key structure, and one that is involved in
sector skills development, is the HRDC. This is an
independent body that reports to the MESD with a
mandate to:
• provide a single, connected, integrated
approach to HRD that is strategic, focused
and long term;
• ensure the policies of Government, the
desires of civil society, the programme of
educational institutions and the initiatives
of business and industry are better aligned
and work together in a coordinated way to
enhance overall human resource capabilities;
• achieve a better cohesion within the
education sector;
• establish a better link between the supply side
of human resource development (education
and training) with the demand side (work);
• link both of these to the economic
development strategy which, inter alia,
includes diversifying and transforming the
economy, attracting foreign investment and
international entrepreneurs, and ensuring
a better strategic fit between citizen
involvement and empowerment, immigration
policies, skills requirements and needs and
workforce productivity;
• connect all of the above to social
development and demographic issues such
as health and wellbeing, population trends,
societal advancement, social cohesion and
the general, albeit equally important, issue of
quality of life.
66 \ Mapping Sector Skills Development across the Commonwealth
Other important structures within skills
development include the Botswana Qualification
Authority. This is a parastatal organisation
established under the Botswana Qualification
Authority (BQA) Act, No 24 of 2013. The specific
functions of the BQA are to:
• take responsibility for all qualifications, from
early childhood to tertiary level; 
• design, develop and implement a
common quality assurance platform, and
regulate compliance;
• register and validate qualifications and part
qualifications, and ensure their relevance to
social and economic needs;
• develop, implement and maintain
an overarching national credit and
qualifications framework;
• set teaching and learning standards for
education and training providers;  The development of the sector skill approach
• develop policy and criteria for work-based
teaching, workplace learning and work-based
learning programmes, RPL and the credit
accumulation and transfer system (CATS); 
• ensure international recognition for the
national qualifications system and the
international comparability of qualifications;
• develop standards for the recognition of
external qualifications;  HRDAC, the forerunner of the HRDC, developed
• register and accredit education and training
providers, assessors, awarding bodies
and moderators.
The day-to-day running costs of TVET providers
are financed by the government’s recurrent
budget through the MESD.45 There is also a levy
grant scheme that was originally introduced
by the Department of TVET, then managed by
the Botswana Training Authority, and now is the
responsibility of the MES. The training levy provides
upskilling and staff development programmes for
existing employees of companies contributing to
the fund. It is a valuable, but under-utilised fund that
could be used much more effectively by industry for
scarce skills development purposes.
The responsiveness of current supply is difficult
to determine, partly reflecting a lack of data or
evaluative studies. One of the only recent studies
found that the education system is feeling the
pressure of maintaining both the efficiency and
effectiveness of the stated outcomes (Centre
for Employment Initiatives 2013). It is evident
through the many reports, reviews and tracer
studies that the issue of quality in the provision
and achievements of targets and outcomes
continues to be a major challenge for the education
and training system in Botswana. Great gains
have been made, but as access to education and
training has increased, the quality of the outcomes
has increasingly been called into question. This
is evident in recent students’ performance in
summative examinations (particularly the Junior
Certificate of Education [JCE] and the Botswana
General Certificate of Secondary Education
[BGCSE]), in employers’ feedback and also in global
measures where data are available.
The development of the sector
skills system
in Botswana is relatively new and is still focused
more on the actual process of putting together
the plans than on implementation. Nevertheless,
a look at this process will highlight the importance
of having a coherent framework for supporting the
development of the HRD sector plans.
The process of developing HRD sector plans in
Botswana started in 2012 and it is important to
understand the principles driving this approach. The
an HRD strategy, the vision of which was to transfer
Botswana from a stage-1 factor-driven economy,
to a stage-2 efficiency-driven economy with higher
value quality jobs and a subsequent evolution into a
stage-3 knowledge and innovation economy. The
developments of targeted skills were seen as a key
strategy by which the government could support
the movement towards higher value-added
production and knowledge status.
The HRD national strategy was developed
around 2010 as a top-down approach to skills
development, reflecting the overriding vision of
the government and stakeholders for Botswana’s
progress. In contrast the HRD sector skill plans
represent a bottom up approach and reflect the
views of employers and stakeholders regarding
skills constraints and implementable solutions. The
thinking behind this approach is that the bottom-
up HRD sector plans will feed into the top down
national plans.
 Annex I: Case Studies on How a Selection of African Economies Approach Sector Skills Development \ 67
The responsibility of managing the development
of HRD sector plans rests with a number of sector
committees. These structures are the key vehicles
for transforming skills development, from a supply-
led to a demand-led system. The composition of
each sector committee reflects the complexities
of each sector and includes representatives from
large and smaller employers, unions, stakeholders
and also those providers who are involved in the
delivery of skills. So far the HRDC has established
committees for the following sectors: Agriculture,
Creative Industries, Finance and Business Services,
Health, Information and Communication and
Technology, Mining, Minerals Energy and Water
Resources and Tourism. The stakeholders within
the different sector committees are responsible for
signing off on the final plan.
In order to facilitate the development of the
plans the HRDC has established a labour market
observatory (LMO) and also developed a guide for
designing HRD sector plans. The significance of the
LMO is that it provides a mechanism for tracking
trends in the economy, government industrial
plans and other factors impacting on the labour
market. The LMO is supposed to translate this
information into intelligence that can be used by the
HRD council and stakeholders in the development
of their sector-based plans. It was envisaged
that a web-enabled system would facilitate the
dissemination of labour market intelligence to
such stakeholders. The guide was developed to
help ensure that the HRD sector plans followed a
similar format, ensuring that they could provide an
input to the national HRD plan. The guide outlines
how the HRD sector plans will be structured and
what issues should be addressed. Essentially, there
are four separate sections to each plan. The first
section focuses on the nature of change within the
sector and the significant changes that are likely
to occur in the medium term. The second section
focuses on the skills that are required to facilitate
such changes, especially in terms of priority areas
for investments. The third section attempts to
understand the degree to which the current system
is producing such skills and suggests reasons for
any failures in this regard. The final section turns to
recommendations and how the provision of skills
can become more responsive and of improved
quality to meet identified needs.
What is unique about the approach in Botswana
is the attempt to be pro-active in the planning
process and to anticipate future changes in the
economy and the potential implications for skills
demand, as well as the corresponding response
at the sector level. As outlined earlier the thinking
behind such an approach is that it will help to
support the transformation to a more demand-
led system and facilitate the diversification of the
economy away from diamonds.
Besides feeding into the national HRD plan, it is
expected that the results of the sector HRD plans
feed directly into the planning process for the
next National Development Plan (NDPII) and the
next Education Sector Support Plan (ESSP). The
relationship of the HRD sector plans to other plans
within Botswana is shown in Figure A1.1.
Lessons from the sector-based approach
There are a number of benefits to the Botswana
approach to developing HRD sector plans. One of
the key lessons is the importance of aligning HRD
sector plans to wider government frameworks.
Together the various HRD sector plans feed into
the creation of a national HRD sector plan, as well
as contribute to wider government frameworks for
education and national development. In theory this
can help to ensure that alignment occurs between
developmental and industrial priorities, and those
for skills development.
Another key benefit of this approach is the fact
that the plans are very pro-active. That is to say
the HRD plans anticipate future changes, as
opposed to responding to them. This issue is
very important since many sector skills plans are
reactive – that is to say such plans identify what
skills are in demand and then develop the strategy
or response. Under reactive plans the skills that
are developed are no longer in demand due to the
time taken to translate the needs into a curriculum,
not to mention the delivery process. The approach
adopted in Botswana ensures that the future skills
are identified within a broad government framework
that benefits the country, as opposed to responding
to immediate market-based demands.
Another possible benefit is the role played by the
HRDC in facilitating the development of the HRD
sector plans. They provided a guide that contained
a number of steps on how to put together an HRD
sector plan and in theory the HRDC supported
access to labour market intelligence through the
LMO. However, as we shall see the LMO did not
function as planned (see limitations below).
 68 \ Mapping Sector Skills Development across the Commonwealth
1. The relationship between the different levels of planning in Botswana
Figure A1.1. The relationship between the different levels of planning in Botswana
Plan and Levels
Macro HRD Policies and Strategies
• National HRD Strategy
• National Policy Education policy
• Subordinate policies e.g. TE Policies, etc.
Macro HRD National Level Plans
• National Human Resource Development Plan
Demand Side HRD Sector Plans
Sector HRD Plans based on the key priority sectors of the
economy
Supply side HRD sector plans
• Education and Skills Development Sector HRD Plan
Supply Side Institutional HRD Plans
• Academic Programme and Student Enrollment Plans
A final benefit of the approach is the role of
employers and stakeholders in driving this process.
In theory stakeholders drive the development of
the sector plans and this can help to ensure that
their interests are reflected in the whole planning
process, as well as future responses.
There are a number of limitations to the sector-
based approach used in Botswana and this reflects
the fact that the country is relatively inexperienced
at developing sector-based plans. It should be
noted that currently sector HRD plans have been
developed for: mining, minerals, energy and water,
as well as the tourism and hospitality sectors. It
should be noted that this is the first time in 15
years that any type of labour market plans has been
produced in Botswana.
Perhaps the main issue impacting on the
development of the sector plans is the lack
of current data and a lack of access to data in
some instances. This is a national issue and it is
fundamental to Botswana’s attempts to become a
MoE and SD
HRDC
HRDC
HRDC
Institutions
knowledge-based economy. The last labour force
survey was conducted around 4–5 years ago. This is
insufficient for a middle-income country.
Another limitation with the current approach, and
one that is common in many developing countries,
is the dependence on consultants to support the
development of the plans. This also relates to
another issue, namely the lack of capacity within
the HRDC to facilitate the development of such
sector-based plans. The use of consultants in the
development of the initial plans has meant that
the sector committees did not have as prominent
a role as they could have done in devising the
final HRD sector documents, especially around
the recommendations.
All of the above issues have been compounded by
the lack of capacity within the HRDC to develop
such plans and the fact that plans have to be
produced within tight deadlines. In an ideal world,
consultants should facilitate this process, but in
reality the consultants often place too great an
 Annex I: Case Studies on How a Selection of African Economies Approach Sector Skills Development \ 69
emphasis on their perceived needs (as opposed
to those of local employers or stakeholders in the
sector). Over time the capacity of the HRDC will
improve and they will become less dependent
on consultants.
Kenya: Lessons from industry-
based sector training and support
for training in the hospitality and
tourism sector46
Introduction
Kenya is starting to show signs of significant
growth, with GDP levels reaching 5.7 per cent. The
country is also starting to experience skill shortages
in a number of sectors and the government
is committed to major investments for skills
development. The sector-based approach to
skills development is focused on industry-based
training and involved an innovative mechanism for
funding sector-based training. This mechanism
has been removed due to rationalisation and
organisational reform. Another sector-based
approach to skills development can be found in the
tourism and hospitality sector. Reference to these
two approaches highlights a number of important
lessons for governance, management and funding
of skills development at the sector level.
Setting the context and the levels of
youth unemployment.
The focus of Kenya’s economy is on agriculture,
both for domestic consumption and export. The
major export crops are tea and coffee, although
horticultural products such as flowers, fruits
and vegetables are gaining ground. Tourism is
becoming an increasingly important earner of
foreign exchange assets. SME development has
been expanding slowly and is expected to benefit
from recent policy changes that aim to promote
the entire national economy, particularly the SME
sub-sector.
Since independence, Kenya’s development has
been disappointing and the country has not
experienced any long periods of sustained growth.
This helps to explains why Kenya is only the ninth
largest economy in Africa, with a GDP per capita
of US$994.31. Only recently has Kenya started to
show positive signs of growth, with growth levels of
5.7 per cent being achieved in 2013.47 This growth
has been mainly fuelled by increased consumption
and inward investment. Services have a key role in
driving the economy, representing 53.3 per cent
of GDP, followed by agriculture (29.3 per cent) and
industry (17.4 per cent).
The population is estimated at 44.4 million, with
over 50 per cent of the population being female.
What is more significant is that over 50 per cent
of the population consists of dependent youth
under 18 years of age, which puts considerable
pressure on social and welfare services. This
creates a high demand for education and training,
to which government resources cannot adequately
respond. Since 1990, there has been a decline in
annual population growth from 3.8 per cent to 3.4
per cent. The majority of Kenya’s population lives
in the rural areas and there has been an upsurge in
the urban population, especially by school leavers
who come to the cities in search of work. Currently
the population of the capital city of Nairobi has
grown to over 3 million. Despite the growth in
population levels, poverty has declined from 47 per
cent in 2005 to 34–42 per cent. This is good news,
but Kenya has failed to meet most of its MDGs,
including those for reducing child mortality.
The overriding challenge facing Kenya is how
to generate economic growth that will be more
inclusive and tackle the growing levels of youth
unemployment. Inequalities remain high and the
country has a Gini coefficient48 of 47, compared
with one of 29.8 in Ethiopia, 37.6 in Tanzania and
44.3 in Uganda. Part of the explanation for the
level of inequality is the concentration of economic
activity within a small formal sector and the fact that
it employs only a small number of people.
Growing unemployment and continued
underemployment are key problems facing the
country. Unemployment levels for 2014 were
estimated to be around 13 per cent, with levels
much higher for females and young people.
Available data show that the unemployment level
for women aged 20 to 24 years is nearly 34 per cent,
compared with a figure of 26.4 per cent for males
(AfDB 2013). This highlights the nature of gender
inequalities in the country’s labour market.
A lack of access to education and appropriate
skills are some of the reasons why unemployment
levels are very high for young people. Each year
an estimated 800,000 young Kenyans leave the
schooling system and enter the labour market
without any formal training or skills (Kanne 2014).
70 \ Mapping Sector Skills Development across the Commonwealth
Even when young people obtain skills from
vocational training institutions they often do not
meet the standards required by the labour market.
For instance, there is an unmet demand for 30,000
engineers, 90,000 technicians and 400,000 artisans
in the country’s labour market. Understandably,
such skill shortages are impacting negatively
on the repair and maintenance of the country’s
infrastructure. Another skills mismatch is the lack
of ICT skills among graduates coming out of the
formal education and training system.49
The government has developed a number of
frameworks to tackle the challenges faced by the
country. The overarching framework guiding the
country’s development is the Economic Recovery
Strategy for Wealth and Employment Creation.
This blueprint aspires to transform Kenya into a
middle-income country by the year 2030. The
vision is anchored on three pillars: economic, social
and political governance. Under the economic
pillar the aim is to achieve ambitious growth rates
of 10 per cent, with priority being given to the
following sectors: tourism, agriculture, wholesale
and retail, manufacturing, business processes and
outsourcing. The social pillar aims to improve the
quality of life for Kenyans and a key issue driving
this agenda will be the reform of the TVET system,
including improved links with industry. Finally, the
political pillar aims to achieve a more people centred
approach and a more result-oriented system.
An overview of the skills development
system
In Kenya there is a distinction between TVET and
Industrial Training. TVET is concerned with the
provision of education and training that prepares
people for working life. In contrast, Industrial
Training is assumed to impart practical work skills
and enables workers to improve their own positions
in the labour market.
Responsibility for TVET rests with the Ministry
of Education, Science and Technology (MOEST),
although the Ministry of Labour and Human
Resource Development, and its operational arm the
National Industrial Training Authority (NITA) along
with the vocational training centres (N.I.V.T.C.), are
responsible for Industrial Training.
Besides the two main ministries, there are other
ministries and parastatals boards which deliver
skills training in their own sector. One of the
most well-known examples is the support for
skills development in the tourism and hospitality
sector. This is managed by Kenya Tourist Board
and provides a successful example of the private
and public sector working together to support
skills development. Training boards also exist
for agriculture, forestry, water, wildlife, fisheries,
finance, accounting, public service, administration,
armed forces, marine and surveyors. Each
of these boards has their own mandate and
corresponding functions.
MOEST was created under a presidential circular
in 2008 and is responsible for higher education,
the development of higher education policies and
strategies and research in science and technology,
as well the formation and implementation of the
TIVET policy and strategy.50
NITA was established under the Industrial Training
(Amendment) Act of 2011.51 The mandate of
NITA is to promote the highest standards in the
quality and efficiency of Industrial Training in Kenya
and ensure adequate supply of properly trained
manpower at all levels in industry. It should be noted
that NITA replaced the Industrial Training Council
and DIT Training Board.
Another relevant piece of legislation that impacts
directly on skills development is the Technical and
Vocational Education and Training Act, 2013. This
established the Technical and Vocational Education
and Training Authority whose mission is to ‘monitor,
evaluate and control the quality of TVET to meet
the needs of a competitive global labour market’.
The TVET Authority will support the government
target to train 1 million artisans with market skills
and competencies by 2016. In theory the Act was
also supposed to remove the major distinction
between TVET and Industrial Training, but the two
structures have continued to operate separately
and programmes have not been fully harmonised.
Approaches to sector skills development
The sector-based approach to skills development
was most apparent under the former Industrial
Training Centres and DIT. However, as outlined
above, this structure has been replaced by NITA
following recent legislation. The other key structure
implementing a sector-based skill approach is the
country’s tourism and hospitality board. Reference
to the former two structures can provide a number
of useful lessons for sector skills development,
especially as this relates to funding and the
decentralisation of management for the system.
 Annex I: Case Studies on How a Selection of African Economies Approach Sector Skills Development \ 71
Industry-based training at the sector
level
The origin of NITA dates back to industrial
training in 1925 when the native industrial training
depots were introduced by the former colonial
Government. In 1959 an Industrial Training
ordinance was enacted to regulate apprentices and
indentured learners. In 1963, the Industrial Training
ordinance became the Industrial Training Act, and
was amended in 1971 to establish the training levy
fund and the NITC which had a DIT as its secretariat.
Further changes took place to industry training
following the Industrial Training Act in 1974. This
established the country’s NITC, whose mandate
was to perform the following duties and functions:
• improve the quality and efficiency of the
training of personnel engaged in industry;
• ensure an adequate supply of properly trained
manpower at all levels;
• share costs as evenly as possible
between employers;
• advise the Minister on issues relating
to the contracts of apprenticeships or
indentured learners.
In order to carry out the above activities a number
of training committees were established for
different industrial sectors. Each of these sector
committees has a tripartite structure consisting of
15 representatives appointed by the NITC. Under
the Act these committees can submit proposals to
the NITC for the raising and collection of industrial
levies for their respective sector.
These committees were able to determine the
level of their sector-based levy and how it is
collected in their sector. A series of orders have
been introduced to clarify the composition of these
sectors in terms of industrial categories and also
to determine the amount employers in different
sectors will pay and when this levy will be collected.
This can enable each sector to determine how they
collected their revenue based on their own needs
and requirements.
According to the Industrial Training Act the monies
collected from the levy are paid in to a levy fund and
the Director of the ITC can arrange for payments to
be made for the following purposes:
• the making of grants or loans to persons
providing courses or training facilities;
• the payment of fees to persons providing
courses or training facilities;
• the reimbursement of an employer for all or
parts of their training costs, including fees,
instruction costs, materials costs and wages
of apprentices or indentured learners while
attending training courses;
• the payment of sitting allowances
and travelling, accommodation and
entertainment expenses for members of
the Committees while attending meetings of
those Committees;
• the payment of examiners’ fees for setting,
moderating, invigilating and marking
proficiency tests for apprentices and
indentured learners and their travelling and
accommodation expenses;
• the payment of honoraria to instructors for
conducting evening courses;
• other expenditure relating to training as may
be approved by the Minister.
Despite the good intention of the industry-based
sector levy, especially in terms of responding to
sector’s training needs, the outcomes were not
so positive. Figure A1.2 provides an overview
of patterns of payment by the different sectors
according to the predefined categories of training,
training-related and non-training. Overall, these
data shows the disparities in the amount of
budgets generated by the different sectors, with
the plantation and agriculture sector having the
largest revenue raising powers, and the printing and
publishing the least.
An important question relates to what proportion
of the ITC levy funds are used to support industry-
based training? Figure A1.2 provides some answers
to this question and highlights detailed information
on how funds have been utilised in the different
sectors. Amongst the most important finding is
that in the plantation sector over 50 per cent of
payments are actually used to support industry-
based training, compared with a much lower rate of
around 9 per cent for the building, construction and
engineering sector.
72 \ Mapping Sector Skills Development across the Commonwealth
Another important question is what type of
training was supported by the levy and did it serve
the needs of SMES (the main type of businesses
operating in Kenya). Figure A1.3 shows where
the majority of funds for reimbursements flow,
namely to support managerial and supervisory
training. These data shows significant increases
in the number of approvals for management and
supervisory training. This rise in the number of
approvals is good. However, it is questionable
whether management and supervisory training
is appropriate for SMES. Indeed, this type of
training, especially the overseas training element,
is more suitable for large employers with complex
organisational structures.
In 2007 a decision was made to introduce a new levy
order, and in 2011 the National Industrial Training
Council was replaced by NITA. The position of
Director was upgraded to that of Director-General.
Under these changes:
• NITA now operates as a semi-autonomous
body that reports to a board of directors
driven by government, employers and other
stakeholders with interests;
• the whole sector-based approach for
collecting the levy has been replaced by a
more uniform collection method in which all
employers have to pay KSh50 per month for
each employee;
• The other significant change relates to the
timing for the collection of the levy funds.
Previously it occurred mainly on a bi-annual
basis, but under the new order the funds
would be collected and reimbursed on a
monthly basis.
The precise rationale for the changes is probably
to reduce the bureaucracy (i.e. reduction in the
number of collection levy channels from 11 to
1). The second argument for reform is the need
to spread the collection basis more widely and
to encourage SMEs to become more involved in
industry-based training.
Support for training in the tourism sector
With the rapid growth of tourism in the 1970s and
competition from other countries, the Government
decided that it was necessary to support skills
development in the tourism sector. This involved
the introduction of a levy on foreign tourist, the
proceeds of which were used to support training
and development in the sector. The rational for
the levy were to ensure long-term sustenance of
funding for training in this important sector.
The Catering Levy Trustees (CLT), the precursor to
CTDLT, was established in 1972. In 1997, the name
changed to accommodate a new mandate, namely
to manage and administer the levy fund for training
in the tourism and hospitality sector. Its mandate
has been extended to establish and set standards
for training institutions in the sector.
The CTDLT is very different from the Industry
Training Levy in that it is much simpler to
administer, as funds are from a single source,
namely employers, and are used mainly to fund the
provision of training at a single institution, namely
the Kenya Utali College.
The CTDLT Levy Trust became autonomous from
the Ministry of Tourism in 1986 when it became a
parastatal and was given its own board of directors.
Under this new ownership the trust was able to
develop a vision to become the leading course for
sustainable tourism and skills development. As a
result of this autonomy they were able to hire more
suitable staff and pursue a decentralised strategy
in which regional offices were given a much more
important role in levy collection. Under this present
system, hotels and restaurants are required to pay a
levy of 2 per cent on gross sales on accommodation,
food, drink and any services.52 The majority of
resources are used to support the Kenya Utali College
which has gained the reputation of being one of the
leading providers of TVET in this sector for the region.
The important lessons of the CTDLT Levy
Trust relate to the careful way in which the
decentralisation process was managed and to
the introduction of effective legislation to ensure
compliance with levy payments. During the policy
of decentralisation there was a careful sensitisation
of employers, involving their participation in the
process and also informing them about the benefit
of the levy. At a later stage the contributors,
including SMEs, were represented on the board of
directors, helping to promote good governance
in the system. By the 10th of every month, each
employer in the sector is required to make a levy
payment to the bank and provide their regional
office with a payment slip. In turn the field officers
provide monthly electronic reports to the head
office, enabling performance monitoring to occur
and any payment difficulties to be identified.
When an employer fails to make a payment for 3
 Annex I: Case Studies on How a Selection of African Economies Approach Sector Skills Development \ 73

Figure A1.2.  Payments made by sector broken down by activity in Kenyan shillings
for 2006/2007

months it is referred to the legal department where
appropriate sanctions are issued, which may involve
fines. Prior to 2007 the penalty for defaulting on
a levy payment was KSh5,000, but this was raised
to KSh20,000 and a cumulative fee of 3 per cent
for each month in which the levy was not paid.
Understandably, this acted as a stronger incentive
for employers to meet their monthly payments.
These measures helped to raise the size of the levy
fund from around KSh80 million to KSh370 million in
the space of 3 years.
More recently the Trust has also diversified
their existing activities and started to think
about the future. The Trust is now funding an
export marketing board for tourism and is also
investigating the possibility of setting up a revolving
loan fund to enable learners to study at the
Kenya Utali College. In theory this could help to
ensure the long-term sustainability of this training
institution and also free up resources for other
strategic activities.
Management, governance and
funding issues
The management and governance structures
for NITA, as well as for the CTDLT, have been
highlighted in preceding sections. NITA is a semi-
autonomous organisation governed by a board of
11 members, of which 3 represent the interest of
employers, 3 represent union interests, 3 represent

Figure A1.3.  Employers registered for the industry levy broken down by size category
for 2006 and 2008
74 \ Mapping Sector Skills Development across the Commonwealth
government Ministries and the remaining 3
represent other stakeholders.53 The DIT, reports to
NITA and consists of the following departments:
Office of the Director General; Finance and Levy
Administration; ICT; HR and Administration; Internal
Audit; Public Relations; Legal Affairs; Industrial
Training; and Supply Chain Management.
A total of five Industrial Training Centres (ITCs)
formerly known as National Industrial Vocational
Training Centres (NIVTCs) operate under NITA and
offer training in the following engineering trades
at craft level: building, mechanical, electrical,
electronics plant and automotive, refrigeration and
air conditioning, boiler maintenance, refrigeration
and air conditioning.
The funding for industrial training comes from a levy
paid by employers. All employers are required to
pay NITA a monthly levy of KSh50 per employee on
or before 10th of the following month. Payment of
the levy due should be accompanied by a monthly
return in the prescribed form. Subject to approval
by NITA, employers who are registered with NITA
and are up to date on levy payments can get
reimbursement for training provided when they
meet certain conditions.54
Lessons from the sector-based approach
One of the overriding lessons from the sector-
based approach in Kenya is the funding model that
was used by the former DIT/NITC. The evidence
showed that employers and stakeholders in each
sector could determine the most effective means
by which to collect funds based on the sector’s
characteristics. Examples of how the different
committees structured their levy payments are
as follows:
• Chemical manufacturing, general processing
and allied industries – Employers are required
to pay KSh125 in respect of each employee
per month, twice yearly.
• Plantation, agricultural and allied industries
– Employers are required to pay a levy at the
rate of KSh4 for every metric ton of products
produced by an employer in a month.
• Building, construction, civil engineering and
allied industries - Employers are required to
pay the levy set at the base of 25 per cent
of the total contract price, or the estimated
costs where it exceeds KSh50,000.
Each sector has specific needs and characteristics,
and only those working in the sector have
an appreciation and understanding of these
specificities, particularly with regard to the most
appropriate ways of raising revenue from employers
and the type of training that they require. This
mechanism is equitable, as it is based on the ability
of a sector to raise the revenue and not on a head-
count approach which depends on the number of
employees working in the sector.
The use of the levy in the tourism sector also offers
useful lessons. The autonomy given to the trust and
the careful management of the decentralisation
process are cited as the reasons for its successful
implementation. As a consequence, this has
enabled the Levy Trust to employ more suitable
personnel to support the decentralisation process,
as well as to ensure improved collection and more
importantly an effective utilisation of funds.
There are a number of significant limitations to the
DITs/NITCs sector-based approach, in relation to
both the design and implementation of the skill
model. On the design front it was good to have a
system that allowed stakeholders to determine
their own needs in the sector, especially around how
the resources are raised. However, in a developing
country with a small industrial base it is questionable
whether it was possible to have 10 or more sector
committees that are sustainable over the longer
term. The setting up of 10 committees created a lot
of bureaucracy and in part explains why a decision
was taken to disband the sector committees.
Another drawback of the sector-based approach
was the limited cooperation between industry and
TVET providers. Under the levy-based approach
the majority of training had to occur at specified DIT
providers and institutions overseas, which resulted
in limited opportunities for cooperation between
providers and industry. In most instances these
providers also focused on only short courses and
there were limited incentives for actual collaboration
between employers and TVET providers in the
delivery of skills in Kenya. The continued separation
between what is called industrial training and TVET
also prevents the continued discouragement of
links between providers and industry.
 Annex I: Case Studies on How a Selection of African Economies Approach Sector Skills Development \ 75

Mozambique and sector skills external aid and large foreign investment projects,
commonly referred to as the ‘mega-projects’
development: One step forward
(Andersson 2001).
and two steps back?55
However, despite this impressive growth in the
Introduction economy, it has not translated into lifting a larger
proportion of Mozambicans out of poverty. From
The development of a sector-based approach
1996 to 2003, the proportion of people living in
to planning or delivery of skills in Mozambique will
poverty declined from 69 per cent to 54 per cent,
take time to emerge into a robust system. The
and inequality, measured in real consumption,
country has a few key priority growth sectors which
diminished across provinces and regions, but,
are driving their own skills development initiatives.
according to UNESCO, monetary poverty rates
Considerable support from international donors
actually stagnated during the period from 2002/03
has helped address some of the critical supply-
to 2008/09, with the poverty head-count ‘stuck’
side constraints, but little action has been taken
at around 54–55 per cent of the population and
to realign the supply of skills to actual demand
the poverty gap (the average distance of the poor
in the market. The lack of a coherent approach
from the poverty line) also remaining more or less
to sector skills development reflects both a lack
unchanged at around 21 per cent of the poverty
of capacity within the government system and
line. In some provinces and in rural areas generally,
also the priorities of the political leadership of the
the poverty levels actually increased over this
country which interprets the term ‘reform’ to mean
period (UNESCO 2014). This has been attributed
the expansion of the supply network of TVET
to the fact that most of the growth has come from
institutions in order to accommodate an increasing
investments in ‘mega-projects’ and extractive
population of post-primary school learners. The
industries that have weak linkages to the rest of the
country is about to embark on the implementation
economy, generating few jobs.
of a new round of reform measures to support
private sector initiatives and strengthen PPPs. Only A recent household survey (INE-INCAF 2012) put
time will tell if they are able to implement a more the population of Mozambique at 23.43 million
systematic approach and enable the private sector (in 2013), out of which 11.5 million are estimated
to play a more meaningful part in the governance to be the economically active population (EAP).
and planning of the TVET system at the sector level. Over the next 5 years, the population is projected
to grow to 26.23 million. Unemployment in urban
Setting the context and levels of youth areas is estimated at 34.9 per cent, whereas for
unemployment young people aged 15–19 and 20–24 years the
unemployment levels are 46.6 per cent and 31.6
Mozambique is widely regarded as one of the
per cent, respectively (INE-INCAF 2012). The
best examples of a post-conflict country which
vast majority of the workforce (72.6 per cent)
has managed a relatively successful transition to
is engaged in the agricultural sector, primarily
democracy and a market economy. Since the end
working as subsistence farmers in the informal
of the civil war in 1992, the country has managed
economy, followed by the trade and services
to sustain a period of rapid economic growth.
sector which account for another 23 per cent.
Between 1997 and 2004, GDP growth averaged
The manufacturing, mining and construction
9.4 per cent, one of the highest growth rates in
sectors account for only about 4.5 per cent of the
sub-Saharan Africa. Over the past decade, GDP
total workforce (INE-INCAF 2012). By most official
growth has averaged 7.2 per cent and is projected
accounts, employment growth in the formal sector
to grow at even higher rates with the increased
is unlikely to be able to absorb the 300,000–350,000
export revenue deriving from new resource projects
young people entering the labour market each year
coming into full production (African Development
(African Development Bank 2012) and, therefore,
Bank 2012). Substantial economic growth has also
like many other countries in Sub-Saharan Africa,
been registered in construction, tourism, certain
the informal economy will continue to be the final
manufacturing sub-sectors (especially in food/
destination for the vast majority of job seekers.
beverages and base metals), transport, services
and certain agricultural sub-sectors. Key factors
in the country’s recovery include a combination of
76 \ Mapping Sector Skills Development across the Commonwealth

