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Modernisation of Vocational Education and Training in Latvia - 2001 - Latvia
The National Observatory’s report to the European Training Foundation
Authors - National Observatory project team:
Baiba Ramina, Vija Hodireva, Solvita Silina
Project team is grateful to: M.Behmane, I.Brensone, I.Buligina, I.Cvetkova, A.Joma, G.Krusts, Z.Priede, A.Rauhvargers, Dz.Tillere, I.Upeniece, I.Vadone
Source: Latvian
National Observatory
Tables, charts and Annexes of the original report are excluded
Executive summary
Introduction
This is the fifth report on vocational education and training prepared by the Latvian National Observatory to the European Training Foundation.
The country has overcome the consequences of the Russian financial crises. The national economy has stabilised. Calculated in constant prices, industrial production output in October 2000 was 5.6% higher than in October 1999. The level of registered unemployment in December 2000 has stabilised to 7.8%.
At national level the Ministry of Education and Science (MoES) is responsible for the development of vocational education and training (VET). In summer 2000 many changes took place in the MoES. The Vocational Education Development Department was reorganised and now it is the Vocational and Continuing Education Department. This shows that also at national level vocational education is considered as education lasting all life long. Still the reorganisation within the MoES does not eliminate the lack of uniformity in the VET network. Initial VET schools are still under the jurisdiction of four ministries (MoES, Ministry of Agriculture, Ministry of Welfare, Ministry of Culture).
The reform of VET is on-going, but at the moment it mainly concerns initial vocational education and training. Legislative alignment is continuing according to the Law on Vocational Education adopted in 1999. It is very important that standards on vocational education and vocational secondary education are adopted. The elaboration of occupational standards has started.
The role of social partners is growing every year. Social partners are involved in discussions about educational programmes, occupational standards and in providing placements for practical training. The instability of the majority of enterprises and lack of tax incentives deters the social partners from investing in education, but it is a fact that their interest in the development of VET has increased.
The EU Phare programme “Vocational Education and Training 2000” has given an important contribution to the development of VET. Research on first level higher vocational education (a new educational level in Latvia) has been carried out within its framework. The elaboration and implementation of first level higher vocational education programmes has started.
The weakest point of vocational education and training in Latvia is continuing vocational education. The Law on Adult Education has not been adopted yet. The co-ordination between different institutions dealing with continuing education is very weak. So the next step in the modernisation of VET must be the modernisation of the system of continuing education and training.
This is the fifth annual Latvian National Observatory’s country report on vocational education and training to the European Training Foundation (ETF). The main objectives of the report are:
The study is elaborated on the basis on summaries and analyses of available information,, documents, statistical data as well as secondary analysis of sociological research.
As basic data sources the data from the Central Statistical Bureau (CSB), State Employment Service (SES) and Ministry of Education and Science (MoES) were used. The study also includes relevant information from different research findings, UNDP human development reports and reports of the Ministry of Economics.
During the ten years in which Latvia is again an independent state, essential changes have affected the country’s educational system. In order to compare the level of education of the entire population, CSB and SES use some terms applied in the soviet educational system, as it is impossible to transfer them directly to the existing system. Terms used for non-existing levels of education are:
Secondary specialised education - these are level 3 or 4 vocational qualification programmes acquired after or parallel to secondary education programmes;
Secondary technical education - these are level 2 or 3 vocational qualification programmes acquired parallel to secondary education programmes.
The statistical data from academic year 1999/2000 are used.
Legislation described is in force during 1999 and 2000.
During the process of preparing the report, representatives from the following
institutions were consulted:
Ministry of Education and Science, Professional Education Centre, Central
Statistical Bureau, State Employment Service, Career Counselling Centre, Agency
for Vocational Education Development Programmes, Latvian Employer’s
Confederation.
In order for Latvia, like any other country, to be able to pursue the road to development, to achieve certain economic and social goals, it is imperative to improve the professional skills and knowledge of individuals. It is therefore essential for the national vocational education and training system to adapt to economic changes.
The consistent reforms that have taken place until now have stabilised the foundation of the market economy, have created a stable macroeconomic environment and secured the trust of investors. This is reflected by the dynamics and structural changes of the gross domestic product (GDP) - see Table 1 in the Annex 2.
If in 1997 the GDP per capita was 5300 Euro (converted, in current prices), then in 1998 it was 5600 Euro, but in 1999 -5800euro.
The complicated situation in the global economy has affected the rate of economic development in Latvia. Due to the Russian crisis at the end of 1998 and at the beginning of 1999 that lowered exports to this country and caused problems to some commercial banks, production outputs in Latvia declined, banking indicators deteriorated, budgetary revenues did not come in as planned and unemployment was on the rise.
The process of reforms and their influence on economic processes is characterised by the dynamics of basic indicators on national economic development (see Table 2 in the Annex 2). After the economic down-turn in 1998, which was affected by the global financial crisis and the Russian economic crisis, the recovery of the national economy is evidenced by the increase in GDP in 1999 by 0.1% (by 2.8% in the last quarter). Positive tendencies have become even more explicit in 2000. Exports, industrial and service outputs go up, the turnover of cargo on railway and in ports is high. Investments go up at a fast rate. Financial system is stable. GDP in 9 months of 2000 compared to the respective period in the preceding year has gone up by 5.4 percent.
It must be noted that radical socio-economic disparity exists among the different regions in Latvia. For example in Latgale and Vidzeme GDP in 1999 stood at 16% and 19%, of the EU average level, while in Riga and the surrounding region it was 37%.
The main economic goals outlined by the government headed by Andris Bērziņš started to work in May 2000 in the Declaration of the Cabinet of Ministers on the planned activities for the medium term are:
The implementation of the privatisation programme passed by the Cabinet of Ministers on 21 February 1995 is drawing to a close. The private sector reached a proportion of 66% of the total added value in 1999 (65% in 1998), and it employs 69% (68% in 1998) of the economically active population in Latvia. In such sectors as manufacturing, construction, the fishing industry, agriculture, hotels and restaurants the proportion of GDP created by private enterprises in 1998 exceeded 90%, and in the first half of 1999 there was no significant increase. As of 1999 the main goal in the privatisation of state enterprises has been to improve efficiency in certain economic sectors (power, telecommunications, shipping). In order to achieve this, the Privatisation Agency, together with the corresponding sector ministries, is preparing long-term sectoral development strategies and restructuring and privatisation plans for the corresponding enterprises.
Changes have occurred in several economic sectors. In 1999 rapid growth was evidenced by the construction, retail and other service sectors, for example “Operations involving real-estate, rental and other commercial activities”, other community, social and individual services. On the whole, manufacturing in 1999 did not regain the production level that existed before the Russian economic crisis. Positive rates of production growth are maintained by those manufacturing sectors with markets in the West. In 1999, due to the Russian economic crisis and low productivity, the agricultural sector continued to decline.
One of the most important areas of state support is promoting development of small and medium enterprises (SME). As surveys show, the main barriers to SME development in Latvia are insufficient financial resources for starting up and developing businesses, limited opportunities for receiving credit and collateral, lack of information about markets and possible business partners, lack of knowledge in management and marketing and a tax system that does not offer incentives.
The ministry responsible for the National Programme for the Development of Small and Medium Enterprises, which was approved by the Cabinet of Ministers in 1997, is the Ministry of Economics. The programme co-ordinators consider the most significant result to be the Concept on Crediting Small and Medium Enterprises, which was approved by the government in 1999. For the implementation of this plan in 2000 a sovereign loan guarantee of 3.2 million LVL has been granted. The concept of supporting organisations that represent entrepreneurs is significant - this includes a decree on the establishment of a council of experts representing 19 different economic sectors, as well as financial support which the Latvian Securities Agency received from the European Commission in April 1999, which means that SME may soon be able to actually receive loan guarantees. Actually most of the support offered to SME has come from the PHARE programme.
A significant increase in investment in Latvia occurred in 1996 and 1997. The growth rate exceeded 20% (total cost of share capital). In 1998 the volume of investments continued to increase, however at a lower rate (by 11%).
The foreign investments were 9.3% of GDP in 1997, 6% of GDP in 1998, 6% of GDP in 1999.
There are significant disparities in the dispersion of foreign investment, as 65% of the total investments in Latvia are concentrated in Riga and the surrounding region. In the course of time, changes have taken place in the structure of investment. If in the beginning of the 90’s it was channelled mostly to agriculture, food production and construction, then in the mid-90’s it was put into ports, telecommunications, as well as manufacturing. In 1999 foreign capital investment went into transport, warehousing, communications (25% of the total); financial services (21%), manufacturing (20%), commerce (16%). The largest share of accrued foreign investment in share capital belongs to Denmark (13.7% of the total), the USA (9.7%), Germany (8.4%), Sweden (8.2%), the UK (7.3%) and Russia (7.3%).
In March 2000 the Cabinet of Ministers approved the green paper “On support for investment projects of significance for the national economy”, which provides for the promotion of significant investment projects including measures for training and up-grading skills.
Demographic conditions in Latvia are still negative. Many experts consider Latvia to be the worst case in comparison to the other Baltic and Nordic countries. Since 1991 the natural rate of increase is negative. The birth rate continues to decrease both in urban and in rural areas. As a result of mobility and the migration process, the number of inhabitants in the country has decreased by 234,000 from 1990 to 1999, however the rate of decrease has slowed in the last few years. In the beginning of 1999 there were 2.439 million inhabitants in Latvia, but at the beginning of 2000 there were approximately 2.424 inhabitants (see Table 4 and 8 in the Annex 2).
