Financing Technical and Vocational Skills Development Reform

Abstract

Many low- and middle-income countries face strong pressures to expand their technical and vocational education and training (TVET) systems and enhance their quality. Funds are obviously needed to achieve this, but while there tends to be a lot of focus on how much funds are needed (or, rather, the focus is usually on how little funds TVET currently receives), there tends to be much less of a focus on how TVET funds are allocated within the sector and the role that various allocation approaches can have in incentivizing TVET reform priorities (e.g., access, equity, quality, relevance, employment outcomes). This chapter addresses the following key questions: Where does TVET funding come from? How are TVET funds spent? How are TVET funds currently allocated? What roles can financing play in achieving TVET reform and national policy objectives? How can countries create the right environment for TVET financing?