Projected and planned investments provide a proxy their own specialised training centres; and (iv)
of which sectors will generate employment growth the private sector which includes some company
in the future. According to the Instituto de Estudos training centres, non-governmental organisations
Sociasis e Economicos (IESE), an independent (NGOs) and church-based organisations.
research foundation which conducts research into
social and economic policy, based on current trends Technical education
in growth and investments, most new growth
The largest single provider of TVET courses is
is expected to be concentrated in the following
the Ministry of Education which offers full-time
economic sectors over the next 10 years: mining,
pre-employment technical education course
oil and gas; base metals production; forestry and
programmes to school-age children through a
wood products; food and beverage manufacturing
network of 76 schools distributed between two tiers
(primarily sugar, beer and cotton); building and
of institutions: Escolas Profissionais from Grades
construction (residential housing and public
8–10 (corresponding to junior secondary high
infrastructure); transport and storage (logistics),
school) and higher level Institutos Medios which
financial services and tourism. However, with the
are equivalent to upper secondary school (World
notable exception of the finance sector, growth in
Bank 2004; Machin 2007). Student enrolments
these other sectors is mostly contingent on the
exceeded more than 50,000 students in 2012, of
expected growth in the extractive resources sector.
which females account for less than 30 per cent
The rapid growth in the economy generally and (Mozambique Ministry of Education 2013). This
in the resource sector in particular is posing number represents about only one per cent of the
considerable new challenges for the Mozambican total student enrolments in primary, secondary
government in terms of carrying out reforms to its and technical education combined, although, more
TVET system for ensuring that there is an adequate significantly, it is about 15 per cent of the total
supply of skilled labour to meet the demand for secondary-level student population. Across the two
skilled employment in these new industries. tiers of schools, more than 50 courses are provided
for subject areas in four broad disciplines, namely
Overview of the skills industry, agriculture, tourism and administration and
development system management.58 In the past decade, with support
from international donors, about 20 schools have
The TVET system has been slow to respond to
been rehabilitated and re-equipped, while the
changing labour market demands in the formal
curricula at both institutional levels have been
sector. Interviews with employer bodies and
reviewed.59 At Instituto Medio level, this review
anecdotal information from donor organisations
has involved converting the curricula in some
point to a mismatch between the labour supply
subject areas to a competency-based approach
and the evolving needs of the labour market which
which has also included the jettisoning of many
increasingly requires more skilled workers (World
general education subjects so that the training
Bank 2004).56 Employers across all sectors are
corresponds with skills requirements for about 24
generally dissatisfied with the quality of graduates
defined occupational outcomes. However, these
emerging from government education and training
new curricula are still not being applied widely in
institutions. A representative of an employer
all the Institutes and, for some subject areas such
body representing manufacturing employers
as building and construction skills, it has not been
(Manufacturing Industry Association (AIMO)) stated
renewed at all. The first graduates benefiting
that a common practice of employers is to hire
from these changes have started to emerge from
graduates from technical schools and then retrain
the (PIREP pilot) institutions in 2014. At Escolas
them in-house and/or private training centres (of
Profissionais level, the new revised curricula is
which there are not many) (FAN 2014).57
not competency-based and still includes a mix of
TVET in Mozambique is offered through (i) technical and general education subjects. 60
government technical schools and institutes
There is no evidence that the Directorate of
managed by the Ministry of Education; (ii) a smaller
Technical Education routinely commissions studies
number of government training centres managed
on the demand for skills in the labour market
by the Ministry of Labour; (iii) other Ministries such
and, accordingly, in the absence of any student
as Agriculture, Transport, Public Works which have
tracer studies since the new curricula has been
 Annex I: Case Studies on How a Selection of African Economies Approach Sector Skills Development \ 77
introduced, there is still some uncertainty on
whether the new courses, at both tier levels, are
more responsive and relevant to the needs of the
private sector. This evidence will emerge only in the
next few years.
Vocational training
The largest provider of vocational training is the
Institute of Employment and Training (INEFP), an
agency that falls under the responsibility of the
Minister of Labour. INEFP manages 16 employment
and training centres (Centros de Formacao
Profisional) (CFPs) that provide practically oriented
vocational courses for unemployed out-of-school
youth. For a long time, many CFPs had been
severely underutilised, owing mainly to the shortage
of government funds to pay for equipment and
tools, training materials and the subsidies for
out-of-work learners (World Bank 2004; Machin
2007). However, in recent years, at least six of
these facilities have been fully rehabilitated and
re-equipped with financial support from donors and
the private sector with financial support from PIREP
and some private resource sector companies.
According to INEFP, there are over 200 registered
private training providers operating in the country
offering specialised training programmes for
their private sector clients in both the formal and
informal economies, although details about their
activities are not routinely captured and updated so
it is very difficult to make any assessment of their
coverage or impact.
In urban areas, a small private (for profit) training
market is slowly developing, serving school
leavers, companies which send their staff for skills
upgrading and other target groups who are able to
afford commercial tuition rates. In addition, there
are a significant number of NGOs and churches
which cater for poor marginalised groups in the
community, mainly in the rural areas. Finally, some
of the larger firms run in-house training centres for
their own employees (e.g. sugar and mining).
The development of a sector-based
approach to skills development
Over the past decade, the Mozambican
government has set about making changes to
the public TVET system and addressing some of
the challenges outlined above, with an emphasis
on renovating training facilities and renewing the
curricula. Not all of these interventions have been
successful and the pace of change has been slow
overall and significantly delayed, with the result that
despite an outlay of US$87 million of government
and donor money, many of these reforms have
been implemented on an ad hoc and haphazard
basis as a result of a lack of proper planning and
coordination. Moreover, the effectiveness of these
reforms has been difficult to measure in terms of
their impact on quality, employment outcomes and
employer satisfaction.
Throughout this reform process limited attention
has been given to supporting measures which
enable private sector actors to become involved in
shaping the outcomes and deliverables of the new
TVET system. As a result, there is still no formalised
sector-based approach to skills development. The
evidence suggests that in some donor-funded
projects there has been a piecemeal attempt to
engage the private sector in the development
of skills standards as part of a curriculum review
process but without any further attempt to actively
engage them in a proper sector skills planning
initiative, whereas in other donor projects there has
been no attempt to engage the private sector at all.
The most concrete example relates to the World
Bank’s project, PIREP, which took an early initiative
to establish Sector Training Advisory Committees
(STACs) (partially populated by private sector
representatives) for the four sectors targeted
by the project: agriculture, tourism, industry
and administration and management. The main
purpose of the STACs was to advise the project’s
consultants on curriculum design and the
development of skills standards (World Bank 2006;
PIREP 2008).61 As far as can be established they
did not carry out any skills demand studies in their
respective sectors. The four STAC committees
functioned with varying degrees of effectiveness
and reliability and were able to recommend priority
(skilled) occupations for which new training courses
should be developed. Other isolated examples of
the move towards a sector-based approach include:
• A study commissioned by the ILO on the
demands for skills in the supply chain
industries servicing the mining and oil and
gas projects in two northern provinces
(EUROSIS 2014).
• Two occupational skills demand studies
commissioned by GIZ (German Technical
Cooperation) for skilled electrical/electronic
78 \ Mapping Sector Skills Development across the Commonwealth
and mechanical trades in the manufacturing
sector (Beck and Weller 2012; Beck and
Sting 2011).
• Two sector-wide studies commissioned
by GIZ/GFA Management on tourism and
hospitality and the metals and engineering
sectors (Szkolaja 2003; Balmas 2003).
More recent information suggests that there is an
increasing interest in carrying out skills demand
studies. Three new projects financed by Canada,
Norway and the Department for International
Development (DFID) (UK Aid) for the extractive
sectors are planning to conduct similar studies. In
addition, DFID is at an advanced stage of planning
for a new TVET Programme known as Skills for
Employment (S4E) to support non-state skills
training which started in early 2015. S4E will also
allocate fund skills demand studies across a number
of key economic sectors, except extractives.
Furthermore, INEFP has stated that in the last
2 years, it has entered into 12 Memorandum of
Understanding (MoU) agreements with private
sector companies in Tete, Nampula and Cabo
Delgado provinces to provide skills training tailored
to the specific skills demand needs of these
(resource-based) firms (FAN 2014).62 In addition,
AIMO (which claims a membership of more than
250 manufacturing companies) reported that it
had commissioned a joint research project with
the country’s largest trade union federation (OTM)
which is examining the potential employment
impact in the mining, construction, transport,
tourism and agricultural sectors (FAN 2014).63
More broadly, the government’s policy framework
openly encourages more private sector
engagement in the sector. Both the Ministries
of Education (2001) and Labour (2006) have
developed their own strategies which declare
that they will actively support closer participation
with the private sector in terms of governance
and planning (Mozambique Ministry of Education
2001; Mozambique Ministry of Labour 2006).
Moreover, in late 2005, the Minister of Planning
and Development in its application for the PIREP
project funding, issued a letter to the World Bank
confirming the government’s intention to ‘create
a consultative governance and institutional
framework with equal representation from
Government, industry, organised labour and civil
society organisations to lead the transformation of
the TVET training system; and to adopt a demand-
led paradigm to ensure planning and delivery of
training fully coincides with requirements of a
growing economy and changing labour market
requirements’ (Government of Mozambique 2005).
A year earlier, in July 2004, the government signed
a MOU with CT, the country’s largest employer
federation, which agreed to include the private
sector in current and/or future interventions
in the sector in developing an integrated TVET
reform programme (Government of Mozambique
2004). This partnership laid the foundation for
the establishment, a few months later, of an
Inter-Ministerial Commission for TVET Reform
or Commissão Interministerial para a Reforma
da Educação Profissional (CIREP) and a national
Public–Private Commission for TVET Reform
or COREP which was created by a government
decree, in August 2005 (Government of
Mozambique 2005).
Unfortunately, during this ‘interim’ 9-year phase,
the CIREP–COREP institutional arrangement
appears to have been largely unsuccessful, at least
in terms of the extent to which it has successfully
engaged the private sector. On the one hand, the
COREP Board has not met regularly, whereas, on
the other hand, private sector participation in its
meetings has been minimal.64 Moreover, COREP
is only an advisory body to the higher level CIREP
Committee whose membership is limited to six
government Ministers and is chaired by the Prime
Minister. In effect, any private sector initiative
generated at COREP Board level can be easily
ignored or swept aside by CIREP. In theory, the new
TVET sector governance legislation is intended
to offer the private sector a bigger role in terms of
policy-making, skills planning, quality assurance,
governance and funding (Government of
Mozambique 2014). One of proposed functions of
ANEP covered by this legislation will be to develop
a national TVET sector strategy to be built upon a
series of sector skills plans which will probably be
developed and coordinated through new SSCs.
Unless there is a sudden departure from current
thinking, the intention is that the SSCs will comprise
almost exclusively representatives from the
private sector advising the ANEP Board on issues
concerning skills and training in their economic
sector (Resolve Consultants 2010).
Although the new legislation inspires some
confidence that the reform process is still moving
forwards, the operational functionality of the new
peak governance body (ANEP) still rests upon both
 Annex I: Case Studies on How a Selection of African Economies Approach Sector Skills Development \ 79
the approval of four or five separate regulations
(which are still in draft form and due to be released
for public comment in early 2015) and the approval
of an adequate government budget to sustain
its activities. However, unconfirmed reports
indicate there is presently no government budget
to support ANEP’s activities for its first 2 years
of operation, suggesting that the government
hopes to seek donor financial support to meet
its operational costs. Notwithstanding its funding
problems, it is still questionable whether the ANEP
Board will be able to operate with a reasonable
degree of autonomy from central government and
whether the private sector representatives on its
Board (including business, the trade unions and the
community organisations) will articulate a vision
for the TVET sector which will elevate its public
TVET institutions above their current levels of
mediocre performance.
Lessons from the sector-based approach
in Mozambique
The above assessment of the national TVET
system and the reform process suggests that
despite a huge investment in terms of financial and
human resources over the past decade, overall
there is still a long way to go before the private
sector can be given any assurance that graduates
entering the labour market from government TVET
institutions are better skilled than before.
There is little available evidence that the
Mozambique government presently has any
institutional capacity to carry out systematic skills
planning, sector by sector. Two attempts to address
this problem have already floundered. The first is
the failure of COREP to serve as a forum for genuine
and meaningful engagement with the private
sector. The improper selection process in which
the government actually selected and appointed
the private sector representatives undermined its
legitimacy in the eyes of many private sector actors
from the outset and it quickly became a forum
in which the ‘captured’ private sector vote was
simply used to endorse every government-driven
initiative. In this environment, no genuine process
for sector skills planning was actually encouraged
or even articulated with the result that supply-side
problems and constraints for expanding the system
continue to dominate the government’s concerns,
priorities and approach.
Another, more recent, initiative to set up a LMO
whose purpose is to provide an independent
analysis and assessment of skills demand in
different economic sectors also looks doomed to
fail. Whereas legislation has been passed to create
the LMO it does not currently have any staff or
an operational budget to carry out its functions.65
Similarly, there is no independent research capacity
at any of the country’s universities to do this work.
In summary, despite 10 years of promises and
reforms, formal institutionalised arrangements
for engaging the private sector in a process of
skills planning and other issues over which they
should have some influence – including curriculum
design, policy-making, institutional governance,
improving quality assurance and skills assessment
and certification – is still not in place. Except for
two sectors – the extractive (mining, oil and gas)
and metals and engineering – sector skills plans do
not exist and with the exception of the occasional
study funded by one or two donor and international
agencies there has been no serious attempt to map
the demand for skills across the economy, even in
the priority sectors. Moreover, the state capacity
is weak to deliver regular annual household and
enterprise surveys which can provide the basis for
good analysis and reliable skills planning.
In effect, the available evidence suggests that
despite strong policy statements from the
government and considerable donor investment
over the past decade, there has been little visible
concrete action towards establishing a sector skills
planning approach for orientating the TVET system
towards a demand-led approach. This leads to a
conclusion that unless this problem is addressed in
the next phase of reforms, the continued exclusion
of the private sector from the governance of the
system could lead to a failure of legitimacy of ANEP
and the undermining of the important supply-side
reform developments that have so far taken place.
As a way forward, the government will need to press
ahead urgently in the near future to implement its
planned proposals for TVET governance reforms
which must address the following interventions:
• Appointing an independent ANEP Board which
will comprise (at least equal) representation
of private sector representatives drawn
from a diverse group of national employer
associations and trade union organisations
who can select their own representatives.
80 \ Mapping Sector Skills Development across the Commonwealth
• Enabling the private sector to plan their
own industry/sector development skills
requirements through the creation of (well-
resourced) SSCs. Priority should initially be
given to key growth sectors. The SSCs should
exclusively comprise high-level industry
representatives that can provide advice and
feedback on skills issues both in their own
sectors and on general skills policies.
• Building the capacity of SSCs to develop
sector skills strategies and the development
of a wider national skills strategy.
• Building the capacity of the new LMO to
produce regular and well-informed labour
market publications that can be distributed
widely to interested users.
• Setting up and resourcing a small ANEP
Secretariat which is able to provide technical
support for the activities of the ANEP Board,
the SSCs, the administration of the TVET
qualification framework and the management
of a National Skills Fund (NSF).
• Developing the capacity of ANEP Board
members, ANEP secretariat and SSCs to
develop policies and plans which respond
to the demand for skills in priority sectors
and which can incentivise public and private
training institutions to orientate their course
programmes towards supplying skilled
graduates for priority occupations identified in
the sector strategies.
• Providing sufficient operational budget and
technical support to commission studies that
can assess the demand for skills in specific
economic sectors.
Sector skills planning in South
Africa: One of the most
comprehensive and strategic
approaches?66
Introduction
South Africa has one of the largest economies in
Africa. Since the end of apartheid the government
has made enormous progress in improving
living standards and managing public finances.
Extensive reforms have also occurred to the skills
development system and good progress has
been made in improving access for disadvantaged
groups. Initial structures established at the end of
apartheid, included: an NSA, an NSF and 26 SETAs.
After 10 years of rising levels of youth
unemployment, not to mention rising skill
shortages, there are severe criticisms of the current
approach. This has resulted in the responsibility
for SETAs being transferred to the Department
of Higher Education and Training (DHET). The
skills system is in the process of systemic reform
and links are being strengthened between the
workplace and the formal education system. The
SETAs are expected to have a key role in developing
a more unified education and training system and
tackling the lack of basic skills among youth.
Setting the context and the levels of
youth unemployment
Following the end of apartheid, the government
implemented the Growth, Employment and
Redistribution (GEAR) programme. The key
objective of GEAR was to stimulate growth above
6 per cent and also to create over 500,000 jobs.
Unfortunately, GEAR managed to achieve only
a 3 per cent growth and the impact of tackling
unemployment has been made worse by the
financial crisis. Currently, the government has
replaced GEAR with a National Development Plan,
but the principles remain the same.
The recent financial crisis has impacted negatively
on unemployment levels in South Africa, with
numbers reaching 5.2 million. These figures are
the highest since records began in 2008 and youth
unemployment levels have escalated to around 50
per cent.67
Part of the explanation for the rise in youth
unemployment could be found in the youth bulge.
The rate of population growth in South Africa is
twice that of more developed countries, with an
estimated 20 per cent of the country’s population
aged between 15 and 24 years. Evidence suggests
that demographics alone cannot solely account for
the recent rise in youth unemployment68, 69.
The lack of qualifications of youth entering the
labour market in South Africa can also partly
account for why youth are not finding productive
employment. A worrying statistic is that 7.6 million
youth are in the category of NEET.70 There is no
doubt that this would affect their employability.
 Annex I: Case Studies on How a Selection of African Economies Approach Sector Skills Development \ 81

An overview of the skills development their sector, ensuring that it is able to respond to
system the needs in the sectors. The SETAs do not develop
standards or deliver training.
At the end of apartheid considerable resources
were invested to reform the skills development The origins of the current SETAs can be traced back
system, with a considerable effort being placed on to the Skills Development Act of 1998,72 which had
how to introduce a new approach to skills planning the following objectives:
and an information system to help understand
• to develop the skills of the South
what skills are in demand. This process of reform
African workforce;
was managed by the Department of Labour and
saw the setting up of an NSA, the SETAs and three • to encourage employers to take a more active
successive National Skills Development Strategies role in skills development;
(NSDSs) plus a series of sector skills plans. These
• to encourage workers to participate in
reform processes are undergoing systemic reform
learnerships73 and other training programmes;
with responsibilities for skills development being
transferred to DHET. • to improve the employment prospects of
people previously disadvantaged;
A number of other interventions have been recently
implemented to help young people enter the labour • to ensure the quality of education and training
market. One of the key interventions has been in the workplace.
the recent reform of the TVET colleges. Under
Against this background a whole series of new
the recent post-secondary schooling reforms, the
policies, institutional structures and mechanisms
TVET colleges have rebranded to form Further
were established. In order to guide the process
Education and Training (FET) colleges and mega
of reform an NSA was created, consisting of
campuses have been established (containing 50
representatives from organised labour, business,
or more FET colleges). Under these reforms the
government and other bodies. Under the 2008 Act
FET colleges are supposed to provide vocational
the key functions of the NSA were to develop an
training that responds to the local labour market
NSDS and to liaise with SETAs on skills development
needs. The FET colleges now work with the SETAs
policy and the NSDS.
to determine their skill requirements and develop
appropriate qualifications. Since the establishment of the NSA there have
been three consecutive NSDS. NSDS I focused
The extent of the government’s commitment to
more on skills development in the workplace
tackling the problem can be seen by reference
and emphasis was given to enterprise-based
to recent budget figures. In 2014 the treasury
training. The most recent NSDS III (2010–15)
provided US$21.8 billion to target improved
has changed the emphasis towards support for
education infrastructure, in particular to tackle
institutional-based learning linked to occupationally
literacy and numeracy skills.
directed programmes.
The development of the sector skills Currently, the sector-based approach is in the
system process of systemic reform and has been driven
by two key issues. The first was the transfer of
A key structure within the post-apartheid skills
responsibilities for skills development from the
systems is the SETAs. These replaced the former
Department of Labour, to the Department of
ITBs and were more inclusive, with representation
Higher Education and Training. The second was
from unions and employers on their Boards. Initially,
the recent White Paper that outlines a future
a total of 23 SETAs were established and every
vision for the country’s post-secondary education
industry and occupation in South Africa is covered
and training system.74 Reference will be made to
by one of the SETAs. Each SETA is responsible for
the past experience under the Department of
developing a sector-based skills plan (SSP) and
Labour, as well as the implications of the proposed
working with employers, as well as providers, to
future reforms.
facilitate their implementation71. The SETAs’ plans
are supposed to coordinate skills development in Under the 2013 white paper on post-secondary
education and training, the roles and functions of
the SETAs are also expected to change further.
82 \ Mapping Sector Skills Development across the Commonwealth
Emphasis is now being given for SETAs to work
more closely with FET colleges to help tackle some
of the systemic skill shortages in the economy.
Particular emphasis is given to the SETAs to help
FET colleges identify their skill requirements,
develop programmes and learning materials, as well
as improve the working relationship between FET
colleges and employers.
As outlined above the management and
governance arrangements for the SETAs are in the
process of changing. Under the Skills Development
legislation, the SETAs reported to the NSA, but lack
of capacity has prevented this organisation from
meeting this mandate. Now the line functional
managers and the DG are performing this task
at DHET.
Under the Skills Development Act of 1998 the
SETAs are still required to develop their sector
skills plans, but they have to report to DHET
(see Figure A1.4). Within this approach DHET is
now responsible overseeing the development
of national- and sector-level plans. There are
plans to establish a new planning framework, also
encompassing provincial level planning, as well as
enrolment level planning.
Under the current structures the SETAs are still the
key institutions tasked to understand current and
future skills in demand in their sector. The SETAs
are supposed to identify priority skill areas for their
sector, develop plans and identify strategies to
tackle their shortages or gaps. Other important
partners in this process are the education and
skill providers who work with employers to deliver
the skills.
Subsequently, each year the SETAs were required
to provide an update of their plans and ensure
alignment with any major changes occurring in
their sector. These updates were intended to
provide signals to providers and learners about skills
currently needed, as well as those in oversupply.
Besides the actual development of the Sector
Skills Plans, the SETAs play an active part in the
development of learnerships. Each SETA is
responsible for developing learnerships in their own
sector. The SETAs must develop the learnership in
conjunction with other stakeholders, employers and
unions in their sector. The learnership replaced the
former apprenticeship system and were supposed
to provide an accessible programme, combining
practice and theory, development of basic and
core skills (including literacy, numeracy, IT and team
skills). When they were introduced there were two
types of learnerships, one for young people leaving
the formal education system and another for those
who were unemployed.75
Skills development in South Africa is funded
through a levy on enterprise payroll. Under the
Skills Development Levy Act if a company’s payroll
exceeds R500,000 per annum the enterprise must
register with SARS and pay a 1 per cent levy of their
payroll to support training in their sector.
The collected levies are paid into a special fund
at SARS and 80 per cent of the money from this
fund is distributed to the different SETAs and the
other 20 per cent is paid into the NSF. Under this
arrangement, enterprises are entitled to claim back
50 per cent of their levy funds from their SETA
provided that certain conditions are met.
The SETAs must pay a grant to employers in their
sector who appoint a Skills Development Facilitator
for employee training. An employer can also
get back 50 per cent or more of the levies they
paid to SARS from the SETA provided they offer
specified training which is developing their own
employees’ skills.
The 20 per cent paid into the NSF has been used to
fund special projects. This fund was established in
1999 in terms of the Skills Development Act 1998
to support the implementation of the NSDS and
seeks to address the structural deficiencies of the
labour market. It also aims to develop a workforce
that can respond to the modern economic
environment, taking into account the equity
considerations that are peculiar to South Africa.
This is achieved through the funding of projects or
initiatives that are viewed as priorities or to support
areas defined under the NSDS.
The system of funding is also in the process of
change as a result of the 2013 White Paper. A
task team was appointed in 2011 to review the
NSF and the NSA. Under these proposals it also
recommended that SETAs receive a reduction in
the portion of their levy they can claim back. At
the same-time the report recommends that the
NSF should receive a larger allocation of the levy
funds and that they are used to support more
formalised training.
No comprehensive implementation of the recent
recommendations has occurred, but adjustments
to the levy system have been gazetted. This has
 Annex I: Case Studies on How a Selection of African Economies Approach Sector Skills Development \ 83

resulted in more prescription of the types of professional workers across all occupations. Even
training that SETAs should deliver. For instances, the Department of Higher Education and Training
SETAs are directed to allocate 10 per cent of their has developed its own list of scarce skills.
mandatory grant to PIVOTAL76 programmes. SETAs
The lack of confidence in the scarce skill lists is
are also required to support public providers in the
partly a reflection of the poor plans produced by
first instance.
SETAs. A number of studies have confirmed that
plans produced by SETAs vary in quality, and in
Lessons from the sector-based most instances there is evidence of difficulties in
approach in South Africa identifying priority skills areas, particularly those
that require investments over the longer term.
There is no doubt that the South African approach
According to the different reviews, limited planning
to sector skills development is one of the most
is taking place at SETAs, which face a significant
comprehensive globally. At the level of planning
problem in terms of inconsistent and invalid
this represents an example of best practice.
information. Understandably, this means that most
The country has achieved a major reform of the
plans were not comparable, making it difficult to
country’s skills development system in a short
identify collate and analyse valid information on
space of time and the SETAs have had a key role in
scarce skills.
driving this process.
Another significant issue is the fact that the vast
However, evidence on the performance of the
majority of sector skills plans focus their attention
sector-based approach is not as good. This can
on the current patterns of skills availability and
be seen by looking at whether the right quantity
limited focus is given to research on future skill
and quality of skills are being produced for the
requirements. This is worrying, as emphasis should
labour market system. Reference to the continued
be given to those skills that take time to develop,
publication of lists of scarce skills would raise
and plans should reflect this.
questions about the effectiveness of the current
approach to sector skills planning.77 For instance, The continued existence of skills shortages
the Manpower Group in South Africa undertakes an suggests that inherent problems exist in the
annual survey of scarce skills and, according to this planning process and in identifying skill shortages.78
research, there is a severe shortage of professional Initiatives that aim to rectify these problems have
engineers. In another list of scarce skills produced been implemented, but often the issues have
by Adcorp Employment there is high demand for been studied in isolation (e.g. SETA performance
Figure A1.4. An Outline of the process involved in the development of sector skills plan
Figure A1.4.  An outline of the process involved in the development of Sector
Skills Plan

DHET NSA/NSF NSDS

Improved
match
between
SETAs SSPs supply and
demand for
Other
skills at the
HEMIS Government
national
Departments
and sector
E and T WPSP
Enterprises
Providers
levels

Other data providers

– e.g.
Statistics South Africa

Structures responsible for producing Mechanisms for planning skills Skills plans produced for
data, intelligence and signals from development different levels
the labour market
84 \ Mapping Sector Skills Development across the Commonwealth
reviews) and are not based on a holistic or systemic
perspective. From the review of the evidence,
there are three major contributory factors that can
account for the current situation, namely:
• the unrealistic assumptions upon which skills
planning and structures for data collection are
based;
• the philosophical assumptions underpinning
the skills development model in South Africa;
• the failure to develop effective links
between the skills development and the
education sectors.
Unrealistic assumptions underpinning
skills planning
At the heart of the problem surrounding skills
planning are the large number of tasks that the
SETAs are expected to perform. In theory, the
planning mechanism is comprehensive and
enterprise plans are expected to be fed into Sector
Skills Plans, which in turn are supposed to feed into
the NSDS.
However, the top-down, bottom-up approach
to planning does not work in accordance with
these expectations. There have been problems
at all stages of this planning process. The initial
workplace skills plans (WSPs) were supposed to
help determine skill needs at the enterprise level.
As mentioned previously a financial incentive was
provided to encourage enterprises to submit their
plans to SETAs. However, the period between
submission and approval of plans became too long,
and so the condition of approval was removed.
Moreover, the WSPs became more concerned with
documenting delivery rather than identifying future
or anticipated skill needs at the enterprise level.
Difficulties were also experienced at the SETA
level using top-down information from the NSDS.
The problem stemmed from the difficulties of
reconciling equity goals with those of productivity
and meeting industry needs. For instance, as long
ago as 2008 a Development Policy Research Unit
(DPRU) study argued that tensions exist within the
NSDS, particularly around reconciling the need to
support improved productivity and competitiveness
of employers, and at the same time supporting
the quality of working life and labour mobility
(DPRU 2008).
Another problem with the current mechanism is the
capacity of the SETAs to develop their own plans.
Despite the development of guides to support
this process, it is clear that SETAs do not have the
capacity or the expertise to develop complex plans
or undertake forecasting on future needs. The
expertise of planning and labour market analysis is
also a key skill shortage in most countries and it is
questionable whether the SETAs would be able to
develop this capacity (or whether it is realistic to
expect the SETAs to carry out such functions).
Another design problem relates to the availability of
data. It was envisaged that Statistics South Africa
could provide data that could be used by the SETAs
for compiling their sector skills plans. However, in
reality there was limited alignment between sectors
and occupations as covered by the official statistics,
and the operational coverage of the SETAs. Another
significant shortcoming of data from Statistics
South Africa was the lack of time series data which
prevented many SETAs from analysing how demand
changed over time, which is one of the key ways by
which to understand where demand for scarce skills
can be found at the sector and national levels.
Another signal for planning was supposed to have
come from the DTI. A look at the DTI webpages
reveals that they have many different strategies,
ranging from SME development and industrial
development, to trade and exports. It is difficult
to determine which ones are most appropriate to
SETAs and to interpret their implications for specific
sectors. Clearly, the SETAs should not be expected
to compensate for the lack of government links and
effective information sharing at the national level.
It also worth noting that the overall mandate of the
SETAs is too ambitious, and it is easy to understand
why they experience problems in data collection,
planning and other areas of work they are expected
to perform.
Philosophy underpinning the
South African mechanism for
planning skills development
A final issue relates to the philosophical
assumptions underpinning the skills planning
mechanism. This is not just a theoretical or
academic argument, as any assumptions
underpinning a skills system influence the way in
which institutional structures relate to each other,
as well as the types of mechanisms and processes
that are subsequently established.
 Annex I: Case Studies on How a Selection of African Economies Approach Sector Skills Development \ 85

The current philosophy underpinning the voluntary

or market-based approach has helped to contribute
to a supply-led skills development environment in
which there is a limited understanding of priority
skill areas, few linkages with industrial development
needs, and a general failure to anticipate or forecast
future scarce skills. The latter issue is particularly
important and helps explain why South Africa
continues to experience skill shortages and fails to
identify skills that take a longer time to develop.

