Document of
The World Bank
FOR OFFICIAL USE ONLY
Report No.: 17584
IMPLEMENTATION COMPLETION REPORT
HUNGARY
HUMAN RESOURCES DEVELOPMENT PROJECT [LOAN 3313-HU]
MARCH 31, 1998
ECSHD
HUMAN DEVELOPMENT SECTOR UNIT EUROPE AND CENTRAL ASIA REGION
This document has a restricted distribution and may be used by recipients only in the
perfonnance of their official duties. Its contents may not otherwise be disclosed without
Public Disclosure Authorized
Public Disclosure Authorized
Public Disclosure Authorized
CURRENCY EQUIVALENTS (as of February 20, 1998) Currency Unit Forint
1
HUF =US$ .006
US$1 175 HUF
AVERAGE EXCHANGE RATES
1994 1995 1996 Oct, 1997 Feb, 1998
105.16 125.7 152.6 194 175
WEIGHTS AND MEASURES Metric System
FISCAL YEAR OF BORROWER January I - December 31
ABBREVIATIONS AND ACRONYMS
IBRD - International Bank for Reconstruction and Development IDA - International Development Association
PIU - Project Implementation
Unit
SOE - Statement of ExpendituresMOF
- Ministry of FinanceCEF - Catching up with Higher Education in Europe Fund CSO - Central Statistical Office
HAS - Hungarian Academy of Science HE - Higher Education
HRDP - Human Resources Development Project ICR - Implementation Completion Report
IIF - R&D Computer Network
MOE - Ministry of Culture and Education MOF - Ministry of Finance
MOL - Ministry of Labor NLC - National Labor Center NTC - National Training Council
OKJ - National Vocational List
OTKA - National Scientific Research Fund
RLDC - Regional Labor Development Training Center SAR - Staff Appraisal Report
TM - Task Manager
Vice President: Johannes Linn, ECAVP Country Director: Roger Grawe, ECCO7
FOR OFFICIAL USE ONLY
IMPLEMENTATION COMPLETION REPORT HUNGARY
HUMAN RESOURCES DEVELOPMENT PROJECT (LOAN 3313-HU)
Contents
PREFACE
EVALUATION SUMMARY ... i
PART I. PROJECT IMPLEMENTATION ASSESSMENT A. Statement and Evaluation of Project Objectives . B. Project Sustainability ... 4
C. Bank Performance ... 5
D. Borrowers Performance ... 5
E. Assessment of Outcome ... 5
F. Key Lessons Learned ... 6
Part II. Statistical Tables ... 8
TABLE1: SUMMARY OF ASSESSMENTS ... 9
TABLE 2: RELATED BANK LOANS/CREDITS ... I0 TABLE
3:
PROJECT TIMETABLE ... I0 TABLE 4: LOAN/CREDIT DISBURSEMENTS: CUMULATIVE ESTIMATED AND ACTUAL ...]01 TABLE 5: PERFORMANCE INDICATORS FOR PROJECT ... 1TABLE 6A: PROJECT COSTS ... . ... .19...fi.fi... I9 TABLE 6B: PROJECT FINANCING ... .19
TABLE 7: STATUS OF LEGAL COVENANTS ... . 20
TABLE 8: BANK RESOURCES: STAFF INPUTS ... .. . 22
Appendixes: A. Borrower contribution to the ICR (Employment and Training) ... 23
B. Borrower contribution to the ICR (Higher Education and Research) ... 33
This document has a restricted distribution and may be used by recipients only in the
performance of their official duties. Its contents may not otherwise be disclosed without
IMPLEMENTATION
COMPLETION
REPORT
HUNGARY
HUMAN RESOURCES
DEVELOPMENT
PROJECT
(LOAN 3313-HU)
Preface
This is the Implementation Completion Report (ICR) for the Human Resources Development Project in Hungary, for which a loan in the amount of US$ 150 million equivalent was approved on April 29, 1991 and made effective on May 22, 1991.
The loan was closed on June 30, 1997, compared with the original closing date of June 30, 1996. It was fully disbursed, and the last disbursement took place on July, 1 1997. For the project no cofinancing was provided.
The ICR was prepared by Mr. Gybrgy Novotny ECSHD, with assistance from Mr. David Fretwell ECSHD, Ms. Timea Medveczky ECCHU, Ms. Zita Szantai ECCHU and reviewed by Mr. Maurice Boissiere (ECSHD), Stephen Heyneman, Education Team Leader (ECC07), and Mr. Chris Lovelace, Director, Human Development Sector Unit (ECSHD). Ian Conachy provided invaluable production assistance.
The borrower and implementing agencies provided their contribution which is included as appendices to the ICR.
Preparation of this ICR was begun during the Bank's final full supervision mission (December 16-23, 1996), and was continued during 1997 with the cooperation of the borrower. It is based on the Staff Appraisal Report, Loan and Project Documents, supervision reports, and on materials in project files. The borrower contributed to the preparation of the ICR by preparing its own part and commenting on the draft ICR.
IMPLEMENTATION COMPLETION REPORT HUNGARY
HUMAN RESOURCES DEVELOPMENT PROJECT (LOAN 3313-HU)
Evaluation Summary
Introduction
1. Since lending to Hungary began in 1983, the Bank's strategy of assistance has focused on supporting the country's program of structural adjustment to make the economy more efficient, flexible, market responsive and competitive in external markets. In the first eight years the Bank has been heavily involved in the industrial, agricultural and infrastructure restructuring. The Human Resources Development Project (HRDP) was the first loan giving assistance in a broad spectrum of human resources issues including labor markets, training, higher education and science and technology research. However the Third Industrial Restructuring Loan contained some pilot elements of the restructuring of the labor force.
Project Objectives
2. The project has addressed certain priority human resources issues that constrain a successful transition to a market economy.
3. Specific objectives were to:
(a) assist unemployed workers to find jobs and enterprises to find suitable workers; (b) provide relevant training for youth and adults, especially in relation to item (a);
(c) improve the responsiveness of higher education to the new technical and managerial demands of a market economy, with special emphasis on improving access, relevance, quality, efficiency and financing;
(d) assist in narrowing the technological gap between Hungary and its competitors by expanding and reorienting the training of science and technology researchers, improving management of research and improving the linkages between academic community and enterprises; and
(e) develop foreign language competency to promote international economic and technological ties. Achievement of Objectives
4. The objectives were clear, important and achievable. They also conformed to Government priorities for the labor market, education and research sector. The Government did meet all the targets specified under HRDP. Performance of almost all project components in regards to meeting initial schedule and cost estimates was complete. The project's one year extension became necessary because of the adjustment to the changing needs of the adult training component. The most important change was a reduction in the number of training centers from ten to eight, and establishment of mobile facilities,
linked with the main centers. The change in the adult training component did not result in immediate improvements as it has proven difficult and time-consuming to find the right design and a modus
operandi that meets the approval of local governments and other key players.
