THE ROLE OF TVET PROVIDERS IN TRAINING CHILEAN VISION AND EXPERIENCE OVTA SEMINAR CHIBA, JAPAN

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1 THE ROLE OF TVET PROVIDERS IN TRAINING CHILEAN VISION AND EXPERIENCE OVTA SEMINAR CHIBA, JAPAN Pablo Lazo General Directorate of Economic International Relations Ministry of Foreign Affairs

2 CHILEAN MAIN ECONOMIC FIGURES POPULATION INCOME PER CAPITA (PPP) US$ (IMF) INTEREST RATE 7.25% UNEMPLOYMENT RATE (July 2008) 8.4% INFLATION (IPC) 9.5% GDP GROWTH (Average ) 5.5% GDP PROJECTED GROWTH 2008 (IMF) 4.1% GOODS EXPORTS (2008) US$76.6 billion GOODS IMPORTS (2008) US$56.0 billion FISCAL SURPLUS (2008) 6.7% Estimation

3 Canadá FTA S NETWORK Unión Europea: Alemania, Austria, Bélgica, Dinamarca, España (I. Canarias), Finlandia, Francia (Mónaco, Guyana Francesa, I. Guadalupe, Martinica y Réunion), Grecia, Italia, Irlanda, Luxemburgo, Países Bajos, Portugal (I. Madeira y Azores), Reino Unido, Suecia Chipre, Eslovaquia, Eslovenia, Estonia, Hungría, Letonia, Lituania, Malta, Polonia y Republica Checa, Rumania y Bulgaria. EFTA (Noruega, Islandia, Suiza, Liechtenstein) China Japón EEUU México Guatemala El Salvador Costa Rica Panamá Ecuador Cuba Honduras Nicaragua Colombia Venezuela Turquía India Malasia Singapur Corea del Sur Vietnam Brunei Perú Brasil Bolivia Paraguay Uruguay Argentina Australia Nueva Zelanda

4 CHILE FINANCIAL CRISIS

5 PUBLIC TRESOR ACTIFS

6 INNOVATION COUNCIL Innovation Council. Created in 2006 to generate priorities for expending incomes of mining royalty. Aim: to promote public-private partnerships. Recent introduction of a new tax incentive for private-sector R&D. Lack of skilled human resources is a major bottleneck for Chile's social and economic development. Vocational training is being encouraged as well as improved training in management skills and business leadership.

7 CLUSTERS WITH HIGH POTENTIAL Aquiculture Outsourcing (Offshoring) Pork and poultry industries Tourism Copper Mining Finantial Services Fruitgrowing Processed foods (wine and others)

8 INNOVATION Innovation on investment, science and technology has grown 20% $ millions to initiatives promoting innovation, science and technology Innovation Fund por Competitiveness will have US$190 millions more than 21,3% from % from its resources will go to enhance main clusters

9 INNOVATION FUND

10 SCOLARSHIP ABROAD

11 HUMAN CAPITAL

12 INCOME DISTRIBUTION Ingreso Autónomo por hogar y per cápita (2006) Decil Yprom Tamaño Hogar Promedio Mínimo Máximo I , II , III , IV , V , VI , VII , VIII , IX , X , /10 PC 53 Veces

13 CHILEAN STRATEGIC ORIENTATION Open, increasingly competitive economy International trade policy is centerpiece of economic development Competitiveness and social cohesion Investment in human resources Instruments for capacity building and export enhancement. Focus on new and renewed sectors of the economy Strengthen SMEs Modernize public institutions

14 TRAINING SYSTEM National Training and Employment Service (Sence): To regulate and control the system Cap:1% tax exemption in one year to be reimbursed if expended in VT

15 PRINCIPLES Subsidy to demand of VT Descentralization of decisions Subsidiary rol of State Private offer of services Competition between VT direct executors

16 OVTA PROVIDERS Two types of private organizations: OTIC (Intermediate Technical Organisms for Training) Sectors or territorial based (15 Companies at least) OTEC (Technical Organisms of Execution) Supply vocational training independently

17 OTIC INTERMEDIATE TECHNICAL ORGANISMS FOR TRAINING At least 15 companies meeting voluntarily, Non profit With 900 permanent workers Earning US$600 (about) Examples: Construction Chamber Industrial Development Society Metallurgic Industry Technological Industry

18 OTEC TECHNICAL ORGANISMS OF EXECUTION OF TRAINING Registered by SENCE Non profit To supply VT through VT actions or courses Examples: Universities, Professional Institutes; VT Centers Financed through the tax exemption or public agencies

19 VT AIMS To improve salaries To improve companies productivity To improve competitiveness of the country Reduction of gaps between workers

20 MAIN RECOMENDATION OF MELLER COMMISSION Need for more scholarship Tax exemption system is regressive Therefore to create a bonus on VT

21 FIGURES ABOUT CHILEAN PERFORMANCE SYSTEM (2007) Occupational Level Number of Actions Hours of participants Number of Participants Public Investment Private Investment Total Investment 1 Executives Professionals Intermediate chiefs Administratives Qualified Workers Semi Qualified Workers Unqualified Workers

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