Document of

The World Bank

FOR OFFICIAL USE ONIY

Report No 4755-TU

REPUBLIC OF TURKEY

INDUSTRIAL TRAINING PROJECT

STAFF APPRAISAL REPORT

February 28, 1984

Education and Manpower Development DivisionEurope, Middle East and North Africa Region

This document has a restricted distribution and may be used by recipients only in the performance oftheir official duties Its contents may not otherwise be disclosed without World Bank authorization

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REPUBLIC OF TURKEY

Currency Equivalents

1 US Dollar = 291.5 Turkish Lira (TL) (February 13, 1984)100 TL = 0.34 US Dollars

Fiscal Year

January 1 - December 31

GLOSSARY

MOE; Ministry of EducationMOL: Ministry of LaborMIT; Ministry of Industry and TradePCR: Project Completion ReportPPAR; Project Performance Audit ReportSEE; State Economic EnterpriseSEGEM; Industrial Training and Development CenterSIS; State Institute of StatisticsSPO; State Planning OrganizationTA; Technical AssistanceTISK: TUrk-Is Arastirima UzmaniTTC; Technician Training CenterTTU; Technician Training UnitTEK; Turkish Electricity AuthorityUNDP: United Nations Development ProgrammeUNIDO; United Nations Industrial Development OrganizationYoK: Council for Higher EducationOECD; Organization for Economic Cooperation & Development

FOR OFFICIAL USE ONLY

REPUBLIC OF TURKEY

INDUSTRIAL TRAINING PROJECT

STAFF APPRAISAL REPORT

Table of Contents

Page No.GLOSSARY

BASIC DATA

I. ECONOMIC DEVELOPMENT AND INDUSTRIAL TRAINING .................... 1

Economic Development ....................................... 1Manpower Issues ............................................ 2

Industrial Training ........................................ 5Government Industrial Training Policies

and Budgetary Support. 6The Bank's Role in Education and Training .... 8

II. THE PROJECT ........ 9

Objectives and Scope . . . 9Description of the Project . . .. 9A. The Council for Higher Education . . 9

Pre-Service Technician Training Centers (TTCs) ... 10Curriculum and Staff Development . ... 10Strengthening the TTC Management System . . .. 12

B. The Industrial Training and Development Center (SEGEM)..12

National Industrial Training System .... 13Program Development and Expansion .... 14Industrial Training Consultancy Facility .... 14

Future Project Development .... 15

Staffing .... 15Cost Sharing .... 15

Monitoring and Evaluation .... 15

C. State Institute of Statistics .... 16

III. PROJECT COSTS, FINANCING, MANAGEMENT AND IMPLEMENTATION .... 17

Cost of the Project .... 17Summary of Project Costs .... 17

Recurrent Costs .... 20Project Financing .... 20Management and Implementation .... 21

Project Management .... 22Procurement .... 22

Technical Assistance .... 24Implementation Schedule .... 24Disbursements .... 24

Accounts and Audit .... 25

This report is based on the findings of an appraisal mission which visitedTurkey in May/June 1983. The mission comprised Messrs. C. A. Sinclair(economist, mission leader), S. Sigurdsson (facility planner), J. Schweitzer(technical educator) and A. Gow (industrial training specialist, consultant).

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 World Bank authorization.

Table of Contents (con't)

Page No.

IV. BENEFITS AND RISKS .. ......................................... 26

Benefits ........................................... 26Risks ........................................... 27

V. AGREEMENTS REACHED AND RECOMMENDATIONS .. 28

ANNEXES

Annex 1 Wage Rates in the Turkish Manufacturing Industry . .. 31Annex 2 Manpower Projections, 1985-95 .33Annex 3 Organization, Management and Implementation Capability

of YUK, SEGEM, & SIS .... 37Annex 4 Evaluation of Benefit/Cost Ratio for Proposed

Development of Eight Technician Training Centers . .43Annex 5 Technical Assistance Program for YoK, SEGEM and SIS .. 46Annex 6 Table 1 Projected Enrollment in Technician Training

Centers by Main Subject .49Table 2 Estimated Expansion of Industrial Technician

Training Programs, Council forHigher Education (Y6K) .. 50

Table 3 Requirements for Trained Instructors byMain Subject ........... 51

Annex 7 Area and Cost Per Place for the Technician Training Centers...52Annex 8 Project Cost Estimates - Summary Account by

Project Component .. 53Annex 9 Schedule I implementation Schedule .54

Schedule 2 Estimated Schedule of Disbursements .55Annex 10 Chart 1 Council for Higher Education, Organization Chart...56

Chart 2 Proposed Organization of Management System forTechnician Training Centers, TechnicianTraining Unit, Council for Higher Education (YoK)..57

Chart 3 Organization of the Industrial Trainingand Development Center (SEGEM) .58

Chart 4 Organization of the State Institute ofStatistics (SIS) .59

Annex 11 Comparative Education Indicators .. 60Annex 12 Related Documents and Data Available in Project File .62

Map

REPUBLIC OF TURKEY

INDUSTRIAL AND VOCATIONAL TRAINING PROJECT

STAFF APPRAISAL REPORT

Basic Data(1982)

Country Data (1982)

Per-Capita GNP US$1,540Total population 46.5 millionPopulation growth rate 2.2% p.a.Total labor force 20.3 millionLiteracy rate (% of adults) (1980)

Men 96%Women 51%Total 73%

School Enrollment and Expenditure Data (1981)

Total Enrollment Female EnrollmentTotal as Percentage of as Percentage of

Enrollments 1/ Age Group Total Enrollment('000)

Level and Age Group

Primary (grades 1-5,ages 7-11) 5,860 118 46

Lower secondary (grades 6-8,ages 12-14) 1,413 47 34

Total secondary (grades 9-11,ages 15-17) 798 28 34General 541 19 38Vocational and technical 257 9 26

Higher education (grades 12+,ages 18+) 241 8 27

Public Expenditure on Education and Training (1981)

Central government expenditures on educationas percentage of total government expenditures 2/ 26.2%

Central government expenditures on educationas percentage of GNP 3.1%

Central government capital expenditures on educationas percentage of all capital expenditures. 2/ 13.7%

Central government recurrent expenditures on educationas percentage of all recurrent expenditures 2/ 32.1%

1/ Gross enrollment data. Includes over-age students and repeaters.2/ Excluding expenditure on SEEs.

I. ECONOMIC DEVELOPMENT AND INDUSTRIAL TRAINING

Economic Development

1.01 During the 1970s successful management of the economy provedincreasingly difficult and by the late 1970s Turkey faced a balance ofpayments crisis, a large budget deficit, and very high rates o domesticinflation. As a result, the Government began a policy of structuraladjustment and economic reform in January 1980 which entails a greaterreliance on market forces and incentives, the introduction of measures toachieve monetary stability, and the promotion of export industries capable ofearning foreign exchange and providing employment, particularly in the privatesector of the economy. The Government has been able to achieve success inseveral of its objectives: inflation rates have fallen from 101% in 1980 to25% in 1982; exports grew at 61% in 1981 and 22% in 1982; in 1982 Turkey'scurrent account deficit was less than 2% of GNP, and GNP grew in real terms at4.6%.

1.02 The industrial sectors 1/ provided about 20% of all employment in1980, and are estimated as expanding, in employment terms, at an annual rateof 3%. These sectors are the main source of productive employmentopportunities as agricultural sector employment is more or less static.

1.03 Crucial to the attainment of the Government's economic objectives is

the sustained growth of the industrial sectors, particularly manufacturing andexporting industries. Exports are expected to grow annually at about 11% inthe next five years, concurrently with improved levels of industrialproductivity. The manufacturing sector accounts for about 22% of GDP, 11% oftotal employment and 60% of total merchandise exports. Export industries aremainly in the private sector (80% of commodity exports), which has a greaterinvolvement in light and non-process industries than the public sector.Average labor productivity was 30% higher in the private than in the publicsector. By comparison with the public sector, the private sector has agreater capacity to increase export production in the short run, and offersthe best prospect of increased export growth and employment creation.

1.04 While manufacturing industry has grown rapidly from 1978 to 1982, theproductivity of investment has declined. Even in 1978, Turkey's grossmanufacturing output per capita constituted only 1/4th, 1/6th and 1/14th ofthe levels in Portugal, Spain and Germany, respectively. In order to sustainthe growth of the manufacturing sector and to retain competitiveness ininternational markets, improved levels of productivity are essential. Inanalyzing the causes of low productivity, the Bank's Industrialization andTrade Strategy report mentioned several issues pertaining to the productivityof labor. These included inadequate industrial training and poor managementtechniques in industry.

