Thelinkage among education, productivity, and economic growth is the focus ofhuman capital ideas. Over the years, the emphasis on additional reasons whyeducation is important developed.
Many, including the government are convincedthat these further reasons stress the contribution of education in buildingsocial solidarity, indicating education as tool that transmits values, beliefs,and traditions. It shapes attitudes and aspirations, and the skills it developsinclude crucial inter- and intra- personal capabilities. Education empowerspeople allowing them to think of the society in broader view and free them oflearning and thinking only for themselves. It has benefits for health andenvironment. In the context of fast growing world where every aspect of thesociety rapidly changes, the more complex education becomes, the more importantare the skills that a good quality education can provide. Globalization,changing market economies and democratization are few of the trends that drivechange today, in turn affecting education at an extreme phase. Countries suchas the Philippines need workers who are educated and skilled enough to meet thechanging labor market needs and compete in global markets, who are capable ofoperating in a democratic society, learners capable of benefiting fromtechnology revolution, and policies capable of harnessing the evolvingpublic/private interface. Thus, education is important because it contributesto improving people’s lives and reducing poverty (Jess Alfonso A.
Macasaet2002).Basiceducation, higher education and the TVET or technical vocational education andtraining are the three education sectors in the Philippines (CongressionalCommission on Higher Education 1991). Since 1970’s the government’s concern onhigher education has been the focus, it is only relatively recently that thePhilippines have risen up its efforts to reform and upgrade technical andvocational education (Emanuela di Gropello, et al., 2010). Technical Educationand Skills Development Authority (TESDA) was created by the government in 1994to signify its commitment to improve industry and growth by developing andnurturing specific skills for those already in the labor force.
Through the enactment of RepublicAct No. 7796 otherwise known as “Technical Education and Skills Acts of 1194”,the Technical Education and Skills Development Authority (TESDA) was developed.The Technical Education and Skills Development Authority (TESDA) is thegovernment agency tasked to manage and supervise technical education and skillsdevelopment (TESD) in the Philippines.
TESDA through the Republic Act No. 7796is tasked to “provide relevant, accessible, high quality and efficienttechnical education and skills development in support of the development ofhigh quality manpower responsive to and in accordance with the Philippinedevelopment goals and priorities” (Republic of the Philippines, 1995, p. 19). The TESDA’s jurisdiction over TVETas defined in its core business includes the following: (1) formulation ofplans, policies and information for the direction setting of TVET; (2) standardsetting and systems development in the form of TVET programme registration andaccreditation, competency, assessment and certification; and (3) support toTVET provision through scholarships, capacity building, technical assistanceand TVET delivery (Serge Peano, et al., 2008). Since then, TVET has become a keycomponent of the Medium-Term Philippine Development Plan.
Technicaland vocational education and training (TVET) refers to education and trainingthat prepares persons for gainful employment (Finch and Crunkilton 1999). Itfurnishes education and training through post-secondary and non-degreetechnical vocation education and training to prepare and equip students andother clients for better employment. It also provides specific skills trainingfor those who are already in the labor market and need to upgrade or developnew competencies to enhance chances for employment and/or improve productivity(UNESCO-UNEVOC International Centre for Technical and Vocational Education andTraining, 2010). Technical and Vocational Educationand Training (TVET) is considered as an important tool in contributing toequitable, inclusive and sustainable economies and societies (Schueler, J,Stanwick, J & Loveder, 2017).
TVET is viewed as a device to lowerunemployment rates in turn enhancing productivity and alleviating poverty. It increasesself-confidence and encourage individuals that lacks expertise and skills torather become active members in their societies (Shyamal Majumdar Head ofUNESCO-UNEVOC International Centre, 2016).Potentialbeneficiaries of TVET primarily include secondary school graduates or drop outsas well as college undergraduates and graduates. Unemployed persons who areactively looking for work and former overseas workers also tend to turn to TVETfor either additional skills or change in career paths (UNESCO-UNEVOC, 2010).TVET programs are aimed at developing the competencies in terms of knowledge,skills, and aptitude of these potential beneficiaries as prospective members ofthe labor force to enhance employability and be job ready when they enter intothe labor market. CHED and TESDA both heavily promote a variety of educationprograms.
