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To appear inThe Handbook on Educational Research in the Asia Pacific Region

(eds. John P Keeves and Rye Watanabe, Kluwer Academic Publishers 2002)

VOCATIONAL EDUCATION AND TRAINING IN ASIA

JANDHYALA B G TILAKNational Institute of Educational Planning and Administration17B Sri Aurobindo Marg, New Delhi 110016, India

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JANDHYALA B G TILAK



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[email protected]

[Key Words: Costs; Curriculum; Economic Development; Financing; Human

Capital general, specific; Inequality; Private Sector; Public Expenditure; Rate of Return]

1. INTRODUCTION

General or vocational education? This is a tough choice in many developing

countries (Yang, 1998, p. 289). In the human capital framework, general education creates

general human capital and vocational and technical education specific human capital(Becker, 1964). The former is portable across ones life and from job to job, while the later

one is not and hence many advocate general education, as more suitable to the flexible labour

force that can change task and even the type of work; but the later one has an advantage,

imbibing specific job-relevant skills, that can make the worker more readily suitable for a

given job and would make him/her thus more productive. Hence both are important, and

education systems in many countries therefore include both general and vocational streams of

education in varying proportions.

Countries in the Asian region have placed varying emphases on general and vocational

education, depending upon several historical, social, economic and political considerations.

While general secondary education is somewhat of homogenous nature, there is a diverse

pattern of provision of vocational and technical education and training

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40To appear inThe Handbook on Educational Research in the Asia Pacific Region

(eds. John P Kee

ves and Rye Watanabe, Kluwer Academic Publishers 2002)


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JANDHYALA B G TILAK




[email protected]



1. INTRODUCTION



general human capital and vocational and technical education specific human capital

(Becker, 1964). The former is portable across ones life and from job to job, while the later one

is not and hence many advocate general education, as more suitable to the flexible labour force

that can change task and even the type of work; but the later one has an advantage, imbibing

specific job-relevant skills, that can make the worker more readily suitable for a given job and

would make him/her thus more productive. Hence both are important, and education systems in

many countries therefore include both general and vocational streams of education in varying

proportions.





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JANDHYALA B G TILAK



45


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[email protected]



1. INTRODUCTION



general human capital and vocational and technical education specific human capital(Becker, 1964). The former is portable across ones life and from job to job, while the later

one is not and hence many advocate general education, as more suitable to the flexible labour

force that can change task and even the type of work; but the later one has an advantage,

imbibing specific job-relevant skills, that can make the worker more readily suitable for a

given job and would make him/her thus more productive. Hence both are important, and

education systems in many countries therefore include both general and vocational streams of

education in varyingproportions.





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vocational education. After all, poor and inadequate investments cannot produce higher

returns (Tilak, 1988a).

It appears that public expenditures on VET are not particularly high in East Asian

countries, but private sector expenditures on training could be high, on which unfortunately

no detailed and comprehensive data at macro level are readily available. For example,

training is provided by enterprise in Singapore through the operation of the Skill Development

Fund established in 1979 and financed through a levy on employers amounting to two per cent of

salaries of all employees earning less than S$750 per month (Haq and Haq, 1998, p. 102). It is

obligatory for the companies in Korea to finance public vocational and training programmes

(Lijima and Tachiki, 1994). Enterprise-based training is the most important form of VET in

Japan.

Besides the scarcity of public resources, governments also face confusion on the efficacy ofVET programmes, which deter them from making required investments in VET. Available

evidence on rates of return to education in countries does not indicate any advantage vocational

education will provide compared to general education. For example, Chung (1995, p. 177)

reported 12 studies showing higher returns to vocational education than to general secondary

education and ten studies otherwise; and five studies that yielded no clear results. Though

there are certain well known problems with the estimates of rates of return to education, and a

few other problems highlighted specifically in the context of returns to vocational education

(e.g., Bennell, 1995; Bennell and Segerstrom, 1998), nevertheless, no conclusive evidence

exists on the economic superiority of vocational education over general education (see also

Tilak, 1988a, b).