1/ Defined here to include mining and quarrying, manufacturing, utilities,construction, transportation, storage and communications.

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Manpower Issues (Annexes 1 & 2 )

1.05 The principal issue in the industrial sector is the low level ofproductivity and poor quality of output of manufacturing industry, the resultof several factors including the previous economic strategy, institutional con-straints, as well as the neglect of industrial training over several decades.Two aspects of this issue are discussed here; (a) manpower scarcities; and(b) the causes of low labor productivity in industry.

1.06 Manpower Scarcities. Employers in industry report, and Bank findingsconfirm, a scarcity of well trained technicians, particularly in exportingindustries which require high standards of quality control, modern productiontechniques and specialized machinery. A comparison of the number ofengineers, technicians and foremen and supervisors per 1000 employees in themanufacturing sector in Turkey in 1980 with the number found in themanufacturing sector of some of its competitors in about 1971, suggests thatthe proportions found in Turkey are low and would be even lower by comparisonif more up to date data were available (Table 1.1).

Table 1.1: Comparison of Selected Occupations in the Manufacturing Sector

No. Per '000 in Manufacturing SectorForemen and

Country Year Engineers Technicians Supervisors

United States a/ 1970 33 24 47.0West Germany a/ 1970 22 35 10.0Israel a/ 1972 14 37 19.0Greece a/ 1971 5 2 4.0Turkey b/ 1980 7 9 0.5

Sources:

a/ Zymelman, M., Occupational Structures of Industries, Education Department,The World Bank, Washington, D.C., 1980.

b/ 1980 Census, State Institute of Statistics.

1.07 The scarcity of well trained technical manpower, particularlytechnicians, leads to, on occasion, technicians being paid very high rates ofpay. Wage rate data available to the mission (Annex 1) indicates that theprivate sector of industry tends to pay higher wage rates than the publicsector, except at the unskilled level. Technicians in the private sector earna high 73% of the salary of engineers in the private sector, and an equallyhigh 136% of the salary of skilled workers in the private sector (Annex 1,Table 1).

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1.08 Bank estimates of labor demand and supply were undertaken by themission for selected occupational groups, including technicians, for 1985-95.The basis for these and the detailed results are shown in Annex 2. The 1980Census was used as a basis for projecting employment, current Bank growth andproductivity assumptions for the projection period, and information on thesupply of labor was taken from the Ministry of Education (MOE) and the StateInstitute for Statistics. These estimates are summarized in Annex 2, Table 2,and show that over the projection period additional manpower demand exceedsadditional supply for engineers, technicians, skilled and semi-skilledworkers. The projections imply that attainment of target growth rates in theindustrial sector will be compromised unless supplementary means of trainingtechnicians can be found or unless a more efficient use of existing manpowercan be made. The proposed project would assist with the provision oftechnicians through the development of eight Technician Training Centers(TTCs) which will produce some 8,000 graduates over the projection period, andwill assist with improved utilization of existing resources in industrythrough the proposed development of the training programs of the IndustrialTraining and Development Center (SEGEM).

Table 1.2; Demand and Supply of Professional Scientists and Engineers,Technicians, Skilled and Semi-skilled Workers In Industry. 1985-95

(in 'OOOs)

Additional AdditionalDemand for Supply from Supply as

Estimated Labor due to Education and % ofEmployment Economic Growth Training Additional

Occupational Category in 1985 and Attrition a/ Institutions Demand

Professional Scientists

& Engineers 178 175 120 69

Technicians 104 117 20 17(of which proposedproject) (8) (7)

Skilled & Semi-skilledManual Workers 3,211 2,447 1,430 b/ 58

a/ Excluding upgrading requirements.b/ Not including on-the-job training.

Source: Mission estimates as described in Annex 2.

1.09 There are three main reasons for the scarcity of skilled andsemi-skilled workers and technicians, namely the present orientation ofindustrial training, a general lack of industrial training, and an absence oftechnician training in particular. Orientation; the education system isheavily oriented towards formal academic education as a preparation foruniversity education. As a result, graduates from the Ministry of Education(MOE) secondary technical schools often seek places in higher education ratherthan in industrial employment. Industrial Training; pre-service training ofsemi-skilled and skilled workers is undertaken, almost exclusively, by the MOEthrough the secondary technical schools, as well as trade schools and nightschools and through a small apprenticeship training program. Althoughenrollments in MOE secondary technical schools expanded quite rapidly duringthe 1970s, by 1982 only about 9% of the eligible secondary school-agepopulation were enrolled in these programs. As a proportion of totalsecondary enrollments, they remained static at about 32% between 1978/79 and1981/82. With the exception of entry level and on-the-job training providedby some major industries, training opportunities for skilled workers andtechnicians outside the formal education system are at present very limitedand receive only minor support from other concerned Government ministries andagencies. Technician Training; programs for the training of technicians inparticular are quantitatively and qualitatively inadequate. As a result,there is a scarcity of well trained technicians, particularly in industry, andthose technicians who are working in industry are either MOE technical schoolgraduates who have subsequently acquired their skills on-the-job, or areuniversity graduates or dropouts who are working at technician level. Untilsuch time as additional resources are available for the expansion ofpre-service training programs, the present informal approach to preparingtechnicians within industry will continue.

1.10 Problems arising from scarcities of skilled manpower have beencompounded by labor emigration. Typically the more skilled members of thelabor force have left and, in many cases, have not returned. Of those whohave returned, many have changed their mode of work and their economic sector,leaving formal employment to work as self-employed petty traders. Thepost-1973 depression in Europe marked the end of Turkish migration to WesternEurope, though there are still an estimated 803,000 Turkish workers there.Turkish migration began anew after 1980 to Libya and Saudi Arabia, whereTurkish contracting companies have won large contracts for constructionprojects. Remittances in 1982 were $2.2 billion, and represented 38% ofTurkey's earnings from commodity exports. In 1982 there were an estimated 1million Turkish migrants overseas, who comprised about 5% of the workforce.

1.11 Low Labor Productivity in Industry. Low levels of labor productivityin industry are due in part to inadequate industrial training programs.Several factors have contributed to this. First, there is the lack of anappropriate institutional framework for industrial training, with the resultthat the coverage and quality of industrial training programs are poor.Second, there is at present little financial incentive for an employer toprovide training, though tax reforms to alter this are now being considered bythe Government. Third, the strict control of wages and salaries by the stateresulted in a lack of instructors in industrial training programs through low

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pay. Under the recent SEE reform decree, however, employees are to begoverned by a new personnel regime which is expected to provide greaterflexibility to SEE managements in determining wages and salaries. Theproposed project addresses the issue of low labor productivity in industry.

Industrial Training

1.12 In order to improve productivity and maintain high rates of growth ofmanufactured exports, an adequate supply of appropriately trained, productiveand skilled manpower is a prerequisite. Turkey's emerging export industriesparticularly will have growing demands for skilled labor. A major effort inboth pre-service and in-service industrial training is, therefore, requiredand is one which the Government is now undertaking.

1.13 Pre-Service Industrial Training. There is a clear need to extend andimprove the MOE skill training programs, as indicated by the shortfall shownin Table 1.2 of skilled and semi-skilled workers. However, the more pressingpriority is industrial technician training, of which there is little inTurkey. The Council for Higher Education (YoK) is the key Government agencyto assist meeting this need and a detailed description of YoK is given inAnnex 3. YoK is developing existing two-year vocational institutes for thispurpose. YoK was established by a law passed by Parliament in 1981, and isresponsible for all post-secondary education, including universities and thetwo-year post-secondary vocational institutes. It is a semi-autonomousGovernment agency, which reports directly to the Head of State. There are atpresent 53 post-secondary vocational training institutes under YoK. Theseinstitutes currently have an enrollment of about 11,000 students in two-yearcourses in business studies, secretarial studies and tourism as well astechnical studies. However, they suffer from an over formalized approach totraining, inadequate premises, out-dated curricula, have almost no equipmentand are short of well-trained instructors. The Government has a program forsystematically and imaginatively reforming these vocational institutes, sothat they are more able to meet the needs of the manufacturing and exportingsectors of the economy. As a first step the Government is developing eightnew type industrially oriented Technician Training Centers (TTCs), and theproposed project would assist in the further development of this pilotprogram. In view of the need for technicians, the Government is planning arapid expansion of technican training facilities through the 1980s (Annex 3and Annex 6, Table 2).

