The relevance of dual model of TVET system for the developing world
Under the Global Production Networks (GPN) / Global Value Chain (GVCs), the MNCs usually locate their units in accordance with the skill of the labour force which they get. If some of the Asian countries managed to attract huge amount of foreign direct investment, initially in labour-intensive manufacturing and then in other sectors, moving up the global value chain. It is because their education in general and Technical and Vocational Education and Training system in particular was well-suited at the time. As, for developing countries, skilling at a mass-level will not only help to attract Foreign Direct Investments by increasing the productivity of the labour force but also to mitigate inequality and reduce poverty as it will up to an extent solve the crisis of employability. For the developing countries the dual-corporatist, Technical Vocational Education and Training (TVET) system of Germany offers so many things to learn.
The paper which is divided in three parts argues that, instead of having the wages as low as possible and engaging in a race to bottom, a country with a well-functioning TVET system can make itself a favourite manufacturing destination. The first part of the paper looks at the opportunities provided by GPNs/GVCs to developing countries and the issue of skills. The second part of the paper gives a brief account of the German TVET system. The last part of the paper highlights some of the lesson which the developing countries can draw from the German model.
Asian Development Bank. (2017). Human Capital Development in South Asia Achievements, Prospects,and Policy Challenges. Manila: Asian Development Bank.
Barrientos, S., Gereffi, G., & Rossi, A. (2011, June ). Economic and Social Upgrading in Global Production Networks: A New Paradigm for a Changing World. International Labour Review, 150(No. 3-4), 319-340.
Chamarbagwala, R. (2006). Economic Liberalization and Wage Inequality in India. World Development, Vol.34(No. 12), 1997-2015.
Chandra, A. (1994). Economic Reforms, Structural Adjustment and Retraining for Redeployment. In R. Islam (Ed.), Social Dimensions of Economic Reforms in Asia (pp. 88- 132). New Delhi: International Labour Organization South Asia Multidisciplinary Advisory Team.
Chang, H.-J., Andreoni, A., & Kuan, M. L. (2013, December ). INTERNATIONAL INDUSTRIAL POLICY EXPERIENCES AND THE LESSONS FOR THE UK. Working Paper No. 450. Centre for Business Research, University Of Cambridge.
Dar, A. (2016, August 15). Skills Development in a Global Context: Towards a Future Ready Workforce. Retrieved May 3, 2018, from World Bank: http://www.worldbank.org/en/news/speech/2016/08/15/skills-development-in-a-global-context-towards-a-future-ready-workforce
Databank. (n.d.). Databank. Retrieved MAY 5, 2018, from World Bank: https://data.worldbank.org/indicator/NV.IND.MANF.ZS
Euler, D. (2013). Germany’s dual vocational training system: a model for other countries? Gütersloh: Bertelsmann Stiftung.
Folker, F., Heinrichs, J., & Kreye, O. (1980). The New International Division of Labour. Cambridge University Press.
Freeman, R. B. (2008). The New Global Labor Market. Focus.
Fuentes-Nieva, R., & Galasso, N. (2014). working for the Few: Political capture and economic inequality. Oxfam. Retrieved from https://www.oxfam.org/en/research/working-few
Gary, G., Humphrey, J., Kaplinsky, R., & Sturgeon, T. J. (2001). Introduction: Globalisation, Value Chains and Development. Institute of development Studies.
Gill, I. S., & Dar, A. (2000). Germany. In I. S. Gill, F. Fluitman, & A. Dar (Eds.), Vocational Education & Training Reform Matching Skills to Markets and Budgets (pp. 485-513). Washington D.C.: Oxford for The International Bank for Reconstruction and Development / The World Bank.
Gill, I. S., Dar, A., & Fluitman, F. (2000). Introduction. In I. S. Gill, A. Dar , & F. Fluitman (Eds.), Vocational Education & Training Reform Matching Skills to Markets and Budgets (pp. 1-36). Washington D.C.: Oxford for The International Bank for Reconstruction and Development / World Bank.
Greinert, W.-D. (2004). European vocational training systems: the theoretical context of historical development. Towards a history of vocational education and training (VET) in Europe in a comparative perspective. I, pp. 17 - 27. Luxembourg: European Centre for the Development of Vocational Training, Office for Official Publications of the European Communities.