The failure to develop effective links

between skills development and the
education sector
A final issue worth noting is the lack of effective
links between skills development and the formal
education system. In part this reflects historical
circumstances under which skills development
in the workplace operated under the remit of
the Department of Labour, and further/higher
education reported to the Department of
Education. Each system operated in its own silo,
with separate funding mechanisms, regulations and
systems of delivery.
The dual system of delivery created a situation in
which providers operating under the formalised
education structures had limited links with the
workplace, while skills development in the workplace
had limited links with formal providers, creating
the worst of both worlds. Fortunately, this is being
addressed under the current reforms and moving
of the skills development to DHET will remove this
dual system of delivery. The 2013 White Paper on
post-schooling outlines the revised functions of
the SETAs to work with FET providers to identify
skill needs and also support the development
of qualifications.
86 \ Mapping Sector Skills Development across the Commonwealth
Annex II: Case studies on How
a Selection of Asian Economies
Approach Sector Skills
Development
The sector-based approach of India: the Leviathan awakes
Introduction
The impressive economic growth levels achieved
by India in the 1980s and 1990s were eventually
constrained by the country’s failure to supply its
new industries with a skilled workforce (World Bank
2007), which was primarily a result of structural
weaknesses in the country’s national TVET
system. These weaknesses were highlighted in
two successive government Task Force reports
published in 2001 and 2007 that emphasised the
need for the private sector to take a lead role in skills
development policy and planning (Government
of India 2001; 2007). Against this background,
and with the support of the World Bank and
the Asian Development Bank, the government
embarked on an ambitious project to reform the
country’s national TVET system and provide a solid
foundation for the next phase of the country’s rapid
economic development.
At the heart of these TVET reforms is a new
network of SSCs whose purpose is to advise the
government on skills policy, to make forecasts
about the demand for skills within their sectors and
to support vocational training providers in both
improving their capacity to supply a larger number
of skilled workers to the workplace and ensuring
that the quality of their training programmes are
aligned to industry standards.
The scale of the measures to be taken under these
reforms is very ambitious, with plans to train in
excess of 1.5 million people per year (National Skills
Council 2009) which, if successful, could lead to
India becoming the second largest economy in the
world within 30 years. However, a key concern is
whether the new SSCs can provide the necessary
expertise and organisational capacity to produce
the skilled workforce on the scale required to satisfy
the country’s quest for growth.
Setting the context and the extent of
youth unemployment
India is the second most populous country in the
world with a steadily growing population, which is
currently estimated to be 1.2 billion people and
accounts for 17.5 per cent of the global population
(Sinha 2013).79 According to the International
Monetary Fund (IMF), India is also the second
fastest growing country in the world after China and
is projected to become the third biggest economy
by 2030.80 The country has steadily grown by an
average rate of 10.3 per cent GDP per year over the
period 2001–10 and slowed recently to 6.6 per cent
in 2011, and 5 per cent in 2013. GDP per capita was
around USD$1,500 in 2012/2013. Agriculture is still
the largest sector but is steadily declining as the
economy grows, with manufacturing accounting for
14 per cent and services for 34 per cent of the total
share of GDP in 2010.81
In 2010, the Indian labour force consisted of 761
million people and is expected to rise to 869 million
by 2020 (CRISIL 2010), of which 94 per cent are
working in the informal economy. The labour force
participation rate is 84.6 per cent for males and 35.3
per cent for females. Around 85 per cent of total
female employment and 79 per cent of total male
employment can be found in the informal sector.82
The World Bank estimates that unemployment
rates have remained stable at 3.6 per cent in
2012–13, with female unemployment declining
slightly from 4.4 per cent in 2010 to 4.0 per cent in
2013. Youth unemployment levels have averaged
10 per cent over the past 10 years, reaching 10.5
 Annex II: Case studies on How a Selection of Asian Economies Approach Sector Skills Development \ 87
per cent in 2013. Although there are enormous
gender differences in youth labour participation
rates, ranging from 80 per cent for young men to 27
per cent for young women, there is no significant
gender difference in youth unemployment rates,
with unemployment for females being 11.3 per cent
in 2013.83
The number of new entrants to the labour force
each year is 15 million people, of whom only 3.5
million are able to access vocational training
courses, compared with 11 million people in China
and 11.3 million people in the USA (Government of
India 2007). Overall, it has been estimated that only
2 per cent of the total workforce has participated
in some form of post-secondary education and
training compared with the workforces in Germany
(75 per cent), the UK (68 per cent) and South Korea
(96 per cent) (Government of India 2007; UNDP
2011). One reason is the generally low education
attainment rate.
Only 24.8 per cent of rural females and 59.1 per
cent of urban females are literate, whereas for
males the rates are 47.6 per cent and 74.0 per cent
respectively (National Sample Survey Organisation
2010). Many illiterate people find employment in
the crafts sector, the second largest sector after
agriculture. However, according to the CEO of the
NSDC ‘there are deep rooted misconceptions that
skill –related training is only intended for those who
could not make it in the formal system (which) has
affected enrolments at VE facilities with admission
continuing to be seen by many as a last resort’.84
Employers across all sectors of the economy
complain of a shortage of skilled labour. A survey
undertaken by the NSDC in 2010 indicated that
there would be a skills gap of about 250 million
people in 20 high-growth industries and the
unorganised sector, by 2022 (NSDC 2010).
An overview of the skills
development system
The TVET system in India can be classified into
two broad categories: (i) vocational training, which
offers industrial training courses to out-of-school
youth through a network of Industrial Training
Institutes (ITIs); and (ii) vocational education, which
relates to the provision of vocational subjects as
part of the general education curricula in lower and
secondary high schools and also in some subjects
at tertiary level.
i. Vocational training
The Directorate General of Employment and
Training (DGET) within the federal Ministry of
Labour (MOLE) is the main government agency
responsible for the management and supervision
of the national vocational training system delivered
through two types of training schemes:
• The Apprenticeship Training Scheme (ATS)
has courses for 153 different trades, varying
in length between 6 months and 4 years, and
is offered to 1 million trainees per year across
28,540 training establishments. The minimum
entry requirement is completion of Grade 12
which is the end of upper secondary school.
• The Crafts Training Scheme (CTS) offers
training courses for 107 trades varying in
length between 6 months and 3 years is
offered to 7.72 million trainees across a
network of 5,114 training institutes. The
minimum entry requirement is the completion
of Grade 8, which corresponds to the end of
basic education (primary school plus 3 years
of higher school) (Government of India 2007).
Most of this training is carried out in ITIs, which fall
under the administration of state governments,
although DGET maintains 34 apex training centres
at the federal level which provides teacher training.
These institutions fall into one of three categories:
(i) Federal government-funded institutions; (ii)
State government-funded institutions; and (iii)
private, self-financed institutions. Of the 5,114
ITIs under DGET’s supervision, 3,218 are private
training institutions. In addition to DGET, another
16 Ministries offer training courses for another 1.5
million trainees (Government of India 2007).
The wider MoLE has overall responsibility
for framing policies, norms and standards
for vocational training, undertaking research
and providing support for groups with special
educational needs such as women, scheduled
castes/scheduled tribes and persons with
disabilities to enhance their opportunities for wage
employment and self-employment. The MoLE also
hosts the National Council for Vocational Training
(NCVT), an autonomous statutory body which is
responsible for (i) establishing trade testing and
certification centres; (ii) promoting the application
of technology for improving the quality of training
(iii) assessing, certifying and publishing results.
88 \ Mapping Sector Skills Development across the Commonwealth

ii. Vocational education match the 2022 target, the Indian Government
has announced that it aims to increase this training
Vocational education is provided in 9,580
capacity to 15 million per year – equivalent to
secondary high schools and 1,244 polytechnic
certifying 41,000 trainees per day over 10 years
colleges for about 1 million students (Government
– by setting up 1,500 new technical institutions
of India 2007). The main purpose of VE is to provide
as well as 50,000 skills development centres
a basic understanding of technical skills and to
(which will be established through PPPs) with an
develop generic capabilities that enable a student
expected investment of over US$20 billion annually
to function in a range of different work contexts.
(Government of India 2009). The government has
These schools offer about 150 job-oriented
also responded by increasing the number of VE
courses in the subject areas of Agriculture, Business
schools to 20,000 and increasing annual student
and Commerce, Engineering and Technology,
enrolments by another 2.5 million in 2012 with 11th
Home Science, Health and Paramedical, Social
and 12th grade students now having access to
sciences, Humanities, etc. The Ministry of Human
around 160 vocational courses. In addition, in order
Resources Development (MHRD) has overall
to give a boost to higher and technical education,
responsibility for coordinating the efforts of
the government has made plans to increase the
different players in VE at the secondary school and
number of technical universities from 19 to 30
tertiary levels through two separate departments.
(Government of India 2011).
The system described above has served
Another problem has been the poor quality
India’s industrial development needs for the
of higher and technical education. There has
past six decades, but it started to experience
been, until now, a widely held perception that the
problems following two decades of rapid
government’s ITIs have become a dead-end
growth in the 1980s and 1990s, especially in
pathway for many learners owing to their lack
key sectors like manufacturing and the IT and
of relevance and the low quality of their training
communications. These weaknesses were
programmes. The generally poor level of general
summarised comprehensively in two government
education of their student intake has frequently led
taskforce committees.
to low levels of employability of secondary school
At the very outset, however, the Task Force would and higher education graduates. One further
like to emphasise that the present state of affairs is important factor contributing to low quality derives
not acceptable for a country which seeks to become from the inadequate training of TVET teachers.
a knowledge power, a global service and manpower
Moreover, the TVET system as a whole has
provider and a leading industrial nation. There has
become highly fragmented, with a large number of
to be a paradigm shift in the national policy on skill
Ministries and agencies at both state and federal
development with the private sector playing a lead
level having some degree of involvement in TVET
role instead of the government, as they are the job
policy formulation and its implementation. The
providers. The government’s role would have to
roles of MOLE and MHRD have already been
change from being a vocational training provider to a
mentioned. There are also (at federal level) the
partner and facilitator and it is this philosophy which
Department of School Education and Literacy
underpins the Task Force Report.
(which is responsible for TVET programmes in
(Government of India 2007) senior secondary schools), the Department of
Other problems identified by the Task Force report Higher Education (for higher Technical Education),
included a mismatch between the demand for the National Council on Skills Development (NCSD),
skills and supply, inadequate capacity to meet the the National Skill Development Corporation Board,
demand, the poor quality of training programmes the Office of the Adviser to the Prime Minister
in government training institutions (except in on Skills Development, in addition to which there
some of those in the industrialised states), and the are another 20 other Central Ministries and
multiplicity of government agencies. Departments which are running their own TVET
programmes. To this number, we must add the
In terms of capacity, there are only 2.5 million
state-level Directorates of Technical Education plus
vocational training places available in the country
private and NGO providers.85
for the 15 million new entrants to the labour market
each year (Government of India 2011). In order to
 Annex II: Case studies on How a Selection of Asian Economies Approach Sector Skills Development \ 89
In recognition of these multiple layers of providers
and the accompanying problems, the government
embarked on a major reform of the TVET
system with its approval of a new National Skill
Development Policy (NSDP) in 2009 (Government
of India 2009). One objective of the new policy
was to guide the skills development strategies
and initiatives of all stakeholders in order to
‘create a workforce empowered with improved
skills, knowledge and internationally recognised
qualifications to gain access to decent employment
and ensure India’s competitiveness in the dynamic
global labour market.’ The NSDP is a wide ranging
plan addressing both supply and demand issues
at the sector level. The policy places a strong
emphasis on engaging with the private sector,
particularly in terms of skills forecasting, developing
occupational standards, working closely with VET
providers on curriculum design and training trainers,
accreditation and assessment.
The NSDP also proposed the establishment
of a new vocational qualifications framework.
The NSQF’s overall objective is to improve
the quality and relevance of training provision
and the number of certified skilled workers
in various sectors of employment in India.
The unified framework is currently being
disseminated by the Planning Commission of
India for wider consultation. The new NSQF is
organised as a series of levels of competency/
skills arranged in ascending order from RPL
1 and 2 through to levels 1–10. NSQF levels
are defined in terms of learning outcomes. It
will also open up several entry and exit points
between TVET and general education and
will facilitate movement between the two
(Government of India 2009).
Finally, the reforms also included measures to
enhance flexibility in the provision of vocational
courses by developing a ‘modular’ competency-
based curriculum in collaboration with industry. VE
programmes will be restructured with a demand-
driven curriculum, supplemented by exposure to
hands-on training in the workplace.
The development of the sector skill
systems
As mentioned above, an important objective of
the NSDP of 2009 was to seek closer partnerships
with the private sector by seeking its technical
know-how and assistance in improving the quality
and relevance of the training programmes in public
and private training institutions. The origins for
these changes can be found in a government Task
Force on Employment Opportunities set up by the
Planning Commission in 2001 which observed that:
The central government should withdraw completely
from delivery of vocational training services, and foster
autonomous professional bodies that give lead to
training institutes. The government’s role should be
one of monitoring, evaluating and assigning rating to
the private training establishments.
(Government of India 2001)
The NSDP policy allowed for the establishment
of a network of SSCs covering priority industries.
SSCs are described as national partnership
organisations that bring together major enterprises
and industry bodies in an industry sector to discuss
skill development issues affecting their industry
sector (Government of India 2009). Membership
of an SSC is limited to business and professional
associations and can include major enterprises,
industry bodies, SMEs, industry associations/
chambers, professional bodies, representative
from universities (academics), various government
departments (Ministry of Public Administration and
Home Affairs, Ministry of Labour and a relevant Line
Ministries such as Agriculture or Transport) and also
representatives from TVEC (a body representing
vocational colleges) and Univotec (a Vocational
university).86 Notably, organisations representing
labour, especially teacher trade unions and the
state governments, are excluded.
According to guidelines published by the
government,87 the functions ascribed to SSCs
are to:
• monitor and review skills development
practices in the industry and identify and
overcome deficiencies;
• develop industry-specific skills, policies
and practices;
• develop industry capability to deliver the skills
training and upgrade their employees in order
to improve productivity and enhance the
welfare of employees;
• provide leadership and strategic advice to the
skills system on skills development needs and
priorities for those industry sectors covered
by the council;
90 \ Mapping Sector Skills Development across the Commonwealth
• support the delivery of industry-relevant
training and /or professional development
programmes for instructors and trainers;
• contribute to the development and review
of skills standards and qualifications and
participate in the development and review of
new training curricula;
• advise Ministry and other key agencies on the
industry sector demand for skills;
• facilitate workforce development activities in
the industry;
• produce Sector Skills Development Plans as
required on a regular basis;
• support the strengthening of industrial
apprenticeship programmes;
• develop partnerships with training providers;
• support improvement of skills, colleges,
industry and enterprises.
An important aspect of the government’s policy is
that the establishment of SSC was not made legally
mandatory. Instead, the private sector was invited
to submit proposals to the NSDC for establishing
SSCs within a given economic sector together with
a business plan that, upon its evaluation, would be
supported with financial assistance from the central
government. What remains clear from the guideline
is that the ‘voluntary approach’ implies that in some
sectors’ SSCs still do not exist, whereas in those
in which they have been established not all SSCs
agreed to take on all the functions ascribed in the
government guidelines.
The SSCs are relatively young organisations with
an operating licence and funding for 10 years.
The NSDC reports that there are now 27 SSCs
in existence (with 4 waiting approval), although it
captures detailed information on the activities of
only 17 of them on its website.88 Most of these
SSCs were established in 2012–13 but 7 have
been in existence a little longer. The oldest one,
for the automobile sector, was established in
mid-2010 and the latest one (Hydro Carbons) was
established only in November 2014. Although
relatively young, there are extremely positive signs
that significant progress has been made. According
to the NSDC, the 17 advanced category SSCs
have already produced more than 270 QPs and
accredited hundreds of training providers.89 A QP
package is produced for each occupation (such as
an automobile technician, plumber’s assistant or
dairy farmer) and may include as many as 6–8 NOSs
together with education and training criteria on how
to assess the learner. These standards describe
the skills; knowledge and understanding that an
individual needs to have to carry out a particular
job role. For example, for a dairy farmer there are
eight standards underpinning the job role such
as ‘providing feed and water for the livestock’ and
‘health and safety in the workplace.’ The Agriculture
SSC (ASCI) has already completed QPs for 15
occupations. Its target for the next 10 years is to
complete 105 QPs. 90 The Automobile SSC (ASDC)
has completed 32 QPs already but says its target
is 50. A number of SSCs including the retail sector
have reported that they have completed 100 per
cent of their standards and QPs.
Another task of the SSCs is to accredit the training
providers which deliver the training for each
occupation/training package. Accreditation is
done for each course which means if the same
provider wants to offer multiple courses, it has to
be accredited for each course, not just once. For
example, for the ‘Automotive Body Technician Level
3’ training package, the Automobile SSC (ASDC)
has accredited 15 training providers. For its Welding
Technician training package it has accredited 48
training providers. Some of these providers are
accredited to offer more than one course within and
across sectors. One provider for example, Manipal
City and Guilds, is accredited to run courses for five
SSCs (Automobile, Telecom, Retail, Healthcare and
Jewellery). The ASDC claims to have accredited 504
providers in total and trained 1.2 million trainees in
just over 4 years, and the SSC for the retail sector
claims to have accredited 1,325 training providers
and trained more than 8 million trainees in only 3
years of operation. The target for the Agriculture
SSC over 10 years is to accredit 8,800 training
providers and to train more than 56 million people.91
Although all the SSCs have indicated that they are
closely involved with supporting training providers,
some have also taken the initiative to set up their
own academies or CoEs for their industry.
Another function of the SSCs is to accredit
assessment centres. Some training providers
also have a dual role as an assessment centre but
in cases in which the students are being funded
under the government’s Skills Training Partnership
Programme, the funding guidelines state that the
assessment cannot be carried out by the same
 Annex II: Case studies on How a Selection of Asian Economies Approach Sector Skills Development \ 91
training provider, but only by an Assessment Centre
certified by the relevant SSC. For the 32 trades
developed by the Automotive SSC, it has accredited
5 Assessment Centres. In the case of the
Agriculture SSC, for its 15 training packages, it has
accredited 20 training providers and 4 Assessment
Centres. The Plumbing SSC has accredited 2
Assessment Centres for its 25 training packages.
However, not all SSCs have developed this far yet.
The IT and Electronics SSCs (which were among
the first seven to be established) have only one
Assessment Centre each, and the Construction
SSC has not accredited any centres.
In addition to the above, four of the SSCs (auto, IT,
retail and security) have been involved in the pilot
project for setting up the new NVEQF as part of
which, new vocational courses in these four sectors
are being introduced into Grade 11 and 12 across
40 high schools in Haryana.92
Finally, many SSCs are presently in the process of
setting up an LMIS to assist in the planning and
delivery of training, identifying skills needs and
preparing a catalogue of skill types. To this end,
a donor project supported by the EU is helping
to develop a common framework for an LMIS
across all the SSCs. This project has used a skills
demand survey in the automobile sector as a pilot
case study.
As can be seen, there has been a great deal of
activity within a relatively short space of time.
The NSDC reports that since the beginning of
2011 (4 years) 17 ISCs have developed 278 QPs
and accredited 1,722 training providers and 23
Assessment centres. Under this scheme, in this
time frame, 3.5 million people have been trained
and 1.3 million people have been placed in jobs.93
SSCs operate within a wider policy environment
that also includes other actors, particularly
government regulatory and planning agencies,
state governments and public and private training
providers at local level. At the national level, there
are two important institutions which interact with
and influence the activities and functions of the
SSCs, namely the NSDC and the NSDA.
The NSDC is the main agency with which the SSCs
interact. Established in 2009, the NSDC is a non-
profit agency whose main purpose is to provide
support functions to public and private training
providers to enable them to increase their capacity
to provide quality skills training programmes on
demand from the SSCs. Its other main function is to
support the establishment of the SSCs. The NSDC
is the agency with which the SSCs must register and
from which they receive funding. Normally it has a
representative on the board of most of the SSCs.94
In addition to the designated sectors covered
by the SSCs it also supports initiatives in under-
served economic sectors. The governing body of
the NSDC has five government and nine private
sector representatives and is chaired by the former
chairman of TATA IT Services Corporation.95
Like the SSCs, labour organisations and state
governments are not represented.
It provides support through three broad functions:
i. providing funding/financing for providers
and SSCs (through loans, grants, equity
agreements) for building innovative sustainable
funding business models;
ii. providing enabling services for training
providers for developing low-cost, high-quality
outputs (through support for curriculum
development design, quality management,
standards and accreditation, etc.)
iii. fostering partnerships with industry/private
sector partners. Essentially, it is the core
agency driving the public/private partnership
engagement in the TVET sector.96
In terms of funding, the operating costs of the
SSCs are largely funded by the government
through the NSDC. Although there is no published
information on the amount of financial support
each SSC has received from the government, the
funding guidelines published by the NSDC indicate
that funds are disbursed as either loans, equity
or grants for a 10-year operating period and that
the sponsoring agency (i.e. the private sector
partners) must contribute 25 per cent of the total
operating costs.97 According to India’s Business
Standard News, the government committed 1,500
crore (equivalent to Rs15 trillion or about US$300
million) to fund the implementation of the skills
development policy during the 2009–12 period
which was used to fund 38 training proposals and
eight SSCs. A breakdown of this funding is not
given. In addition to this budget, the World Bank
has contributed another 480 crore (Rs4.8 trillion or
US$95 million)98 and the Asian Development Bank
has given another US$1.1 million to support the set
up more SSCs. 99
92 \ Mapping Sector Skills Development across the Commonwealth
The NSDA is an autonomous body comprising 11
members from various sectors which coordinate
and harmonise the skill development efforts
of the Government and the private sector to
achieve the skill targets developed for the 12th
Economic Development Plan and beyond. It also
endeavours to bridge the social, regional, gender
and economic divide by ensuring that the skill needs
of disadvantaged and marginalised groups like
ethnic minorities, women and disabled persons, are
taken care of through the various skill development
programmes. One of its main tasks is to oversee
collaboration and coordination in the development
of the vocational qualifications framework and
associated activities and policies. It has taken over
the roles of three former agencies, the NCSD, the
National Skill Development Corporation Board and
the Office of the Adviser to the Prime Minister on
Skills Development, putting the coordination of an
NSDS of the government and the private sector
under one umbrella.100
The new Qualification Framework, described
above, is the responsibility of the NSDA and is
implemented through the NSQC (which includes
representatives of key ministries, industry,
regulatory bodies, training providers, state
governments and other sector specialists). The
NSDA will consolidate the NSQF by unifying the
different learning pathways between the MOLE’s
National Vocational Qualifications Framework
and the MHRD’s National Vocational Education
Framework and facilitate the setting up of
professional certifying bodies in addition to the
existing ones.101
The NSDA is also designated as the lead agency
responsible for the development of a national LMIS.
The lack of a general LMIS until now has proved
to be a major handicap to TVET planning, mainly
resulting in a job and qualification mismatch and
poor skills planning.102
In summary, the new institutional governance
framework, as described here, is intended to
provide a platform on which to facilitate closer
partnerships between the state and the private
sector that can address the major weaknesses of
the TVET system identified earlier.
Lessons to be gained from the sector-
based approach
The Indian government’s ambitious plans to
improve its economic performance by increasing
productivity through skills development and
redressing wrongs for marginalised groups by
means of providing increased access to education
and training and decent work opportunities has
highlighted the need to make widespread reforms
to its TVET system, including the development of
the new SSCs.
In these reforms there has been a recognition of the
need to actively engage the private sector in a wide
range of skills policy, planning and quality assurance
measures; defining occupational standards and
training packages for key occupations, forecasting
sector-wide skills demand and identifying skills
gaps; developing sector wide skills strategies and
plans; accrediting providers and assessors and
assessment centres; providing support to providers
in terms of new curricula, training of trainers
and assessors.
From the available information, the SSCs appears to
have made considerable progress and a significant
impact within a relatively short space time which
points to both the high energy, dedication and
excellent organisation of the SSCs as well as
to a serious commitment by the government,
underpinned by its financial support in making these
reforms work. Although the scale of the reform is
vast, it appears that, at this stage, meeting annual
targets is on track. On the basis of the available
evidence, more people are being trained to industry
standards, the quality of training provision appears
to be improving across a wide range of sectors, the
private sector is fully engaged and motivated and
the government is providing the funds to make
it happen.
There are some good signs that the Indian model
gives confidence that the TVET system can be
transformed notwithstanding the scale of the
changes. First, the private sector, acting through
the SSCs, has been given effective control over
quality assurance of the TVET sector through three
key interventions: setting standards, accrediting
providers and controlling the assessment of
learners (through accrediting assessment centres).
This transfer of quality assurance functions to the
private sector goes far beyond the scope of many
 Annex II: Case studies on How a Selection of Asian Economies Approach Sector Skills Development \ 93
other countries that have sought to reform their
TVET system, even those with elaborate sector
planning approaches such as Australia and Canada.
Second, the creation of the NSDC with its primary
role of providing technical and financial support to
encourage and make sure partnerships between
industry and training providers actually happen
is also a good initiative. Usually, many similar
initiatives falter because they rely on the goodwill
and motivation of key individuals to form these
partnerships. In India the system is underpinned
with good financial incentives. Moreover, the
massive injection of funds provided by the central
government to support the operational costs
of the SSCs and other direct interventions to
providers (and supplemented by two development
banks) indicates that the government is serious
about reform and not just paying lip service to the
sentiments of creating a skills demand-led system.
However, the reform process is still relatively young
and it is still too early to evaluate the performance of
the SSCs, the effectiveness of the training providers
and the satisfaction of the employers. Vast
numbers of people still have to be trained in the
next decade and the achievement of these targets
will in part depend upon the efficiency with which
the SSCs churn out QPs and accredit providers.
There are still many significant challenges
facing India’s skill development programme.
Notwithstanding the central coordinating role of
the NSDA and the NSDC in skills development
policy and planning, there are still a large number of
ministries at national level and state level which are
involved in skills development. Although a number
of state governments have established their own
co-ordination bodies for skills development and
VE programmes, policy-making remains highly
fragmented, with parallel initiatives and duplication
of efforts not uncommon. The development of
a national qualification framework as outlined
in the NSDP is a case in point, where both the
Ministries of Human Resource Development and
Labour and Employment have been involved in the
development of separate frameworks. The national
government, acting through the NSDA, still needs
to bring more coherence to policy and programmes
in the skills domain and the challenges of inter-
agency coordination, especially at the local level, will
not be easily resolved.
Second, as noted by the Planning Commission,
the ‘sheer magnitude of scale’ and ‘duplicated or
excessive bureaucracy’ are serious challenges to
improving the quality and relevance of education
and training in India (Government of India 2007).
Interventions and investment are required to
address deficiencies in delivery and assessment
methods, curricula and resource materials and
infrastructure. Although SSCs have the potential
to clearly increase the relevance and quality of
training delivered in the skill system, they will take
time to become established as lead organisations
and to complete development of sector specific
standards, assessment and certification
frameworks for their industries.
Third, the capacity of the skills system to respond
to these challenges is, however, severely hampered
by the looming shortage of teachers and trainers. In
fact, NSDC predicts 12,000 trainers must be trained
annually for posts in ITIs and Industrial Training
Centres (ITCs), with a further 27,000 required in
other vocational areas.103 Given that the current
and planned public sector capacity for training of
trainers is for fewer than 5,000 places a year, and
that little additional capacity exists in the private
sector, the shortage of trainers is likely to develop
into a critical constraint on the supply of skills in
the short term. Moreover, nationally consistent
certification and accreditation systems for teachers
and trainers linked to institutional and programme
quality assurance arrangements are not in place,
which has meant a large number of trainers are
uncertified and untrained, especially in the private
sector.104 There is an urgent need to develop and
implement a national strategy to address this
constraint so that all government agencies and
ministries, alongside targeted PPPs, can increase
the recruitment, training and certification of
teachers and trainers that meet minimum technical
standards and the planned increase in training
capacity can be realised.
In summary, on one level, India’s new institutional
architecture appears to find a workable and
effective mechanism for how public and private
sector actors will engage at the interface between
central government and industry. What is not
so clear is how this relationship will impact at the
state level of government, which has primary
responsibility for the administration of the public
training providers. One weakness is that state
governments and the labour movement have been
excluded from representation on the governing
94 \ Mapping Sector Skills Development across the Commonwealth
structures of the SSCs and the national agencies
which are driving the reforms. These are important
actors who will have to be brought on board if the
new dispensation is to deliver the expected results.
Finally, the performance of the new TVET system
will also be measured through its capacity to
effectively overcome the traditional barriers of
the caste system which is the most pervasive
parameter differentiating the Indian society and
embedding poverty within certain social groups.
Although caste is determined on the basis of birth, it
also, in turn, traditionally determines the distribution
of human and physical capital, occupations, social
status and power. One government Task Force
expressed this clearly:
The exclusionary character of the education system
in India is to a great extent founded on the artificially
instituted dichotomy between work and knowledge
(also reflected in the widening gap between school
and society). Those who work with and produce
wealth are denied access to formal education while
those who have access to formal education not
only denigrate productive manual work but also
lack the necessary skills for the same. The socio-
economic, religious-cultural, gender and disability
related dimensions of this dichotomy have serious
implications for education in India. Over a period
of time and through systematic practice, such a
notion of education has come to be embedded in
the knowledge system, representing the dominant
classes/castes/cultures/languages with patriarchy
in each of these categories playing a decisive role.
The education system has tended to ‘certify’ this
form of knowledge as being the only ‘valid’ form. In
the process, the knowledge inherent among the vast
productive forces along with the related values and
skills has been excluded from the school curriculum.
The legacy of colonial education was built upon
precisely such a Brahminical concept of ‘certified’ or
‘valid’ knowledge that is alienated from productive
work and its social ethos.
(Government of India 2007)
As can be seen, the ‘sacral tradition’ still has a
strong hold over the minds and lives of Indians and,
although adjustment to a secular value system is
taking place, this is happening at a gradual pace
(see, for example, Dhesi 1996; Vaid 2014). This is
the social background context in which the new
economic reforms to create a knowledge economy
and make India an economic super giant within the
next 20–30 years is being planned. The reforms to
the TVET system, as described here, and driven
by industry through the SSCs, can ill afford to risk
excluding lower castes and other disadvantaged
minority groups from participating in the renewed
and transformed education and training system by
denying them the opportunities and advantages it
offers for paid skilled employment in the expanding
economy. Through this transformation of the
TVET sector, success will be measured not only
by the capacity of India to grow and become more
competitive but also provide a real opportunity to
elevate large numbers of people (and their families
and communities) out of poverty and challenge the
breakdown of the traditional value systems. In the
Indian context then, the role of SSCs has a much
wider social transformative value.
Bangladesh has made a promising
start but there is still too much
government control
Introduction
There is an urgent need to reform the Bangladesh
TVET system. A rapidly growing labour market and
an expanding formal economy built around a few
key growth sectors has increased the demand
for skills and placed pressure on the government
to radically overhaul a supply-led TVET system.
Following the lead of other countries in the region,
the government has moved to implement a new
national skills development policy in which the
private sector is supposed to have a more direct
role in skills development through the formation of
ISCs. Although there are early signs that some ISCs
are starting to have some impact in their sectors,
the overall picture points to the need for further
improvements in the policy framework and the
creation of demand-led incentives if the progress
made so far is not to be short lived.
Background context
Bangladesh is the ninth most populated country
in the world, with around 156 million people living
in a land area of 147,570 km2, which also makes
it one of the most densely populated countries
(964 inhabitants per square kilometre. Widespread
poverty is still a problem, with almost one-third
of the population is living below the poverty line
(Government of Bangladesh 2010).
 Annex II: Case studies on How a Selection of Asian Economies Approach Sector Skills Development \ 95

The economy of Bangladesh is growing steadily and rate is relatively high. Unemployment is higher for
benefiting from reforms and increased openness youths and young adults (4–8 per cent for male
to the global economy. Annual GDP growth has youths and 5.8 per cent for female youths).109
accelerated from an average 4.0 per cent during
Most of the labour force has little or no education.
fiscal years (FY) 1973–1978 to 6.3 per cent in FY
A total of 41 per cent of the 56.7 million workers
2006–10 (Government of Bangladesh 2011).105
in the labour market have no education, whereas
The economy is still predominantly dependent on
another 23 per cent have not completed primary
agriculture which accounts for 19 per cent of GDP
education school, with only 0.2 per cent having VE
compared with industry (29 per cent) and services
(World Bank 2006). Literacy among the workforce
(53 per cent) (Government of Bangladesh 2010).
is estimated at 52.5 per cent. The World Bank
There is a successful Ready-Made-Garments (RMG)
assessment of TVET in Bangladesh110 indicates that
sector which contributes around 80 per cent of
for every person in the labour force with a technical/
the country’s total export earnings and 18 per
vocational qualification there are more than 104
cent of its GDP. RMG has grown tremendously
others who have completed secondary school and
over the past three decades, dominating the
34 others who have gone on to university. In short,
industrial sector since the early 1980s, maintaining
enrolments within the formal TVET sector are
an average annual growth rate of 12 per cent and
negligible (World Bank 2006).111
creating employment opportunities for thousands
of poor, unemployed people every year. Other Most private sector companies in key industries
important rapid growth sectors are transport and (such as agriculture, tourism, IT and manufacturing,
storage, retail and construction. including garments, textiles and other
manufacturing sectors) complain that low skill levels
According to the latest Labour Force Surveys, the
are constraining their business growth and the
annual employment growth rate has been 3.2 per
nation as a whole. For instance, the RMG industry
cent over a 10-year period (1999/00–09/2010)
(which provides employment to around 4.44 million
with the agriculture, forestry and fishery accounting
people, of whom 70 per cent are women) estimates
for 47.3 per cent of total employment followed by
there is a 25 per cent unmet skills demand for
services (35.2 per cent) and industry (17.5 per cent).
workers in the sector (Hossain and Haider 2014).
The country’s labour force is growing very rapidly,
As another example, the construction sector,
increasing from about 10 million people in the
which absorbs a large proportion of workers with
mid-1990s to 56.7 million people in 2010, of whom
less than a primary school education, faces skills
83 per cent are working in the informal economy
shortages owing to the tendency of skilled workers
(Bangladesh Bureau of Statistics 2013).106 The self-
to seek better paid employment opportunities
employed, unpaid family labourers and piece-rate
overseas, mostly in the Middle East and Malaysia/
workers are covered in this estimate. The labour
Singapore (Khan and Hossain 2014). A tracer study
force growth over this period has been faster than
conducted in 2003 found that less than 10 per cent
population growth (1.86 per cent) owing to a rapidly
of individuals who graduated from VET institutions
expanding young population (with almost 38 per
were employed 2 years later (World Bank 2006).
cent presently in the 15–34 years age group)107.
The huge scale of the problem has elevated the
Based on the demographic profile from the last
importance of skills development as a key factor for
population census, new entrants to the labour force
improving productivity and remaining competitive.
are currently estimated to be about 3 million people
annually and it is projected to increase to about 3.5 An overview of the skills
million annually within 10 years (World Bank 2013).108
development system
The labour force participation rate has increased
slightly from 57.3 per cent to 59.3 per cent over the In Bangladesh, TVET provision is provided through
past 10 years as a result of an increase in the female both public and private training institutions with
participation rate from 26.1 per cent to 36 per cent. public provision accounting for less than one-
However, this is still only half the male participation third of total enrolments. Overall, the Ministry
rate of 82.5 per cent, so there is still considerable of Education and the Ministry of Labour and
potential for increased female participation to Employment have a major role in skills development
occur. The unemployment rate is relatively low (4.5 in Bangladesh.
per cent in 2010), although the under-employment
96 \ Mapping Sector Skills Development across the Commonwealth