However, it is private organizations—schools, churches, civicorganizations, and foundations—that have been the most active implementers ofTVET in the country. They provide skills development through workshops andassemblies (The International Bank for Reconstruction and Development / TheWorld Bank, 2010). In the Philippines, there are fourmajor methods of TVET delivery (Emanuela di Gropello, et.al, 2010).
First areschool-based institutions that offer TVET programs ranging from one year tothree years in length. Second are center-based units that provide TESDAtrainings in a short term basis undertaken in TESDA regional and provincialtraining centers all over the country. Third are community-based trainingprograms which are specifically addressed to the poor and marginal groups insome communities who cannot access formal trainings. This is designed toaccelerate the creation of livelihood and to assist low skilled individuals toself-employment. And fourth are enterprise-based programs that companies andfirms implement may it be apprenticeship or on-the-job trainings.
Institutionsthat deliver TVET programs in the country consists of more or less 4500 publicand private training institutes of which more than 60% are privately owned.Public TVET providers include 126 TESDA Technology Institutes locatednationwide. Other public TVET providers include state-owned universities andcolleges and local colleges offering non-degree programmes; Department ofEducation-supervised schools; and local government units and other governmentagencies providing skills training programmes (UNESCO-UNEVOC, 2010). TESDAregisters the TVET programmes/courses offered by these institutes prior tooffering. These institutes are required to follow sets of standards provided byTESDA with the assistance of the industry experts to serve as basis inregistering the programmes the institutes wish to offer.In2004, 3,294 public and private schools and training centers were accredited byTESDA, and 922 companies that participated in training and learning programswere registered under TESDA’s (UTPRAS) Unified TVET Program Registration andAccreditation System (Emanuela di Gropello, et al., 2010).
Unified TVET ProgramRegistration and Accreditation System (UTPRAS) is a registration system for allpublic and private institutions offering or intending to offer TVET programmes(Serge Peano, et al., 2008). This system of accreditation is formulated toensure quality of all TVET programs and to enable TVET institutions tocontinuously upgrade their training delivery. Since not all Filipino individualscan afford to avail TVET, programs that aim to address this dilemma are beingimplemented that provide direct financial support assistance to deserving TVETenrollees across all regions in the country.
Training for Work ScholarshipProgram (TWSP) and Private Education Student Financial Assistance (PESFA) arethe two major scholarship programs of TESDA (Michael Abrigo, et al., 2011). In2007 technical vocational education and training (TVET) graduates, 73% of thetotal number of scholars is either TWSP scholar or PESFA scholars. This meansthat the two scholarship programs account for the majority of TVET scholars.
The Expanded Government Assistanceto Students and Teachers in Private Education (GASTPE) Act is for theimplementation of PESFA that offers educational grants for qualified anddeserving college freshmen both in degree and non-degree courses that seeks topromote TVET and extend financial assistance to marginalize but deservingFilipinos (Republic Act No. 8545, Section 8). On the other hand, there is TWSPthat addresses structural unemployment caused by mismatch between the skillsthat workers in the economy can offer, and the skills demanded of workers byemployers which shall be the main focus of this study. Focusing on Training for WorkScholarship Program (TWSP) to deliberately convey TVET supply to available jobsthrough incentives and proper training programs that are directly connected toexisting jobs for immediate employment, both locally and oversees, and to buildand strengthen the capacity and capability of TVET institutions in expandingand improving the delivery of quality, efficient and relevant training programsthat meet job requirements (TESDA Status of Program Implementation 2016). It was in 2006 that the TWSP wasintroduced largely as a response to findings presented in the Department ofLabor and Employment (DOLE) National Manpower Summit (NMS) conducted in thesame year (Michael Abrigo, et al., 2011). For which its main purpose is toaddress the critical skills shortages in priority sectors such that of BusinessProcess Outsourcing, Metals and Engineering, Construction and Tourism, etc.