5. The most important achievements of the objectives were: (a) - a modem labor statistics system was developed;
- a short-terrn (6 month) labor forecast model was adopted;
- youth and adults received information allowing them to exercise their right and responsibility to make informed career choices;
- public employment services were modernized, including modern job
counseling and placement techniques, automated career inforrnation systems and training for staff;
(b) - 8 new Regional Labor Development Training Centers (RLDCs)and 31 new mobile centers were established covering the entire country and giving training to about 10,000 persons per annum;
- in 79 vocational secondary schools new education systems were introduced, including the development of new curricula in general, and vocational
training, and providing up to date equipment (yearly about 5,000 pupils receive training in these schools);
(c) - through a competition based funding system the supported sections of the higher education and the connecting basic research activity were modernized,
better equipped and became capable of providing training and services on a Western European level;
- after the reorganization and development of the training of scientists, the universities were empowered to award research degrees;
(d) - open instrument centers, in which the facilities and equipment are open to all
researchers to be shared, and were supported as a cost effective way to help modernize and improve research activities at the universities and research institutes;
- a nation wide information network, connecting the Hungarian universities, research institutes and libraries was implemented;
- about 360 young scientists were supported and their research opportunities were improved;
(e) - three year retraining courses were organized for more than 2000 Russian language teachers;
- new language training methodology, and communication oriented curricula were introduced.
6. All the project objectives were met.
Sustainability and Plans for Future Project Operations
7. Overall the project is judged by the MOL, CEF, and OTKA to be sustainable. The political support of the Government continues, and the related legal and institutional framework is continuously improving. The central, and regional funding system, and the normative financing of higher education and secondary schools provide a financial basis for the recurrent costs. Since the project schools, and adult training centers are expected to be continually enrolled to meet demands for secondary vocational and adult education, the project benefits are expected to be sustained and to increase for several years to come.
8. The project equipped the employment network, adult and youth training centers, higher educational institutes and research centers with state of the art facilities and training equipment. Although the institutions were to submit plans for maintenance of equipment when they submitted their proposals, certain more sophisticated equipment has been aging rapidly, and the coverage of maintenance and their running costs will cause problems to the institutions. The recently approved Higher Education Project (FY98) includes financial reforms that would address this issue.
9. The MOL and MOE are committed to project sustainability as evidenced by the follow up projects, Youth Training and Higher Education. These projects continue and expand activities of the HRDP.
Bank and Borrower Performance
10. The Bank's performance was highly satisfactory. The Bank had a positive impact on the design of the project. The project supervision was well organized, the supervisory team was well rounded and encompassed several specialists. The Bank organized regular supervision missions, and the continuous presence of the Task Manager (TM) and the procurement specialist in the field helped the smooth implementation in the later stages of the project.
11. The overall performance of the Borrower and the implementing agencies was satisfactory in all phases of the project, and was in compliance with all main loan covenants. The commitment of the Government was demonstrated by the enhanced financial contribution. Instead of the originally planned
US$ 189.8 million value GOH contribution, it was about 50% higher. This surplus financing covered the
additional procurement, the development of the demanding environment of the computers and sophisticated equipment and the additional civil works at training centers.Assessment of Outcome
12. The project has achieved all its major objectives and has achieved the following substantial development results:
(a) the MOL and its institutions developed an enhanced capacity to handle employment issues; (b) increased awareness of the need for adult training corresponding to the market's demands;
(c) increased awareness of the need for a modern secondary vocational education system responsive to the needs of students and the labor market;
(d) upgraded the status of many secondary vocational schools;
(e) measures were introduced to improve responsiveness of higher education to the new professional demands of a market economy;
(f) upgraded the level, and quality of higher education;
(g) strengthened the competitive segments of research activities at scientific research institutions and universities
(h) the brain-drain and professional loss of the young scientists did not increase further with the help of the young scientist programs;
(i) upgraded the status of many departments of research institutes; (j) fulfilled the increased need for foreign language fluency.
13. On the basis of the above, the outcome of the project was assessed as highly satisfactory, as all its major objectives have been met and all components are considered sustainable.
Key Lessons Learned
14. The project provided an important input to the on-going transitional reform process.
15. There were some lessons learned from this project, many of which could be applied in future projects, and some of which were applied during this project's implementation.
16. The lessons were:
(a) The Bank and the Borrower need flexibility in adjusting project design and implementation schedule of the project without formal amendment, provided that the changes are in line with the main objectives of the project.
(b) In projects where reform actions are supported, a well-prepared public information campaign could help citizens and institutions understand their roles, responsibilities and opportunities. (c) The project management structure has to be adapted to the project structure. In case of big,
multi-component projects, the Bank and Borrower must undertake an analysis during project preparation and find the proper implementation management structure, identifying skill mix. (d) Wherever possible, mainly in case of big complex projects, the Bank has to make an effort to
have the task team leader and procurement expert settled in the field, or in a geographically close Hub.
(e) Although the general conditions of the loan require adequate maintenance of equipment, in new loan agreements the Bank should request more specific guarantees from Borrowers that the sophisticated equipment purchased from the loan will be operational during the life of the loan.
(f) The Bank should encourage Borrowers to hire experienced procurement agents to accelerate the procurement process.
Performance Indicators
Although performance indicators and outcome indicators were an inherent part of the original project design, they were not explicitly "written-up" as part in the SAR. Table 5 in part II lists the main performance and outcome indicators as derived from the general text of the SAR.
IMPLEMENTATION COMPLETION REPORT HUNGARY
HUMAN RESOURCES DEVELOPMENT PROJECT (LOAN 3313-HU)
Part I. Project Implementation Assessment
A. STATEMENT AND EVALUATION OF PROJECT OBJECTIVES
1. The Bank has been closely associated with Hungary's transformation since it joined in 1982. The 1985 CAS which was in effect during most of the project implementation period states: "Overall, the Bank's program of support would have the broad objectives of helping Hungary to maintain macroeconomics stability and accelerate its growth to facilitate EU accession; strengthening and privatizing Hungary's financial and enterprise sectors; reforming social policies and strengthening the human resources base; improving environmental management; and attracting Foreign Direct Investment (FDI) and know-how, especially in the infrastructure sectors."