The low birth rate, increased mortality (in 1999 the number of deaths exceeded the number of births by 1.7 times) and the negative migration balance cause changes in the age structure of the Latvian population (see Tables 5 and 7 of the Annex 2). The population is ageing more rapidly. The proportion of children and youth (ages 0-14) within the total population has decreased from 21.3% in the beginning of 1987 to 18.5% in the beginning of 1999.
More precise and detailed data about demographics and other socio-economic indicators will be provided by the Census that was taken in Latvia in the year 2000, beginning on March 31.
In order to achieve positive changes in the national demographic process, at the end of 1998 the government approved a plan of events for improving the demographic situation.
The first comprehensive study on the population of Latvia has been carried out within the scientific research programme of the Latvian Council of Science in the period of 1998/99. Long-term population projections were worked out by the Centre of Demography as well as the Department of Statistics and Demography of the University of Latvia (Prognosis of demographic development of Latvia: years 1998-2025. Informative material. Ed. P. Zvidriņš. Riga: University of Latvia, 1999). All the experts project under-replacement of generations in the future and a depopulation situation as well as rapid ageing of the population in the nearest decades.
The characteristic feature of projections showing changes in population age structure is rapid reduction (absolute and relative) in the number of children. Until the early 1990s children accounted for 22% of the total population, but at present the proportion is 19%. In 2005 this proportion will be only 14% which will tend to decrease in future. As a consequence of decrease in the fertility rate in the 1990s the number of schoolchildren will continue to decline at the beginning of the next century. By 2010 the current drop in the fertility rate will have a substantial impact on the number of young men called up for military service as well as the number of potential students. According to estimates of the medium variant, the number of young people at age 15-19 years in 2020 will be half of those in the year 2000. During that period there will also be a sharp decrease in the number of people who have reached the age of entering the potential labour market.
2. Labour market background2.1. Economic activity of the population
In November 1999 a total of 58% of the population was economically active. Compared with November 1998, the number of economically active residents aged 15 and older had decreased by 11,000 or 0.6%. A comparison of the distribution by age group of the economically active population shows that those in the age groups 20-24, 25-34, 35-44, 45-54 make up 80% to 90% of economically active inhabitants both in urban and rural areas (see Tables 9,10 and 11 in Annex 2).
The highest proportion of the total number of economically active residents is among those persons having completed higher education (78%) and secondary technical education (77.5%), this distribution is similar for economically active residents living in urban areas. In rural areas the highest proportion of economically active residents have completed secondary technical education (80.3%).
It is evident that there is a higher concentration of men than women in the economically active population both in urban and in rural areas.
The total number of employed persons has decreased in the space of a year (November 1998 to November 1999) by 17,700 residents aged 15 years and older, but in comparison with data of 1990 the decrease is 371,000. Changes have also occurred in the structure of the employed population - the number of employers and company employees has increased, while the number of self-employed persons as well as unpaid family members and relatives has decreased. In several age groups the level of employment has decreased. The most rapid decrease is in groups of ages 25-29, 30-34 and 50-54.
The majority of full-time employees have a certificate of secondary education. The largest proportion are holders of secondary vocational education diplomas (25.5% of the total population of employed persons in November 1999), or general secondary education diplomas (24%). The number of women having completed higher education still exceeds the number of men. In the space of this year the proportion of employed persons with higher education diplomas has increased by 1.1 percentage points. There has also been an increase in the proportion of employed persons with secondary vocational education diplomas (see Table 15 in Annex 2).
2.2.1. Structural changes in employment
Rapid changes are taking place in the employment of the Latvian population in different sectors of the economy. If up until 1992 the majority of the population was employed in the public sector, then as of 1993 there is a greater number of employed in the private sector. In the age groups 15-19, 20-24, 25-39 there is a larger proportion of persons employed in the private sector, however, in the age groups 40-59, 60 and over, a greater proportion of persons is employed in the public sector.
The greatest number of employed persons works in the service sector. In November 1999, as compared with the previous year, there were considerable decreases in the number of persons employed in agriculture, processing industry, as well as financial services, health care and social services and several other types of services. However, the greatest increase in numbers and proportion of employed persons has taken place in property managment, rental services and commerce, as well as public administration and defence, social security services. A small increase can also be observed in the education, hotel and restaurant, transport and communications sectors.
This shows that VET should implement more to client and service oriented programmes and reduce its typical to producing process oriented programmes.
2.2.2. Employment in the private sector
The proportion of employed in the private sector increases every year.
The declaration of the Cabinet of Ministers states that one of the main tasks for rapid development of the Latvian economy is developing a favourable business climate. For this reason a prerequisite should be the establishment of a training and up-grading system for upper and mid-level managers. Perhaps this could happen in co-operation with the network of Enterprise Support Centres.
The demand for employees with a high level of education and good practical skills is increasing also in the private sector. On the supply side, the market provides a wide variety of training courses, but enterprises, especially SME, lack current assets to invest under conditions of rapid growth. For this reason private enterprises face a considerable risk in freezing large volumes of funds in a long-term investment - the qualifications of their staff.
2.2.3. Employment opportunities for graduates
Since young people who graduate from general secondary education have neither professional training, nor work experience, their chances of successfully competing on the labour market are low. The majority of secondary school graduates plan to participate in higher education. There is no data about employment of school leavers. The CSB Labour Force Survey shows that in May 2000 the greatest rate of employment was among people having
higher education (72% of those having higher education are employed);
secondary specialised (63%);
secondary vocational (including secondary technical) - 63%;
vocational without secondary - 56%.
The given figures show that educational attainment is highly connected with the rate of employment. The people who are highly educated have more opportunities to find their place in the labour market and to ensure a stable and secure life for themselves.
In the second half of 1998 and the first half of 1999 under the impact of the Russian crisis many enterprises were forced to lay off people. Unemployment rate reached its peak in April 1999 (10.2%). Yet starting with May unemployment started to go down at the end of 2000 the registered unemployment was 7.8% of economically active population. However, real rate of unemployment was substantially higher (according to the methodology of International Labour Organisation, the survey carried out by the CSB says that unemployment in the third quarter of 2000 was 13.1%).
Unemployment rate is considerably different in different regions and cities. The most difficult situation remains in Latgale where unemployment in some regions exceeds 20% of economically active persons.
The CSB Labour Force Survey shows the number of persons who is unemployed and seeks a job. In total the number of job-seekers has decreased by 5,000 (from May 1999 until May 2000).
The largest proportion of job-seekers was among the 20-24
year old population, but the 25-29 age group has seen the greatest increase in
the proportion of job-seekers (see Table 17in
Annex).
In rural areas the proportion of job-seekers among the economically active
population has increased, but in urban areas it has slightly decreased. An
analysis of the distribution of the proportion of job-seekers among the
economically active population according to gender and territory shows that the
changes in proportion are irregular - the proportion of men in urban areas has
increased, while for women it has decreased, however in rural areas the
proportion of both men and women seeking jobs has increased.
The number of job-seekers by age groups, by gender and duration of job seeking is reflected in tables 17 and 19 in Annex 2. Labour Force Surveys show that three quarters of all job-seekers seek a job for a period of more than 6 months, but the average duration of job-seeking is 28 months. 58.4% of the total number of long-term unemployed are persons without a professional education, therefore it is hard for them to find a job.
According to the data of the SES, the proportion of registered unemployed has increased only among those persons who have a vocational or higher education diploma (see table 18 in Annex). The greatest decrease has been in the proportion of job-seekers having partially completed basic education, secondary technical and general secondary education.
The largest group of registered unemployed persons (see table 16 in Annex) are those who have pursued simple professions, and in the last years this stands at 26-27% of the total number of unemployed. The proportion of unemployed persons without a profession has been decreasing as of 1997 (5.4% in 1997, 4.7% in 1998). However, the largest proportion of unemployed persons are those with an incomplete or completed basic or general secondary education, but the lowest proportion is among those having completed higher education.
A comparison of the proportion of job-seekers among the economically active population with the level of registered unemployment in November and May 1999 shows completely opposite trends. The level of registered unemployment has decreased by 1 percentage point, but the proportion of job-seekers has increased by 0.5 percentage points. To a certain degree this is linked to the increased numbers of people who lose their registered unemployed status.
During 1999 118.3 thousands people lost their registered unemployed status (during 1998 85.4 thousands). 34.6% (36.6% in 1998) of them found job, but 58.4% (55.2% in 1998) did not follow the norms of law “On Employment”, that is after term of gaining the benefit for unemployed they did not continue to apply to the State Employment Service once a month, thereby they lost the status of registered unemployed.
Labour market policy is an integral part of national social and economic policy. The labour market in Latvia is linked to the implementation of concepts and programmes developed for the promotion of economic growth (the medium-term economic strategy in the context of accession to the European Union, the National Programme for the Development of Small and Medium Enterprises, the Strategic Programme for the Development of the Education System, the National Programme on Youth Policy, etc.). The following priorities are set in the National Employment Plan for 2001:
improvement of the quality of the workforce;
promotion of youth employment;
reduction of the period of unemployment;
development of special programmes targeting re-integration of pre-retirement age unemployed into the labour market;
improvement of the quality and effectiveness of services for job-seekers and the unemployed.
Job-seekers’ clubs (JC) are an active employment measure. The goal of the clubs is to use psycho-social rehabilitation to promote the initiative, capacity for re-training and psychological adaptability to new labour market conditions of unemployed persons, as well as to prepare them to meet labour market demands.