1.14 In-Service Industrial Training. Many of the SEEs, in coal, textilesand mining, large private corporations such as Koc Holdings and public andprivate sector development finance corporations, such as the State InvestmentBank and the Industrial Development Bank of Turkey, have established trainingunits which provide training for new staff, as well as upgrading courses for

existing staff. In addition, the United Nations Industrial DevelopmentOrganization (UNIDO) has helped to establish successful in-plant trainingprograms in several large industries, including fertilizers, iron and steel,petrochemicals and pulp and paper processing. The main Government agency forin-service industrial training is the Industrial Training and DevelopmentCenter (SEGEM), established in 1978 and described in Annex 3. SEGEM is

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managed by a Board which includes representatives from the State PlanningOrganization (SPO), the Ministry of Industry and Trade (MIT) and the MOE. Forbudgetary purposes, it is attached to the MIT. The responsibilities of SEGEMare to provide in-service training to the public and private sectors ofindustry in management, technical subjects and production, mainly at theprofessional level, and this is now being extended to include the supervisoryand technician levels. SEGEM is at an important stage in its development andhas made the transition from a pilot project to a national and semi-autonomoustraining agency. SEGEM training programs have grown rapidly in the past fewyears, from 400 participants in 1979 to 2,500 in 1982. In 1982, SEGEM ran 100training programs for staff drawn from some 1,270 public and privateenterprises, using its own 45 professional staff as well as consultants fromindustry, universities and abroad. SEGEM also provides short-termcounsultancy advice to industry, using SEGEM staff and internationallyrecruited experts. Three-quarters of all SEGEM courses are held outside theirheadquarters in Ankara, and are either put on in-plant or in facilitiesprovided by local Chambers of Industry.

Government Industrial Training Policies and Budgetary Support

1.15 Government policy for industrial training is reasonable. It hasthree thrusts; (a) to improve the effectiveness of existing programs; (b) toincrease the provision of industrial training; and (c) to establish anappropriate institutional framework in which industrial training will prosper.

1.16 Effectiveness. Agencies engaged in industrial training have recentlybegun to improve their effectiveness by linking their training more directlyto the needs of industry. In 1983 the MOE introduced a new program aimed atlinking the secondary technical school curriculum to the needs of industry.Eight large employers in both the public and private sectors of industry haveactively cooperated with secondary technical schools located in the vicinityof their plants. Some 500 final year secondary technical school students inthe Istanbul region have been taken on by the firms and given periods ofin-plant training and experience of up to three months. On leaving school,they are assured of employment in the parent factory. Similar close linkageswith industry have been embedded into the new program of technician trainingrun by YoK (para 2.09).

1.17 Expansion. In the past few years, a training capacity has beenestablished in several industries and SEEs (para. 1.14). While the industrialtraining programs of established training agencies such as SEGEM are expandingrapidly, special attention is being given to training in new ventures. Forexample, the National Small Industry Organization, an agency under the MIT toassist small-scale enterprises, is proposing to develop a national system ofextension services for small scale industry. At present only one site exists,at Gaziantep, which would serve as a model for the subsequent development ofother centers.

1.18 Institutional Development. At present there is no overall industrialtraining system and a long-term component of Government policy, designed toencourage private industry to undertake more training, is the development of anational industrial training system, which will both rationalize the provision

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of industrial training and provide financial incentives to employers toprovide training. The main Ministry responsible for the development of theindustrial training system is MIT, which, through SEGEM, is proposing to laythe groundwork in the next two years by undertaking preparatory studies and byconsulting employers, unions, Chambers of Industry and responsible Governmentagencies on an appropriate design. There is a growing awareness in theprivate sector of industry of the need to develop in-plant training. TheTurkish Chambers of Industry, which works closely with SEGEM, has set up aspecial commission to assist the development of industrial training andallocated about US95 million in 1983 from members' dues for this purpose. TheState Planning Organization (SPO) is undertaking preliminary studies of adraft industrial training law which would establish the legal and financialbasis for a training levy on all industrial employers.

1.19 Budgetary Support. In 1981, Turkey spent an amount equivalent to3.1% of GNP on education. This is comparable with other countries at asimilar stage of development. Education accounted for 26.2% of all Governmentexpenditure in the same year; primary, secondary and higher educationreceiving 55%, 26% and 19% of the budget, respectively. Technical educationaccounted for 60% of all expenditures at the secondary level, three-quartersof which are recurrent expenditures, mainly teachers' and instructors'salaries. At the post-secondary level, only 1.5% of the 1982 higher educationbudget was allocated to the two year post-secondary vocational trainingprogram, and the Government is increasing this in order to further developtechnician training at the expense of the further development of otherbranches of higher education. Education has been free at all levels untilnow, though the Government is now proposing to introduce fees at theuniversity level. However, to promote technician training, the Government isnot proposing to introduce fees for the technician level at this time.

1.20 Expenditures on industrial tra.ining through SEGEM have grown rapidly,and at an annual rate of 51% from 1980/81 to 1982/83. In the latter year,SEGEM's budget was TL 225 million, 1% of the MIT budget to which SEGEM isattached for budgetary purposes. SEGEM's regular budget has been derived fromthree sources; direct Government support for SEGEM's budget through the MIT(82%); payments made to SEGEM by participants in SEGEM's training courses tocover the costs of training materials, and occasional purchases ofpublications produced by SEGEM (5%); and, contributions in kind from companiesworking with SEGEM on in-plant training programs (estimated as amounting to13%). Payments in kind are typically made in the form of the provision ofboard and lodging for SEGEM staff and course participants. In addition tothese sources of local funds, SEGEM received, in 1983, project assistance fromUNDP equivalent to 5% of the 1983 budget. Until now, SEGEM has not chargedfees to cover the direct costs of its training programs. In recent years,SEGEM's programs have become increasingly popular, and in order to ensure thatthe maximum benefit is derived from each program by participants, to increasethe level of service SEGEM provides, and in order to diminish the burden onthe Government of SEGEM's industrial training program, SEGEM management hasdecided to introduce an element of cost sharing with clients which willrepresent about 20% of the direct cost of SEGEM's training programs. Thisestablishes for the first time the principle of cost recovery for SEGEM'sprograms.

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The Bank's Role in Education and Training

1.21 Previous Experience. The Bank has so far provided one loan ofUS$13.5 million for an Education Project (Loan 748-TUR) which was signed in1971 and closed in 1981. The First Education Project supported secondarytechnical education through the provision of equipment to 32 technicalsecondary schools, a technical teacher training college, as well as to theScience Equipment Production Center and the Educational Film, Radio andTelevision Center. The project also included the construction and equippingof twelve trade schools, six adult training centers and a Management TrainingInstitute. The Project Performance Audit Report No. 4018 (PPAR) (dated June28, 1982) and the Project Completion Report of June 1981 stated that theeducational impact of this project was considerable, particularly on secondarytechnical schools, with project equipment well used and maintained andenrollments in the secondary technical schools practically as anticipated atappraisal. However, there were severe delays in the construction of newbuildings. These reports highlighted a number of problems such as politicaldisruption, poor design and construction of school buildings and the lack ofan effective project implementation unit. The experience gained duringimplementation of the Education Project has been taken into account in thedesign of the proposed project in two ways; (a) to ensure smoother project,implementation, YoK, SEGEM and the State Institute for Statistics (SIS) wouldeach be responsible for implementing their own project components; and(b) the proposed project excludes financing for the construction of newphysical facilities. The Bank has also supported industrial trainingindirectly, through loans to specific industrial sectors and to branches ofindustry which have included project or sector-related training. Projectswith a component of this type in the last few years have included loans forthe textile, sugar, steel and copper industries, as well as small-scaleindustries. The major emphasis of the industrial training assistance providedin these loans has been technical assistance to identify training needs.

1.22 Future Strategy. The objective of Bank lending in the education andtraining sector is to support the Government's policy to improve industrialproductivity. This encompasses training for technology development and thedevelopment of appropriate industrial training programs and policies,including the development of measures to reduce the burden of recurrentexpenditures of industrial training on Government, such as cost recovery andlevies on employers. The initiatives of the Chambers of Industry to establishan industrial training fund, and the development by the State PlanningOrganization (SPO) of a legal and financial basis for an industrial traininglevy on industrial employers are important steps which the Bank will monitorcarefully (para 1.18). In the proposed project the principle of cost sharingfor industrial training will be established for the first time with theintroduction of fees for SEGEM's training programs.

1.23 The Bank is proposing to support two key agencies involved inindustrial training, SEGEM and YoK. Further project support for theseagencies and other industrial training agencies is likely to be requested bythe Government in the future. A research and development component isanticipated in any future industrial training projects which would, as well asmaintaining the initiatives begun in the proposed project, encourageappropriate technology development for Turkey's industrial sector.

