IN.36-00 31 January 2000


The following Impact Evaluation Study prepared by the Operations Office is attached for information:


Technical and Vocational Education Projects in Malaysia, Pakistan, Papua New Guinea, and Sri Lanka



IES: REG 99035






December 1999

CURRENCY EQUIVALENT$ (as of August 1999) Malaysia Ringgit (RM) RM1.00 $1.00 Pakistan Rupee (PRe) PRe1.00 $0.0200 $1.00 = PRs50.00 Papua New Guinea Kina (K) K1.00 = $0.42100 $1.00 K2.42 Sri Lanka Rupee (SLRe) SLRe1.00 $0.0147 $1.00 = SLRs68.00

= RM3.76

= $0.2660




ABBREVIATIONS CSO CST DMC ERC FGD GDP HND IES IPSET NATSHOL ND NGO NISTE PETT PNG SLIATE STR STS SVS TEVT TC VTC community-based organization competency-based training developing member country Equipment Repair Center (Malaysia) focus group discussion gross domestic product Higher National Diploma (Sri Lanka) impact evaluation study Institute for the Promotion of Science Education and Training (Pakistan) National Tertiary Scholarship (Papua New Guinea) National Diploma (Sri Lanka) nongovernment organization National Institute for Science and Technical Education (Pakistan) preemployment technical training (PNG) Papua New Guinea Sri Lanka Institute of Advanced Technical Education (Sri Lanka) student-teacher ratio secondary technical school (Malaysia) secondary vocational school (Malaysia) technical education and vocational traininq technical college (PNG and Sri Lanka) vocational training center

NOTE In this report, "$" refers to US dollars.




Office, IE-61


CONTENTS Page BASIC DATA EXECUTIVE SUMMARY I. BACKGROUND A. B. C. D. E. II. Rationale Objectives and Scope of the Study Approach and Methodology Profile of Project Countries Overview of the TEVT Subsector SCOPE, AND IMPLEMENTATION PERFORMANCE ii iii 1


2 3 4 4 5 5 5 5



Objectives and Scope at Appraisal Implementation Performance Policy Dialogue


IMPACT OF ADB OPERATIONS A. B. Operational Impact Institutional Impact Socioeconomic Impact Financial Impact

D. IV.

18 19

KEY ISSUES A. B. C. D. E. Role of TEVT in the Context of Trade Globalization: Need for a Paradigm Shift Commitment to TEVT: Key to Sustainability Development Thrusts Within the TEVT Size and Quality of the Delivery System Public-Private Sector Mix in the Provision of TEVT

20 20

21 21

22 23 23 23


CONCLUSIONS A. B. Overall Assessment Lessons Learned Follow-Up Actions


25 28



Malaysia Second Item Vocational Education Project Loan 476-MAL Expected Key Project Data ($ million) Actual Vocational Project L.oan 673-MAL Expected Actual Education Third Vocational Project Loan 840-MAL Expected Actual Education Technical and Vocational Project Technical Education Project Loan 1596-MAL Expected Actual


Loan 1355-MAL Expected Actual

Total Project Cost Foreign Currency Cost ADB Loan Amount/Utilization ADB Loan Cancellation

80.00 22.82 20.00 0.00

93.81 19.76 19.76 0.24

145.50 57.35 0.58 0.00

63.91 33.72 21.69 36.31

171.91 64.24 68.80 0.00

199.67 59.98 62.35

238.44 104.80 72.01 0.00 33.85

126.99 54.20 40.00 0.00





Executing Key Dates


Ministry of Education

Ministry of Education

Ministry of Education

Ministry of Education

Ministry of Education

Board Approval Loan Agreement Loan Effectiveness Loan Closing Project Completion PPAR Circulation Key Performance Economic Date 12 Mar81 30 Jun 86 Jun 86

30 Oct 80 12 Dec 80 8 May 81 31 Mar87 Mar 87 Nov 89 27 Apr 84 30 Sep 89 30 Sep 89

20 Dec 83 25 Jan 84 16 Mar 84 7 Feb 90 30 Sep 89 Oct 93 12 Apr 88 31 Dec 92 30 Jun 92

1 Sep 87 13 Jan 88 9 Mar 88 7 Sep 94 31 Dec 94 Oct 94" 30 Jun 02 31 Dec 01 (estimate)

30 May 95 17 Nov 95 9 Jan 96

17 Dec 97 28 Aug 98 6 Nov 98 30 Jun 03 na Project is 0% complete

... ...

... ...

Project is 60% complete

Indicators Internal Rate of Return (%) Rate of Return (%) nc nc No. of Missions 17 (PPAR) nc nc Person-Days 356 nc nc No. of Missions 12 Generally nc nc Person-Days 235 Successful nc nc No. of Missions 12 nc nc Person-Days 171 nc nc No. of Missions

... Person-Days 32

nc nc No. of Missions 2

Person-Days 8

Financiallntemal Mission Data




Generally Successful ADB

No PPAR completion report, PPAR

No PPAR performance audit report .



not available, ...

= not applicable,

= Asian


Bank, nc

= not calculated,


= project

= project

• Project Completion



Pakistan Technical Item Teachers' Project Loan 419-PAK(SF) Expected Key Project Data ($ million) Actual Expected Actual Training Institutes Technical Education Project Loan 1373-PAK(SF)

Papua New Guinea Technical Education Project and Technical Education

Sri Lanka Second Technical Project Loan 887 -SRI(SF) Expected Actual Education

and Polytechnic

Loan 551-PNG


Loan 552-PNG(SF) Expected Actual

Loan 585-SRI(SF)



Total Project Cost Foreign Currency Cost

31.00 1S.00 21.00 0.00

26.32 16.24 18.74 2.26

78.00 45.00 60.00 0.00


33.00 20.00 16.00 0.00

29.10 19.30 16.00 0.00

26.47 15.79 16.10 0.00 Vocational

26.45 16.56 15.85 0.25 Training and Rural Industry .

45.00 22.00 36.00 0.00 Vocational

31.15 17.40 24.58 12.81 Training and Rural Industry


ADB Loan Amount/Utilization ADB Loan Cancellation


Executing Key Dates


Ministry of Education

Ministry_ of Education

Department of Education and Department of Works and Supply

Board Approval Loan Agreement Loan Effectiveness Loan Closing Project Completion PPAR Circulation Key Performance Economic Indicators Internal Rate of Return (%) nc nc No. of Missions 27 (PPAR) Date 3 Mar 80 31 DecBS 31Dec 84

29 Oct 79 3 Dec 79 30 Jul 80

19 Sep 95 18 Jan 96 27 Mar 96 30 Jun02 Dec 01 Project is 40% complete ... ... 18 Jun 82

26 Nov 81 18 Mar82 30 Aug 82 3~ ose 14 Jan 83 3Q.J\mSS 31 Dec 87

30 Sep 82 14 Oct 82 15 Feb 83 1 Sep 88

21 Apr 88 3 Jun 88 30 Nov 88 t5NovSS 22 Sep 97 Aug 97·

Sep 92 Aug 94

Jun 87


31 Dec 92 Oct 94·

34 Dec 93
30 Jun 93

Dec 88 Jun 90

nc nc Person-Days 564

nc nc No. of Missions 10

... ... Person-Days 332

nc nc No. of Missions 15

nc nc Person-Days 361

nc nc No. of Missions 27

nc nc Person-Days 282

nc nc No. of Missions 13

Financial Internal Rate of Return (%) Mission Data

Person-Days 137 No PPAR

Overall Assessment -"

Unsuccessful ADB = Asian Development Bank, nc = not calculated,

No PPAR PCR = project completion

Partly Successful report, PPAR = project performance

No PPAR audit report .

not available, ... " not applicable, Project Completion Report.

EXECUTIVE SUMMARY The main objective of the impact evaluation study is to assess the long-term impact of the assistance provided by the Asian Development Sank (ADS) to technical education and vocational training (TEVT) in Malaysia, Pakistan, Papua New Guinea (PNG), and Sri Lanka. It looked into the projects' impact at four levels: the institutions, the graduates, the employers, and the institutional and policy environment. To have sufficient basis for assessing the projects' impacts, the study group surveyed 5,273 respondents, held 25 focus group discussions for qualitative inputs, visited 31 schools and TEVT institutions, and held consultations in each developing member country (DMC) through a national workshop. The results from the research methods used, including secondary research, were cross-checked with each other for consistency and reliability. The study fits well with the country assistance plans of each of the four DMCs, where ADS is a major player in the development of the social sector, and where social and education impacts of projects are a key concern. From the experiences of the DMCs, the study sought to derive lessons, examine issues that need to be resolved, and recommend actions that need to be taken in the design and implementation of ongoing and future projects in the subsector. The study covers seven completed and three ongoing projects. ADS's assistance generally aimed at improving the quality, increasing the efficiency, expanding the capacity, and ensuring the relevance of the TEVT systems to produce highly trained technicians, operators, skilled workers, and craftsmen to support the DMCs' drive toward industrialization. The 10 projects had a total cost of about $976 million at appraisal, of which $408 million was to be funded by ADS. Malaysia accounted for 79 percent of total project cost and 62 percent of ADS lending. The project components included the establishment of technical teachers training colleges (TTTCs) in Pakistan and Sri Lanka and upgrading of schools in Malaysia and PNG; the establishment of new secondary technical and vocational schools in Malaysia, polytechnics in Pakistan, and the upgrading of technical colleges (TCs) in PNG and Sri Lanka; staff development; and consulting services. More than 1 million students have benefited from these projects during the past 15 years. In general, the study found that while the projects had significant development impacts up to a few years after completion, these have not been sustained, except in Malaysia. In Pakistan, PNG, and Sri Lanka, most of the buildings of the TCs or polytechnics need repair and refurbishing. Only about half of the equipment is still operational (depending on the technology areas). Of the operational equipment, not all is fully utilized due to lack of consumable materials for practical exercises. Most of the course curricula have not been updated since project completion and are outdated. A majority of the teachers who participated in the projects' staff development programs have not had further training since then. The TTTCs in Pakistan and Sri Lanka are underutilized and operating below capacity due to lack of recurrent expenditure budget. Recently. however, those TTTCs have been reorganized by their governments and the new setup looks more promising under the new policy directions. There have been few or no industry linkages. Long-serving teachers felt that the situation was better in the 1980s than now. Employers generally concurred with this assessment. Many of them felt that public TEVT institutions have deteriorated over the past 10 years. Malaysia. on the other hand, offers a contrasting picture. With a series of five projects during the same period (1980-1998), its technical and vocational schools continue to be well-provided in terms of facilities, equipment, teachers, and consumable and other support materials compared with the country's academic schools. However, as in the other DMCs, the technical and vocational schools also have little linkage with industries.

iv Two common factors beset the present state of the polytechnics in Pakistan and the TCs in PNG and Sri Lanka. First, the mindset of education authorities and heads of institutions is heavily oriented toward the "safety net" role of TEVT, i.e., providing education and training opportunities to the socially, economically, and/or intellectually disadvantaged. For as long as the target clientele is provided such opportunities, it is deemed good enough regardless of quality or industry demand. Because it does not matter that they are virtually operating ir isolation from industry, education and needs are mismatched. Second, the governments were unable to sustain the projects after completion. There were no significant additional capita. investments in the projects after completion, and inadequate recurrent expenditure budgets have had adverse consequences for the internal and external efficiencies of the system. The study reveals mixed operational impacts or outcomes among the DMCs: (i) over the past 15 years, growth rates in enrollment were modest in Malaysia and Pakistan at about 7 and 5 percent, respectively, per annum, while they were minimal in Sri Lanka and even in slight decline in PNG; the student-teacher ratio was low in PNG (6: 1) and in Malaysia relatively high in Pakistan (19:1) and Sri Lanka (22:1); (9: 1), but



average daily attendance was quite high at about 90 percent, except in Pakistan, where it was between 30-60 percent in Sindh and Balochistan, and 5080 percent in Punjab and Northwest Frontier Province (in contrast to 80·90 percent among girls in women's polytechnics); dropout rates were minimal except in Sri Lanka, where 50 percent, especially in technology courses; it was as high as



pass rates were high at more than 90 percent in Malaysia and PNG, but lower in Sri Lanka and Pakistan at around 50 and 40 percent, respectively; of those who sought employment upon course completion, about 80 percent in Malaysia and PNG got a job within six months, but only about 60 percent in Pakistan, and 50 percent in Sri Lanka; about 68 percent of the graduates in PNG worked as technicians for their first job, 50 percent in Malaysia and Pakistan, and only about 15 percent in Sri Lanka (about 43 percent of the graduates in Sri Lanka worked as operators or skilled workers in their first jobs); graduates of non project schools received higher average initial salaries than those of project schools--with average differentials of 16 percent in Malaysia, 9 percent in Sri Lanka, and 5 percent in Pakistan (no data are available for PNG); among final-year students, more than 90 percent of those in technical, vocational, and academic schools in Malaysia intend to pursue further studies, 50 percent in PNG, 35 percent in Pakistan, and 25 percent in Sri Lanka;





(x) those who intend to seek employment upon course completion comprise 60 percent in Sri Lanka, 55 percent in Pakistan, 40 percent in PNG, and less than 1 percent in Malaysia; and final-year students in Malaysia display high preparedness for pursuing further studies, but not for employment, self-employment, or day-to-day living; those in the other three DMCs expressed preparedness to seek employment, and to a lesser extent to pursue further studies, and all felt unprepared for selfemployment or to start their own business (this reflects the basic thrust of the present curricula).


The projects contribute to the promotion of access and equity in TEVT opportunities. The profile of families of final-year students shows that most of them belong to the poorer segment of society in terms of education, occupations, and family income. In terms of women's participation, the data show an increasing share of women among the students and among teachers except in PNG. There are no significant differences between project and nonproject schools. The study points out that the years ahead will be difficult given the ever accelerating globalization of trade in goods and services. While globalization will undoubtedly bring about certain benefits, it will also have significant costs. Specifically, it can have adverse effects on local industries if they are not prepared to compete with low-priced, high-quality imported goods and services. The Operations Evaluation Mission noted that while industry people were keenly aware of this, most education authorities and heads of TEVT institutions were not. No sense of urgency was evident. Yet the opportunity has, in fact, arrived for the schools to be truly relevant to industry. They can be a source of competitive advantage for industry. There is an urgent need to forge a strong partnership between the TEVT institutions and industry. But this calls for consideration of a number of issues: (i) Education authorities and heads of TEVT institutions need to make a paradigm shift from a predominantly "safety net" orientation to a "source-of-competitiveadvantage" orientation, without necessarily discarding the former. The governments particularly of Pakistan, PNG, and Sri Lanka, need to raise their level of commitment to TEVT-from policy to action. Official policy statements assuring high priority of TEVT are not enough. These need to be backed up by actual allocation of resources. If Malaysia is to be taken as the benchmark, it would mean increasing the present budgetary allocation to TEVT by about three times. The DMCs, with the support of aid agencies, need to commit to support TEVT over the long term, given the long development cycle of the subsector. Past experience suggests that long-lasting impact cannot be attained through a single project, but only through a series of overlapping projects with consistent core objectives, carried out over a long period.



vi In preparing future projects, the demand for graduates should be carefully ascertained, both from the viewpoints of industry and other users, as well as of potential students. Also, in view of low and inadequate operation and maintenance budgets, the afford ability of project facilities that are to be provided needs to be considered. The study recommends that ADS and other funding agencies consider the following specific investment needs of each DMC: • Malaysia. Upgrade the science, mathematics, and English programs of the upper secondary academic schools in support of the country's drive to develop high-technology industries, as well as upgrading the vocational training centers to directly supply skilled workers to industry. Pakistan. Upgrade the quality of existing polytechnics, and develop short courses for skills upgrading that will strengthen linkages with industry, improve utilization of facilities, provide extra income to instructors, and enhance cost recovery. Papua New Guinea. Cooperate in the rehabilitation of the TCs and the vocational training centers, support the reforms already initiated, and establish a framework for an adequate approach to bring TEVT institutions and industry together and make TEVT a common concern. As a second major thrust, convert the curriculum into the competency-based training system to bring the TCs into the mainstream of articulation (system of equivalency) among the different delivery systems. Sri Lanka. Focus on total quality improvement of existing TCs and the conversion of the TC curriculum into competency-based training. This will soon become necessary given the country's relatively fast-growing and modernizing manufacturing sector.

I. A. Rationale


1. Since 1980, the Asian Development Bank (ADB) has approved 26 technical and vocational education projects, accounting for about 30 percent of total ADB lending to the education sector during the period. Human resource development, and within this area, technical education and vocational training (TEVT) , is expected to occupy an important role in future ADB operations. Although assistance for TEVT has always been undertaken in support of the national development plans of ADB's developing member countries (DMCs), the desired results have not always been achieved. This impact evaluation study investigates the underlying reasons for the differences in project performance. The four DMCs covered in the studyMalaysia, Pakistan, Papua New Guinea (PNG), and Sri Lanka-have either a number of ongoing projects in the subsector (Malaysia and Pakistan) or recently-approved projects in support of skills development (PNG and Sri Lanka). The study fits well with the country assistance plans of each of the four DMCs, where ADB is a major contributor to the development of the social sector, and where social and education impacts of projects are a key concern. 2. The DMCs were selected to represent different geographic locations, population sizes, and stages of development, under which the TEVT projects were implemented. Over the period 1980-1999, 5 projects were implemented in Malaysia.' 2 in Pakistan," 1 in PNG,3 and 2 in Sri Lanka." The total cost of these 10 projects at appraisal was about $976 million, of which $408 million or 42 percent was funded by ADB. The first three projects in Malaysia were rated generally successful, those of PNG and Sri Lanka were rated partly successful, while that of Pakistan (the first project) was rated unsuccessful. From the experiences of the four DMCs, the study sought to derive lessons, examine issues that need to be resolved, and recommend actions that need to be taken in the design and implementation of ongoing and future projects in the subsector. Inputs will also be provided in the formulation of ADB's education strategy. B. Objectives and Scope of the Study

3. The main objective of the study was to assess the long-term impact of ADB's assistance to TEVT in the DMCs. Specifically, the study looked into the projects' impact on four levels, as follows: (i) the delivery system, i.e., the schools, technical colleges (TCs) or polytechnic institutes--how the projects have enhanced their institutional capacity to produce the desired quantity and quality of graduates; the output, i.e., the graduates themselves--how they performed in the world of work, or in the institutions of higher learning for those who opted for further study;




3 4

Loan 476-MAL: Vocational Education Project, for $20 million, approved on 30 October 1980; Loan 673-MAL: Second Vocational Education Project, for $58 million, approved on 20 December 1983; Loan 840-MAL: Third Vocational Education Project, for $68.8 million, approved on 1 September 1987; Loan 1355-MAL: Technical and Vocational Education Project, for $72 million, approved on 30 May 1995 (ongoing): and Loan 1596-MAL: Technical Education Project, for $40 million, approved on 17 December 1997 (ongoing). Loan 419-PAK(SF): Technical Teachers' Training and Polytechnic Institutes Project, for $21 million, approved on 29 October 1979; and Loan 1373-PAK(SF): Technical Education Project, for $60 million, approved on 19 September 1995 (ongoing). Loans 551/552(SF)-PNG: Technical Education Project, for $8 million each, approved on 26 November 1981. Loan 585-SRI(SF): Technical Education Project, for $16.1 million, approved on 30 September 1982; and Loan 887SRI(SF): Second Technical Education Project, for $36 million, approved on 21 April 1988.

(iii) the "user" of the output, i.e., the employers=how of the graduates to their operations; and they perceived the contribution


the institutional and policy environment-how the projects have enhanced the management capabilities of the implementing agencies and influenced the DMCs' TEVT policies and programs.