In 1999 the quality and effectiveness of JC has improved, the demand for JC activities on the part of unemployed persons has increased. The following is evidence of the improved efficiency of JC:
Another active employment measure is Paid Temporary Public Service, where unemployed persons who want to work but cannot find constant employment are involved.
In 1999, 2,586 unemployed persons, or 22.7% of those who participated in Paid Temporary Public Service (PTPS) projects found employment. In projects supported under the PTPS programme, the funding allocated for the creation of one new job in 1999 was 718 LVL, which was 117 LVL (or 13%) less than in 1998. The average monthly unemployment benefit is 48.07 LVL, which makes an average annual total of 432.63 LVL.
In regions suffering from the highest levels of unemployment, PTPS projects promote the development of small and medium enterprises, which in turn promotes the application of new technologies, manufacturing of new types of production and the development of the social infrastructure. In the 1999 PTPS project competition, 64 of the projects selected (47% of the total) were implemented in districts (Balvi, Preili, Rezekne, Kraslava, Ludza) and civil parishes.
It is expected that the development of institutional systems and strengthening of administrative capacity which is taking place in order to prepare for the EU Structural Funds will be actively pursued in Latvia at least until the end of 2002. During this period it is necessary to prepare the organisational structure, raise qualifications of staff and the capacity for quick and efficient flow of funding of the institutions of the Ministry of Welfare. This must be done in order to be able to absorb the assistance offered by the EU Structural Funds (or Phare Pre-structural Funds prior to accession) in a transparent and professional manner. Accordingly, there is a need to:
train staff in basic principles, prerequisites and conditions of EU structural policy and implementation procedures,
develop an efficient instrument for the administration and co-ordination of EU financial assistance in order to successfully meet the requirements of the decentralised implementation system of EU funds;
acquire management methods and technologies of EU funded programmes and improve project follow-up skills according to international best practice.
The person responsible for the expenditure of funds allocated to the welfare sector is the Senior Official of the Ministry of Welfare. The Senior Official of the Ministry of Welfare co-ordinates the technical management of EU Phare projects, but the administrative and financial management of welfare sector projects is ensured by the Central Financing and Contracting Unit (Implementing Institution), which is subordinated to the Ministry of Welfare.
2.5. Future skill needs of the economy
No set of forecasting methods has been developed yet on the national level and it is difficult to make future projections on what kinds of professions and how many employees will be needed. Employers surveys are organised (by the State Employment Service) on the regional or sectoral level, according to which it is possible to judge what kind of profile will be in demand in the near future (in 1 year or slightly longer).
One of the priorities of the vocational education system is to perform a methodologically sound analysis of sectoral labour needs and competences, and to begin developing a national qualification infrastructure based on the results. In the framework of the EU Phare programme methodology on sectoral surveys was developed.
In the framework of the EU Phare programme “Vocational Education and Training 2000” surveys of the information technology, telecommunications and electronics (ITTE) sector and construction sector were carried out. They present data on future labour force needs in these sectors.
It is considered that the demand for ITTE specialists will increase more than twice in the following 3 years. The number of university graduates in the ITTE field must be expanded as much as possible - at least by three times. According to the study of Latvia’s ITTE companies, specialists with fourth level vocational qualifications are in greatest demand. The results of the survey of Latvian ITTE companies show that the largest increases in staff numbers can be expected in these professions: software designers, software project mangers, system analysts, software product testers, ITTE consultants, computer network and system administrators and others related to development and servicing of software and Internet applications.
The survey of Latvian construction companies shows that an increase in staff number can be expected at all levels of qualifications. The greatest increase of demand (30%) in the next three years is expected for specialists having vocational qualifications of level 4 and 5. The increase of demand for low qualified workers is expected to be only by 5%.
2.6. Conclusions as regards the key labour market issues and their influence on aspects of human resource development
The state economy has overcome results of Year 1998 economic crises. The rate of registered unemployment has decreased from 10% at the middle of 1999 to 7.8% at the end of 2000.
It must be noted that radical socio-economic disparity exists among Riga and rural regions (for example, in Latgale and Vidzeme GDP in 1999 was 16% and 19% of the EU average level, but in Riga - 37%). In 1999 in Riga the average salary was 116% of the average in the country. The employment rate in Riga was 9%, but in Rezekne - 35%. Therefore young people leave rural areas, the labour force and intellectual potential is concentrating in Riga.
There are significant disparities in the dispersion of foreign investment, as 65% of the total investments in Latvia are concentrated in Riga and the surrounding region.
The state support to small and medium enterprises is insufficient. The main barriers to small and medium enterprises development are insufficient financial resources for starting up and developing business, limited opportunities for receiving credit, a tax system that doesn’t offer incentives. It is difficult for small enterprises to survive in the process of globalisation.
Since 1991 the natural increase is negative. The population is aging more rapidly. That will lead to decrease of schoolchildren and of people who reached the age of entering the potential labour market in the following years.
The structure of employment is changing. The proportion of employed in services is increasing (53.2% in 1997, 58.7% in 2000), but in agriculture and fishing is decreasing (21.6% in 1997; 14.5% in 2000). Due to process of privatisation the share of employed in private sector is increasing.
In 1999 in SES there was demand on the labour market for employees in 288 professions, but the SES register included unemployed persons representing 2,142 professions. Of course, labour quality criteria are increasingly more demanding. An analysis of long-term job vacancies performed by the SES last year provides evidence that employers require workers with excellent theoretical knowledge and well-developed practical skills.
Therefore, in order to ensure the correspondence of the educational qualifications of Latvian residents to the current and future demands of the labour market, one of the priorities in human resource development is the development of regional administrative infrastructure for the implementation of labour development policy.
3. Modernisation of vocational education and training in the perspective of life long learningIn 2000 the MoES has drafted the Education development programme 2000 - 2004. It sets the following main objectives for the modernisation of VET:
3.2: Human Resources Development Strategy and priorities of the National Development Plan
The National Development Plan (NDP) is the most important program document for work with the EU regional policy and structural funds. NDP is developed as one of the basic strategic documents in the state. Its primary task is to characterise the development of Latvia and to initiate changes that in the medium term could facilitate growth of welfare of people and the whole state.
In accordance with the present social and economic situation in Latvia the NDP Steering Group that was set up with the decision of the Cabinet of Ministers of March 7, 2000 has approved five strategic objectives of future development of Latvia. They are:
to promote sustainable development of Latvia raising welfare of every resident;
to encourage growth and competitiveness of an educated and cultured person;
to develop democracy and perfect the system of public administration;
to foster regional development by decreasing and eliminating the unfavourable regional differences and supporting the favourable regional disparity;
to promote integration in the European Union.
At the beginning of 2001 The National Development Plan is just under development. The strategic memorandum is prepared and submitted to the Cabinet of Ministers. It is considered the National Development Plan will be prepared during this year.
The strategic memorandum of NDP gives concentrated view on the current state development and the potential development in the nearest future. It determines such priorities for state socio-economic development within the next six years:
3.3. Preparations for European Social Fund (ESF) implementation
The very basic preparatory steps have been taken. The major part of ESF preparations was done in the framework of the EU Phare Special Preparatory Programme on the ESF including national and local seminars, study visits, simulation game.
3.4. Modernisation of initial vocational education and training
In June 1999, the new Law on Vocational Education was adopted. It provides a stable foundation for improvement of the VET system. The process of transition to a market economy changes the requirements for vocational education. Now the main objective is to prepare specialists that meet the demands of the labour market and have obtained a positive background to continue professional development all life long. If a person has a professional education he has less chances to be socially excluded, and this reduces the social tension in the country.
3.4.1. Structure and organisation of the VET system
In Latvia the initial vocational education and training system includes vocational basic, vocational, vocational secondary and first level higher vocational education. The training in IVET leads to level 1 - 4 CEDEFOP vocational qualifications. The second level higher vocational education is a part of higher education and is regulated by law On Higher Education Establishments.
3.4.1.1. The initial VET system as a part of the education system
In the 1999/2000 school year 8.4% (47,703 persons) of all students involved in education attended the 121 institutions of the initial vocational training system. 74% of total enrolment are young people in the age 15 - 19 and it is 20% of total number of young people in this age group in Latvia.
Pre-schools were attended by 11.4% (65,097 students), all types of comprehensive schools were attended by 64.4% (361,432 students), but higher education establishments were attended by 15.8% (89,509 students).
3.4.1.2. The entry to the initial VET system
In April and May of 1999 the State non-profit organisation Career Counselling Centre performed a survey of 9th and 12th grade students concerning their choice of profession. A total of 1,340 students were surveyed from various urban and rural schools.
The results of the survey show that in April and May 10% of the ninth-graders and 7% of the twelfth-graders had not yet decided where to continue their education.
7% of ninth-graders and 33% of twelfth-graders expressed a wish to work or to combine work with studies, which means that they are potential job-seekers. Compared to the previous year, the number of students with such plans has increased by 9%.
Similarly to the previous year, only a third (32%) of twelfth-graders and ninth-graders (33%) can indicate that they have chosen a profession. The choice of profession is slightly clearer for rural ninth-graders and urban twelfth-graders. The main motivation for choosing a profession is a good salary. Of the 10 most popular professions, 5 are shared by ninth and twelfth-graders, and those are law, law enforcement, computer programming, translation and economics.
The following table demonstrates the real situation concerning students’ choice of continuing education, however there are no statistics available on students who combine studies with work.
