linkage among education, productivity, and economic growth is the focus of
human capital ideas. Over the years, the emphasis on additional reasons why
education is important developed. Many, including the government are convinced
that these further reasons stress the contribution of education in building
social solidarity, indicating education as tool that transmits values, beliefs,
and traditions. It shapes attitudes and aspirations, and the skills it develops
include crucial inter- and intra- personal capabilities. Education empowers
people allowing them to think of the society in broader view and free them of
learning and thinking only for themselves. It has benefits for health and
environment. In the context of fast growing world where every aspect of the
society rapidly changes, the more complex education becomes, the more important
are the skills that a good quality education can provide. Globalization,
changing market economies and democratization are few of the trends that drive
change today, in turn affecting education at an extreme phase. Countries such
as the Philippines need workers who are educated and skilled enough to meet the
changing labor market needs and compete in global markets, who are capable of
operating in a democratic society, learners capable of benefiting from
technology revolution, and policies capable of harnessing the evolving
public/private interface. Thus, education is important because it contributes
to improving people’s lives and reducing poverty (Jess Alfonso A. Macasaet
education, higher education and the TVET or technical vocational education and
training are the three education sectors in the Philippines (Congressional
Commission on Higher Education 1991). Since 1970’s the government’s concern on
higher education has been the focus, it is only relatively recently that the
Philippines have risen up its efforts to reform and upgrade technical and
vocational education (Emanuela di Gropello, et al., 2010). Technical Education
and Skills Development Authority (TESDA) was created by the government in 1994
to signify its commitment to improve industry and growth by developing and
nurturing specific skills for those already in the labor force.
Through the enactment of Republic
Act 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 the
government agency tasked to manage and supervise technical education and skills
development (TESD) in the Philippines. TESDA through the Republic Act No. 7796
is tasked to “provide relevant, accessible, high quality and efficient
technical education and skills development in support of the development of
high quality manpower responsive to and in accordance with the Philippine
development goals and priorities” (Republic of the Philippines, 1995, p. 19).
The TESDA’s jurisdiction over TVET
as defined in its core business includes the following: (1) formulation of
plans, policies and information for the direction setting of TVET; (2) standard
setting and systems development in the form of TVET programme registration and
accreditation, competency, assessment and certification; and (3) support to
TVET provision through scholarships, capacity building, technical assistance
and TVET delivery (Serge Peano, et al., 2008).
Since then, TVET has become a key
component of the Medium-Term Philippine Development Plan. Technical
and vocational education and training (TVET) refers to education and training
that prepares persons for gainful employment (Finch and Crunkilton 1999). It
furnishes education and training through post-secondary and non-degree
technical vocation education and training to prepare and equip students and
other clients for better employment. It also provides specific skills training
for those who are already in the labor market and need to upgrade or develop
new competencies to enhance chances for employment and/or improve productivity
(UNESCO-UNEVOC International Centre for Technical and Vocational Education and
Technical and Vocational Education
and Training (TVET) is considered as an important tool in contributing to
equitable, inclusive and sustainable economies and societies (Schueler, J,
Stanwick, J & Loveder, 2017). TVET is viewed as a device to lower
unemployment rates in turn enhancing productivity and alleviating poverty. It increases
self-confidence and encourage individuals that lacks expertise and skills to
rather become active members in their societies (Shyamal Majumdar Head of
UNESCO-UNEVOC International Centre, 2016).
beneficiaries of TVET primarily include secondary school graduates or drop outs
as well as college undergraduates and graduates. Unemployed persons who are
actively looking for work and former overseas workers also tend to turn to TVET
for 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 of
the labor force to enhance employability and be job ready when they enter into
the labor market. CHED and TESDA both heavily promote a variety of education
programs. However, it is private organizations—schools, churches, civic
organizations, and foundations—that have been the most active implementers of
TVET in the country. They provide skills development through workshops and
assemblies (The International Bank for Reconstruction and Development / The
World Bank, 2010).
In the Philippines, there are four
major methods of TVET delivery (Emanuela di Gropello, et.al, 2010). First are
school-based institutions that offer TVET programs ranging from one year to
three years in length. Second are center-based units that provide TESDA
trainings in a short term basis undertaken in TESDA regional and provincial
training centers all over the country. Third are community-based training
programs which are specifically addressed to the poor and marginal groups in
some communities who cannot access formal trainings. This is designed to
accelerate the creation of livelihood and to assist low skilled individuals to
self-employment. And fourth are enterprise-based programs that companies and
firms implement may it be apprenticeship or on-the-job trainings.
that deliver TVET programs in the country consists of more or less 4500 public
and private training institutes of which more than 60% are privately owned.
