Qualified Labour Force and VET: Key Factors for Turkey’s Competitiveness
Sustainable Competitiveness: Supportive Business Environment for Industry
Istanbul Chamber of Industry – 7th Industry Congress
Arjen VosIstanbul, 4 December 2008
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Content of presentation
1. Global Competitiveness Indexes
2. EU benchmarks and labour market trends
3. Challenges for Turkish education and training
4. ETF support to Turkey
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I. Global competitiveness indexes (1)
International Institute for Management Development (IMD) Analyzes the ability nations to create and maintain an
environment in which enterprises can compete 55 economies Four pillars, 20 sub-sectors, 323 criteria
– Economic Performance – Government Efficiency – Business Efficiency – Infrastructure
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Breakdown of competitiveness (IMD)
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Global competitiveness indexes (2)
World Economic Forum (WEF) The rankings are drawn from a combination of publicly
available data and the results of the Executive Opinion Survey including 11,000 business leaders
125 economies The Global Competitiveness Index measures the set of
institutions, policies, and factors that set the sustainable current and medium-term levels of economic prosperity
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Business sophisticationInnovation
Higher education and trainingMarket efficiencyTechnological readiness
InstitutionsInfrastructureMacro-economyHealth and primary education
Breakdown of competitiveness (WEF)
Three sub-indexes, nine pillars and 89 indicators
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Composition of the three sub-indexes (WEF)
BASIC REQUIREMENTS• Institutions• Infrastructure• Macro-economy• Health and primary education
EFFICIENCY ENHANCERS• Higher education and training• Market efficiency (goods, labour, financial)• Technological readiness
INNOVATION AND SOPHISTICATION• Business sophistication• Innovation
Key for
factor-driveneconomies
Key for
efficiency-driveneconomies
Key for
innovation-driveneconomies
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Income thresholds for stages of development
Stage of Development GDP per capita (in US$)
Stage 1: Factor-driven < 2,000
Transition from stage 1 to stage 2 2,000–3,000
Stage 2: Efficiency driven stage 3,000–9,000
Transition from stage 2 to stage 3 9,000–17,000
Stage 3: Innovation-driven stage > 17,000
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GDP per capita < $2000
GDP per capita $3000 - $9000
GDP per capita > $17,000
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Turkey’s Competitiveness 2008
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Weighting of sub-indexes (WEF)
Weights
Basic requirements
Efficiency enhancers
Innovation and sophistication
factors
Factor-
driven stage50% 40% 10%
Efficiency-driven stage
40% 50% 10%
Innovation-driven stage
30% 40% 30%
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II. EU benchmarks for education and training EU2006
HR MAC TURKEY AL BiH MO SR KO
Early school leavers, % 18-24 with at most ISCED 2 & not in E&T
15.3 5.3 32.2 50 61.2 11.4
% 20-24 having at least ISCED 3 (medium qualification)
77.8 94.6 65.4 44.7 89
Tertiary education graduates in maths, science and technology (in % 20-29)And % females
13.1
31.2
5.7
32.7
3.6 4
28.5
4.6 8.3
Low achieving: % pupils with low reading literacy (level 1 or lower)
24.1 21.5 62.6 32.2 70.3 46.7
% of 25-64 in E&T (in 4 weeks preceding survey)
9.6 2.1 1.9 2
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Past and likely future trends by sector (EU-25+)
0
10
20
30
40
50
60
1996 97 98 99 2000 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15
Millions
Primary sector & utilities
Construction
Manufacturing
Business & other services
Non-marketed services
Distribution and transport
Forecast
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Past and likely future sectoral structure (EU-25+)
65.570.6 73.4
26.723.8 22.4
7.8 5.6 4.2
0%
20%
40%
60%
80%
100%
1996 2006 2015
Primary sectorand utilities
Manufacturing
Services
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Past and likely future occupational structure (EU-25+)
8.6 10.9 11.8
29.9 25.6 22.9
26.025.1
24.1
34.9 37.8 40.6
0%
20%
40%
60%
80%
100%
1996 2006 2015
High-skilled non-manual occupations
Skilled non-manualoccupations
Skilled manualoccupations
Elementaryoccupations
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Past and likely future occupational change (EU-25+)
3.5
0.5
-1.4
-1.7
2.5
-1.3
4.7
3.8
2.7
18
6
0
-2
-2
4
-1
6
3
3
13.3
-5 0 5 10 15 20
All occupations
Elementary occupations
Plant and machine operators and assemblers
Craft and related trades workers
Skilled agricultural and fishery workers
Service workers and shop and market sales workers
Clerks
Technicians and associate professionals
Professionals
Legislators, senior officials and managers
1996-2006
2006-2015
million jobs
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Turkey
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III. Turkey’s Progress in Education & Training
Improving matching of labour market and strengthening labour market institutions, in particular at regional and local levels
Increasing the involvement of social partners More investments in education and training Increased access to education New content and ways of teaching have been introduced in
basic education VET reforms have been well developed and disseminated The Vocational Qualification Authority can sustain reforms
and develop national qualification system Active participation in EU international mobility programmes
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Turkey’s Challenges in Education & Training
Create attractive opportunities in higher education in order to increase access
Increase the status and attractiveness of VET by focussing on quality and facilitation the transition to work
Make potential links between schools and business more productive
Develop lifelong career guidance mechanisms to facilitate better career choices of students
Promote continuing vocational training within a lifelong learning strategy framework
Decentralisation needs a thorough analysis and discussion on added value of the different levels of responsibility
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IV. The role of ETF in Turkey Support to awareness raising about EU discussions and questioning
its relevance for Turkey Support to EC in commenting on E&T 2010 reports from Turkey Support to EC Delegation and ministries in design and
implementation of EU projects related to E&T/HRD Support to policy learning for implementing VET strategies to MoNE
and other key stakeholders (Decentralisation, NQF, Apprenticeships, VET Teacher Training, Social partnership)
Support to MYK in drafting an implementation strategy for the national qualification system
Support to capacity building through ETF peer learning project
And to ask questions, questions and questions………………
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Conclusions Economic growth and global competitiveness go hand in hand with
education and training investments Demand for higher skilled is likely to increase at faster pace than
medium skilled, but there will be a need for low and medium skilled in the next decades
Progress in education and training reforms has been achieved in Turkey, but many challenges remain
Strategies and structures are in place, but quality needs to be improved
Social partners and companies are committed to education and training,
BUT More public and private investments in education and training are
needed! It will pay off!!
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Thank you for your attention !
e-mail : [email protected]
ETF: www.etf.europa.eu
European Commission, DG Education and Culture:http://www.europa.eu.int/comm/dgs/education_culture/index_en.htmDG Employmenthttp://ec.europa.eu/employment_social/employment_strategy/index_en.htm