During 1996 - 1999 the share of basic school graduates that enter VET schools is decreasing. The greatest part of basic school graduates choose general secondary schools, they want to continue studies in higher education establishments or they have three more years to decide what they want to do. The proportion of those who discontinue studies after basic school remains the same. This is a risk group, the rate of unemployment in age group 15 - 19 was 36.6% (in November 1999). This is a challenge for VET system as well to develop measures how to re-enter this group to educational system. Every year is decreasing the ratio of graduates who just after secondary school enter higher educational establishments, but the total enrolment of higher educational establishments is rapidly growing (see table 22 in Annex 2). Many of secondary school graduates use one or two years after graduating for earning some money for further studies. The rate of unemployment in age group 20 - 24 is 21.3 (in November 1999). The risk group is those who graduate from secondary schools with very low level of knowledge assessment. They can’t continue education and they have no any occupational skills. Educational system does not provide any remedial courses for those who want to improve their level of knowledge. It is also opportunity for VET system to change the situation. In the 1999/2000 school year 47,703 students attended vocational schools in Latvia, which is an increase of 1,366 students or 3% over the previous academic year. Applications for entering vocational schools have been submitted by 23,840 candidates, of those 78% or 18,532 were enrolled. It must be noted that the number of students who pay fees for their training (who do not receive state subsidised training places) increases annually. In the 1999/2000 academic year 9.5% of all students enrolled paid tuition fees, in the 1998/1999 - 9%, but in 1997/1998 - 6.7%, and in 1996/1997 - 5.85%. In the 1999/2000, of the total number of students enrolled in vocational education establishments, 1.7% had not completed basic education, 69% had completed basic education, 20% had completed general secondary education, 9.3% had graduated from other schools. Compared with the previous year, there is a slight increase (3%) of those students who enrol in vocational training after completing general secondary school.3.4.1.3. The training levels and certification of outputs
Basic education stage
Basic vocational education
Students are admitted to basic vocational programmes from the age of 15 and without any limitations concerning previous education. The duration of basic vocational programmes is 1 - 2 years. A certificate of basic vocational education confirms that the student has acquired a basic education and has been granted a level 1 vocational qualification (based on theoretical and practical training to perform simple tasks in a particular sphere of practical activity).
During the 1999/2000 2% of students who had not completed basic education attended remedial groups. These groups are becoming more and more popular, because the number of young people who do not finish basic school is increasing annually. For example, during the 1999/2000 2.4% of students attending grades 5-9 were expelled from general education schools. In order to prevent the social exclusion of these young people, remedial classes are established at vocational schools, where students can acquire both the basic elements of a profession and basic education.
Secondary education stage
Vocational education
Students are admitted for vocational programmes from age of 15 and without any limitations concerning previous education. The Law on Vocational Education provides that students who have entered vocational programmes without basic education must be provided with remedial classes, and, after passing exams, a certificate of basic education should be granted. As there is a lack of specialists and finances to open remedial classes at this level, students are admitted for vocational programmes after acquiring basic education, but remedial classes are part of basic vocational education. The duration of vocational programmes after basic education is 2 - 3 years, but after general secondary education 1 - 2 years. Upon completion of this programme, a certificate of vocational education is granted, indicating a level 2 vocational qualification (theoretical and practical skills required for independent work as a skilled worker). This document is awarded to students who have completed a full course of vocational education and have passed a qualifying exam. Vocational education is not equivalent to general secondary education, graduates are not eligible to continue on to higher education.
In the 1999/2000 29% of students were enrolled in vocational education programmes.
General secondary education
In order to allow those vocational school students who wish to continue their education at the university level to acquire general secondary education, vocational schools offer general academic bridging courses. In these courses persons who have completed vocational education programmes can study the required academic subjects, take general secondary education graduation exams and receive a certificate of general secondary education. During the 1999/2000 2% of vocational school students attended bridging courses, however, it must be added that not all students who wish to receive a general secondary education along side their vocational training participate in these programmes. Some students choose to attend evening school.
Vocational secondary education
Students are admitted for vocational secondary education programmes after completing basic or vocational basic programmes. The duration of programmes is 3 - 4 years after basic education and 2 years after general secondary education.
After the completion of these programmes one receives a diploma of vocational secondary education and level 3 vocational qualification (an advanced level of theoretical knowledge and skills in the profession allowing not only to execute tasks, but also to plan and organise work). This diploma allows students to continue their education at higher education establishments.
During the 1999/2000 62% of students were enrolled in vocational secondary education programmes. These are the most popular programmes offered by vocational schools.
Tertiary education (non-university higher education)
First level higher vocational education (college education) This education can be pursued at colleges. College-type education leads to a level 4 vocational qualification (theoretical and practical preparedness for performing sophisticated executive tasks and for organisation and management of other specialists). The length of studies in these programmes is 2-3 years after completing general secondary or vocational secondary education. Diplomas of first level higher vocational education are awarded as of June 6, 2000. The diploma certifies that the qualification earned by the student corresponds to level 4. An annex in Latvian and English is attached to the diploma. This is necessary in order to ensure that information about the level, context and content of studies is as transparent as possible.
Generally colleges have agreements with university-type establishments that the best graduates may enter the 2nd or 3rd year of university programmes directly. During the 1999/2000 4% of students were enrolled in these programmes.
College-level education is new to Latvia, but there are plans to offer more and more new programmes at this level.
Procedure for granting certificates and qualifications
In order to receive a vocational qualification, one must pass a qualifying exam. The exam consists of two parts: a test of theoretical knowledge and a test of practical skills. The Professional Education Centre of the Ministry of Education and Science is in charge of the drafting of theoretical examination questions and the evaluation of the test questions by professional associations. The qualifying exams are held by educational establishments or training and examination centres (TEC). TEC have not yet been established in all profiles - currently there are 7: auto mechanics, welding, carpentry, electrical installations, tailoring, metal working, interior decoration. Members of the qualification commission are representatives of the labour market. Work is underway to raise the quality of qualifications by improving the work of TEC and developing unified qualification examinations. In the 1999/2000 there were unified examination requirements for 31 profiles.
If the student has met the requirements of an accredited programme of vocational education in order to be eligible to sit qualifying exams, but has not passed the exams, then he receives a transcript that certifies the partial completion of an accredited programme of vocational education.
As the Law on Vocational Education is in force as of September 1, 1999, students who have started educational programmes before this date receive documents certifying education and qualification according to procedures established before this law was in force. That means new and old kinds of educational documents were awarded in 1999/2000.
3.4.1.4. Organisation of the training provision within each level
In Latvia during 1999/2000 121 vocational education establishments were in operation, of those 5 private (offering accredited programmes), 5 local government operated and 111 state operated. State operated schools are under the jurisdiction of different ministries: 52 under the Ministry of Education and Science, 6 under the Ministry of Welfare, 38 under the Ministry of Agriculture, 15 under the Ministry of Culture. This division of administrative responsibility is a relic of the Soviet era, when each sector was responsible for its own human resource development. Such fragmentation does not, of course, encourage the development of a unified education system, therefore one of the government’s priorities is to establish a leading role for the Ministry of Education and Science.
The largest number of vocational education establishments can be found in Riga and other larger cities. During the 1999/2000, 43 of 121 vocational education establishments were located in Riga. There is at least one vocational school in every district (except one - Balvu district).
Training in approximately 220 profiles can be acquired at vocational education establishments...
In 1997 the unified Classification of Education of the Republic of Latvia was enacted, but in December of 1998 a new version was approved, which had been harmonised with the International Standard Classification of Education (ISCED-97). This means that statistics are based on two different classifications and are difficult to compare.
As can be seen from the chart, the largest number of students are enrolled in engineering and technologies programmes, however, this number has a tendency to decrease yearly. A significant decrease has also occurred in the number of students enrolled in agriculture programmes. This can be explained by the general depression in the agricultural sector which followed after the period of optimism in the early nineties. Service sector programmes are becoming more and more popular. These programmes also include new profiles such as designer-stylist. Each year the number of students enrolled in social science programmes also increases, and the number of programmes offered in management increases, too.
Student incentive. There are two incentives offered to students of vocational education establishments: student dormitories and personal maintenance grants.
Of the 121 vocational education establishments in operation during the 1999/2000 academic year only 20 schools did not have student dormitories. 32.5% of students require dormitories and vocational schools can meet 99.5% of the demand. Rental costs in dormitories are comparatively very low, which is why students much prefer them to other types of housing. Generally dormitories also contain public catering services, which allow students to take their meals cheaply on-campus.
Each full-time student at state and local government operated vocational education establishments receives monthly a minimum personal maintenance grant of 4.5 LVL from the state. In planning the average monthly grant budget, institutions calculate an average of 8.5 LVL (which is the average grant) per student per month. Each institution has its internal regulations on what categories of students can receive a higher grant. The maximum maintenance grant can be 27 LVL per month. Depending on the kinds of agreements with enterprises in which the school has entered, students may also receive part of what they have earned during their practical training placement.
Along with the grant, full-time students are reimbursed 50% of their travel expenses from home to school.
Both the opportunity to receive cheap housing and the maintenance grants are factors that attract students from low-income families and persons who feel the need to become financially independent to vocational education establishments. The fact that students of vocational education establishments are more strongly motivated to begin living independently than students of general secondary education institutions is also indicated by the study performed by the University of Latvia Institute of Philosophy and Sociology: “A sociological portrait of Latvian youth”.
Dropouts. Each year there are students who leave vocational education establishments without completing a full course of study. In the period from 1 September 1998 to 1 September 1999, 13.8% of students left vocational education establishments. This same level of school leaving has existed also in previous years. Half of the early leavers (51.4%) were first year students.