2. A Human Resources Review conducted jointly with the Government and Bank in 1990 was elaborated and helped to outline a new human resources strategy. The project was the first Bank human resources operation in Hungary. However, valuable experience was gained in the Employment Component of the Third Industrial Restructuring Project ( FY 89; Loan No. 3020-IHlU), and important labor market policy reforms were implemented as part of the Structural Adjustment Loan (FY 90; Loan No. 3228-HU)
3. A new government came to power through free parliamentary elections in 1990 with a mandate to establish a full fledged market economy. The inherited rigid labor market, unresponsive training system, and the fragmented and outdated higher education system inappropriately linked to industry and scientific R&D severely constrained the success of the economical reforms and the move to a market economy. The new government has realized that new institutions and major structural reforms were needed to address human resources issues. The main issues were: emerging unemployment, obsolescence of much of the training system, including a narrow vocational training, lack of management and foreign language skills, and the scientific and technological gap between Hungary and its competitors. The Hungarian government realized that national resources were not sufficient to start and sustain the reform Therefore the involvement of the World Bank, as a development and financing agency was requested.
4. The program that was developed to address the above issues was outlined in a resolution issued by the Council of Ministers in October 1990 supporting the unified and coherent program of human resources investments in this project.
5. In order to support the Government's human resources policy reform program, the HRDP had five specific objectives:
(a) assist unemployed workers to find jobs and enterprises to find suitable workers, with emphasis on meeting the special needs of unemployed women and their families';
(b) provide relevant training for adults and youth, including entrepreneurial training, especially in relation to item (a);
(c) improve the responsiveness of higher education to the new professional demands of a market economy, with special emphasis on improving access, relevance, quality, efficiency and financing;
(d) assist in narrowing the technological gap between Hungary and its competitors by expanding and reorienting the training of science and technology researchers, improving management of research and forging better linkages between the academic community and enterprises; and
(e) in support of items (b) through (d), improve foreign language training to promote international economic and technological ties.
Main components of the HRD Project Part A: Employment and Labor Trainin
6. This component developed and implemented programs to:
(a) Upgrade and expand labor market information systems and employment assistance services ( to be implemented by the Ministry of Labor): - improve labor statistics, through establishment of an unemployment monitoring system;
- broadening the establishment sample frame to include the private sector; - improve wage and cost of living data by carrying out surveys; and - revise the system of occupational and sector classification, including the development of a sector/ occupation matrix to analyze employment patterns;
(b) Provide support to the MOL to develop labor market analysis in the following areas: - survey of short term trends in each region;
- initiation of a National Occupational Information Coordinating Council; and - medium term (I to
5
year) labor market analysis;(c) Develop employment services assisting in matching workers with appropriate jobs and otherwise facilitate the mobility of the labor from where it is excess to
more productive uses. Through this subcomponent the following activities were supported:
- refinement and expansion of industrial adjustment services for mass layoffs; - refinement and dissemination ofjob search techniques and materials;
- development and dissemination of automated Career Information Systems; and - development of new short and long-term professional training programs for career counselors in labor offices, and schools.
During the project implementation it became clear that the women's unemployment was not a special issue in Hungary. Through years of 1992-1997, the percentage of unemployed women of the total unemployed persons was about 39%. The rate of unemployment of women was lower with 1.3 than the average. In Hungary the mass lay-off affected the heavy, and construction industry and the mines where the proportion of women was low. Analysis show clearly that the active labor programs -except public works- were more effective in case of women than men.
7. This component also improved the specialized occupational training for adults to better meet retraining needs, during and after the transition period, through the establishment of regional training boards which formed and operated regional labor development centers with effective linkages to the regional economy and labor market (implemented by the National Training Council). In particular, the component supported:
(a) the development of a labor market based training system, providing a flexible and rapid response to the training needs of adults;
(b) the creation of a tripartite National Training Council and affiliated regional training boards which defined policy for provision of regional flexible adult training programs for young first time job seekers, mature unemployed adults, incumbent workers who need skill upgrading, women workers, and had a budget to fund a portion of the cost of the programs; and
(c) regional training board programs providing training capacity through the Regional Labor Development Centers (RLDCs) or sub-contracting with other institutions. 8. The component also initiated reform of vocational secondary schools for youth, who were enrolled in a narrow and out-dated vocational training system, through developing model vocational secondary schools. The schools provided more general education and broader training in clusters of occupational skills to be followed, if necessary, by specialized training on the job or in programs under the National Training Council (to be implemented by Ministry of Culture and Education and Ministry of Labor).
9. The new vocational system developed and implemented programs to: (a) define procedures to develop vocational curricula;
(b) develop new vocational training curricula for up to 15 skill clusters; (c) develop and implement basic education programs;
(d) support two audio-visual centers where training materials are prepared; (e) improve guidance and counseling programs in all schools;
(f) improve bilingual education in selected vocational schools; and
(g) improve training provided by five regional higher education institutes in the field of vocational teaching counseling and administration.
Part B: Higher Education and Research
10. This component developed and implemented programs to: (a) upgrade and expand Higher Education;
(b) establish the higher education development fund (CEF) with a mandate to review and select the winners of competitions for innovative and relevant higher education programs, grant funding to higher education institutions to carry out schemes to promote greater collaboration and resource sharing among universities;
(c) develop interdisciplinary educational programs and integrate research and teaching functions through expanded collaboration among universities and research institutes; and (d) improve the recovery of costs of the provision of higher education.
11. This component also developed a framework of university programs for foreign language training to:
(a) strengthen the secretariat of CEF to serve as an instrument for funding and monitoring innovative foreign language training programs on a competitive base; (b) create a National Council of Foreign Languages guide foreign language policy and
(c) develop bilingual vocational curricula in vocational secondary schools and of foreign training within adult training;
(d) formulate and implement an investment program to retrain Russian language teachers; and
(e) improve practical foreign language fluency of students.
Science and Technology Research
12. To meet the pressing need to preserve Hungary's scientific and technological capability and to link it to teaching and commercial activity to support entry into international markets, the following actions were taken:
(a) the establishment of a Science Policy Committee chaired by a Minister
(b) the establishment of an autonomous foundation to support basic sciences (OTKA) (c) preparation of legislation to define the role of the HAS as an autonomous institution
dedicated to the promotion of high quality science.
13. The component strengthened the institutional and financial capacity to improve the training of research scientists and engineers as well as the quality of research by:
(a) supporting research by young scientists;
(b) upgrading and expanding the network of scientific instrument centers;
(c) developing the national R&D computer network (IIF) used by the academic and industrial research communities.
