3.3. Human resource development policies and programmes
Recent trends and policies relating to developing human resources in the region mainly reflect the impact of two developments: globalization and the Asian crisis. As elaborated in the ILO's World Employment Report 1998-99, demand for skilled labour has been rising as a result of globalization, and technological changes have led to changes in work organization. Globalization implies international competitiveness; firms have to compete not only on the basis of price but also on the basis of quality. Pressure of competition has prompted firms to achieve greater price competitiveness, greater flexibility, enhanced quality, quicker customer response, and the ability to introduce new products and services more quickly. And since the quality of human resources is an important determinant of competitiveness in all these respects, much greater attention is now being paid to developing human resources in most countries of the region. The countries of East and Southeast Asia, which had long been pursuing outward-oriented growth strategies, had of course all along emphasized human resource development. However, the economic crisis has underlined the need to reorient human resource policies in these countries, with a view to focusing on training as a means of providing a social safety net to fight social exclusion at a time of massive enterprise restructuring.
Even in the advanced industrialized economies, rapid technological changes now require individuals to learn and relearn skills throughout their working lives. In Australia and New Zealand, the vocational training system benefits from the mechanisms in place for continual review of the system, with a view to ensuring its relevance and effectiveness. The basic approach followed is that greater control should be in the hands of the users and not of the training providers. The overall responsibility for managing vocational education and training in Australia rests with the Australian National Training Authority
C a tripartite body chaired by employers. In Japan, the enterprises have long been seen as promoters of learning and training through lifetime security of tenure linking pay to commutative performance rather than immediate job function, and a performance system which values seniority. These trends are now changing, although only gradually.The recent economic and financial turmoil in the East and Southeast Asian countries has brought the importance of the relationship between education and training and employment into much sharper focus. At the same time, the first problem to contend with in this context is the resource constraint. Resources for education and training are scarcer in the countries worst affected by the crisis. This may conceivably have a negative impact on formal training institutions since lack of investment in new equipment and raw materials is likely to contribute to deterioration of training quality and obsolescence of vocational and technical training programmes.
Depressed economic activity could therefore negatively affect public and publicly subsidized training in many countries. In view of the varying severity of the impact of the crisis, the impact on training, both in terms of planning processes and implementation, is also likely to be uneven. National training authorities are making deliberate attempts to gradually shed the functions of training provider and are encouraging a greater role of private agencies in providing training. Increased attention is also being paid to encouraging on-the-job training, enterprise-based training and apprenticeships, which can increase the total training volume at the national level without massive public financial involvement.
The unemployment generated by the crisis has forced policy makers to pay increased attention to efficiency and effectiveness of existing training systems; in particular, questions have come to the fore on the relative priority to be accorded to targeting training and retraining programmes at those laid off as a result of the crisis as against pre-employment training programmes for new labour force entrants. Despite this problem of prioritization, countries in the region are reorienting their training systems to enhance the effectiveness and relevance of programmes. The Philippines and Singapore provide good examples of the types of approach to human resource development that are being considered in this context.
Singapore in the early 1960s faced almost the same conditions of high unemployment and poor growth prospects as those which confront many developing countries in the region today. The process of industrialization began in Singapore with labour-intensive manufacturing industries. This resulted in large numbers of jobs and a tight labour market by the early 1970s, providing the impetus for a focus on human resource development policies. Significant changes were introduced in the vocational and technical education system, including the establishment of joint government-industry training centres and institutes.
Effective coordination of the various agencies involved in planning and implementing human resource development policies and programmes has been the hallmark of the Singaporean system. The education and training systems are constantly reviewed with a view to ensuring the relevance of curricula. The Government also encourages bringing in expatriate experts to upgrade the quality of the training provided.
The Philippines, on the other hand, has recently carried out a complete overhaul of its education and training systems. Two major agencies were created in 1994 on the recommendation of the Congressional Committee on Education: the Commission on Higher Education to oversee higher education, and the Technical Education and Skills Development Authority (TESDA) to formulate and implement a national policy on vocational and technical education. The creation of TESDA was intended to address the organizational problems resulting from the existence of a large number of agencies in technical and vocational education (1,235 post-secondary technical and vocational institutes, of which 897 were private schools enrolling 76 per cent of students). TESDA was provided with powers to restructure the technical and vocational education system through the merger or phasing out of technical and vocational schools and the enforcement of standards and curricula. Establishing and administering a system of accreditation and allocation of resources among the various vocational schools and institutes are among TESDA's important functions.
While the earlier skills training system was part of national efforts in attaining the status of a newly industrialized country before the turn of the century, there is now growing emphasis on upgrading workers
= skills as the vehicle for the Government's poverty alleviation programmes. However, industrialization remains an element of national strategy for growth. That such a strategy would also be an adequate response to the challenges of the economic crisis seems clearly accepted in policy circles. Targeted training programmes for retrenched workers with a view to enhancing their employability is also one of the recent measures initiated by the Philippines.Indonesia and Thailand are two countries seriously affected by the crisis, Indonesia more than Thailand. In both these countries, the usefulness of labour-intensive employment promotion strategies for mitigating the effect of large-scale retrenchments is being seriously considered. As a result, greater emphasis is now being placed on skills training programmes for employment in rural areas and for self-employment.