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II. THE PROJECT

Objectives and Scope

2.01 The proposed industrial training project is ConsistenL with theGovernment's development strategy to improve productivity and maintain highrates of growth of manufactured exports (para. 1.03). The main projectobjectives are as follows:

(a) to strengthen the institutional capacity of YoK and SEGEM to provideindustrial training programs;

(b) to alleviate scarcities of technicians in industry by assisting thedevelopment of pre-service technician training programs; and

(c) to improve industrial productivity by developing SEGEM's in-service,on-the-job, industrial training programs for middle level manpowerand professional staff, and to establish a basis for a nationalindustrial training system. The project would also include a smallbut important component to facilitate the management of the economyby improving the quality of staff with responsibility for building upeconomic and social statistics.

2.02 In order to assist the Government achieve these objectives, theproject would include the provision of:

(a) equipment, furniture, and minor refurbishing for eight pilotTechnician Training Centers (TTCs) under YoK;

(b) technical assistance to YoK for curriculum and staff development forthe TTCs and to assist with the strengthening of the TTC managementsystem and future project development;

(c) equipment and technical assistance to SEGEM to assist with thedevelopment of a framework for a national industrial training system,program expansion, diversification and improvement, and futureproject development; and

(d) technical assistance to the State Institute of Statistics (SIS) foran overseas fellowship training program.

Description of the Project

2.03 Individual project items are described below. The proposed programof technical assistance relating to each institution is described in Annex 3and shown in detail in Annex 5.

A. The Council for Higher Education (Y-K)

2.04 The YoK component would consist of equipping, furnishing and minorrefurbishing for eight pilot TTCs, as well as technical assistance for expertservices to assist the development of new curricula and staff, strengthening

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the management system, and for a fellowship training program for instructors.The technical assistance program is necessarily substantial, involving some 20man years of expert services and 126 man years of fellowship training.Because of the scale of the technical assistance, special attention has beengiven to this aspect of the proposed project, described in para. 3.18, Annex 3and Annex 5.

2.05 Pre-Service Technician Training Centers (TTCs). YoK (para. 1.13,and Annex 3) presently manages 53 two-year post-secondary institutes under itscontrol, and this project would support the conversion of eight of these intopilot Technician Training Centers (TTCs). The eight pilot centers have beenselected on the basis of; (a) their proximity to local industry; (b) thelevel of support for the program from local industry; and (c) the adequacy ofthe existing buildings for technician training programs. The eight siteschosen are Antalya, Cankiri, DUzce, Iskenderun, Istanbul, Izmir, Kirikkale andKonya. These centers have classroom and workshop space that need minimalrefurbishing to become adequate for their purpose (para. 3.04).

2.06 The project would provide about 2,600 training places in newindustrial technician training programs (Annex 6, Table 1). The projectedenrollment target would be reached by 1990 (Annex 6, Table 2), and the numberof technicians graduating annually would be about 1,200 from 1991 onwards.

2.07 Curriculum and Staff Development. The project would assist with thedevelopment of curricula for technician training, taking into account theparticular requirements of Turkish manufacturing industry. The curriculumwould cover a two-year training period, based on a 35 hour teaching week, withapproximately 10 hours of theoretical and academic work, 20 hours oflaboratory and workshop instruction and five hours of practical activities.There would be a core of common subjects which TTC students would take intheir first year. This would include math, basic science, computerapplications, technical drawing and English. Students would specialize in oneof ten specialist areas which would include control and instrumentation,communications, industrial electronics, electrical engineering, mechanicalengineering, air conditioning and refrigeration, foundry technology,agricultural engineering, construction technology and computer programming.The emphasis in the curriculum would be on equipping students with a range ofskills within their chosen specializations to ensure that graduates are ableto adapt to rapidly changing technology in industry. In this regard, computerapplications would be a core subject for both years and would equip graduatesto utilize modern technology fully. Project institutions have achieved ahigh level of cooperation with local industry, particularly in placingstudents for training. The TTC at Iskenderun, for instance, places secondyear mechanical engineering students in the nearby steel mill for 45 days ofpractical training. At all project sites, local industrial employersexpressed strong interest in expanding training placements. Under theproposed project, students will spend up to eight weeks per school year inindustrial placements and existing industry-TTC links would beinstitutionalized through the establishment of Advisory Boards (para. 2.09).

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2.08 Curriculum development would take place at two of the TTCs whichalready have some experience in the development of technician training coursesand have close contacts with local industry. The Izmir TTC would be the maincurriculum development center with principal responsibility for mechanicalengineering and construction courses. A subsidiary center would be developedat the Istaaiul TTC for electrical and electronic engineering programs andcomputing. To assist with the development of suitable curricula for these newcourses, the project would finance expert services for a total of 138man-months (Annex 5). The curriculum experts would also assist the TTCDirectors to achieve efficient use of classrooms and workshop space (para.3.04).

2.09 In order to ensure the continuing relevance of the TTC program to theneeds of local industry, strong links with local industry are essential.These already exist at the eight pilot TTCs proposed in this project and havedeveloped because of the interest of local industry which have providedpart-time instructors and in-plant training facilities where none presentlyexist. In order to enhance the continuity of such linkages through a moreformal arrangement, an assurance was received during negotiations that eachTTC would have an Advisory Board with representation and terms of referencesatisfactory to the Bank, including, in addition to the Director of the TTCand staff from YoK, representatives of local industry.

2.10 To staff the eight project TTCs, there would be a need forapproximately 172 teaching staff of whom 40 would teach core subjects and 132would teach specialist subjects (Annex 6, Table 3). The additional staffrequired for the proposed eight TTCs are some 156, since approximately 16qualified teaching staff already are employed by Y6K; some 200 part-timeinstructors are available from local industry. Under this project there wouldbe a major effort in staff training, which would have two components. Thefirst consists of an overseas fellowship training program for some 156 fellowsfor nine months duration. These staff would be recruited from graduates ofuniversity faculties of science and engineering. This overseas fellowshipprogram would be conducted in three time phases with three groups each of 52fellows. Each group would receive foreign language training in Turkey priorto overseas training, which would be undertaken through existing languagetraining centers under the administration of Y6K. An assurance was receivedat negotiations that the fellowship training would be carried out inaccordance with terms of reference, including a program and a timetable,satisfactory to the Bank. The timing of the overseas fellowship trainingprogram (Annex 9, Schedule 1) and enrollment growth (Annex 6, Table 2) havebeen phased to ensure the availability of well-qualified instructors when thenew programs begin enrollment. On their return, these fellows would providethe basic core of technician instructors for the eight TTCs.

2.11 The second component of the staff training program has a longer termobjective, comprising the development of an in-service staff developmentprogram at Izmir. Alongside its curriculum development activities, Izmirwould develop training programs designed to upgrade new and existing staffteaching in the TTCs. The facilities at Izmir are adequate for this purpose,and existing staff, with appropriate technical assistance, have the capacity

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to develop this program. The staff development program at Izmir would caterto the additional staff requirements due to possible future expansion of theeight TTCs and, in addition, the needs of the other 45 TTCs as the programdevelops. In order to assist with the staff development programs at Izmir,the project includes 24 man-months of expert services, and 72 man-months ofoverseas fellowships for about eight instructor trainers (Annex 5), who wouldreturn to Izmir following their overseas training.

2.12 Recent changes to the regulations governing Y-oK administered salarieshave improved those of TTC staff by placing them on the university pay scale.The career prospects for an instructor with YbK are good, given theopportunity for training abroad and the planned expansion of the system.Under these circumstances, it is not anticipated that YbK would experiencedifficulty in recruiting suitable staff for fellowship training. Theattrition rate amongst overseas fellows is expected to be low, as theGovernment has a well-defined and effective bonding system.

2.13 Strengthening the TTC Management System. Y-K already manages the 53two year post-secondary vocational institutes, but a major objective of theproposed project is to assist Y-K strengthen its management system for the newtype TTCs. In particular, it would enhance the management of studentadmissions, course development, academic standards, teaching methods,examinations, student placement in training and employment, staffing and staffdevelopment, equipment procurement and the establishment of appropriatephysical facilities, and the development of a monitoring and evaluation systemto provide feed-back into the curricula and program development. To assistwith the strengthening of the management system, the project would finance 69man-months of expert services including a technical education planner (two andone-half man-years), an equipment procurement and facilities planner (oneman-year), and an examination and accreditation expert (one man-year) as wellas short term assistance to cover monitoring, evaluation and educationmanagement aspects (15 man-months) (Annex 5). The project would also finance34 man-months of short term overseas fellowships for 18 YoK managerial staffand senior management of the TTCs. The eight pilot TTCs supported in thisproject are an initial step in the development of pre-service techniciantraining in Turkey, and YZK is planning to convert a further 16 of the other45 two-year post-secondary institutions under its control into similarlyindustrially oriented TTCs. In order to assist YoK ensure the appropriateexpansion of its technician training facilities, the project would alsoprovide 12 man-months of expert services for feasibility and pre-investmentstudies.