B. PROJECT SUSTAINABILITY
14. The GOH is committed to project sustainability. The political commitment of the government exists, and the related legal and institutional framework is continuously improving. In the case of adult training centers, the central and regional funding systems (the increasing Labor Market Fund and increasing demand of the new and transformed enterprises for adequate training opportunities) ensure that the recurrent expenses will be covered for the long run. As mentioned earlier, project schools and training centers are expected to be continually over-enrolled to meet demands for secondary and adult education, and project benefits will continue to increase for several years to come. The normative financing which provides funds to the schools on the basis of the number of enrolled students in secondary and higher education provides a basis for competitive schools to service, repair and develop the instruments provided by the project.
15. The project equipped the employment network, adult and youth training centers, higher education institutes and research centers with state of art instruments and training equipment. There are some risks that certain of the more sophisticated project equipment, mainly in the fields of higher education and research, will not be utilized to their full capacity and may not be repaired/upgraded if needed due to lack of resources. The recently approved Higher Education Project (FY98) includes financial reforms that would address this issue.
16. The Borrower is committed to project sustainability as evidence by follow-up projects, namely the signed Youth Vocational Training Project, and the Higher Education Project near to Board presentation.
C. BANK PERFORMANCE
17. The Bank was responsive and sensitive to national development priorities in the design of the project objectives, and the project fitted well with Hungary's development strategy. Project inputs were needed to handle the employment issues emerging from the transition to a market economy, and to modernize and improve the quality of vocational education, and higher education and research. The project is recognized to have contributed to achieving these goals by the project beneficiaries. The project was ambitious in its targets, but properly planned implementation on the Borrower's side, and active project management from the Bank's side, helped to overcome issues that emerged from time to time (the 3 main components of the project were managed by properly staffed and committed PMUs, and the Bank's project management team in the latter stage of implementation was working in the field). During supervision missions the experts and consultants were selected properly, and they helped with project implementation. The Borrower from the beginning appreciated very much the advice and help of the Bank's staff.
D. BORROWER PERFORMANCE
18. The Government maintained full commitment to the project's objectives throughout project implementation and remained committed to project sustainability. However, institutional weaknesses at the early phase of the project caused some delay. The one year extension of the project became necessary due to the rapidly changing political and economical environment in the country, and a part of the project implementation strategy on the establishment of adult training centers was slightly modified. MOL and the Government continue to be committed to improving the employability of secondary school graduates and to providing services job related skills to the unemployed. MOE is committed to modernize the higher education system, including the institutional and legal background. Resources for the education and research sectors, however, have remained limited and thus the project's resources were highly valuable. The Borrower is also to be commended for being economical in its purchases and financing, proposing competitive procedures. The Borrower's performance is rated as highly satisfactory based on its successful completion of the project and its commitment to project sustainability. This rating also takes into consideration the fact that the MOL's PCU, the FEFA Office and OTKA Office did an excellent job in the implementation.
E. ASSESSMENT OF OUTCOME
19. Based on substantive achievements of project objectives which targeted unemployed workers, adults and youth trainees, higher education and research institutes, and foreign language training, the project is rated as having achieved a "highly satisfactory" outcome. Notable project benefits, among others, included:
(i) the MOL and its institutions became capable of handling the employment issues through the creation of a network of institutions dealing with these issues, with long term and short term measures, by the provision of a network of well equipped employment offices throughout the country with trained staff (in the centrally planned economy there was no official unemployment, therefore it was not handled by any government institution);
(ii) increased awareness of the need for adult training corresponding to the market's demands by the provision of relevant, cost effective training and retraining for adults as a short term/quick response measure, and by the provision of entrepreneurial training and job counseling programs as a long term measure;
(iii) increased awareness of the need for a modem secondary vocational education system responsive to the needs of students and the labor market (and the wider European market) and as a long term measure to re-orient the education system;
(iv) upgraded the status of many secondary vocational schools through the provision of new curricula, essential equipment, and training materials;
(v) measures were introduced to improve the responsiveness of higher education to the new professional demands of a market economy through the introduction of competitive grant funding in higher education, rationalization of scientific degrees, establishment of Ph.D. training at universities, and the introduction of normative financing;
(vi) upgraded the level, and quality of higher education through provision of up-to date equipment, computerized training, and library systems;
(vii) strengthened the competitive segments of research activities at scientific research institutions and universities through better cooperation, and higher level integration among universities and research institutes, increased and improved access to the international computerized information network, and creation of open instrument centers, where the research activity can be conducted according to the demand of the enterprises; (viii) the brain-drain and job leaving of the young scientists did not increase further with the help of the young scientist programs;
(ix) upgraded status of many of the departments of research institutes through provision of essential equipment and preventing them from falling further behind the European research level; and
(x) fulfillment of the increased need for foreign language knowledge through development of practically oriented foreign language training, provision of new curricula, self access language laboratories, and retraining of the excess Russian language teachers.
F. KEY LESSONS LEARNED
20. There were some lessons learned from this project, many of which can be applied in future projects, and some of which were applied during this project's implementation:
(i) Adjustment in Project Design. In countries in a transition period, the project needs to adjust to emerging needs in society, changes in labor markets, and changes in legislation. The projects cannot be static in design over the implementation period.
Lesson: The Bank and the Borrower need flexibility to adjust the project design and implementation schedule of the project if needed without formal amendment, provided that the changes are in line with the main objectives of the project.
(ii) Employment Services. The objective of this component was to modernize the public employment services to assist with the redeployment of labor in the developing market economy. These types of actions need to re-orient staff and clients to enable them to better understand the role and responsibility of individuals and the "state".
Lesson: In projects where reform actions are supported, a well-prepared public information campaign could help citizens and institutions to understand their roles, responsibilities and opportunities.
(iii) Project Management. However the project was very ambitious and complex, but the properly staffed and trained staff of the project management units could overcome the issues that emerged during implementation. Three "PMUs" were established to handle the three main components of the project, and each had their own responsibility. The PMUs had the support of the ministries, and of their principals.
Lesson: The project management structure has to be adapted to the project structure. In the case of big, multi component projects, the Bank and Borrower must undertake an analysis during project preparation and find the proper implementation management structure, including skill mix.
(iv) Bank's Staff in the Field. In the last five years of implementation of the project, the task manager and later the procurement experts were settled in the field. This arrangement made frequent contact between the implementing agencies and Bank staff easier and quicker.
Lesson: Wherever possible, mainly in case of big complex project, the Bank has to make an effort that the task team leader and procurement expert are settled in the field, or in a geographically close Hub.
(v) Operation, maintenance and service of sophisticated equipment. The project provided sophisticated equipment to the research centers, universities. Although the institutions were to submit plans for maintenance of equipment when they submitted their proposals, these institutions are now facing up to the fact that they cannot operate, maintain and service these high value equipment because of the lack of financial resources.