In Thailand, a recognition that the
Atrainability@ of workers is affected by their low levels of general education has led to increasing attention being paid to educational attainment. By 1991, 83 per cent of the labour force had six years or less of elementary education, only 10 per cent had completed secondary education, and between 3 and 4 per cent had vocational or university education. Thailand's capability to upgrade from existing largely labour-intensive industries to high-technology industries is constrained by the severe shortage of educated and skilled workers. It has been estimated that by the year 2000, Thailand will have 70 per cent of its labour force with only primary education or less. One of the major initiatives currently being considered is decentralization of the education system encompassing the whole range of institutions C from village schools to universities. Decisions on their management and financing (now being made in Bangkok) are likely to be handed over to the institutions and communities they serve.Indonesia made impressive progress in education and training during between 1968 and 1993. However, the quantitative achievements raise questions about the quality of education and training programmes. The inability of the education and training system in Indonesia to provide sufficient skilled workers can be seen from the increasing role of expatriates. While the number of occupations closed to expatriates increased from 1,050 in 1980/81 to 1,692 in 1990/91, so did the occupations open to expatriates (from 1,298 in 1980/81 to 2,636 in 1990/910. There is now a much greater emphasis on enhancing quality. Increased cooperation between technical schools, universities and industries is being promoted. The Government's overhaul of the training system is aimed at decentralizing the administration to provincial level. Efforts are also being made to involve employers more closely in the planning and implementing training programmes and to place greater emphasis on enterprise-based training.
In terms of efficiency and effectiveness of its skills training system, the Republic of Korea ranks high in this group of countries. A strategy of export-oriented growth resulted in the transformation of an agrarian economy into a developed economy with a steadily increasing demand for skilled workers. This was met through an effective collaboration of public and private agencies in providing skills training. Skills upgrading is targeted at three levels: trainees, trainers, and supervisors or managers. Craft training is the main task of the vocational training system and is offered by public training institutes, in-plant training centres and other authorized organizations. Problems, however, have been emerging. The effectiveness of the enterprise-based training system has increasingly been called into question, and a perception is growing that the levy-rebate system has not been very effective in increasing in-service training. The Asian crisis is viewed as an opportunity to further enhance the skills and productivity of Korean workers so as to lay claim to a bigger share of the world market. An interesting development is the use of
Atraining@ as an important element in the collective bargaining agreement, as was the case with the Korean motor manufacturer, Hyundai. It was agreed that the 1,261 workers placed on 18 months= unpaid vacation would be entitled to receive job retraining for the last six months.The Malaysian education system, like that of Singapore, was a legacy of British colonialism. The country's economic success had, as in Singapore in the 1970s, resulted in a tight labour market. The Malaysian response had also been fairly similar to that of Singapore. The inflow of foreign workers was allowed, greater emphasis was placed on education and training, and greater efforts were made to upgrade and restructure the economy. With a view to encouraging firms to engage in training and retraining their employees, fiscal incentives were provided. From 1995, employees pursuing further education in science and technology, and in vocational courses, were allowed tax exemption on the fees paid.
The Malaysian Second Outline Perspective Plan (1991-2000) places emphasis on international competitiveness. In terms of human resource development policies, the Plan emphasizes enhancing the responsiveness of training institutions to market needs, minimizing mismatch of skills and developing a multi-skilled, innovative and adaptive workforce. The importance of meeting labour market demands, especially in respect of newly emerging occupations, has also been stressed. Successful administration of the Human Resource Development Fund has been an important instrument in achieving these objectives. With much greater focus on value-added products, tertiary education opportunities are being expanded and
Atwinning@ programmes with well-established overseas universities have been initiated.The transition economies vary widely in level of development. The initial conditions, nature and pace of economic reform, and the length of the reform period, also differ in these countries. China has been witnessing a very high rate of growth for a number of years and its scientific and technological capability is well recognized. Vocational training takes a variety of forms involving formal and informal pre-employment training and retraining as part of in-service training. A distinguishing feature of in-service training in China is the close linkage between training institutions, industry and enterprises. This ensures relevance of the training imparted to industries and enterprises, thereby increasing the efficiency of such programmes.
The efficiency, effectiveness and relevance of the training system have nevertheless been major concerns of policy planners in China. These aspects assume greater significance when training delivery is considered in the context of regional differences (e.g. between coastal towns and provinces and parts of central China). It has also been recognized that the transition process has increased the vulnerability of certain groups
C women, persons with disabilities, ethnic minorities, older workers and rural workers C and that targeted skill upgrading programmes are necessary for these groups.The transition economies of the Greater Mekong subregion (Cambodia, Lao PDR and Viet Nam) realize the importance of establishing skill standards at the country level, and testing and certification systems based on those standards. There is also a recognition of the need for common regional standards which could play an important role in supporting and facilitating the movement of skilled labour amongst the Greater Mekong countries to meet labour market shortages in certain occupations.