A comparison of the reasons for leaving school among students having completed basic education and those having completed secondary education indicates that in both groups the main reasons are a lack of success in their studies and truancy, which could be attributed to the lack of a realistic view of abilities and interests on the part of the students. This is an issue for vocational guidance specialists, who should help young people choose the right profession. Young people who have completed secondary education most often discontinue their studies due to family circumstances and more seldom transfer to another school.
The second most frequently mentioned reason for dropout of first year students is their very low level of knowledge entering VET schools. General education programmes are considered to be completed even if marks in all subjects are 1 = very, very poor. Entering VET schools where programmes are considered to be completed if final marks are not lower than 4 = almost satisfactory, it is very hard for students to reach such a level.
For example, of all students, who enrolled in MoES VET schools in the 2000/2001, 33% had in their education documents marks in at least one subject of 3 = poor or lower.
Extra financing should be provided for remedial classes to allow students to increase their knowledge.
It is obvious that students who transfer to another school continue their education, but there are no data about what happens to the others.
Language of instruction. Teaching in vocational education establishments takes place in two languages: Latvian and Russian. In the 1999/2000 academic year the language of instruction for 12,002 students, or 25% of the total, was Russian; in 1998/99 it was 28%, but in 1995/96 it was 35%. This shows that the number of students for whom Russian is the language of instruction is gradually decreasing.
The “Law on Education” (1998) determines that starting from September 1, 2004 the language of instruction at state and municipal VET schools for all newly enrolled students is the state (that is Latvian) language. This rule has already been in force in higher educational establishments from September 1, 1999. This may cause the decrease in the number of students with Russian as the language of instruction. There are no data on how many graduates of basic schools with Russian as the language of instruction continue studies in VET school groups with Latvian as the language of instruction.
As there is still three years this rule comes in force, the situation can change in such ways: 1) this clause will be changed and state and municipal VET schools will continue to provide education in Russian; 2) the private institutions will provide education in Russian and state schools will lose a great number of students. Taking in mind the number of Russian speaking people in Latvia it will not be easy to implement Latvian as an only language of instruction in secondary education stage at state and municipal schools. This matter is still under discussions.
Student/teacher ratio.
During the 1999/2000 academic year 5,380 educational staff were employed at vocational education establishments where they taught 47,703 students. The ratio of teachers to students is 1:8.8; in the previous academic year it was 1:8.5, but in general education schools the ratio is 1:9.4. The ratio of teachers to students is influenced by the fields of music and art, where there is much individual instruction. For example, at schools under the Ministry of Culture the teacher-student ratio is 1:2.4, but at schools under the Ministry of Education and Science it is 1:12.
3.4.1.5. Access to further levels of education and employment
In the 1998/1999 academic year 11,703 students graduated from vocational education establishments; of these 8.7% continued their education at another vocational education establishment, but 17.4% enrolled in higher education establishments, and the other 73.9% entered the labour market. Of all students enrolled in higher education establishments in the 1999/2000 academic year, 6,015 had received their prior education at a vocational education establishment, which means that in the course of time almost every other graduate of vocational schools continues his or her education at the university level. Generally people who have acquired a profession work and study concurrently. According to the study by the Institute of Philosophy and Sociology at the University of Latvia: “A sociological portrait of Latvian youth”, 17% of graduates of vocational education establishments plan to combine studies at higher education establishments with work. A total of 52% of graduates of vocational education establishments plan to acquire higher education. They choose extramural or evening studies, however there are no statistics on this issue.
In October of 2000, 94,270 unemployed persons were registered with the State Employment Service (SES) of the Ministry of Welfare, including 523 year 2000 graduates of state and local government operated vocational education establishments, who made up 0.5% of the total number of unemployed.
An analysis of the distribution of unemployed graduates of vocational education establishments by region indicates that in those regions where unemployment is highest there is also the highest occurrence of unemployed VET graduates. In the city and surrounding region of Daugavpils 124 graduates of vocational education establishments have been registered as unemployed, which is 22.5% of the total. In Riga the number is 83, or 15%.
In May 2000, during the CSB Labour Force Survey additional questions about acquired education were asked to year 1990 - 1999 VET school graduates. From all graduates of the given period 28% were unemployed, 42% were employed in professions other than those for which they were qualified and only 30% worked in the acquired profession. 29% of graduates of vocational secondary education and 27% of graduates of vocational education were unemployed.
From 1997 when the changes in law “On Compulsory Social Assurance for Case of Unemployment” took place, vocational, secondary and higher school leavers are not social insured, so they cannot get benefit for unemployed. It is the main reason for the difference between number of registered unemployed and the real number of unemployed graduates.
Most employed in the acquired profession were among graduates of social sciences, law and business (58.3%), as well as teacher education (57.1%) programmes. It is likely that the overall depression in agriculture is the reason that only 15.1% of graduates of agriculture education programmes worked in the acquired profession.
33% of VET graduates have acquired additional training after graduating. Almost one third acquired additional training in computer literacy, every fifth - in foreign languages, and the same number - in their speciality. It is interesting that 81% of all those who have acquired additional training in their speciality are employed (70% in their profession and 11% in others). That indicates that there is free competition in the labour market and that new skills should be acquired to achieve more stability in the work place. Of those who attended additional training, but did not work during the reference period, in 31% of cases were trained additionally in computer literacy, 25% - in foreign languages and only 14% in their speciality. (The situation three years ago was - those who attended additional training, but did not work during the reference period in one third of cases were trained additionally in their speciality, in 18% of the cases in foreign languages, in 17% of the cases in computer literacy.) 52% of urban graduates who have acquired additional training did it in computer literacy, but 45% of rural graduates in their speciality. This shows that information technologies are not so popular in rural areas.
The main conclusion is that more and more the labour market requires employees with computer literacy and knowledge of foreign languages. VET schools should provide their students with necessary skills and knowledge during studies, but the problem is that computer specialists and foreign language teachers are in high demand in the labour market and they are not interested in low paid work for state educational establishments, so it is difficult for VET schools to find computer and foreign language teachers.
3.4.1.5. Access to further levels of education and employment
In the 1998/1999 academic year 11,703 students graduated from vocational education establishments; of these 8.7% continued their education at another vocational education establishment, but 17.4% enrolled in higher education establishments, and the other 73.9% entered the labour market. Of all students enrolled in higher education establishments in the 1999/2000 academic year, 6,015 had received their prior education at a vocational education establishment, which means that in the course of time almost every other graduate of vocational schools continues his or her education at the university level. Generally people who have acquired a profession work and study concurrently. According to the study by the Institute of Philosophy and Sociology at the University of Latvia: “A sociological portrait of Latvian youth”, 17% of graduates of vocational education establishments plan to combine studies at higher education establishments with work. A total of 52% of graduates of vocational education establishments plan to acquire higher education. They choose extramural or evening studies, however there are no statistics on this issue.
In October of 2000, 94,270 unemployed persons were registered with the State Employment Service (SES) of the Ministry of Welfare, including 523 year 2000 graduates of state and local government operated vocational education establishments, who made up 0.5% of the total number of unemployed.
An analysis of the distribution of unemployed graduates of vocational education establishments by region indicates that in those regions where unemployment is highest there is also the highest occurrence of unemployed VET graduates. In the city and surrounding region of Daugavpils 124 graduates of vocational education establishments have been registered as unemployed, which is 22.5% of the total. In Riga the number is 83, or 15%.
In May 2000, during the CSB Labour Force Survey additional questions about acquired education were asked to year 1990 - 1999 VET school graduates. From all graduates of the given period 28% were unemployed, 42% were employed in professions other than those for which they were qualified and only 30% worked in the acquired profession. 29% of graduates of vocational secondary education and 27% of graduates of vocational education were unemployed.
From 1997 when the changes in law “On Compulsory Social Assurance for Case of Unemployment” took place, vocational, secondary and higher school leavers are not social insured, so they cannot get benefit for unemployed. It is the main reason for the difference between number of registered unemployed and the real number of unemployed graduates.
Most employed in the acquired profession were among graduates of social sciences, law and business (58.3%), as well as teacher education (57.1%) programmes. It is likely that the overall depression in agriculture is the reason that only 15.1% of graduates of agriculture education programmes worked in the acquired profession.
33% of VET graduates have acquired additional training after graduating. Almost one third acquired additional training in computer literacy, every fifth - in foreign languages, and the same number - in their speciality. It is interesting that 81% of all those who have acquired additional training in their speciality are employed (70% in their profession and 11% in others). That indicates that there is free competition in the labour market and that new skills should be acquired to achieve more stability in the work place. Of those who attended additional training, but did not work during the reference period, in 31% of cases were trained additionally in computer literacy, 25% - in foreign languages and only 14% in their speciality. (The situation three years ago was - those who attended additional training, but did not work during the reference period in one third of cases were trained additionally in their speciality, in 18% of the cases in foreign languages, in 17% of the cases in computer literacy.) 52% of urban graduates who have acquired additional training did it in computer literacy, but 45% of rural graduates in their speciality. This shows that information technologies are not so popular in rural areas.
The main conclusion is that more and more the labour market requires employees with computer literacy and knowledge of foreign languages. VET schools should provide their students with necessary skills and knowledge during studies, but the problem is that computer specialists and foreign language teachers are in high demand in the labour market and they are not interested in low paid work for state educational establishments, so it is difficult for VET schools to find computer and foreign language teachers.