B. The Industrial Training and Development Center (SEGEM)

2.14 The project would assist the Government prepare a framework for anational industrial training system and promote in-service industrial trainingthrough the provision to SEGEM of expert services, overseas fellowshiptraining and equipment. The technical assistance program is necessarilysubstantial, involving some 14 man-years of long and short term expertservices and some eight man-years of overseas fellowship training. Because ofthe scale and complexity of the technical assistance, special attention has

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been given to this aspect of the proposed project, described in para. 3.18,Annex 3 and Annex 5. Specifically, the project includes the provision of;

(a) technical assistance to assist with the organization, development andplanning of a national in-service industrial training system;

(b) equipment and technical assistance for program development andexpansion;

(c) a strengthened industrial training consultancy facility; and

(d) expert services for feasibility and pre-investment studies.

An assurance was received at negotiations that fellowship training would becarried out in accordance with terms of reference, including a program and atimetable, satisfactory to the Bank.

2.15 SEGEM (Annex 3) is a semi-autonomous agency existing under theadministrative control of the MIT. It was established with assistance fromUNIDO for the purpose of enhancing Turkey's in-service industrial trainingcapacity. The Government intends that SEGEM would continue for at least thelife of the proposed project, and proposes to enact legislation to establishSEGEM as a permanent body and to strengthen its role as an industrial trainingagency. Pending enactment of such legislation, the Government gave assurancesat negotiations that SEGEM would continue to exist during the life of theproject with powers and responsibilities sufficient to enable it to carry outthe project, satisfactory to the Bank. The Government also expressed itsintention to seek formal legislation to regularize SEGEM's future status.

2.16 National Industrial Training System. To help coordinate and planindustrial training (para. 1.18), the project would finance about sixman-years of technical assistance to SEGEM for a core team of about fourspecialists plus short-term specialists. The objective would be to assistSEGEM design a national industrial training system for the country, focusinginitially on the professional, technician and supervisory levels. The tasksinclude the identification of manpower requirements in industry, thedefinition of occupational standards, the design of an accreditation systemand a review of alternative ways and means of financing the envisaged system(Annex 5). There are existing specialist staff in SEGEM who would act ascounterparts to the four core experts. They would work closely with theDirector General of SEGEM, and maintain a close liaison with other governmentagencies, Chambers of Industry, the SEEs, private sector employers and unions(Annex 3). An essential element of this task would be the compilation of aninventory of existing agencies and programs undertaking industrial training bytype, duration and level. To assist with this task, the project would financecomputer equipment and associated software. The project would also finance 24man-months of overseas fellowship training and study tours for SEGEM staff tostudy other countries' accreditation systems and the experience of othercountries in developing, financing and managing industrial training systems.

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2.17 Program Development and Expansion. The objectives of this projectcomponent are to assist SEGEM to expand the range, scope and quality of itsindustrial training activities by;

(a) expanding the coverage and improving the quality of the two to threeweek in-service training programs in management, technology andproduction techniques run by SEGEM, from 2,500 participants in 1982to about 4,450 participants by 1988, and assisting SEGEM developspecialized technology training programs in key areas identified byindustry;

(b) extending the range of SEGEM's in-service training programs toinclude, from 1984, about 400 technician and supervisory level staffannually. By 1988 this program would expand to about 2,000technicians and supervisory staff per annum;

(c) assisting SEGEM to develop training programs for new and servinginstructors in public and private sector industrial training centersand hence to support directly the development of industrial trainingcapabilities in manufacturing industry;

(d) improving the quality of SEGEM's intensive English language trainingprograms for technical and managerial staff who require Englishcompetency for production or export marketing;

(e) enhancing SEGEM's capacity to undertake extension work in industryand improve the capacity of in-house training programs through thedevelopment of a training materials and audio-visual aids productioncenter.

2.18 To assist SEGEM achieve these objectives, the project would provide;

(a) equipment for a training materials and audio-visual aids productioncenter at SEGEM headquarters in Ankara;

(b) five man-years of expert services in the fields of generalmanagement, production management, training of trainers, English forspecial purposes, and training materials production, plus overseasfellowship training for counterpart staff totalling some sixman-years (Annex 5). There are existing specialist staff in SEGEMwho would act as counterparts to the four core experts. The expertswould report to the heads of the concerned specialized departmentswithin SEGEM.

2.19 Industrial Training Consultancy Facility. The project would provide20 man-months of expert services to strengthen SEGEM's on-going industrialtraining programs (para. 1.14 and Annex 3), and to assist SEGEM to meet therequests it regularly receives from industry for spot consultancies andtraining in advanced production and manufacturing techniques. This programwould focus on manufacturing export industries where new technologies arebeing introduced to increase productivity. Subject areas to be covered would

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include specialized welding techniques, corrosion control, heat treatment,chemical processes, numerical control, materials management and stockcontrol. The proposed facility would give SEGEM flexibility to respondquickly to requests received from industry.

2.20 Future Project Development. To assist the Government identifyfurther industrial training measures to improve productivity, the projectwould finance expert services for 12 man-months for pre-investment andfeasibility studies for a possible follow-up project.

2.21 Staffing. SEGEM's proposed program expansion will require that by1988 the professional staff complement would double from around 50 in 1983 toaround 100, and therefore would require the additional recruitment of some 50professional staff. The additional staff would be recruited from the sourcesthat SEGEM has used in the past, namely industry and commerce, universities,and new graduates entering the labor market. As a consequence of SEGEM'ssemi-autonomous status, it is able to pay salaries that are attractivecompared with those paid in Government and to provide a range of additionalbenefits. The strong support for SEGEM of the parent entity, the MIT, ensuresthat adequate budgetary provision will be made available for the anticipatedgrowth in expenditures (para. 3.07).

2.22 Cost Sharing. In order to establish the principle of cost sharing,SEGEM is proposing that participants in SEGEM's programs contribute towardsthe cost of these (para. 1.20). This policy is regarded as an important stepin the development of SEGEM, and SEGEM's terms of reference contain provisionsto enable it to accept fees. It is proposed that participants contribute 20%of direct training costs at this stage. This proportion represents areasonable maximum for employers to bear, without diminishing the impact ofSEGEM's training programs. SEGEM plans to increase this proportion over time,with the ultimate goal of full cost recovery. An assurance was received atnegotiations that SEGEM would initiate a cost recovery system acceptable tothe Bank so that the percentage of direct costs of SEGEM's programs recoveredby SEGEM would: (a) by December 31, 1986 be not less than 20%; and (b) foreach year thereafter be increased by a reasonable percentage in consultationwith the Bank.

2.23 Monitoring and Evaluation. SEGEM has a monitoring and evaluationsystem in place. This comprises the administration of a questionnaire to eachparticipant on any SEGEM-run course. The questionnaire is used to evaluatethe perceived effectiveness of programs. Follow-up visits by SEGEM staff toindustry monitor the subsequent on-the-job performance of participants, andthis provides a longer and more comprehensive time frame of evaluation of theeffectiveness of SEGEM programs. In addition, SEGEM recently surveyed some1,200 industrial enterprises in order to determine industry's training needs.The results of this extensive survey have assisted SEGEM to formulate programobjectives for the future. An assurance was received at the time ofnegotiations that this monitoring and evaluation program would be maintained.

