How public-private partnerships support skills development in South Eastern Europe and Turkey

Public Private Partnerships evolving to provide a range of flexible solutions to skills training demands

The way in which Public Private Partnerships (PPPs) can function as part of the implementation of policies to improve skills delivery and labour market relevance was under the spotlight Thursday (October 14, 2021) the online conference "How Public Private Partnerships Support Skills Development in South Eastern Europe and Turkey?", hosted by the European Training Foundation and the Western Balkans 6 Chamber Investment Forum (WB6 CIF).

The event, which brought together experts from public and private sector organisations in the Western Balkans economies and Turkey, took as its starting point the findings of a new ETF study PPPs for Skills Development, an in-depth survey of 23 cases studies of PPPs located in 14 countries.

Published in two volumes, the study looks at both what the PPPs do and how they function, and detailed case studies and reviews according to analysis using ETF study methodology.

The study found that PPPs in Europe, neighbouring countries and around the world, have evolved over recent years beyond classic "closed" contract agreements between the private sector (industry, companies, chambers of commerce) and public sector (national and regional authorities, vocational training and skills providers).

Cesare Onestini, ETF Director, introduced the event:

"As we all know skills development is always about cooperation between the private and public sector in one way or another.

PPPs are one of the forms of this cooperation and one of the most misunderstood forms of cooperation. Some people think they are the solution to everything; others think it is too complicated."

But he added that the ETF study had shown it was evident:

"The effectiveness and durability of a partnership translates into better skills development for those involved. The quality of a partnership really does translate into higher quality."

Siria Taurelli, the ETF's Coordinator for Governance and Quality Assurance, said the study had identified three types of PPP that now existed:

1. "Functional families" where the partnership was formed around quality assurance or skills forecasting - so-called "knowledge" PPPs

2. VET-provision oriented partnerships where delivery of skills was the key focus

3. Resource-oriented, where the purpose might be the provision of specialised training equipment or investment into training infrastructure.

These further broke down into three keys types:

• the partnership that "permeates the system" often replicated across regions and countries
• partnerships with elements that are recognised across the system and have the potential for growth
• and ad-hoc arrangements that are often experimental or developed to address specific issues and challenges.

The study also identified PPPs with open membership (as opposed to the "classic PPP" where membership is set in a contract); semi-open PPPs, often sector-specific; and closed PPPs where a specific aim precludes the admission of new members.

The study showed that there are now examples of all types of PPPs operating within and across regions and economies around the world.

Tatjana Shterjova Dushkovska, Secretary General, the WB6 CIF, noted that the flexibility afforded by different approaches to PPPs allowed for "the synergies of all related stakeholders."

"We cannot have sustainable development and economic growth in the region without quality knowledge, skills and competences that people can apply in different vocational areas," she said.

"The chamber forum and all the six chambers have been actively committed to the task of increasing the quality of the education system, especially related to providing relevant and market suitable education including on the job training - which is now a trend in the region."

Pooling resources and creating synergies and partnerships between the private and public sectors can match skills development matched more effectively to market needs, she added.

Speakers and panel discussion participants who described a wide range of initiatives echoed her remarks.

These included an advanced AI and VR training for deaf machine operators at leading Turkish industrial conglomerate Türk Traktör, where "Giving a Voice to Deaf people in the Metals Sector" had created a new sign language to allow deaf machine operators to communicate about standard elements of industrial equipment.

"We train people including deaf students to be skilled for the labour market," Gürhan Höke of Türk Traktör said.

Academic research into developments in AI and VR technical training had also been widely disseminated across HE and academies in Europe and further afield, he added.

A new framework for adult education in Serbia, Education to Employent (E2E) brought together regional training providers and local businesses to deliver projects brokered by NGOs under a jointly funded Swiss development agency and government project.

And in Belgium the innovative "Duo for a Job" project aims to increase assimilation and job opportunities for young unemployed aged 18-30 by matching them with recent retirees who make their social capital available to help them connect to employers. The scheme, that includes a "blended" 4% return on capital provided by a consortium lead by Kois Invest, and is evaluated by independent agency, the Brussels Observatory for Employment, has achieved job placements for around two-thirds of beneficiaries.

Panelists discussed innovation in PPPs and how applicable the models of this type of stakeholder cooperation were to specific challenges.

Natasa Janevska, of the Economic Chamber of North Macedonia, said her organisation was addressing "objections by business that the education system does not satisfy the needs of the business community and does not accord with specific job vacancies in the economy."

She said:

"The chamber together with business members has developed standards for the education system; we are encouraging companies to negotiate for VET curricula to suit their needs."

Besim Mustafa, of the Kosovo Chamber of Commerce, said experience in PPPs in two sectors - metals and car mechanics - had left them fully satisfied:

"how these PPPs can create synergies and results; businesses were willing to contribute in different ways in order to prepare and develop skills for the labour market."

Nicola Alimenti, of APRO formazione, an Italian PPP made up of 83% private and 17% public members with a name that means "I open" in Italian, noted the importance of using PPPs for "research to develop concrete answers to concrete questions, starting with practical things - rather than creating commissions or committees:"

"It is always best to start with experiments within a PPP  - then you create a protocol to find a way to make it sustainable."

In concluding remarks Tatjana Shterjova Dushkovska said:

"It is very important to convince the private sector that their interests are served by joining forces with the public sector in the field of skills development."