In the government training institutions, there are
three main levels of TVET qualifications: 112
• Students who complete Grade VIII at school
may enrol on a 2-year vocational programme
in one of three subject areas for a Secondary
School Certificate (SSC Voc.).
• Students with Grade X may enrol in the
2-year vocational programme in one of three
subject areas for a Higher School Certificate
(HSC Voc.).
• Post-secondary students may enrol in 4-year
diploma-level courses in one of nine subject
areas at a polytechnic or monotechnic for
a diploma.
One important shortcoming of this system is that
the minimum entry-level requirement of Grade
8 education excludes the majority of youths and
young adults. This means that a huge number of
children who have dropped out before reaching
that grade cannot pursue VE in a government
school and are denied a chance to make a greater
contribution to and realise better benefits from
economic development.
The main public agencies responsible for
skills development planning are as follows
(Tansen 2012):
• The Directorate of Technical Education
(DTE) is responsible for setting the overall
policy framework of the entire VET system.
It supervises more than 120 governmental
institutions at different levels: Technical
School and Colleges (TSC) and polytechnic/
monotechnic institutes.
• BTEB is entrusted with developing and
regulating formal TVET programmes by
registering providers, accrediting course
programmes and awarding certificates for
formal TVET programmes run by all public
(including all other Ministries except Health)
and private education and training providers.
Currently, it regulates over 300 public
and 6,500 private TVET providers with an
enrolment capacity of over 570,000 trainees
per year. The diploma and certificate teacher
education qualifications are also under
its control.
• The Bureau of Manpower, Employment and
Training delivers skills training through 37
Technical Training Centres (TTCs) and one
Institute of Marine Technology (BIMT). Six
TTCs are reserved exclusively for women.
TTCs offer a 2-year course (SSC voc.) in 31
different basic engineering trades, whereas
the BIMT offers 4-year Diploma courses
and 2-year certificate courses. Besides
regular courses, there are short courses,
language courses, special courses targeting
foreign employment, and many evening skills
upgrading courses on request of employers,
are also conducted at TTCs.
• Ministry of Youth and Sports through its
Department of Youth Development (DYD)
provides training mostly in basic skills through
47 national Youth Training Centres and mobile
training facilities in technical trades, secretarial
courses, dressmaking, block and boutique,
printing, livestock rearing, poultry, etc. DYD
also operates self-employment schemes
for youth by offering training in a variety of
skills, such as welding, electrical wiring, radio
and TV repair, garment making, dairy farming
and poultry.
• Ministry of Women and Children Affairs
is involved in skill development through its
training centres under the Department of
Women’s Affairs which operates different
training centres offering the courses
on embroidery, tailoring, batik, tie-dye,
handicrafts, duck and poultry rearing, fish
cultivation, agro-based training, computer
application, graphics design and webpage
design, etc. Ironically most of the trainees are
young males.
In addition, there are about 19 different ministries
overseeing about another 363 training institutions,
enrolling about 300,000 trainees per annum for
short- and long-term courses, although most of
these provide skills training only to their new and
current employees working in their departments/
agencies. About half of these ministries administer
accredited TVET programmes whereas some
offer non-accredited courses (e.g. basic training on
livestock, poultry farming).
The vast majority of TVET provision is carried out
by NGOS and the private sector. There are around
1,500 accredited private training providers running
certificate and short-term courses across the
 Annex II: Case studies on How a Selection of Asian Economies Approach Sector Skills Development \ 97

country which account for about 75 per cent of total improvements could be made by implementing
TVET enrolments. These courses are run largely more effective and nationally consistent policies
at Basic/National Skills Standards NSS (360 hours) and systems of management and quality control.
and SSC levels in such subject areas as computer/
The formal system of VE is frequently described
IT, hospitality, garment making, building trades for
as being of very low quality and relevance. Many
around 54 different occupations.113 Around 16
graduates from TVET colleges fail to find
private training providers conduct training courses
employment within the trade for which they have
accredited by foreign agencies (e.g. City and Guilds,
been trained. Employers – across all the growth
UK) with international recognition. Although data
sectors at least – complain that there is a
from Bangladesh show that training has a positive
considerable mismatch between skills offered in
impact on productivity and worker wages, only
the formal system and the skills needed in the
25 per cent of manufacturing establishments in
labour force. A World Bank (2006) report cites the
Bangladesh provide their employees with in-service
example of the public TVET providers continuing
formal training. This is significantly lower than
to produce graduates in outdated trades (e.g.
individual East Asian countries, such as Malaysia
typists) but not for the newer trades in demand
(training levels are twice as high) and China (three
(e.g. computer operators).115
times higher) (World Bank 2006).
The TVET system generally suffers from
Non-government agencies also provide non-
underfunding, poor design and very weak linkages
accredited training, although there are no
to the labour market. Underfunding and poor
aggregated estimates of the size and scope
design are evident from the outmoded or non-
of their operations nationwide. Several NGOs
existent equipment and the outdated curricula.
(Underprivileged Children Education Programme
Certain government policies also impose artificial
(UCEP) and Save the Children, Dhaka Ahsania
barriers of entry to the system. As mentioned,
Mission, MAWTS – Caritas, TMSS, Ananda, SOS
government TVET institutions require at least
Children Village, Muslim Aid, Practical Action,
a Grade VIII schooling certificate as a minimum
CMES, etc.) provide basic skills and training to
entry requirement, thereby denying skills training
target groups such as youth, the underprivileged
to disadvantaged groups who leave school early
and the rural population. The courses are generally
but who may still aspire to become skilled workers
in areas relevant to income-generating activities
within the labour market. A more contemporary
such as sewing and embroidery for women and
approach would be to offer remedial and catch-up
carpentry, electrical and radio/TV repair for men.
courses to students with lower schooling prior to,
The courses offered by these institutions generally
or simultaneously with, skills training such as that
tend to be non-accredited (Tansen 2012). One of
provided by UCEP (World Bank 2006).
the larger NGOs, for example, is the UCEP which
offers general education programmes for about There is also no nationally consistent approach to
46,000 disadvantaged children and then supports quality assurance, with current qualifications not
the further development of their graduates through based on standards that align with the occupations
one of 29 short-course skills training programmes or skill levels in industry. Curriculum development
in its ten technical colleges. It claims to have a 100 is highly centralised and controlled by BTEB. The
per cent pass rate and a 94 per cent job placement development of new courses, the expansion of
rate, which far exceeds the performance of the high-demand courses and the closing of obsolete
public TVET colleges. The technical courses are all courses do not always reflect the market’s needs.
accredited by BTEB.114 However, although there are Currently, there is no system for certification of
a few prominent organisations of this type providing trainees who take part in on-the-job-training.
training, most are very small in terms of enrolment
Finally, the governance of the formal TVET system
and facilities and usually provide only short-term
in Bangladesh is described as fragmented and
training (ranging from 4 to 6 months’ duration).
complex, with responsibility split between multiple
Overall, skills development system in Bangladesh players. The lack of coordinated public sector
faces many challenges and issues, not all of which delivery leads to duplication of programmes,
relate to financing or a lack of resources. Significant competition for the same target group of learners,
98 \ Mapping Sector Skills Development across the Commonwealth
limited links between different training centres and
no clear picture of what training is being provided
for which industry or occupation (World Bank 2006).
In recent years, the government and the private
sector in Bangladesh have shown a marked increase
in interest in reforming the formal TVET system
and have sought external support, both financial
and advisory, from the international community. In
partnership with some international agencies and
donors, particularly the ILO with support from the
EU, the government announced a new NSDP in
2011 (Government of Bangladesh 2011). There are
now a number of new skills development initiatives
under way, which has started to change the TVET
institutional landscape and which has brought with it
more understanding of the value of TVET and skills
development, both in government and the private
sector at national and levels.
One of the new measures has been to bring the
whole TVET system under the umbrella of a single
national Technical and Vocational Qualifications
Framework (BTVQF).116 The BTVQF will include
two pre-vocational levels to introduce additional
pathways in general education and to cater for the
underprivileged and low educated groups in society.
It will also include five vocational levels, and one
level for diploma-level qualifications. Under the
NTVQF, training organisations will also be able to
issue a Statement of Attainment for specific units
of competency when less than the full programme
has been completed. However, although the
new BTVQF has been approved, not a single
qualification has been registered on it to date.
Another development in general education
has been to introduce a new system of dual
certification, so that students who satisfactorily
achieve the skills component of VE programmes
such as the SSC (Voc.), HSC (Voc.) and HSC (BM),
will receive a NTVQF qualification in addition to, and
separate from, the school qualification.
Another initiative has been to increase the capacity
of the public TVET system by approval of a budget
to build another 100 technical schools and another
489 training institutions, increasing student
enrolments to 84,000 students per year. In addition,
the government also plans to increase the capacity
of its two Technical teacher training colleges to
produce 320 graduates per year.117
The government also announced support for
the establishment of ISCs which will implement
a new system of industry competency standards
and qualifications. The competency standards will
be developed by each industry sector and then
grouped into clusters that reflect occupations or
key skill sets prioritised by employers and workers
in that sector. This new system will be known as
the Industry Sector Standards and Qualifications
Structure (NSDC 2011).
The development of a sector skill
approach
As mentioned above, the process of reforming
the TVET system has recently been launched
with the adoption of a new NSDP in which the
government declared:
For Bangladesh to prosper in the future, employers
and workers must become more actively involved in
skills development. New and upgraded workplace skills
are required for enterprises to retain their workers and
remain competitive. Higher and new skills also support
improved employability for workers, better career
paths and higher income.
(NSDC 2011)
In terms of the new policy, the private sector is
expected to play a major part in implementing
the NSDP through a number of key measures
which are articulated in the policy documents
including the development of a competency
standards frameworks and ensuring that they
are aligned to the curricula; forming partnerships
with TVET providers for purposes of providing
internships, giving advice on curricula; participating
in assessment and certification; alerting the TVET
providers on the demand for skills; providing advice
on policy formulation; and contributing to funding of
the system.
The management and coordination of
implementing the reforms is structured and
organised through a new institutional dispensation
which includes:
• the setting up of the NSDC, with its main
purposes being to develop and implement
a national policy for skills development;
oversee the implementation of key reforms;
co-ordinate activities; and, monitor
implementation of TVET;
• the creation of ISCs which define the NOS for
the respective skills sectors;
 Annex II: Case studies on How a Selection of Asian Economies Approach Sector Skills Development \ 99
• the establishment of a national Human
Resources Development Fund (HRDF) fund
to provide additional funding for industry
training initiatives;
The NSDC is the highest level government
authority responsible for the planning and
coordination of skills development in the country
comprising 36 representatives from government,
the private sector, trade unions and community
organisations and chaired by the Prime Minister.
It is responsible for ensuring that clear direction
is given and agreed in reshaping the NSDS. The
involvement of industry partners in the planning and
management of skills development is recognised as
an important and significant step. In addition to its
overall planning and coordination responsibilities, it
also mandated to manage a national skills database;
to register and support the establishment of
different ISCs; to foster private sector initiatives
to develop ultra-low cost, high-quality, innovative
business models; to support pre-employment skills
training and training for the private sector and to
provide support services mainly in underserved
economic sectors. It will also oversee the activities
of the SSCs by holding them accountable for
the accuracy of the data they collect and the
projections they make of future skills demand
(NSDC 2011).
To improve coordination and planning at district
level, the NSDC intends to establish District
Skills Development Consultative Committees so
that all ministries involved in skills development
can meet regularly to improve the resourcing,
development and delivery of programmes in
the local area. This will ensure that new training
centres will be established only after assessments
of demographic and industry demand projections
and reviewing the distribution and effectiveness of
existing institutions.
The NSDC will also work with key institutions,
including the National Productivity Organisation
(NPO) under the Ministry of Industries, to deliver
industry-specific training and productivity
programmes to ensure that skills upgrading
translates into high-performance work practices
and improved productivity growth.
Industry Skill Councils
The establishment of a network of ISCs was first
proposed in the 2008 Action Plan of the National
Skills Development Council (NSDC) which called
for the ‘establishment of industry led, sector based
and agricultural public-private skills development
working groups with government as facilitator
and incentiviser’.118 Later, the draft National
Skills Development Policy prepared during 2009
recommended that:
Industry should be organised on sectoral lines to
provide specific advice on occupations and skills in
demand, and to identify key skills project priorities for
their sector. Government and industry will implement
these arrangements through a network of tripartite
Industry Skill Councils (ISCs).
(ILO 2009: 17)
These ISCs have been given multiple
functions including:
• conducting quantitative (enterprise)
surveys of skills demand, in association
with appropriate statistical agencies, for
building labour market knowledge about
their respective industries and to assess and
report regularly on skill gaps and emerging
skill needs and assist employers and employer
representative groups to formalise their
skill requirements;
• building up detailed occupational and
qualification matrices;
• assisting TVET institutions with the design of
existing and new courses and qualifications;
• becoming directly involved in formal
assessments and trade testing and
exploring their role in the registration of
industry assessors;
• promoting PPPs which add value to meeting
skills development needs of enterprises
and workers and in particular encouraging
multinational enterprises to provide training
for all of their staff to meet company needs
and contribute to the development of human
capital in the country.
According to the NSDC, only three ISCs had been
registered by the end of 2014, although discussions
were ongoing with another nine ISCs who were in
various stages of pre-registration consultations
with their own stakeholders. Another four ISCs are
expected to be registered in the near future. 119
In terms of the government guidelines, the ISCs
primarily comprise private sector representatives,
although the NSDC will have a non-voting observer
100 \ Mapping Sector Skills Development across the Commonwealth
member on the board of each ISC. Provision is also
made to include at least one representative from
organisations representing labour unions (although
in the fast-paced RMG sector there are no unions).
Unlike their Indian neighbour, there is no government
funding for ISCs and all their activities are assumed
by the government to be financed from funds
contributed by businesses covered by the sector
– a fact which might largely explain the underlying
reason why many ISCs have been slow in getting
established. There are some signs that this aspect
of the policy might be reviewed as the government
is preparing the draft of its next Five-Year Plan.
The three ISCs which have been registered
(Leather, Tourism and Hospitality and Furniture)
have made some important progress in developing
skills standards, although none have, as yet,
completed qualifications which can be registered
on the BTVQF.120 A manager in the STEP Project
(financed by the World Bank and Canada) which was
set up to provide technical and financial support to
the ISCs indicated that only about five of the ISCs
are actively engaged in developing standards.121
Two of the ISCs are also rumoured to be moving to
establish CoEs to support on-the-job training for
their industry.
Another key function of the ISCs is to provide
labour market information feedback to training
providers on the demand for skills in their sector.
According to an ILO discussion paper, the ISCs will
be instrumental in helping identify the long- and
medium-term skills demand for their sectors, and
in identifying priority occupations where training is
needed. However, owing in part to the slow pace of
registering the ISCs, these studies have not come
to light and may still only be in the planning stages.
The DTE indicated that they have an approved
budget to conduct skills demand studies on seven
sectors in the near future.122 However, two sector
demand studies were commissioned by a DFID–
Swiss Aid project in 2014 which provide detailed
and reliable information on skills in demand by
occupation and skill level (Hossain and Haider 2014;
Khan and Hossain 2014).
Finally, unlike their counterpart agencies in India,
ISCs do not have legal powers and responsibilities
for accrediting providers or for managing and/or
controlling the skills assessment processes.
Benefits and limitations of the sector-
based approach
Although the TVET reform process in Bangladesh
is still only a few years old, and there are some early
signs that reforms to the TVET system are being
made, the overall pace of change is still slow. In
particular, the slow pace of registering ISCs and
making them fully functional and dynamic has been
disappointing and has impeded progress both in
terms of their failure to assess the demand for skills
in their sector and in generating the necessary
standards to support new competency-based
training programmes. On the evidence available,
and with the exception of the work achieved by
three ISCs (Leather, Furniture and Tourism), it would
appear that most of the reforms that have been
achieved over the recent past are being driven by a
handful of overworked and dedicated individuals in
the two main government agencies: BTEB and DTE.
Accordingly, there are still many challenges and
constraints in reforming the TVET system. One
important constraint is the lack of government
funding to support the ISCs. The Bangladesh
government needs to consider adjusting its policy
framework so that it can incentivise the ISCs
through co-funding to cover their operational
and developmental costs at least for the term
of its next 5-year development plan. Significant
investments are required to address deficiencies in
training delivery, including infrastructure capacity,
development of curricula and assessment
methods, resource materials and teacher training
and development. Although some sectors such as
RMG may find these costs affordable, many other
sectors will not.
In addition, the Bangladesh government has, to
a much greater extent than its neighbour India,
sought to retain more direct influence over the
activities of the ISCs and also to retain control over
key parts of the TVET quality assurance system.
Some comparative examples include:
• The composition of the governing bodies
of an ISC includes a mandatory government
representative. In India this not the case. The
membership of the boards of the SSCs are
drawn exclusively from the private sector.
• The engagement of ISCs with public sector
training providers appears to be mediated
through a network of local boards at state level
 Annex II: Case studies on How a Selection of Asian Economies Approach Sector Skills Development \ 101

which are to be dominated by government

representatives. In India, the SSCs deal directly
with the training providers.
• ISCs do not appear to have responsibility or
capacity for developing training packages.
This is still done by BTEB. In India, the SSCs
develop the standards (qualification packages)
and the assessment criteria. They then assist
the training providers to develop the curricula.
• ISCs do not have powers/responsibilities
for accrediting training providers. This is still
done by BTEB. In India, the SSCs have primary
responsibility for accrediting providers.
• ISCs do not appear to have any direct role
in the design and administration of the skills
assessment (and certification) system. This is
still done by BTEB.
In other words, outside their proposed function
for developing standards and advising on skill
shortages, the role of the Bangladesh ISCs
appears to be more of ‘advisory bodies’ to central
government rather than an interventionist role.
Ultimately, these weaknesses may place the
reform processes at risk if the private sector
becomes frustrated with the limitations that have
been placed on their ability to control the quality
assurance procedures that will affect the skill
standards of the trainees entering their workplaces.
102 \ Mapping Sector Skills Development across the Commonwealth
Annex III: Case studies on
how Industrialised Countries
Approach Sector Skills
Development
Sector skills planning in Australia: lessons on dealing with federal-
and state-level approaches
Introduction
The Australian approach can offer lessons for
larger countries with state- and federal-level
political systems on how to approach sector skills
development. The structures for supporting skills
development are called ISCs and one of their
key benefits is their effective engagement with
employers and other stakeholders. The sector
bodies have undergone a number of reforms
and their activities are now focused more upon
strategic activities, especially in the production of
labour market intelligence and the generation of
demand for skills at the enterprise level. Although
the ISCs are a small component of the wider skills
development system, they have an important
role in helping to ensure that skills development is
demand-led.
Setting the context and the levels of
youth unemployment
The Australian economy has experienced an
exceptional boom over the past 10 years, driven
in part by exports of minerals and raw materials.
Australia also has a large service sector and
increasingly acts as a financial hub for the region.
However, the global slow-down and the reduced
demand for raw materials have impacted negatively
on the performance of the economy.
Surprisingly, the poor performance of the economy
did not impact negatively on employment and
the Australian labour market has managed
to outperform a significant number of OECD
countries, with lower unemployment rates for men
and women. In part this reflects the implementation
of active labour market policies and significant
reforms to the country’s employment services.123
The performance of the labour market is strong,
particularly in the service sector where there
is a significant demand for professionals in the
accountancy and banking sectors, as well as a
number of other areas.124 The latest data on
employment outcomes for young people look
very positive, with the number of jobs in January
2014 increasing by 14,000 for those between 15
and 19 years of age. However, care must be taken
in interpreting these data, as 11,400 of these jobs
were part-time, suggesting that the gains for young
people were only in causal forms of labour and
those requiring minimal skills.
Significant changes are expected to the Australian
labour market over the next 5 to 10 years. There is
no doubt that there will be a move towards a more
regional labour market following the Association of
Southeast Asian Nations agreement in 2016. The
size of the domestic labour market is also expected
to contract in subsequent years. This will not be
compensated by new labour market entrants owing
to the falling birth rate.
In anticipation of the changes to the country’s
labour market, the government of Australia has
introduced a number of significant reforms in an
attempt to improve their labour market skills pool.
On the immigration front it is recognised that
foreign labour is required and the government has
linked visas to occupations in demand (and ones
that cannot be found locally). The government
has also launched an industrial policy to attract
investments, expand exports and increase
employment levels.125 Key to this approach will be
a more integrated approach to training, education,
and employment; and data that supports
government and industry to better understand
 Annex III: Case studies on how Industrialised Countries Approach Sector Skills Development \ 103

future job needs will be required. Part of this • low productivity and skill shortages in critical
process will involve the reduction of regulations occupations, especially at the craft levels;
for apprenticeships. Much of this recent effort has
• few data to inform decision-making processes
also started to help generate demand from the
in the workplace.
enterprise side for skills development.
The Skills for Australians represents the
An overview of the skills framework for responding to these needs. Under
development system this framework the Commonwealth government
will provide an additional A$1.75 billion over a
The key strengths of the Australian skills
5-year period to support deep reforms in the skills
development system are the strong links between
development system.126 Learners will be provided
the different structures involved in supply and the
with increased opportunities to obtain a Level III
labour market, allowing learners and employers to
certificate (the initial entry qualification to many
determine their own training and skill needs. There
technical occupations). This will be facilitated by
are two layers to the skills development system,
improved access to student loans and improved
the National/Commonwealth government and
online information about costs and provider quality.
the State/Territory government. The relationship
Additional support will also be provided for quality
between the Commonwealth and the State/
teaching and assessment, including trialled models
Territorial government’s changed as a result of
for independent validation of training provider
the 1992 National Training Act. Prior to this piece
assessments. It is hoped that this will improve
of legislation the Commonwealth government
students’ and employers’ confidence in the quality
had no influence over skills development, as all
and consistency of training that they purchase.
decisions were taken at the state or territory level.
According to Sung et al. (2006), the decision to The main vehicles for delivering skills in Australia are
give responsibility to the national level occurred apprenticeships and traineeships. Apprenticeships
as a result of the low investment in training, the incorporating traineeships have been in existence
rising unemployment rate among young people for over 25 years.127 Australian apprenticeships
and the growing demand for technical skills during are available to anyone of working age. There
that period. are no qualification requirements and they
provide opportunities to train, study and earn an
Under the 1992 National Training Act the states/
income at a variety of qualification levels in most
territories were given responsibility for education
occupations. In contrast, traineeships are an
policy, and the Commonwealth government
extension of apprenticeships and were introduced
became responsible for national skills strategies
as a response to high youth unemployment in the
and policies through the Department for Education,
1980s. Traineeships represent a stepping stone to
Science and Technology and the Australian National
the labour market and provide young people with
Training Department (ANTA). This also led to the
relevant work experience.
states/territories being given responsibility for
funding and implementation. The Registered Training Organisations (RTOs) have
a key role in delivering training that is recognised
A significant number of national-level frameworks
and accepted by industry throughout Australia.
have been developed over the past 5 years to guide
Only RTOs can provide accredited training and
reforms in the field of skills development, most
assessments, linked to qualifications on the
significant of which are the Skills for Prosperity
Australian Qualification Framework. The key
Road Map and the Skills for all Australians. Similar
RTOs are the Technical and Further Education
issues were raised in both reports, especially
(TAFE) colleges, universities, schools and
related to:
private businesses.
• the unmet demand for over 12 million
Other structures in the skills development
qualifications among learners in Australia over
system include:
the next 15 years;
• Group Training Organisations (GTOs): These
• unacceptably low levels of language, literacy
are employment and training arrangements
and numeracy skills;
whereby an organisation employs apprentices
and trainees under an Apprenticeship/
104 \ Mapping Sector Skills Development across the Commonwealth
Traineeship Training Contract and places them
with host employers. In this process the GTO
undertakes the employer’s responsibilities for
the quality and continuity of the apprentices’
and trainees’ employment and training. In
addition, they also manage the additional
care and support necessary to achieve the
successful completion of the training contract.
• The Australian Qualification Framework:
This defines all recognised qualifications in
Australia. Under this framework the required
competencies to achieve a qualification
are defined, ranging from senior secondary
education to PhD.
• The Australian Quality Training Framework.
This defines the agreed standards and
conditions with which RTOs must comply.
The development of the sector
skills system
In a recent report the OECD states the most
effective feature of the Australian skills system
has been employer engagement. The sector
skill structures play a key role in supporting these
processes.128 The initial sector skill structures, ITCs,
were established in the 1970s around a number
of key trade areas and professions, focusing upon
apprenticeships and professional training. These
ITCs were replaced by more formalised Industry
Advisory Training Boards (IATBs), which were
concerned with employer engagement.
Each of the IATBs was responsible for managing
competency-based standards and training
packages for the sector, with some also acting
as providers. It should be noted that training
packages document the competency and
occupational standards required for professions
across the different industries. The key to the
ITABs effectiveness was that their standards were
developed in close collaboration with employers,
unions and TAFE colleges.
A total of 23 national ITABs and 136 associated
state/territories bodies were set up. The ITABs
work with stakeholders to determine needs and
requirements at the national level. Similar activities
occur at the state level. However, according to
Sung et al. (2006) there was limited communication
between the national Commonwealth- and state-
level ITABs and in some instances state ITABs and
employers felt they were not represented at the
national level.
In 2004 an independent review took place of the
ITABs by the Alan Consulting group. This review was
undertaken in light of the continual coordination
difficulties between the national and state level
boards. Other factors driving this review were the
number of people retiring from particular trades
and the need to link skills with immigration to tackle
potential skill shortages.
One of the main recommendations of the Alan
Consulting group was the need to establish a
smaller number of more formalised structures. This
resulted in the setting up of 10 national ISCs whose
objectives were to:
• provide labour market intelligence to
government, industry and other stakeholders
about the nature of skills development and
supply across Australia;
• continue to support the development of
quality training packages and provide advice to
enterprises on training;
• liaise and engage with state and territory
governments on skills issues.
Given the shift in the changes outlined above,
the ISCs have become more involved in providing
labour market intelligence, strategic advice and
workforce planning. Each year the ISCs undertake
an environmental scan of the external factors
influencing changes in their respective industry
and address the implications for workforce
development. These scans are based on valid and
timely data and act as an ‘early warning system’
to the VET sector and enable stakeholders to
understand how well the products of Australia’s
training system are responding. After the
intelligence has been obtained, ISCs produce a
Continuous Improvement Plan that outlines what
changes need to be made to the Training Package
qualifications to meet new skill requirements.
The management and governance arrangements
for the ISCs need to be seen against the
background of the different structures that operate
under the country’s national skills framework. At the
top of the skills system is the Council of Australian
Governments (COAG). This is an intergovernmental
body that initiates, develops and monitors the
implementation of policy reforms. It comprises
 Annex III: Case studies on how Industrialised Countries Approach Sector Skills Development \ 105

Box A3.1. How ISCs relate to wider developments in the

skills system
In Western Australia (WA) there are two main approaches for gathering data to reflect
demand and to inform supply. The first focus is industry groupings to produce sector plans. In
WA, 10 sectors cover the main industry groups. Each group has responsibility for producing
a state-funded Workforce Development Plan which includes an economic analysis that
describes demand and is then geared towards directing supply through the education and
training system.130 For example, in WA, the industry focus has progressively moved from a
land-based agricultural and pastoral focus to a mining-based economy. The industry sector
analyses have reflected this shift as well as describing the different and changing skill needs in
each sector.
The second focus in WA is a regional analysis, based on nine regions (including the metro area
of the capital city, Perth) across the state. Each region produces a Regional Development Plan
which includes industry skill needs for the region. The regional plans are regarded as whole of
government plans and include information from other government departments to provide
a more complete situational analysis and overview of demand (housing needs, transport
requirements, infrastructure development, etc.). These plans are then aligned with the
Industry Sector Plans to form a comprehensive analysis of high demand skills and to help gear
and address supply through the training system.
Training providers (at the state level) deliver skills training with priority industry skills
programmes receiving emphasis in the funding arrangements (i.e. cheaper student fees
are charged for high priority programmes). Training providers (RTOs) are decided through
a tendering arrangement and a purchasing arrangement aligns with a Priority Industry
Classification List (PICL) derived from the Workforce Plans. This provides a form of
entitlement for students who have some say in course selection, but are provided with
an awareness of the priority attached to their course and the industry needs in terms of
subsequent employment.

the Prime Minister, State Premiers, Territory Chief for international development agencies to support
Ministers and the President of the Australian Local capacity building overseas, including work in India to
Government Association (ALGA). The Council is establish the proposed SSCs.
a platform for coordinated action by Australian
The current ISC governance arrangements follow
governments. An important body at the national
a range of models that reflect the needs of their
level is the Standing Council for Tertiary Education,
individual industry sectors. Being a company each
Skills and Employment. This body helps to ensure
of the ISCs has their own constitution and board
that the needs of Australia’s workforce are met
structures, enabling them to respond to their
through increased participation, educational
specific needs which vary from sector to sector. On
attainment and skill development. The Council was
some ISCs there was no union membership, as it
established in July 2011.129
was assumed to be inappropriate.
Each of the ISCs is an independent body that is
Evidence from a 2010 Senate Committee
funded by the Australian Federal government. ISCs
Report of the ISCs structure found that boards
can charge end users for the licences to use training
of ISCs performed well. However, a number
packages. According to available evidence, each ISC
of recommendations were made for their
received a base funding of AU$120,000 and project
improvement including reducing the size of the
funding totalling around AU$250,000. Recently, a
board; the majority of director positions to be
number of the ISCs have started to move into other
occupied by industry representatives; ensuring
forms of revenue earning including consultancy
a separation between the roles of the advisory
work. This has resulted in some of the ISCs working
committees and the board; establishing operational
106 \ Mapping Sector Skills Development across the Commonwealth

plans and key performance indicators (KPIs); a
redevelopment of the constitution and board
charter; separation of expenditure for Department
of Education, Employment and Workplace Relations
(DEEWR) contracts and other project work;
and new selection and induction processes for
new directors.
One of the key issues is how the work of the ISC fits
into the boarder activities of other structures at the
state level involved in planning and the production
of labour market intelligence. Box 1 provides an
indication of how an ISC within the context of
Western Australia works to determine skill priorities,
ensuring synergies are achieved between state,
regional and sector priorities.
Lessons from the industry skills councils
There is not a great deal of evidence about the
performance of the ISCs and reference has been
to their perceived benefits and their limitations
based on intelligence obtained from webpages
and reports.
One of the key benefits of the ISC approach has
been touched upon earlier, namely the effective
engagement with employers and stakeholders.
Not only does this provide a means to deliver
services and collect feedback (see below), it can
also provide an opportunity for the ISCs to become
more engaged in helping to generate demand
for skills among employers, especially in the
integration of training within other activities at the
enterprise level, as well as support for the usage of
higher performance working practices. Adoption
of such an approach can help the Australian
Commonwealth government achieve the drive
towards a learning culture and ensure that skill
levels improve, as well as supporting the improved
utilisation of skills in the workplace.
Another benefit associated with the move into
more strategic areas of work is the production of
labour market intelligence. Each ISC has to produce
an environment scan of their sector every year.
These scans are not just about using quantitative
data, but include actual advice from industry and
those working in the sector. Box 2 outlines the
overall process that this involves.