3.4.2. Responsible bodiesThe Law on Vocational Education passed in 1999 determines the competence of bodies responsible for the organisation of vocational education:
The Cabinet of Ministers:
determines national policy and courses of strategy in vocational education;
determines professional standards;
passes the statutes of colleges;
determines the procedure for the organisation of practical training placements;
determines the criteria and procedure for conferring state-recognised vocational qualifications, as well as the form of the certifying documents;
determines the procedure for the recognition of certificates of vocational qualifications granted by foreign institutions;
sets up, reorganizes and closes state schools by advice of MoES;
performs other functions related to vocational education named in this law and the Law on Education.
The Ministry of Education and Science:
develops model statutes for vocational education establishments;
develops and up-dates the register of professional standards;
develops and submits budget proposals for the acquisition of state budget funding, and funds the vocational education establishments and support institutions under its jurisdiction from means granted for this purpose;
drafts regulations concerning the organisation of practical training placements and other normative acts on vocational education;
organises the provision of vocational guidance as well as studies on the development of the labour market and market demand;
in coordination with local governments submits proposals for state educational establishments founding, reorganization and closing;
engages and dismisses directors of schools under MoES jurisdiction;
performs other functions related to vocational education named in this law and the Law on Education.
Within the Ministry of Education and Science, the Vocational and Continuing Education Department (VCED), as well as the Professional Education Centre (PEC) under its jurisdiction, deal with vocational education.
The VCED develops national policy and strategy in vocational and continuing education and implements it in co-operation with other state institutions. It plans, manages and co-ordinates the development of vocational education on the national level, supervises state operated vocational education establishments, co-operates with employers’ organisations and unions. The VCED harmonises vocational education policy with the requirements of the EU and participates in the development of international agreements. It is also in charge of the implementation of college level vocational education in Latvia.
The PEC organises the accreditation of vocational education establishments and programmes and the development of occupational standards, develops the content and methodology of qualifying exams, co-ordinates the activities of training and examination centres, and holds in-service training courses for vocational education teachers.
Other ministries:
develop and submit budget proposals for the acquisition of state budget funding, and fund the vocational education establishments and support institutions under their jurisdiction from means granted for this purpose;
co-operate with the Ministry of Education and Science in the development and up-dating of professional standards, in the evaluation of the quality of vocational education and in other issues associated with vocational education;
in co-operation with the Ministry of Education and Science and other state and local government institutions, organise in-service training for the teachers of the vocational education establishments under their jurisdiction;
participate in the work of state and local government, union, employers’ and other public organisations and institutions for the promotion of co-operation.
Local governments
in coordination with MoES found, reorganize and close VET schools, schools founded by local governments are under their jurisdiction;
engage and dismiss directors of local government founded schools (in coordination with MoES);
funds schools which are under their jurisdiction;
participate in the implementation of vocational education, promote the development of business activities within their territory, co-operate with employers’ organisations, deal with issues related to ensuring practical training placements for students within their territory.
The management of VET is centralized at the national level with responsibilities shared between four different ministries. The role of local governments in development of VET is weak, because the regional reform has dragged on.
The main source of funding for education in Latvia is the state budget. The education budget was 7.2% of GDP in 1999. This level of funding ensures survival of the sector, but does not promote development.
State operated vocational education establishments are under the jurisdiction of several ministries, which is why national budget funds for the management of vocational education establishments are granted separately to each ministry. The budget of the Ministry of Education and Science also covers the teachers’ salaries and social security payments of local government operated vocational education establishments, as well as subsidies to private vocational schools.
The national budget for the year 2000 includes approximately 30 millions LVL for vocational education, which is 11% of the total education budget.
The largest part of the funds (79%) is intended for regular expenses, including wages. Subsidies and grants (17%) are generally intended as subsidies and grants to persons, which are paid out to students as personal maintenance grants and reimbursement of transportation costs, because, in the year 2000 budget only 8,000 LVL are earmarked as subsidies to private vocational education establishments. Expenditure on capital investment (4%) includes both capital expenditure and investment. This budget distribution does not, of course, indicate a capacity for sectoral development, nor the ability to adapt to labour market demand.
In order to at least in some measure provide for the development of schools, it is important to find additional sources of funding, for example through co-operation with enterprises or by attracting donors, which is why a school’s capacity for development depends largely on the motivation and initiative of the school’s director.
The Cabinet of Ministers, in conformity with the Law on Education, has stated the minimum of expenses for implementation of VET programmes per one student. The Cabinet of Ministers has stated that the lowest minimum of expenses per one student per one year is 540 LVL for the following VET programmes: communication sciences, library and information sciences, law, business and public administration, shipping services. The highest minimum of expenses is set for dentistry (1522 LVL) and choreography (1409 LVL) programmes.
The Law on Education determines that founders of educational establishments are responsible for provision of funding according to these stated minimum expenses.
3.4.4. Social dialog and involvement of social partnersThe role of social partners in development of VET is growing every year.
In 1993 the National Tripartite (employers, state and union organisations) Council for Co-operation (NTCC) began to function. The state is represented by the Ministries of Welfare, Economics, Finance, Justice, Agriculture, Education and Science and Environmental Protection and Regional Development. Employees’ interests are represented by the Latvian Confederation of Free Trade Unions in which 27 sectoral and professional unions are united, and employers are represented by the Latvian Employers Confederation in which 95 employers organisations are united.
In 1999 the NTCC has established a sub-council - the Tripartite Council for Co-operation in Vocational Education whose mandate was expanded in 2000 with the establishment of the Tripartite Sub-council for Co-operation in Vocational Education and Employment.
The main functions of the sub-council are:
to review drafts of state development plans, concepts and normative acts concerning vocational education, human resource development and employment and draw up proposals for improvements;
to evaluate proposals and submit suggestions to state and non-government organisations dealing with vocational education and employment, concerning
effective use of financial resources for development of vocational education and human resources, promotion of employment;
the number of state financed students at vocational education (in regions and in total);
organisation of vocational guidance and counselling and continuing vocational training;
changes in the structure of the network of VET schools, training and examination centres (TEC), and other institutions dealing with VET;
elaboration and up-dating of educational programs and occupational standards;
organisation of graduation exams at VET schools and TEC, and awarding of professional qualifications;
organisation of licensing and accreditation.
to co-ordinate the foundation and activities of regional councils for co-operation in vocational education and employment;
to fulfil other tasks concerning vocational education, human resources development and employment.
In April, 2000 the Cabinet of Ministers of the Republic of Latvia passed the statutes of the Council for Co-operation in Vocational Education. This council includes one representative each of the Ministry of Education and Science, the Ministry of Economics, the Ministry of Culture, the Ministry of Welfare, the Ministry of Agriculture, the Latvian Union of Local Governments, the Latvian Employers Confederation, the Latvian Chamber of Commerce and Industry, the Latvian Confederation of Free Trade Unions and one representative each of the vocational education establishments under the jurisdiction of the Ministry of Education and Science, the Ministry of Culture, the Ministry of Welfare and the Ministry of Agriculture.
The Council for Co-operation in Vocational Education is a public consultative and co-ordinating institution which has been established in order to promote co-operation among state and local government, employers and union organisations in making decisions concerning national policy and planning and implementation of strategy in vocational education.
The functions of the Council for Co-operation in Vocational Education are:
In contrast to the Tripartite Sub-council for Co-operation in Vocational Education and Employment, the Council for Co-operation in Vocational Education includes also representatives from vocational education establishments.
The Professional Education Centre (PEC) deals with accreditation of VET establishments and programmes.
If a private education institution wants to start work, it must be registered in the MoES register of education institutions. Then a licence must be received from the PEC. The licence gives the right to confer a certificate which attests to graduation from the establishment in question. To confer state recognised education documents, the institution must receive accreditation of educational programmes. To pass accreditation, education programmes must meet the requirements of the Law on Education and other normative acts. If a new programme is going to be opened, it also must receive accreditation. An accreditation of the institution as a whole is required in order to organise unified qualification exams.
Curricula are developed by vocational education establishments, based on guidelines established by the VCED and PEC, which are in turn harmonised with national standards for vocational and secondary vocational education. The drafting of occupational standards is organised by the PEC. Curriculum improvement and development is based on occupational standards, because these standards indicate labour market requirements for a certain occupation In March 2001, 12 occupational standards were registered in the Register of Occupational Standards. They were from such fields: computer sciences, public catering, wood processing and manufacture, metalwork and publishing.
The standard for vocational secondary education determines
the following structure for curricula:
Secondary vocational education leading to a level 3 vocational qualification:
Relation of theory to practice is 50:50.
General subjects vs. professional subjects - 60:40.
Distribution of general subjects:
language and communications 45%,
math, natural sciences, technologies 33%,
social science and cultural studies 22%.
National graduation examinations take place in four general subjects and include a qualification exam. A programme of vocational education is considered to be completed if the student has received a final mark of not less than 4 - “almost satisfactory” - or “pass” in all of the subjects included in the programme, in the practical training activities and qualifying training placement; has passed the national graduation examinations for programmes of secondary vocational education, both subject exams and the qualification exam, with a mark not lower than 5 - “satisfactory”.
A programme of vocational secondary education is considered partially completed if the student has received final marks in all subjects included in the programme of study, has completed practical training activities and the qualifying work placement, and has partially passed the national graduation exams, that is the qualification exam, with a mark not lower than 5 - “satisfactory”.
The vocational education standard proscribes the following
content for programmes of study:
Vocational education, leading to a level 2 vocational qualification:
Relation of theory to practice is 35:65,
General academic subjects vs. professional subjects - 60:40,
Distribution of general subjects:
language and communications 45%,
math, natural sciences, technologies 33%,
social science and cultural studies 22%.
The national graduation exam consists of the qualification exam.