4. For Pakistan, PNG, and Sri Lanka, the assistance provided was at the post-secondary level, i.e., that of polytecnnics" in Pakistan, and of TCs in PNG and Sri Lanka. In Malaysia, however, the assistance was at the upper secondary level-that of secondary technical schools (STSs) and secondary vocational schools (SVSs). In all cases; the study covered both project schools and nonproject public and private schools. C. Approach and Methodology

5. The study used two approaches in assessing the projects' impact: longitudinal and cross-sectional. The longitudinal approach traced the changes in the capacity of the delivery system and the graduates' performance over time, using both secondary and primary data. The cross-sectional approach used primary data collected from the survey of project and non project schools, a tracer study of graduates from both types of institutions, and a survey of employers of both groups of graduates. The findings and conclusions were cross-checked for reliability and consistency against the results from other research techniques employed such as focus group discussions (FGDs), school visits and interviews, and the national workshops. 6. The survey utilized five questionnaires, one for each of the five types of respondents, i.e.: schools (institutional respondent), teachers, final-year students, graduates, and employers. The samples were first stratified by geographic location and then the institutions (schools and industries) selected purposively. Within each of the institutions, however, the respondents were selected randomly. Individual respondents such as graduates who were unemployed were randomly selected and traced in their residences. The actual sample sizes are shown in Appendix 1. The study survey reached a total of 5,273 respondents broken down as follows: institutions - 128; teachers - 917, final year students - 1,954; graduates working - 1,696; graduates studying (Malaysia only) - 164; and employers - 414. In addition, the study included 25 FGDs attended by 280 participants, visits to 31 schools or TEVT institutions, and consultations in each DMC through a national workshop. D. Profile of Project Countries

7. The DMCs represent different environments in which TEVT projects were implemented (Appendix 2 shows selected socioeconomic indicators). In terms of population size, Pakistan and PNG are at the extreme ends of the spectrum with 135.3 million and 4.2 million, respectively, in 1997, while Malaysia and Sri Lanka are about of the same size with 21.7 million and 18.6 million, respectively. Except in Malaysia, a majority of the people still lives in the rural areas, with PNG having the highest proportion at more than 80 percent in 1997. With low productivity of the rural sector and, therefore, low rural incomes, gross national product per capita in these countries consequently remains low. The proportion of the population living below the poverty line in the three countries is still significant (20-35 percent), in contrast with

Polytechnic institutes offer three-year postsecondary programs leading to the award of Diploma of Associate Engineer. Colleges of Technology offer Bache!or in Technology (B. Tech) post-diploma degree programs on top of the Diploma of Associate Engineer program. In this study, polytechnics include Colleges of Technology.

Malaysia's less than 10 percent. Literacy rates are quite high, especially in Sri Lanka, with 90 percent, compared with Malaysia's 84 percent (illustrating that literacy does not seem to automatically translate to higher income). Pakistan still has the lowest literacy rate at about 37 percent followed by PNG at 72 percent. In all the DMCs, the literacy rate of the female population is consistently lower than that of the male population, with the discrepancy more pronounced in Pakistan and PNG. 8. The difference in the degree of industrialization among the DMCs is also evident from the structure of output and employment. Over the 17-year period (1980-1997), the share of manufacturing in the gross domestic product of the DMCs increased in varying degrees. The most significant increase was experienced by Malaysia-from 19.6 percent to 35.7 percent, followed by Sri Lanka, which increased from 13.7 percent to 21.5 percent during the period. In Pakistan and PNG, the share of industry has hardly changed over the same period. In terms of employment generation, the manufacturing sector of Malaysia again posted an impressive record, increasing its share in total employment from 15.5 percent in 1980 to 27.5 percent in 1997, growing at an average rate of 6.8 percent per annum. Sri Lanka's manufacturing sector also performed respectably, increasing its share from 9.9 percent to 16.2 percent during the same period. The manufacturing sectors of Pakistan and PNG appeared to have stagnated. 9. Inasmuch as the demand for technical personnel is largely a "derived" demand" arising from the growth of industry (particularly the manufacturing sector), the level and pace of industrialization have, to a certain extent, some bearing on the performance of TEVT projects. In general, the faster the pace of industrialization, the tighter the market for technical personnel becomes and the greater the sense of urgency to develop TEVT. Thus, the growth of the TEVT subsector is very much a function of a country's macroeconomic policies and performance. This consideration must be kept in mind in assessing the impact of ADB-assisted TEVT projects. E. Overview of the TEVT Subsector

10. There is no precise definition as to what constitutes the TEVT subsector, but it is understood to include all formal and nonformal courses designed to develop associate engineers, technologists or technicians, operators (skilled and semi-skilled), office workers, small entrepreneurs, and the like. These courses are provided by various public and private educational and training institutions, industry, nongovernment organizations (NGOs), churches, community-based organizations (CBOs), and other such organizations. The TEVT subsector in Malaysia comprises some 78 STS/SVS with a combined enrollment of about 42,000 students; 160 postsecondary public-school providers with a total enrollment of 46,91 0 students; numerous private training institutes or centers with an estimated enrollment of about 90,000; and those operated by industries." Pakistan has 3,285 formal and nonformal TEVT institutions with total enrollment of about 155,000 students in 1989, excluding the informal sector; more than 90 percent of these are operated by the Government." In PNG, formal training is provided by seven TCs and 117 vocational training centers (VTCs) with a combined enrollment of about 13,600. A significant amount of training is conducted in the informal sector by NGOs, CBOs, and churches." Sri Lanka has 1,182 TEVT institutions with total enrollment of about 70,000 in


8 9

TEVT does not lead industrialization. It supports and responds to it. This is because the investment decisions of firms take into consideration many other factors such as size of the market. degree of competition. availability of raw materials, infrastructure, regulatory environment, etc. The availability of highly qualified technical personnel, although an important consideration, is ordinarily not the decisive factor. Strategic Review of Technical Education and Skills Training in Malaysia, Volume I, December 1998. Hawthorn Institute of Education, TA Report on PAK: Technical and Vocational Education Project, September 1990. WD Scott, TA Report on Skills Development Project in Papua New Guinea, February 1999.

1997.10 In Pakistan, PNG, and Sri Lanka, the Government is the main provider of TEVT. In Malaysia, however, private TEVT providers including industries account for the larger share. 11. In the DMCs, TEVT institutions have proliferated in both the public and private sectors with little or no coordination with one another, offering courses of varying quality and operating in isolation from industry. In recent years, however, the DMCs have taken significant initiatives to reform their TEVT systems, partly in response to the pressure brought about by trade globalization. New training systems are being adopted such as contextual learning in Malaysia and competency-based training (CST) in PNG and Sri Lanka. The latter two DMCs are also emphasizing the use of CST to train early school leavers for entrepreneurship and selfemployment in the informal sector. One changing area is the role of government in the provision of TEVT: Sri Lanka, for instance, has declared that its policy is for the Government to serve mainly as "facilitator, coordinator, standard-setter, and requlator" of TEVT, and that the private sector should be the main provider of preemployment and job-entry training. Another is the area of articulation between levels of training in TEVT and general education. Systems are now being put in place in Malaysia, PNG, and Sri Lanka to allow for greater flexibility in recognizing learning acquired from different delivery systems and in widening career choices through the examination system and trade skills certification. Forging stronger linkages with industry through the institute management committees is a major thrust, particularly in Pakistan. These developments augur well for the future of TEVT. II. A. PROJECT OBJECTIVES, SCOPE, AND IMPLEMENTATION PERFORMANCE

Objectives and Scope at Appraisal

12. In general, the primary objectives of ADS's assistance to TEVT have been improving the quality, increasing the efficiency, expanding the capacity, and ensuring the relevance of systems to produce highly trained technicians and skilled craftsmen in sufficient numbers to support development needs. Promoting access and equity in educational opportunities among regions and people in a country has been a secondary objective, particularly in Malaysia. These objectives have been pursued over time, except in Malaysia, where a change in primary objective was noted starting with the fourth project: instead of preparing students for employment, the project objective shifted to "preparing students for further engineering and business education" in response to the changing economic environment. A summary of the objectives and components of the 10 TEVT projects implemented during the period 1980-1999 is shown in Appendix 3. Project components included the establishment of the Technical Teachers Training Colleges (TTTCs) , and the upgrading of an existinq one; the establishment of new schools or upgrading of existing ones; the creation of fellowships (international and local); and the provision of consulting services in different areas such as curricula, instructional materials, information systems, and management processes. Emphasis, however, varied from project to project and country to country. 13. The allocation pattern of project costs is shown in Appendix 4. On the whole, for all 10 projects, the hardware component, i.e., civil works and equipment and furniture, accounts for about 76 percent of total costs. This pattern is, however, heavily weighted by Malaysia, whose projects, largely construction of new schools, accounted for about 79 percent of the combined cost of the 10 projects. On a per country basis, Pakistan and Sri Lanka followed a similar pattern, although equipment and furniture accounted for almost half of total cost as compared with Malaysia, where civil works took more than half of the total cost. In PNG, only about

Center for Development


and Productivity,

TA Report on SRI: Skills Development

Project, April 1999.

50 percent of the total cost went to the hardware component. In all countries, less than 20 percent of the total cost went to the "software" component such as fellowships and consultancies, except PNG, where consultancies accounted for about one third of the total cost. B. Implementation Performance

14. Some indicators of project implementation performance are shown in Appendix 5. Of the seven projects already completed (2 are still ongoing in Malaysia and 1 in Pakistan), the actual total project cost was about 11.7 percent less than the appraisal estimate. On a per country basis, however, some overruns were experienced in the first and third projects in Malaysia, but these were more than offset by the underrun in the second project. In the other three countries, the estimate and actual costs were closer except for the second project of Sri Lanka, where the actual cost was about 31 percent less than the estimate. Loan utilization rates have been generally high except in Malaysia's second project, which utilized only 37 percent of the loan amount. This was because a general slowdown in the construction industry at the time depressed the cost of materials, making it possible to realize substantial savings. The loan utilization of Sri Lanka's second project was also low at 68 percent, due to lower-thananticipated costs of major items at appraisal. Ideally, considering the long processing period required to get another loan, governments should endeavor to fully utilize approved loans. 15. The completion periods estimated at appraisal ranged from 54-72 months. The actual completion periods of the seven projects already completed ranged from 66-146 months. The longest slippage was about 88 months, experienced in Pakistan's first project mainly due to delays brought about by the change in the location of the women's polytechnic. Considerable slippage was also experienced in Sri Lanka's first project, which was delayed by 39 months. The details of implementation performance for each project have been discussed in the various project completion reports and project performance audit reports. What needs to be pointed out, however, when such experiences are taken together, is the general indication that a country's capability to design and implement projects appears to be enhanced as it gets involved in more projects. The benefits of such experience appear to be dissipated, however, when the gap between projects is longer than about two years.


Policy Dialogue

16. Of the 10 projects under evaluation, only three have substantive and specific policy dialogue content (Loans 1355-MAL and 1596-MAL, and 1373-PAK). These include decentralization of school administration, incentives for private sector participation, schoolindustry linkages, cost recovery and financial sustainability, increasing utilization rates and costeffectiveness, increasing female participation, and developing/strengthening management information and benefit monitoring and evaluation systems. In Malaysia, initiatives such as the Time Sector Privatization allow both the private and public sectors to make use of available training facilities. In Pakistan, tuition fees are being introduced gradually. III. A. Operational Impact IMPACT OF ADB OPERATIONS

17. This section examines the outcome of operations of the project schools over the past 15 years. To the extent that long-term time-series data are available, trends over the period are highlighted. Indicators of outcome are also obtained through comparison with nonproject schools. It is not possible to isolate precisely the impact of ADS assistance from that provided

by other funding agencies and the DMC governments. Thus, conclusions that may be drawn are indicative rather than definitive. 1. Curricular Offerings and Curriculum Content

18. The project schools offered a wide range of courses at different levels, of different duration and aimed at different target clienteles. Malaysia's STS/SVS cater to upper secondary students (Grades 11 and 12) and also offered short skills courses for out-of-school youth. Pakistan's polytechnics offer 2-3 year technician courses and 4-year S. Tech post-diploma degree programs; recently, they have also started to offer short courses (usually of 6 months' duration) for specific industry needs. PNG's TCs offer one-year preemployment technical training (PETT) courses and 6-10 week block (extension) courses for apprentices, as well as technician courses consisting of three years of part-time study (normally 20 weeks per year) and short courses of 1-20 weeks' duration. PETT courses will soon be replaced by a two-year Technical Training Certificate course. Sri lanka's TCs have the most varied course offerings, ranging from six-month short courses to the four-year Higher National Diploma (HND). In 1996, however, its HND and National Diploma (ND) courses were transferred to the Sri lanka Institute of Advanced Technical Education (SlIATE). Over the years, new courses have been added in response to a perceived need, often without benefit of any market study. It is difficult to phase out a course once it has been started, even if social and/or industry demand for its graduates has dwindled. Thus, there is a proliferation of courses in project schools. 19. Review and updating of curriculum is almost always a component of ADS-assisted TEVT projects. In Malaysia, this occurred in 1985 for the vocational subjects, and again in 1992 as part of the integrated upper secondary curriculum that gave students a choice of four groups of electives, including technical and vocational education courses. In Pakistan, the first revision was made in 1980 and the second in 1996. In PNG, the revision was done in the early 1980s and has remained in draft form to date. In Sri Lanka, a major revision was done in 1987. All these, however, happened as a result of required activities of agency-assisted projects and not as an institutionalized and continuing process. During the FGDs, teachers and students consistently mentioned the need to update the curriculum and include the latest developments in the field such as digital technology, computer applications (Appendix 6), entrepreneurship, and industry training. 2. Enrollment: Capacity vs. Social Demand

20. The growth rates in enrollment of project schools over the years have been modest as they are constrained by the physical capacity of the schools as well as of the dormitories/hostels, since most of them, except in Sri Lanka, are residential institutions (Appendix 7). Enrollment at Malaysia's STS/SVS has grown at a faster rate in recent years at 7.2 percent per annum. ADS has been instrumental in the capacity expansion of the STS/SVS in partnership with the Malaysian Government. In spite of this respectable growth, however, its total capacity still accounts for less than 8 percent of total upper secondary enrollment, an even smaller vocational/technology stream than that of the academic schools. Similarly, in Pakistan, ADS has been instrumental in expanding the capacity of the polytechnics but its intake is still less than 5 percent of the matric output, i.e., Class X students who have passed the matriculation examination. In PNG and Sri Lanka, enrollment appeared to have stabilized between 2,000-3,000 students and 18,000-20,000 students, respectively (before Sri Lanka's transfer of HND and ND courses to SlIATE). ADS's role in these countries has been more nearly one of upgrading for quality improvement than of capacity expansion.

7 21. Social demand has consistently outpaced the capacity of the project schools. Malaysia's STS/SVS accommodate only about 60 percent of total applicants; Pakistan's polytechnics only about 30 percent; PNG's TCs a low of 15 percent; and in Sri Lanka, only about 25 percent. A sampling of the level of social demand by technology/trade areas is shown in Appendix 8. While the pattern of social demand reflects a common trend across the DMCs, there are also certain country-specific peculiarities. The traditional technology areas such as electrical and electronics are in high demand by students; mechanical and automotive follow closely. Information technology and business management and commerce have recently gained popularity. Whether the pattern of social demand matches with that of industry is discussed in para. 40. 3. Instructional Methods and Materials

22. The instructional methods remained largely traditional, consistinq of lectures, some practical work, and demonstrations. Many teachers admitted that there was not much difference between how they were taught during their student days and how they themselves are teaching now. Although most of them had learned how to develop learning materials, use audio visual aids, and design workshop projects during the staff development program (para. 51), most of the time materials and equipment are not available in their schools (except in Malaysia, where the STS/SVS are well provided). Often, they used photocopied handouts or have students copy from the board in the absence of textbooks. Practical exercises are often not conducted, either because equipment is not operational or because of lack of consumable materials (in Pakistan, for example, the budget for consumables is only about PRs50 [$1.00] per student per year). In some cases, the students, especially girls in women's polytechnics, bring their own materials. 4. Internal Efficiency a. Selected Indicators

23. The teaching-learning process in the classrooms or workshops/laboratories is affected by a number of factors. How efficient this process has been in the DMCs can be gleaned from certain selected indicators shown in Table 1.
Table 1: Selected Internal Efficiency
Indicator Average Class Size Student-Teacher Ratio Malaysia 30-34 (STS/SVS) 35-40 (academic) 9: 1 (STS/SVS) 19:1 (academic) 90 Pakistan 50-100 19:1 30-60 (Sindh, Balochistan) 50-80 (Punjab, NWFP) 5-10 40

Papua New Guinea 15-20 (technology) 30-40 (others) 6:1 95 (theory) 60 (practical)

Sri Lanka
15-20 (technology) 30-40 (others) 22:1 90

Attendance Rate (%)

Dropout Rate (%) Completion Rate (%) Pass Rate (%)

5 or less 90 or higher 91.9 (STS/SVS) 76.6 (academic)

5-10 90 90

Up to 50 70-76 49 (1988-98)

NWFP North-West Frontier Province, STS secondary technical school, SVS Sources: Secondary Data, Focus Group Discussions.



= secondary

vocational school.