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C. State Institute of Statistics (SIS)

2.24 The State Institute of Statistics (SIS) (Annex 3) is responsible forthe compilation of all statistical information in Turkey. Informationproduced by the SIS is used by line agencies to fulfill Government policy, aswell as by the SPO for analysis and prescription of policy. To assist the SISimprove the quality of its economic data gathering, compilation andpresentation, the project would finance 217 man-months of overseas fellowshiptraining for some 55 SIS staff engaged in the computation, analysis anddevelopment of economic data. The fellowship program would cover themethodology, computation, analysis and application of agricultural, mining,manufacturing, construction, foreign trade, national accounts and priceindices data in the economic statistics and research departments of the SIS.It would also include state-of-the-art reviews and upgrading in dataprocessing, census geography and special training for systems analysts andprogrammers in the technical operations department. The program would aim toupgrade more senior SIS staff who would, on completion of training, act astrainers of other SIS staff in Turkey. There would be a practical emphasis onthe fellowship program which would be conducted, as far as possible, inworking environments. This is a large and complex fellowship program and, inorder to ensure a timely implementation of the program, the SIS would selectone of the internationally qualified firms experienced in providing this typeof service (Annex 3). A program and timetable acceptable to the Bank has beendeveloped which outlines the fields in which overseas fellowship trainingwould occur, the duration of study and the timing of fellowships (Annex 5).An assurance was received at negotiations that the fellowship program would becarried out in accordance with terms of reference, including a timetable and aprogram, satisfactory to the Bank.

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III. PROJECT COSTS, FINANCING, MANAGEMENT AND IMPLEMENTATION

Cost of the Project

3.01 Summary of Project Costs. Project costs are estimated at TL 12.9billion or US$44.3 million equivalent and include the refurbishment ofexisting buildings, provision of equipment, specialist services andfellowships for the project items shown in Table 3.1 and further detailed inAnnex 8.

Table 3.1 Summary of Costs by Project Item

% ofTotal

(TL Million) (US$ Million) BaseLocal Foreign Total Local Foreign Total Cost

Council for Higher Education (Y-K)

Technician Training Centers (8) 659 4,963 5,622 2.26 17.02 19.28 60.8Curriculum and StaffDevelopment Program 146 1,570 1,716 0.50 5.39 5.89 18.6

TTC Management System 38 222 260 0.13 0.76 0.89 2.8Future Project Developmpent 6 33 39 0.03 0.11 0.14 0.4Incremental Rec. Costs 71 - 71 0.24 - 0.24 0.8

Sub-total 920 6,788 7,708 3.16 23.28 26.44 83.4

Industrial Training and Development Center (SEGEM)

National Ind. Trng. System 38 435 473 0.13 1.49 1.62 5.1Program Development 33 218 251 0.11 0.75 0.86 2.7Industrial TrainingConsultancy Facility 11 55 66 0.04 0.19 0.23 0.7

Future Project Development 6 33 39 0.02 0.11 0.13 0.4Incremental Rec. Costs 557 - 557 1.91 - 1.91 6.0

Sub-total 645 741 1,386 2.21 2.54 4.75 14.9

State Institute of Statistics 6 150 156 0.02 0.52 0.54 1.7

Total Base Costs 1,571 7,679 9,250 5.39 26.34 31.73 100.0

Phys. Contingencies 157 768 925 0.54 2.63 3.17 10.0Price Contingencies 497 2,250 2,747 1.70 7.73 9.43 29.7

Total Project Costs 2,225 10,697 12,922 7.63 36.70 44.33 139.7

Front End Fee on Bank Loan - 27 27 - 0.09 0.09 -

Total Financing Required 2,225 10,724 12,949 7.63 36.79 44.42 -

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A surmnary of project costs by type of expenditure is given in Table 3.2

Table 3.2 Project Cost by Category of Expenditure

% ofTotal

Category of (TL Million) (US* Million) BaseExpenditure Local Foreign Total Local Foreign Total Cost

Renovation and furniturefor existing facilities 85 37 122 0.29 0.13 0.42 1.3

Equipment 575 5,151 5,726 1.97 17.67 19.64 61.9

Technical AssistanceFellowships 49 1,248 1,297 0.17 4.28 4.45 14.0Specialists 234 1,243 1,477 0.81 4.26 5.07 16.0

Sub-total 283 2,491 2,774 0.98 8.54 9.52 30.0

Incremental Recurrent Costs 628 - 628 2.15 - 2.15 6.8

Total Base Costs 1,571 7,679 9,250 5.39 26.34 31.73 100.0

Phys. Contingencies 157 768 925 0.54 2.63 3.17 10.0Price Contingencies 497 2,250 2,747 1.70 7.73 9.43 29.7

Total Project Costs 2,225 10,697 12,922 7.63 36.70 44.33 139.7

Front End Fee on Bank Loan - 27 27 - 0.09 0.09 -

Total Financing Required 2,225 10,724 12,949 7.63 36.79 44.42 -

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3.02 Basis of Cost Estimates. Costs of refurbishing existing facilities(including provision of furniture) are based on mission estimates of the workrequired to bring structures to acceptable standards and average US$200 perstudent place. These costs would be borne by the Government. Equipment costshave been estimated on the basis of costs per student place in comparableBank-wide f nanced facilities (Annex 7). Technical assistance costs (about30% of project total) are estimated at an average of US$11,900 per man-monthof specialist services and US$2,500 per man-month of fellowship training. Theman-month cost of specialists includes housing, relocation costs, salaries,travel costs, subsistence, office services, fees, overhead and recruitmentcosts. Base cost estimates reflect prices at the time of negotiations.

3.03 Customs Duties and Taxes. Equipment and goods imported for use byGovernment ministries are exempt from duties.

3.04 Costs, Areas per Training Place and Use Factors. Equipment costs pertraining place in the TTCs are estimated at an average of US$6,500 which arecomparable with those of Bank-wide financed facilities for technician trainingprograms of this type (Annex 7). Existing building facilities at projectinstitutions are adequate in size and layout to house the proposed trainingprogram supported by the project. Minor refurbishment is required at almostall sites, and is part of the project. Use factors in TTCs would be about 85%for classrooms and just under 70% for workshops. Assurances were obtainedfrom YoK during negotiations that it would; (a) provide appropriatelyrefurbished buildings at project institutions prior to the scheduled arrivalof equipment; and (b) that to permit a minimum adequate space provision, thenet floor area of classrooms, workshops and laboratories available to projectassisted programs would equal or exceed 5.0 m2 per project assisted trainingplace.

3.05 Contingency Allowances. Project costs include a contingencyallowance for unforeseen physical additions, equal to 10% of the estimatedcost of all project items. Price contingencies between negotiations (February1984) and the end of project implementation are estimated at US$9.4 millionequivalent, or 27% of base cost plus physical contingencies. Annual rates ofprice increases have been applied to both local and foreign costs and for allcategories in US$ terms at the following annual rates; 8% in 1983, 7.5% in1984, 7.0% in 1985 and 6% thereafter. By expressing both foreign and localprice contingencies in US$ equivalencies, it has been assumed that the presentpolicy of adjusting the lira exchange rate to reflect the inflationdifferential between Turkey and its major trading partners will continue. Thelira has devalued in accordance with this pattern since 1980 and is nowadjusted daily on a crawling-peg system. Total contingencies represent 40% ofthe base cost.

3.06 Foreign Exchange Component. The foreign exchange component wasestimated as follows; (a) refurbishment of existing facilities, 25%;(b) equipment, 90%; (c) specialist services, 80%, and (d) fellowships, 95%.These percentages have been determined by; (a) estimating the indirect

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foreign exchange of construction; (b) assuming that all equipment would beimported; and (c) the anticipated composition of the technical assistanceprograms. Including contingencies, the foreign exchange component isestimated at US$36.7 million, or about 83% of total costs.

3.07 Recurrent Costs. In order to ensure the attainment of projectobjectives, adequate budgetary provision is essential. The project thereforeincludes the estimated annual incremental recurrent costs (includingadditional salaries, expendable materials and maintenance costs) over theproject period. When fully operational in 1989, the annual incrementalrecurrent costs absorbed by the proposed eight YoK administered TechnicianTraining Centers and the in-service staff development program would representabout 1% of the estimated 1989 annual budget for the overall post-secondaryvocational and technician program, and a negligible proportion (less than0.1%) of the estimated total 1989 post-secondary education and trainingbudget. These incremental recurrent costs will be offset in part by limitedamounts of productive work undertaken by students in workshops and duringperiods of in-industry training. When fully operational in 1988, the annualincremental recurrent costs due to the proposed project with SEGEM wouldabsorb additionally about 1% of the estimated 1988 budget of the MIT. Theburden on the Government of these incremental recurrent costs will bediminished by about 12% because of SEGEM's proposed cost recovery of 20% ofdirect training program costs. The anticipated incremental recurrent costsabsorbed by the proposed project with SIS are negligible. The incrementalrecurrent costs absorbed by the project are within the capacity of YoK and theGovernment to finance.

