Vocational Training Program


PARAGUAY


SECTOR:                 Education

PROJECT NAME:           Vocational Training Program
                        (851/OC-PR)

TOTAL COST:             $27.0 million

FINANCING:
      IDB               $20.7 million
      MIF               $ 3.5 million
      LOCAL             $ 2.8 million

DATE OF APPROVAL:       December 21, 1994

GENERAL DESCRIPTION:    The objective of this program is to increase
                        productivity and incomes through efficient operation
                        of the country's vocational training system.  In this
                        way, the program will:  (a) upgrade the knowledge and
                        skills of employed workers as an aid to restructuring
                        the productive sector; (b) provide suitable vocational
                        training for young people entering the job market and
                        unemployed youths belonging to low-income groups; and
                        (c) increase management skills of small business
                        operators and microentrepreneurs.

                        The system will allow for broad participation by the
                        private sector in its administrative body, ensure that
                        there are mechanisms that permit learners to select
                        the type of training they prefer and the institution
                        to provide it, and award contracts for such training
                        courses through an open process in which private
                        institutions are free to compete.

                        The program includes the following components: 

                        (a) a sector reforms component:  to create the
                        vocational training system, create and place in
                        operation a governing body for the system, along with 
                        a corresponding technical secretariat, restructure and
                        rationalize the Servicio Nacional de Promoción
                        Profesional (SNPP), with its regional branches and 
                        subdivisions, privatize the affiliated centers,
                        strengthen the private sector institutions with the
                        greatest impact on the sector, and conduct studies for
                        awarding professional accreditation, while promoting
                        participation by women in the labor market;

                        (b) an investment component:  to finance courses for
                        active workers (refresher, updating and/or retraining
                        courses), small business operators and
                        microentrepreneurs (courses in business
                        administration, accounting and marketing, among other
                        topics), and the unemployed poor (courses designed to
                        encourage reentry into the job market).  During the
                        first two years of the program, an education voucher
                        system will be used in which students - and companies
                        in the case of employed workers - will be given
                        vouchers for the above-mentioned courses.  These
                        students and companies will have the option of
                        selecting among the courses and participating
                        institutions, thus creating healthy competition among
                        the latter.    

CONSULTANTS:            Consultants will be hired to:  (a) create the
                        vocational training system (106 staff/months); (b)
                        help design and implement a governing body for
                        carrying out the program (151 staff/months); (c)
                        restructure the SNPP (144 staff/months); (d) study the
                        possiblity of having SNPP sell, assign or transfer its
                        regional branches and subdivisions (8.4 staff/months);
                        (e) conduct a study which will make it possible to
                        strengthen the most efficient affiliated centers,
                        close those centers for which there is no demand, and
                        establish sectoral requirements for creating and
                        operating new centers (18.2 staff/months); (f)
                        strengthen private sector training institutions (8
                        staff/months); (g) conduct a study on professional
                        certification (3.9 staff/months); (h) conduct a study
                        of labor market prospects on which to base the design
                        of a course aimed at helping women enter the labor
                        force (5.2 staff/months); and (i) conduct a total of
                        50 pilot vocational education courses.

GOODS AND EQUIPMENT:    Equipment for workshops, teaching laboratories,
                        software and educational materials will be purchased. 
                        

EXECUTING AGENCY:       Ministerio de Justicia y Trabajo
                        Servicio Nacional de Promoción Profesional 
                        Molas López entre Quinta y Sexta
                        Vía Victoria
                        Asunción, Paraguay
                        Telephone:  (595-21) 605-490        
                        Fax:        (595-21) 662-598
                        Contact:     Sr. Víctor Bernal, Director General