24. Average Class Size and Student-Teacher Ratio. The average class size varies widely among the DMCs. Malaysia's STS/SVSs have about 30-34 students per class, lower than the academic schools' 35-40. In Pakistan, the usual class size is 50 students, but some have as many as 100 students. In PNG and Sri Lanka, technology classes have 15-20 students, and about 30-40 students for business and other courses. The student-teacher ratio (STR) in Malaysia's STS/SVS is a low 9: 1 compared with the 19: 1 in the academic schools. In Pakistan, the STR was 19: 1, in Sri Lanka, 22: 1, and in PNG a very low 6: 1. Except for PNG and Malaysia's STS/SVS, the STRs of the other DMCs have steadily increased over the years due to high social demand. Measured against the accepted international norm for STR for technical courses of 15: 1, Malaysia's STS/SVS and PNG have to adjust STRs upward to reduce unit cost, while Pakistan and Sri Lanka have to adjust downwards to enhance quality. 25. Attendance, Dropout, and Completion Rates. In Malaysia, PNG, and Sri Lanka, average daily attendance rate is about 90 percent except in practical classes in PNG, which is about 60 percent due to nonavailability of equipment and materials. In Pakistan's Sindh and Balochistan, it is as low as 30-60 percent and in Punjab and North-West Frontier Province, 5080 percent. This partly ameliorates the overcrowding problem due to large class sizes. Among women's polytechnics, however, attendance is much better at 80-90 percent. A major reason for the attendance problem is the laxity in enforcing the rule requiring 70-80 percent attendance rule before one is allowed to sit in the Board examination. The dropout rate is not a major problem in Malaysia, Pakistan, and PNG, but is a serious one in Sri Lanka--as high as 50 percent, particularly in technology courses. The main reason cited is financial: as soon as they get basic skills the students start looking for jobs in order to help their families. As expected, the completion rate is lower in Sri Lanka than in the other three countries. There are no significant differences between project and nonproject schools in these respects. 26. Pass Rate and Learning Achievements. Teachers and students revealed that while continuous assessment of learning achievement is being done internally at least four times a year, students do not give it as much importance as the external examinations conducted by the Board of Examination or its equivalent. The pass rate of Malaysia's STS/SVS graduates in the external examinations has been generally higher than that of their counterparts in academic schools, about 92 percent vs. 77 percent, in 1998. In Pakistan, the pass rate at the national level is around 40 percent, varying widely among the four provinces, with Punjab registering the lowest and Sindh the highest. Questions about the integrity of the examination results were raised many times during the FGDs, however. In PNG, the pass rate is a high 90 percent, while in Sri Lanka it is quite low, averaging 49 percent during the period 1988-1998. These figures reflect quite closely the teachers' assessment during FGDs as to how much of the intended curriculum their students achieved (or learned) given what the teachers were able to implement (or deliver). (In Pakistan, the indications were opposite to the examination results). Reasons for the wide gap between the intended curriculum and achieved curriculum are discussed in Appendix 6. b. Preparedness of Final-Year Course Completion Students and Transition Moves Upon

27. Teachers and final-year students were asked how prepared the students were in tackling the various options, i.e., further studies, wage employment, self-employment, and day-to-day living, upon course completion. In Malaysia, final-year students of both project and nonproject schools are perceived to be very well prepared to pursue further studies, but not to pursue wage employment, much less self-employment. In the other DMCs, high preparedness was indicated in seeking wage employment, although they also felt prepared to pursue further studies. All,

however, felt much less prepared to pursue self-employment. In Pakistan and PNG, teachers and students of non project schools expressed a higher level of preparedness than those of project schools. The reverse was true in Sri Lanka. The results are shown in Appendix 9. 28. Final-year students were also asked about their immediate plans upon course completion, given the same options as above. These plans were then compared with the steps actually taken by the graduates upon course completion. More than 90 percent of the final-year students in Malaysia, both from STS/SVS and academic schools, intend to pursue further studies. The corresponding figure in Pakistan was about 35 percent, in PNG close to. 50 percent, and in Sri Lanka about 25 percent. Those who intend to seek wage employment comprise about 40 percent in PNG, 50 percent in Pakistan, and 60 percent in Sri Lanka. Those who intend to start their own business are very few except in Sri Lanka (close to 10 percent) .. Compared with the actual moves of those who preceded them, the proportion of those who pursued further studies was only about 50 percent in Malaysia, 10 percent in Pakistan, 4 percent in PNG, and about 25 percent in Sri Lanka, similar to the plan of the final-year students. It is more likely, however, that because of the changing environment, the actual moves of the final-year students will follow their plans more closely than the pattern of choices of previous graduates. c. Overall Assessment of lEVl Programs

29. The final-year students of both STS/SVS and academic schools in Malaysia appeared equally satisfied about their school TEVT programs. However, STS/SVS graduates' ratings on overall quality were significantly higher than those of academic school graduates. Similarly, the STS/SVS teachers' ratings on overall strength of the programs were significantly higher than those of academic school teachers. In Pakistan and PNG, the quality and program strength ratings of the non project schools by both their graduates and teachers were significantly higher than those of graduates and teachers from project schools. This is partly influenced by the relatively lower salaries that project school graduates command in the job market (para. 33). The opposite was true as far as overall satisfaction of students was concerned. In Sri Lanka, there was no significant difference on quality and program strength ratings between project and nonproject schools, although the students of project schools expressed higher levels of satisfaction. 5. External Efficiency a. Job Search Duration, and Reason for Hiring

30. Among the graduates surveyed who opted to seek wage employment, more than 80 percent of those in Malaysia and PNG get jobs within six months of course completion, 60 percent in Pakistan, and 46 percent in Sri Lanka. Consistent with this finding, the proportion of those who get jobs after a year was about 37 percent in Sri Lanka, 18 percent in Pakistan, and less than 10 percent in Malaysia and PNG. A majority of the graduates get hired either because of good performance in tests and interviews or because of their special training or qualifications. The number who get hired because of the endorsement of relatives or friends is quite significant in Sri Lanka (about 20 percent). Across the four DMCs, graduates of nonproject schools, most of whom come from private TEVT institutions (except in Malaysia) generally appeared to be more employable. Details are shown in Appendix 10.

10 b. Profile of Entry and Present Jobs

31. At least half of project school graduates worked either as technicians or operators, skilled workers or craftsmen for their first job, with the highest proportion noted in PNG at more than 80 percent. As expected, Malaysia's academic non project school graduates have the lowest proportion (about 25 percent). A significant proportion of graduates, presumably from business and commerce courses, works in clerical positions as entry jobs. The matchup between education and training and first job appears to be quite significant, with more than 65 percent saying there was a proper match. PNG has the highest percentage of proper matching at more than 85 percent, most probably because of its long apprenticeship period (three years for PETT graduates) prior to the granting of certificate or diploma. The mix of jobs or positions of graduates changes over the years as they get promoted or pursue other careers. The matchup, however. between education and training versus present job does not continue to reflect the matchup with their first courses at the STS/SVS, polytechnics or TCs, as many have taken other courses since then. A profile of the entry and present jobs of graduates, and the extent to which such jobs match with their education and training, is shown in Appendix 11. c. Need for Training Prior to Regular Assignment

32. A majority of the graduates who were employed after graduation needed to be trained for about 3 months or more before given regular assignments. A relatively smaller proportion (about 68 percent) of STS/SVS graduates in Malaysia needed training. compared with the 92 percent of the graduates of academic schools. Similarly, about 77 percent of the graduates of project schools in Sri Lanka needed training, compared with 93 percent in nonproject schools. Most of the training needed was on-the-job in combination with formal training (Appendix 12). d. Average Initial and Present Monthly Salary

33. Some indications as to how the employed graduates fared financially in terms of initial and present salary is shown in Table 2 (details in Appendix 13). Comparison across countries may not be appropriate because of the different stages of development and the differences in cost of living. The low level of the average present salary in Sni Lanka is due to the fact that a good number of the respondents are recent graduates.
Table 2: Average Initial and Present Monthly Salary (in current US $) Papua New Guinea


--------------------------------------------~------------------~--167.2 310.1 193.4 361.8 45.9 130.2 48.1 135.7 na na na na na na na na 53.4 64.3 58.7 71.4










Sri Lanka


Average Initial Salary Average Present Salary Salary Differential: • Initial • Present

15.7% (-P higher) 16.7% (-P higher) schools, -P

4.8% (-P higher) 4.2% (-P higher)

8.9% (-P higher) 11.0% (-P higher)

_----------------------------------_-----------P :; graduates from project-assisted Source: Impact Evaluation Survey.

= nonproject

graduates. na

= not available.

34. In the three DMCs where data is available, the graduates from nonproject schools consistently showed higher average salary, both initially and at present. The salary differential in

11 Malaysia is quite significant, with the graduates of academic schools getting nearly 16 percent more than those of STS/SVS. In Sri Lanka, nonproject school graduates also get 10 percent more than those of project schools; in Pakistan, the differential is lower at less than 5 percent. The reason for the difference could be that nonproduction-related jobs (where a larger proportion of nonproject school graduates work) generally pay more than production-related jobs, or that the graduates of nonproject schools, which include private schools (except in Malaysia) command a higher wage. e. Usefulness of Education and Training to their Jobs

35. The survey findings show that a high 80 percent of graduates in the DMCs who are working found their education and training either "useful" or "very useful," except in Sri Lanka, where the proportion is about 65 percent. Conversely, the proportion of graduates in Sri Lanka who found their education and training "useless" is more than 20 percent, compared with less than 5 percent in the other DMCs. It is possible that this group largely represents the younger batch of graduates who are experiencing a mismatch between their education and training and jobs available. f. Job Mobility and Prospects for Advancement

36. Graduates of TEVT do not change jobs very often, especially in Sri Lanka, where more than 70 percent have not changed jobs since joining the labor force. In Malaysia and Pakistan, more than 60 percent either have not changed jobs or changed jobs only once, as compared with 30 percent in PNG. There is no significant difference between graduates of project and nonproject schools in this regard; this could be indicative of: limited opportunities in the economy, narrow specialization, young age, or a combination of these factors. More than 70 percent of the graduates in Malaysia think that their future is either "bright" or "very bright," compared with PNG's 60 percent and Pakistan'S 50 percent. The least optimistic are graduates in Sri Lanka where only about 20-25 percent think that they have a bright future. Between 3540 percent think that prospects are dim. This may be due to the general economic and political situation, the relatively younger age of the respondent-graduates, and the fact that more than 70 percent of them are still on their first jobs, which apparently are not very promising. g. Performance of STS/SVS and Academic Institutions of Higher Learning (Malaysia) School Graduates in

37. In Malaysia, the performance of STS/SVS and academic school graduates at the institutions of higher learning 11 were compared using their mean scores in first-year examinations in engineering and technical courses. On the combined mean scores of STS/SVS versus academic graduates, the difference was statistically significant in favor of the former. However, between graduates of technical courses of STS/SVS versus the graduates of the science stream of academic schools, which properly are the more comparable outputs, there was no significant difference on mean scores. In the perception of lecturers, there were also no significant differences between the two groups of students on theoretical knowledge, analytical skills, and oral presentation.


Includes Polytechnic Shah Alam, Institut Teknologi MARA, University ofTechnology,

Institut Kemahiran MARA.



Demand vs. Supply: The Mismatch

38. During the period 1980-1997, there were significant shifts in the structure of demand of industries for technical personnel in the DMCs, as shown in Appendix 14. The demand for professional, technical, and related workers (to which occupational group the technicians and technologists belong) grew much faster than those for production and related workers (operators, skilled workers, and craftsmen) and for other groups of workers, particularly in Malaysia. This trend was validated during the FGDs with industry representatives. 39. Industries require a whole spectrum of technical personnel comprising scientists/ engineers, technologists/technicians, and operators/skilled workers/craftsmen. Depending on the stage of a country's industrial development and the technologies employed by industry, the personnel mix, on the average, would be one engineer far every three technicians and 20 operators (1 :3:20). The mix changes over time as the country develops. At present, the knowledge requirement for the new technologies is increasing. The implication is that as the new technologies become more knowledge-intensive, the proportion of engineers/scientists and technologists/technicians will be increasing, while that of operators/skilled workers/craftsmen will be decreasing (e.g., 1:5: 12). In Malaysia, for instance, there is an ongoing "transformation" program among industries that trains operators to become technicians, technicians to perform some engineering tasks, and engineers to concentrate on research and development. The shift is best illustrated in Appendix 15, which shows the changing shape of the personnel triangle-a narrowing at the base and "bloating" at the middle and upper level as industries adopt new technologies. It is important to have an idea which shape applies to a country given the technology mix of its industries. as it has major implications for the supply side. 40. How has the supply side, i.e .. the project schools, responded to this trend? There is enough evidence to say that they are largely unaware of it. Without close linkage with industries, schools do not get the right signals from their market. This is supported by the survey results comparing perceptions on social demand versus industry demand (Appendix 16). In the DMCs, except PNG, social demand (as perceived by teachers), either by occupational group or by technology area, was significantly higher in most cases than industry demand (as perceived by industry managers/supervisors). In PNG, however, the reverse was true, probably because of the stagnant formal sector that forces the Government to focus on the informal sector instead. In Pakistan. PNG, and Sri Lanka, there is an oversupply at the higher level (degree holders) and at the middle level (technicians) but a shortage of qualified technicians and operators/skilled workers/craftsmen--and an oversupply of semiskilled and unskilled labor." In Malaysia, the shortage was being felt at all levels before the recent economic crisis, but eased up during the crisis; with the recovery of the economy, there has been a tightening of the market for higherand middle-level personnel. This trend is expected to continue as the Government pursues its vision of a "high-skill, high-wage" economy. At the same time, it has to contend with the challenge of providing training opportunities to the 50 percent of school leavers who do not complete the Malaysian Certificate of Education (SPM) or the Vocational Certificate (SPMV).


In Sri Lanka, 12.2 percent of male and 27.3 percent of female General Certificate of Education (A level) and higher education graduates were unemployed in 1996 (Labor Force Survey, 1996). In Pakistan, the Second Perspective Plan (1998-2003) projected a surplus of engineers and technicians of about 35,000 graduates during the plan period. On the other hand, of the 1.63 million production and related workers required during the plan period, TEVT is expected to supply only 0.16 million graduates, a shortage of about 1.5 million. In PNG, it was gathered from discussions with some industry executives that their problem regarding the middle and higher level personnel is not quantity but quality.

13 41. The delivery systems assisted by ADB in the DMCs need to be more directly focused on current industry needs. The STS/SVS in Malaysia are only indirectly supporting the demand for middle- and higher-level personnel, since a great majority of their graduates pursue higher studies before joining the labor force. In Pakistan, short-term industry needs are for operators and skilled workers that the polytechnics do not produce. In PNG, the need of the economy as a whole is providing skills for livelihood in the informal sector, inasmuch as the prospects for job creation in the formal sector are limited. In this case, the TCs are not as well-positioned to contribute as the VTCs. Similarly in Sri Lanka, the main thrust of government is selfemployment, toward which the TCs have yet to adjust their programs, courses, and staff capabilities. There appears to be a need to review the focus of ADB's assistance on TEVT in the DMCs. B. Institutional Impact

42. This section deals with the impact of ADB assistance on the capacity or capability of the concerned institutions as service delivery systems. This includes the Executing Agency (EA), and its project implementing units (PIUs), the support institutions such as teacher training centers and (for Malaysia only) equipment repair centers, and the project schools. Institutional capacity is considered in terms of management and staff, physical facilities, and budgets. 1. Executing Agency/Project Implementing Unit

43. As in most TEVT projects, the implementation of projects and overall management was the responsibility of the respective Ministries of Education as EAs of the DMCs through their technical education departments, or their equivalents. The PIUs were usually organized under these departments. Every project included a component to strengthen the EA and PIUs such as fellowships for staff and various consultancies on organization structuring, management systems, and curriculum development. The impact of assistance on the EAs and PIUs was reflected in the improved implementation performance of projects. These performances were already partly assessed in the project completion reports and project performance audit reports. Over the longer period, however, it appears that EAs/PIUs that have had to handle a series of projects such as those in Malaysia have kept their implementing capability intact and even enhanced it over time. The learning curve evidently applies. Based on the implementation performance of past and current projects, this cannot be said of the other countries to the same degree.


Technical Teachers Training Centers

44. The establishment of the TTTCs in Pakistan and Sri Lanka were major project components. In Malaysia and PNG, ADB's inputs were relatively limited as these were mainly for upgrading of facilities and staff. In general, the role of the nTCs in the DMCs is to provide pre-service and in-service education and training to technical teachers. Over the years, this role has evolved together with their respective organizations. In Pakistan, understaffing, lack of recurrent budget, and underutilization of the National Technical Teachers Training College persisted until recently, when it was merged with the Institute for the Promotion of Science Education and Training; 13 the merged entity was renamed the National Institute for Science and Technology Education (NISTE). The combined facilities are expansive and the task of fully utilizing them appears daunting. The NISTE is headed by a director general and has a much

Established under Loan 759-PAK(SF): approved on 28 November 1985.

Science Education for Secondary

Schools Sector Project, for $28.8 million,


broader scope, covering both science and technical education. NISTE's new plans and programs have been drawn up, but have yet to be fully implemented. Much depends on the support of the federal government, particularly on the recurrent budget. On its own, NISTE's management has initiated programs to generate revenues by offering its services to industries and private schools. This new setup appears promising, but results have yet to be seen. 45. The case of the TTTC in Sri Lanka is similar to that of Pakistan. The same problems of underutilization due to understaffing and lack of recurrent budget have persisted. In November 1998, by an act of Parliament, the TTTC was converted into a corporate body and renamed the National Institute of Technical Education (NITE) under the administration, management, and control of a board of governors. It is mandated to be a center for higher learning, providing graduate and postgraduate technical and vocational education. It is headed by a director general and has a staff of 82 in 1998 with some 60 vacant positions. Efforts are underway to fill the vacancies. Meanwhile, the new management has started ofifering its services to public and private corporations and NGOs in such areas as teacher training, curriculum development, national skills standards setting, computer training, and computerization of library information systems. NITE has yet to realize its full potential. 46. In Malaysia, ADS extended assistance to the TTTC under the third and fourth projects with new buildings, equipment, furniture, and fellowships. The TTTC provides specialist preservice training for trade courses and commerce for nongraduate teachers. In 1996, however, the preservice function was transferred to the Tun Hussein Onn Institute of Technology. It is headed by a principal and has 141 academic staff, mostly university-trained and with considerable teaching experience. It has 12 departments with a budget of around RM10 million. Recently, it introduced a course known as "Program Khas Pensiswazahan Guru" to enable teachers to acquire degrees. The facilities are in reasonably good condition except those for catering, bakery, and confectionery which are in relatively poor condition, but which are frequently used. Other facilities that have high utilization rates but are insufficient to meet current needs include the science and information technology laboratories and the studies for fashion design and tailoring. 47. . In PNG, the TTTC was established and remained as part of the University of Goroka and has been integrated into the university's teaching program. During project implementation, the TTTC played an important role in the localization of the teaching staff. Over the past 10 years, however, there has been a decrease in enrollment. The TTTC has one expatriate staff member with an enrollment of only 11 students in the trade courses. The physical facilities provided by ADS have limited utilization. A majority of the people in the university is not aware that there is in fact a TTTC and that it was assisted by ADS. 3. Equipment Repair Center, Malaysia

48. Through ADS assistance, four Equipment Repair Centers (ERCs) were established, one in each of the four regions of Peninsular Malaysia. The main objective of the ERCs is to provide repair and maintenance services for the STS/SVS in their respective regions. In addition, they train teachers and students to carry out minor repairs and their own maintenance work. They are also expected to make two visits a year to service the schools in their respective areas. The ERCs in Kemaman (east coast region), Sungai Buloh (central region), and Satu Pahat (southern region) serve 18 schools each while the ERC in Sungai Petani (northern region) serves 15 schools.

15 49. As support units, the schools consider the ERCs as of some help in the repair and maintenance of their equipment. Their effectiveness, however, has been constrained, especially during the current economic crisis, by several factors: the shortage of staff (only 2-5 staff per center); lack of expertise in the latest technology due to lack of formal training; old and outdated equipment, especially in Kemaman and Sungai Buloh; and delays in response time. Delays are due to bureaucratic procedures, as all requests require endorsement from the State Technical Education Department before visits can be made. These constraints need to be addressed if the potential of the ERCs is to be realized.


Project Schools (STS/SVS, echnical Colleges, Polytechnics) T a. Management

50. In the DMCs, management of the project schools has remained centralized. Although principals exercised some authority to manage day-to-day operations, decisions related to policies, budget, recruitment of staff, transfers, promotions, offering of new courses, and purchase of equipment, among others, are exercised by the technical education departments or their equivalent. While there are governing boards, councils, or management committees with industry representations in every TC or polytechnic (in Pakistan, PNG, and Sri Lanka), these bodies are largely recommendatory and most of them are inactive. In such an environment, it is not surprising to find that most of the school heads were of the bureaucratic mold, with little creativity, initiative, and daring to do what needs to be done. It should be noted, however, that in each of the four DMCs, there are a few who, operating in the same environment, stand out above the rest. Their schools' physical surroundings are clean and students are disciplined; they take the initiative in mobilizing external resources for operating and capital expenditures and in establishing linkages with industries. These are examples of best practices that should be studied and emulated. The personal qualities of these leaders should also guide the authorities in selecting new school heads in the future.


