Artisans
PERFORMANCE AND
EXPENDITURE REVIEW
(PER) COLLOQUIUM
Thursday 9 and Friday 10 July 2015
Introduction
Artisans play a critical role in industry and, therefore, in facilitating economic growth. An artisan
PERFORMANCE A
EXPENDITURE REV
(PER) COLLOQUI
who hasSquare
completed an
Budget Council Room |is someone
40 Church
| apprenticeship
Pretoria – a work-based training programme to learn
a skilled trade under a qualified tradesperson. Training consists of a combination of theoretical,
workplace and structured learning in a workshop, and is concluded after passing a trade test.
DAY ONE 9 JULY
Long-term, structural problems in the apprenticeship system has meant that South Africa
09:30
Welcome: Andrew Donaldson
09:45
Overview and context: Ronette Engela
10:00
14:00:to produce
Parallel sessions
in two
has failed
the number
of rooms
artisans it needs. Since the 1980s the number of artisans
graduating
dropped
significantly,
and by 2005
this number
Room 1:
The Urban
Space (Facilitator:
Ahmedi
Vawda)had declined further - to a mere
Thursday 9 and Friday 10 J
4,500 per year. Around
000 of the artisans that did qualify since 1983 left the country due
• Public50transport:
Budget Council Room | 40 Church Square |
Sharing of insights from international experience in
modernising Public Finance Management (PFM) and
Roland
HunterRecent
(PER focus:
Predictive model)
to the global shortage
of artisans.
improvements
in the system mean that an average
• Housing:
of 15,000 artisans
are qualifying every year, but to raise this to 30,000 a year by 2030 (which
DAY ONE 9 JULY
Governance (Facilitator: Antony Altbeker)
Karen Hague (PER focus: Expenditure analysis)
is the NDP’s target) or to 24,000 a year by 2020 (as envisaged by the Medium-Term Strategic
• Budget reform success and failure:
AllenSchick (Governance fellow, Brookings Institution)
• Social Housing:
Framework),
will be extremely
14:00: challenging.
Parallel sessions in
09:30
Welcome:
Andrew
Donaldson
Andreas
Bertoldi
(PER
focus: Policy
implications)
• Political economy of PFM reform:
Anand Rajaram (Governance Practice Leader, World bank)
Expenditure and performance
• Politics of spending review:
Joanne is
Kelly
(Associate
of Sydney
Producing artisans
expensive.
In Professor,
2014/15,University
it is estimated
that,) between
them, government
11:30
Tea break (green, in the accompanying graph) and firms (red) will
spend about
R7 billion on apprenticeships
trade testing. Government’s
12:00
• Problem-Driven
Iterative Adaptionand
approach
share of thistospend,
which provides for theoretical training and the
development:
Matt
(Associate
Professor
of Public
management
of Andrews
the systems
as a whole,
amounts
toPolicy,
aboutHarvard)
60% of the cost
15:30
•
OECD
spending
review
practices:
and includes considerable incentives for employers who employ apprentices
Ronnie Downes (Deputy Head Budgeting
16:00
and provide& them
workplace
training.
Public with
Expenditure,
OECD)
13:00
Lunch
17:30
Costs of the artisan programme (2014/15)
Recap of day 1: Antony Altbeker
09:00
Education & training (Facilitator: Jeffrey Mbelebele)
(RAND MILLIONS)
1956
133
91
• Artisan training:
133
1560
Richard Jewison (PER focus: Policy implications)
5 000
4 000•
3 000
National Skills Fund:
1 581
Matthew Stern (PER focus: Expenditure analysis)
344
12:00
10:30
11:30
• Land Restitution:
Budget
reform
success
failure:
• Social Housin
expenditure
by (PER
all
parties,
butand
the
keyanalysis)
factor in determining the full costs
Joel •Barnor
focus:
Expenditure
AllenSchick (Governance fellow, Brookings Institution)
is• the
efficiency
of the system as measured by the throughput rate of
MAFISA:
• Political economy of PFM reform:
Administration Theoretical
training
Practical
training
• Land Restitu
At present, only 56% of apprentices qualify as artisans. At that rate, South
11:30
Tea break
Joel Barnor
Responses
and need
discussion,
in two
Africa would
to have
overgroups
53,000 apprentices in training in 2030 to
• MAFISA:
• Problem-Driven Iterative Adaption approach
produce 30,000
artisans. If the throughput rate could be raised to 75%, Conrad Barb
to development:
Conclusion to
theAndrews
agenda(Associate Professor of Public Policy, Harvard)
Matt
the number
of apprentices
could be reduced to 40,000.