3.08 Return to Investment in TTCs. There are quantifiable costs andbenefits to the proposed development of technician training in the eightTechnician Training Centers. The costs of the investment comprise;refurbishing, equipping, furnishing, expert services for curriculadevelopment, expert services for the development of a management system inYoK, a fellowship program for instructor training, additional incrementalrecurrent costs deriving from higher salaries paid to more highly qualifiedinstructors and expendable materials and maintenance. The benefits of theinvestment are the improved quality of industrial manpower, and henceincreased industrial productivity. As a proxy for these benefits, theincremental salaries earned by more highly qualified technician graduates ofthe eight TTCs as compared with the salaries of previous graduates are taken.On that basis, the ratio of the present value of the estimated benefits to theproposed development of the eight TTCs to estimated costs is a factor of 2.5,which implies a high return to resources devoted to this component of theproject (Annex 4).

Project Financing

3.09 The proposed Bank loan of US$36.8 million would finance the foreignexchange component of the project (including the front-end fee of US$0.1million). The Government would finance the balance of project costs. Projectfinancing would be in accordance with Table 3.3. In order to expeditepre-investment work, retroactive financing of up to US$0.2 million is

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recommended for YoK to cover the cost of office equipment and specialistservices necessary for timely project start up. It would be limited toexpenditure incurred prior to loan signing but after June 30, 1983.

Table 3.3 Financial Plan

Estimated shareImplementing Agency and Government Bank Total of BankCategory of Expenditure ------- US$ million -------- financing (%)

A. Council for Higher Education (YbK)

Refurbishment of existingbuildings 0.6 - 0.6 0

Equipment 2.7 24.0 26.7 90Technical Assistance 0.9 8.2 9.1 90Future Project Development - 0.2 0.2 85Incremental Recurrent Costs 0.4 - 0.4 0

Sub-total 4.6 32.4 37.0 88

B. Industrial Training andDevelopment Center (SEGEM)

Equipment 0.1 1.0 1.1 90Technical Assistance 0.3 2.4 2.7 89Future Project Development - 0.2 0.2 85Incremental Recurrent Costs 2.6 - 2.6 0

Sub-total 3.0 3.6 6.6 55

C. State Institute of Statistics

Technical Assistance - 0.7 0.7 95

D. Front End Fee - 0.1 0.1 100

Total Financing Required 7.6 36.8 44.4 83

Management and Implementation

3.10 The proposed project would be implemented by the three Governmentagencies involved; the Council for Higher Education (Y'oK), the IndustrialTraining and Development Center (SEGEM), and the State Institute forStatistics (SIS). The organization, management and implementation capacity ofY6K, SEGEM and SIS are described in detail in Annex 3.

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3.11 YbK Project Management. The proposed project would be administeredthrough the Project Implementation Unit in the Technician Training Unit (TTU)of YoK (Annex 3 and Annex 10, Chart 2) headed by the Director General of theTTU, also the Director of the PIU. During appraisal, the organization andmanagement system of the TTU, the composition of the PIU, and links withindustry and the universities were reviewed by the Bank and are satisfactory.The Director General/Director of the PIU, Procurement Specialist and ProjectAccountant/Finance and Administration Officer have been appointed. BySeptember 30, 1984, a facilities planner (to plan the upgrading, renewal andexpansion of the TTC facilities), a teacher recruitment and placement officerand an Industry and University Relations Officer would be appointed. Theseofficers and staff would be based in Ankara. There would also be a curriculumand teacher training development unit established at the Izmir TTC and asubsidiary curriculum development unit and English Language and CurriculumDevelopment Unit established at the Istanbul TTC by September 30, 1984.Assurances were received from YoK during negotiations that the three remainingmembers of YoK's TTC management staff would be recruited prior to September30, 1984.

3.12 SEGEM Project Management. SEGEM's management structure has developedwith assistance from UNIDO since 1978 and this has enabled it to develop soundtechnical resources and administrative procedures (Annex 3). Through itscooperation with UNIDO, SEGEM has in place a team experienced in theadministration of technical assistance, which has managed a short-termtechnical assistance program comparable in design to that of the proposedproject. The existing management team in SEGEM is capable of implementing theSEGEM component of the proposed project with existing staff (Annex 10,Chart 3). The Director General of SEGEM would be responsible for theimplementation of the project, assisted by a Project Coordinator (Annex 10,Chart 3).

3.13 SIS Project Management. The SIS was established in 1962 and isresponsible for the compilation and presentation of all statistical data inTurkey (Annex 3). The President of the SIS would be responsible for projectimplementation, assisted by the Directors of the Directorates of Economic andSocial Analysis and Data Processing Center (Annex 10, Chart 4). Thefellowship program comprises training in these two Directorates. These SISstaff have previous experience of administering overseas fellowship training.

3.14 Building designs. YMK's Director General of the TTU would hire localarchitects to carry out minor design and supervision work associated withalterations and refurbishment of existing facilities.

3.15 Site Acquisition. There are no site acquisition problems because allproject institutions will be housed in existing facilities.

3.16 Procurement. Invitations to bid for individual project items would begrouped to the maximum extent possible and contracts awarded on the basis ofTable 3.4.

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Table 3.4: Procurement Arrangement /a

-----------USS Million---------Project Procurement MethodElement ICB LCB Other Total Cost

Renovation and furniture 0.3 0.3 0.6for existing facilities - (0.0) (0.0) (0-0)

Equipment 21.3 4.0 2.5 27.8(19.4) (3.6) (2.0) (25.0)

Technical Assistance - - 12.9 12.9and Pre-investmentStudies (11.7) (11.7)

Total 21.3 4.3 15.7 41.3(19.4) (3.6) (13.7) (36.7)

La Figures in parentheses are the respective amounts financed by the Barn_Loan.

The exceptions to ICB procurement would be as follows;

(a) Refurbishment of existing buildings (including furniture), totallingabout US$0.6 million, would be carried out by local contracts and byforce account. These items would be financed by the Government;

(b) Contracts for equipment estimated to cost less than US$50,000equivalent each, which in the aggregate would not exceed US$4.0million and which would not be expected to interest foreign suppliersbecause of the variety of the contents of each contract, would beawarded on the basis of competitive bidding advertised locally inaccordance with local procedures to be acceptable to the Bank;

(c) Sundry items not exceeding US$25,000 in each contract and aggregatinga maximum of US$2.0 million equivalent would be purchased on thebasis of a minimum of three quotations, in accordance with localprocedures to be acceptable to the Bank; and

(d) Books and training materials (such as films, slides and charts) notto exceed in aggregate US$450,000 would be purchased in accordancewith local procedures to be acceptable to the Bank.

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3.17 In respect of equipment, bid packaging would also be reviewed by theBank prior to bid invitation. In comparison of bids for equipment to beprocured through international competitive bidding (ICB), domesticmanufacturers would be allowed a preferential margin of 15%, or the existingcustoms duty, whichever is lower, over the c.i.f. prices of competingimports. Under ICB procedures, invitations to bid and proposed awards ofcontracts would be reviewed by the Bank prior to final award decisions. It isestimated that this review would cover about 77% of the value of all equipmentcontracts (US$21.3 million equivalent). The remaining 23% of equipmentcontracts would be subject to selective post-award reviews.

3.18 Technical Assistance. To simplify management of technicalassistance, the three implementing agencies would obtain specialist servicesand fellowships as comprehensive TA contracts. At least three firms wouldparticipate in each bidding on the YbK and SEGEM components, following ashort-listing of consulting agencies acceptable to the Bank (Annex 3). TheGovernment and YdK gave assurances at negotiations that they would employconsultants whose qualifications, experience and terms and conditions ofemployment would be satisfactory to the Bank. These consultants would beselected in accordance with principles and procedures satisfactory to the Bankon the basis of the "Guidelines for the Use of Consultants by World BankBorrowers and by the World Bank and Executing Agency."

3.19 Implementation Schedule. The project would be completed in aboutfive and a half years (1984-90) in accordance with the Implementation Schedulein Annex 9, Schedule 1. The project is in a state of preparation that wouldpermit quick disbursement of funds because; (a) construction of buildings (asource of delay in the past) would be limited to minor refurbishment ofexisting buildings and would not be financed by the Bank; (b) equipment listsand specifications have been drawn up with external assistance and submittedfor Bank review; and (c) the technical assistance package has been welldefined, draft terms of reference are prepared, and proposals are expected byLoan Signing (May 1984). Project completion would be December 31, 1989 andthe Closing Date would be June 30, 1990.