Teaching Staff

51. In general, teachers in project schools are older, with longer teaching experience but with lower educational qualifications, than those of the nonproject schools. This is more pronounced in Sri Lanka (project and nonproject schools) and PNG (project schools) where the proportion of nondegree holders (Diploma and Certificate) is more than 75 percent. In Malaysia, the difference between STS/SVS and academic schools in the proportion of nondegree holder teaching staff is quite significant at 30 and 3 percent, respectively. In terms of industry experience, Pakistan (nonproject), PNG (project), and Sri Lanka (project and nonproject) have about 20-25 percent of the teaching staff with 10 years or more of work experience with industry. Malaysia's teaching staff, in both project and nonproject schools, has the highest proportion of experienced faculty, more than 70 percent, but they have no industry experience. A profile of the teaching staff of project and nonproject schools across the four DMCs is shown in Appendix 17. To upgrade the capabilities of the teaching staff, the projects provided international and local fellowships in Malaysia, Pakistan, and Sri Lanka (PNG's was funded by the Australian Agency for International Development). Those who participated in the program rated it above average in improving their knowledge of the subject matter and teaching skills. A majority found the duration just right and that they were able to apply some of what they have learned. However, the fellowship program was a one-shot affair and the majority of the teachers, except in Malaysia, have had no training since then.

16 52. In Malaysia, there is no significant difference among final-year students and graduates from both project and nonproject schools in the perception of the number and quality of teachers, and no significant difference as well between the 1980s and the present, according to the long-serving teachers. Among the present teachers, however, the perception is that the STS/SVS have significantly more teachers available than the academic schools. This is confirmed by the lower STR of STS/SVS compared with academic schools (para. 24). In the other countries, the pattern of perceptions is similar; in Pakistan and PNG, the difference is more in the quantity rather than the quality of teachers in nonproject schools; in Sri Lanka, the same is true of teachers in project schools. In Pakistan, however, the graduates' perception of quality of teachers is significantly higher for nonproject schools. Over time, between the 1980s and the present, there has been no significant difference in perceptions of the quantity and quality of teachers across the project countries. In general, the teachers are regarded quite highly by the students and graduates. Many students consider their teachers as one of the major strengths of their schools. The perceptions of the number and quality of teachers over the years from the point of view of the final-year students, graduates, and the teachers are shown in Appendix 18.


Physical Facilities

53. Comparing the state of physical facilities of the project schools between the 1980s and at present, the long-serving teachers' assessment is that, in general, the facilities were better then than they are now. This is particularly true of workshops/laboratories, classrooms, and/or library in Pakistan, PNG, and Sri Lanka. In Malaysia, the perception is that there is no significant difference in the condition of classrooms and workshopsllaboratories, but that the library facilities are much better now. A summary of assessments on physical facilities from the points of view of teachers, final-year students, and graduates is shown in Appendix 19. 54. Comparing the present facilities of the project schools with those of nonproject schools, significant differences emerged. In Malaysia, ratings on STS/SVS facilities are significantly higher compared with those of academic schools. In Pakistan and PNG, the teachers and finalyear students in nonproject schools gave significantly higher ratings on their facilities than those in project schools. However, the graduates' ratings of Pakistan's project schools were significantly higher than those of non project schools. The same is true of the graduates' ratings in Sri Lanka. Sri Lankan teachers' and final-year students' perceptions showed no significant differences between the facilities of project and nonproject schools except in the library, where the teachers felt those of project schools were better. These assessments conformed with the Mission's observations during field visits. The buildings looked Old and most of the equipment is outdated; only 40-60 percent of it is operational due to lack of repair and maintenance. Good housekeeping was generally not evident either in the physical surroundings or inside the classrooms and workshopsllaboratories. d. Industry Linkage

55. Linkages between schools and industries have not improved significantly since the first projects. Although a number of the employers surveyed indicated some form of cooperation with schools (in-plant training of students being the most common), such cooperation was limited. This is one of the weakest aspects of the TEVT program in all the DMCs. A TEVT system that aims to serve the needs of industry cannot be effective without the active participation of industry. It is not enough that industry accepts student trainees as required in the curriculum or teachers for industry exposure. The management inputs of industry people are often an untapped resource. One only needs to compare the project schools where industry people are

17 involved in their management and those where they are not. The differences in the dynamism of the course offerings, the order and cleanliness of the physical facilities, the morale of teachers and students, among others, are clearly evident. Industry's orientation toward results, insistence on accountability, and, above all, its standard of excellence somehow gets injected into the public TEVT corporate culture. Recently, however, serious efforts to strengthen the linkages with industry have been launched in Pakistan with the formation of the Institute Management Committees (IMCs) in the polytechnics. The move was met with enthusiasm by industry, schools, and government policymakers. The model may be considered in the other countries as well. e. Employers' Assessment of Public and Private TEVT System

56. In the area of meeting social demand, the perception of employers in Malaysia and Pakistan is that public TEVT institutions are more responsive than their private counterparts, while the reverse is true in PNG. Employers in Sri Lanka think there is no difference in the responsiveness of the two to social demand. As to meeting industry demand, employers in Malaysia think the public TEVT institutions are still the more responsive ones, while it is the other way around in the case of PNG and Sri Lanka. Employers in Pakistan do not think there is much difference between the two in this respect. The employers' perceptions on the public and private TEVT institutions in their respective countries are shown in Appendix 20. 57. On the overall state of TEVT institutions, employers across the DMCs generally think that the private institutions have improved more than the public institutions over the last 10 years. The gap between the two is more pronounced in PNG and Sri Lanka. Conversely, the proportion of employers who think that the public TEVT institutions (to which the project schools belong) has "deteriorated significantly" or "deteriorated" somewhat comprises almost 60 percent in PNG and about 30 percent in Pakistan and Sri Lanka, but only about 6 percent in Malaysia. The corresponding proportion of employers thinking that private TEVT institutions have also deteriorated somewhat or Significantly is also quite significant in PNG and Pakistan, comprising 27 and 17 percent, respectively. 5. The TEVT Delivery System: A Synthesis

58. In Pakistan, PNG, and Sri Lanka, the starting point of primary activities-the identification of courses and the design of curricula-has been weak. Many of the courses were chosen not because of industry needs but because of social demand-the need to provide alternative educational opportunities to the disadvantaged. The corresponding curricula were often designed with the assistance of consultants and donor-agency experts, but with little or no local industry participation. The process of continuing review of course offerings and curriculum has not been institutionalized, so most of them are outdated. It is only recently that new training systems or technologies have been considered, such as the CST for PNG and Sri Lanka and contextual learning in Malaysia. Recruitment and admission are carried out centrally at the Ministry level; school management has little or no control over such policies except for the few paying students in PNG. The choice of courses by students are sometimes ill-advised, simply because the teachers and/or counselors themselves are not in touch with the labor market. A number of courses do not have good employment prospects and thus aggravate the demandsupply mismatch. The effectiveness and efficiency of the teaching-learning process is greatly diminished (to different degrees depending on the project country) because of a number of factors, including the outdated curriculum, inadequate and obsolete equipment, lack of textbooks and consumables, teachers' lack of practical skills, quality of students (either disinterested or the too heterogeneous a mix), and the absence of continuing staff development.

18 59. Students are assessed by the school to determine the level of learning acquired. This is not given much importance by either the teachers or the students, however, because the results hardly count. What really matters is the external examination that is the basis for the awarding of the certificate or diploma. In some provinces in Pakistan, the integrity of the examination itself has been questioned. Less than half of the students in Pakistan and Sri Lanka eventually receive the certificate or diploma; more than 90 percent do in Malaysia and PNG. However, paper qualifications of successful graduates hardly impress industries. Unsuccessful graduates either take the examinations again or look for lower-level employment positions. There are no placement services to assist graduates, nor have there been any even for industry training, since industry training is not required by the curriculum. Consequently, only a few get hired. Those hired have to be trained for at least three months before being given a regular assignment. Overall, the social rate of return on investment in the project schools is evidently low, except in Malaysia. It is quite evident that almost all strategic activities of the delivery system, primary or support, are either not carried out at all or experience problems in the way they are carried out. Not much have changed since the implementation of the projects. In fact, a good number of industry people and even of the long-serving teachers in Pakistan, PNG, and Sri Lanka think that the delivery system, i.e., their schools, has deteriorated over the years. The initial inputs and momentum achieved by the projects have not been sustained. The organization infrastructure, which spans all the other activities, is one of the weakest parts of the system, particularly management. Any reform should start from hers. The problem, however, has already become systemic. It must be addressed holistically.




impact and Equity



61. Mainly for equity considerations, one of the traditional roles assigned to TEVT is to provide economically disadvantaged and/or intellectually less gifted youths access to highquality and relevant education and training. A profile of the families of final-year students (Appendix 21) indicates that both project and nonproject schools have been performing this role. About half of the fathers of project school students in Malaysia and Pakistan, and more than 85 percent in PNG, have had basic education (10 years or less of schooling). In Sri Lanka, the proportion is 30 percent. In terms of occupation, about 20 percent of the fathers had managerial! professional jobs; the percentage was even lower in PNG, where a large proportion (about 48 percent) of the fathers of project school students were subsistence farmers. About 30 percent of the families in Pakistan, 40 percent in PNG, and 70 percent in Sri Lanka earn less than $1,000 per year (about $83 per month). The average number of children per family is 3-4 in Sri Lanka, 4-5 in Malaysia, and 5-6 in Pakistan and PNG. Access and equity, either geographically or by socioeconomic status, is further facilitated by the provision of dormitories and hostels that enable the families, especially those from remote areas, to save on cost of food and transportation. Thus, ADS's intervention in TEVT has had considerable impact on poverty reduction in addition to meeting the skills requirements of industry. 2. Poverty Reduction

62. The experience in East Asia before the crisis shows that growth can reduce poverty by generating employment and incomes, with labor-intensive growth reducing it even faster. Survey results in impact evaluation studies in other DMCs show significant positive correlation between vocational training and employment/career, vocational training and socioeconomic

improvement, and employment/career and socioeconomic improvement of graduates of ADBassisted schools. Graduates benefited from the projects through greater access to higher quality courses as well as better chances of finding well-paying jobs. The projects were seen to have contributed to poverty reduction by augmenting the income of the families of the graduates. 3. Women in Development

63. Except in PNG, female participation (students and teachers) in TEVT has increased over time as shown in Table 3. With the exception of PNG, the participation of female students in TEVT has grown significantly during the period under study. The highest level of participation is in Sri Lanka; with female students making up about a 40 percent share in total enrollment; the proportion is more than 30 percent in Malaysia, and more than 20 percent in Pakistan and PNG. A closer look at this development, however, reveals that most of the female enrollment is concentrated in the business, commerce, clerical, and secretarial courses. Female participation in technology courses is not substantial, although it may have gradually increased over the years. In the case of teachers, a significant improvement in female participation has taken place in Malaysia. The share of female teachers in PNG has decreased due to the localization of teaching positions (replacement of expatriates by nationals). In Pakistan and Sri Lanka, teaching in TEVT has remained predominantly a male-dominated profession.
Table 3: Women Participation in TEVT

Percentage Share Female Students Female Teachers Malaysia Pakistan PNG Sri Lanka

26.6 21.8

32.2 38.2


21.5 13.4

21.1 28.9

21.6 22.0

30.9 (1982) na

38.5 15.3


TEVT technical education and vocational training, PNG Papua New Guinea, na not available. Sources: Various appraisal reports. project completion reports, project performance audit reports, and country report.





Financial Impact 1. Trends in Educational Finance

64. The relative importance that the governments of the DMCs give to education in general and to TEVT in particular may be gleaned from the long-term financial ratios shown in Appendix 22. In all three ratios, Malaysia has provided the best support in terms of budgetary allocations. PNG showed a steady decline in recent years, particularly for the share of technical education in total education expenditures. Pakistan and Sri Lanka have about comparable ratios for the share of education in the gross national product and in total government expenditures. However, for the share of TEVT in total education, Pakistan's ratio has been declining (resulting in reduced funding for operating expenses, particularly consumables and repair and maintenance), while Sri Lanka's has been slowly increasing. The contrast between Malaysia and the other three countries in support to technical education is clearly evident. That such support has in the end been justified may be partly seen in the high positive correlation between the rapid growth of manufacturing value added per worker (a measure of productivity) and the number of TEVT graduates per year (Appendix 23). Investment in technical education appears to have been partly responsible for the productivity gains experienced by Malaysia's manufacturing sector.

20 2. Recurrent Unit Cost and Cost Recovery

65. The DMCs have a tradition of either free or heavily subsidized education. In Malaysia, education is free through upper secondary, including board and lodging for STS/SVS students. In Sri Lanka, education at all levels is free and a monthly allowance to full-time students is provided in the TCs. In Pakistan, a minimal fee is charged which is less than 10 percent of the unit cost. In PNG, the government pays for 80 percent of the total operating cost of the TCs directly through the budget or indirectly through the National Tertiary Scholarship (NATSHOL).14 The balance comes from self-funded or company-sponsored individuals and some contracted projects with industries. 66. The average recurrent cost per student varies significantly among the DMCs (Appendix 24). At $2,915 per student, PNG is the highest cost-provider. One of the main reasons for this is its very low STR of 6:1. To bring the ratio to a more cost-effective norm of 15: 1, enrollment would have to be increased to about 3,000 students-in which case the cost will go down by 67 percent----or the number of teachers reduced. Localization of staff could also be pursued further, since expatriates still constitute about 22 percent of the teaching staff. The average annual cost for a three-year contract of an expatriate was about $32,000, compared with $5,700 for a national." This presupposes the availability of qualified local staff. 67. In Malaysia, the major concern is the significant difference in the average cost per student between the STS/SVS ($1,633) and the academic schools ($763). With the shift in objective of STS/SVS (para. 12), the two delivery systems have become competing alternatives. The average unit cost of STS/SVS is 114 percent higher than that of the academic schools, but its pass rate is only about 20 percent better. While employers perceive STS/SVS graduates to be Significantly better qualified than those of academic schools, the average salary of the latter has consistently been about 16 percent higher. In Pakistan and Sri Lanka, the low level of average unit cost hardly indicates efficiency; instead it indicates inadequate provision, particularly for operating and maintenance expenses. 68. Except for PNG, the DMCs do not have any significant cost recovery measures in place. Increasing tuition fees has been found to be a very sensitive measure. At the time of the Mission, however, one cost recovery measure was being seriously considered in Pakistan: the "2+1" model. The model proposes a partnership between the polytechnics and industry for a fee during the final year of the 3-year technician course. The prospect of immediate employment after completion is expected to lessen students' insistence on free or highly subsidized education. This model or its variant could be considered for Sri Lanka and PNG as well. There is an urgent need to explore other cost recovery models in view of the increasing difficulty of governments in providing and sustaining adequate funding for TEVT. IV. A. KEY ISSUES

Role of TEVT in the Context of Trade Globalization: Need for a Paradigm Shift

69. The conventional role assigned to TEVT has always been to supply industry with highly trained technical personnel-technicians, operators or skilled workers, and craftsmen. The extent to which the TEVT succeeded in fulfilling this role varied among the DMCs. However, the
141n 1991, NATSHOL accounted for about 81 percent of state-sponsored students. This had dropped to 52.9 percent by 1998. 15WD Scott, Preparatory TA on the Skills Development Project in Papua New Guinea, February 1998.

immediate customer-industry-has been generally unhappy with the results. On the other hand, the corollary role of providing access to educational opportunities for the economically and intellectually disadvantaged appears to have been given more emphasis. Thus, it was common to see, not only in the DMCs but in many other countries as well, the TEVT systems turning out a multitude of graduates from a menu of training programs regardless of quality and the demands of industry. Industry does hire some of them, but has first to provide long periods of on-the-job and/or formal training prior to their regular assignment. The TEVT systems (except those that are industry-sponsored) and industry have largely been operating in isolation from each other. 70. Such arrangements cannot continue in the face of the accelerating globalization of trade. The increasingly intense competitive environment in both the domestic and the export markets will require industries to exploit every possible source of competitive advantage. A major one undoubtedly is the quality of technical personnel. TEVT can be a source of competitive advantage for industry. This is not a new role; in fact, it is simply making good the role traditionally assigned to it. But it entails some major adjustments. To be truly a source of competitive advantage for industry, it may be necessary to overhaul the entire delivery system to achieve a minimum level of quality, and then invest in a number of key institutions to produce a cadre of highly specialized personnel. A paradigm shift is thus needed: from a predominantly "safety-net" orientation to a "source-of-competitive-advantage" orientation, but without necessarily discarding the former. The demands are different, but not necessarily incompatible. There is, therefore, a need to change the emphasis in all of the DMCs.



to TEVT: Key to Sustainability

71. Ownership at the ministry/department level, as well as the institute level, and the development of good governance practices are key ingredients to sustainability. If official policy statements are to be the basis, all the DMCs are equally committed to TEVT. However, the extent to which such statements were backed up by resources has been far from equal. As earlier indicated, Malaysia's ratio of TEVT to total education expenditures has been about three times that of Pakistan, PNG, and Sri Lanka over the years. This is, of course, a question of priorities: how much should TEVT get relative to the other education subsectors, i.e., basic education, general postsecondary education, and higher education? Malaysia decided to consistently give a relatively high share to its TEVT and such decisions appeared to be paying off (para. 65). The other three countries might take a cue from this experience. At the past and present level of funding, their TEVT systems as a whole have been far from a source of competitive advantage that they could be. Specifically, for the project schools-the TCs and the polytechnics-the desired level of internal and external efficiencies could not be sustained after project completion. A critical mass of investment and operating resources is needed in order for the TEVT system to deliver desired results. This calls for a higher level of commitment: from policy to action. C. Development Thrusts Within the TEVT

72. Although ideally the whole subsector would be strengthened, there is a need to prioritize development among TEVT delivery systems according to their three-tiered level of output: lower-level personnel (VTCs) , middle-level personnel (TCs or polytechnics), higher-level personnel (universities or advanced TCs and colleges of technology). There are, of course, certain overlaps in terms of course offerings, but the classification generally holds true among the DMCs. In fact, the different delivery systems fall under different ministries or departments. The need to prioritize is dictated not only by the magnitude of the costs involved, but also by the

changing personnel structure of industry as it develops and employs increasingly more sophisticated technology and requires better-educated and trained workers (Appendix 15). 73. At the level of the project schools, there are a number of issues that each DMC has to address. They are as follows: • Malaysial. With a shift in its objective from "preparing students for work" to "preparing for further studies," there is little now that distinguishes the STS/SVS in terms of objective, curriculum, and output from the technology/vocational and science streams of academic schools. Can its significantly higher unit cost continue to be justified by other considerations, such as access and equity and better quality perception by industry? A set of clear differentiating features needs to be articulated for the STS/SVS or they will soon face an identity crisis. Pakistan. While its industries do need "real" technicians, most of the needs based on discussions with industry leaders are for lower-level personneloperators and skilled workers. This has not been the major area of expertise of the polytechnics. Should it now develop as a major thrust, short courses that are industry-specific in partnership with industries (also as part of cost recovery measures) or should this task be left to the VTCs? Over the longer term, the thrust articulated in Pakistan's Perspective Plan is on quantitative expansion of the polytechnics, despite the projected surplus of its graduates over industry needs. Given the SUbstantial quality gap, shouldn't the focus be on quality improvement of existing polytechnics rather than on quantitative expansion? • Papua New Guinea. TCs have been found to be high-cost, low-quality providers (compared with private providers), catering mainly to the needs of the formal sector. ADS's Employment-Oriented Skills Development Project" will address both higher- and lower-level TEVT and specifically includes the design of linkages between these levels. The need for lower level skills development is also met by other organizations such as NGOs, CBOs, and churches, ensuring a welcome diversity in TEVT activities, rather than a monopoly by the government. Sri Lanka. The ADS-assisted Skills Development Project" will focus on lowerlevel skills for industries and for self-employment, particularly for rural youth including women. This is a shift in focus from the TCs to the VTCs. Should the TCs reposition for this task or should it be left to the VTCs, NGOs, and CSOs? Should the TCs be left to deteriorate further or should further assistance be provided to rehabilitate them in support of the country's small but strategic manufacturing sector?