Hence, TWSP’s pinpoint is on skills trainings that are directly connected toexisting jobs (Michael Abrigo, et al., 2011). The benefits of TWSP are thefollowing: (a) full training cost and (b) assessment fee. TWSP’s targetbeneficiaries, aside from those unemployed and underemployed, include displacedworkers and some local workers identified by the DOLE. Some of thequalification requirements for TWSP scholars are the following: (a) must be atleast 17 years old (TESDA Circular 2016); (b) has taken the NCAE or YP4SC; andhas passed the applicable training assessment or entry-level requirements(Aniceto Orbeta, Jr., et al., 2011).
Additional qualifications vary for everyspecific training program. To mention, TWSP scholars who wish to enroll in LadderizedEducation Programs (LEP) are required to enrol in a TESDA or CHED approvedladderized program and must be atleast a highschool graduate. For thosescholars that are in to Heavy Equipment Operation must have their validdriver’s license.
Every year, slots are open for potential beneficiaries.Potential beneficiaries wanting to avail of those slots registers to TESDARegional, Provincial or District Office where TESDA officers assess theirqualifications as well as the training program they want to enroll. Over 2.4 million unemployed peopleare benefitted by the TWSP as of 2015. From the date when the program was firstintroduced to August 2015, 2,231,650 enrolees successfully graduated (OECD,International Labour Organization).
The employability of its graduates is amajor determinant of the program’s effectiveness. Along with the determinationof the TWSP’s effectiveness and other programs implemented, TESDA had beenconducting Impact Evaluation Studies (IES’s) to oversee and evaluate theefficiency and effectiveness of TVET based on the employment results of theirgraduates. Results showed that TWSP graduates had an employment rate of 55% in2008 and increased to 71.9% in 2014.
TWSP’s employment rate in 2014 exceeds the62% national average of employment rate for general TVET graduates (OECD,International Labour Organization). The TWSP is administered to more orless 4,000 technical and vocational institutions (TVIs) throughout the country;private TVI’s compose 90% of it (OECD, International Labour Organization,2017). Choosing TVIs that will be receiving the scholarship slots is in accordancewith the procedures set forth by the TESDA. The TESDA is adopting the TenderingSystem, a process of selecting TVIs for TWSP scholarship. TVIs with registeredprograms submit their Tender Form in the skills training program availablewithin the province. The provincial director checks whether the requirement ofabsorptive capacity, employment rate and utilization rate are complied, if itdoes, the Tender will undergo series of evaluation until the TVI receives theScholarship Grant Certificates (TESDA Circular 2013). In evaluating Tender Forms the threecriteria mentioned above are necessary. Absorptive capacity refers to thenumber of students/trainees that a TVI should accommodate per batch based onTraining Regulation Requirements on physical facilities, tools and equipmentand number of trainees.
The Employment Rate refers to the number of graduatesin a certain qualification/course previously granted and being applied for.While the Utilization Rates refers to the number of graduates in comparison tothe approved slots of scholarships previously granted (TESDA 2017).Raising funds, allocating and spending public resourcesare deemed to be the vital activities and the bedrock of any government. Theattainment of the objectives is dependent on the availability of funds for theimplementation of programs or projects. Through proper budgeting, thegovernment is able to maximize the use of scarce resources to meet the needs ofthe people as well as sustain economic growth (COA, 2006).
In the government’s exercise of allocation, budgeting isimportant to attain the economic goals. Prioritizing and putting programs andpolicies into action will be attained through the use of budgeting. Budgetimplementation starts with the release of funds to the different agencies(Department of Budget and Management). Overthe years, the TWSP has enjoyed compelling support from the government and itsfunding has expanded from the date of its inception until recently (OECD,International Labour Organization).WhenTWSP was first introduced in 2006, an initial of ? 500 million from the Officeof the President was provided to TESDA for 100,000 scholarship grants, coveringeither full or partial TVET costs, and the funding mainstreamed in the regularbudget in 2008 (Orbeta and Abrigo, June 2011).
