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IDB, Germany and Switzerland partner to transform vocational training in LAC

Multi-donor fund of US$13 million will accelerate the transformation of technical and vocational education and training in Latin America and the Caribbean.

The Inter-American Development Bank (IDB), the Federal Ministry for Economic Cooperation and Development of Germany (BMZ) and the Government of Switzerland, represented by the Swiss Agency for Development and Cooperation (SDC), have launched the TVET Fund, a new multi-donor fund that aims to transform technical and vocational education and training (TVET) in Latin America and the Caribbean. Germany’s grant contribution of US$11 million, complemented by US$2 million from Switzerland will help countries in the region to consolidate modern skills ecosystems and to prepare their citizens to successfully face the challenges of the future of work and the Fourth Industrial Revolution (4IR).

Today, at least 45 million people are enrolled in some form of TVET in Latin America and the Caribbean and 32 million are taking part in a workforce development program. However, TVET systems in the region have traditionally been disconnected from the private sector. Generally, TVET offered several supply driven programs that in the best cases reached out to employers for labor market insertion, generally alluding to social responsibility programs.   

The objective of this Multi-donor trust fund is to accelerate the transformation of TVET in LAC by promoting private sector involvement and incorporating the most successful international experiences. The Fund will promote the creation of modern, private sector led training ecosystems that will endow individuals with the skills needed for successful lifelong learning and labor trajectories, and ultimately will contribute to boosting the economic development of the region.

The Fund will finance two types of projects: Pilot projects to mobilize innovation in TVET and projects and activities to mainstream TVET in country’s projects and initiatives, particularly in IDB Group’s operations.

The IDB has been supporting the improvement of TVET programs throughout the region, strengthening all components of the system with a clear focus on improving quality and relevance, through technical cooperation and lending operations. In the past 5 years, the IDB has lent US$835M in sovereign loans and has supported the region with US$9.5 million in non-reimbursable technical cooperations.

About the IDB

The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides policy advice, technical assistance and training to public and private sector clients throughout the region.

 

Press contact
More Information

María Fernanda Prada, Education Senior Associate: marifp@iadb.org

Graciana Rucci, Labor Markets Lead Specialist: gracianar@iadb.org