SABER: Systems Approach for Better Education Results SABER-Workforce Development Chile Maria Cecilia Zanetta 29 May 2012 Washington DC THE WORLD BANK

How has Chile’s WfD system evolved? Summary: Steady, gradual progress in the development of WfD System between 2000 and 2011 in a manner consistent with Chile’s market economy Highlights Incremental improvements in terms of WfD System Strategy and Delivery and Oversight The establishment of a labor skills certification system was the most notable single achievement Macro context Sustained export-led economic growth from the mid-80s onwards, but slowing down Enhancing labor productivity is a challenge Persistent income inequality—i.e., Gini coefficient of 0.52 in 2009. latent > emerging > established > advanced Strategy Oversight Delivery 2000 2011

Strategic Framework Close-up: What were the biggest changes? Growing consensus on WfD system based on lifelong learning as a way to: Enhance labor productivity Achieve more equitable growth What moved the scores? Sound sector work to inform WfD policies Progress toward the institutionalization of WfD stakeholder participation What held back progress? Lack of a cross-sector WfD perspective 1. Direction 2. Demand-led 3. Coordination 4. Pathways 5. Funding 6. Standards 7. Relevance 8. Excellence 9. Accountability Strategy Oversight Delivery 2000 2011

System Oversight Close-up: What were the biggest changes? Robust legislation is now in place to enhance quality of education at all levels What moved the scores? Newly established accreditation system at the post-secondary level Newly established labor skills certification system Expanded use of financial incentives to promote WfD objectives (e.g., quality, equity) What held back progress? Lack of sustained leadership to promote cross-sector WfD policies, such as vertical and horizontal integration of WfD pathways 1. Direction 2. Demand-led 3. Coordination 4. Pathways 5. Funding 6. Standards 7. Relevance 8. Excellence 9. Accountability Strategy Oversight Delivery 2000 2011

Service Delivery Close-up: What were the biggest changes? Only marginal improvements WfD Delivery remains an area in need of significant attention What moved the scores? Substantial efforts to enhance access to information on WfD outcomes among prospective students and trainees What held back progress? Structural disconnect between employers and training content, particularly at the post-secondary level A stronger emphasis on performance-based M&E is needed in all WfD agencies 1. Direction 2. Demand-led 3. Coordination 4. Pathways 5. Funding 6. Standards 7. Relevance 8. Excellence 9. Accountability Strategy Oversight Delivery 2000 2011

What have we learned from Chile’s experience? Challenges faced Next generation of policy reforms requires substantial political capital: Revamping the publicly financed training system Articulating WfD education and training as well as prior learning to build a true lifelong learning WfD system More aggressive enforcing of WfD standards, particularly quality Ensuring relevance of WfD outcomes Lessons learned A decentralized, demand-driven WfD system such as Chile’s has many advantages, including an effective allocation of resources, and a diverse universe of private WfD providers However, imperfect information and other market failures require public sector intervention to ensure, for example, quality WfD outcomes Also, public sector intervention is also necessary to address structural inequalities in access to quality WfD services