Lesson: In new loan agreements the Bank should request more specific guarantees from the Borrowers that the sophisticated equipment purchased from the loan will be operational for at least 3 years after the closing date. The recently approved Higher Education Project (FY98) includes financial reforms to address this issue.
(vi) Use of Procurement Agents. The PMUs contracted experienced procurement agents to arrange the procurement process, including custom clearance, the organization of
implementation, acceptance protocols etc.
Lesson: The Bank should encourage the Borrowers to hire experienced procurement agents to accelerate the procurement process.
Part 11. Statistical Tables Table 1: Summary of Assessment
Table 2: Related Bank Loans/Credits Table 3: Project Timetable
Table 4: Loan/Credit Disbursements: Cumulative Estimated and Actual Table 5: Performance Indicators
Table 6A: Project Costs Table 6B: Project Financing
Table 7: Status of Legal Covenants Table 8: Bank Resources: Staff Inputs
STATISTICAL TABLES
Table 1: Summary of Assessments
A. Achievement of objectives Substantial Partial Negligible Not applicable
Macro policies x Sector policies x Financial objectives x Institutional development x Physical objectives x Poverty reduction x Gender issues x
Other social objectives x
Environmental objectives x
Public sector management x
Private sector development x
Other (specify)
B. Project sustainability Likely Unlikely Uncertain
x
Highly
C. Bank performance satisfactory Satisfactory Deficient
Identification
x
Preparation assistance
x
Appraisal
x
Supervision
x
Highly
D. Borrower performance satisfactory Satisfactory Deficient
Preparation x
Implementation x
Covenant compliance x
Operation (if applicable)
Highly Highly
E. Assessment of outcome satisfactory Satisfactory Unsatisfactory unsatisfactory
Table 2: Related Bank Loans/Creditsl
Loan/credit title
Purpose
Year of approval
Status
Preceding operations
1.111. Ind. Restructuring FY1 989 Closed
2.
3.
-Following operations
I
.Youth Training _ FYI 998 Approved2.Higher Education expected FY 1998 Negotiated
3. Etc.
1. Includes projects in the same sector/subsector as this project and adjustment operations with related objectives. A limit of 10 years is observed when preceding operations.
Table 3: Project Timetable
Steps in project cycle
Date planned2
Date/actual
latest estimate
Identification (Executive Project Summary) _ Preparation
Appraisal October 1990 October 1990
Negotiations February 1991 February 1991
Letter of development policy (if applicable) Not applicable Not applicable
Board presentation 03/28/1991 03/28/1991
Signing 04/29/1991 04/29/1991
Effectiveness June 1991 05/22/1991
First trance release (if applicable) Not applicable Not applicable
Midterm review (if applicable) December 1993 May 1994
Second (and third) trance release (if applicable) Not applicable Not applicable
Project completion 12/31/1995 12/31/96
Loan closing 06/30/1996 06/30/1997
2. As provided, for example, in the Staff Appraisal Report (SAR).
Table 4: Loan/Credit Disbursements: Cumulative Estimated and Actual
(US$ thousands)
FY1992
FY1993
FY1994
FY1995
FY1996
FY1997
Appraisal 20,000 55,000 105,000 145,000 150,000 150,000 estimate Actual 12,149 21,801 58,736 99,383 135,830 149,997 Actual as % 60.74% 39.63% 55.94% 68.54% 90.55% 100% of estimate Date of final 06/30/1992 06/30/1993 06/30/1994 06/30/1995 06/30/1996 10/31/1997 disbursement
Table 5: Performance Indicators Improve Employment Information and Services
Main Performance Indicators Actions Result
(A) Provide labor statistics A. 1. Strengthen the Uniform Population Data Collection This was a priority task and involved de-centralization
needed to support operation of a System of the reference numbers for better cooperation with
market economy county labor offices and tax authorities;
elaboration and introduction of new nomenclature for economic units;
introduction of new sectoral classifications (compliance with ISIC/ NACE.
Information relating to the total population has become more reliable.
A.2. Broaden the establishment registration data base This complex task is ongoing, but it will take several years to complete and it depends on cooperation between the Employment Service and the Tax authorities as well as the Central Statistical Office to avoid duplication of effort.
A.3. Increase availability of current wage data The new system to determine wages aimed at institutional reconciliation, wage negotiation and agreement required a common data base and this was done at national level with random sampling and computerized data processing. Results are forwarded to all interest representation associations and the annual publication of important results.
A.4. Update the Consumer Price Index and related living Established and ongoing in terms of Household surveys standard information data bases and Occupational wage surveys. The Household survey
involves 8,500 households on a monthly basis but results are published on a quarterly basis. This has become a most important source of labor market information, especially since joining OECD.
-11-A.5. Revise and modernize occupational & educational/ The adoption of the International Standard Classification trainin1g classification systems and establish of Occupations; the development of occupational
linkages between them descriptions for the occupational directory and the parallel development of educationial classifications were completed and integrated with the career choices
program in use at employment ccnters, schools and adult training centers. It is worked out to the 4 digit
classificationi system.
A.6. Develop, through analysis of census data & All the information necessary for the preparation of the implementationi of establislhment surveys, a sector/ matrix was compiled and the first survey was completed occupational matrix system to define occupational in 1995 (for 1994) to calculate the number of employees structure of major sectors per occupationi using a special logarithm.
(B) Develop short and medium B. 1. Refine short-term (6-12 monthls) and medium tern Applications are made twice per year. Since 1992 a 3 tern techniques for labor market (1-5 years) labor market analyses and train staff in tier (local/county/national) computer based processing
analyses all regional labor offices system was established. Forecast surveys were made in
March and September as well as the county and national short term forecasts based on these surveys have proved successful.
