Financing vocational training
Financing is an essential element of good governance, fulfilling a double role. First, the availability of monetary resources determines the affordability and sustainability of any public policy; and second, systems of financing – including the ways and means by which resources are collected, allocated, and managed – are essential structural factors in the effectiveness and efficiency of public service delivery.
This double role is made more complex by the sheer number of stakeholders who contribute to, and benefit from, vocational education and training. Therefore, while the importance of financing is not questioned, there is no simple approach to helping our partner countries address financing in a holistic and strategic manner.
We are developing innovative concepts and tools to support our partner countries in moving from a technical view, focused on monetary and resourcing aspects, towards a holistic approach, based on an analysis of the financial sustainability of their vocational education and training strategies. We have published a position paper on Financing Vocational Education and Skills Development, which sets out the importance of investing in this policy area, the main challenges relating to financing in our partner countries, and our methodology for policy analysis and social dialogue on financing.
In 2018 we’re also producing a series of guideline documents on three key aspects of financing; training levies, incentivisation, and formula funding. Alongside these, we are developing a unique tool for policy and social dialogue on the financing of vocational education and training. The tool is inspired by the shape of a prism, offering a geometric and a conceptual framework for modelling the critical questions relating to specific funding and financing schemes.