Public TVET providers include 126 TESDA Technology Institutes located
nationwide. Other public TVET providers include state-owned universities and
colleges and local colleges offering non-degree programmes; Department of
Education-supervised schools; and local government units and other government
agencies providing skills training programmes (UNESCO-UNEVOC, 2010). TESDA
registers the TVET programmes/courses offered by these institutes prior to
offering. These institutes are required to follow sets of standards provided by
TESDA with the assistance of the industry experts to serve as basis in
registering the programmes the institutes wish to offer.
2004, 3,294 public and private schools and training centers were accredited by
TESDA, and 922 companies that participated in training and learning programs
were registered under TESDA’s (UTPRAS) Unified TVET Program Registration and
Accreditation System (Emanuela di Gropello, et al., 2010). Unified TVET Program
Registration and Accreditation System (UTPRAS) is a registration system for all
public and private institutions offering or intending to offer TVET programmes
(Serge Peano, et al., 2008). This system of accreditation is formulated to
ensure quality of all TVET programs and to enable TVET institutions to
continuously upgrade their training delivery.
Since not all Filipino individuals
can afford to avail TVET, programs that aim to address this dilemma are being
implemented that provide direct financial support assistance to deserving TVET
enrollees across all regions in the country. Training for Work Scholarship
Program (TWSP) and Private Education Student Financial Assistance (PESFA) are
the two major scholarship programs of TESDA (Michael Abrigo, et al., 2011). In
2007 technical vocational education and training (TVET) graduates, 73% of the
total number of scholars is either TWSP scholar or PESFA scholars. This means
that the two scholarship programs account for the majority of TVET scholars.
The Expanded Government Assistance
to Students and Teachers in Private Education (GASTPE) Act is for the
implementation of PESFA that offers educational grants for qualified and
deserving college freshmen both in degree and non-degree courses that seeks to
promote TVET and extend financial assistance to marginalize but deserving
Filipinos (Republic Act No. 8545, Section 8). On the other hand, there is TWSP
that addresses structural unemployment caused by mismatch between the skills
that workers in the economy can offer, and the skills demanded of workers by
employers which shall be the main focus of this study.
Focusing on Training for Work
Scholarship Program (TWSP) to deliberately convey TVET supply to available jobs
through incentives and proper training programs that are directly connected to
existing jobs for immediate employment, both locally and oversees, and to build
and strengthen the capacity and capability of TVET institutions in expanding
and improving the delivery of quality, efficient and relevant training programs
that meet job requirements (TESDA Status of Program Implementation 2016).
It was in 2006 that the TWSP was
introduced largely as a response to findings presented in the Department of
Labor and Employment (DOLE) National Manpower Summit (NMS) conducted in the
same year (Michael Abrigo, et al., 2011). For which its main purpose is to
address the critical skills shortages in priority sectors such that of Business
Process Outsourcing, Metals and Engineering, Construction and Tourism, etc.
Hence, TWSP’s pinpoint is on skills trainings that are directly connected to
existing jobs (Michael Abrigo, et al., 2011).
The benefits of TWSP are the
following: (a) full training cost and (b) assessment fee. TWSP’s target
beneficiaries, aside from those unemployed and underemployed, include displaced
workers and some local workers identified by the DOLE. Some of the
qualification requirements for TWSP scholars are the following: (a) must be at
least 17 years old (TESDA Circular 2016); (b) has taken the NCAE or YP4SC; and
has passed the applicable training assessment or entry-level requirements
(Aniceto Orbeta, Jr., et al., 2011). Additional qualifications vary for every
specific training program. To mention, TWSP scholars who wish to enroll in Ladderized
Education Programs (LEP) are required to enrol in a TESDA or CHED approved
ladderized program and must be atleast a highschool graduate. For those
scholars that are in to Heavy Equipment Operation must have their valid
driver’s license. Every year, slots are open for potential beneficiaries.
Potential beneficiaries wanting to avail of those slots registers to TESDA
Regional, Provincial or District Office where TESDA officers assess their
qualifications as well as the training program they want to enroll.
Over 2.4 million unemployed people
are benefitted by the TWSP as of 2015. From the date when the program was first
introduced to August 2015, 2,231,650 enrolees successfully graduated (OECD,
International Labour Organization). The employability of its graduates is a
major determinant of the program’s effectiveness. Along with the determination
of the TWSP’s effectiveness and other programs implemented, TESDA had been
conducting Impact Evaluation Studies (IES’s) to oversee and evaluate the
efficiency and effectiveness of TVET based on the employment results of their
graduates. Results showed that TWSP graduates had an employment rate of 55% in
2008 and increased to 71.9% in 2014. TWSP’s employment rate in 2014 exceeds the
62% national average of employment rate for general TVET graduates (OECD,
International Labour Organization).