Box A3.2. An overview of the method used in undertaking the

environmental scan
Attempts to predict an industry’s future workforce and skill development needs can be
particularly fraught as industries continue to evolve converge or relocate and as new job roles
emerge while others become obsolete.
Leading developed nations are establishing ‘early warning systems’ to quickly detect the
onset of trends and building agile vocational training systems capable of responding to issues
once identified. Environmental Scans have been conceived on this basis.
Specifically, the Environmental Scan identifies the macro and micro factors currently shaping
and impacting on the skill needs of the workforce and its composition. It considers how well
the national training system, its products and services, and industry itself are responding.
Grassroots evidence and real-time intelligence from across Australia are what sets
the Environmental Scan apart from other reports in the national training system.
It captures intelligence gathered from ongoing visits and conversations with industry, key
stakeholders, regulators and, crucially, the people doing the jobs across the sectors, and
who experience first-hand the impact of change. It also draws on a range of topical sources
such as the latest industry, enterprise and government research, as well as international
developments. As a document limited in size, the Environmental Scan does not seek to
capture every issue within every sector. It is a snapshot of a continually evolving story
that is intended to alert and inform a wide audience of stakeholders and enhance their
capacity to act.
 Annex III: Case studies on how Industrialised Countries Approach Sector Skills Development \ 107
Closely related to the production of labour market
intelligence is the ability of the Australian approach
to combine state, regional and sector priorities
for skills development. A formalised mechanism
is in place to ensure that synergies are achieved
between these different levels.
Since their inception, the ISCs, as well as the former
structures, have gained considerable success in
the development and support for the delivery
of training packages. There are an estimated
1.1 million learners enrolled in publicly funded
qualifications. The quality assurance process can
in part explain the continual success of the training
packages. Each year the training packages are
updated using material from the environmental
scan, ensuring that they are responsive to
employers’ needs and also provide guidance to
training providers on improving how they operate.
The continued upgrading of these packages is
systematic and involves the following:
• State and territory training authorities and the
DEEWR are briefed on the changes;
• National consultation;
• Changes are validated by industry;
• Stakeholders accept the final decision;
• The National Quality Council
endorses changes.
The strengths of the ISCs are also possible
causes of their weaknesses. For instance, the
wider consultation among different levels and
stakeholders can lead to confusion over the
ISCs remit. That is to say ISCs are a structure for
representing employers and stakeholders, and not
the voice of the industry in the sector. According
to City and Guilds (2013) the former distinction is
very important, as ISCs are a mechanism to collate
and promote the needs of industry, as opposed to
acting as a direct channel for the expressions of
industry’s interests.
Another possible limitation or lesson to be learned
from the Australian approach, especially in relation
to the former ITABs, is the difficulties of capturing
stakeholder views at the national and decentralised
levels. Under the former scenario, national level
ITABS experienced difficulties in taking on board the
perceptions of employers at the local level, whereas
employers at the state/territory level felt that their
views had not been taken on board. As Sung et al.
(2006) notes, this situation reflects the realities
of working in a county with a two-tier governance
arrangements, the size of the country and the
possible competing arrangements between the
commonwealth and state/territory levels. Attempts
have been made to overcome these limitations,
especially at the state level.
A final and equally important limitation of the ITABs
is the national skills framework and the way in which
skills are funded. Under this arrangement each
state has a different budget for supporting skills
development. As a consequence, when RTOs turn
the standards into training programmes within
different states or territories they have to comply
with the defined budgets and number of training
hours. In practice this could mean that certain
elements delivered within a programme could vary
from one state to the next.
Sector skills planning in Canada: a
case study of best practice?
Introduction
Canada has one of the most highly educated
workforces in the world, but still experiences
serious skills shortages in the areas of technology,
engineering, ICT, health sciences and skilled trades.
Historically, Canada has relied on filling the nation’s
shortage of skills by promoting the immigration
of skilled professionals from foreign countries,
although the evidence would suggest that this has
not been sufficient to overcome the skills deficit.
The federal government’s approach since early
2000s has been on supporting improvements to its
vocational training system and increasing the levels
of private sector investment in skills training.
Canada has benefited from a sector approach to
skills planning for 30 years, where the activities
of some 35 SSCs have had a demonstrable and
significant impact in addressing the country’s
skills shortages. Nonetheless, despite many
achievements and individual success stories,
there are still significant challenges facing the
network of SSCs which, to a considerable extent,
limit their operational capacity and effectiveness.
Making policy changes to enable reforms which
can extend the influence and control of SSCs over
the training college system would be likely to lead
to improvements in the quality of training and
the employability of learners. Unfortunately, the
108 \ Mapping Sector Skills Development across the Commonwealth
country’s complex two-tier system of governance
is likely to make such reforms untenable, at least in
the short term.
Background context
Canada is a high-tech advanced industrialised
nation, ranked 19th in the world in terms of GDP,
with a GDP/capita of US$43,100, making it one of
the world’s richest countries. At the same, it should
be pointed out that 9.4 per cent of its population
(mainly indigenous people) still live below the
poverty line.131
Since World War II, the impressive growth of
its manufacturing, mining and service sectors
has transformed the nation from a largely rural
economy into one that is primarily industrial and
urban. Canada enjoys a substantial trade surplus
with the USA, which absorbs about three-quarters
of Canadian merchandise exports each year.
Canada is the USA’s largest foreign supplier of
energy, including oil, gas, uranium and electric
power. It is also one of the largest oil producers
and has the third highest oil reserves after Saudi
Arabia and Venezuela (CIA World Factbook 2013).
Given its abundant natural resources, highly skilled
labour force and modern capital plant, Canada
enjoyed solid economic growth from 1993 through
2007 when it fell into a sharp recession in the final
months of 2008, although it escaped the worst
effects of the global financial crisis on account of
its sound financial system (CIA World Factbook
2013). In 2013, GDP was 1.6 per cent (CIA World
Factbook 2013).
Its industries and exports include agricultural
products (wheat, barley, fish products and forestry
products), manufactured goods (transport
equipment, food products, wood and paper
products and chemicals), minerals, oil and gas (CIA
World Factbook 2013).
Canada has a population of 35.67 million, of
whom 28.67 million are above the age of 15 years.
However, Canada’s population is not spread evenly
over the territory, as two out of three Canadians
live within 100 km of the southern border with the
USA, with more than 80 per cent of the population
living in just six metropolitan areas. The population
is also ageing. The long-term demographic outlook
for Canada points to the likelihood of negative
population growth over the next 15 years, with
immigration the sole growth factor. Simultaneously,
a substantial drop of as much as 5–10 per cent in
the number of active labour market participants
is expected. These macro shifts will bring labour
shortages over the following decades (CIA World
Factbook 2013). The labour force stood at 19.07
million in 2014. Labour force participation has
dropped to 66.4 per cent from nearly 68 per cent in
2008 (King 2014).
The majority of the employed population are in the
services sector (76 per cent) with manufacturing
accounting for 13 per cent, construction for 6 per
cent and agriculture for 2 per cent.
Unemployment has fallen since the recession
peak of 8.7 per cent in August 2009 and stood at
6.9 per cent in March 2014, which is close to its
long-term average rate (OECD 2012). Territorially
there are wide variances in unemployment such
that in 2014, provincial rates ranged from a low of
4.5 per cent in Saskatchewan to a high of 11.8 per
cent in Newfoundland and Labrador (HRM Guide
2014). The uneven distribution of unemployment
reflects different conditions in the labour market
depending on location, age and the skills sets of
those seeking work.
The workforce is comparatively highly skilled. 84 per
cent of Canadian adults (aged 25–64 years) have at
least an upper secondary education, which exceeds
the OECD average of two-thirds of people. It also
has the highest level of tertiary educated people
within the OECD, with 45 per cent holding a tertiary
degree, which is matched only by Israel and Russia.
Another 22 per cent of Canada’s population hold a
tertiary type B (vocational) qualification.132
Before 2008/09 Canada was caught out by
a commodity boom in oil prospecting and oil
producing industries driven by global demand
which induced scarce skills in key occupations
but the recession eased these skills shortages.
However, some occupations have been perennially
exposed to skills scarcity, leading to 2012 research
commissioned by the Canadian Parliament into
STEM skills, ICT, health care and the skilled trades
(Canadian House of Commons 2012).
As one study noted:
Skills shortages have developed in certain fields and
regions in recent years. Earnings premiums for people
in some professions, notably health, engineering
and skilled trades have increased. And vacancy rates
have risen for skilled trades, with the increase being
particularly large in Alberta and Saskatchewan. While
reforms have been implemented to strengthen
 Annex III: Case studies on how Industrialised Countries Approach Sector Skills Development \ 109
adjustment so as to overcome these shortages,
there is still room to go further by improving labour
market information, increasing responsiveness
of the education and training system to labour
market demand, making the immigration system
more reactive to current labour market conditions
and reducing regulatory barriers to inter-provincial
labour mobility.
(Carey 2014)
In Canada, the government’s approach to
identifying current and future skills shortages
focuses on forecasting models, key informant
interviews and analysis of current information on
trends in the labour market. The Human Resources
and Skills Development Canada (HRSDC)
constructed a national model, the Canadian
Occupational Projection System (COPS), which
has been adopted by the provinces (e.g. Alberta,
British Columbia) and implemented for economic
sector skills analysis. Its forecasts are based on 140
occupations described in the three-digit National
Occupational Classification (Canadian House of
Commons 2012).
The government’s plans for addressing the
country’s skills shortages are built around four
targeted interventions: (i) making it easier for
skilled immigrants (in scarce skills occupations)
to enter the country and streamline the systems
for recognition of their overseas qualifications; (ii)
investing in skills training for certain disadvantaged
groups especially the indigenous population to
satisfy the demand for skills in remote non-urban
areas; (iii) enabling mature skilled workers to work
longer by extending the time for retirement; and (iv)
improving the partnerships between government
and the private sector for expanding the number of
training placements and improving the relevance
and quality of the training (Canadian House of
Commons 2012).
An outline of the Technical and
Vocation Education and Training
system
Canada is a federal system in which government
powers and functions are shared between two tiers
of government: federal and state. In terms of its
constitution, the 10 provincial governments and
3 territories are responsible for the organisation,
delivery and assessment of education at the
elementary and secondary levels, for TVET and
for post-secondary education. This autonomy
allows them to tailor their own education systems
according to local requirements where there are
variations between the provinces in terms of
language, culture and ethnic interests (CMEC 2008).
This has led to significant differences in standards,
curriculum content, assessment, accreditation,
quality assurance, governance and accountability
policies which in turn have led to restrictions on
labour mobility between the provinces.
The federal government does not have a Ministry
of Education, but its wider interest in human
capital development in order to sustain economic
growth is articulated through the Department of
HRSD which has a mandate to develop policies in
skills development and learning as well as other
workforce-related areas. It also supports students
through the Canada Student Loans Programme and
provides information services for citizens online.133
Technical and vocational training is mainly offered
at post-secondary level through a network of
community, technical and commercial colleges
which offer degrees, diplomas, certificates and
attestations depending on the nature of the
institution and the length of the programme.
Courses vary in length from 1 to 4 years.
Apprenticeships are an important element of
VET provision in Canada, although they have
been in decline in the past two decades. The
apprenticeships are generally aimed at adults,
although in some provinces the participation levels
of young people are increasing. As with most
apprenticeship models, practical training is provided
in the workplace and theoretical learning takes
place offsite with training providers (Bosch and
Charest 2006).
All provinces have a mix of public and private
training providers. Although there are thousands
of post-secondary non-degree institutions,
the country has 183 recognised public colleges
and institutes, including those granting applied
and bachelor’s degrees. In addition to the
recognised institutions, there are also another 68
university-level institutions and 51 college-level
institutes operating as authorised institutions, at
which only selected programmes are approved
under provincially established quality assurance
programmes. Most colleges have boards of
governors appointed by the provincial or territorial
government, with representation from the public,
students, and instructors. Moreover, programme
planning incorporates input from business, industry
110 \ Mapping Sector Skills Development across the Commonwealth
and labour representatives on college advisory
committees (CMEC 2008). The Association of
Canadian Community Colleges (ACCC) represents
community colleges across Canada. Among other
services, it promotes quality programmes and
establishes quality criteria for its members but does
not provide formal quality assurance.134
Participation in post-secondary education has
grown significantly in the past few years, when
measured both by the number of enrolments and
by the proportion of the population in any given age
group who are attending college or university. The
ACCC reported that, in 2004–05, full-time public
college and institute enrolment was almost 515,000
students in credit programmes. Including both full-
and part-time students, there were about 1 million
students in credit programmes and about 500,000
in non-credit programmes. Just over 173,000
students graduated from public colleges and
institutes in 2004–05. Whereas females continue to
make up the majority of students on both university
and college campuses, they are still in the minority
in the skilled trades (CMEC 2008).
Secondary schools, which cover the final 4–6 years
of compulsory education, also offer vocational
courses as specialisation subjects, either to
prepare students for the job market or to meet the
different entrance requirements of post-secondary
institutions (CMEC 2008).
There are also private vocational institutions that
provide employment-specific training, such as
broadcasting, cosmetology, security and massage
therapy. Courses are offered in a range of formats
including internships, accelerated programmes,
distance and correspondence, classroom or a
combination of more than one of these methods.
In terms of certification, public post-secondary
training institutions (‘recognised’ institutions)
are given the authority to award diplomas and
certificates.135 Quality Assurance of education
and training provision in Canada is generally the
responsibility of training providers themselves
which have to ensure that they comply with state
policy and legislation.136 The exact arrangements
for quality assurance for providers differ significantly
between provinces. There is no federal standard to
which they must adhere. In some provinces, such
as British Columbia, there are a multiple number
of quality assurance bodies. Certification for
apprenticeship programmes requires recognition
by industry as it needs to demonstrate competence
in applying knowledge and skills (as defined by a
standard or certification scheme). The Association
of Accrediting Agencies of Canada, which is a
national membership organisation representing 30
professions, provides guidelines and assistance for
the maintenance of standards and supports good
practice across all the accrediting bodies.137
The sector skills approach
The sector skills approach in Canada dates back
to the 1980s when, in response to a rapid decline
in jobs in the country’s metal industry sector,
business and labour stakeholders formed the
first SC ‘in order to deal with the crisis through
skills development, retraining, redeployment and
reorganisation of working practises’ (ECORYS
2010). Today, there are more than 35 SCs covering
about 25 per cent of the Canadian workforce.
The tripartite nature of the Canadian skills
system makes it mandatory for SCs to have equal
representation from all stakeholders. SC boards
are elected by industry and must represent the key
stakeholder groups, including business, education,
labour and any groups specific to the industry that
they represent.138
The objective of skills councils has changed with
improving economic conditions in Canada with
the current focus on skills development for young
people, creating new industries and enhancing
co-operation between existing industries.139
The structure and work of SCs is not definitively
prescribed. The Councils have evolved according to
a differing industry landscapes, with each Council
delivering different activities, according to industry
needs. Generally, the following list describes their
activities, although not all Councils perform all
these functions:
• provision of up-to-date labour
market information;
• activities to create career awareness;
• development of NOS;
• development of industry supported curricula
(i.e. apprenticeship-based);
• community college-based VET programmes;
• implementation of training programmes/skills
development tools, including e-learning;
 Annex III: Case studies on how Industrialised Countries Approach Sector Skills Development \ 111
• provision of the Essential Skills Initiative, which
focuses on basic competencies in nine areas,
including literacy, numeracy, communication,
IT skills and teamwork competencies;
• development of skills recognition systems,
including those of foreign trained workers;
• credentialing systems;
• promotion of investment in HRD and
continuing training in firms;
• investment in the retraining of workers for
jobs within or outside the sector.
An important activity of the SCs is the development
of NOS using industry reference groups with
experts from firms. These standards form the basis
for developing training curricula which are offered
to firms, for apprenticeship training and continuing
training, and to community colleges for school-
based training. This action is seen as the core of the
work of the SC, as it has links with most of the other
actions it needs to undertake. As these standards
are recognised nationwide by and within the sector,
qualifications based on them enable the national
and global mobility of workers which is an important
objective for employers and labour organisations,
alike. The standards also promote the application
of assessment of prior learning procedures,
through which experienced workers can obtain
a qualification, as well as providing the basis for
recognition of foreign credentials.
In order to assist SCs with standards setting,
assessment and certification (and accreditation),
the Alliance of Sector Councils (established in 2005)
has collaborated with the Canadian Standards
Association (TCSA) to produce guidelines for SCs
and to promote collaboration between the various
stakeholder groups concerned (TASC 2010).
These were developed to ‘maximise efficiency,
minimise cost, and optimise the benefits of a
harmonised system, without constraining creativity
or effectiveness’.140 However, although SCs have
the main role in developing the NOSs and also
assist with the development of curricula and
accreditation, there is no formal role which they
are mandated to play in the quality assurance of
qualifications. TASC also supports the SCs with the
development of their LMI systems.
Although there is no national qualification
framework in Canada, some SCs have developed
Qualifications Frameworks to show clear pathways
and progression routes in professional qualifications
in a particular sector. An example is the Culinary,
Food and Beverage and Hospitality sub-sectors
of the Tourism and Hospitality SC. The tourism
sector which covers 1.7 million workers, accounting
for about 10 per cent of the Canadian workforce,
has struggled to retain skilled workers in its five
sub-sectors (food and beverages; catering;
accommodation; outdoor; transport; and services)
owing to the fact that many young workers see it
a temporary means to find work while studying for
other occupations. In order to attract long-term
workers, the SC developed a six-level qualification
framework from entry level to management.
Training materials for each level are developed
by Industry Reference Groups with members
coming from different parts of Canada who have
gained wide experience in defined occupations. In
cooperation with community colleges the group
outlines training programmes. In a number of cases
trainees in tourism courses receive two certificates:
one awarded by the community college and the
other by the Tourism Human Resources Council.
Although the college certificate is recognised
within the province/territory, the SCs’ certificate is
recognised throughout Canada. The industry knows
the value the SC’s certificate.
Many SCs also develop and introduce models for
the recognition of foreign credentials. Canada is an
immigration country, with a flow mainly coming from
India, China, Pakistan, the Middle East and the USA.
Various SCs have developed models to assess the
value of foreign diplomas and/or assessment of
prior learning procedures.141
Responsibility for the actual design and delivery of
post-secondary education and training lies with
the provincials or territorial governments, although
training providers in provinces and territories, often
base the content of their training programmes on
the occupational standards developed by the SC.
As mentioned earlier, Canada has a myriad of
accreditation bodies at state level making quality
assurance of training programmes complex and
challenging. SCs have no direct role in this area.
The accreditation of training providers is normally
voluntary, with the Alliance of Sector Councils
and the Canadian Standards Association working
together with stakeholders to develop guidelines
to ‘support the delivery of national occupational
112 \ Mapping Sector Skills Development across the Commonwealth
standards, personnel certification [programmes],
and accreditation [programmes] for educational or
training courses and [programmes]’.142
Suggestions for improving SCs’ role in the quality
assurance process include the introduction of
audit systems to assess the ways in which private
trainers deliver qualifications on behalf of SCs and
employers. These audit systems, once introduced,
could become a formal mandate of SCs, under
their remit of improving skills delivery and could
form the basis of an improved and expanded
accreditation system.
SCs currently receive core funding from
government to cover overheads, including staff
and operation costs, which can be supplemented
by project-specific funding for federal initiatives to
develop the skills sector. This second tier of funding
is normally used to finance projects which support
the federal government’s skills priorities and may
not necessarily correspond with the industry’s
skills needs. Initially, the concept of SCs required
that they become self-sufficient within 5 years of
operation, through funding by industry. However,
this was abandoned when policy-makers realised
that self-funding would lead to a loss of influence by
government in the activities of the SCs.143 Generally,
the level of core funding is widely perceived to
be insufficient to carry out the wide range of
activities that are demanded of SCs, which has led
some of them to implement a third tier of income
generation through certain fundraising functions.
This includes additional services such as research
and consultancy. As an example, the Tourism and
Hospitality SC sell their standards and training
packages to overseas clients.
In contrast, the Quebec government established 26
Comités Sectoriels (provincial sector committees)
which it funded through a training levy imposed
on all public and private companies with an annual
wage bill exceeding C$250,000, and at least 1
per cent of their wage bill was to be invested in
training.144 The levy is seen as an effective means of
engaging all employers and can be organised along
sectoral lines.
Lessons from the sector-based approach
Overall, the impact of SCs in Canada has been
positive. The Conference Board of Canada, a
renowned research organisation in Canada which
was set up half a century ago, prepared 12 case
studies in different sectors to demonstrate the
most important impacts and benefits of SCs
(Conference Board of Canada 2009). A summative
evaluation study was undertaken in 2006/2007
which concluded that the SCs had made a direct
impact on employees and employers. Workers
had obtained the skills they needed to get jobs
and employers had gained access to workers with
the right skills. Firms had become more profitable
because the workers were more productive and
more employable. The report ‘provided evidence
that justified continued Government of Canada
support for SCs. The consensus (was) that Councils
bring stakeholders together to address HR issues,
and that this would not occur in their absence’
(Human Resources and Skills Development Canada
2009: slides 16–17).
The HRSDC which is the federal government’s
agency for promoting skills development sees
the key to achieving successes within the Sector
Council Programme (SCP) is the fact that it is an:
‘employer buy-in, industry-driven innovation (with)
strong leadership from Sector Councils … As a
business-led labour market intervention, the SCP
is effective because employers are best placed to
know their own needs.’ (Human Resources and
Skills Development Canada 2009: slide 7)
With regard to skills planning one particular accolade
was offered for the role of the Construction Sector
Council (CSC) LMI model:
The strength of the Construction Sector Council’s
LMI model lies in the fact that it strives
to be inclusive, practical and purposeful. …One
company interviewed for this study
noted that CSC, as a neutral, independent
organisation, with a well-grounded knowledge
and interest in the construction industry is one of
the only organisations in Canada
capable of achieving a pan-Canadian construction
LMI system.
(Bloom et al. 2005)145
It can be seen that by influencing the learning
system, SCs have helped to ensure workers that
have the skills they need to get or stay in a job by
getting access to practical and relevant learning in
the workplace; improved adaptability to changing
and/or creating new workplace environments;
improved and/or increased job mobility; and the
ability to participate more fully in the workforce.
 Annex III: Case studies on how Industrialised Countries Approach Sector Skills Development \ 113
Through their activities, employers can offer new
services and learning opportunities to their workers;
they have a strong voice in the development of skills
and workplace learning strategies that meet their
needs; they have increased ability to anticipate and
address emerging labour market issues; and they
can gain a competitive edge with a productive and
skilled workforce in today’s increasingly competitive
marketplace. SCs have also provided many benefits
for training institutions, such as facilitating effective
relationships between industry and the learning
system and helping to ensure that the curricula is
responsive to, and reflective of, the sector’s needs.
However, there are also a number of challenges
and weaknesses in the SC approach. First, there
are significant differences in responsibilities and
activities between SCs, making comparisons
between industry achievements and growth
difficult. Some SCs award certificates and accredit
institutions; others are extremely active in ensuring
that the NOSs they create are utilised nationally in
that sector. With such different remits, there can is
limited meaningful transmission of good practice.
Second, the two-tier approach of Canadian
governance makes it challenging for the SCs
to develop strategies and operational plans
at a national level while also trying to achieve
relevance and impact at a regional and local
level. There may also be duplication across some
state policies and training initiatives as a result of
working in silos and there are no inter-regional
equivalences for qualifications and competencies.
Solutions to combat the divide have been the
introduction of provincial SC associations, which
work across sectors at a regional level to promote
skills development. However, a difficulty with this
approach is the potential duplication of effort.
Moreover, the relationship between SCs and
regional bodies has also been criticised as not
being as collaborative and effective as it could be.
In some cases SCs have overlapping functions with
existing regional sector bodies, which has created
resentment and an ineffective working relationship.
Even so, successful relationships between SCs and
regional stakeholders can have a significant impact,
provided that regional bodies and stakeholders
can align their local interests with national policy
and also communicate their needs effectively at a
national level.146
The fact that SCs have no authority to impose
NOSs and sector-focused accreditation and
certification systems upon provincial governments
and skills delivery bodies is another problem as
there is no means of ensuring their compliance
with agreed standards. Instead, buy-in is presumed
through stakeholder collaboration. In addition,
where quality assurance mechanisms do exist,
they can be bureaucratic and time-consuming.
Moreover, the lack of compulsory quality systems
(standards, certification and accreditation) is also
a serious challenge to creating labour mobility and
transferable skills at a national level. The ability of
SCs to set standards, certify individuals and accredit
institutions without reference to a nationally agreed
set of quality criteria is highly risky.
Canada’s SCs are underfunded and require
significant resources to build links with their
dispersed stakeholders because of the two-tier
governance structure. Where there are insufficient
resources, uncoordinated duplication often
occurs.147 One study suggested that by making
sector bodies choose the possibility of funding over
prioritising regional and sectoral needs, the federal
Government may be undermining its own strategies
for skills development and sector co-operation.148
The imposition of a voluntary or mandatory skills
levy, such as the one adopted in Quebec to fund its
regional skills councils, would improve the funding
base and overall performance of the SCs.
Finally, SCs do not report sufficiently on their results,
particularly their successes and outcomes at each
regional level which presents a significant challenge
in terms of collating information and gauging
good practice and progress. There are also quality
checks performed upon SCs themselves, apart
from normal reporting mechanisms through the SC
programme to the HRSDC. By introducing reporting
and assessment mechanisms, the impact of SC
work on a region-by-region basis can be assessed
and benchmarked against national priorities.149
In summary, the consensus seems to be that
SCs have an important role in linking industry
with vocational training providers which has
led to significant improvements in addressing
skills shortages in the country. However, their
effectiveness could be improved considerably if
measures were introduced to extend their control
over the quality assurance of providers (compliance
with NOSs, powers of accrediting programmes and
114 \ Mapping Sector Skills Development across the Commonwealth
assessing learners), overcome duplications with
competing provincial agencies and improve their
funding base.
Singapore: making the transition
from centrally planned state
development to a more inclusive
sector-based approach.
Introduction
The approach to sector skills planning in Singapore
has developed over four distinct phases. The
first three phases occurred from the time of the
country’s independence in 1965 until 2003 during
which a list of priority economic sectors, defined
by the planning directives of a few key ministries
and state agencies, determined what type of skills
would be developed. The single most outstanding
characteristic of the TVET system was that it
was shaped by the country’s industrial and trade
policies. During the last phase, from 2003 onwards,
there has been a serious effort to involve the
private sector, especially MNCs organised through
industrial clusters, in this process. This is achieved
through the setting up of SSCs in 24 different
sectors. This recent initiative was necessary in
order to develop Singapore into a knowledge-
intensive economy based on high value-added
manufacturing goods and services, a high level of
research and development and regional integration
which required a significant improvement in the
skills base of the country’s workforce.
Setting the context and levels of youth
unemployment
Once a poor colonial trading outpost of the British
Empire, Singapore is now an advanced economy
built on high value-adding manufacturing and
services. For three decades Singapore enjoyed a
long period of uninterrupted growth driven largely
by high levels of inward investment by MNCs in low
valued-added manufacturing, especially electronics
and chemicals. During this period, the country’s
impressive economic development was centrally
planned and driven by the government acting
through a few state ministries and institutions
working in close collaboration, where the skills
development system was essentially determined
and shaped by the country’s industrial policy (Seng
2012 cited in Kraak 2013: 95).
By the late 1990s, the direction of government
policy changed as a result of both the Asian financial
crisis and a realisation that it was starting to lose its
comparative advantage in low-cost manufacturing
to neighbouring countries (Thailand, Malaysia and
Indonesia). As a result of this double crisis, the
government embarked upon a new strategy of
restructuring the economy to be based on high-
valued adding manufacturing and services. Today,
Singapore has a per capita GDP of S$78.362 million,
making it the second best performing economy
in the Asia-Pacific region ahead of such giants as
Australia and Japan (CIA World Factbook 2013). The
Economist Intelligence Unit (2014) forecasts that
the economy will grow at 3.7 per cent in 2015, with
accelerated growth forecast in the period 2016–19
as external demand strengthens.
In 2014, Singapore’s labour force was estimated at
3.43 million, with a labour participation rate of 67 per
cent, of which 51 per cent have completed tertiary
education, compared with 36 per cent 10 years ago.
Almost 70 per cent of the workforce is engaged in
service-based industries, with another 16 per cent
in manufacturing and 12.5 per cent in construction
(Government of Singapore 2014).
Unemployment is officially recorded at 2 per cent
and youth unemployment is 4.3 per cent, which is
well below half the global average (Government
of Singapore 2014). One explanation for low
youth unemployment is that low levels of youth
participation in the labour force is associated with
higher enrolments in tertiary education. Even
so, young job seekers do not usually experience
long periods of unemployment and less than 7.5
per cent take more than 25 weeks to find work
(Government of Singapore 2014). Many observers
believe that the country’s centrally planned
education and training system, which even today
is closely integrated with the country’s industrial
policies, are significant reasons for low levels of
unemployment, as well as being important for
facilitating the transition from school to work for
young people.
Overview of the skills development
system
The skills development system in Singapore has
evolved in response to the economic priorities
defined over four phases of development since
independence (Kraak 2013). The first phase of
development (1959–79) encouraged MNCs to
 Annex III: Case studies on how Industrialised Countries Approach Sector Skills Development \ 115
invest in low valued-added manufacturing, while
at the same time emphasis was given to ensuring
that all children had access to the same basic
education. During this period, technical education
was offered through secondary VE schools. Only
around the year 1975 did the government establish
nine technical colleges under the supervision of
the Vocational Industry and Technical Board (VITB).
The technical colleges under the VITB offered a
range of artisan trade courses, mainly in building and
engineering trades, all of which were designed to
serve the needs of low skills requirements for low
valued-added manufacturing. By the mid-1970s
the VITB was training 14,000 students annually,
representing approximating 20 per cent of the
secondary school population (Seng 2012, cited in
Kraak 2013: 95).
By the end of the 1970s, Singapore had started
losing its comparative advantage as a low-cost
manufacturing producer. This triggered the second
phase of economic development in which the main
purpose was to move Singapore’s manufacturing
sector industries up the value chain to higher
value-added production. This development led
to some corresponding changes in the TVET
system as the government sought to upgrade the
skills of the workforce through a number of new
measures including:
• a range of new (entry-level) skills training
programmes administered by the VITB which
not only increased the skills content of existing
programmes but also widened the scope of
training programmes;
• the introduction of new continuing education
programmes (CET) with a focus on English
language literacy and maths which benefited
more than a quarter of a million workers (Seng
2012, cited in Kraak 2013: 95);
• the introduction of a skills levy on employers
intended as an incentive to employers to
invest more in skills training.
The second phase was also associated with
the introduction of a controversial ‘streaming’
approach into the general education system. The
cornerstone of this new approach was the creation
of stratified learning pathways linked to academic
ability and aptitude which were also designed to
ensure that 90 per cent of all school leavers were
diverted into one of three post-secondary learning
institutions (Seng 2012, cited in Kraak 2013: 104).
Under this streaming arrangement, the top 25 per
cent of academic performers were channelled into
higher level academic schools providing pathways
to university while the remainder were funnelled into
the TVET system which was made up of:
• polytechnic colleges which accommodated
40 per cent of school leavers, offering a wide
range of practically oriented 3-year Diploma
courses in preparation for middle-level
professions and management; and
• technical colleges which accommodated
another 25 per cent of school leavers.
The third phase of development, covering the
period 1991–2003, focused on developing sector-
based clusters including new product areas such as
biotechnology, advanced electronics, medical and
scientific instruments and other precision products,
process control and automation equipment, and
specialised chemicals and plastics (Lee et al 2008).
This phase also prioritised the development of
the service sector of the economy to build the
country’s research and development capacity.
Again, the TVET system was required to respond
by improving the capacity to deliver advanced skills
training for an intermediate-level skilled workforce
for the new high-tech industries, and an expansion
of the higher education sector to support the new
research and development requirements.
For the TVET sector, this change in focus saw the
establishment of a new structure – the Institute
for Technical Education (ITE) – whose purpose was
to train technicians and other skilled personnel
for jobs and careers at the intermediate level in
major sectors of the economy. It offers a wide
range of 2-year course programmes in Schools of
Engineering, Business and Services, Electronics
and Info-Communications Technology, Applied and
Health Sciences, Hospitality and Design and Media
for as many as 25,000 students annually through
one of three large and modern technical institutes.
Notably, the curricula were designed with direct
input from industry. The new reforms also created
several ‘ladders and bridges’ linking alternative
pathways from the ITE to the polytechnic level
and then on to the university to cater to different
needs, talents and potential. According to one
review, over a period of 21 years (1992–2013), the
ITE effectively rebuilt and transformed the former
system of traditional ‘vocational institutes’ into
top-line modern ‘regional colleges’ (Seng 2012).
An important but not generally acknowledged fact
116 \ Mapping Sector Skills Development across the Commonwealth