15:30
Tea break
• OECD spending review practices:
Ronnie Downes (Deputy Head Budgeting
16:00
Responses and dis
& Public Expenditure, OECD)
12:00
60 000
Lunch
17:30
Remuneration analysis and modelling:
30 000 •PER
Artisan
training:review observations
Emerging
mid-term
09:00
12:00
Remuneration ana
• Preliminary vie
Nicholas Crisp
Education & training (Facilitator: Jeffrey Mbelebele)
Richard Jewison (PER focus: Policy implications)
(Facilitator: Anthony Altbeker)
13:00
Lunch
• International
and local
advisory team:
Matthew
Stern technical
(PER focus: Expenditure
analysis)
Marc
Robinson,
Tania
Ajam
and
Michael
DiFrancesco
•
Technical
and
Vocational
Education
and Training:
10 000
14:00
Emerging PER mid
20 000 • National Skills Fund:
(Facilitator: Anth
• International an
Marc Robinson
Amanda Jitsing (PER focus: Performance information & log-frame)
15:30
Conclusion to the
DAY TWO 10 JULY
08:30
40 000 Recap of day 1: Antony Altbeker
14:00
Workplace Recognition Apprenticeship SETA/NSF Recognition
Artisan
training
training by
of prior
tax rebate
grants
of prior
to employers learning Government
learning
grants
(less R 1.96bn grants
toemployers)
• Nutrition and
• Politics of spending review:
number
artisans, the more costly it will be to meet the country’s needs.
Carmen Abd
Tea
break ofJoanne
Kelly (Associate Professor, University of Sydney )
Lunch
209
Tea
Andreas Ber
Room 2: The Rural Space
ConradAnand
Barberton
(PER
focus: Policy
implications)
(Governance
Practice
Leader,
Worldsystem
bank) to produce
apprentices:
the Rajaram
more apprentices
needed
in the
a given
13:00
964
0Responses and discussion
• Housing:
It is clearGovernance
that achieving
the Antony
MTSF and
NDP targets will entail even moreKaren Hagu
(Facilitator:
Altbeker)
• Preliminary
view
50 000
Nicholas Crisp
• Technical and Vocational Education and Training:
2 000 Amanda Jitsing (PER focus: Performance information & log-frame)
1 000
• Public transp
Roland Hun
10:00
Sharing
of insights
from international
experience in
• Nutrition
and
Food Security
for Children:
modernising
Management
(PFM) and
Carmen
AbdollPublic
(PER Finance
focus: Predictive
model)
13:00
8 000
7 000
Room 1: The Urban Spac
Overview and context: Ronette Engela
DAY TWO 10 JULY
Number of qualifying artisans versus learners in the system (Two scenarios)
08:30
6 000
09:45
Room 2: The Rural Space (Facilitator: Duncan Pieterse)
Wrap up0and thank you:
10:30
Responses2005
and discussion
Ronette Engela
11:30Qualifying
Teaartisans
2015
2020
2030
(MTSF TARGET)
Learners needed in the system (56% pass rate)
(NDP TARGET)
15:30
Wrap up and than
Learners in the systemRonette
(75% pass rate)
Engela
UCT Graduate School of
Development Policy and Practice
Strategic Leadership for Africa’s Public Sector
PERFORMANCE AND EXPENDITURE REVIEW
Design considerations
The resolution of a number of challenges confronting the system of artisan
development would increase efficiency. Key challenges include:
n
Systemic weaknesses such as the absence of sound research into
the supply and demand for artisans; limited and inappropriate career
guidance; poor administration of apprenticeships; poor management
of grants disbursement by SETAs; poor oversight of apprentices’
progress; delays in accessing trade testing opportunities; among
others.
n
Weakness in TVET colleges, including their curricula, the quality
of workshops and trainers, poor performance management
and weak engagement with employers
n
Inadequate employer incentives, partly addressed by the 2013
introduction of a nationally determined grant for artisan training,
but deriving also from the onerousness of the administration
of grant application and approval processes.
n
The unnecessary complexity of the processes through which
apprentices can move through the different stages before taking
a trade test, many of which do not properly integrate the theoretical,
practical and workplace knowledge and experience needed.
A key challenge to resolve is employers’ lack of faith in the quality
and capacity of public TVET colleges to deliver artisan programmes.
This has meant that many employers have developed their own
in-house training capacity or have contracted private training
providers to provide most practical training and considerable
top-up theoretical training. The outcome has been that TVET
colleges have been largely side-lined in the supply chain for artisan
development. Improving the quality of public TVET colleges’ artisan
training would make employers more willing to use them and, in
the process, lower the average costs of producing artisans.
Conclusion
Artisan development is expensive and highly specialised. TVET colleges can and should provide trade-related
training opportunities for large numbers of young people, but this should not be viewed as part of formal artisan
training. While various cost saving options are explored in the PER, the central conclusion is that artisan development
cannot be achieved without significant investment by government and the private sector. It would be inappropriate
to seek to reduce spending on this critical area, but it is equally critical to increase the efficiency of the system.
The focus should be on improving throughput and pass rates, and expanding public TVET college capacity to deliver
theoretical and practical training and to partner with employers to achieve integration of theory and practice
in the workplace.
240 Madiba Street, Pretoria, 0002
T 012 315 5111
F 012 315 5126
[email protected]