B.2. Initiate a National Occupational Information An inter-ministerial committee comprising the Statistical Coordinating Committee Office and computer experts with overview exercised by
the existing Information Committee of the Interest Reconciliation Council for Hungary was established. (C) Refine labor components of C. 1. Develop labor market modeling techniques for The complex model system was worked out by 1994 by
social policies to improve restructuring; regional, economical and a central unit responsible for the organization and efficient functioning of the labor infrastructural development analysis of forecasts. The forecasting period was
market modified to cover the years 1994 to 2010. The
nomenclature was also revised. These will form the basis of occupational and educational policy especially for higher education. The national and international data base makes it possible to prepare newer and more
C.2. Improve cost-effective utilization of the Series of special studies has established the
Employment Fund by introducing regional effectiveness of various employment initiatives and their evaluation, planning and budgeting techniques cost effectiveness and system are in place for monitoring
and sharing information. In addition the MOL
participated in a regional study of active labor programs. (D) Assist displaced workers and D. I Expand occupational & educational information, Integrated automated career information service is youth find employment by including developing an automated career operational in employment centers, vocational schools improving employment services information system and adult training facilities linked to the national system
of job classification
D.2 Develop, with a consortium of Higher Education Major university provides school counselor programs on Institutions, short courses and college, graduate/ ongoing basis. Undergraduate throughout averaging at post-graduate programs for labor office and school 30 per year plus another 40 per year taking counseling
counselors as a second degree
D.3 Refine and expand job search materials for labor Published. Electronic search materials are available with office clients and provide training to labor office training via job clubs etc.
staff
-13-Improve Adult Training
Main Performance Indicators Actions Result
(A) Develop national initiatives A. 1. Develop National Training Council management As a result of the 1993 Vocational Training Act, this is and services to support adult and planning systems now called the "National Council for Vocational
training and retraining Training" providing the Minister with advice and
making decisions on the budget of the Vocational
Training fund.
A.2. Define procedures for Completed. Procedures for the production of modules (a) job analysis, (their standards) validation and distribution are in
(b) skill testing and operation.
(c) development of modular training materials for adult basis and vocational training programs
A.3. Define and implement, special studies and support Active labor market measures are continuously
systems to determine cost effectiveness of adult monitored for effectiveness throughout the system based training and employment programs on models, and established by special studies.
Investigations were made into anomalies.
Current training cost in permanent training centers is approximately US$ 4 per person per day.
60% of trainees are over 25 years old showing bias to re-training and skill updating.
At the end of 1995, 39% of the programs operating conforned to the national (OKJ) quality certificate level. Accreditation exists at each center for other programs. (B) Provide improved adult B.1. Develop and implement administrative systems and Completed and operational. All training centers and employment and training plan for RLDC/ RATCs Ministry interlinked on computer network for exchange
services in up to 10 regions of information (programs) statistics. 9 fixed site training
centers were developed with a capacity of 3400 places and with an additional 800 places available from mobile facilities. 1996 throughout 29,342 students on 1201 different programs varying from one week to six
_nmonths. 96 % of the trainees completed the programs.
-14-The people trained in RLDSs formed three groups: (i) Unemployed people who received training through the employment services, where the placement rate was 55% after 3 month of the completion and 70% after a year. ' (See footnote), (ii) Employee of companies received customized training where the placement rate was 100%. (iii) Individuals who paid for the training, with a placement rate significantly higher than in case of unemployed people. The funding of RLDCs comes from 2 big sources: (i) state direct funding, about 30% (ii) income from the courses 68%. (The Labor Service and MOL order about 60%, firms and individuals about 8%.) As the state direct funding does not exceed 30% and the main part of the income comes from courses, the operation of training centers is fully sustainable.
B.2. Develop and implement modular basic education Completed and operational. and foreign language programs
B.3. Develop and implement customized quick-start In operation via this project and bilateral efforts vocational training procedures and programs operated on demand. Staff trained to respond. Actions
include work in electronics/ machinery/ clothing/ food/ building and for Italian; Dutch; American and
Hungarian joint ventures. Training took place at the workplace and/or the training center.
B.4. Develop and implement core modular vocational 914 modules developed to date and are produced on a training programs continuous basis to meet changing labor market/ skill
development demand.
B.5. Develop and implement small business technical Introduced at all locations and is integrated into a wide assistance programs range of other programs. To date 401 small businesses were established after entrepreneur training and directly
Experimental Design Study, made in 1998, shows that the placement rate of match pairs (without training) of trained people was 10-20% lower.
-15-related to the activities of the training centers. B.6. Develop and implement counselinig and placement In operation at all centers.
programs
(C) Iniitiate short tern vocational C.1. Develop criteria for identification and selection 31 mobile training units are in operation in areas of training in isolated areas with mobile training programlis identified need and in areas not covered by permanenit
higih unemployment facilities.
Improve Youth Education and Training
Main Performance Indicators Actions Result
(A) Develop a revised national A. 1. Develop a revised model for Hungariani Secondary 6 new academic curricula developed. model for secondary vocational Vocational Schools addressing: 13 new vocational curricula developed.
schools to promote increased (i) basic education, Bilingual training in Hungarian/ English and Hungarian/ occupational and career choice (ii) vocational training, German established and operational.
(iii) bilingual training and Career counseling available at all schools via computer
(iv) career counselinig based system.
79 schools reforned all with the 6 academic curricula and 161 vocational curricula.
7 teacher training colleges runining the new programs for retraining and production of new teachers
2 media centers established for the production of support material for the new curricula
100 other secondary vocational schools voluiitarily adopted the new curricula even when not supported by the project
79 other schools supported by a parallel project and 135 schools will be supported by a follow on project
(B) Develop revised curriculums B. 1. Develop revised vocational curricula, including Eventual choice was limited to 13 vocational job software and hardware requirements for (15) faimiilies and new curricula developed.
vocational specialties Teaching and stidenit materials developed and made available via the two media centers.
Equipment specifications to meet the needs of the curricula were developed and equipment procured, installed and commissioned
B.2. Develop revised and new basic education 7 new basic curricula developed and is operational in all curriculum, including software and hardware schools.
requirements for seven (7) basic education Equipment specifications to meet the needs of the
curriculums curricula were developed and equipment procured,
installed and commissioned
(C) Implement new curriculums C. 1. Obtain and install software & equipment and train All equipment supplied. installed and commissioned. in project centers-sclhools staff to use new basic education curriculums Local staff trained in its use via internationial
fellowships/ local training/ suppliers Higher Education Program
Main Performance Indicators Actions Result
(A) Higher Education Reform A. I. Create a funding agency for competitive investment The Catching-up-with Higher Education in Europe Fund
funding was established in 1991.
A.2. Organize competition among HEls to obtain funds In 4 competition rounds 773 general and foreign for introduction new programs, improve language applications were judged and 303 were collaboration, integrate research and teaching awarded funding.
A.3. Introduction of normative financing The law on normative financing was passed in 1996 A.4. Increase average staff/student ratio The staff/student ratios were increased from 1:5 to 1:8,5. (B) Foreign Language Training B. 1. Establish the 3 year one major English and Gernan 3 year one major teacher training was established in 8
teacher training institutions.