Table 4Social Rates of Return to Vocational versus General Secondary

Education

Country Year GeneralVocational/Technical

Cyprus 1975 10.5 7.41979 6.8 5.5Taiwan 1970 26.0 27.4South Korea 1981 9.0 8.1Thailand 1970 10.0 8.0

1990 11.4 6.7Philippines 1960s 21.0 11.0Indonesia

1978 19.0 23.61978 32.0 18.0

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1982 23.0 19.01986 19.0 6.01986 12.0 14.01986 11.0 9.0

Jordan 1960s 6.7 1.6Source: Psacharopoulos (1994); Tilak (1994, 2001); Bennell (1995,

1998)

Table 4 presents estimates of rates of return on this problem in seven Asian countries. Though

they are somewhat dated, it can be noted that except in Taiwan where the difference is small, in

general, vocational education does not pay as much as general secondary education. After all,

costs of vocational education are extremely high, but the labor market benefits are not so high

as to compensate for the huge costs. However, if productivity is measured not in earnings, but

in physical terms, and not in relation to costs, some times it is found that workers with VET

may be more productive than those with general academic education (e.g., Min and Tsang,

1990).

Another aspect of confusion for the governments in developing countries is changing policies

of international organisations like the World Bank. World Bank supported VET in many

countries in Asia for a long time. For example, in 1984-85 of the total World Bank lending

for education, one-fourth was meant for VET projects. As stated earlier, World Bank and

Unesco have strongly argued in favour of investing in VET and its rapid expansion for

economic growth. But by the late 1980s, the Bank policies took a -turn on vocationaleducation and strongly favoured investing away from VET (World Bank, 1995). World

Banks investment in VET came down to a meagre three per cent of the total education

lending by 1996 (Bennell and Segerstrom, 1998, p. 271). The frequent -turns of

organisations like the World Bank in case of vocational education (and also manpower

planning, rates of return to education and higher education) have caused considerable

confusion among the governments of the developing countries on the wisdom of investing in

VET. Countries that did not rely on World Bank assistance might not have suffered much.

5. WHERE DO WE GO FROM HERE?

From the review of Asian experience, a few important lessons can be drawn for the

development of VET in developing countries.

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VET is important for economic growth. But the relationship is not linear. So each

country has to decide the extent of VET that has to be developed, depending upon the

level of development and demand for skills. As Foster (1965, p. 153) observed, in the

initial stages technical and vocational instruction is the cart rather than the horse in

economic growth, and its development depends upon real and perceived opportunities in

the economy. The provision of vocational education must be directly related to those

points at which some development is already apparent and where demand for skills is

beginning to be manifested. Plans for VET should be preceded by detailed manpower

analyses and forecasts. Though the importance of manpower planning and forecasting

per se, has declined, few doubt the importance of detailed manpower analysis.

Since both general and specific human capital contribute to economic growth, a

balance has to be struck between size of general education and vocational education.

Further, vocational education need not necessarily be purely vocational and technical. It

should also include, like in Japan and Korea, general skills and attributes that are useful

across a wide variety of occupations. This is particularly important in the rapidly changing

economic systems.

As specific human capital development can take place both in formal schools and

also in the firm-based institutions, it may be important to examine which vocational and

technical skills are to be provided in schools and which in the training institutions andenterprise-based organisations.

As vocational education is necessarily expensive, the government should make adequate

allocation of resources for vocational education. Poor investments cannot yield attractive

returns.

Vocational education should not promote inequalities within the educational

system. This requires provision of good quality vocational education and training,

comparable, if not superior to, general secondary education that would avoid suspicions on the

part of the people on the intentions of the government in providing VET. It also requires

effectively linking of vocational education with higher education, so that vocational

education is not perceived as dead-end, with no opportunities to go for higher education.

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Given the experience of many countries in Asia, except Japan, the government has to

take a dominant role in promoting VET. Private sector may not be able to provide good

quality VET.

Lastly, issues relating to VET are not just curriculum questions, nor are they just

economic. They are intricately linked with social, cultural, historical, economic,

technical, and political parameters. Hence formulation of sound and effective policies

and plans of VET requires an inter-disciplinary development approach, treating VET as

an integral part of overall educational planning.

References

Anderson, C.A. and Bowman, M.J. (eds.) (1965)Education and Economic Development. Chicago: Aldine.

Asian Development Bank (1991) Technical and Vocational Education and Training. Manila.

Balogh, Thomas (1969) Education and Agrarian Progress in Developing Countries, In: Hufne, K. and Naumann,J. (eds.)Economics of Education in Transition. Stuttgart: Ernst Klett, pp. 259-68.

Becker, G.S. (1964)Human Capital. New York: National Bureau of Economic Research.