In South Asian countries , the reform of the education and training system has been an on-going process, albeit slow. However, the accelerated pace of structural adjustment, especially affecting the organized sector, to meet the challenges of globalization, has added an element of urgency. The fact that the formal sector has been dominated by the public sector, whose importance is gradually being eroded by restructuring programmes, has spurred efforts to enhance effectiveness and relevance of education and training. Improving the higher education system is also being targeted, with a view to meeting the needs of high-technology and business services. Such a move, however, has once again sparked off the debate on public subsidies to higher education, seen by some as an unjustified subsidy to the elite.
However, a major problem in the South Asian economies is the lack of adequate resources needed for improving the quality of human resources. The three most populous nations in this cluster (Bangladesh, India, and Pakistan) should make considerable efforts to meet the backlog in primary education. Fewer than 10 per cent of new entrants to the labour force in these three countries possess any formal training. The issue of greater access to education, especially to secondary education, to meet social demands and the requirements of an industrializing economy, must be seriously tackled. Enhancing women's access to education and training with a view to enabling them to make their rightful contribution to national growth and development is also a priority consideration in these countries.
As far as skills upgrading of the workforce is concerned, the system followed in these countries is
Asupply-led@ as opposed to demand-driven in the more developed Asian economies. The number of schoolchildren who receive vocational education is also extremely low as compared to the East and Southeast Asian countries C 1.2 per cent in South Asia against 43 per cent in the Republic of Korea and 28 per cent in Japan. Training systems in the South Asian economies suffer from limited flexibility, poor curricula and weak links with industry. One of the more serious flaws is that training is mostly focused on the organized sector. Given the capacity of these sectors to provide only limited employment opportunities and the fact that most of the labour force is involved in agriculture and the informal sector, this explains the forceful demand for improving the relevance and effectiveness of national training systems.The response of the national authorities in several South Asian countries has led to several innovative approaches, and a conscious effort is being made to provide a supportive environment which fosters skills upgrading. The Indian Government's policy paper on
ATechnology Vision B 2000" aims to strengthen indigenous efforts in science and technology. The quantum leap made by the software industry in India demonstrates the success that can be achieved. Ensuring a role for the private sector in managing over 2,000 industrial training institutes is another initiative which, if successful, could herald a new process of public-private collaboration in providing a dynamic system in the subregion. In Bangladesh, the use of mobile instructional units to introduce entrepreneurial skills in the informal sector is equipping unemployed youth with practical skills to start their own businesses.In Pakistan, employer-supported Skill Development Councils are being encouraged to identify industry's skill needs in collaboration with the national vocational training system, while in Nepal the formation of the Council for Technical Education and Vocational Training is aimed at coordinating employment-related training needs in the country. Nepal has also taken steps to enhance productivity in the rural sector by adopting community-based training approaches for rural gainful employment. Sri Lanka is taking major steps to reorganize the skills training system with the National Vocational Trade Testing Programme, collaborating with government training providers to enhance the credibility of the system.
The Pacific island economies are characterized by a limited landmass, a young and dispersed population, a limited resource base, and vulnerability to natural calamities. The high level of school dropouts in these countries is a matter of concern. The UNDP's Pacific Human Development Report (1994) points out that low skill levels are endemic across the Pacific and form a major obstacle to accelerated economic growth and improved human resource development. As in other countries of the region, the growing challenge of globalization and international competitiveness is compelling the Pacific island countries to develop a workforce which is more skilled, efficient and productive. Serious attempts are now being made to ensure that education and training systems are responsive to the needs of the private sector. Fiji and Papua New Guinea are two countries which are paying much greater attention to their skills upgrading programmes. Fiji is considering the issue of skills upgrading in a comprehensive manner by tackling human resource development for employment promotion, through upgrading workers
= skills, and developing small enterprises, cooperatives and tourism.Other issues under review in the Pacific island economies are effective coordination of planning and delivery of training programmes, optimal utilization of public funds and promotion of employment in rural areas. These economies are also attempting to pool available resources from the ADB and donor countries (including Australia, Japan and New Zealand) so that, instead of superficially tinkering with education and training systems, substantive structural reforms may be initiated in the medium term.
The emerging problems are fairly clear from this brief review. In a globalized context, skill requirements are not only growing but are also constantly changing. Coping with structural changes and economic downturns also requires rapid reskilling of adversely affected workers. In this context, a training system with built-in flexibility is a vital component of an employment- intensive growth strategy. Given this requirement, two problems are being encountered virtually everywhere. The first is finding ways of making a training system flexible enough, with wide coverage, and the second is raising adequate resources for establishing and sustaining a training system of this type.