B.2. Form restructured or new units/departments of applied linguistics
B.3. Retrain teachers of Russian languages (provide More than 2000 such teachers were retrained into
__ ___ system of retraining) mainly teachers o English and German.
B.4. Create self access language labs promoting 46 such units were created and upgraded in 40 individual studies, to increase the number of institutions.
students
-17-Science and Technology Research
Main Performance Indicators Actions Results
(A) Young Scientists Program A.1. Organize grants through OTKA to young (under Young scientists submitted 348 applications for study 35) scientists tours and scholarships, and out of them 241 were spent
846 months abroad. The most important destinations were: USA, England, Italy, France, Netherlands. (42% of the rewarded scientists worked in Hungary, 42% abroad and 16% left their profession.). 396 applications were submitted for instruments, and out of them 154 were awarded.
(B) Scientific Instrumentation B.1. Organize funding competition for instrument From 891 applications of instrument centers, 318 were
Centers centers awarded with the help of new instruments 2645
publications were produced, from which 1772 in international journals.
(C) R & D Computer Network C. 1. Connect more universities and research institutes to 446 institutions and more than 1,500 users were
(IIF) the international network connected to the network, and use it continuously. The
number of hosts has increased from 5,000 to 60,000 (1,200%) since 1994. Hungary is a member of the TEN-34 consortium with 10 Mbps international connection. The capital has 30-155 Mbps high speed links and the country regions have 128 kbps-l Mbps leased lines. The
high speed connections are based on ATM technology.
-18-Table 6A: Project Costs
Presentation of appraisal estimates follows the format shown in the SAR or President's
Report (for adjustment loans), and actual results are given for each item to facilitate
comparison.
Appraisal estimate Actual/latest estimate
(US$M) (US$M)
Item Local Foreign Total Local Foreign Total
costs costs costs costs
1. Goods
(a) for Adult Training 8.8 23.2 32 10.6 16.1 26.7
(b) for other parts ofthe 35.3 92.8 128.1 140.1 108.8 248.9
Project
2. Consultants' services 6.1 11.9 18 83.0 10.70 108.1
3. Fellowships & research 1.8 22.1 23.9 14.37
4. Construction 92.3 0 92.3 48.9 0 48.9
*
5. Staff, Operate. & 45.5 0 45.5 23.2 0 23.2
Maintenance **
* The actual construction cost was less than planned, due to the fact that for RLDCs the government refurbished existing building, instead f new constructions, and 7 new centers were built, however the plan was 10 new centers.
* * The actual costs are lower, as in many cases instead of the staff, consultants were used.
Table 6B: Project Financing
Presentation of appraisal estimates follows the format shown in the SAR or President's Report (for adjustment loans), and actual results are given for each item to facilitate
comparison. If SDR are used, the exchange rate with the U.S. dollar is provided.5
Appraisal estimate (USSM) Actual/latest estimate (US$M) Source Local costs Foreign costs Total Local costs Foreign costs Total
IBRD 0 150 150 0 150 150
GOVT 189.8 0 189.8 293.2 0 293.2
Total 189.8 150 339.8 293.2 150 443.2
* Data to be obtained from Implementing Agency.
-19-Table 7: Status of Legal Covenants
Agreement Section Covenant type Present Original Revised Description of covenant Comments status fulfillment fulfillment
date date
IBRD -33130 Sched. l/Para. Financial C 03/31/1991 Govt. to adopt budget for In compliance.
3(b) NTC; set up 4 regional
training boards with guidelines.
Sched. 5/Part A, Project C Govt. to provide adequate In compliance. para. I (a) implementation staffing for execution of the
arrangements project.
Sched. 5/Part a, Monitoring/ C 01/31/1991 Monitor labor market each Started surveys and para. I(a) reviews quarter with unemployment continuing.
survey.
Schedule 5 Financial C 11/30/1991 Govt. to furnish budget of In compliance. NTC each year.
Sched. 5/Part B, Sector policy, C 12/31/1991 Govt. to submit legislation on In compliance. paras I (a) & (b) regulatory autonomy of universities,
change Academy of Science.
Sched. 5/Part B Financial CD 12/31/1991 1996 Govt. to introduce normative Universities now awarding financing of higher education research degrees. Normative
and new system of degrees. financing systems under review by government. First stage of implementation (50% normative financing) began March 1996.
Sched. 5/Part B, Monitoring/ C 06/30/1992 Govt. to conduct study of cost In compliance. para 3. reviews recovery and revenues in
higher education.
-20-Note on Table 7. are based on Annex D5 of OD 13.05, Project Supervision.
Covenant types:
Accounts/audits:
Monitoring/reviews
Cofinancing
Procurement
Consultation
Project implementation arrangements
Cost recovery/pricing
Remedies
Counterpart funding
Resettlement
Dam safety
Sector policy conditionality: administrative change
Disbursement definitions/conditions
Sector policy conditionality: budgetary/allocative
(including special account)
change
Engineering
Sector policy conditionality: regulatory change
Environmental
Sector policy conditionality: other studies/technical
Facilities maintenance
assistance
Financial
Subproject/subloan criteria and procedures
General Conditions
Subsidiary agreements
(section 1.01 of the Loan or Credit Agreement)
Institutional (involving other than project coordination units)
Present status:
C =
covenant complied with
CD = complied with after delayCP = complied with partially
NC =not complied with
6. If the covenant is complied with only partially or not at all, the reason is provided.
-21-Table 8: Bank Resources: Staff Inputs
Planned
Revised
Actual
Stage of project cycle Weeks I US$ I Weeks US$ Weeks US$
Preparation to appraisal Data no available 78.8 177.8
Appraisal Data no available 20.8 49.1
Negotiations through Board approval Data no available 6.9 17.5
Supervision Data no available 183.4 435.8
Completion 9 18.2 2 3.6
Appendix A
IMPLEMENTATION COMPLETION REPORT HUNGARY
HUMAN RESOURCES DEVELOPMENT PROJECT (LOAN 3313-HU)
Borrower's contributions to the ICR
A. MINISTRY OF LABOR, HUNGARY
Project execution and operation Youth Training Component
What was planned.
1. This is described under Part I (Task Managers' report).
What was achieved
2. A Dutch company was contracted to provide specialized consultancy and arrange fellowships. A local Hungarian company was retained as procurement consultants.
3. In consultancy, there was a planned 293 man months and 230 were used. 67 consultants
were involved with only 6 replaced during the life of the project. 53 man months were utilized for developing vocational curricula; 31 man months were used to develop educational curricula. The AV centers used 8 man months, national staff training 23 man months, bi-lingual training 9 man months, job analysis 7 man months, international panel 4 man months and project management 42 man months.
4. In fellowships, there was a planned 276 man months. By a re-allocation of funds from
consultancy this figure was increased to 354 man months. 969 persons were able to travel abroad and attend programs. The fellowships were to 11 countries. In the early stages of the project the fellowships were mainly orientational and in later stages more theme specific. It was realized by all that the education systems being observed were more practically orientated, more linked to reality and the needs of the labor market with good linkages between education and businesses.