A programme of vocational education is considered completed if the student, following completion of basic education, has undergone a programme of vocational education and has received a final mark in all subjects studied within the programme, in practical training activities and the qualifying work placement; has passed the national graduation exam for the vocational education programme, that is, the qualification exam, and has received a mark not lower than 5 - “average”.
Vocational education in Latvia is regulated by the following laws passed by the Saeima (parliament):
The Law on Craftsmanship (1993), determines the basis for education in the crafts professions (including the apprenticeship system);
The Law on Education (1998) regulates the education system as a whole, determines the rights and responsibilities of the state, local governments, public organisations, professional associations, private persons, educational establishments, parents and teachers, as well as the types and levels of education and the types of educational establishments.
The Law on Vocational Education (1999) determines:
In 1999 - 2000 the following normative acts concerning vocational education were passed:
Cabinet of Ministers Regulations No. 302 (1999) “On the procedure for licensing general and vocational education programmes to be implemented by education establishments”, which determine the process by which the Ministry of Education and Science issues licences to education establishments for the provision of general education, vocational basic education, vocational education, vocational secondary education, first level higher vocational education, and continuing vocational education;
Cabinet of Ministers Regulations No. 400 (1999) “On the procedure for accreditation of general and vocational education programmes and establishments.” These regulations determine how education programmes for the achievement of general basic or secondary education, basic vocational education, vocational education, vocational secondary education or a state recognised qualification of level 2 or 3, as well as education establishments that deliver these programmes, are to be accredited.
Cabinet of Ministers Regulations No. 418 (1999) “On the procedure for the certification of directors of education establishments”. These regulations determine the process and goals of attestation of directors of basic vocational education and vocational secondary education establishments operated by state and local governments, as well as the categories of professional qualification to be granted and related salary bonuses.
Cabinet of Ministers Regulations No. 41 (2000) “On the procedure for conferring documents which attest to the acquisition of vocational education and qualifications as well as documents concerning the partial completion of an accredited programme of vocational education”. These regulations determine what kinds of certificates of vocational education and qualifications are to be issued in Latvia, and determine their form and content.
Cabinet of Ministers Regulations No. 73 (2000) “Regulations concerning teachers’ wages” determine a new procedure for the payment of teachers’ salaries.
Cabinet of Ministers Regulations No. 211 (2000) “Regulations on the national vocational secondary education standard and the national vocational education standard”. These regulations determine national standards for vocational education and vocational secondary education.
Cabinet of Ministers Regulations No 303 (2000) “Regulations on minimum expenses per one student for implementation of VET programmes.” These regulations determine minimum expenses per one student per one year for implementation of basic vocational, vocational, vocational secondary and first level higher professional education programmes.
Cabinet of Ministers Regulations No 304 (2000) “Regulations on occupational standards”. These regulations determine that the MoES is responsible for the register of occupational standards.
Cabinet of Ministers Regulations No 347 (2000) “Regulations on requirements for education and professional qualification of teachers.“ Concerning VET these regulations will be in force from September 1, 2004.
Cabinet of Ministers Regulations No 383 (2000) “Regulations on vocational qualifications, what can be acquired by passing unified qualification examinations”. These regulations name level 2 and 3 vocational qualifications what can be awarded only by passing unified qualification exams. They will be in force from September 1, 2001.
MoES Instruction No. 703 (1999) “On the confirmation of the Classification of Education of the Republic of Latvia”. The task of the Classification of Education of the Republic of Latvia is to establish a framework for the creation of a register of education programmes and to ensure the establishment of a unified statistical data base on education as well as a basis for comparison with the 1997 UNESCO International Standard Classification of Education and statistical data of other countries.
MoES Instruction No. 57 (2000) “Statutes on qualification exams for vocational education in industrial and crafts professions”. The statutes describe the organisation, process and funding of qualification exams and determine the range of students who are eligible to sit these exams.
3.4.7. Weaknesses, strengths and future government priorities for the IVET system
Strengths:
Legislation and normative acts are worked out according to EU requirements. This is a stable foundation for elaboration of education content meeting the demands of the labour market and for assurance of education quality.
IVET system is opened to all classes of society. It gives opportunity to youngsters more quickly become independent. Student incentives (dormitories, personal maintenance grants) involves to system students from low-income and vulnerable families. Remedial classes take back to educational system those who by any reason have dropped out.
Active and fanatical people work at VET schools, although the funding from state is low, they seek the opportunities for development. Part of schools participates in different international programmes obtaining new experience, methodologies and equipment. Different kinds of entrepreneurship are used to own extra money for development.
The cooperation with social partners is growing. Becoming economically more stable they can devote more attention to VET development. Employers begin to acknowledge that trained employees cannot appear of themselves.
Weaknesses
The IVET institutions are under different jurisdiction, and there is a lack of co-ordination between state institutions involved in VET. It hinders the process of reforms, as it is difficult to approximate opinions of different authorities, the state financing is not used goal-based.
The financing system of VET does not correspond to the demands of a modern VET system. The low salaries force teachers to seek for job outside educational system. The lack of good teachers and trainers is becoming a great problem for VET.
Government future priorities:
In the 1998 MoES adopted the Education Development Strategic Programme 1998 - 2003. In 2000 the MoES has worked out a new draft of the Education Development Programme. It states such priorities for development of VET:
3.5. Modernisation of continuing vocational training (CVT)
In order to move toward an open and democratic society, life long learning opportunities must be provided for adults, so that they may acquire experience that will allow them to evaluate situations from all aspects and act freely and appropriately. Today people have understood that continuing education offers a new level of freedom, both in terms of self-expression and in terms of guaranteed social status. This has been proven by the constant increase in demand for continuing education.
3.5.1. CVT provision (from the supply side perspective)
In 1999, according to data of the Ministry of Education and Science, 210,777 participants attended adult continuing education programmes (201,910 in 1998). All together 6,044 training programmes were on offer (3,012 in 1998). The greatest number of students is ages 18-40. Courses of short duration are most popular.
As can be seen, the most programmes are offered in social sciences - these are programmes having to do with entrepreneurship, for example, bookkeeping and taxes, real-estate brokerage, changes in legislation.
Continuing vocational education programmes are offered by state and local government as well as private providers and non-government organisations. A total of 390 education establishments in Latvia provide continuing education, of these 72 are Ministry of Education and Science licensed vocational and continuing education establishments.
The main providers of continuing education are:
The largest providers of continuing education have united in the Latvian Association of Adult Education and the Latvian Association of Adult Economic Education.
Some continuing education courses are also provided through distance learning.
3.5.2. CVT provision (from the demand side perspective)
In 1999 by data of CSB the greatest number of enrolees were in such adult education programmes: transport services (which include driver courses); emergency aid (it is compulsory for new drivers); economic education (it includes different business courses); teacher training and language courses.
Each year there is an increase in the number of persons involved in continuing education. By data of CSB the number of enrolees in adult education in 1996 was 100800 (8% of economically active population), in 1999 - 210777 (17,5%). But the data of CSB show only the approximate number of enrolees, as continuing training not always can be separated from practical work. Courses are most often attended by persons with a higher education background who are motivated not to lose their professional skills and continuously acquire new knowledge (see fig 12.).
It is interesting that according to the results of the 1999 Central Statistics Bureau Labour Force Survey, 47% of all job seekers had an incomplete basic, a basic or a general secondary education, that is, they had no professional background. However, this group represents only 28% of the total number of persons who are involved in continuing education programmes. While in November of 1999, 9.7% of job seekers had completed higher education, and among those who attended continuing education programmes 35% were holders of higher education diplomas. This indicates that more must be done in order to raise the general level of education of the population, because people of no particular professional background have difficulty becoming involved in continuing education, as they have no skills to up-grade and the learning process itself causes them difficulty.
3.5.2.1. Participation of employed in vocational training sponsored by enterprises
CSB in cooperation with Leonardo da Vinci programme is carrying out survey on vocational training sponsored by enterprises. The results will be available approximately in March, 2001.
Since there are no normative acts to stimulate employers to sponsor the continuing education of their employees, then it is currently up to the free will of employers, and each decides individually how much and whether at all to invest in the continuing education of staff.
3.5.2.2. Participation of unemployed in vocational training
The vocational training and retraining of registered unemployed is financed by the state and organised by the State Employment Service (SES). To ensure selection of the most efficient and high-quality providers of vocational training and retraining for the unemployed, calls for tender are organised which are open to state (43% of participants) and private (57% of participants) education establishments. In order to compete for state funding the education establishment must be accredited.
Compared to 1998, in 1999 there has been an increase in the number of training establishments which participate in calls for tender, as well as an increase in the number of programmes offered.
In 1999 29,395 (4.9 thousands more than in 1998) unemployed persons wished to acquire a new or to raise an existing qualification. In the limits of state funding only 33% of them were supplied with training.
Since training and retraining can only be provided for part of the unemployed who wish to learn, a new procedure for opening classes was implemented in 1999. Prior to the beginning of the course, the unemployed persons’ professional knowledge and suitability to the chosen profile was evaluated using tests. According to test results, specialists from training establishments and the SES selected the most suitable candidates for participation in classes.
In 1999 the largest number of unemployed persons was trained in the following profiles in demand on the labour market: 788 bookkeepers, 653 dressmakers, 633 computer operators, 526 sales clerks, 509 cooks. In total in 1999 13,088 unemployed persons graduated training courses and 50.6% of them have found employment.
Almost half of the unemployed (47%), who were trained through the SES had no professional background, 52% were in the age group 30 to 49, and 25% in the age group 18 to 25.