is that the ITE is credited with having successfully
transformed public perceptions of vocational and
technical education inasmuch that TVET is now
widely recognised for its relevance, quality and
values in a global economy. As a measure of their
success, in 2009, more than 82 per cent of students
from the Technical Education Institutes completed
their training and were placed in jobs (Ye 2013).
An important feature of the three development
phases has been the construction of curricula for
both the polytechnic- and technical-college-level
institutions closely aligned to the occupational
skill needs of industry. This process of alignment
was achieved through a centrally controlled
manpower planning process in which the
government ministries of Education, Manpower
and Industry worked in close collaboration. Under
this arrangement, the Ministry of Trade would
determine the country’s manpower projections
based on planned investments while the EDB
set about establishing joint government training
centres which would meet the skills needs of the
MNCs (Sung 2006). Over time, in the last phase
of development, this function was taken over by
the WDA – a national tripartite agency which sets
targets for education and training at all levels.
As a result of the above process, the polytechnics
and technical colleges were alerted to changes
on the economic horizon through receiving timely
information on national manpower and industry
development plans of the various agencies which
they could respond to by regularly rolling out new
courses and constantly reviewing and updating
existing ones to keep pace with the changes in
industry and commerce.
In this configuration, the polytechnics developed
with a strong industry-driven and practice-based
curricula and also provided (and continue to
provide) business support to firms in Singapore
through various programmes. These include
partnerships on joint research and development
work, collaborations on industry projects and the
provision of professional and technical services. In
addition, many specialist centres and laboratories
have been established between polytechnics and
corporations that provide excellent platforms for
training students and developing staff in emerging
technologies. Furthermore, in trying to inculcate a
global mindset, the polytechnics offer placements
for students in foreign countries which are
organised to expose students to diverse business
contexts at the cutting edge of business practice.
In the last phase of development (2003 onwards),
the focus has been on changes within the firm
where the emphasis was given to achieving higher
levels of productivity, innovation, quality, work
redesign and entrepreneurship. This reorganisation
of work requires new skills for all occupational
levels and types, requiring the upskilling across all
segments of the workforce, and, accordingly, there
was a need to significantly expand the capacity of all
TVET and higher education institutions.
In order to support this latter phase of reform,
emphasis was given in 2003 to the continuing
vocational education and training (CVET) of the
entire adult workforce, the focus of which has not
been only on workers with low skill levels. The push
to build a knowledge economy based on innovation,
creativity and entrepreneurship also requires higher
level skills for the professional and managerial
strata. Over the period from 2011 to 2015 the
government plans are to train upwards of 240,000
people annually through CVET programmes
(Government of Singapore 2008; Economic Review
Committee 2009; Sung 2011).
At its core, the new CVET model entails:
i. A Workforce Skills Qualifications (WSQ)
system founded on a national competency-
based credentialing system for employed
adult workers. The WSQ covers 24 sectors
and has seven levels from certificate to
graduate diploma. The WSQ is modular and
competency-based with each qualification
divided into 10 statements of attainment
(SoAs), enabling learners to acquire credits
incrementally towards a full qualification. It
covers only vocational qualifications aimed at
industry and the services sector. It has a strong
emphasis on articulation between the sub-
systems of the wider education and training
system. Hence, a worker with a polytechnic
diploma or ITE Certificate will be able to take
up a WSQ course in industry whereas a WSQ-
equipped worker will be able to cross over to
the educational system and earn a diploma or
even a degree.
ii. The key public providers – polytechnics and
ITE – are mandated to deliver these WSQ
qualifications.
 Annex III: Case studies on how Industrialised Countries Approach Sector Skills Development \ 117
iii. Government funds were provided to establish
49 high quality CET centres in 24 economic
sectors. CET centres are large training
institutions with extensive infrastructure and
an established reputation as strong leaders in
training within a particular economic sector.
CET centres are, for the most part, the main
driving force behind sectoral training. They
come into existence from various backgrounds.
They can be a statutory body, a professional
body, a higher education institution (e.g.
polytechnic), a private sector company, or a
specialist firm that is invited from abroad by
the EDB (e.g. pharmaceutical manufacturing
training). One unique feature of CET centres is
that they carry out the full range of employment
and training services, ranging from promotion,
recruitment, training, and assessment to final
evaluation and job placement (Sung 2011).
The development of a sector-based
approach to skills development
It can be argued convincingly that Singapore has
structured and organised its national TVET system
along a sector-based approach since its first phase
of economic development during the 1960s and
1970s owing to the manner in which skills training
for industry was determined by the country’s
industry policy. Key growth sectors were identified
that would promote economic development and
estimates for skilled personnel in these growth-
driven industries were made based on projected
and planned investments in a process that was
managed by a few key government Ministries
working in close collaboration and coordination.
However, whereas the government was the main
driver of these policies and plans, the relevant
planning ministries and state agencies responsible
for TVET continually worked closely with industry
partners by ensuring that skills training programmes
was aligned to employment targets linked to
planned investment and also that the curricula was
designed in accordance with their skill needs.
Gradually, the scope of this relationship between the
private and public sectors widened to include new
sectors and higher levels of skills training within each
successive phase of economic development until,
by the time of the fourth (and current) economic
development phase, with its shift to a ‘knowledge-
based economy’, the government saw it necessary
to formally establish the SSCs. In this regard, it can be
seen that the decision to formalise the relationship
with the private sector through a new institutional
framework was due to the need to ramp up the
skills training system to a level that would enable the
country’s public and private training institutions to
cover the entire workforce (both vertically within each
sector and horizontally across the whole economy)
as well as cater for entry-level programmes for job
seekers and continuing education and upskilling
programmes for the existing workforce.
Over the 2005–2010 period, 24 new ISTCs
were established. These ISTCs comprise
senior managers and technical/professional
representatives from the dominant
businesses in each sector, including local and
multinational businesses.
The role of these councils includes developing a
sector-based strategic plan with regard to CET
needs in the sector, and submitting the plan to the
WDA whose role is described below. As such, the
SSC model adopted in Singapore is primarily focused
on employed workers and not first-time entrants or
the unemployed as is the case in other countries.
Through its engagement with the WDA, the ISTCs
provide advice in setting targets for education
and training at all levels – from artisans, technician,
professionals and managers – and thereby serves
to institutionalise the link between industrial policy
and the education and training system. In turn, these
targets are used to guide funding allocations from
the two NSFs, mentioned above.
In addition, the ISTCs also drive the development
and validation of skills standards, assessment
strategies and training curriculum for the industry
and in this regard they maintain a close working
relationship with the curriculum development
divisions of the polytechnics and technical
colleges and influence the design of nationally
recognised competency-based qualifications
which are registered on the WSQ. In summary,
the ISTCs serve as a forum in which employers
within a defined economic sector can collaborate
in influencing the shape of the TVET system in the
following ways:
• by setting annual targets for the supply of
skilled labour to the sector, defined by type
(occupation) and level;
• by advising and continually updating technical
colleges and polytechnics on the curriculum
content and workplace relevance of training
programmes they offer;
118 \ Mapping Sector Skills Development across the Commonwealth
• by planning and coordinating the continuing
education and training programmes for the
existing workforce; and
• by providing guidelines and technical support
on the application of assessment tools and
instruments which can be used to measure
the competencies of learners.
In order to oversee and coordinate the activities
of the ISTCs and the multiple number and range of
training providers, the government also established
a new tri-partite body, the WDA. It has three
main functions:
i. It is responsible for quality-assurance of the
qualification framework (WSQ) and in this role it
is the issuing body for vocational and technical
qualifications. The WDA does not itself deliver
training but approves and supports a network of
over 400 private and company-based Approved
Training Providers (ATPs) and the 49 larger
CET centres.
ii. It hosts a provider recognition system which
includes procedures and criteria for the
approval of training providers, recognition of
prior learning, trainer credentials and course
accreditation.
iii. It is the overall regulatory authority responsible
for managing and coordinating the national
continuing education programme. Apart
from its planning role, it provides subsidised
funding for training through two funds: the
Skills Development Fund (SDF) and the Lifelong
Learning Endowment Fund (LLEF).
The dual function of offering both accredit training
providers and controlling/influencing the funding of
the training they offer gives the WDA considerable
leverage over ensuring compliance with quality
assurance standards and aligning training
programmes to meet industry demands.
Lessons from the sector-based approach
In a modern world, where countries have to
compete in a globalised market economy,
Singapore provides an excellent example of a
country which has progressed through several
stages of economic and social development to
build a knowledge-based economy. Accompanying
the economic reforms, there have been ongoing
changes to the TVET and higher education
systems, especially in the last decade, ensuring
a close alignment between industrial needs and
those of skills development. These reforms have
shaped both the institutional settings, the target
groups in the workforce who require training and the
structure and content of the training courses.
The most striking feature of these reforms
has been the way in which industrial policy has
had a direct influence on the education and
training system through a centralised state
development approach helping to ensure links were
achieved between priority sectors for economic
development and strategies for skills formation.
Although, internationally, this approach has
generated much controversy among educational
experts on the limitations to educational
attainment imposed by the influence of industry on
curricula outcomes, especially in terms of tertiary-
level technical education, many commentators
acknowledge that the success of the Singapore
economy over five decades with its low levels
of unemployment (and especially its youth
unemployment) is due to this close relationship
between industry policy and skills planning.
The Singapore model also demonstrates the
critical importance of involving the private sector
in its (centralised) approaches to skills planning.
Through three phases of development planning
over four decades, it has been able to articulate
this relationship through informal consultations
between private firms and key state agencies
responsible for industrial policy and then to manage
the implementation of the training through
an efficient horizontal coordination between
different Ministries. This is significant because the
government has been able to demonstrate that,
at least for a significant period of its economic
development, it was actually possible to implement
a sector skills planning approach without the need
to set up elaborate institutional arrangements such
as the development of a qualification framework,
the creation of a network of SSCs (ISTCs) and an
overall national TVET coordinating body (the WDA).
One explanation for this might rest on the relatively
low scale of training interventions required in the
earlier development phases. Given the country’s
initial focus on low value-added manufacturing,
the skills demand was based on a limited number
of basic skilled occupations in a limited number of
priority economic sectors located in a small island
economy of only 5 million people. Even with a shift
to higher value-added manufacturing in subsequent
 Annex III: Case studies on how Industrialised Countries Approach Sector Skills Development \ 119
phases, building the additional capacity in the TVET
system to accommodate intermediate-level skills
training did not represent a serious challenge for
the state’s central planning agencies. It was only
in the last economic development phase with
the shift to a knowledge-based economy where
the demand for skills in the market has effectively
widened to include the whole workforce and where
the skills complexity requirement has increased
significantly, was it seen as necessary to formalise
the relationship with the private sector through the
establishment of SSCs and the WDA.
Many countries around the globe have expressed
interest in the Singapore approach and have
sent delegations to see what they can learn and
possibly bring back to their countries, especially
the procedures to link skills requirements to the
needs of the labour market. This process of policy
borrowing needs to take on board a number
of important issues. First, the circumstances
surrounding developments in Singapore have been
guided by the developmental state model – under
which the wider interests of society are put above
those of any specific political or economic interests.
Second, developments in Singapore were driven by
the need to protect the country from political and
military threats. The former factor partly explains
the momentum behind the developmental state
and the need to industrialise and protect their
citizens. Third, the development of Singapore
occurred when global competition was not so
fierce, enabling the country to carve out a market
niche that was built on its origins as a trading port.
Given the former issues it would be very difficult
for any other country to try and emulate a similar
development path. Finally, the success of the
model may be also partially explained by the issue
of scale. Singapore is a small country. Accordingly,
its approach may be transferable only to other small
countries and not to economies with much larger
populations or complex federal/state relations.
Sector skills development in the
United Kingdom: could it have been
done better?
Introduction
The UK sector skills development approach has
provided a possible model for many other countries
around the globe to follow. The approach to sector
skills development has been in existence for 50
years and undergone a number of successive
reforms. The current structures, called SSCs, have a
major remit and many have questioned their ability
to carry out these expected functions. In the past
the SSCs have also been criticised for adopting
what can be regarded as a supply-led approach
to skills development. The recent coalition
government is aware of these difficulties and has
attempted to make the SSCs more employer-led
through the introduction of a number of incentives,
including the Employer Investment Fund and the
Growth in Investment Fund. The initial evidence
shows that this the use of such funds has enabled
SSCs to help leverage considerable private sector
investment into skills development and support the
move towards a more demand-led system
Setting the context and levels of youth
unemployment
The UK follows a largely laissez-faire approach
to the management of the economy and has
experienced some of the highest growth rates in
the EU since 2007, making it the fastest growing
economy in western Europe. The UK’s labour
market also stands out from other countries in the
region, especially in terms of falling unemployment
levels and correspondingly high employment rates.
The UK has also experienced falling unemployment
rates for youth.
The performance of the labour market results
from a combination of structural reforms and
unique circumstances that have worked in the
UK’s favour. The structural reforms have involved
the deregulation of the labour market, reductions
in employee’s social insurance contributions and
incentives to encourage the unemployed back to
work. In September 2014 unemployment levels
reached 1.8 million, representing the lowest rates
for 6 years. The unemployment rate for 16- to
24-year olds was 16.2 per cent, down 0.7 per
cent from the previous quarter and down 4.9
per cent from the previous year.150 The unique
circumstances relate more to the UK’s competitive
position in Europe and the ability to attract
considerable amounts of inward investment over
the past 10 years from the USA, Europe and other
parts of the world.
The performance of the UK’s economy is beginning
to impact on the country’s supply of skills, with signs
that the labour market is beginning to tighten. The
UK Commission’s Employer Skills Survey (2013)
120 \ Mapping Sector Skills Development across the Commonwealth
reported that a total of 559,600 job vacancies
existed in England – up 45 per cent per cent from
2009. The same survey found that the number of
skills shortage vacancies nearly doubled over the
same period, increasing from 63,100 to 124,800.151
This has resulted in the Confederation of British
Industry calling for the government to cut university
tuition fees for science and maths subjects, so that
more people can learn skills that are demanded by
the labour market.
At the time of undertaking research for this report
the UK’s labour market was tightening just before a
national election. This presented the Conservative
government with a dilemma over how to tackle the
growing number of scarce skill areas, particularly in
the light of the immigration debate that is taking
place in the UK.152
An overview of the skills
development system
The UK’s skills development system has evolved in
response to a significant number of government
reforms and there are a number of organisations
delivering skills, as well as layers of bureaucracies to
support this process, which makes it difficult for an
outsider to understand how the skills development
system operates.153
One of the key issues in the skills development
system has been the move towards the use of a
CBE curriculum that focuses on what the individual
can do and not necessarily on their knowledge
or what they understand. Under CBE, a number
of units make-up a module and together these
models make up a qualification. Independent bodies
are responsible for awarding the qualifications.
These awarding bodies verify standards across all
VET institutions. The existence of a large number
of award bodies is a unique part of the UK’s
skills development arena. In other countries the
government is normally responsible for awarding
qualifications. There are a number of well know
awarding bodies in the UK, including City and Guilds,
as well as BETC.
There are three main vehicles that support the
delivery of CBE, namely (a) Further Education
(FE) Colleges, (b) apprenticeships and (c)
private providers.
Further Education colleges
The FE Colleges, formerly known as technical
colleges, started to receive funding from local
government in the post-war period. By the 1990s
there were so many FE colleges that some started
to merge to form polytechnics. The FE colleges
receive funding on a competitive basis and in the
pursuit of income many have started delivery
degree-level qualifications. There are 353 FE
colleges operating in England, of which 270 offer
higher education qualifications. Around 16 per cent
of all students study for a degree-level qualification
at an FE college.154 The body responsible for the
FE sector is the Learning and Skills Improvement
Service and their aim is to accelerate the drive for
excellence. The move towards providing degree-
level programmes has helped develop a preference
for studying more academic-based subjects at FE
colleges, as opposed to vocational ones.
The funding for FE colleges changed in the early
1990s when colleges were made independent from
local municipalities and funding was provided from
central government through a series of different
organisations. Responsibility for funding of FE
colleges rests with a Skills Funding Agency and
levels are based upon the number of learners and
the type of course being followed.155
Apprenticeships
The history of apprenticeships in England goes
back to the middle ages and involved the Master–
Apprentice relationship. Government intervention
occurred in the 1960s following the establishment
of the former national training boards and the
industrial levy. There has been a recent revival of the
apprenticeship in the mid-1990s following severe
skill shortages in technical areas.
Under the programme an apprentice is paid a
full-time wage and receives training towards a
vocational qualification. The apprenticeship can
take between 1 and 4 years to complete and may
include an intermediate apprenticeship at level 2;
an advanced apprenticeship at level 3 and a higher
apprenticeship at level 4 or above. Each of these
apprenticeships consists of:
• a nationally recognised
vocational qualification;
• functional skills (e.g. literacy, numeracy
and ICT);
 Annex III: Case studies on how Industrialised Countries Approach Sector Skills Development \ 121
• a technical certificate such as a BTEC or
City & Guilds award (relevant to the specific
Apprenticeship); and
• other professional qualifications or
requirements as specified by the
particular job.
Responsibility for public funding of apprenticeships
is now shared between the Department for
Business, Innovation and Skills (BIS), which funds
adult apprenticeships, and the Department for
Education (DfE), which funds 16- to 18-year
olds. Working together, the two departments
determine the overall strategy and the policy
context, funding levels and volumes for the
apprenticeship programme. This is co-ordinated
through the single joint ‘Apprenticeships Unit’
which spans both departments. All significant
decisions affecting the programme as a whole
are shared, while the Minister of State for Further
Education, Skills and Lifelong Learning also works
across both departments. Under this system the
Government pays a proportion of the training
costs for apprentices, depending on their age.
The apprentice’s employer will normally cover any
remaining training costs.
The latest statistics on apprenticeships for 2012/13
show that for that academic year, 510,000 people
started an apprenticeship. Of this number 45 per
cent are over 25 years of age compared with 18 per
cent in 2009/10. The majority of new participants
chose apprenticeships in the service sectors,
such as business administration and retail, with 55
per cent of participants being female and 45 per
cent male.156
Private providers
The final organisation involved in supporting the
delivery of CBE is the private providers. Owing
to the fact that the take-up of apprenticeships
by employers was low, private providers started
to play an increasingly important part. Under this
arrangement the private provider acts as a broker
between the government agency and those who
employ apprentices. The private providers are under
contract to deliver a certain number of apprentices,
either themselves or through employers.
Other structures involved in skills
development
There are two other minor structures that support
the delivery of skills development in the UK. The first
of these are the GTOs. Currently, 10 per cent of the
apprenticeships are delivered by GTOs. Essentially,
GTOs are non-profit-making organisations that act
as brokers for a group of enterprises that require
training. In most instances this may involve SMEs
and the GTOs will provide recruitment and induction
for the apprentices. Subsequently, the GTO will
place the apprentices in a firm and provide other
support services, including assessment and off-
the-job training. There are 150 GTOs operating in
the UK, mainly in the engineering sector.
A recent commission into employer-led bodies
found that the GTOs could have a key role in
addressing serious skill gaps and shortages that are
hampering the UK economy. However, currently
the GTOs are found only in northern parts of
England and a very small number are found in the
Midlands. According to this commission, GTOs
should be central to the Government’s plans for
economic growth, rebalancing the economy and
increasing the stocks of technician and higher level
skills, through the expansion and improvement of
apprenticeships.157
Another recent innovation in skills development
is the introduction of NSAs. The NSAs are a
structure that brings together employers and
training providers within a specific sector for the
purposes of developing world class skills. The NSA
can perform a number of tasks according to the
specified need, ranging from the development of
qualifications or frameworks for apprenticeships,
to supporting the delivery of more flexible modes
of training.
Currently NSAs operate in the following sectors:
Social care, health, creative and cultural industries,
nuclear, financial services, retail environment, IT,
construction, power, materials production and
supply, and railway engineering. Early evaluations
of the NSAs that are operating in the UK revealed
a positive impact in that employers are actively
involved on their boards and managed to
leverage private sector investment into skills
development.158 Box 1 outlines the composition of
the National Academy for Construction, indicating
how it relates to the Construction ITB (the SSC for
that sector) plus how it works and its membership.
122 \ Mapping Sector Skills Development across the Commonwealth

Box A3.3.  An overview of the National Academy

for Construction
The National Skills Academy for Construction is a project-based training concept that is
tailored to helping clients and contractors to get the right skills they need, on time and in their
premises. This is a demand-led training model in which the client, along with the contractor,
determines what types of skills are required. Specific targets and requirements are developed
at project level so training is made to fit the needs of each project in the sector.
The National Academy for Construction is led by the Construction ITB, the SSC responsible
for the construction sector. The CITB is responsible for the overall governance of the National
Skills Academy for Construction projects, the delivery in all regions, administrative issues and
training that others cannot provide.
Examples of recent projects undertaken by the National Academy for Construction
include: the 2012 Olympic Park, Manchester Schools Framework, Stanhope Regeneration,
Pinderfields & Pontefract Hospital Joint Venture, Regenerate Pennine Lancashire, Media City
UK, and Lewisham Building Schools for the Future.

The development of the sector skills
system in the UK
Sector skills bodies have been in existence in the UK
for 50 years. Originally, 22 ITBs were established in
1964 and they were heavily criticised for being too
bureaucratic and not responding to the needs of
SMEs (Payne 2007).
The ITBs were eventually disbanded in the 1980s
when the Thatcher government came to power.
Under Thatcher, emphasis was given to productivity
and improving the role of markets, as well as moving
away from centralised manpower planning and
government direction. Under these reforms the
ITBs were rebranded as ILBs in the 1980s, NTOs
in the 1990s and eventually SSCs in 2001. Now
there are 22 SSCs that cover most sectors of the
economy and an estimated 90 per cent of the
workforce.159 The current functions of the SSCs can
be summarised as follows:
• serve as the voice of employers regarding
skills needs;
• promote employers’ investment in
vocational training;
• improve learning supply through the
development of apprenticeships, higher
education and NOSs (Payne 2007: 11).
• improve productivity, business and public
service performance;
• produce high quality information on emerging
demand for skills in the labour market;
• identify skills gaps in the labour market;
• develop occupational standards
and qualifications;
• develop career awareness materials;
• offer training to teachers and trainers at
all levels;
• develop and provide continuing vocational
training (Payne 2007: 12; EC 2010: 44).
This is a wide remit for the SSCs and it is
questionable whether they have adequate
capacity and resources to carry out these activities
effectively. A key vehicle for bringing together the
above activities are the SSA and in the past each
SSC was required to develop one, outlining priority
areas for skills development in their sector, along
with how this will be met. According to City and
Guilds (2011) the development of the SSA involves
the following:
• The skill needs for the sector are analysed for
the short-, medium- and long-term.
• An assessment is undertaken of current
supply in the sector and the quality/relevance
of provision
 Annex III: Case studies on how Industrialised Countries Approach Sector Skills Development \ 123

Table A3.1.  An example of an EIF project funded under e-skills UK

Summary Outputs Other issues
This project is for an improved • 67,600 young people will be more Policy lever:
pipeline of talent into the IT likely to pursue IT-related education
Employability
industry. The proposal is made or careers.
up of four work-streams – CC4G; Total EIF funding:
• 5,000 young people will have
ITMB Degree; Internships; and £499,630
new capabilities that are valued
Apprenticeships. Three of the
by employers. Total employer match
four work-streams are currently
designed and are seeking funding • 200 employers will have invested funding:
to take the products and services over £800,000 of value into the Cash: Nil
through to a self-sustaining talent pipeline.
business model. In-kind: £534,500
• Self-sustaining business models
and value propositions will have
been established.

• Through the above activities it is possible • Responsibility: Employers must ensure

to identify the main gaps and weaknesses
in current provision, and develop priorities
actions for implementation.
• Employers are strongly involved in this process
to identify areas of likely support
• Finally, the SSA will show how the SSC and
employers will work with partners.
Management, governance and funding
issues
The overriding framework guiding skills
development and operation of the SSCs is the
strategy ‘investing in skills for sustainable
growth’. This strategy sets out how the
government: ‘will reduce bureaucracy; remove
unnecessary interference from intermediary
agencies whether local, regional or national;
streamline the organisational skills landscape;
remove unnecessary regulation; and, introduce
new freedoms and flexibilities. Collectively, these
measures will ensure the sector is better able to
meet the needs of individuals, businesses and local
communities’ (Department for Business, Innovation
and Skills 2010: 2).
The strategy for investing in skills for sustainable
growth rests on the following principles:
• Fairness: Government will ensure that funds
are directed at those in need, especially adults
who lack basic skills. They will be entitled for
financial support and other learners who wish
to study at a higher level will be able to obtain
loans on a favourable basis.
that they take on a greater responsibility
for ensuring that their skills are met. The
government will provide good information to
enable employers to make informed decisions,
as well as access to funds to deliver skills
• Freedom: Controls will be devolved from
central government to citizens, employers and
communities so that they are shaping the type
of training services that are provided. This will
increase competition between providers and
free them from the bureaucratic control and
centrally determined targets.
An overarching body exists for the SSCs called the
Alliance of Sector Skills Councils, whose specific
functions are:
• to act as the collective voice of the SSCs;
• to promote understanding of the role of
SSCs within the skills system across England,
Scotland, Wales and Northern Ireland;
• to co-ordinate policy positions and strategic
work on skills with stakeholders across the
four home nations; and
• to help build the performance capability
of the SSCs to ensure they continue to
work effectively on the employer-driven
skills agenda.
Under this framework the SSCs are licenced for
a period of 5 years. In the past the renewal of
licences was based on achieving specified national
targets, but now emphasis is given to continual
124 \ Mapping Sector Skills Development across the Commonwealth
improvement involving informal dialogue and
the review of their strategic and business plans
(ECORYS 2010).
Each of the SSCs consists of a management
board comprising employers, unions and different
stakeholders. The operational team delivers core
services. One of the optional key deliveries are the
SSAs and, as outlined above, this forms the basis
for ongoing collaboration arrangements with the
education and training providers discussed in the
preceding sections.
In the past SSCs received their operational and core
funding directly from government. Under recent
reforms the funding is now driven by the sector’s
needs and the private sector. This process has
been influenced by the recent introduction of the
government’s EIF and the Growth and Investment
Fund. Both of these Funds are managed by the
UK’s Commission for Employment and Skills. Their
funds can be accessed on a competitive basis by
the SSCs in accordance with set criteria.160 The
bid process requires employers in each sector to
make a substantial commitment (a cash or in-kind
contribution) and strategies for implementation.
The UK’s Employment Investment Fund was
launched in March 2011 and has supported 87
projects with the SSCs and partners, totalling an
investment of £70 million with a further £53.9
million matching funds provided by the private
sector. Examples of the type of projects funded by
the EIF can be seen in Table A3.1.
Comments on the effectiveness of
the Sector Skills Councils
Skills development in the UK has a number of
limitations and critics argue that it is a centralised
state-dominated system that fails to involve
employers, provides low-value qualifications
and fails to respond to the needs of learners or
employers. However, it can be argued that recent
reforms have resulted in positive outcomes for the
learner and are providing the means to encourage
employer engagement. A look at some of the
evidence highlights the different perspectives.
The responsiveness of existing skill provision has
been questioned on a number of grounds. The
levels of qualifications being delivered by providers
do not match the type required by employers.
According to the Wolf report the demand for
apprenticeship outstrips their supply, especially at
level 3.161 This situation occurred as a result of the
fact that government funding was targeted at level
2 despite the fact that employer demand occurred
at level 3. It is worth noting that progress has been
made since the research for the Wolf report was
undertaken.
The lack of responsiveness of the skills system is
also evident in meeting the needs of SMEs. The
skill requirements of SMEs are difficult to tackle,
particularly around the logistics of understanding
their needs and in the actual delivery. The
importance of SMEs to the UK cannot be
underestimated. Despite their importance, a survey
of 3,500 businesses found that 71 per cent of small
firms have never heard of the SSCs and only 10 per
cent thought that SSCs responded to the needs of
small businesses.
Limited employer engagement has been a continual
feature of the SSCs. According to UKCES many
SSCs have few or no employee involvement. This is
also a reflection of the decline in national and plant
level bargaining in which employers and worker
representatives could come together to make
decisions about investment in skills development
for their mutual benefit. According to Kraak
(2013: 16):
in contrast to employer led approach, the system
which has evolved in the United Kingdom is civil
servant dominated, with government imposing
national skills policy frameworks on employers
within the consent and buy-in. the UKCES stats this
contradicts reality, bluntly the public sector is the main
driver behind some employer-led approaches – so the
idea of employer leadership is a misnomer.
The lack of employer engagement has been
confirmed by Lanning and Lawton (2012) who
argue that there are three reasons behind the
weaknesses of the SSCs:
• the SSCs are funded by the state, targets are
established by the state and the SSCs are
expected to deliver on state policy. These
circumstances make it very difficult for
employers to engage with the system;
• SSCs are likely to be ineffective under the
current remit, as they cannot tackle wider
employment, labour market-related and
performance issues; and
 Annex III: Case studies on how Industrialised Countries Approach Sector Skills Development \ 125
• most SSCs lack the resources to carry
out this existing remit, let alone move into
interventions that can help meet the demand
for skills.
The Wolf review of VE in the UK notes that the
SSCs’ role has been overtly focused on regulation
involving the design and approval of qualifications,
and in doing so failed to engage with employers.
On a more practical management level the SSCs
face difficulties in achieving their wide remit. As
Kraak (2013) argues, they are underfunded and a
government department would struggle to manage
such a large and diverse work load. Critics argue
also that the fundamental problem with the UK
system is the assumptions upon which the policy
responses are based. According to Keep and James
(2012) policy-makers fail to acknowledge that the
causes of low skill levels is a demand-side issue that
should be addressed by strategies that reshape
employers demand for higher level skills, changes
in working practices, and by improved utilisation of
skills in the workplace.
The emphasis on supply has been reinforced by
the new public management (NPM) methods
of governance in which emphasis was given to
compete between providers and the setting up
of indicators at the central government level.
The use of performance targets resulted in some
of the SSCs using the quickest and most cost-
effective strategies to help deliver skills regardless
of the quality or the actual needs within industry.
Under these national targets the SSCs have also
tended to focus on priorities at the national level
and neglected those that are likely to occur at the
regional level.
The model or approach used by the SSCs and their
response to the needs of their sectors could also
be questioned. Until recently, the SSCs operated
under similar principles and with similar core funding
levels. Obviously, such an approach neglects the
differences in skills demand and the levels of skill
utilisation or productivity levels that exist across
sectors. For instance, the UK is considered to
be a global player in the agriculture sector, the
processing of food and the manufacture of toys
and furniture. In other areas, such as industrial
manufacturing and mining the UK is experiencing a
severe decline. Clearly a one-size-fits-all strategy
for skills development across the different sectors
does not work.
Like most countries, the skills development system
in the UK is a state of flux and many contributors
have argued that the constant policy changes by
successive governments, and the lack of stability,
have compounded the problems raised above. The
continual shifts and changes prevent SSCs from
consolidating their functions and forging stable
relationships with other parts of the system, all
of which can only have a negative impact on the
development of quality skills.
The UK government recognises the constraints
identified above and the recent strategy, entitled
Investing in Skills for Sustainable Growth, is an
attempt to tackle them, especially in terms of
ensuring that employers drive the system, providing
targeted funds for learners and skills development
at higher levels, as well as removing some of the
bureaucracy.
The impact of the new skills framework is difficult
to predict and at present there are no systematic
evaluations. Nevertheless, some initial evidence
can suggest signs of improvements in the way in
which the skills development system and the SSCs
operate, including the following:
• The most significant impact has been
achieved by the UK’s EIF which has enabled
the SSCs to leverage around £53.9 million of
private investment into skills development.
• A recent evaluation of apprenticeships by
the Institute for Public Policy found that
out of the existing learners who have been
on apprenticeships, only 5 per cent are
unemployed, compared with 16 per cent for
those who have degrees.
• Another study produced by the Chartered
Institute for Personnel found that 72 per cent
of businesses reported a productivity rise as
result of employing apprentices.
• There is evidence that reforms are influencing
the way in which the SSCs interact with other
bodies in the skills arena. One of the most
successful reforms centres around working
with the NSA. This has enabled the SSCs
to facilitate inwards flows of private sector
investment into skills development and also
provide a means by which the private sector
can drive the process. The government
anticipates that the NSAs will become self-
sustaining over the next couple of years.
126 \ Mapping Sector Skills Development across the Commonwealth