5. Vocational curriculum development. The method selected for implementation was a
"bottom-up" approach in strong contrast with the previous centrally planned approach. One disadvantage was that those chosen to develop the new curricula had no previous experience of developing/ designing curricula. This problem was addressed by workshops on methodology and procedures and with a software package developed for the purpose. Linkages were established between the academic and vocational curricula development groups and contents. Curriculum development concentrated on a 3 step approach: (i)orientation and initial development; (ii) teaching environment; (iii) evaluation and assessment. The groups were supported by experts who advised on procedures and content matter. The structure and design of the new curricula are in line with
-23-Appendix A modem educational principles and a standardized approach. The experts advising the groups visited them on average twice per year and from 2 to 4 weeks each time. The new vocational curricula was implemented in September 1993 and concentrated more on innovation, questioning and the development of higher cognitive skills to produce trainable, adaptable and innovative people.
6. The academic curriculum development started about 1 year behind the vocational groups. Various levels of general subject curricula were produced in order to cater for the various entrance levels of students and the different specializations of the schools. This has lead to the development of 25 different general curricula covering the 7 subjects. Most of these have modules so that teachers can select in addition to the core curriculum.
7. In summary, between 5 to 35 Hungarian teachers were involved with curriculum
development for each subject making a total of about 600 teachers drawn from the 79 participating schools. They met every 2/3 months and sometimes included members from the industry. The curricula are subject to continuous review and evaluation and continued collaboration with industry. 8. There are 2 AV centers, an inventory of equipment and capacity was made and the formnulation of tasks, functions and responsibilities was decided as well as delivery of services. The Budapest center concentrates on CD-i and CD-ROM production and Vep center on video and printed matter. Both centers would be information centers for multi-media material, production centers for teaching aids and advisory centers for multi-media hardware utilization.
9. National staff training, meant assistance to the national institutes in teacher training to a
model in line with the newly designed vocational education system. 6 institutes initially participated for 7 subjects. Currently there are 12 institutes participating covering 12 specializations. One subject "Public health/ Social care" remains to be placed. Initially technical assistance concentrated on the pedagogical part of the curriculum.
10. Intensive language training, courses were arranged for teacher training institutes to raise
the level of English and German, based on foreign resource material, and to teach part of the program through the medium of English or German. These institutes have to accept responsibility for the teaching of languages to the next generation of young Hungarians who will be looking for work in the new economic environment.
11. Bi-lingual training, was to equip teachers in vocational subjects with the methods, skills
and knowledge to conduct part of their subject teaching in a foreign language. Courses were attended by 42 specialized teachers and 31 man months were spent on fellowships.
12. Job analysis, was to support career counseling and to advise curriculum development
groups on trends and developments. Participants were introduced to two software packages; VOCAN (for vocational analysis) and SPSS (Statistical Package for Social Sciences). Final job profiles and combinations of job profiles were made and linked with relevant background information.
13. Equipment specification, was needed to link the needs of the curriculum to the budget
allowance of between US$ 100,000 and US$ 250,000 which was procured predominantly via international competitive bidding. In the later stages of the project reference books were obtained to support the school libraries and teacher resource centers.
-24-Appendix A 14. The International Expert Panel was to bring together a team of experts from different professional backgrounds and various countries to discuss and advise on project matters. Themes covered included: the relationship between vocational education and the labor market; employment/ unemployment issues; adult education; and re-training centers.
Summary
15. 969 Hungarian teachers, school representative, teacher training colleges, media development, local authorities etc. participated in study visits and training programs. In 1993, the CSO reported graduates from primary schools had an unemployment rate of 19%, apprentice schools 15%, Grammar schools 10% but secondary vocational schools was only 6%. There is an
increased popularity for secondary vocational schools. In 1990 this was 28% of the student population and by 1994 it was 33%. The World Bank model secondary schools are popular with parents and score highest on the ratio of application to places. There were also many "follow on schools", which despite lack of financial support from the project decided to follow and utilize the developed curricula. In total these numbered 170 vocation schools. For the revamped academic subjects more that 300 schools adopted the new curricula. By mid-1997, when the first full cycle of the 4 year revised program will be finalized 15,000 students will have benefited from the new curricula. A PHARE program sponsored by the European Union follows the new/ revised curricula,
supporting another 79 schools. Further work need to be accomplished in: (a) - making the schools responsive to changing market conditions; and
(b) continued development of the educational system for specialized years to come after the present 4 years of development.
16. The Dutch consultancy company, after an uncertain and shaky start in the first year, rallied and delivered a quality service with good results in technical, financial and management areas.
It is possible therefore to state that the purposes of the loan were achieved for Youth Training.
Adult Training Component What was planned.
17. This was described under Part 1 (Task Manager's report). The project intended to support regional training boards in up to 10 regions with a training capacity of about 16,500 training places annually by 1995 assuming an average of 6 months duration per program. This would meet about 20% of estimated adult training needs in 1995. The project planned 11 I man months of fellowships and 105 man months of consulting services. Because of the changing labor market during the life of the project, there was a reduced number of permanent major training centers and increased numbers of mobile training centers offering a more limited range but closer to the point of need and which moved on as the priorities changed.
What was achieved
18. An Irish/ Canadian joint venture organization of consultants was contracted to provide technical assistance in the areas of specialized consultancy and arranging fellowships. A local Hungarian company was retained as procurement consultants.
19. The National Training Council was established and became functional in 1992 until its replacement in I Jan 1996 the National Vocational Training Council. Its members include government, employers, employee representatives, local municipalities and various chambers. It
-25-Appendix A advises the Minister on matters relating to vocational training and decides on the budget for vocational training and meets every 5-6 weeks.
20. Procedures for job analysis, skill testing and modular training materials. This was
assisting the new labor market training department of the National Institute of Vocational Education and: operating guidelines were drafted and approved; job descriptions were prepared for 3 key positions (curriculum development coordinator; professional development coordinator; computer operator for data base development). Training was conducted in "job analysis"; "competency based training"; "program review"; "team building". Training packages were delivered such as "time management"; "strategic planning"; "human resources management".
21. Evaluation management, accreditation procedures etc. By the end of 1995, 39% of
programs being provided by the training centers were eligible to award the nationally recognized OKJ qualification certificate. An altemative certification system exists for areas not yet covered by the OKJ for a further 57% of trainees. The 1993 Vocational Law listed professions or skill areas eligible for the award of the OKJ certificate. This provided an opportunity for adults to gain qualifications which included assessmen