Size and Quality of the Delivery System

74. Social demand exceeds the capacity of the project schools several times over in the DMCs. The issue then is whether capacity should be expanded to meet social demand. Given that the project schools are primarily designed to produce middle-level personnel for industry, the issues of quantity and quality should come into consideration: is there enough demand for
16 17

Loan 1706-PNG(SF): Employment-Oriented Skills Development Project, for' $20 million, approved on 28 October 1999. Loan 1707-SRI(SF): Skills Development Project, for $18.8 million, approved on 28 October 1999.

23 the graduates and are they of the right quality? If the answer is negative (and at present, there is much to be desired), then quality improvement of existing capacity would be the logical focus. On the other hand, if capacity is not expanded, how else will the excess applicants obtain the education and training they see available from the project schools? Would it not be better just to have them trained regardless of quality and prospects for employment, because then the economy will then have a pool of trained personnel? This is one balancing act that each DMC, considering its particular circumstances, will have to resolve. E. Public-Private Sector Mix in the Provision of TEVT

75. The issue of capacity can be partly addressed by sharing the task with the private sector. In all the DMCs, the Government is the main provider of TEVT. From the results of the study, however, the private TEVT institutions appear to be the more efficient providers. Would it not be cheaper for the Government to meet most of the excess social demand by simply encouraging private sector institutions to increase their share in the provision of TEVT? Future aid donor operations could then focus more on the incentive structure, and quality and efficiency aspects, rather than on quantity in publicly funded TEVT institutions. Various incentives might be considered, such as access to loans or to grants, tax relaxation, teacher training, sharing of facilities, learning materials, and the like. This becomes even more urgent given perennial budgetary constraints of DMC governments. V. A. Overall Assessment CONCLUSIONS

76. ADB's assistance to TEVT in the DMCs had a significant impact for a few years after project completion, but the impact has not been sustained through the years except in Malaysia. Enrollment capacity increased with the establishment of new schools, especially in Malaysia and Pakistan, thus providing access to and promoting equity among the poorer segments of the population. But with no major reinvestment after project completion, the capacity of the project inputs in Pakistan, PNG, and Sri Lanka has gradually dissipated over the years. The course offerings proliferated, but the curricula have not been regularly updated. A majority of the teachers has received no further training since the projects' staff development program. Many of the buildings need repair and only about half of the equipment is operational (depending on the technology area). Even items still operational are not fully utilized because of the lack of consumable materials. The extensive facilities of the TTTCs in Pakistan and Sri Lanka continue to be underutilized, although prospects look more promising under the new policy directions. Industry linkage has remained nonexistent or minimal until recently. Consequently, the internal and external efficiencies of the project institutions have been low. 77. Based on the survey results, long-serving teachers felt that the situation was better in the 1980s than it is at present. Industry people confirm this assessment, indicating that the public TEVT institutions have deteriorated over the years particularly in Pakistan and PNG. Malaysia provided a more optimistic picture, but Malaysia's TEVT institutions, notably the STS/SVS, have fundamental questions as to their raison d'etre as a delivery system. New policy directions and programs for TEVT have already been drawn up and reforms initiated in all the DMCs, including forging stronger linkages with industry. This augurs well for both the TEVT institutions and industry as they face an accelerating globalization of trade in the new millenium. The study confirms the conclusions of the PPARs that the projects in Malaysia were generally successful, while those in the other three DMCs were partly successful.

B. Lessons Learned 1. "One-Shot" Projects Do Not Work: A Long-Term Focus is a Must

78. The one lesson that stands out from the study is that "one-shot" projects do not work. The development cycle of the TEVT subsector and the baseline status from which the projects started were known; it should have been obvious from the beginning that a single project or even two projects spaced several years apart, no matter how well-designed and implemented, could not establish a sustainable system. The requirements Of a long-lasting impact simply cannot be achieved by one project. Given the long program cycle needed for sustained development of the subsector, a series of overlapping projects with consistent core objectives, aiming over a longer period (a decade or more), is needed to make an impact on key subsector indicators while strengthening Government capacity to manage the subsector. This has been the contrasting experience between Malaysia and the other DMCs. With a series of projects, the perennial problem of inadequate funding after project completion could then be partly eased through the projects' provision of incremental recurrent cost allocations. Based on experience, loan covenants requiring the DMC to provide adequate funding after project completion were not enough to ensure sustainability. What this implies is that once an aid donor decides to assist the TEVT subsector, it must be prepared to provide that assistance on a long-term basis. 79. ADB could engage in more substantive policy dialogue with governments and develop a framework for sector development to be implemented over a decade or more supported by continuing financial inputs. However, the length of the long-term horizon period and the proper sequence of successive project interventions may differ according to country-specific context. Taking a holistic approach at the beginning of the first intervention and making a long-term commitment to support a complete program cycle would be in keeping with ADB's character as a development institution. 2. A TEVT System Without Industry Linkage is Untenable

80. The experiences of the DMCs in this study highlight the importance of strong linkages with industry. Operating virtually in isolation from industry, the polytechnics of Pakistan and the TCs of PNG and Sri Lanka have deprived themselves of valuable inputs. (The need for such linkage may not be so urgent in the case of STS/SVS of Malaysia, since the majority of their graduates go for further studies rather than for work). These include not only opportunities for industry exposure of students and teachers alike, but also the built-in feedback mechanism on the type, level, and quality of personnel needed. These are critical inputs in deciding the menu of course offerings and corresponding curriculum content whioh could minimize the mismatch between supply and demand. Even more important, the project schools lack the inputs of industry executives/managers which could have a significant influence on their corporate culture and the way things are done, as clearly demonstrated in the case of the few project schools with active industry participation. Project concepts should incorporate mechanisms to obtain commitment from industries and to engage them as major stakeholders in the development of TEVT. 3. 81. one or makes political Leadership Can Spell the Difference in Performance

In spite of the numerous constraints faced by the project institutions, there are always two in each country that stand out above the rest. It is invariably the leadership that them different. In a highly centralized and bureaucratic environment vulnerable to pressures, the school's leader must possess certain characteristics if the institution is to

25 prosper. Interviews with some of these exemplary leaders reveal that the following characteristics, among others, are critically important: a vision of what the leader wants the institution to be; the willingness to take risks to do what ought to be done even if it does not strictly follow the bureaucratic process; an attitude of not depending only on the government budget; personal courage to stand up to extreme political pressure; ability to mobilize the support of the community (especially the parents and community leaders) to rally behind a cause; ease in dealing with industry people and firm belief in industry participation; creativity and initiative; and, above all, personal integrity. If the heads of project institutions had possessed most of these characteristics, perhaps the project performance, especially in Pakistan, PNG, and Sri Lanka, could have been significantly better, even in the same operating environment. This is a lesson that future projects cannot afford to overlook. C. Follow-Up 1. Actions

For the DMCs a. Packaging a Series of Projects Over the Long-Term

82. Given the present state of their TEVT systems and the need to improve the competitiveness of industry in the face of the prospective zero tariff by year 2020 for developing countries, the DMCs may consider it important to upgrade the TEVT subsectors. A package of perhaps 4-5 projects would be needed, prioritized according to the timing of the development of the various delivery systems (para. 79). b. Assessment of Managerial Corps

83. There is a need to design and implement an assessment program for the TEVT managerial corps, particularly the principals and their understudies, if any, to evaluate their leadership capabilities and potential. Those who do not measure up should be retrained, redeployed, or retired. Indonesia's recent policy of "talent scouting"-the upgrading of school management personnel in terms of selecting those with the best management skills-would be a good model to adopt. Equally important would be the preparation of a succession plan, identifying those next in line, or sourcing from outside with particular bias in favor of those from industry. Certainly, this is easier said than done and would require a strong political will. It is a necessary condition, however, if the project institutions are to have the dynamism required of a successful and responsive delivery system. c. Opening Windows for Industry Participation

84. There are certain areas where industry can participate in the management of public TEVT institutions-at the level of the school Board, if any, or on an Advisory Councilor Committee, either at the level of the school or of a department. One must, however, take into consideration the observed reluctance of school management to involve industry in running schools. In most cases, the reason is that the school management, particularly the head, feels "uncomfortable" dealing with industry. Other school officials are simply overzealous in protecting their turf. In both cases, there may be a need to institutionalize industry participation through legislation, by incorporating the proposed body in the school's charter or by some other means. By itself, though, this would not be enough. A major implementation push from the central level must be exerted down to the level of the schools. Another major consideration to make the plan work is in the choice of industry representatives: they must have both the interest and the time.

26 d. Physical "Facelift" of Campuses

85. The appearance of physical facilities-the grounds and buildings (inside and outside), often reflect the quality of the institution's management. In most of the project institutions, with few exceptions, one cannot fail to notice the litter on the grounds, the untrimmed grass, the graffiti on the walls, the smell of the toilets, the dust on the floor and furniture, the long-idle equipment, the broken windows. If these are the visible signs outside, what would one assume about the systems and procedures, the records, the decision-making processes, inside the organization? What message does it convey to the students, teachers, and the community? These are things that are often overlooked in both project design and implementation. Setting aside some funds to ensure basic housekeeping and cleanliness on each campus would go a long way toward creating an atmosphere conducive to learning. This would also be a good impetus toward cleaning up the internal systems and processes within the institutions. e. Developing a Database and an Information System

86. The need for a comprehensive database and information system comes up in almost all ADB-assisted projects and cannot be overemphasized. In the course of this study, the Mission found the availability of secondary data very much wanting, particularly in Pakistan and PNG. It is time that serious efforts were exerted to develop a database, and to design and install an information system not only for the project schools but for the TEVT subsector as a whole. f. Depoliticization of Project Institutions

87. Politics is accepted as part of all public institutions, but the extent of involvement appears to be particularly intense in the project schools in Pakistan. Because students and teachers are supported by political parties, it has been very difficult for management to enforce rules and regulations, take disciplinary action, enforce academic standards, practice performance appraisal, or initiate innovative programs to benefit the schools. In short, the managers cannot manage. Unless the political element is eliminated, or at least substantially reduced, no amount of reform in the project schools can go far. This would require nothing less than a sincere effort on the part of the national leadership backed up by a vigilant media and the citizenry. g. Identifying Immediately Actionable Matters 88. A number of other suggestions gathered through the survey, FGDs, and interviews can immediately be implemented by the DMCs without waiting for another foreign-assisted project. These include, among others, the following: (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) Integration of entrepreneurship and industry training modules and industrial ecology in the curriculum; Industry attachment of teachers; Strict enforcement of attendance policies (Pakistan); Equitable allocation of student places in TCs (PNG) and polytechnics (Pakistan); Filling of vacant posts (Sri Lanka and Pakistan); Increases in the budget for consumables (Pakistan); Establishment of repair and maintenance units in the four regions or at least in each college (Sri Lanka); Establishment of a Directorate and Board of Technical Education in Balochistan (Pakistan); and

(ix) Use of information technology to improve the efficiency of delivery systems and external efficiency. For External Aid Agencies


89. In line with ADS's new focus to address poverty reduction in the region, undertake poverty analyses during project preparation in order to ascertain the most effective policies and institutions to fight poverty through assistance to TEVT. The challenge is to identify the investment niche in the TEVT subsector under the proposed development thrust focusing the role of TEVT from more of "safety net" to a more balanced "source-of-competitive-advantage" orientation. 90. Make a commitment to support TEVT over the long term through a series of overlapping projects with the same core objectives. 91. In preparing future projects, carefully ascertain the demand for graduates, both from the viewpoints of industry and other users as well as of potential students. 92. In view of low and inadequate operation affordability of project facilities to be provided. and maintenance budgets, consider the

93. Review the thrust of assistance in each of the DMCs. Among the series of projects that the DMCs may package for the long-term,. aid agencies should consider assisting the following: • Malaysia. Upgrade the science, mathematics, and english programs of the upper secondary academic schools in support of the country's drive to develop hightechnology industries, as well as upgrading the VTCs to directly supply skilled workers to industry. Pakistan. Upgrade the quality of existing polytechnics, and develop short courses for skills upgrading that will strengthen linkages with industry, improve utilization of facilities, provide extra income to instructors, and enhance cost recovery. Papua New Guinea. Cooperate in the rehabilitation of the TCs and VTCs, support the reforms already initiated, and establish a framework for an adequate approach to bring TEVT institutions and industry together and make TEVT a common concern. As a second major thrust, convert the curriculum into the CST system to bring the TCs into the mainstream of articulation (system of equivalency) among the different delivery systems. Sri Lanka. Focus on total quality improvement of existing TCs and the conversion of the TC curriculum into CST. This will soon become necessary given the country's relatively fast-growing and modernizing manufacturing sector.

28 APPENDIXES Number Title Page Cited on (page, para.)


Survey Sample Sizes, Focus Group Discussions Conducted and Number of Participants, SchoolslTEVT Institutions Visited, and Number of National Workshop Participants Selected Socioeconomic Indicators of Project DMCs

30 31 32

2,6 2,7 4,12

2 3 4

Summary of Project Objectives and Components Allocation Pattern of Project Costs by Expenditure Item and Sources of Financing Implementation Performance Indicators

38 39 40

4,13 5,14 6,19



Highlights of Focus Group Discussions Enrollment Trends of Project Schools by Project DMC and by Program Social Demand of Selected TechnologylTrade By Project DMC Preparedness of Final-Year Students and Transition Moves Upon Completion Job Search Duration and Main Factor Why Hired Profile of First and Present Jobs of Graduates Need for Training of Graduates Prior to Regular Assignment Average Initial and Present Monthly Salary by Batch Years Structural Shifts in Industry Personnel Demand Changing Technical Personnel Structure of Industry Social Demand vs. Industry Demand Matchup Profile of Teaching Staff in Project DMCs Consolidated Ratings on the Number and Quality of Teachers Areas







52 53 54

9,27 9,30 10,31

10 11




56 57 58 59 60 61

10,33 11,38 12,39 12,40 15,51 16,52


17 18





Cited on (page, para.)

19 20

Summary Assessment on Physical Facilities by Teachers, Final-Year Students, and Graduates Employers' Assessment of Public and Private TEVT Institutions, by Project DMC Socioeconomic Students Profile of Families of Final-Year

62 63

16,53 17,56


64 65

18,61 19,64

22 23

Long-Term Ratios in Educational Finance of Project DMCs Stepwise Multiple Regression Models on Productivity Gains and Investment in the Technical and Vocational Education Sector in Malaysia Average Recurrent Cost Per Student

66 68

19,64 19,66



Respondent I. Survey Institutions (Schools) Teachers Final Year Students Graduates Working Graduates Studying Employers: o Government o Academe o Industry o NGO II. FGDs Number of FGDs Conducted Number of Participants: o Teachers o Students o Parents o Industry/Policy Makers III. Field Visits/Interviews SchoolslTEVT Institution Firms/Industry Association IV. National Workshop Number of Participants


All Countries -P P


Malaysia P

Pakistan -P T







Sri Lanka P


5,273 3,117 1,579 85 128 43 590 327 917 1,954 1,340 614 1,696 1,118 594 164 414 (95) (24) (292) 3 25 280 (120) (111) (13) (31) 31 21 10 87
organization, P vocational schools, T

1,850 60 420 609 447 164 150 (19) (18) (113)

928 35 245 359 289 78

608 25 175 250 158 86

634 29 143 212 150 100 (34) (2) 64

372 24 114 172 62

162 5 29 40 88

597 11 106 274 176 30 (5) (25)

440 127 8b 3 85 21 187 87 160 16

2,192 1,377 28 18 248 146 859 622 923 591 134 (37) (4) (90) (3) 5 53 (21) (24) (8)

681 10 102 237 332

6 52 (18) (18) (16) 12 7

9 133 (64) (49) (13) (7) 7 2 26

42 (17) (20)






6 4 2





PNG = Papua New = technical education . Guinea, and vocational training.


= focus group discussion, NGO = nongovernment = secondary technical schools, SVS = secondary
At present, the total number of public STS/SVS, Malaysia: Pakistan: 78 STS/SVS 58 Pis of which 13 are for women. 7 TCs.

= project, -P = nonproject, = total, TC = technical

= polytechnics,

colleges, TEVT

Excludes 50 lecturers from postsecondary

educational institutions. TCs or Pis are as follows:

Includes Technical Teachers Training College. Note: (69 SVS are in process of upgrading to STS so that by 2002, there will only be STS). "0 "0 CD


Papua New Guinea: Sri Lanka: 35 TCs.

SELECTED SOCIOECONOMIC INDICATORS OF PROJECT DMCs (1980 and 1997 or as indicated beside the figure)

Malaysia 1980 indicator Total Population (million) Rural Population (% of total) Labor Force (million) Employed Labor Force (million) GNP Per Capita ($) Population Below Poverty Line (%) 21.7 44.8 8.6 8.4 4,309 9.6 (1996) 3.1 3.3 5.6 1997 CAGRa ("!o) 2.7 1980

Pakistan 1997 CAGR ("!o) 2.9

Papua New Guinea 1980 1997 CAGR ("!o) 2.0 1980

Sri Lanka 1997 CAGR ("!o) 1.4

13.8 62.3 (1975) 5.1 4.8 1,715

82.6 73.6 (1995) 25.6 24.7 308

135.3 64.1 37.2 35.2 436 34.0 (1991)

3.0 88.1 (1975)

4.2 83.4

14.8 78.0 (1975) 5.0 (1981) 4.1 (1981)

18.6 76.9 6.2 5.6 803 35.3 (1991)

2.2 2.1 2.1 819 1,259 (1993) 21.7 (1996) 3.4

1.4 1.9 6.4


Adult Literacy (o,(,):

Male (1975 and 1996) Female (1975 and 1996) Total (1975 and 1996)

69 47 58

89 78 84

1.2 2.4

35 12 24

50 24 37

1.7 3.4

39 24 62

81 63 72

3.5 4.7

86 69 78

93 87 90

0.4 1.1



W ...... Structure of GOP (constant prices, %):

100.0 22.9 35.8 (19.6) 41.3

100.0 12.1 49.8 (35.7) 38.1

7.0 3.1 9.1 (10.8) 6.5

100.0 30.6 25.5 (17.0) 43.9

100.0 24.4 26.4 (17.9) 49.2

5.5 3.9 6.5 (6.6) 5.9

100.0 (1986) 30.6 30.5 (9.5) 38.9

100.0 (1994) 28.8 39.3 (7.4) 31.9

4.8 4.0 8.2 (1.5) 2.3

100.0 24.5 23.7 (13.7) 51.8

100.0 17.8 32.25 (21.5) 49.9

4.9 2.2 5.2 (6.9) 5.6

Agriculture Industry (Manufacturing only)




Structure of Employment (%):

100.0 37.2 15.5 47.3

100.0 15.2 27.5 57.3
Bank. GDP

3.3 -2.0 6.8 4.5 = gross
domestic share). product,

100.0 52.7 14.5 32.8

100.0 46.8 10.4 42.8 = gross
national product

2.1 1.4 01 3.8

100.0 (1981) 45.6 9.9 44.5

100.0 35.4 16.2 48.4

1.9 0.3 5.1 2.4

Agriculture Manufacturing others
data available or not calculated. annual growth ADB



- = no

= Asian




= compounded

rate based on absolute 1998. Volume XXIX.