Harvey, D. (2005). A Brief History of Neoliberalism. New York: Oxford University Press.
Heockel, K., & Schwartz, R. (2010). Learning for Jobs OECD Review of Vocational Education and Training Germany. OECD.
International Labour Organization. (1998). World Employment Report 1998-99: Employability in the global economy - how training matters. Geneva: International Labour Organization.
International Labour Organization. (2016). India Labour Market Update. New Delhi: ILO Country Office for India.
International Monetary Fund. (2017). Fiscal Monitor: Tracking Inequality. Washington D. C,: International Monetary Fund. Retrieved from https://www.imf.org/en/Publications/FM/Issues/2017/10/05/fiscal-monitor-october-2017
Islam, R. (1994). Introduction. In R. Islam, Socail Dimensions of Economic Reforms in Asia (pp. 1-11). New Delhi: International Labour Organization, South Asia Multidisciplinary Advisory Team (SAAT).
Khan, A. R. (1994). Stablisation, Structural Adjustment and the Labour Market: Issues and Evidence from Asia. In R. Islam, Social Dimensions of Economic Reforms in Asia (pp. 15-42). New Delhi: International Labour Organization, South Asia Multidisciplinary Advisory Team (SAAT).
Maclean, R., & David, W. D. (2009). Bridging Academic and Vocational Learning. In R. Maclean, & W. D. David (Eds.), International Handbook of Education for the Changing World of Work. Bonn: Springer Science and Business Media. Retrieved from http://www.springer.com/education+%26+language/book/978-1-4020-5280-4
Mehrotra, S. (2014). Preface. In S. Mehrotra (Ed.), India's Skills Challange, Reforming Vocational Education and Training to Harness the Demographic Dividend (pp. xvii-xx). New Delhi: Oxford University Press.
Mehrotra, S. (2016). Skill Development Finding New Financing Mechanism to Take Vocational Education and Training to Scale. In S. Mehrotra, Realising the Demographic Dividend Policies to Achieve Inclusive Growth in India (pp. 179-206). Delhi: Cambridge University Press.
Mehrotra, S., Gandhi, A., & Sahoo, B. K. (2014). Is India's TVET System Responding to the Challange of Rapid Economic Growth? In S. Mehrotra (Ed.), India's Skills Challenge Reforming Vocational Education and Training to HArness the Demographic Dividend (pp. 1-36). New Delhi: Oxford.
MSDE. (2015). National Policy for Skill Development and Entrepreneurship. New Delhi: Ministry of Skill Development and Entrepreneurship.
Nickell, S. J. (1996). Sectoral structural change and the state of the labour market in Great Britain. The labour market consequence of technical and structural change. Discussion Paper Series No. 2. London: Centre for Economic Performance, London School of Economics.
O’Higgins, N. (2001). Education and training system. In N. O’Higgins, Youth unemployment and employment policy A global perspective (pp. 95 - 108). Geneva: International Labour Organization.
OECD. (2017, May). OECD Skills Outlook 2017: Skills and Global Value Chains. OECD.
Sako, M. (1994). The role of employers and unions in facilitating the transition to employment and further learning. In Vocational education and training for youth: Towards coherent policy and practice. Paris: OECD.
Scutt, D. (2015, July 21). uk.businessinsider.com. Retrieved May 2, 2018, from Business Insider: http://uk.businessinsider.com/china-has-already-created-7-million-jobs-this-year-2015-7?r=US&IR=T
Standing, G. (2011). The Precariat The New Dangerous Class. London: Bloomsburry Academic .
Stiglitz, J. E. (2002). Globalization and its Discontents . New York: W.W. Norton & Company.
Taylor, L. (2009). Growth, Development Policy, Job Creation and Poverty Reduction. DESA Working Paper No. 90, ST/ESA/2009/DWP/90. New York: United Nations, Department of Economic and Social Affairs.
United Nations Development Programme. (2016). Human Development Report 2015 Work for Human Development. Washington D.C.: United Nations Development Programme.
Valerio, A. (2017, October 10). Skills Development. Retrieved may 2, 2018, from World Bank: http://www.worldbank.org/en/topic/skillsdevelopment