There is no doubt that systemic problems continue

to exist in the development system and it will
take time before they are addressed effectively.
What is significant about the UK system is the
important role of research in informing the debates
about skills development, as well as influencing
subsequent reforms. The UK government has
supported extensive research in the field of skills
development and the nature of the discourse,
especially around the criticism of the system, would
appear to be influencing the reforms that are now
being implemented.
 Annex IV: Case Studies on How a Selection of Island Countries Approach Sector Skills Development \ 127
Annex IV: Case Studies on
How a Selection of Island
Countries Approach Sector
Skills Development
Dependent sector skills
development: the case of Industry
Lead Bodies and employer
engagement in Antigua and
Barbuda162
Introduction
Antigua and Barbuda is a small island economy
which is vulnerable to external shocks and climate
change. The most important sector of the
country’s economy is tourism and recently this
has experienced a downturn owing to the effects
of poor weather on the country’s infrastructure.
Unemployment levels are high and appear to be
growing among those under 24 years of age. The
country also experiences skill shortages and these
are being met by an inward flow of foreign workers.
Attempts have been made by donors to reform
the country’s TVET system, improve quality and
make it more responsive to the labour market. This
has involved the setting up of a National Training
Agency (NTA), along with ILBs. The underlying
objectives of these reforms were to make the
TVET system more demand-led through the
active involvement of employers. Despite the good
intentions, the reforms have not proved sustainable
over the medium to longer term. The example of
Antigua and Barbuda illustrates the problem of
establishing a system without providing continued
capacity or incentives for employers to engage in
the TVET system.
Background context and youth
unemployment
In order to mitigate the impact of external shocks,
Antigua and Barbuda has joined with eight
neighbouring countries to form the Organisation
of Eastern Caribbean States (OECS). The OECS
helps promote development and cooperation
through the creation of a single financial and
economic market within which goods, people and
capital move freely, monetary and fiscal policies
are harmonised and countries continue to adopt
a common approach to trade, health, education
and environment.163
Antigua and Barbuda has a service-based economy,
with tourism and government services representing
the key sources of employment and income.
According to the latest figures from Mundi, tourism
accounts for nearly 60 per cent of GDP and 40 per
cent of the country’s investment. Tourism is also
the country’s principle earner of foreign exchange,
although a series of hurricanes has damaged the
country’s infrastructure and reduced the number
of visitors.
In order to lessen the country’s vulnerability to
natural disasters, the government has supported
the diversification of the economy, especially in
relation to financial services. Unfortunately, recent
set-backs to this approach include the financial
sanctions imposed by the USA and UK as a result of
the loosening of its money-laundering controls.
Agriculture in Barbuda and Antigua has potential,
but only 18 per cent of the potential land is now in
cultivation. Over the past 30 years, agriculture’s
contribution to GDP has fallen from over 40 per
cent to 12 per cent. The decline in the sugar
industry left 60 per cent of the country’s 66,000
acres (270 km2) under government control.
Currently, agricultural production is mainly directed
to the domestic market; the sector is constrained
by the limited water supply and labour shortages
that reflect the pull of higher wages in tourism
and construction.
128 \ Mapping Sector Skills Development across the Commonwealth
Manufacturing comprises enclave-type assembly
for export with major products being bedding,
handicrafts and electronic components. Prospects
for economic growth in the medium term will
continue to depend on income growth in the
industrialised world, especially in the USA, which
accounts for about one-third of all tourist arrivals.
Unlike most other countries in this study there
is a limited number of data on the population or
labour market situation. The most recent figures
for 2001 showed that the size of the labour force
was around 30,000, with around 80 per cent
employed in the services sector. According to
these data, unemployment rates during that period
were 11 per cent, with levels much higher for male
(18.4 per cent) and female (21.6 per cent) youths.
There is a great deal of debate over the current
unemployment levels, with opponents of the
government arguing that levels for young people
are closer to 50 per cent.164
Evidence from consultancy reports recognises
that, despite rising unemployment levels, many
organisations are experiencing difficulties in
finding suitably qualified personnel, especially for
middle-level mangers working in the service sector
and craftsmen/technicians in the construction
and other sectors (STAVEP 2007). Anecdotal
evidence suggests that enterprises are attempting
to overcome their labour shortages through the
recruitment of foreign workers.165
An overview of the skills systems
There are two main structures involved in
supporting skills development in Antigua and
Barbuda, both of which report to the Ministry
of Education.166
The first of these structures is the Antigua Barbuda
International Institute of Technology (ABIIT). This
has its origins in the Free Zone Institute of Training
and Technology (FZITT), established in 1997 to
increase computer literacy of the island’s labour
force within a 5-year period.
The success of FZITT in supporting computer
literacy resulted in a decision by the Ministry of
Education to transform FZITT into the Antigua
and Barbuda International Institute of Technology
(ABIIT). In September 2008, the Institute began
offering online courses at the certificate and
diploma levels and is currently in the process of
developing an associate degree programme.
Subject areas include: banking and accounting,
business, ICT, networking graphics, engineering
design and architecture technician.
The second structure, and more relevant to the
sector-based approach, is the Antigua & Barbuda
Institute of Continuing Education (ABICE). This is a
multi-campus institute that caters for around 1,000
full- and part-time students studying the following:
cosmetology, electrical insulation and electronics,
English Language and Mathematics, computer
repair and Electronic Document Preparation and
Management (EDPM) and fashion. Most of the
learners at ABICE follow modular competence-
based curricula and successful candidates will
obtain a Caribbean Vocational Qualification (CVQs)
accredited by the Caribbean Examination Council.
There are no information systems to provide
details on the enrolment levels or on the numbers
graduating each year.
The development of a sector-
based approach
The sector-based approach in Antigua and Barbuda
provides an example of where attempts were
made to involve employers in the development
of standards, as well as the delivery of skills, in a
small island economy. The mechanism involved
the setting up of a number of ILBs in the priority
sectors of cosmetology, building and construction
and engineering. Each of these ILBs operated under
the Antigua and Barbuda National Training Agency
(ABNTA). A summary of this structure explains
the functions of the ILBs and what difficulties
were experienced.
The ABNTA was established under the 2008
National Training Agency Act to perform the
following functions:
• promote and coordinate technical and
vocational training;
• develop and maintain a national training policy
and advise on matters related to TVET;
• maintain, operate and regulate a system of
apprenticeship and traineeship;
• establish and maintain standards in TVET;
• develop and maintain a register of national
training facilities and resources, national
dictionary of occupations, including self-
employment, skill profiles for existing and
 Annex IV: Case Studies on How a Selection of Island Countries Approach Sector Skills Development \ 129
projected occupational opportunities,
learning and training materials such as training
manuals, learning packages etc.
• set up a new system of certification
(Antigua and Barbuda National Vocational
Qualifications) in a national qualifications
framework; and
• cooperate with counterparts at the Caribbean
Community level to set up a regional system
of certification (CVQs).
This is an ambitious remit for the ABNTA and
the ILBs, particularly the role that employers are
expected to play. The structure of the ABNTA
and their relationship to the ILBs are shown in
Figure A4.1 (p. 175). Under this arrangement, the
ILBs would work in close collaboration with ABICE
and other professional industry bodies to carry
out the functions outlined above. For instance,
the ILB for the construction industry would work
with the contractor’s authority to assess job
practices and safety procedures. Other Lead
Bodies would also work with their appropriate
professional organisation to carry out similar tasks.
A constitution was developed to guide the activities
of the ILBs, outlining their functions, the most
important of which include:
• facilitating strategic planning and
developments within their sector;
• in conjunction with the ABNTA, facilitating the
proposal of education and training standards
and qualifications;
• in conjunction with the National Statistics
Office, monitoring the changing demands for
skills;
• identifying what future occupational
competencies and skills will be required to
support anticipated changes in the sector;
• encouraging improved education-industry
links; and
• liaising with the ABNTA on their own
sector skill strategies and supporting
their implementation
Lessons on the approach used in Antigua
and Barbuda
No comprehensive evaluations have been
conducted on the sector-based approach in
Antigua and Barbuda. Therefore, it is possible only
to surmise on the possible benefits and limitations
of this approach.
The benefit of this approach is that, in theory, it is a
cost-effective approach for supporting employer
engagement within the TVET system in priority
sectors. Under the constitution developed, the
ILBs have to meet formally four times a year and
when there is a need to perform a specific task
related to their sector, such as signing off on the
development of a standard. When the industry
sector committee was initially established under
the STAVEP project,167 they operated with some
degree of success for two reasons. The first was
that a small financial incentive was provided by the
STAVEP project for employers to attend meetings
of the ILBs. The second reason was that champions
of industry were selected to head each of the ILBs.
These champions were prominent industrialists in
their sector and well known in the community. Once
the champions participated in the industry lead
body other employer representatives would follow.
On the down side, over the medium to longer term
the effectiveness and sustainability of the ILBs
could be questioned. On the effectiveness side
the lack of labour market intelligence in Antigua
and Barbuda made it difficult to determine what
type of skills should be supported. Similarly, the
lack of an over-arching skills strategy prevented
any alignment between government priorities and
those for skills development.
A second limitation of the approach, and perhaps
more important, was the lack of capacity within
the ABNTA or ABICE to support the industry lead
functions outlined in the 2008 Act or carry out
the activities specified in the constitution. These
functions and activities were very ambitious
and once the STAVEP project had finished the
country did not have the capacity to support
these structures, either in terms of resources or
know-how.168
There are a number of important lessons that
can be gained from the approach used in Antigua
and Barbuda to sector skills development. Many
of the original ideas about the establishment of
the ILBs and the ABNTA remain good in theory.
130 \ Mapping Sector Skills Development across the Commonwealth
However, without longer term continued support
they are unsustainable. Unless the government
officials have longer term support to improve their
capacity, they are unable to carry out their expected
functions. Moreover, without financial incentives (as
provided by the STAVEP project) employers are not
likely to become involved in the ILBs. Employers are
in the business of making money and unless there is
an appropriate incentive they are unlikely to become
involved in skills development. The former issue is
particularly the case when a TVET system is in the
process of being established or undergoing reform.
Linking industrial priorities to skills
development: the sector-based
approach of Jamaica
Introduction
Jamaica’s approach to skills development is driven
by the country’s economic and political priorities.
The country’s planning institute determines priority
sectors for development and the HEART NTA
ensures that synergies occur with the types of
skills developed. The HEART NTA has a number
of academies and also works with a number of
partners to deliver skills that are in line with the
government priority sectors. The benefit of the
approach is that Jamaica can respond to changes
in the demand for skills in a relatively short time, but
the success also depends on the selection of the
right sectors and the ability to generate good labour
market intelligence on anticipated future changes.
Setting the context and the levels of
youth unemployment
Developments within Jamaica are guided by the
country’s National Development Vision 2030, the
goal of which is to make Jamaica the place of choice
to live, work, raise a family and do business.169 This
is a strategically focused plan that has four national
goals mapped against 15 national outcomes,
which are pursued through a number of different
strategies. Within this framework the following
outputs are relevant to sector skill development:
• National Outcome 2: The creation of a
society of lifelong learners. This envisages
that Jamaica will produce graduates who are
able to contribute towards a knowledge-based
and innovative society. By 2030 the plan will
also ensure that 98 per cent of the population
aged 15 years or older will be fully literate.
• National Outcome 12: Internationally
competitive industry structures. By 2030
Jamaica will have developed competitive
industry structures that provide the
micro-economic conditions for improved
productivity, focusing on the following sectors:
agriculture, manufacturing, mining and
quarrying, construction, creative industries,
sport, ICT, sciences and tourism
Despite the existence of a comprehensive planning
framework the performance of the Jamaican
economy has been poor and growth rates have
been low for the past four decades, reflecting a
combination of high debts and vulnerability of the
economy to external shocks. According to the
World Bank, over the past 30 years the per capita
GDP has increased at a rate of 1 per cent per
year, making Jamaica one of the slowest growing
economies in the world (World Bank 2016).
Given the poor performance of the country’s
economy and the rising debt levels, the
government has been supported by a number of
IMF structural adjustment programmes. In 2013,
the IMF approved a 4-year extended facility to help
stabilise the economy.170
As a result of these measures the performance
of the economy has started to improve, with
agricultural output growing by around 18 per
cent over the 2013 to 2014 period. This reflects
recovery from a low agricultural base following
previous adverse weather conditions. Another
area of expansion is mining, with the output of
bauxite increasing by 3 per cent over the 2013
to 2014 period – driven by the global demand for
raw minerals.
The improvement in the performance of the
economy is starting to impact on unemployment,
with overall levels falling from 15.2 per cent at
the beginning of 2013 to 13.4 per cent in March
2014. However, the levels of youth unemployment
remains significantly high and according to the
Statistical Institute of Jamaica unemployment rates
among youth aged 14 to 24 years, are around 38.5
per cent in April 2013.171
The situation surrounding youth unemployment
could worsen as a result of the simple fact that over
50 per cent of the country’s population is under 24
years of age. The rise in youth unemployment levels
are not only a waste of a human resources, but also
 Annex IV: Case Studies on How a Selection of Island Countries Approach Sector Skills Development \ 131

a significant cause of crime. The levels of crime are The other main structure supporting skills
an acknowledged problem facing Jamaica and one development in Jamaica is the HEART NTA.
that discourages inwards investment. This was originally set up in 1982 to provide
demand-led solutions to the persistent problem
The concern over the nature and extent of youth
of underdevelopment. In 1982 the HEART Act
unemployment saw the government establish
established the board, along with a levy funding
a labour reform Commission in 2014 led by
mechanism. By 1984 the first Academy was
the cabinet. The Commission is investigating
opened and 150 students enrolled in business and
how to modernise the country’s labour market.
administration programmes. Shortly afterwards
Recommendations are expected to cover the
the Portmore Heart Academy was opened in
following areas of policy reform: education and
1985, the Garmex Academy was opened in 1986
training, productivity, technology and innovation,
and the Runaway Bay Heart Academy for resort
labour policies and legislation, social protection and
skills was opened in 1987. This was the start of a
industrial relations.172
sector-based approach in which these academies
An overview of the skills development supported skills development in a specific sector
(see following section or more details).
system
The mandate of the HEART NTA also started to
There are two structures for supporting TVET and
shift towards a coordination role and emphasis
skills development at the post-secondary level in
was given to more strategic areas of intervention.
Jamaica. The first is the University of Technology.
Since its inception in 1982 more than 613,000
The origins of the university can be traced back
young people have been trained under the HEART
to College of Arts, Science and Technology,
NTA and over 200,000 have been certified by
established by an Act of Parliament in 1959.
the National Council on Technical Vocational
Further revision of the Act took place in 1986 to
Education and Training (NCTVET). The HEART
make the university a degree-awarding institution,
NTA works with partners and employers to deliver
with the legal power to conduct its own affairs
skills in the following priority sectors: hospitality,
under a governing council and academic board.
wellness and beauty services, construction
Subsequently, in 1995 the institution was awarded
services, automotive services, creative arts,
university status and is now called the University of
agriculture and ecological sciences, and information
Technology, Jamaica.
and communication technology.
The syllabuses at the University of Technology are
With regard to employer engagement the HEART
modelled on the English polytechnic system, with
NTA has a workforce solutions department
emphasis on flexibility of approach, work-based
whose primary role is to provide industry partners
learning and professional linkages. Flexibility in
with value-added services including structured
academic programmes is reflected in the various
workforce improvement programmes and on-the-
modes of course delivery, which include full-time
job training and certification initiatives such as the
and part-time (day release and evening) and
School Leavers Training Opportunities Programme
cooperative work-based programmes. Several
(SLTOP), the Registered Apprenticeship
credit and non-credit courses are offered during
Programme (RAP), and Job Placements for
the summer session from mid-May to August.
employment, Work Experience, and Internship.
In addition, several programmes are franchised
Most of these operate in the priority sectors.174
through links with community colleges, and most
programmes are linked to national and international The development of the sector skill
professional organisations.
systems
The University of Technology has grown to
The sector-based approach to skills development
become a major regional institution with a student
in Jamaica differs from the formalised SSCs found
population of over 10,000. It now offers more than
in other countries. In Jamaica there is a deliberate
50 programmes at certificate, diploma and degree
attempt to link priority sectors for economic
levels. In response to the country’s rising youth
development, with those for skills development.
unemployment, the university has established a
model on entrepreneurship for students studying
for their Diploma.173
132 \ Mapping Sector Skills Development across the Commonwealth

Table A4.1. Enrolment levels for priority sectors identified by Vision 2030
% change
2030 sectors 2008/09 2009/10 2010/11 2011/12 2012/13 over 5
years
Agriculture 49 3 –24 –35 –14 –4.1
Construction –3 –31 25 3 –4 –2
Creative industries –17 2 39 18 45 –0.6
ICT 7 –4 –18 –32 –4 10.3
Manufacturing –11 –25 16 –15 18 –3.2
Mining and quarrying – – – – – –
Services 20 -26 9 –10 1 –1.3
Sports – – – –
Tourism 16 –26 -3 –7 3 –3.6
Other skills (non- –50 –29 28 6 –16 –12
vision 2030 sector)
Grand total –3 –23 4 –9 –3 –6.9

PIOJ is responsible for planning economic
development and promoting export growth. They
provide a broad macro framework for economic
development, including an identification of priority
sectors. PIOJ view skills development as an integral
part of economic development and this is reflected
in their activities
The priority sectors determined by PIOJ influence
the type of skills that are supported by the HEART
NTA. A number of divisions operate under the NTA
and support the coordination and delivery of skills,
the most significant of which are the following:
• The Executive Director’s Office, which
primarily oversees the work of all other
divisions. It is also engaged in strategic
developments, including managing the
organisation’s relations with external
organisations, as well as the provision of
information about the organisation’s activities
and performance.
• The Corporate Planning and Strategic
Development Division (CPSD). This has
responsibility for the continued strengthening
of the planning and evaluation capacity of the
organisation.
• The Information Systems and Technical
Services Division reports to the Corporate
Planning and Strategic Development Division
and the Executive Director’s Office. This
division is responsible for tracking trends in
the labour market and analysing how future
developments are likely to impact on skills in
priority sectors.
• The HEART Fund. This is a fund which
collects a 3 per cent levy on enterprises’
payrolls. These funds are used to support the
operational costs of the HEART Agency and
to deliver skills across the country in response
to identified needs.
• Operational programmes are managed by the
recently created workforce development and
employment division and this includes: the 29
institutions, Community Training Interventions
(which also consists of other special needs
programmes); and Workforce Solutions.
Schools training programmes include the
Career Advancement Programme (CAP) and
other public secondary high schools.
• NCTVET is responsible for the important
activities of quality control and increasing
access to certification and accreditation.
The vehicles for skills development primarily consist
of institutional-based training, community-based
training (CBT) and enterprise-based training (EBT).
The HEART NTA works with a number of partners
and their own academies to deliver this training. A
number of the HEART academies operate directly
under the HEART NTA in the following sectors:
tourism, construction and financial service. These
skill training academies provide skills programmes
 Annex IV: Case Studies on How a Selection of Island Countries Approach Sector Skills Development \ 133
for young people leaving the school system.
The second CBT approach occurs within NGOs
and church groups. The final mechanism, EBT, is
targeted at those who are already employed. Most
of these have a sector-based element in terms of
delivery and will depend upon decisions where the
HEART NTA decides that investments should be
made for skills development
There are a number of bodies within the HEART
NTA that contribute to decisions over skills
development and investments at the sector
level, including: the workforce development
and employment division (WDED); the National
Council on Technical Vocational Education and
Training (NCTVET); and the Corporate Planning
and Strategic Development Division. Under
this arrangement the Information Systems and
technical services is primarily responsible for
providing signals to the WDED and NCTVET about
changes in the labour market. This information is
used to expand or reduce enrolment levels by the
WDED. The NCTVET uses this information to make
changes or reforms to qualifications. Obviously,
such changes are normally performed in relation to
goals that are contained within the strategic plan.
Using this approach, HEART delivers skills
in seven out of the nine priority sectors
outlined in Vision 2050, including the following:
agriculture, construction, creative industries, ICT,
manufacturing, services and tourism. Reference to
some of the data from the LMIS can illustrate the
nature and extent of support for skills development
at the sector level.
Table A4.1 shows that around 80 per cent of
learners enrolled on HEART programmes were
participating in four of the priority sectors identified
by Vision 2030. The enrolment of learners in
these sectors include: services (30 per cent),
tourism (23 per cent), information technology and
communication (15 per cent), and construction
(13 per cent). Each of the priority sectors has
experienced a decline in enrolment levels over
the past 5 years. This can be attributed to the
overall decrease in enrolment targets over the
period, owing to longer programme duration based
on offering higher level skills and a reduction in
skill areas that were being oversupplied to the
labour market.
It should be pointed out that the private sector
played a key part in the delivery of this sector-
based training, reflecting HEART’s latest strategic
plan in which increased emphasis is given to the
role played by the private sector in delivering
skills development.
Data are also available from the HEART NTA on
the performance of individual sectors by other
indicators, including certification, completion and
graduation. The use of such data has enabled
HEART to move towards a performance-based
planning system at the sector level. This enables
stakeholders to understand progress towards
pre-defined targets (i.e. priority areas defined in
the 2030 vision), the cost of achieving targets
and whether changes are necessary (in response
to labour market demand). This has enabled
the HEART NTA to adjust the supply of skills at
the sector level in response to changes in the
labour market.
Under the 1982 HEART Act, the Minister of
Education is responsible for appointing the
chairman of the board and its members.175
According to the Act the number of board
members can range from a minimum of 7 people,
to a maximum of 20. The Act does not state the
representation of the board and fails to specify that
industry representatives or other stakeholders
must be involved. This is unusual for an NTA. The
functions of the board are spelt out in the Act and
cover the following:
• to ensure that training schemes and
employment opportunities are available for
young people;
• to ensure that Jamaica has an adequate
supply of trained people to meet future
skill requirements;
• to establish and maintain high standards in
skills development;
• to certify persons as instructors and accredit
providers offering skills training; and
• to administer and disburse the trust fund
according to defined guidelines.
The funding of skills development is through a 3 per
cent levy on monthly emoluments of enterprises,
provided that the contributions of emoluments
exceed J$14,444 per month. Under this
arrangement an employer who pays emoluments
to trainees for any month shall be entitled to relief
from that month equivalent to the amount up to
134 \ Mapping Sector Skills Development across the Commonwealth

Box A4.1.  The production of analytical information by

the HEART NTA
The Labour Market Research and Intelligence Department (LMRID) at the HEART NTA
regularly undertake labour market assessments. One of their recent studies focused on the
growth of the business processing and outsourcing industry (BPOI), and the impact on the
demand for skills. Working with the PIOJ the LMRID found that the BPOI sector is expected to
grow by around 25 per cent over the next 5 years. The LMRID investigated what type of skills
would be required to support this growth. This involved an employer-based survey, extensive
consultations and a number of workshops with employers in the sector. The results found
that an estimated 4,840 people will be required in the BPOI sector over the next 5 years.
The broad occupational areas where people will be required are: agents, IT support and team
leader/supervisor positions. The study also identified what specific competencies were
required by each of these occupational areas. The findings will also feed into the strategic
planning process and form the basis for future decisions around future funding for skills
development by HEART NTA.

the 3 per cent emolument. The tax is collected by
the Commissioner of Land Revenue and paid into
the HEART fund.
HEART has established a results-based planning
system and it is possible to see the amount
collected under the levy and how it is utilised,
including the performance of skill outcomes by
sector level. This transparency helps to ensure that
stakeholders and employers are aware of how the
funds are utilised.
Lessons to be gained from the sector-
based approach
The sector-based approach has a number of
lessons for developing countries in identifying skill
requirements and also on how to translate them
into the supply of skills at the sector level.
The first lesson, and perhaps the most important
one, is that the Jamaican government is able
to translate the country’s industrial and political
priorities into those for skills development. In a small
country that is vulnerable to the influence of global
markets, the government determines the priorities
that should be followed, as opposed to having them
determined by the market. However, the success
of such an approach depends on HEART’s ability
to generate intelligence on specific sectors and to
translate this into the actual supply of skills.
The current evidence would confirm that HEART is
able to collect excellent intelligence on the demand
for skills in specific sectors (see Box 1). The available
statistics in Table A3.1 would also suggest that
this intelligence is used to inform decisions about
investments for skills development.
The second benefit of the Jamaican sector-based
approach is the capacity to respond rapidly to
changes in the demand for skills. In most countries
the sector-based approach involves a number of
different layers, including a central government
agency, an SSC and separate providers. Under
such a system it takes a significant amount of
time between identifying a new skill and creating
the actual change in delivery. Under the HEART
NTA this process is streamlined and providers
can respond much faster to changes in the labour
market. In theory the LMRID can determine a
future need, the CPSD and the NCTVET can make
decisions about enrolment and composition of
programmes and expansion can occur through one
of the HEART academies.
A final benefit of the Jamaican sector system,
and one that relates more to management and
governance, is the fact that they have established
a performance-based system for planning and
implementation. Under this system it is possible
to analyse how much funding for skills has been
raised by enterprises in a specific sector; how many
people are trained in specific sectors; as well as
 Annex IV: Case Studies on How a Selection of Island Countries Approach Sector Skills Development \ 135
Figure A4.1: Diagram illustrating the relationship between the Industry Lead Bodies,
Figure A4.1: Diagram illustrating the relationship between the Industry Lead Bodies, different Government Ministries and the ABNTA
different Government Ministries and the ABNTA
Ministry of
Education
(TVET Policy)
Industry Lead Body Industry Lead Body
Tourism Engineering & Automotive
OCCUPATIONAL STANDARDS
 Development
 Review
 Revision
 Liaison with CANTA
the performance by sector. As outlined earlier this
can help improve transparency and ensure that
stakeholders have confidence in the system.
The strength of the Jamaican sector-led system is
also part of its limitation, especially as this relates
to the central role of the government in guiding this
process. There are many debates in development
circles about the most appropriate development
routes following the collapse of the Washington
consensus model. Many commentators point to
the importance of the developmental state model
in which the state actively supports industrial
development and attempts are made to link this to
the process of skills formation. This is happening in
Jamaica and the success of this approach depends
on the accuracy of the labour market intelligence
and picking the right sectors for development.
When the wrong sectors are selected there
could be a danger that people are trained for
jobs that do not exist, especially in a small island
economy in which there are limited employment
opportunities. This could be a major limitation of
such a sector-based approach that is driven by
government priorities.
Ministry of Labour
(Employment,
ABNTA
Labour Apprenticeships
Market Work Permits)
Information Ministry of Finance
(Economic
Secretariat to the Development)
ABNTA National Statistics
Office
Industry Lead Body Industry Lead Body
Building Construction Cosmetology
SECTOR SKILL PLANS LINKS WITH EDUCATIONAL INSTITUTIONS
 Determine skill needs  Curriculum Advisory Bodies
 Help identify future requirements  Student work placement
 Develop an operational plan to  Staff training
support implementation of plan,  Teaching and Learning Resources
175 | P a g e
A regional approach to sector skills
development: upskilling youth in
the Pacific
Introduction
The countries of the Pacific region are vulnerable to
external economic shocks and the negative impact
of climate change. This situation is made worse by
the fact that domestic economies are experiencing
difficulties in absorbing the growing number of
young people coming onto the labour market for
the first time. The TVET systems across the region
face a number of common challenges, ranging from
limited employer engagement and internal capacity,
to a lack of resources to support sustainability.
Within this case study the specific constraints
facing TVET systems in Fiji, Kiribati, Solomon Islands
and Vanuatu are documented. Subsequently, the
case study outlines an initiative176 that has been
designed to overcome of the former constraints
and to enable technical education providers to
offer internationally recognised qualifications that
are based on identified demand in priority sectors.
This innovative approach proposes to improve
employer engagement and provider commitment
to international standards across the Pacific
region. The programme is yet to be implemented,
but reference to the approach and its various
mechanisms can help us outline possible benefits.
136 \ Mapping Sector Skills Development across the Commonwealth
Setting the context and levels of youth
unemployment
The Commonwealth island states of the Pacific
region chosen for this study include Fiji, Kiribati,
Solomon Islands and Vanuatu. Together these
countries have a population of around 2.7 million
scattered across a number of islands. Each of these
island states has unique features and the largest in
the group is Fiji, with a population of 880,000 and
a GDP per capita of US$4,571.64. The smallest is
Kiribati with a population of 102,351 and a GDP per
capita of US$1,650.71. The population in Solomon
Islands is 561,231 and in Vanuatu is 252,763. The
growth rates vary significantly, with Fiji having a
growth rate of 2.5 per cent, compared with a rate
of 2.7 per cent for Kiribati, 3.5 per cent for Vanuatu
and 7.8 per cent for Solomon Islands.177 Care must
be taken when interpreting growth rates owing to
the small size of these islands and the impact that
an external influence can have on their economies.
Significant achievements have been made on
a number of social indicators. For instance, life
expectancy for women in Fiji is 74.9 years and
compares favourably with levels in developed
economies. Similarly, a reduction in infant mortality
has been achieved across the region and there are
now fewer cases of infectious diseases.
Unfortunately, indicators for economic
development have not been so positive. Most
of the Pacific island economies have a narrow
resource base and tend to be dependent on raw
material exports, remittances from overseas
employment and donor aid. This makes the
economies of these countries vulnerable to
sudden changes in external markets and or the
direction of aid policies. Outside the former
areas the other major opportunity can be found
in Tourism. According to the World Travel and
Tourism Council tourism contributes an estimated
35 per cent of Fiji’s GDP and accounts for F$2.51
billion in foreign exchange earnings.178 Tourism
also has an important role in the economies of the
other countries, but the longer term impact on
sustainable full-time jobs is not known.
The Pacific islands have also experienced difficulties
in tackling environmental challenges. The area
is prone to natural disasters, especially cyclones,
hurricanes and floods. Kiribati, for instance, is only
just above sea level, making the country vulnerable
to further climate changes. The World Bank found
that the countries most vulnerable to climate
change can be found in the Pacific and this includes
Fiji, Vanuatu, Solomon Islands and Kiribati.
The difficulties outlined above have been made
worse by the increasing numbers of young people
entering the labour market for the first time. The
extent of the problem can be seen by reference to
Vanuatu where only 1,500 jobs are being created
per year and around 4,000 new entrants are also
coming onto the labour market each year (AusAID
2013). Clearly, the country will face difficulties
in absorbing the rising levels of young people
coming onto the labour market. Lack of access to
TVET in these countries is also preventing young
people from obtaining the skills they need to enter
productive employment. For instance, in Kiribati
only 3.5 per cent (1,778) of males and 2.8 per
cent (1,463) of females had received a tertiary/
vocational education (Kiribati National Statistics
Office 2012).
Similar trends are apparent in Fiji where 21,000
new entrants join the labour market each year.
The domestic employment prospects for youth
in Fiji are limited. In 2004 around 9,000 vacancies
were created from emigration and natural
attrition in the labour force.179 Solomon Islands
face a similar situation where 60 per cent of the
population are under 25 years of age, but no reliable
figures exist on employment opportunities or
unemployment levels.180
A recent ILO policy brief (2013)181 found that
youth in the Pacific islands are twice as likely to
be unemployed as their adult counterparts. This
unemployment situation is likely to get worse by the
year 2020 since the youth population will increase
by 50 per cent. The ILO also comments that the
majority of young people in the Pacific are unable
to find formal sector work and most ‘work in the
informal economy, such as subsistence production
and other cash earning activities for their own family
or survival’.
Attempts are being made by governments across
the Pacific region to tackle youth unemployment. In
Solomon Islands, a Pacific leadership programme is
being implemented for the long-term unemployed
youth, involving mentoring, skills training and
work experience.182 In Kiribati the government
has developed a strategy for exporting skilled
workers, in an attempt to deal with the lack of
domestic employment opportunities. A number
of donors are actively supporting these initiatives:
 Annex IV: Case Studies on How a Selection of Island Countries Approach Sector Skills Development \ 137

the most significant donor is the Australian Skills development in Kiribati

government. The Commonwealth Secretariat has
Responsibility for TVET in Kiribati rests with
also implemented a capacity building initiative to
the Ministry of Labour and Human Resource
assist policy-makers to improve their approach for
Development. The ministry coordinates the
tackling youth unemployment.183
following technical institutions: the Marine Training
The future development of countries in the Pacific Centre (MTC), Kiribati Institute of Technology (KIT)
region will require further reforms to their skills and Fisheries Training Centre (FTC).184
development systems, labour markets and learning
The most relevant institution for skills development
how to work together more effectively. There will be
is KIT. There are two main schools within KIT, the
a need for a more collaborative approach to working
School of Applied Technology and the School
together, especially in the areas of education and
of Business. The School of Applied Technology
skills development. This will provide an opportunity
delivers certificate II-level programmes in
to pool resources, benefit from economies of scale
automotive servicing technology, construction,
and expertise in the region, upskill young people and
carpentry skills, electro-technology, drainage and
gain a qualification that has a market value. At the
roofing. The school also delivers water plumbing skill
same time these countries need to have improved
sets through a certificate III in plumbing. The School
access to the markets in Asia and the Pacific region,
of Business delivers a certificate II in business and
particularly around gaining access to overseas
certificate III programmes in information digital
employment opportunities. Some of the countries
media and technology, accounts administration
have access to and participate in initiatives such as
and accounting. They are also in the process of
the seasonal workers scheme, but more needs to
developing new programmes in areas such as
be done to enable young people from the Pacific
community development.
region to gain access to decent work.
The TVET system is in the state of reform and
An overview of the skills development few data are available on the performance of the
systems in the Pacific system. Nevertheless, according to an internal
review of the TVET system in 2014, a total of 368
TVET systems in each of the countries in the Pacific
students were enrolled in full-time programmes at
have followed a similar approach and face the same
KIT, with a retention rate of 83 per cent. The same
constraints. First, given their lack of funds most
review found that from a small sample survey, 32
countries have received significant donor support
per cent of graduates were employed, 29 per cent
for their TVET systems, some of which is ongoing.
were engaged in further studies and 39 per cent
Second, in most instances the TVET systems have
were unemployed (SCOPE International 2014).
limited employer engagements at all levels of the
system and correspondingly produce poor quality KIT has also started to deliver short courses for
graduates. Third, low levels of government funding industry. The most popular short courses are
prevent institutions from purchasing or maintaining in English, business, trade, IT, accounting and
technology of the type used by the private sector. sports administration. The overall gender ratio of
Fourth, significant difficulties are experienced with participants enrolled in short courses was 58 per
management and governance structures of TVET cent female, 42 per cent male.
systems, partly reflecting their lack of transparency
Recent developments within the country’s TVET
and stakeholder involvement. Together these
system are being driven by a partnership between
factors have hindered the development of demand-
the governments of Australia and Kiribati. In
led system across the Pacific region. A look at the
2009 an agreement was signed between the two
different country’s skill system will illustrate these
governments and one of the key areas of support
points, as well as indicating how governments are
was for workforce development. This support
attempting to tackle these constraints through
started in 2011 with the TVET strengthening
working with partners and donors.
programme, whose objectives were to:
138 \ Mapping Sector Skills Development across the Commonwealth
• build the capacity of the Ministry of Labour
and Human Resource Development through
the development of strategic plans and TVET
strategy; and
• support improved delivery and equity at
Kiribati Institute of Technology.
The longer term vision of the TVET strengthening
programme is to support the government of
Kiribati to develop an internationally respected
national TVET system which plays a valued role
in improving economic growth and increasing
employability of the people at home and abroad,
especially young men and women.
The first component of the TVET programme
centred on providing an overriding framework to
guide activities. Other related activities included
the development of labour mobility strategies and
plans for the MLHRD, as well as the development of
performance indicators and budget projections.
The second component of the programme
supported the strengthening of KIT and key
activities focused on the upgrading of physical
facilities and equipment. Support has also been
provided to improve management systems,
generate information, quality assurance processes
and also the training of instructors to international
standards at overseas institutions in Australia.
Attempts are being made to ensure that KIT has
established management and quality assurance
systems that are validated to international
standards. The thinking behind this approach is that
it will enable graduates to achieve internationally
recognised qualifications, enabling them to obtain
employment overseas.
The TVET strengthening programme has been
ongoing for 2 years and the evidence suggests
considerable progress have been made. At the
national level the strategic plan for the MHLHRD,
along with the TVET strategy; have been submitted
to the Cabinet for approval. Employer engagement
has been strengthened through building the
capacity of the Industry Advisory Committees
(ITACs) and Course Advisory Committees (CACs).
Currently, ITACs have been established for the
following sectors: health and community services,
tourism and hospitality, automotive and sea/land/
transport, and building. Together the ITACs provide
an opportunity for industry to have an input into
the TVET policy and to help identify skill needs.
The CACs have been established at KIT and are
supporting the development of programmes.
There is no doubt that the TVET support
programme is helping to build the capacity of the
country’s TVET system to deliver quality skills.
Given the lack of employment opportunities in
Kiribati, the longer term success of the TVET
system will depend on the ability of graduates to
obtain employment overseas, especially with the
large numbers of young people entering the labour
market. Key to the success of youth obtaining
employment opportunities overseas will be the
ability of KIT to deliver programmes that meet
international standards. Unfortunately, existing
evidence shows that unless continual technical
assistance is provided, KIT might not be able to
achieve these international standards owing to
capacity and resource constraints.
Fiji and skills development
The follow structures are involved in the delivery of
TVET in Fiji:
• school-based TVET under the Ministry
of Education
• The Fiji Institute of Technology
• non-formal skills TVET is coordinated by
the Training and Productivity Authority of Fiji
(TPAE)
Guidelines for the TVET system were developed
in the early 1980s and a policy statement was
released by the government in 2007. This covered
TVET delivered by schools, private institutions,
non-formal Technical Education Providers, relevant
Ministries and Tertiary institutions. The vision for
TVET is for a highly coordinated system linked to
employment, market needs and resource utilisation
(Fijian Government 2007).
Within the secondary education system there are
an estimated 3,000 students enrolled in TVET
courses. The majority are enrolled in private or non-
governmental schools. According to 2005 data,
enrolments within secondary TVET were highest for
commerce (46 per cent) followed by electrical and
electronics engineering (10 per cent).
The Fiji Institute of Technology (FIT) and the
Advanced Vocational Training (IHRD) are
responsible for community and non-formal training.
The FIT franchise model supports the delivery of
 Annex IV: Case Studies on How a Selection of Island Countries Approach Sector Skills Development \ 139
TVET in schools. The FIT is the largest technical
provider in Fiji and operates as an autonomous
institute under the MoE. The FIT is governed by
a council, with 80 per cent of the representatives
coming from the private sector. FIT delivers
programmes leading to certificate, diploma and
franchise certificate qualifications.
In addition to the FIT, there are two systems of trade
training, namely the MoE vocational training centres
and skill development supported by Training and
Productivity Authority of Fiji (TPAF). There are 62
vocational training centres, providing 1–2 years’
training in automotive engineering, carpentry,
catering, technology and office technology. The
TPEF trains unemployed school leavers and workers
in industry.
Funding for TVET comes from a number of different
sources. Around 3 per cent of MoE’s budget is
spent on TVET in schools. Around half of the
income for the FIT is obtained by charging students
fees, and the remainder comes from government.
The vocational training centres receive a grant from
the MoE, but communities support the costs of
buildings and parents pay tuition fees. TPAF fund
their activities from a 1 per cent levy on enterprises.
This levy is supposed to stimulate training within
enterprises, particularly through apprenticeships.
According to the ADB, the Fiji TVET system delivers
the following benefits (ERF 2014):
• the FIT is the lead provide of TVET in Fiji and
the Pacific Region;
• there are strong links with industry, especially
within the industry advisory committees
of TPAF – these advise on training and the
standards that need to apply for skill tests;
• vocational centres in high schools permit
many students to acquire skills training;
• ubiquitous work attachments are integral
parts of training programmes;
• well-organised apprenticeship training and
trades testing exists under TPAF; and
• sizeable non-public resource mobilisation
occurs for TVET through FIT and TPAF.
There are also criticisms of the TVET system.
Among the most significant is the failure to
develop a mechanism that can reconcile supply
and demand. There is little information available
about graduate achievement or the effectiveness
of existing training. Another drawback is the lack
of functioning systems for quality assurance of
vocational training centres, especially around
monitoring indicators. As a consequence, quality
varies across Technical Education Providers.
Solomon Islands and skills development
Responsibility for TVET rests with the Ministry of
Education and Human Resource Development.
In Solomon Islands there are two main types of
providers involved in TVET. The key provider is the
Solomon Islands College of Higher Education (SICHE)
which was established by an Act of Parliament in
1984. SICHE offers vocational and tertiary courses,
including nursing, teacher training, fisheries,
secretarial studies, forestry and agriculture. The
following schools exist: industrial development,
natural resources, finance and administration,
humanities, science and media, nursing and health
studies, education and marine and fisheries.
According to the most recent figures for SICHE,
around 1,200 students are enrolled in 42 different
programmes at Certificate, Advanced Certificate,
Diploma, Graduate Diploma and Advanced
Diploma levels. Subjects studied are numerous
and include plumbing, electrical trades, marine
engineering, building, tropical agriculture, tourism,
business studies, finance, journalism, nursing,
midwifery, teaching, maritime safety, fisheries
and seamanship.
In addition, church groups, NGOs and community-
based organisations provide TVET through
Community-Based Training Centres (CBTCs)
and Rural Training Centres (RTCs) in rural and
remote areas of Solomon Islands. The Solomon
Islands Association of Rural Training Centres
(SIARTC) represents 34 RTCs across the country
that provides non-formal skills development for
self-sufficiency and productivity. Solomon Islands
Government provides funding to meet teachers’
salaries for RTCs.
A number of significant reforms have occurred in
the field of TVET supported by a number of donors,
including the EC and the Australian government.
However, the sustainability of the TVET system has
been undermined by past instability. For instance,
the setting up of the Solomon Islands National
Qualification Framework could provide the basis
for the setting up of common national standards,
ensuring effective links are made to employer
140 \ Mapping Sector Skills Development across the Commonwealth
needs (World Bank 2011). According to a recent
review by DFAT (2013) the implementation of the
Solomon Islands National Qualification Framework
has stalled. The same review also identified
the following constraints facing the country’s
TVET system:
• There is a critical shortage of middle- and top-
level skills within the Ministry of Education and
Human Resources;
• The TVET system is fragmented and a
limited capacity exists to manage donor
programmes; and
• There are significant weaknesses in education
data collection, analysis and reporting185
Solomon Islands government is attempting to
address the constraints through the National
Education Action Plan for 2012 to 2015. Under
this plan by 2015 there will be improved access to
the TVET sector through an increased number
of registered providers with an expanded range
of subjects.
Vanuatu and skills development
At the higher technical education level, the
University of the South Pacific delivers education
and training. This university has a number of
different campuses. Various government ministries
are responsible for skills development, focusing
upon pre-service and in-service programmes.
The large post-secondary TVET institution
is the Vanuatu Institute of Technology where
approximately 800 students are employed. Within
the VIT the Australian government supported
the setting up of the Australia Pacific Technical
College. This is the major provider of skills
training. Successful students receive a certificate
level 3/4 or a Diploma that is a recognised
Australian qualification.
There are also 39 RTCs that operate in the
provinces and deliver programmes in the following
skill areas: carpentry/construction, mechanical
engineering, outboard motors, agriculture, small
business management and tourism. Most of the
programmes last for 2 years, and short courses are
in the process of being established, including for
part-time learners.
Attempts are being made to improve the
management and governance structures for skills
development. Initially this has involved the setting
up of Provincial Training Boards (PTCs) in a selection
of provinces. This has been accompanied by the
setting up of an employment and training fund and
business development fund. The PTCs will play a
key part in coordinating the RTCs and providing
improved support services, including access to a
small amount of funds.
Most of the developments outlined above have
been supported by the Australian government.
Initially through the Phase I of the Vanuatu TVET
sector strengthening programme (2005 until 2008);
phase II (2008 until 2013); and currently a new
phase is starting implementation and the Australian
government has provided around A$13 million.
Despite the continuing reforms in the field of skills
development evidence shows that employers
continue to face recruitment difficulties and
cannot find young people with the right type of
qualifications or skills (AusAID 2012).
The development of the sector
skills system
The example of the Pacific islands provides an
innovative approach to sector skills development,
called Skilling Youth in the Pacific, which is in only the
planning stages. Under this programme technical
education providers in the region186 will work
together with professional bodies and governments
in the region, with the support of the Australian
government, to deliver internationally validated
programmes that have an identified demand within
a specific sector.
Around A$84.5 million will be provided to support
the implementation of the SYP programme over
a 10-year period by the Australian government.
Currently, the programme has yet to start
implementation, but a review of the proposed
processes and mechanisms illustrates how
a regionally based approach to sector skills
development can help governments in the Pacific
region to tackle the challenges identified in previous
sections and facilitate youth employment.
The overall goal of SYP is to foster financially
sustainable delivery of internationally recognised
tertiary qualifications by Pacific Technical Education
Providers. The programme will help tackle many of
the constraints faced by the Technical Education
Providers in the region and enable them to
deliver internationally recognised qualifications.
All governments in the Pacific region, including
 Annex IV: Case Studies on How a Selection of Island Countries Approach Sector Skills Development \ 141