(not on percentage


equal male and female

adult population

"0 "0
CD ::J



of Basic Data: ADB Key Indicators.

a. X·


Loan No. 476-MAL

Date Approved 3 Nov 1980

Total Cost at Appraisal ($ m) 80.00

_. __ ..__ ._----------Objectives Components

To provide training facilities to increase the supply of craftsmen to the workforce.

Site development and construction of 9 secondary vocational schools (SVSs) Provision of an equipment repair center (ERG)

To provide greater access to upper secondary education and greater equity of educational opportunity

Provision of equipment and furniture for project schools and the ERC Provision of fellowships to upgrade the skills of teachers and educational administrators Construction and provision of equipment of 9 SVSs, one of which will house an ERC Fellowships to upgrade SVS teachers

673-MAL 20 Dec 1983 145.50

• •

To provide additional training facilities to increase the supply of craftsmen to the workforce To improve the efficiency, effectiveness and relevance of vocational education To provide greater access to upper secondary education To promote equality of educational opportunity among all regions and people of the country To increase the number and quality of trade-skilled entrants to the workforce to help overcome the country's present shortage of craftsmen


• •

Consultancies to identify and specify maritime training courses and facilities

840-MAL 1 Sep 1987 171.91

"0 "0

CD ::J

Construction of 12 SVSs and 2 ERCs





Loan No.

Date Approved

Total Cost at Appraisal ($ m)



To support social and educational policy reform through improved access to upper secondary education, qualitative improvement in curricula and teacher training, improved utilization of facilities, and development of skills for selfemployment

Upgrading of 24 existing SVSs

Provision of equipment and furniture for the 12 new SVSs, 2 ERCs, the Technical Teachers Training College (TITC) and the existing 24 SVSs Fellowships for SVS teachers Consultancies for the development and implementation of educational improvement Construction of 8 new STSs

• •
1355-MAL 1995 238.40



To improve the quality of technical and vocational education (TVE) in Malaysia, to prepare students for further engineering and business education, and to meet the emerging manpower needs of industry and commerce To increase access to TVE throughout the country by expanding the capacity of the TVE system To enhance the internal efficiency and cost effectiveness of the TVE by strengthening management systems and staff development

Upgrading and expansion of 9 STSs and 31 SVSs
"0 "0


Upgrading and strengthening the TTTC

a. co






Loan No.

Date Approved

Total Cost at Appraisal ($c_r_nL_) _.

Objectives • •

Components Strengthening the 4 ERCs Other measures to support policy reforms and strengthening management capacity Establishment of 4 new STSs offering engineering subjects and piloting the use of "smart" technology




To improve the quality and expand the capacity of the technical education system in support of increasing the technology intensity and efficiency of production To achieve these immediate objectives: improving the quality of technical education including management, curriculum, and delivery methodologies strengthening staff development and teacher training expanding and upgrading facilities and equipment for technical education in general and for information technology in particular

Upgrading of 17 SVSs into STS and provision of physical facilities and equipment to offer technical electives

Strengthening of technical education organization, management, and delivery

"0 "0 CD ::J






Loan No.

Date Approved

Total Cost at Appraisal ($ m)



Strengthening staff development particularly through (a) teacher training programs to enhance pedagogical and technical skills related to new learning technologies, and (b) management and staff training at the school level for principals, administrators, and support staff Establishment of a National Technical Teachers Training College (NTTTC) Provision of facilities and equipment at 11 existing polytechnic institutes (10 for men and 1 for women) Establishment of a new polytechnic for women at Karachi Strengthening of quality and relevance Enhancement of teacher quality Upgrading facilities of selected polytechnics (43 out of 58)


29 Oct 1979


• •

To support the Government's efforts to improve the quality of technical education To provide additional facilities to increase the supply of technicians

• •

1373-PAK 1995 78.00

To improve the efficiency, effectiveness, and relevance of technical education To improve the quality of technical education and enhance the employability of polytechnic graduates by moving from a supply-oriented to a demand-driven polytechnic system

• •

eN 01

Improvement in external efficiency Introduction of new technologies Improvement of labor market linkages

Date Total Cost at __:L::.:o::_:a;c_n_N_o_" Approved __ Appraisa!l~!!!L


.. Object . :_civ.:_ce_c_s •

~C:_o.:_cm.;:_:..cp..::..o;;_:n..::..e;;_:nt;;_:s~ _ Building of institutional capacity Strengthening planning and management Strengthening research and development


26 Nov 1981


To improve the quality of teaching in postGrade 10 technical and vocational institutions

Upgrading and modest expansion of the facilities, equipment, and furniture of 7 technical colleges and 2 secretarial colleges Establishment of TTTC

To increase the output capacity of certain skills training areas to cope with anticipated increased demand for skilled workers To improve the quality and increase the output of apprentices and technical trainees being trained under the Department of Works and Supply

Establishment of an integrated Apprentice Training Center (A TC) and upgrading the accommodation provided at provincial centers for apprentices Establishment of an NTTTC


30 Sep 1982


To improve the quality and efficiency of technical, craft and commercial training provided by the Ministry of Higher Education through its technical colleges (TCs)

Upgrading of the equipment and other facilities at 10 TCs Provision of science laboratories and related equipment at a further 10 TCs

"'0 "'0 CD




CD 0'1

Date Total Cost at Loan~N~o~.~ ~A~p~p~r~o~v~ed~~A~p~p~r~a~is~a~I~($~m~) __





21 Apr 1988


To improve the training of manpower needed for Sri Lanka's economic development by enhancing the quality and efficiency of technical education offered by the Ministry of Higher Education through its Technical Education Department








Total Component Civil Works Furniture, Equipment, and Institutional Materials Fellowship Consultancy Others Services $m



Pa2ua New Guinea

Sri Lanka $m









516.89 178.79 20.85 55.76 46.90 819.19 57.17 37.91 914.27

56.5 19.6 2.3 6.1 5.1 89.6 6.2 4.2 100.0

468.16 96.65 13.07 33.21 19.24 630.33 54.58 37.91 722.82

64.8 13.3 1.8 4.6 2.7 87.2 7.6 5.2 100.0

25.37 47.31 4.83 8.36 17.09 102.96 1.80 104.76

24.2 45.2 4.6 8.0 16.3 98.3 1.7 100.0

7.35 7.10

25.3 24.4 32.7 17.6 100.0

16.01 27.73 2.95 4.68 5.44 56.81 0.79

27.8 48.1 5.1 8.1 9.4 98.6 1.4 100.0
w en

9.51 5.13 29.09

Total Base Cost Interest/Other Charges Contingency (Ongoing projects) Grand Total Financing
o ADB o Others





o Government

Grand Total % Share in:
o Total project cost o ADB lending

547.25 350.96 16,06 914.27

59.9 38.4 1.7 100.0

498.77 215.80 8,25 722.82

69.0 29,9 1,1 100.0

26.02 78,74 104.76

24.8 75,2 100.0

9.78 16,00 3.31 29.09

33.6 55.0 11.4 100.0

12.68 40.42 4,50 57.60

22.0 70,2 7.8 100.0

100.0 100.0

79.1 61.5

11,5 22.4

3,2 4.6

6.3 11,5

- = no data available or not calculated, ADB = Asian Development Bank.
a Being undertaken by Australian Agency for International Development at the time of project implementation, which was then deemed sufficient.

Sources of Basic Data: appraisal report, project completion reports, project performance audit reports.

"0 "0







PERFORMANCE (1980-1998)


Loan No. 476-MAL 673-MAL 840-MAL 1355-MAL 1596-MAL 419-PAK 1373-PAK 551/552-PNG 585-SRI 887-SRI - = no

Year Approved 1980 1983 1987 1995 1997 1979 1995 1981 1982 1988

Currency Depreciation (Appraisal to Completion) 15.1 12.3 2.5

Total Project Cost ($ m) Variance Actual (%) Appraisal 80.00 145.50 171.91 238.40 127.00 93.81 63.91 199.67 ongoing ongoing 26.32 ongoing 29.10 26.45 31.15 = Malaysia, -11.8 nil -30.8

ADB Loan ($ m) Utilization Appraisal Actual Rate (%) 20.00 58.00 68.76 72.00 40.00 19.76 21.69 62.35 ongoing ongoing 18.24 ongoing 16.00 15.85 24.58
New Guinea, SRI

Implementation Period (mos.) (Effectivity to Completion) Appraisal 60 65 54 72 60 Actual 69 66 Slippage +9 +1 +18

+17.3 -56.1 +16.2

98.8 37.4 90.7

ongoing ongoing 146 ongoing 78 104 80


31.00 78.00


21.00 60.00 16.00 16.10 36.00


58 72


25.8 56.1 47.5 = Asian

33.00 26.47 45.00
Development Bank, MAL

100.0 98.5 68.3 = Sri

60 65 60

+18 +39 +20

w (0

data available or not calculated, ADB

= Pakistan,

= Papua

Sources: appraisal reports, project completion reports, project performance

audit reports.

."0 "0




40 Appendix 6, page 1 HiGHLIGHTS A. Background OF fOCUS GROUP DISCUSSIONS

1. Focus group discussions (FGOs) were held in various places in each of the project countries with teachers, final-year students, industry executives and policy makers, and, in one case, with parents in Quetta, Pakistan. The FGDs were attended by 8-15 participants; in Pakistan there were two FGOs with 23 participants. The discussions usually lasted between 2.53.0 hours. The FGOs provided qualitative inputs to supplement and/or validate the findings of the quantitative survey. While in most cases there were common findings across the project country, there were also a number of findings that are unique to a specific country. In such cases, the country where a finding applies is indicated. B. Teachers 1. Primary Objec~D\!e the Delivery System of

2. In Pakistan, Papua New Guinea (PNG), and Sri Lanka, the teachers were unanimous in saying that the primary objective of the polytechnic institutes or technical colleges is to prepare students for "wage employment," although some students do actually proceed to higher education and a few go for self-employment. In Malaysia, however, the primary objective of secondary technical schools (STSs) and secondary vocational schools (SVSs) has already shifted from "preparing students for employment" in the 1980s to "preparing students for higher education" in the 1990s. This came about in response to the increasing knowledge requirements for modern technologies employed by Malaysian industries. 2. Curriculum: Scope, Content, and Relevance

3. In all the project countries, the teachers pointed out that the curriculum of most courses had not been updated (since as far back as 17 years ago in PNG) to include the latest technology in computer application, telecommunications, etc. The curriculum also does not include an industry training component or any training for entrepreneurship. The revised curriculum in Pakistan is theory-intensive, beyond the comprehension of most students, and requires upgrading of teachers.


Student Admission,

Class Size, Attendance,

and Dropout


A different pattern emerged in each of the project countries, as follows: • Malaysia. Average class size ranges from 30-40 students. The average daily attendance rate is high, at about 95 percent for STSs and 90 percent for SVSs, because the schools provide accommodation for students. Dropout rate is 10 percent at most. Pakistan. Average class size is 50 students, but some classes have as many as 100 (Civil Technology in Quetta). On the other hand, attendance is also a major problem, particularly in Karachi and Quetta where it is as low as 30 percent, although in Lahore and Peshawar, it is 50-80 percent. In women's polytechnic institutes, attendance is much better at about 80-90 percent. The requirement of 70-80 percent

41 Appendix 6, page 2 attendance before one is allowed to take the Board examination is not strictly enforced. The dropout rate is low because everybody is allowed to go back to school regardless of performance. • Sri Lanka. For technology courses, the average class size is 15-20 students, but for non-technology courses, it is 30-40. Attendance rate is high, at about 90 percent daily, but the total number of class days per year is significantly reduced due to many public holidays and extracurricular activities. The dropout rate is high, as much as 50 percent, especially for technology courses. The main reason cited was financial: as soon as they get basic skills students look for jobs in order to help their families.

5. The number of teachers is generally adequate except in certain courses such as machining, electronics, and automation in Malaysia; accountancy and Math using the English medium in Sri Lanka; woodworking and carpentry in PNG. In Pakistan, the number of sanctioned teaching posts is adequate, but about 30 percent are not filled. Except in Malaysia, there is no continuing staff development for teachers in the project countries, although many of them underwent some training under their respective Asian Development Bank (ADB)-assisted projects in the 1980s and early 1990s. Generally there is not much difference between the teaching methods they employ-the traditional lecture type with some workshop/lab practiceand those their teachers used when they were students. Workshop/lab practice is limited because of lack of consumables and students. In Pakistan, students do not take workshop/lab practice seriously because it is not part of the Board examination. 4. Workshop/Laboratory Equipment

6. With the exception of Malaysia, the workshop and laboratory equipment in the project countries is old, outdated, and insufficient. Some 40-60 percent is no longer operational due to poor care and handling, lack of know-how and/or initiative to maintain, and the perennial lack of funds to buy parts or pay for repair services. There have been no major additions since the implementation of ADB-assisted projects. Ironically, there is some equipment that has never been used from the beginning, because the teachers had not been trained in its operation. In Malaysia, the equipment in STS/SVS is deemed adequate. The STS/SVS were better equipped than the general academic schools. 5. Textbooks and Other Learning Materials

7. Textbooks are generally inadequate across the project countries. In some courses, there are no textbooks at all; so students have to rely on teachers' notes and handouts, which are sketchy. Most existing books are old editions. Consumable materials for practical exercises are also inadequate, particularly in Pakistan, or are not available at the time they are needed. 6. Gaps Between Intended, Implemented, and Achieved Curriculum

8. The extent to which the intended curriculum (as designed by the authorities) is implemented by the teacher (in the classroom or workshop) and achieved (or learned) by the students varied among the project countries as indicated by the teachers' assessment, shown in the table below. Different reasons were cited to explain the gap between what is intended for the students to learn and what they actually learn (last column of the table). In Malaysia, the implementation level is quite high for both STS/SVS and the general academic schools, but

42 Appendix 6, page 3 levels of achievement are affected adversely by students at the latter: the main complaint of the teachers in the general academic schools is the wide variances in the intellectual capacity of its students, i.e., the mix of very slow learners and fast learners, brought about by the policy of automatic promotion. In Pakistan, the situation appeared different among cities/provinces, but Lahore and Peshawar are quite similar. Karachi and Quetta are also similar, but are worse off: the teachers explained that the implementation gap is mainly due to lack of consumables to perform practical exercises, serious absenteeism and nonenforcement of attendance rules due to political pressures, allowing everyone to sit in the Board examination regardless of attendance and performance. The teachers in Sri Lanka explained the gap as due to too many holidays, bad weather, lack of equipment and materials for practical exercises, heterogeneous intellectual capacity of students, and deficiencies in the teaching ability of the teachers themselves.

Country Malaysia Pakistan: Lahore and Peshawar Karachi and QueUa Papua New Guinea Sri Lanka

Intended vs. Implemented (%)

Implemented vs. Achieved (%)

Intended vs. Achieved (%)

90-95 80-90 50-75 80-90 80-90

70-90 60-80 50-60 75-85 75-80

65-85 50-70 25-45 60-80 60-75


industry Linkage

9. There is little or no linkage between the schools and industries in all the project countries. The teachers are not knowledgeable about the possible forms of cooperation with industries. Management committees that are supposed to be in place in the technical colleges in Sri Lanka and PNG are not active. Institute management committees are currently being organized in Pakistan's polytechnic institutes.


in the teachers' assessment, the following

10. In order to close the gap indicated recommendations were put forward: a.

Curriculum. Existing curricula need to be revised and updated, making them better attuned to the needs of industry. In-plant training should be made part of curriculum requirements; entrepreneurship and work ethics should be included (Sri Lanka); the teaching of English for a specific purpose should be treated as a special project (Sri Lanka). Curriculum review and revision must be a continuing activity with the participation of teachers and employers.

43 Appendix 6, page 4 b. Student Admission. Admission must be based the grade obtained in the Matric exam and entry connections (Pakistan); available student places equitable and not reserved for those in privileged on merit determined by test rather than political must be accessible and positions (PNG).


Class Size and Attendance. Class size should not exceed 50 in theory and 25 in practicals (Pakistan); class size should be reduced, preferably to 20 students, especially in vocational subjects (Malaysia); rules and regulations regarding attendance, discipline, promotion, etc., must be strictly enforced (Pakistan). Teachers and Staff Development. Competencies of teachers should be upgraded through continuing staff development; vacant posts should be filled promptly (Pakistan); review promotion system and promotion must be based on merit (Sri Lanka). Equipment and Equipment Maintenance. Workshop and laboratory equipment should be upgraded quantitatively and qualitatively; equipment maintenance centers should be established in each of the four regions (Sri Lanka). Instructional Materials. Adequate updated textbooks, manuals, teaching aids, and consumable materials must be provided; funds for consumables must be increased to at least three times of the present allocation (Pakistan). Student Assessment. The examination question papers should not permit open choice (which permits selective study) and should emphasize application of concepts (Pakistan); the boards should conduct full-fledged practical performance exams instead of the existing "viva voce" (Pakistan); unless a student passes in all subjects, he should not be promoted to the next class (Pakistan). Industry Linkage. School-industry linkage should be strengthened through official government policy; teachers and students should be placed in industrial plants for training. Management. Management of the College should be strengthened by recruiting key people with extensive industry experience plus some academic background (Sri Lanka). Others. A Directorate and Board for Technical Education should be established for the development and expansion of technical education in Balochistan (Pakistan); the interference of politically-motivated student unions should be eliminated by replacing them with literary societies (Pakistan); parent-teacher associations should be redirected to discuss the academic progress of the students (Pakistan).








44 Appendix 6, page 5 C. Final-Year Students 1. Choice of Courses

11. In all the project countries, the students cited two main reasons for choosing the course: personal interest or liking of the course and job prospects after completion or, in the case of Malaysia, ease of entry into institutions of higher learning. The students of women's polytechnics in Pakistan stated that their choice of courses-architecture, dress design and dressmaking, electronics, and computer-was based on their belief that such courses are appropriate to the temperament of women and also hold the potential for self-employment. Students in Sri Lanka pointed out that they know of many who spent long years in degree courses who are still jobless. In PNG, business courses are popular because students can use them when they return to their villages after course completion. 2. Curriculum

12. The students generally judged that their course curricula need revrsion and updating especially the trade courses; which do not yet cover new topics such as digital technology and computer applications. They also felt that practical exercises is lacking and that there is no industry training component. In PNG, the students felt that the one-year pre-employment technical training course is too short and should be increased to two years and that the 4-year apprenticeship should be reduced to 2-3 years. In business courses, the time allotted for computer use is minimal and often the computer is not available (Sri Lanka). 3. Teachers and Teaching Methods

13. A majority of the students in the project countries found their teachers to be dedicated, attentive to student needs, and knowledgeable about how to teach but lacking in practical skills and knowledge of the latest technology, such as information technology. In PNG, the students observed that the expatriate teachers are more committed than the nationals. Except in Malaysia, teachers seldom use audio-visual and other teaching aids (most of their schools don't have them in the first place). 4. Equipment

14. The equipment in Pakistan, PNG, and Sri Lanka is old, outmoded and insufficient, at a level far below what industries have Much of it in most technology areas is out of order. In Pakistan, however, the equipment in the newly introduced technologies such as biomedical is about 80-90 percent operational. In Malaysia, the students are generally satisfied with the available equipment and facilities. 5. Textbooks and Instructional Materials

15. Textbooks are inadequate. Students have to supplement their readings from reference materials that often are not available (some technical colleges in PNG have no library) or when available, are usually in English which the students have difficulties reading (including Malaysian students). Consumable materials are very inadequate, except in Malaysia, thus reducing the time to learn and practice skills, even when some equipment is available.

