Chile

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

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

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

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

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

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