those in Fiji, Kiribati, Solomon Islands and Vanuatu and maritime. Other sectors were identified for a
have identified the need to develop strategies second phase of the programme, namely the health
for tackling rising levels of youth unemployment, and education sectors.
especially through skills development. Despite
As outlined above the SYP will adopt a regionally
these commitments, financial constraints, the
based approach and will involve working with
impact of external shocks, lack of internal capacity
governments, and technical education providers
and competing demands for funds, have limited
in different countries, as well as professional
domestic investments in skills development
organisations and employers in the targeted
and prevented most countries from producing
sectors. The programme assumes that a regionally
graduates that are employable. This situation is
based approach can enhance the quality of
compounded by the fact that qualifications are
graduates and link them to demand that could not
not linked to employer demand and the high costs
be undertaken at the national level.
of completing post-secondary programmes
act as a disincentive for learners to enrol on The involvement of employers and stakeholders
future programmes. will occur through a RAB that will be established
in Fiji. The board will provide strategic advice to
The key strategy underpinning the SYP programme
the SYP programme and contain representatives
is how to facilitate coherence in the skills system
from governments in participating countries,
by ‘providing the information, coordination and
professional bodies, the Australian government
relationship structures, to better match skills supply
and Technical Education Providers. Among the
to labour market demand at the sector’ (ERF 2014).
professional bodies confirmed to participate in
Attention to each of the former issues will explain
the RAB are the Australian Institute of Building, the
how the programmes work.
South Pacific Engineers Association, the Institute
At the heart of the SYP programme is the need of professional Engineers New Zealand and
to provide data on labour markets, including on relevant licensing authorities. Together the various
sectors and occupations in which youth are most professional bodies will provide support for the
likely to find employment. Innovative labour market accreditation of programmes to be financed under
analysis was undertaken within each of the Pacific the SYP programme.
Island countries involved in the SYP programme.
Beneath the RAB will be a contractor who will
Three main types of data analysis occurred. The
establish a project management unit (PMU)
first investigated the number of foreign workers
structure to manage the implementation of the SYP
in skill-based occupations, helping to provide
programme over a 10-year period. The key to the
a signal on demand for low end occupations,
successful implementation of the programme will
especially related to the sectors of manufacturing,
be Quality Improvement Plans and a competitive
construction and maritime. Second, analysis was
funding scheme. Under the programme, technical
undertaken of occupational data to illustrate
education providers will be asked to submit
the share of national and foreigner workers with
a proposal for funding of specific number of
post-school-level qualifications. Using these data
programmes. The submission of the proposal will
enabled the study to identify the gaps between
involve a number of providers in different countries,
national and foreign workers, indicating areas where
professional bodies and employer associations.
the qualifications of nationals need to be upgraded.
The funding of the proposal will be competitive
The third approach recognised that, owing to the
and be dependent on the submission of a Quality
small size of the domestic market, there was a need
Improvement Plan (QIP) demonstrating that
to look at overseas employment opportunities.
certain standards have been achieved, including
Therefore, the analysis investigated the current and
the following187:
future skill needs for the Australia and New Zealand
labour market. • Gaps have been identified in institutional
capacity to deliver the proposed course and
Using the three different types of analysis, along
rectification strategies such as professional
with extensive consultations with employers,
development, course development with
stakeholders and government representatives
industry, resource and facility upgrades will
the following sectors were identified as sector
be implemented.
priorities for the SYP: engineering, construction
142 \ Mapping Sector Skills Development across the Commonwealth

• Willingness to work with industry and
professional associations to independently
verify current status, develop and have
courses accredited and validate the quality of
graduate outcomes.
• Application of value-for-money principles
and ways in which savings and efficiencies
might be achieved in the cost of course
delivery, such as partnerships with other
TEIs, distributed learning technologies and
other innovations.
• The extent to which the TEI is prepared (or
able) to self-fund the implementation of
its QIP.
• Evidence of proposed strategies to attract
and support to complete the participation
by women, people with a disability and those
living in remote areas.
• Strategies to implement improved student
record management including data collection,
analysis and evaluative reporting including
postgraduate outcomes derived from tracer
studies and other research.
The proposed funding provided by the SYP
programme will be based on the unit cost for
training each student plus an additional incentive
of 50 per cent. As outlined above the funds will
not support the costs associated with the QIP.
Providers will have to be committed to achieving
international standards before the delivery of funds
can be released under the SYP. Once the proposal
has been approved, and commitments obtained
to the QIP, then funds can be released on a draw-
down basis. When providers do not have funds for
quality improvements they can be supported by
upfront costs from the proposal (on the assumption
that they will be able to raise funds at a later stage
through the charging of fees and other revenue
raising activities)
qualifications. This approach attempts to tackle
constraints facing TVET systems in the Pacific
region and to overcome the limitations of past
donor approaches to TVET. The SYP programme
will overcome the limitations of previous
approaches by providing incentives to technical
education providers to upgrade themselves to
international standards. Under the SYP, funds are
used as an incentive to influence the behaviour
of technical education providers, especially in
terms of working with employers and also meeting
international standards.
The regional approach proposed by the SYP
programme will offer the benefits of economy of
scale, enabling positive outcomes that could not be
achieved by each of the individual countries working
by themselves. This approach is also providing
a means of engaging with professional bodies
and employer representatives from a number
of countries, including those from Australia and
New Zealand.
Another benefit of the SYP programme is the
focus on meeting international standards,
including the ways technical education providers
operate, particularly in the delivery of skills. In
most developing countries TVET is regarded
as second best to higher education owing
to the perceived low value of qualifications.
Hopefully, the SYP programme will address the
former issues by facilitating a commitment to
international standards.
Finally, the SYP programme recognises that it is not
sufficient to focus only on domestic demand as
the means of tackling youth unemployment. There
is a need to tackle the employment opportunities
that are available overseas. In the future many
developing countries will have to focus their efforts
on training youth for export to work in targeted
high-demand sectors.

Lessons of the sector-based approach

At the time of writing this report it is difficult to
comment on the impact of the SYP programme, as
implementation has yet to start. The only lessons
that can be gained relate to the proposed approach
and the planning process.
There is no doubt that this is a very innovative
approach to linking demand at the sector level
to development of internationally recognised

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148 \ Mapping Sector Skills Development across the Commonwealth

Endnotes
1. Alastair Machin played a key part in undertaking the case study research. Thanks
are also due to Mr Peter Short from the Centre for Employment Initiatives
who played a key part in providing comments on and in undertaking the quality
assurance of the final document.
2. The study recognises that there are debates over the precise meaning of
these terms, especially in different country contexts. The current approach
provides a workable definition for the current study and one that differentiates
structures and processes. For more specific details on debates surrounding
the terms of skills development and TVET see www.unevoc.unesco.org/
tvetipedia.0.html?&tx_drwiki_pi1%5Bkeyword%5D=TVET.
3. The term ‘employer engagement’ enabled the study to collect data on the
types partnership that the SSCs formed with the private sector, enabling the
subsequent analysis to understand the complexities surrounding PPPs.
4. For details of SKOPE see www.education.ox.ac.uk/research/skope/.
5. UNICEF-WBI course on Strategic Choices for Education Reform, Washington
DC, USA, 14-25 July 2008.
CASE BRIEF Opposition The Case against TVET Programme
6. See www.mckinsey.com/features/education_to_employment
7. See www.ilo.org/global/research/global-reports/global-employment%20
trends/youth/2012/WCMS_180976/lang--en/index.htm
8. See http://thecommonwealth.org/media/news/ninth-commonwealth-youth-
forum-declaration-young-people-commonwealth
9. See https://g20.org/wp-content/uploads/2014/12/g20_employment_plan_
south_africa.pdf
10. Information on the hollowing out of the labour market thesis can be found on
the following webpages: www.theworkfoundation.com/DownloadPublication/
Report/292_hourglass_escalator120711%20%282%29%20%283%29.pdf.
11. See www.theguardian.com/education/2011/jul/19/300-schools-built-private-
finance-scheme
12. One of the most critical assessment of the PFIs can be found in Galloway
(2014).
13. For more details on the ILOs approach to PPPs see www.ilo.org/pardev/public-
private-partnerships/lang--en/index.htm.
14. See www.adb.org/documents/public-private-partnership-operational-
plan-2012-2020
15. India is one of the case studies covered in this research. For full details of this
case study see Annex I.
16. An example of an OECD guide for establishing a PPP can be found on the
following webpages: www.oecd.org/countries/kazakhstan/Enhancing%20
Skills%20though%20Public-Private%20Partnerships%20in%20
Kazakhstan%27s%20Information%20Technology%20Sector.pdf
 Endnotes \ 149

17. See https://en.unesco.org/post2015/sites/post2015/files/

UNESCOPrinciplesonEducationforDevelopmentBeyond2015.pdf
18. See www.phrma.org/sites/default/files/pdf/stem-education-report-2014.pdf
19. See www.cbi.org.uk/media-centre/press-releases/2013/06/businesses-fear-
skills-shortage-could-hold-back-growth/
20. Definition taken from the following webpage: www.investopedia.com/terms/s/
sector.asp
21. For details of these classifications see http://laborsta.ilo.org/applv8/data/isic3e.
html.
22. (http://ec.europa.eu/eurostat/ramon
23. See www.ohio.edu/chastain/dh/guilds.htm
24. For more details see http://ec.europa.eu/social/main.jsp?catId=784
25. The full country case studies can be found in the Annexes.
26. Information on learnership can be found on the following webpages: www.saqa.
org.za/docs/webcontent/2014/web0331a.html.
27. See www.ilo.org/wcmsp5/groups/public/...asia/...ro-bangkok/...do-dhaka/
documents/publications/ wcms/_226502.pdf
28. See www.nscsindia.org/ExploreSectorSkillsCouncils.aspx
29. NSDC Funding Guidelines available from their website.
30. NSDC Funding Guidelines available from their website.
31. BTEB: Technical and Vocational Training in Bangladesh: Skills Vision 2016.
32. See www.nscsindia.org
33. Interview with NSDC CEO Dilip Chenoy; see www.skillingIndia.com.
34. See www.ukces.org.uk/assets/bispartners/ukces/docs/ssc/ssc-annual-
performance-report-2009-10.pdf
35. Evaluations of the projects and the role played by the SSCs can be found on
the following webpages: www.gov.uk/government/publications/employer-
investment-fund-phase-1-qualitative-evaluation
36. To access a copy of the Skills for Australians document, see http://apo.org.au/
research/skills-all-australians
37. See https://lra.le.ac.uk/bitstream/2381/530/1/SungRaddonAshtonSectoralSkil
ls%5b2%5d.pdf
38. See https://lra.le.ac.uk/bitstream/2381/530/1/SungRaddonAshtonSectoralSkil
ls%5b2%5d.pdf
39. Evidence for the performance of the ABNTA and the ILBs can be found on a
series of exchanges between the ILO and the government in Antigua /Barbuda;
see www.ilo.org/dyn/normlex/en/f?p=1000:13101:0::NO:13101:P13101_
COMMENT_ID:3137062.
40. The board means the board of directors of the trust.
41. See the relevant ILO webpages for possible ways of analysing labour market
data: www.ilo.org/empelm/lang--en/index.htm.
150 \ Mapping Sector Skills Development across the Commonwealth

42. The figure in 2012 indicates that the GDP per capita in Botswana is US$16,300.
The only countries in Sub-Saharan Africa with higher GDPs are Equatorial
Guinea (US$19,300) and the Seychelles (US$24,700)
43. See http://afriperspectives.com/2014/03/21/entrepreneurship-training-
botswana/
44. See www.bota.org.bw/sites/default/files/THE%20NATIONAL%20
INTERNSHIP%20PROGRAMME%20IN%20BOTSWANA.pdf
45. See www.unevoc.unesco.org/go.php?q=World+TVET+Database&ct=BWA
46. Thanks for Mr John Owigar for his comments and advice on this case study. Mr
Owigar is one of the leading TVET experts in Kenya and has years of experience
working in the system.
47. See www.worldbank.org/en/country/kenya/overview
48. The Gini coefficient measures the inequality among values of a frequency
distribution (for example levels of education). A Gini coefficient of 0 expresses
perfect equality, where all values are the same (for example, where everyone has
achieved primary or secondary education).
49. See www.itweb.co.za/index.php?option=com_content&view=article&id=49958
50. See www.scienceandtechnology.go.ke/AboutUs.html
51. The precursor of the NITC was the Directorate for Industrial Training.
52. This applies to hotels that have a turnover of KSh250 per client per night and
restaurants with a turnover of more than KSh3 million.
53. Specific details on the management and governance structure can be found
on the following webpages: www.nita.go.ke/index.php/2014-06-16-07-28-49/
board-of-directors.
54. Information on the conditions required for claiming back the levy can be found
on the following webpages: www.nita.go.ke/.
55. Thanks to Mr Martin Johnson, Senior DFID Adviser, for comments and advice on
this case study.
56. A reference is made to this same problem in the Ministry of Education technical
education strategy of 2001 (see reference 21, below) and also confirmed by a
representative from AIMO in a private interview in November 2014 (see ref 9).
57. The information was obtained from a private interview with a representative
of AIMO.
58. Ministry of Education (Directorate of Technical Education) produces a matrix
table mapping all courses by schools. The map actually lists 131 schools and
more than 80 courses, although many of the schools are non-government
owned but offer the government-approved curricula, and many of the listed
subjects are taught in only a few of these schools.
59. The World Bank (PIREP project) and Italian Cooperation (PRETEP project) have
financed most of the school rehabilitation, whereas funding for curriculum
development has come from PIREP, PRETEP and also a GIZ project (CEREC).
60. A project financed by Portuguese Aid over the period 2002–09.
 Endnotes \ 151

61. World Bank: Project Appraisal Document for TVET Project (PIREP) (2006)
and the PIREP project annual report (2008). PIREP issued guidelines for the
establishment of four STACs to guide the curriculum development process.
62. The information was obtained from a private interview with the Director of
INEFP Director.
63. The information was obtained in separate private interviews with
representatives from AIME and OTM, Maputo.
64. Anecdotal information obtained from some private sector and donor agency
representatives in Maputo who prefer to remain anonymous. The PIREP
Secretariat is nominally responsible for maintaining the Minutes of COREP
Board meetings but it is reluctant to provide public access to them to confirm
this information.
65. The information was obtained from a private interview with a representative of
the ILO in Maputo in November 2014.
66. Much of this material was derived from Powell and Vijay (2014).
67. For more information on youth unemployment levels see http://data.
worldbank.org/indicator/SL.UEM.1524.MA.ZS; and www.theguardian.com/
global-development-professionals-network/2014/jul/11/africa-youth-
unemployment-population-growth
68. A recent discussion on the impact of the youth bulge on youth unemployment
can be found in Lam (2014).
69. An excellent discussion of the various supply-side and demand-side imitative
for tackling for tackling youth unemployment in South Africa can be found
on the following webpages: www.brookings.edu/blogs/africa-in-focus/
posts/2014/08/15-youth-unemployment-south-africa-oosthuizen
70. Discussions on NEETs can be found at www.engineeringnews.co.za/article/
neets-crisis-emerging-as-sas-most-urgent-challenge-2013-06-25
71. For information about the sectors and occupations covered by the SETAs see
www.vocational.co.za/
72. Information about skills legislation can be found on the Department of Labour’s
webpages: www.labour.gov.za/DOL/legislation/acts/skills-development/skills-
development-act-and-amendments
73. A learnership is a work-based education and training programme that is linked to
a qualification registered on the National Qualifications Framework (NQF) with
the South African Qualifications Authority (SAQA).
74. Highlights on the recent White Paper for post schooling can be found on the
South Africa portal for skills development; see www.skillsportal.co.za/page/
skills-development/assessment-college/1640030-Highlights-from-the-
White-Paper#.VGrWU_mUfA9
75. Information on learnership can be found on the following webpages: www.saqa.
org.za/docs/webcontent/2014/web0331a.html
76. PIVOTAL is an acronym for professional, vocational, technical and academic
learning programmes which provide full occupationally directed qualifications.
152 \ Mapping Sector Skills Development across the Commonwealth

77. For more information on these scarce skills list see the following webpages:
www.saleader.co.za/human-capital/human-capital-menu-categories/careers/
item/695-where-are-south-africa-s-biggest-employment-shortages; www.
adcorp.co.za/NEws/Pages/SA%E2%80%99seconomydesperatelyneedshigh-
skilledworkers.aspx; and www.dhet.gov.za/LinkClick.aspx?fileticket=akZ2tL6YU
7k=&tabid=346&mid=1415.
78. The continued existence of skills shortages could relate to other factors such
as institutional provision and the important issue of quality of courses. Another
contributory factor is the funding for skills development and how this influences
the behaviour of providers and learners.
79. See http://censusindia.gov.in/2011-prov-results/indiaatglance.html
80. UK Trade and Investment (2014): Overview of skills market in India
81. CIA World Factbook; available at www.cia.gov/library/publications/the-world-
factbook/geos/in.html
82. See http://data.worldbank.org/indicator/SL.TLF.TOTL
83. See http://data.worldbank.org/indicator/SL.TLF.TOTL.IN
84. Interview with Dilip Chenoy reported in Skilling India (24 December 2012); see
www.skillingindia.com/thought-tree/interviews/sector-skill-councils
85. A full summary is provided in Government of India (2007).
86. See www.nsdcindia.org/guidelines
87. See www.nsdcindia.org/guidelines
88. See www.nscsindia.org/ExploreSectorSkills Councils.aspx
89. See www.nscsindia.org
90. See www.nscsindia.org/Explore SectorSkillsCouncils.aspx
91. See www.nscsindia.org/Explore SectorSkillsCouncils.aspx
92. Interview with NSDC CEO Dilip Chenoy; see www.skillingIndia.com
93. See www.nscsindia.org
94. See www.nscsindia.org
95. See www.nscsindia.org
96. See www.nscsindia.org
97. NSDC Funding Guidelines are available from their website.
98. Business Standard News, 13 February 2012
99. Business Standard News, 2 January 2012
100. See www.india-euskills.com/
101. See www.skilldevelopment.gov.in/
102. See www.ey.com/Publication/vwLUAssets/EY-Government-
and-Public-Sector-Reaping-Indias-demographic-dividend/$FILE/
EY-Reaping-Indias-promised-demographic-dividend-industry-in-driving-seat.pdf
103. See www.nsdcindia.org/nsdcreports
 Endnotes \ 153

104. See www.nsdcindia.org/nsdcreports

105. Table 1.1. FY before a calendar year denotes the year in which the fiscal year
ends (e.g. FY 2008 ends on 30 June 2008). The fiscal year of the government of
Bangladesh ends on 30 June.
106. See www.bbs.gov.bd. The ADB estimates the informal sector employment to be
88.5% of the labour market.
107. Author’s calculation based on Population and Housing Census, 2011.
108. Author’s calculation based on Population and Housing Census, 2011.
109. Author’s calculation based on Population and Housing Census, 2011.
110. Learning for Job Opportunities: An assessment of the Vocational Education
and Training in Bangladesh, June 2007.
111. The World Bank cites data from a 2002–2003 Labour Force Survey, which
estimates that only 53,000 men and 5,000 women have technical/
vocational qualifications.
112. See www.bteb.gov.bd
113. See ww.bteb.gov.bd
114. See www.ucepbd.org
115. The World Bank cites data from a 2002–2003 Labour Force Survey,
which estimates that only 53,000 men and 5,000 women have technical/
vocational qualifications.
116. See www.nsdc.gov.bd
117. Interview with Planning Director, DTE, 20 January 2015.
118. NSDC 2008 Action Plan
119. Interview with NSDC CEO on 18 January 2015
120. The information is anecdotal. The ISCs mentioned do not have their
own websites.
121. Interview with a STEP manager.
122. Interview with Planning Director, DTE.
123. See www.oecd.org/employment/emp/Country%20Notes-AUSTRALIA.pdf
124. The latest list of skills in demand can be seen at www.workingin-australia.com/
news/41547/latest-skills-in-demand-in-australia
125. See Communiqué for the COAG Industry and Skills Council Meeting, 3 April
2014.
126. To access a copy of the Skills for Australian Document see http://apo.org.au/
research/skills-all-australians
127. For more information see www.australianapprenticeships.gov.au/australian-
apprentices
128. https://www.oecd.org/australia/42243354.pdf
129. For more details on these structures see www.unevoc.unesco.org/go.php?q=W
orld+TVET+Database&ct=AUS.
154 \ Mapping Sector Skills Development across the Commonwealth

130. For more data on the workforce development plan for Western Australia see
dtwd.wa.gov.au.
131. Canada statistical yearbook 2013. See infostats@statcan.gc.ca
132. See www.oecd.org/dataoecd/52/1/37392733.pdf
133. See www.hrsdc.gc.ca
134. See www.cicic.ca/510/fact-sheet-no-5.canada
135. See www.cicic.ca/510/fact-sheet-no-5.canada
136. See www.cicic.ca/394/an-overview-of-postsecondary-education.canada
137. See www.cicic.ca/567/quality-assurance.canada
138. See https://lra.le.ac.uk/bitstream/2381/530/1/SungRaddonAshtonSectoralSkil
ls%5b2%5d.pdf
139. See https://lra.le.ac.uk/bitstream/2381/530/1/SungRaddonAshtonSectoralSkil
ls%5b2%5d.pdf
140. See www.unevoc.unesco.org/e-forum/Setting-the-Standard-EN.pdf
141. For more information, see www.councils.org/gateway
142. See www.councils.org/our-priorities/occupational-standards-and-certification/
143. See https://lra.le.ac.uk/bitstream/2381/530/1/SungRaddonAshtonSectoralSkil
ls%5b2%5d.pdf
144. See www.hrsdc.gc.ca/eng/workplaceskills/sector_councils/faq.shtml
145. This 15-page case study provides an in-depth description about the
background, the implementation and the impacts of this LMIS, available at:
www.e-library.ca; see note 7, p. 4.
146. See www.conferenceboard.ca/Libraries/EDUC_PUBLIC/E-IssueStatement3.
sflb
147. See https://lra.le.ac.uk/bitstream/2381/530/1/SungRaddonAshtonSectoralSkil
ls%5b2%5d.pdf
148. See https://lra.le.ac.uk/bitstream/2381/530/1/SungRaddonAshtonSectoralSkil
ls%5b2%5d.pdf
149. See www.conferenceboard.ca/Libraries/EDUC_PUBLIC/E-IssueStatement3
150. Exact information on the country’s unemployment levels can be found at www.
parliament.uk/business/publications/research/briefing-papers/SN05871/
youth-unemployment-statistics
151. For more details on this survey see www.gov.uk/government/organisations/
uk-commission-for-employment-and-skills.
152. A succession of governments in the UK has lost control over the borders and
this has placed an enormous strain on public services. For more on this debate
see www.migrationwatchuk.org/what-is-the-problem.
153. Note that in this study emphasis is on the skills development system in England
and Wales. This has been termed the United Kingdom and does not include the
strategies and approaches followed in Scotland.
154. For data on enrolment levels in higher education see www.hesa.ac.uk/stats
 Endnotes \ 155

155. See www.bbc.co.uk/skillswise/tutors/learning-environments/tutors-article-

colleges
156. Statistics on the apprenticeship can be found at www.parliament.uk/business/
publications/research/briefing-papers/SN06113/apprenticeship-statistics
157. The full evaluation of the commission can be found on the following webpages:
www.llakes.org/
158. A full copy of this evaluation can be found on the following webpages: www.gov.
uk/government/uploads/system/uploads/attachment_data/file/32298/11-
1069-evaluation-national-skills-academies.pdf
159. See www.ukces.org.uk/assets/bispartners/ukces/docs/ssc/ssc-annual-
performance-report-2009-10.pdf
160. Evaluations of the projects and the role of the SSCs can be found on the
following webpages: https://www.gov.uk/government/publications/employer-
investment-fund-phase-1-qualitative-evaluation
161. For a copy of the Wolf report see www.gov.uk/government/uploads/system/
uploads/attachment_data/file/180504/DFE-00031-2011.pdf
162. Thanks to Mr Wolfgang Albrecht who provided feed-back on this case study.
Mr Albrecht was team leader on the Strengthening Technical and Vocational
Education Project in Antigua and Barbuda
163. See more at www.oecs.org/about-the-oecs/who-we-are/about-
oecs#sthash.4lsmUxnS.dpuf
164. See http://antiguaobserver.com/unemployment-rate-remains-unclear/
165. See http://falkiaviation.com/keeplearning/learningsatefy/
item/459-letter-hiring-foreign-workers-in-antigua/459-letter-hiring-foreign-
workers-in-antigua
166. See www.education.gov.ag/index.php#
167. This stands for Strengthening Technical and Vocational Education Project and it
was supported under the Ninth European Development Fund.
168. Evidence on the performance of the ABNTA and the ILBs can be found on a
series of exchanges between the ILO and the government in Antigua /Barbuda.
See www.ilo.org/dyn/normlex/en/f?p=1000:13101:0::NO:13101:P13101_
COMMENT_ID:3137062.
169. A full copy of the vision 2030 plan can be found at www.vision2030.gov.jm/
170. More specific details on the performance of the Jamaican economy can be
found on the World Bank webpages, available at www.vision2030.gov.jm/
171. See www.youthjamaica.com/content/ins-and-outs-youth-unemployment
172. See http://jamaica-gleaner.com/gleaner/20141026/lead/lead41.html
173. Details about the University of Technology can be found at www.utech.edu.jm/
index.html
174. Further information about how HEART NTA engaged with employers can be
found at www.heart-nta.org/index.php/employers/workforce-solutions
175. The board means the board of directors of the trust.
156 \ Mapping Sector Skills Development across the Commonwealth

176. This initiative is called SYP. Specific details are found in this case study.
177. Economic data on these countries can be found at https://www.gfmag.com/
global-data/country-data/fiji-gdp-country-report
178. See http://dtxtq4w60xqpw.cloudfront.net/sites/all/files/pdf/fiji_tourism_
performance_2012_report_0.pdf
179. A strategy to support post-secondary education and skills development in the
Pacific and PNG: Country Overview Fiji, 2014.
180. See www.worldbank.org/en/news/feature/2012/08/13/solomon-islands-
giving-a-second-chance-to-honiara-young-unemployed-population
181. file:///C:/Users/SAMSUNG/Downloads/Youth%20Employment%20Policy%20
Brief_Pacific%20Islands%20Countries.pdf
182. See http://devpolicy.org/sandra-bartlett-on-youth-and-employment-in-the-
solomon-islands-20130826/
183. See http://thecommonwealth.org/project/pacific-policymakers-equipped-
tackle-youth-unemployment
184. For more details about the Ministry see www.apyouthnet.ilo.org/network/
ministry-of-labour-human-resource-development
185. Adviser report (2013) Solomon Islands Consultation 29 January to 7
February 2013.
186. The SYP programme will cover the four countries selected for our analysis (Fiji,
Kiribati, Solomon Islands, Vanuatu) as well as Nauru, Samoa, Tonga and Tuvalu.
187. This is taken from the SYP document, p. 3.
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