45 Appendix 6, page 6 6. Industry Linkage

16. There is no linkage between schools and industry except occasional trips to industrial plants. Students of STS/SVS in Malaysia do not feel confident that they would do well in the employment market because their course contents are too elementary for Malaysian industries although they believe they are relatively better off than their counterparts in the academic schools. Sri Lankan students emphasize the need for industrial training for the following reasons: first, it is needed for job hunting because employers usually ask whether they have practical work experience; and, second. the industry exposure will help students decide whether they should opt for employment or not after graduation. 7. Plans After Graduation

17. In PNG and Sri Lanka, majority of the students plan to seek wage employment but a good number plan to start their own business (self-employment) and about the same number will proceed to further studies. In Pakistan, about one-third plan to seek wage employment, about half to proceed to further studies, and the rest to opt for self-employment. In Malaysia, a great majority plan to proceed to higher studies, hoping to enter the polytechnics or Mara Institute of Technology, as most of them want to become engineers, architects, pilots. or accountants. 8. Suggestions

18. The students gave the following suggestions in order to improve the quality of education and training of their institutions: a. Curriculum. Upgrade curriculum to include new technology and train the teachers accordingly. Increase pre-employment technical training courses to two years and reduce apprenticeship to 2-3 years (PNG); increase duration of teaching for each subject (Malaysia); include computer numerically controlled training in the machining course, computer application for the National Certificate, electrical and computer applications in the construction technology program, and computer hardware and other electronic instruments in the electronics course (Sri Lanka). Teachers. Provide further training to teachers both in knowledge and teaching skills; fill vacant teaching posts promptly (Pakistan); improve students-teacher interaction (Malaysia). Equipment and Facilities. Provide new and adequate equipment, including furniture and basic amenities such as toilets; establish repair and maintenance unit in each college (Sri Lanka). Books and Other Instructional Materials. Provide new textbooks, journals, and magazines in the library; provide adequate funds for consumables for practical exercises; increase the budget for consumables to about four times the present level (Pakistan).




Appendix 6, page 7 e. Industry Training. Formalize in-plant training with private sector participation; place students in industry for training, which should be an integral part of the Diploma in Associate Engineering course (Pakistan).


Parents (Ouetta)' 1. Choice of Courses

19. Fathers ordinarily decide what courses their daughters will take but they consider their daughters' aptitudes and interest as well as which job prospects after completion could give them a better life. If money were no constraint, majority of the fathers would prefer their daughters to take degree courses; some would still send their daughters to polytechnics, but with the idea of eventually taking up engineering. 2. Need for Girls' Polytechnic

20. The need for Girls' Polytechnic is urgent because now is the age of technology and there are very few technical people in Balochistan. Among the courses, they want their daughters to take architecture, dress design and dressmaking, computer technology, electronics technology, etc. The secretarial course is not preferred because secretaries' eventual workplaces are maledominated. 3. Location

21. Although the need for polytechnic is urgent, they strongly feel that the location is not proper. They said that parents in the area, through informal discussions, generally oppose the location. Even the present Education Secretary, they said, is against the location. They said that the location was decided by bureaucrats without consulting the parents or representatives of the community. Among the problems they cited were as follows: (i) the boys often hold rallies and demonstrations and every time they do so, they block the roads for hours, leaving the girls stranded; there is a mosque nearby where women go; oftentimes the boys from the polytechnic tease and chase them. If they do this to older women, they would be worse-behaved with the young girls. Such incidents could easily lead to tribal conflict. Likely Outcome



22. The fathers were unanimous in saying that they would not send their daughters to the polytechnic at its present location; that between sending their daughters to the polytechnic at its present site or to general education schools, or even to have them remain uneducated, they


A speciai FGD was conducted for parents in QueUa primarily to get some indications as to their sentiments regarding the location of the Girls' Polytechnic, which is beside that of the boys. In the whole of Pakistan, boys' and girls' schools are separate. At the time of the FGD, the construction of the Girls' Polytechnic was underway in the said location. This FGD was participated in by 13 fathers (the mothers, they said, were not in a position to decide), some of whom were landlords, businessmen, teachers, government employees, etc.

Appendix 6, page 8 would prefer either of the latter options, although their daughters have a great desire and their fathers for them to enroll in the polytechnic for women. 5. Suggestions

23. The fathers suggested that since the buildings are already under construction, they might as well be completed and then used for technology courses for the boys. New buildings for the girls' polytechnic should be put up in another place using government land for free. They suggested any of the following possible sites: Shabaz Town, Jinnahu Town, or Cantonment Area. E. Policy Makers/Industry 1. Role of Technical Representatives Education and Vocational Training

24. The role of technical education and vocational training (TEVT) in the project countries is said to be supplier of personnel for the needs of industries. In practice, however, TEVT managers hardly bother to monitor what the needs of industries are. The focus has been on providing educational opportunities to the poor, early school leavers, and the unemployed. This is particularly true of PNG, where the informal sector accounts for about 85 percent of the economy; thus, the thrust of TEVT in PNG at this time is to provide skills especially to the early schoolleavers (Grade 8 and below) for some livelihood in the informal sector. In Sri Lanka, the major thrust is self-employment. In Malaysia, a paradigm shift appeared to be underway toward making TEVT directly responsive to the needs of industries, but without disregarding the access and equity considerations. The underlying objective is to help make Malaysian industries competitive. 2. The Demand Side

25. Changes in Business Environment Over Time. Industry people were one in saying that the business environment has significantly changed since the 1980's, particularly in Malaysia. Customers now are more informed and demanding than before. They have higher expectations and are quality- and price-conscious. And they can behave this way because there are many alternative suppliers. The ongoing globalization of trade under the aegis of the General Agreement on Tariffs and Trades !World Trade Organization is bringing about more and more intense competition. In Pakistan, among the industries expected to be seriously affected are soap and detergents, chemicals, engineering products, and textiles and garments. In Malaysia, its export-oriented industries are bracing for an even higher export markets. PNG's formal sector, small though it is, is also bracing for more competition. In order to survive, industries must be customer driven and their productivity must steadily increase through the adoption of new and better technologies. 26. Changes in Personnel Requirements. Changes in technology have also brought about changes in personnel requirements not only in terms of paper and skills qualifications but in their mix as well. The current technical personnel structure or the "engineering team" for electronics industries based in Malaysia is about 1 engineer to 1-4 technicians to 10-25 operators. In Pakistan, the corresponding structure for telecom industries is about 1:1-3:10-15. The structure varies among different types of industries but the emerging pattern is one of decreasing relative need for operators and increasing relative need for technicians and

48 Appendix 6, page 9 engineers. In Pakistan and Sri Lanka, where the manufacturing sector is much less developed, the greater need is still for lower-level personnel, i.e., skilled workers/operators. Even more so in PNG with its even smaller manufacturing sector. But the trend is expected to continue in the future. Operators are expected to be multi-skilled and able to handle various tasks in the production line. This means that they need to be gradually upgraded to assume some functions traditionally carried out by technicians. In Malaysia, industries have started in this direction through programs variously titled "Career Pathing," "Transformation," or "Road Map from Operators to Technicians." At the same time, the technicians are expected to assume duties that are currently being undertaken by engineers, i.e., sustaining production work, while engineers are expected to concentrate on research and development. 3. The Supply Side: Delivery System and Its Output

27. Generally, industries across the project countries do not have a high regard for the TEVT system and its output. The perception is that the facilities and equipment are outdated, the teachers have no industrial experience and their delivery is theoretical, the actual number of days of teaching is very much decreased because of poor attendance rate and many holidays, and the TEVT management cannot discipline their students. In Pakistan, PNG, and Sri Lanka, most graduates of the polytechnics or technical colleges fall below the target level, i.e., that of technician in the right meaning of the word. They need 3-6 months, additional training before they can be productive in a factory. Another problem is their attitude. Since they are holders of a diploma, they do not like to dirty their hands anymore; thus in many cases, industries prefer to hire unskilled individuals and train them in their own training centers. While humbly acknowledging the deficiencies of their respective TEVTs, the authorities assured the industry representatives of the ongoing reforms being undertaken and sought the assistance and support of the latter. 28. Industry's perception of the delivery system in Malaysia is not as negative as in the other three countries. Among the observations: (i) The teaching of curriculum emphasizes theory, which is good, but it is also important to develop analytical skills and the ability to apply the theories they learn. The use of English is important to the industry because of the globalization trade, but the educational system does not give much importance to it. of



The introduction of engineering drawing and engineering technology in the academic schools is seen as a good move that would eventually merge the two delivery systems in upper secondary level, i.e., the STS/SVS and the general academic schools. A change in the curriculum as well as the perception of the vocational schools is needed. In developed countries, vocational schools are rated highly while in Malaysia, they are considered to be for the underachievers. Industry representatives acknowledged the continuous government to improve the educational system. efforts made by the



Appendix 6, page 10 4. Linking Supply and Demand

29. Each side is unfamiliar with what the other is doing or what it has to offer. In recent years, however, partly as a result of the pressure brought about by the globalization of trade, TEVT authorities and industries in all the project countries have started working more closely together. Industry people expressed willingness to make time available, accept students and teachers for training, give donations in cash or in kind, and provide experts to teach or provide consulting services, among others. TEVT authorities, on the other hand, have committed themselves to creating openings for industry participation in the management of public TEVT institutions and for industry support to private TEVT institutions.


Appendix 7


Country/Program Malaysia TVE Technical 0 Vocational 0 Skills 0 Short Courses 0 Academic 0 Science Vocational/Technology 0 Others 0 Pakistan a Diploma of Associate Engineer B Tech Papua New Guinea PETT Extension Technician Part-Time Sri Lanka Higher National Diploma National Diploma National Certificate National Craft (Trade) Short Courses






CAGR (1980-1998)

18,031 5,365 12,666

19,601 5,614 13,987

30,122 5,277 24,845

47,886 5,582 31,436 10,462 406 405,662 79,029 29,090 297,543 33,500

41,975 18,735 19,676 2,906 658 553,659 125,924 50,431 377,304 35,000

4.8 7.2 2.5 (34.8) 17.5 5.0 2.4 20.1 5.4 5.2

229,208 82,464 146,744

307,238 95,843 211,395 18,160

317,625 77,186 240,439 24,135

3,131 (1982) 1,806 1,184 141

2,997 1,687 924 386

2,081 1,043 348 260 430 18,004 (1992) 3,063 1,187 9,185 2,415 2,154

2,005 1,034 312 249 410 20,366 3,910 1,522 10,815 3,1375 444

2,166 1,147 520 213 286 15,013

(2.3) (2.8) (5.0) 2.6 (4.9) (1.4)

19,058 (1981) 2,672 1,903 8,831 4,444 1,208

21,455 3,250 1,644 9,270 1,787 5,504

26 10,667 3,957 363

2.8 (1.6) 1.1 (0.7) (6.8)


- = no data available or not calculated, CAGR = compounded PETI = Pre-Employment Technical Training, TVE = Technical
1995 and 1998 are estimates from survey data.

annual growth rate based on absolute values (not on percentage share), Vocational Education .

Transferred to Sri Lanka Institute of Advanced Technical Education; 1996 enrollment: 13,444.

Sources: appraisal reports, project performance audit reports, country reports.


Appendix 8

SOCIAL DEMAND Country Malaysia


AREAS BY PROJECT DMC Low Beauty Culture Farm Machinery Child Care Agriculture Ornamental Horticulture

Electrical Electronics Civil Construction Automotive Business ManagemenU Commerce Electrical Electronics Information Technology

Catering Welding/Fabrication Air Conditioning Fashion Design Bakery/Confectionary


Automotive Mechanical Civil Construction Refrigeration and Air Conditioning Automotive Civil Construction Electronics Commerce Information Technology Metal Farming/ Machining Refrigeration and Air Conditioning

Papua New Guinea

Information Technology Mechanical Electrical Office Management and Language Draftsmen Apprenticeship Electronics Automotive Electrical Wood Related

Sri Lanka

Agriculture and Livestock


Based on mean rating by teachers on a scale of 1-5: High below.

= 3.75

and above, Medium

= 3.00-3.75,


= 2.90



Appendix 9


Option of Preparedness I. Assessment (mean ratings) A. By Teachers For further study For wage employment For self-employment For day-to-day living N B. By Final Year Students For further study For wage employment For self-employment For day-to-day living N II. Transition Moves (%) (Plan)


Malaysia -P



Pakistan -P


PaE!ua New Guinea P -P t


Sri Lanka -P t

4.00 3.42 2.44 2.57 239

3.67 3.28 2.53 2.64 174

4.17 * 1.62 0.86 0.69

3.70 3.94 3.06 3.18 111

4.07 4.24 3.88 3.81 28

1.99 * 1.68 3.48 * 2.34 *

3.32 3.60 2.62 3.05 87

3.73 4.00 3.18 3.73 11

1.88 1.59 1.96 2.64 *

3.61 4.25 3.08 3.11 128

3.37 4.22 3.16 3.25 93

1.78 0.34 0.57 0.86

4.02 2.43 1.66 2.18 359

4.03 2.34 1.78 2.18 250

0.08 0.96 1.30 0.02

3.42 3.55 2.90 3.11 144

3.58 3.70 3.33 3.48 40

0.85 0.85 2.06 * 1.72

3.76 4.07 2.27 3.63 185

4.04 4.43 1.91 3.93 47

1.79 2.74 * 1.79 1.65

3.96 4.29 2.87 3.83 587

3.72 2.85 * 4.18 1.56 2.53 3.25 * 3.53 3.31 * 236
P -P




A. Final Year Students Go for further study Seek employment Start own business No plan as yet Total N

93.9 96.1 90.8 1.2 0.5 2.5 3.6 3.0 1.4 4.4 2.6 100.0 100.0 100.0 359 250 609

35.4 10.7 20.0 55.7 85.3 75.0 2.7 3.3 1.3 5.0 5.7 100.0 100.0 100.0 212 150 40

47.3 47.6 45.8 43.0 40.7 52.1 1.7 2.1 8.0 2.1 9.5 100.0 100.0 100.0 237 48 237

25.4 26.7 21.9 62.4 60.5 67.5 9.3 10.4 6.3 2.9 2.4 4.2 100.0 100.0 100.0 854 617 237

B. Graduates (Actual) Went to further study Sought wage-employment Started own business Worked as unpaid family worker Total N

46.1 42.9 51.9 48.3 50.2 44.9 2.8 0.6 2.0 4.2 2.5 3.6 100.0 100.0 100.0 447 289 158

10.7 85.3 2.7 1.3 100.0 150

6.8 92 1.1 100.0 88

4.0 6.5 93.4 91.3 96.6 0.7 1.1 2.0 1.1 3.4 100.0 100.0 100.0 151 59 92

24.2 22.5 27.4 66.8 66.4 67.5 7.9 10.4 3.4 1.1 0.7 1.7 100.0 100.0 100.0 842 547 295

- = no

data available 1 " ill prepared,

or not calculated, 2

= unprepared,

N 3

= number of respondents, = fairly prepared, 4 = well
in mean ratings at

= project,

= nonproject,

= total.


• Marked t-vatues

denote significant


= 0.05.

= very

well prepared .

JOB SEARCH DURATION AND MAIN FACTOR WHY HIRED (percent) Mala~sia P Pakistan -P Total P -P Pa~ua New Guinea Total P -P Total Sri Lanka P -P

Classification A. Job Search Duration Immediately Within 6 months Between 6 and 12 months More than 12 months Total N


. 61.1 25.0 5.6 8.3 100.0 360

56.6 27.6 7.6 8.3 100.0 228

68.9 20.5 2.3 8.3 100.0 132

40.0 20.7 21.3 18.0 100.0 150

40.3 11.3 29.0 19.4 100.0 62

39.8 27.3 15.9 17.0 100.0 88

62.8 21.6 6.1 9.5 100.0 148

63.0 18.5 6.5 12.0 100.0 92

62.5 26.8 5.4 5.4 100.0 56

29.9 16.1 16.7 37.3 100.0 472

25.7 14.5 18.0 41.8 100.0 311

37.9 19.2 14.3 28.6 100.0 161


Main Factor Why Hired Performance Endorsement in text and interview of relative or friend 47.9 27.4 8.8 11.2 4.8 Total N 100.0 420 41.4 35.3 9.0 9.0 5.3 100.0 266 59.1 13.6 8.4 14.9 3.9 100.0 154 100.0 150 100.0 62 100.0 88 70.0 16.7 12.0 1.3 79.0 8.1 9.7 3.2 63.6 22.7 13.6 62.2 24.3 4.1 6.1 3.4 100.0 91 62.6 24.2 4.4 4.4 4.4 100.0 91 61.4 24.6 3.5 8.8 1.8 100.0 57 40.0 34.7 19.1 2.1 . 4.1 100.0 467 36.4 36.4 20.7 1.6 4.9 100.0 308 47.2 31.5 15.7 3.1 2.5 100.0 159

0'1 W

Special training or qualification

Shortage of applicants Others

- = no data available or not calculated, N = number of respondents, P '" project, -P = nonproject.




Appendix 11


Occupational Group A. FirstJob Executive/M anagerial Supervisory/F oreman Engineers/Professionals Instructors Technicians/Associate Professional Operators/Craftsman Clerical Sales Others Total N % Proper Match B. Present Job Executive/Managerial Supervisory/F oreman Engineers/Professionals Instructors Technicians/Associate Professional Operators/Craftsman Clerical Sales Others Total N % Proper Match

6.5 2.9 1.8 4.5 2.5 1.3 5.2 8.2 49.6 9.7 5.8 12.9 10.7 22.1 3.2 0.4 11.0 41.7 100.0 100.0 154 280 58.9 66.0


1.2 15.7

3.3 9.8

3.8 9.4

16.4 2.4 50.8 36.1 4.9 8.4 1.6 3.6 1.6 1.2 8.3 31.4 100.0 100.0 61 83 86.9 89.7

67.7 15.1 17.2

68.3 6.7 20

5.0 100.0 100.0 93 60 89.8 84.8

14.7 20.2 43.2 33.4 21.4 24.8 3.8 6.1 3.8 1.4 100.0 100.0 449 213 67.6 68.9

15.0 22.0 5.5 29.1 15.0 1.6 3.9 0.8 7.1 100.0 127 81.0

18.5 10.8 1.5 12.3 7.7 1.5 12.3 3.1 32.3 100.0 65 84.7

7.3 19.5 24.4 39.0 4.9

18.0 36.0 4.0 16.0 8.0 2.0

6.7 21.6 18.0 5.7 53.4 13.6 10.2 60.0 4.0 14.0

4.0 6.0

4.9 16.0 100.0 100.0 41 50 98.4 95.2

1.1 4.0 100.0 100.0 88 50 87.5 81.6

14.7 20.2 41.9 48.0 17.1 12.0 6.7 4.0 4.8 6.0 100.0 100.0 105 50 61.8 64.9

= no data available or not calculated, N = number of respondents, P = project, -P = nonproject, PNG = Papua New Guinea.


Appendix 12

(percent) Mala~sia P -P Pakistan -P P PNG -P Sri Lanka -P P

Item A. Need for Training Before Assignment Yes No Total N B. Type of Training, if yes On-the-Job Formal Both Total N C. Duration of Training 1 month or less 1-2 months 3 months or more Total N


67.6 32.4 100.0 37

92.0 8.0 100.0 113

96.8 3.2 100.0 31

98.6 1.4 100.0 69

100.0 100.0 4

88.9 11.1 100.0 18

77.2 22.8 100.0 79

93.2 6.8 100.0 44

44.0 16.0 40.0 100.0 25

55.8 1.0 43.3 100.0 104

53.3 13.3 33.3 100.0 30

92.6 7.4 100.0 68 100.0 100.0 4

35.3 17.6 47.1 100.0 17

61.7 6.7 31.6 100.0 60

52.7 2.6 44.7 100.0


28.0 12.0 60.0 100.0 25

20.2 37.5 42.3 100.0 104

3.3 10.0 86.7 100.0 30

7.4 14.7 17.9 100.0 68

25.0 75.0 100.0 4

29.4 23.5 47.1 100.0 17

43.9 14.0 42.1 100.0 57

14.3 2.4 ·83.3 100.0 42

= no data available or not calculated, N = number of respondents, P = project, -P

= nonproject,

PNG = Papua New Guinea.





