Facilitating Official Development Assistance(ODA) of Vocational Education and Training in Central Asian Countries for the Realization of a New Asia
Community( Ⅱ )
Young Real Choi, Young Ho Oh, Moon Gon Park, Bok yeong Park
The purpose of this study is to propose guidelines and policies to facilitate ODA (Official Development Assistance) in the field of VET (Vocational Education and Training) in Asia. More to the point, this study aims to propose a new model and in-depth policies to facilitate previously government-led VET in ODA through a new model (PPP: Public-Private Partnership) in which corporations and social partners can work together.
This study is based on the concept of a New Asia Community designed to facilitate ODA in the field of VET.
Southeast Asia (ASEAN) and Central Asia were selected as the areas in which the study unfolded. Specifically, the researchers chose 5 countries in ASEAN( Vietnam, Indonesia, Cambodia, the Philippines, and Laos) and 3 countries in Central Asia(Kazakhstan, Uzbekistan, and Mongolia).
This study is scheduled to unfold over 3 years. During the first year, basic research on the 5 ASEAN countries was conducted. In the second year, more in-depth research on the ASEAN countries and basic research on Central Asian countries will be conducted. In the third and final year, more extensive research will be carried out on the Central Asian countries.
This year's portion of the study is divided into 2 parts. While the first part involves in-depth research on the 5 ASEAN countries, the second part covers basic research on 3 Central Asian countries. The methods employed in this study include a review of the available literature, interviews, workshops, seminars, and domestic and foreign surveys.
There is no agreed definition of PPP in the ODA field. It is defined differently according to each nation and organization. However, the common concept among the definitions is the voluntary participation of more than 2 actors who have joint ownership in a project.
This survey aims to shed some light on the CSR activities of South Korean corporations in ASEAN countries, and to offer advice about PPP involving ODA. The main finding is that it is difficult to induce corporations to participate in CSR activities in developing countries such as ASEAN. The survey showed that small and middle-sized manufacturing corporations recognize the need to participate in CSR activities as a means to enhance their corporation's image, but that they do not have any real intention to participate in it. Inducing corporations to participate in CSR activities will require the reinforcement of corporations' recognition of CSR. There is also a need to inform and educate South Korean corporations abroad about CSR.
During the second year of the research, the researchers are expected to find an adequate PPP model pertaining to VET for ASEAN countries through on-site visits and an additional survey. Through this process, a follow-up managing model(model 1) and an integrated model(model 2) were identified. While Model 1 consists of traditional ODA and taking responsibility for follow-up endeavors (management of completed projects), Model 2 focuses on the process and participation of non-government parties in steps ranging from the creation of demand to follow-up activities. The Korean government provides financial assistance from implementation to follow-up.
In order to facilitate ODA pertaining to VET in the five ASEAN countries covered in the present study, the following general and specific policy implications are introduced. In terms of general policy implications, there is a need to increase corporations' recognition and participation in ODA-related CSR activities. Second, the fiscal year should be prolonged to over one year. Third, flexibility should be introduced in terms of the fund matching ratio in that a 50:50 split between government and non-government partners is not required. Fourth, the PPP budget should be increased and investment in kind should be allowed. Fifth, administrative procedures should be streamlined. Sixth, private firms should be consulted in order to ensure effective and efficient PPP. Seventh, multilateral PPP including international donors is also required. Eighth, the relevant infrastructure should be expanded. Ninth, social welfare and VET should be considered in PPP.
The following policy implications pertaining to the conduct of PPPs in the five ASEAN countries should be focused on. In the case of Vietnam, there is a need to equally emphasize the quality of vocational education and training. In Vietnam, vocational education and training institutions are established based on Vietnam's own budget or external aid. Meanwhile, in the case of the Philippines, the emphasis should be on short-term training. The educational level of young people in the Philippines is relatively high, and the ratio of VET institutions is significant. However, the youth unemployment rate is almost 15%. The main direction of VET in the Philippines should be focused on reeducating young people with higher education to develop the techniques that corporations require. In the Indonesian case, both vocational education and training should be simultaneously promoted. The industrial structure of Indonesia is relatively stable, and the portion of VET is also relatively higher than that of other countries. As such, the framework and structure of VET is well structured. Cambodia must focus on short-term vocational training as well as promoting long-term vocational education. The rapid flow of industrialization has made it such that Cambodia needs to train people from farming areas to meet the needs of industry. Laos should focus on establishing a solid foundation for VET. As FDI in the general manufacturing industry remains practically nonexistent, the need for VET continues to be low.
South Korea has had diplomatic relations with Central Asian countries since 1992. Although South Korean corporate FDI in Central Asia was limited until 2005, it has increased rapidly since 2006. However, South Korean investment in Central Asia remains too low.
VET in Kazakhstan should be implemented in a separate manner that reflects income levels and the industrial structure. Meanwhile, the VET system in Uzbekistan is better than that of the other 2 countries. The most important step which must be taken for the development of VET in Uzbekistan is the modernization of contents and facilities.
In the case of Mongolia, the focus should be on changing people's perceptions of VET.
The results and policy implications of the survey are summarized below. First, most of the South Korean corporations in Central Asia are engaged in CSR activities; however the structure and consistency remain insufficient.
Second, the main focus of such CSR activities has been the mid to long-term assistance of business, and the results have mainly been satisfactory. Third, PPP in ODA is needed to solve the problems that have arisen during CSR activities. Fourth, the partnership between the Korean government and corporations continues to lag behind in terms of development. Fifth, CSR activities are expected to be enhanced through institutional reform. Sixth, corporations showed a higher willingness to engage in CSR activities that make use of ODA funds provided by the government.
Seventh, VET represents the most popular CSR activity sponsored through ODA funds.