In 1999 the number of long-term unemployed persons involved in vocational training decreased by 10%. As such people have difficulty to adapt to the new economic conditions, it is useful to send them to vocational training only after enrolment in other active employment measures (e.g., job seekers clubs or paid temporary public services).
3.5.2.3. Participation in individually motivated vocational training (adult education)
Each year the number of individually motivated participants of continuing education programmes increases, which can be seen from the increase in the proportion of participants’ fees in the funding of continuing education.
Participation in individually motivated continuing education in large part is related to participation in personal development or hobby courses. In Latvia there are 6 folk schools operating in rural regions with the goal of providing rural residents with a well-rounded education. The folk schools try to continue the traditions established in the period of the first Republic, i.e. the development of civic education.
In Riga and other large cities there are many training centres that specialise in providing certain skills, for example, language centres, computer centres, etc. As they are interested in attracting as many participants as possible, the courses are offered both in the mornings and in the evenings, and on week-ends, and it is possible to arrange individual tuition at a convenient time - it all depends on the participant’s financial capacity.
The fact that state funding is mainly expended on retraining of the unemployed leads to the commercialisation of continuing education, and only persons who are capable of paying for their education can participate in individually motivated continuing education, while the rest must wait until they become unemployed.
Since a law on adult education (note: adult education in the Latvian context is understood as any education pursued by adult persons, and is not equated to literacy and numeracy courses, as in adult basic education) has not yet been passed, the responsibility of institutions is not yet legally defined.
The Law on Education prescribes that local governments organize adult education. There are Adult education centres in every region.
Professional associations, chambers are responsible for continuing education of their members, as they deal with rights for practicing in defined occupation (issuing of certificates etc.).
Ministry of Education and Science issues licences and accredits the institutions of continuing vocational training which can award officially recognized vocational qualification.
Ministry of Welfare is responsible for training of unemployed and disabled.
The coordination between different authorities is weak.
Funding for adult education is increasing annually. In 1999 it was 11,568,886 LVL, which was an increase of 3%, compared with 1998. State budget funds make up approximately 48% of all funding for adult education; state funds are spent mostly on training for the unemployed.
In 1999, as compared to 1998, funding for continuing education from employers has decreased, while funding from participants has increased, which means that individually motivated adult training is increasing, because employers give preference to already trained staff. Employers do sponsor further training for their employees, which is in the interests of the enterprise, but they do not wish to train persons who have no basic knowledge.
3.5.5. Social dialogue and involvement of social partners
Co-operation between the government and the public is co-ordinated by the Tripartite Council for Co-operation in Vocational Education and Employment (see section 3.4.4).
Since legislation does not assist employers who make efforts to invest in continuing education, then employers are more interested in training their current staff than in development of the system as a whole.
Professional associations are interested in the continuing education of their members and in the evaluation of their skills, as they are interested in the development of an open and fair labour market.
The educational establishments are responsible for curricula development.
MoES have developed requirements for curriculum, at the beginning of 2001 they are handed in the Cabinet of Ministers for approval. The duration of CVT programmes must be 1/3 of the same level full- time vocational programmes. The unified qualification exams that lead to level 2 and 3 vocational qualifications will be introduced starting from September 2001. They will be unified for both IVET and CVT graduates.
3.5.7. Assessment and certification of the skills (including access to formal qualifications and diplomas)
An examination of curriculum content and skills testing in continuing education must take into account that adult education includes both formal and informal education. Formal education leads to the conferral of a state recognised diploma. Informal education includes both courses aimed at meeting labour market needs, following the latest technologies, and hobby courses. The greater part of continuing vocational education is precisely informal education, which ensures that persons do not lose their qualifications and acquire new knowledge.
Only programmes of continuing vocational training which have been accredited by the Ministry of Education and Science lead to a certificate of vocational qualification. The accreditation procedure evaluates the quality of implementation of the vocational education programme.
Officially recognised education in a crafts profession can be obtained by taking a journeyman’s or master craftsman’s qualifying exam at the Latvian Chamber of Crafts (LCC). Based on the 1993 Law on Craftsmanship the state has given the LCC the right to evaluate the level of vocational qualification of craftsmen in 159 vocations and to confer a document attesting to the corresponding level of professional knowledge. Qualifying examinations are organised and implemented by the professional associations within the Latvian Chamber of Crafts.
If a journeyman has worked for 5 years in his trade, then he can apply for a master’s examination, and upon passing the examination (creation of a masterpiece and a test of theoretical knowledge), can receive a master craftsman’s diploma. By mid-year in 2000 the LCC had also conferred 30 honorary master craftsman’s diplomas, which are bestowed on persons who have worked over 40 years in their trade and have made significant contributions to the training of apprentices.
The Law on Education (in force as of 1 June 1999) chapter 46, article 3 states: “The content of adult education programmes, the procedure for developing and approving these programmes, standards of adult education, funding and other issues are regulated by the Law on Adult Education and other laws” (note: adult education in the Latvian context is understood as any education pursued by adult persons, and is not equated to literacy and numeracy courses, as in adult basic education). The Law on Adult Education is yet to be passed, although the draft of this law was already submitted to the Saeima (parliament) in 1998. Currently adult education is regulated by the following laws: the Law on Craftsmanship (1993), the Law on Employment (1993) and the Law on Vocational Education (1999).
3.5.9. Weaknesses, strengths and future government priorities in CVT
Strengths:
Weaknesses:
There is an emerging trend of CVT commercialisation. So it can be considered that access to CVT is not equal for all. The only possibility for needy population to participate in CVT is become unemployed.
The MoES has worked out a draft Education Development Programme 2000 - 2004. One of its objectives is the development of society through ensured opportunities for life long learning.
The main measures in order to realise this objective are:
3.6. Links between IVET and CVT
The links between IVET and CVT are very weak. IVET establishments are now interested in offering continuing education programmes, but especially in Riga different private institutions have outrivaled state IVET schools, as they could more quickly respond to the demands of the market. Continuing vocational education programmes are offered by 23 IVET schools, of which only 4 are located in Riga. That means in rural areas IVET schools are a type of cultural and education centre.
3.7. Vocational guidance and counselling
Vocational guidance and counselling are provided by the State Employment Service, the Career Counselling Centre, and certain private enterprises.
Vocational guidance and counselling for the unemployed is provided by the State Employment Service. The SES also organises Job-seekers’ Clubs, an active employment measure, the goal of which is to use psycho-social rehabilitation to promote initiative, capacity for re-training and psychological adaptability to new labour market conditions, as well as to improve the readiness of the unemployed to meet labour market demands. Each year more and more unemployed persons participate in JC activities.
The following group activities were organised with in the framework of JC in 1999:
Other activities were attended by 13,737 unemployed: 2,900 unemployed attended seminars with employers, local government representatives, SES and State Social Insurance Agency staff; 6,432 unemployed attended lectures on career decisions and stress; 4,414 unemployed attended individual counselling sessions with psychologists, lawyers and clerks.
Career guidance for young people is provided by the state non-profit organisation the Career Counselling Centre. The type of help most often sought for and provided is the following:
consultations on education and career choice - selection of the most suitable field of activity based on assessment of the client’s interests and aptitudes;
information on opportunities to acquire a chosen profession in various education establishments;
acquisition of a structured profile of interests and abilities which helps people make a conscious independent career choice;
evaluation of levels of professional qualities important to a certain profession and suitability of the client for that profession;
psychological support;
consultations on different career paths and development of action plans.
The total number of clients served by the Centre in 1999 was 16,067 (an increase of 870 clients over 1998); among the clients were 10,174 students of graduating classes in basic and secondary school, 4,104 registered unemployed persons, 284 students of vocational schools, 193 students of higher education establishments, 376 unemployed job-seekers, 570 employed and 366 parents of students.
Seventy-eight percent of the unemployed persons (or 20% of the total number of clients) arrived at the Centre following orders of SES inspectors, but the rest sought help independently.
Of all students of general and vocational schools and higher education establishments who were clients of the Centre, 66% were girls and 34% were boys.
In April and May of 1999 the Career Counselling Centre performed a survey of 9th and 12th grade students concerning career choice. A total of 1,340 students from various urban and rural schools were surveyed.
On average, 55% of the students surveyed noted that they need help in choosing a career, and 77% of students need information on education establishments, furthermore this assistance is required most often by rural residents. Students in the 9th grade most often wish to receive information on education establishments and professions, but 12th grade students want to learn about education establishments and the labour market. In the career decision process, girls most often tend to analyse their personality and their level of knowledge, while boys tend to enquire about actual work situations and conditions.
In 1999 assistance with finding employment was provided by 43 enterprises (27 were registered in 1999, of these 21 are entitled to assist in finding employment in Latvia, while 6 are entitled to provide assistance in finding employment abroad). As of 1999 the registration of enterprises providing assistance with finding employment is regulated by the normative act passed by the Ministry of Welfare: “The registration procedure for legal entities wishing to provide services to residents in the form of assistance in gaining employment”. A decrease in the number of registered firms has been observed, for example, in 1996 there were 73, in 1997 - 63, in 1998 - 58 and in 1999 - 43. This can be explained by the implementation of the new registration procedure and reporting and control procedures. In 1999, 29 registration certificates were annulled based on failure to meet responsibilities of legal entities involved in providing assistance to residents in finding employment.
Internet employment exchanges are becoming more and more popular.
At the end of 1999 there were 39,941 active small and medium enterprises (not including peasant farms) with up to 250 employees in Latvia. That makes 99.3% of the