Bennell, P. (1995) General versus Vocational Secondary Education in Developing Countries: A Review of theRates of Return Evidence . IDS Working Paper 23. Sussex, Brighton: Institute of Development Studies.

Bennell, Paul and Sergerstrom, J. (1998) Vocational Education and Training in Developing Countries: Has theWorld Bank Got it Right?International Journal of Educational Development18 (4) (July): 271-87.Blaug, M. (1973)Education and the Employment Problem in Developing Countries. Geneva: International

Labor Office.

Boyd, T.F. and Lee, C. (1995) Educational Need and Economic Advancement: The Role of VocationalEducation in the Republic of China, In: Yee (ed.), pp. 193-210.

Chung, Yue-Ping (1995) Returns to Vocational Education in Developing Nations, In: Carnoy, M. (ed.)International Encyclopedia of Economics of Education . Oxford: Pergamon, pp. 175-81.

Coombs, P.H. (1985) The World Crisis in Education. New York: Oxford.

Crane, R.I. (1965) Technical Education and Economic Development in India before World War I. In: Andersonand Bowman (eds.), pp. 142-66.

Dougherty, C. (1990) Unit Costs and Economies of Scale in Vocational and Technical Education: Evidence frothe Peoples Republic of China,Economics of Education Review 9 (4): 389-94.

Foster, P.J. (1965) The Vocational School Fallacy in Development Planning. In: Anderson and Bowman (eds.),

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Green, Andy (1997)Education, Globalization and the Nation State. London: Macmillan.

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Haq, Mahbub ul and Khadija Haq (1998)Human Development in South Asia 1998. Karachi: Oxford University

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Lillis, K. and Hogan, D. (1983) Dilemmas of Diversification: Problems Associated withVocational Education in Developing Countries. Comparative Education. 19 (l): 89-107

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Discussion Paper 51. Washington DC: World Bank.

Min, Wei-fang and Tsang, M.C. (1990) Vocational Education and Productivity: A Case Study of the BeijingGeneral Auto Industry Company,Economics of Education Review 9 (4): 351-64.

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Psacharopolous, G. (1987) To Vocationalize or Not to Vocationalize: That is the Curriculum Question.International Review of Education . 33 (2): 187-211.

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About the Author

Professor Jandhyala B G Tilak is Senior Fellow and Head of the Educational Finance Unit at the NationalInstitute of Educational Planning and Administration, New Delhi. Doctorate from the Delhi School ofEconomics, Professor Tilak had taught in the University of Virginia, Indian Institute of Education and theUniversity of Delhi. He is a Visiting Professor in Econmics at the Sri Sathya Sai Institute of Higher Learning(Prashanti Nilayam). He also lectured in the University of Rochester. An economist of education, Dr Tilak wasalso on the staff of the World Bank, Washington D.C. In addition to several monographs prepared for theUnesco, the IIEP, the World Bank, the UNDP, etc., Dr Tilak's publications include Education for Developmentin Asia (Sage, 1994), Economics of Inequality in Education (Sage, 1987), Educational Planning at Grassroots(Ashish, 1991), Educational Finances in South Asia (UNCRD, 1988), Education and Regional Development,edited (Yatan, 1986), India's Socio-Economic Database, jointly edited (Tulika, 2001) and several research papers

published in professional journals of high repute in the areas of economics, development studies and education.He was the recipient of the prestigious Swami Pranavananda Saraswati National Award of the UGC in Education(1999) for his outstanding scholarly research, instituted by the University Grants Commission, New Delhi.Professor Tilak, a contributor to the International Encyclopedia of Education (Pergamon, 1994), andEncyclopedia of American Educational Research (1992), is also the Editor of the Journal of EducationalPlanning and Administration, and is associated (as a member of the editorial board) with Journal of QuantitativeEconomics, Higher Education Policy (Pergamon), International Journal of Educational Policy Research andPractice (Florida, USA), Compare: Journal of Comparative Education (England), Manpower Journal (India),Perspectives in Indian Education (Vadodara), Asian and African Journal of Economics and Econometrics(Pondicherry) etc. Prof Tilak also served as a Consultant for the World Bank, Asian Development Bank,UNESCO, UNDP, Swiss Development Corporation and several other organisations. He traveled extensively.He is also a member of several official committees on education of the Government of India.

Tilak/Vocational Education and Training in Asia/July 02 Word Count: 6200

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