Developing Skills for Economic Transformation and Social Harmony in China: A Study of Yunnan Province (Directions in Development)

This study asseses the technical and vocational education and training (TVET) system of Yunnan Province in China, including a skills-demand analysis and a review of work-based and non-formal training systems. It promotes policies for a demand-driven, high-quality, and equitable education and training system conducive to lifelong learning. The World Bank has a long history of investing in China’s technical and vocational education and training (TVET), dating back to the 1963 Higher Education Project, which benefited selected tertiary TVET programs in project schools. The initial World Bank projects for TVET in China were designed mostly on the national level, supporting selected institutions in multiple provinces. Starting in 2006, based on strong analytical work and increased demand from various provinces, the World Bank began a direct policy dialogue with interested provinces, and in turn started supporting provincial level projects in TVET. These include the Guangdong Technical and Vocational Education Project and the Liaoning and Shandong Technical and Vocational Education Project, both of which are currently under implementation. Located on the southwestern border of China, Yunnan is a medium-sized Chinese province with abundant natural resources and high levels of ethnic diversity. Although Yunnan is still one of the poorest provinces in China, it has experienced rapid economic growth rates over the last decade and is expected to maintain an annual growth rate of 10 percent or higher. The recent national Bridgehead Strategy has further positioned Yunnan as a strategic gateway in the Southwest region, providing tremendous new opportunities for its development. The study is aimed at facilitating policy development leading to a demand-driven, high-quality, and equitable education and training system conducive to lifelong learning. The experience of Yunnan also sheds light on skills development in China, as the analysis in this report situates Yunnan in the broader national context. The intended audience includes policymakers in the Ministries of Education, Human Resources and Social Security, Agriculture, and Finance, and the Poverty Alleviation Office and National Development and Reform Commission. The report would also be of interest to researchers and development workers interested in understanding skills development in China.

It starts with a demand-side analysis in chapter two, examining historical trends in demand for skills, revealing the types of skills in demand, and projecting future demand for skills driven by economic growth and policy development. Chapter two also highlights the emerging skills shortages and mismatches in Yunnan. The rest of the report focuses on the access, quality, and relevance of Yunnan's education and training system and how effective it is in supplying the skills in demand. An overview of Yunnan's formal and non-formal education and training system is presented in chapter three. Chapter four focuses on the formal Technical and Vocational Education and Training (TVET) system, examining its governance, industry participation, curriculum reforms, quality assurance, and finances. Analysis of the formal education and training system focuses mainly on secondary and tertiary TVET. Chapters five and six address two major training programs outside the formal education system: non-formal training for rural workers and work-based training for urban workers, both of strategic importance. Finally, chapter seven draws on lessons from the Shanghai Program for International Student Assessment, or PISA to demonstrate the role of schools in developing the cognitive skills of 15-year-olds. The report concludes with a summary of findings and a set of policy recommendations for meeting the skills challenges and improving the education and training system.