Malaysia P Average t~ Salary 30 65 116 76 287 116.4 129.6 185.9 190.8 167.2 -P Average Salary 122.5 170.9 196.1 222.2 193.4

Pakistan P Average Salary 30.9 41.8 41.8 104.3 45.9 -P Average N Salary 11 28 19 29 87 22.9 58.4 46.9 48.6 48.1

Batch Years A. Initial Salary 1982-85 1986-90 1991-95 1996-99 Total B. Present Salary 1981-85 1986-90 1991-95 1996-99 Total

N 16 25 64 53 158

N 23 20 9 8 60


Papua New Guinea -P P Average Average Salary N Salary

Sri Lanka P Average Salary 23.7 53.7 56.0 52.6 53.9 -P Average Salary

N 1 11 161 244 417


7 56 125 188

54.5 59.9 58.4 58.7

29 62 115 68 274

312.2 232.3 340.6 245.4 310.1

16 25 64 51 156

336.4 488.3 374.9 291.2 361.8

24 20 9 8 61

156.9 123.7 82.7 120.0 130.2

11 28 19 29 87

205.5 173.8 130.1 76.0 135.7

1 11 161 244 417

73.7 75.7 74.4 57.0 64.3

0 7 56 125 188

0 95.4 87.4 62.9 71.4



C. Average Salary
Differential Initial Present: 15.7% (-P higher) 16.7% (-P higher)
or not calculated, P

4.8% (-P higher) 4.2% (-P higher)

8.9% (-Phigher) 11.0% (-P higher)

- = no data available

= project,


= nonproject.


SHIFTS IN INDUSTRY PERSONNEL DEMAND (percent) Pakistan 1997 Papua New Guinea 1980 1997 CAGR Sri Lanka 1997 CAGR

Group Professional, Technical and Related Workers Production and Related Workers Others Total N ('000) 1980

Malaysia 1997














29.3 64.5 100.0 4,835

34.5 51.2 100.0 8,400

4.3 1.9 3.3

24.3 72.7 100.0 24,710

25.4 69.6 100.0 33,840

2.4 1.8 2.1

21.7 72.8 100.0 4,119

23.4 66.7 100.0 5,502

2.5 1.4



- = no data available,

CAGR compounded annual growth rate based on absolute value (not on percentage share), N total employed labor force, Sources of Basic Data: Asian Development Bank Indicators, International Labor Organization Statistics on Employment, Labor Force Survey Reports of Project Countries.





Low Technology

Medium Technology

High Technology



1 : 2 : 20 E T

1 : 3 : 10

1:5 :4



Engineers: Bachelors, Masters, Ph. D. degree holders Technicians (also called technologists or associate engineers): Certificate or Diploma holders Operators (also includes skilled workers and craftsmen): Trade or Craft Certificate holders Development thrust within TEVT

"'0 "'0
CD :::J






VS. INDUSTRY DEMAND (mean ratings)


Occupational Technology



Pakistan t

Group 3.02 3.50 3.58 2.97 2.90 2.78


3.66 3.79 3.47 2.94 2.89



Pa~ua New Guinea 10 t SO

Sri Lanka

2.80 3.45 3.44 3.72 2.39 3.5



A. By Occupational Supervisory Technicians Operators Craftsman Clerical Sales N B. By Technology

2.97 0.46 3.55 0.50 2.73 5.69* 1.71 11.86* 2.82 0.88 2.35 3.78*

3.07 3.33 3.23 2.92 1.95 2.41

4.47* 3.44* 1.16 0.09 3.12*

2.72 3.23 3.17 3.36 3.08 3.45

3.35 3.47 3.22 3.96 3.00 2.96

2.40* 0.93 0.13 2.14* 0.27 1.42

2.05 2.80 2.49 2.99 2.36 2.0

4.74* 4.39* 6.24* 5.04* 0.19 2.85

4.14 3.25 4.12 4.09

3.00 2.93 3.81 3.87 3.87 3.61 3.08 3.35 9.71* 2.69* 3.16* 2.06*

3.11 3.33 3.96 4.2 4.22 3.53 3.72

2.52 2.59 3.93 4.08 3.95 3.78 2.71 3.39 2.52* 4.70* 0.20 0.98 0.99 1.83 4.54*

3.10 3.63 3.27 3.14 3.86 2.82

3.61 3.30 4.00 3.84 3.92 3.67 3.54 3.95 1.44 0.92 1.94 1.98* 0.21 2.32*

3.76 3.12 3.88 4.10 3.45 3.55 3.56


3.38 3.72 3.57 3.75 3.17 3.46 3.42 2.88 2.74* 4.16* 3.14* 2.75* 1.66 0.86 0.88

Automotive Civil Construction Electrical Electronics Information Technology Mechanical Refrigeration and Aircon Telecommunication N











- = no data available or not calculated,

= industry

demand as rated by industry supervisors/managers, N

= number

of respondents, SD

= social

as rated by teachers from project schools. * Marked t-values denote significant differences in mean ratings at a. = 0.05.

"'C '0 CD








Appendix 17

Mala~sia -p P Pakistan -p P Pa~ua New Guinea -p P Sri Lanka -p P

Classification I. Education
Certificate Diploma Bachelors Masters Doctoral


26.8 22.0 41.7 8.5 0.9

24.9 5.3 65.3 4.5

0.6 2.2 92.0 5.2

0.9 29.8 41.2 27.2 0.9

6.9 44.8 48.3

9.8 68.3 15.9 3.7 2.4

9.1 9.1 63.6 18.2

60.4 18.1 16.7 3.5 1.4

57.4 15.9 22.8 1.0 3.0

Total N U. Industry Experience (Years)
None 3 years or less 4-5 6-10 11-15 15 or more

100.0 585

100.0 245

100.0 174

100.0 114

100.0 29

100.0 82

100.0 11

100.0 144

100.0 101

41.3 21.5 7.4 17.1 7.2 5.5

71.4 24.5 2.0 0.8 0.8 0.4

75.3 21.3 1.7 1.7

53.6 21.4 16.1 3.6 5.4

50.0 16.7 11.1 22.2

1.3 10.1 7.6 51.9 17.7 11.4

33.3 16.7 50.0

28.1 10.3 11.0 26.0 13.7 11.0

30.4 13.7 12.7 21.6 13.7 7.8

Total N III. Teaching Experience (Years)
None 3 years or less 4-5 6-10 11-15 15 or more

100.0 526

100.0 245

100.0 174

100.0 114

100.0 28

100.0 79

100.0 79

100.0 146

100.0 102

0.5 7.1 5.4 23.4 21.2 42.5

4.9 5.3 26.1 19.6 44.1

10.3 9.2 40.8 16.1 23.6

10.5 5.3 21.9 21.9 40.4

25.0 25.0 17.9 14.3 17.9

12.8 14.0 26.7 25.6 20.9

27.3 18.2 36.4 18.2

2.1 4.8 0.7 17.8 20.5 54.1

2.0 8.8

21.6 24.5 85.3

Total N IV Age (Years)
21-30 31-40 41-50 51-60

100.0 591

100.0 245

100.0 174

100.0 114

100.0 28

100.0 86

100.0 11

100.0 146

100.0 102

7.6 38.9 41.7 11.8

10.2 49.2 38.1 2.5

16.7 58.0 23.0 2.3

14.0 36.0 34.2 15.8

20.7 44.8 13.8 20.7

3.8 53.2 38.0 5.1

50.0 50.0

15.1 56.1 28.8

5.1 33.7 41.8 ~9.4


100.0 576

100.0 244

100.0 174

100.0 114

100.0 29

100.0 79

100.0 10

100.0 139

100.0 98

- = no dataavailableor not calculated,N = numberof respondents, = project,-P P

= nonproject.

Final-Year Students t P Graduates Teachers

Appendix 18

Teachers Project Malaysia Number of Teachers Quality of Teachers N Pakistan Number (If Teachers Quality of Teachers N Papua New Guinea Number of Teachers Quality of Teachers 3.23 3.28 87 4.09 4.25 11 3.17" 1.94 3.30 4.08 3.85 3.80 3.91 3.53 3.79 3.21" 1.79 Country P -P

( Longitudinal)







4.02 4.11

3.90 4.08

1.60 0.43 4.00 3.79 2.93 •

3.74 3.86

3.80 3.92

0.52 0.71








3.43 3.74

4.00 4.10

3.09 • 1.89 3.89 3.65 1.90

3.35 3.38

3.19 3.35

0.75 0.13








3.45 3.89 188

4.21 4.74

5.10 • 6.98 • 4.03 91 4.08 60 0.34

3.73 3.20

3.40 4.20 17

1.16 0.91

Sri Lanka Number of Teachers Quality of Teachers N


3.44 3.53

3.48 3.33

0.22 1.41

3.82 4.14

3.66 4.07

2.23 • 1.19 4.07 4.10 0.53

3.48 3.48

3.55 3.22

0.37 1.43








- = no data available or not calculated, N = number of respondents,

P = project, -P = nonproject. • Marked t-vatues denote significant differences in mean ratings at a = 0.05. No. of teachers - Scale: 1 :: very inadequate, 2 = inadequate, 3 = fair, 4 = adequate, 5 = very adequate. Quality of teachers - Scale: 1 = very poor, 2 = poor, 3 '" fair. 4 good, 5 very good.




Appendix 19


Teachers Project Country Malaysia Classrooms Workshops/Laboratory Library Dormitory/Hostel N Pakistan Classrooms Workshops/Laboratory library Dormitory/Hostel N Papua New Guinea Classrooms Workshops/Laboratory Library Dormitory/Hostel




Graduates -P P

1980 1998


3.61 3.62 3.30

3.34 3.30 3.20

3.43 * 4.05 * 3.70 1.29 3.59

3.47 3.35

3.30 .. 1.99 ..

3.78 3.78 3.71

3.28 3.71 3.81

0.08 0.89 1.23

3.64 4.07 3.11

3.56 3.68 3.38

0.86 0.95 4.05 "






1.79 3.69·' 0.91


3.16 3.04 3.07

4.17 4.04 3.52

5.93 * 5.88 .. 2.61 2.75 .. 2.23

3.20 2.90

2.67 .. 2.85 *

3.76 3.58 3.70

3.56 3.06 3.56

3.57 3.34 3.41

3.08 2.89 3.11

3.53 " 2.09 .. 1.82



3.61 .. 2.97 .. 2.63 7.29 .. 2.76 188



0.41 0.33 0.45


3.01 2.61 1.44

4.09 3.73 3.70 11

4.11 3.2

7.95 * 0.74

3.71 3.43 2.64

3.78 3.36 2.75

3.56 3.40 2.31

2.88 2.8 1.31 17

2.42 " 1.96 ., 2.79 '"




3.13 .. 7.05 * 9.25 ..

Sri Lanka Classrooms Workshops/Laboratory Library Dormitory/Hostel N

3.28 3.26 3.75

3.34 3.03 3.44

0.42 1.50 2.91 2.62 .. 1.78

2.76 1.57

1.48 3.34 .,

3.97 3.71 3.84

3.80 3.13 3.11

3.3 3.3 3.8

3.2 3.1 3.3

1.38 2.37 .. 4.96 ..








- = no data available

or not calculated. N

= number

Scale: 1 " very inadequate. 2 :; inadequate, 3

= fair, 4:;

of respondents, P

= project,

= nonproject.

adequate, 5 :; very adequate.

, Marked t-values denote significant differences in mean ratings at a

= 0.05.


OF PUBLIC AND PRIVATE TEVT INSTITUTIONS BY PROJECT DMC (mean ratings) Pakistan Pu Pr Papua New Guinea Pu Pr t Sri Lanka Pu Pr

Item A. On Responsiveness To needs of students for employable skills (social demand) To needs of industry (industry demand) B. On Status (% Distribution) Deteriorated Seriously Deteriorated Somewhat No Change Improved Somewhat Improved Significantly Total N

Malaysia Pu Pr




























2.0 4.1 19.6 58.8 15.5

4.7 11.5 66.2 17.6

15.5 16.5 22.7 40.1 5.2

3.4 13.7 32.9 48.2 6.8

17.9 39.3 14.3 28.5

9.1 18.2 13.6 45.5 13.6

8.1 17.9 19.5 41.5 13.0

0.9 3.5 26.1 56.5 13.0


100.0 100.0 148

100.0 100.0

100.0 28


100.0 123



- = no data available or not calculated, N = number of respondents, Pu = public, Pr = private. Scale: 1 = very unresponsive, 2 = unresponsive, 3 = fair, 4 = responsive, 5 = very responsive.
* Marked t-values denote significant differences in mean rating at a = 0.05.

'0 '0 CD







Appendix 21


Classification I. Years of Schooling of Fathers No schooling 1-6 7-8 9-10 11 or more Total

II. Occupation of Fathers Managerial/Professional Production/Skilled Workers Farmer/Fisherman Clerical Sales/Business/Services Unemployed/Retired Others Total N

21.9 13.7 12.5 51.9 100.0 345

16.9 10.4 13.6 59.1 100.0 245

18.3 10.0 10.0 7.0 27.0 37.5 47.7 42.5 100.0 100.0 170 40

18.0 4.2 37.6 31.3 4.2 4.8 2.1 7.7 25.9 41.7 -. 17.8 13.8 18.8 70.3 100.0 100.0 100.0 189 48 601

7.7 7.2 20.1 65.0 100.0 234

22.4 19.7 16.5 11.3 19.4 10.7 100.0 345

19.7 29.5 4.9 8.6 26.2 11.1 100.0 356

18.7 27.5 3.6 7.5 11.1 10.0 5.8 12.5 36.1 27.5 21.5 15.0 3.2 100.0 100.0 40 172

12.2 6.3 31.6 7.9 20.8 14.9 48.1 25.0 21.4 14.8 16.7 10.5 5.7 12.6 9.4 7.4 10.4 3.9 8.2 " 10.9 100.0 100.0 100.0 189 48 421

12.0 17.4 29.5 11.4 14.0 15.7 100.0 166

m. Average

Family Income Per Year (current US$) 1.2 3.5 26.7 27.5 62.8 65.0 3.5 2.5 2.3 5.0 100.0 100.0 40 172 5-6 3-4 11.3 13.6 9.1 10.7 8.0 22.0 22.7 24.7 31.8 23.3 22.7 100.0 100.0 150 150 5-6 5-6 13.4 23.8 37.0 23.9 1.3 0.5 100.0 610 3-4 15.8 23.5 34.2 25.2 0.4 0.9 100.0 234 3-4

201-500 501-1,000 '1,001-3,000 3,000-5,000 ;::5,001 Total N IV. Average No. of Children

5.1 41.0 23.2 30.7 100.0 354 4-5

1.2 35.7 24.9 38.2 100.0 250 4-5

== no data available or not calculated. N = number of respondents, P

= project, -P = nonproject, PNG = Papua New Guinea.


Mala~sia Year A Pakistan 8 Paeua New Guinea A B C Sri Lanka A







1980 1981 1982 1983 1984 1985 1986 1987 . 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

5.6 6.5 7.0 6.0 5.6 6.6 6.8 6.3 5.8 5.9 6.0 5.8 5.8 5.5 5.7 5.3 5.0

13.2 13.0 14.6 14.0 15.0 17.7 16.3 16.3 16.4 16.3 16.7 16.2 15.5 16.3 18.1 17.0 17.1

18.3 11.8 19.3 23.8 16.4 15.7 13.5 16.7 18.4 18.7

1.6 1.7 2.2 2.3 2.4 2.1 2.2 2.1 2.2 2.1 2.1

5.7 6.4 8.3 7.7 8.8 6.3 8.7 7.4 6.1 7.0

5.9 5.8 5.6 5.7 4.5 3.6 2.9 3.1 3.2 3.4

5.0 4.8 4.1 4.6 5.1 5.7 5.4 5.8 5.3

13.6 13.3 12.2 11.7 11.9 14.2 15.1 16.7 15.4

16.6 15.3 12.7 10.8 11.8 14.0 11.1 9.7 7.1 9.5 6.0 5.9

2.7 2.5 2.7 2.6 2.4 2.9 3.1

6.6 6.7 6.7 6.2 6.2 6.5 7.0

0.8 1.1 1.5 1.7 2.2 2.3 . 5.9




2.5 2.7 6.6

3.6 3.5 3.4 3.5 4.9 3.9










- = no data available or not calculated, A = total education budget C = technical education budget as % of total education budget

as % of gross national product. B

= total education

budget as % of national budget,


Appendix 23, page 1 GAINS AND


Model Dependent Variable Y1: Independent Variables: X1 Number of technical workers per 100,000 employed labor force (1983-1996) Annual output of technical vocational education (TVE) graduates (1983-1996) Annual recurrent expenditure for TVE sector (1983-1996) MVA Manufacturing value-added per worker (MVA)


Least-squares fit equation:

= 1,518,871

+ 48.30 TVEGRAD
(8.024) 64.378 Significant F 0.001

Multiple R R2 Adjusted R2 Correlation

= =


0.918 0.843 0.830




Matrix MVA Tech Worker 0.561 1.000 0.534 0.644 TVE Grad 0.918 0.534 1.000 ' 0.812 TVE Expend 0.778 0.644 0.812 1.000

MVA Tech Worker TVE Grad TVE Expend 8. Model 2

1.000 0.561 0.918 0.778

Dependent Variable Y1: Industry value-added per worker (IVA) (Industry includes manufacturing. construction, mining and! quarrying, and utilities) Independent Variables: X1 Number of technical workers per 100,000 employed labor force (1983-1996) X2 Annual output of TVE graduates (1983-1996) X2 Annual recurrent expenditure for TVE sector (1983-1996) Least-squares fit equation: IVA

= 12,099

+ 0.45 TVEGRAD .(6.625) F = 43.89 Significant F 0.001

Multiple R R2 Adjusted R2



0.886 0.785 0.767



Appendix 23, page 2

Correlation Matrix

MVA Tech Worker TVE Grad TVE Expend 1.000 0.456 0.886 0.671

Tech Worker 0.456 1.000 0.534 0.644

TVE Grad 0.886 0.534 1.000 0.812

TVE Expend 0.671 0.644 0.812 1.000

AVERAGE RECURRENT COST PER STUDENT (At current prices in local currency and US$)

Mala~sia RM Year 1980 1985 1990 1995 1997 TVE


Pakistan PRs


Papua New Guinea


Sri Lanka SLRs


Academic 670 1,096 1,243 1,789 2,147

Academic 308 501 460 714 763





1,861 3,877 3,313 4,410 4,595

855 1,561 1,225 1,761 1,633

5,101 (1986) 6,611 10,752 (1993)

306 305 383 6,998 (1998) 2,915

11,849 13,361

231 226

Technical Assistance, PRs TVE = technical and vocational education. a Project polytechnics only. b Estimate from PPTA prepared by WO Scott, February 1999, Vol. 2, Appendix 9, p. 125. C Estimate from PPTA prepared by COMP, April 1999. d 1990-1997 excludes management costs and polytechnics.

- = no data available or not calculated, K = Kina, PPTA = Project Preparatory

= Pakistan Rupees,

= Sri Lanka Rupees,

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