Over the years, the government had been increasing TWSP funds toincrease the number of scholarship grants each year. In 2009, the TWSP expandedas a part of the government’s Economic Resiliency Plan (ERP). Under this, theTESDA allocation for TWSP has increased by 2 billion in 2009 and from 2006 to2015; the total funding for TWSP has reached approximately 15 billion (OECD,International Labour Organization). In 2015, the TWSP gained a total of ? 2billion government funding and has benefited more than 200,000 Filipinos(Dennis S. Mapa, et al., 2016).
In 2016, more funds were allocated to TWSPtotalling ? 2.03 billion (Liam C Lu, et al., 2016). In 2017, the TechnicalEducation and Skills Development (TESDA) has been given a budget of ? 6.8billion and ? 2.4 billion of this amount is granted to the Training for WorkScholarship Program (TWSP) to benefit 322, 000 enrolees and 289, 800 graduates(Department of budget and management, 2017).UnlikePEFSA which funds remain unchanged over the years, the TWSP funds continue toincrease; this is because of the wider base of clients and is expected tofacilitate the supply of workforce based on the industries’ demand(International Labour Organization, 2016). There is no specific standard as tothe allocation of TWSP funds, this means that the budget given to TWSP isflexible and may vary depending on the skills in-demand of the Key EmploymentGenerators (KEG) determined by Department of Labor and Employment (DOLE)(Dennis S.
Mapa, et al., 2016 & International Labour Organization, 2016).Key Employment Generators are sectors of the industry that can potentiallyabsorb the most number of employments and needs additional workforce for thenext ten years (State of the Nation, 2013). Construction, agri-fishery,automotive, tourism, and logistics are few of the KEGs that the TWSP is able tosupport (TESDA CIRCULAR No.10 series of 2017). However, the scholarship fund isallocated to the regional units by the TESDA Central Office based on aprocedure. The budget allocation in 2011 is relative to the number of trainingprograms registered to TESDA in a certain region.
TESDA local offices preparequalification maps that identify regional targets on the number ofbeneficiaries by skill type, and are submitted to the Central Office forapproval. In identifying regional targets, the local units are following threemajor parameters, namely (a) labor market demand by skill type; (b)geographical sectoral capacity; and (c) priorities set by the government economicprogram (Aniceto Orbeta, Jr., et al., 2011). The Central Office then sees to itthat the proposed budget does not exceed the allocated budget for the certainregion. Consequently, the subsidy perstudent depends on the guidelines provided nationwide.
To mention, Shielded andMetal Arc Welding is 10,000 per student for the entire course (FranciscaRequierme-Opog (FRO), Ph.D. 2014). The training cost per course is determinedby TESDA (OECD, International Labour Organization). The per capita cost dependson the training duration and the type of course (The National TechnicalEducation and Skills Development Plan 2005-2009).Apparently,TESDA Bohol currently has 17 qualification title/courses that are subsidized byTWSP. Shielded Metal Arc Welding NC I, Shielded Metal Arc Welding NC II,Cookery NC II, Electrical Installation and Maintenance NC II, Driving NC II,Automotive Servicing NC I, Bread and Pastry Production NC II, Housekeeping NCII and Computer System Servicing NC II are few of the courses that were givenscholarship slots by the government (TESDA Bohol 2017). In 2017, a total of 2,496 scholarship slots are available for different qualifications in Bohol(TESDA Bohol 2017).
Based on TESDA’s approved tenderdocuments, the allocation of funds per qualification is determined bymultiplying the total number of slots, approximately ranging from 25 to 700slots, to the per capita cost, which includes training cost, approximately rangingfrom P3,500 to P30,000, and assessment fee, approximately ranging from P200 to 1,500(Approved Tender 2017). In the field of TVET, information on TWSP’sway of fund allocation in provinces to specific Technical VocationalInstitutions (TVIs) is generally narrow. Hence, this study aims to identifyTWSP funds in Bohol, ways of TWSP fund allocation to different TVIs in Bohol,and to compare and evaluate these fund allocations over the past five yearsfrom 2013 to 2017.