The TWSP is administered to more or
less 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 accordance
with the procedures set forth by the TESDA. The TESDA is adopting the Tendering
System, a process of selecting TVIs for TWSP scholarship. TVIs with registered
programs submit their Tender Form in the skills training program available
within the province. The provincial director checks whether the requirement of
absorptive capacity, employment rate and utilization rate are complied, if it
does, the Tender will undergo series of evaluation until the TVI receives the
Scholarship Grant Certificates (TESDA Circular 2013).
In evaluating Tender Forms the three
criteria mentioned above are necessary. Absorptive capacity refers to the
number of students/trainees that a TVI should accommodate per batch based on
Training Regulation Requirements on physical facilities, tools and equipment
and number of trainees. The Employment Rate refers to the number of graduates
in a certain qualification/course previously granted and being applied for.
While the Utilization Rates refers to the number of graduates in comparison to
the approved slots of scholarships previously granted (TESDA 2017).
Raising funds, allocating and spending public resources
are deemed to be the vital activities and the bedrock of any government. The
attainment of the objectives is dependent on the availability of funds for the
implementation of programs or projects. Through proper budgeting, the
government is able to maximize the use of scarce resources to meet the needs of
the people as well as sustain economic growth (COA, 2006).
In the government’s exercise of allocation, budgeting is
important to attain the economic goals. Prioritizing and putting programs and
policies into action will be attained through the use of budgeting. Budget
implementation starts with the release of funds to the different agencies
(Department of Budget and Management).
the years, the TWSP has enjoyed compelling support from the government and its
funding has expanded from the date of its inception until recently (OECD,
International Labour Organization).
TWSP was first introduced in 2006, an initial of ? 500 million from the Office
of the President was provided to TESDA for 100,000 scholarship grants, covering
either full or partial TVET costs, and the funding mainstreamed in the regular
budget in 2008 (Orbeta and Abrigo, June 2011).
Over the years, the government had been increasing TWSP funds to
increase the number of scholarship grants each year. In 2009, the TWSP expanded
as a part of the government’s Economic Resiliency Plan (ERP). Under this, the
TESDA allocation for TWSP has increased by 2 billion in 2009 and from 2006 to
2015; the total funding for TWSP has reached approximately 15 billion (OECD,
International Labour Organization). In 2015, the TWSP gained a total of ? 2
billion government funding and has benefited more than 200,000 Filipinos
(Dennis S. Mapa, et al., 2016). In 2016, more funds were allocated to TWSP
totalling ? 2.03 billion (Liam C Lu, et al., 2016). In 2017, the Technical
Education and Skills Development (TESDA) has been given a budget of ? 6.8
billion and ? 2.4 billion of this amount is granted to the Training for Work
Scholarship Program (TWSP) to benefit 322, 000 enrolees and 289, 800 graduates
(Department of budget and management, 2017).
PEFSA which funds remain unchanged over the years, the TWSP funds continue to
increase; this is because of the wider base of clients and is expected to
facilitate the supply of workforce based on the industries’ demand
(International Labour Organization, 2016). There is no specific standard as to
the allocation of TWSP funds, this means that the budget given to TWSP is
flexible and may vary depending on the skills in-demand of the Key Employment
Generators (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 potentially
absorb the most number of employments and needs additional workforce for the
next ten years (State of the Nation, 2013). Construction, agri-fishery,
automotive, tourism, and logistics are few of the KEGs that the TWSP is able to
support (TESDA CIRCULAR No.10 series of 2017).
However, the scholarship fund is
allocated to the regional units by the TESDA Central Office based on a
procedure. The budget allocation in 2011 is relative to the number of training
programs registered to TESDA in a certain region. TESDA local offices prepare
qualification maps that identify regional targets on the number of
beneficiaries by skill type, and are submitted to the Central Office for
approval. In identifying regional targets, the local units are following three
major parameters, namely (a) labor market demand by skill type; (b)
geographical sectoral capacity; and (c) priorities set by the government economic
program (Aniceto Orbeta, Jr., et al., 2011). The Central Office then sees to it
that the proposed budget does not exceed the allocated budget for the certain
Consequently, the subsidy per
student depends on the guidelines provided nationwide. To mention, Shielded and
Metal Arc Welding is 10,000 per student for the entire course (Francisca
Requierme-Opog (FRO), Ph.D. 2014). The training cost per course is determined
by TESDA (OECD, International Labour Organization). The per capita cost depends
on the training duration and the type of course (The National Technical
Education and Skills Development Plan 2005-2009).
TESDA Bohol currently has 17 qualification title/courses that are subsidized by
TWSP. 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 NC
II and Computer System Servicing NC II are few of the courses that were given
scholarship 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 tender
documents, the allocation of funds per qualification is determined by
multiplying the total number of slots, approximately ranging from 25 to 700
slots, to the per capita cost, which includes training cost, approximately ranging
from 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’s
way of fund allocation in provinces to specific Technical Vocational
Institutions (TVIs) is generally narrow. Hence, this study aims to identify
TWSP 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 years
from 2013 to 2017.