3.20 Disbursements. The proposed project would be disbursed over a periodof six years (Annex 9, Schedule 2). Disbursements would be made against;

(a) 100% of the foreign exchange cost of directly imported equipment andeducational materials;

(b) 100% of the ex-factory price of locally manufactured items (excludingfurniture);

(c) 65% of the cost of locally procured items of equipment; and

(d) 100% of the foreign cost of foreign consultant services and overseasfellowships or 80% of the total cost of locally hired consultants.

Disbursements are expected to be completed by June 30, 1990.

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3.21 Accounts and Audit. YoK, SEGEM and SIS would each maintain separateaccounts for the project. Staff of the three agencies involved would prepare,at the end of each quarter, a detailed statement of project expendituresduring the period (in an agreed format) and submit such statements to the Bankwithin 45 days after the end of each quarter. Such statements would, interalia, be used as a basis for supervising the progress of procurement. Anannual audit would be carried out by the Auditor General's Office andsubmitted to the Bank within six months of the end of each fiscal year.Financial reporting and auditing would be in accordance with the World Bank1981 Guidelines Report. Assurances to this effect were obtained during

negotiations.

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IV. BENEFITS AND RISKS

Benefits

4.01 Under the proposed project, the potential of Turkey's industrial

sector, particularly manufacturing and exporting industries, would be enhancedthrough the extension and improvement of the national capacity to provideindustrial training. Institutional development would occur in two keyindustrial training agencies, YoK and SEGEM. Industrial productivity would be

improved through the improvement and expansion of pre-service and in-servicetechnician training programs and of industrial training programs atmanagement, technician and supervisory levels provided by SEGEM and Y-K. Theprovision of increased and improved economic and social data would assist themanagement of the economy.

4.02 The eight TTCs for which financing is proposed in this project arepilot centers which would produce about 940 graduates in 1989, building tosome 1,230 graduates annually from 1992, which would represent about 10% ofannual demand at that time. Additional TTCs planned by the Government wouldbuild on the foundation provided by the pilot eight and would supply anestimated further 20% of demand. The impact of residual scarcities oftechnicians will be minimized through the development of SEGEM's activitieswhich will assist with a more efficient utilization of resources in industry.

4.03 The project would facilitate the improvement of technician trainingthrough the development of suitable curricula and training materials, andthrough the establishment of an in-service staff development program as wellas further strengthening the management of the new TTCs within YoK. Throughthe project, some 164 fellows would be trained to instructor or technicianinstructor level, and these would provide both a sufficient number of stafffor the TTCs and also a core group upon whom to build in subsequent phases ofdevelopment of the TTCs.

4.04 Using the higher salaries of graduates of project institutions as aproxy measure for enhanced industrial productivity, the benefit/cost ratio toresources applied to the development of the eight pilot TTCs under theproposed project is approximately two and one-half times as high as onresources devoted to existing training programs. Unquantifiable, thoughsignificant, are the additional benefits likely to accrue to the Government byway of increased output and foreign exchange earnings as a result of theenhanced productivity of labor in the industrial and exporting sectorsfollowing the provision of, and in-plant in-service upgrading of,technician-level manpower through the proposed program of Y-K and SEGEM.

4.05 Through the project the groundwork for the development of a nationalindustrial training system would be laid which will assist the long termdevelopment of industrial training. SEGEM's role as an industrial trainingagency will be enhanced both quantitatively and qualitatively. Through theprovision of an industrial training consultancy facility, SEGEM would haveconsiderable flexibility in meeting the immediate needs of industry forspecialist training advice. In addition, the proposed project would provide asound basis for further development of technician and in-service training toindustry under a possible second phase of the development of YoK and SEGEM.

- 27 -

4.06 Under the project, the principle of cost sharing for industrialtraining programs would be introduced for the first time. This would lead toa diminution of the burden of recurrent expenditures deriving from SEGEM'straining programs. The introduction oF the principle of cost sharing providesthe opportunity to raise the proportion of the total cost of sharedexpenditures -a the eventual point of full cost recovery.

Risks

4.07 The proposed project would involve three agencies new to the Bankincluding one, YdK, which is newly created (Annex 3). As a result of theunfamiliarity of the agencies involved in the proposed project with Bankprocedures, there is a risk that project implementation would not be timely.Early supervision missions would ensure that Bank procedures are fullyunderstood, and that special short-term training programs have been arrangedfor project implementation staff. A greater than normal supervision effort isanticipated in the first 18 months of the proposed project and considerableattention would be given to the timing and composition of these missions.

4.08 In all three agencies, an important objective of the proposed projectis institution building. To assist the Government achieve this objective, asubstantial technical assistance program has been included in the project.There is a risk that the technical assistance would not be implemented asplanned, and thereby attainment of project objectives delayed. In order tominimize this risk, the technical assistance packages have been designed tominimize the administrative burden on implementing agencies by ensuring that,as far as possible, the consultant firms/institutions would assumeresponsibility for the burden of their detailed administration. Moreover, themanagement systems of the line agencies were reviewed by the mission and,where necessary, appropriate institutional steps have been taken to assist inthe smooth implementation of the project.

4.09 The proposed technician training program and the proposed in-servicestaff development program at Izmir would require the recruitment of some 164

staff. There is a risk that it would not be possible to recruit an adequatenumber of instructors for training. To reduce this risk, the Government ispaying attractive salaries to TTC staff at university rates. There are aconsiderable number of university science and engineering graduates availablefor recruitment and there are good career prospects for staff with YUK in anew and expanding branch of training.

4.10 Each TTC is attached, for administrative purposes, to a universityand there is a risk perhaps that the development of practical job-orientedprograms would be compromised by this arrangement in favor of the academic.Though real, this risk is diminished by the strong conmitment of themanagement of YoK to the proposed technician level programs. Moreover,

courses and curricula are determined by YoK, instructors have a differentacademic background from university staff, students in the TTCs are orientedto employment within local industry and are academically quite different fromuniversity undergraduates, and the TTCs are limited by law to a two-yeartraining program.

- 28 -

V. AGREEMENTS REACHED AND RECOMMENDATIONS

5.01 During negotiations the Government provided assurances that;

(a) SEGEM would continue during at least the life of the project withpowers and responsibilities sufficient to enable it to carry out theproject satisfactory to the Bank (para. 2.15);

(b) SEGEM would initiate a cost recovery system acceptable to the Bank sothat the percentage of direct costs of SEGEM's programs recovered bySEGEM would; (a) by December 31, 1986 be not less than 20%; and(b) for each year thereafter be increased by a reasonable percentagein consultation with the Bank (para. 2.22);

(c) SEGEM's existing monitoring and evaluation structure would bemaintained (para 2.23);

(d) SEGEM and SIS would carry out their fellowship training in accordancewith terms of reference including a timetable and program acceptableto the Bank (paras. 2.14 and 2.24);

(e) SEGEM and SIS would employ consultants whose qualifications,experience and terms and conditions of employment would besatisfactory to the Bank, such consultants to be selected inaccordance with principles and procedures satisfactory to the Bank onthe basis of the "Guidelines for the Use of Consultants by World BankBorrowers and by the World Bank and Executing Agency" (para. 3.18);and

(f) SEGEM and SIS would undertake an annual audit to be carried out bythe Auditor General's Office in accordance with the World Bank 1981Guidelines Report and submit the same to the Bank within six monthsof the end of each year (para. 3.21).

5.02 During negotiations, YoK provided assurances that;

(a) an Advisory Board would be appointed to each TTC with representationand terms of reference acceptable to the Bank (para. 2.09);

(b) at the eight locations at which technician training is proposed;(i) appropriately refurbished buildings would be provided prior tothe scheduled arrival of equipment, and (ii) that the net floor areaof classrooms, workshops and laboratories available to projectassisted programs would equal or exceed 5.0 m2 per project assistedtraining place (para. 3.04);

(c) terms of reference, including a timetable and a program, for thefellowship program would be acceptable to the Bank (para. 2.10);

2 29 9

(d) YoK would employ consultants whose qualifications, experience andterms and conditions of employment would be satisfactory to the Bank,such consultants to be selected in accordance with principles andprocedures satisfactory to the Bank on the basis of the "Guidelinesfor the Use of Consultants by World Bank Borrowers and by the WorldBank and Executing Agency" (para. 3.18);

(e) It would, not later than September 30, 1984, fully staff itsmanagement unit for the TTCs with suitably qualified personnel (para.3.11); and

(f) YoK would undertake an annual audit to be carried out by the AuditorGeneral's Office in accordance with the World Bank 1981 GuidelinesReport and submit the same to the Bank within six months of the endof each year (para. 3.21).

5.03 Subject to the above conditions, the project would provide a suitablebasis for a Bank loan of US$36.8 million equivalent to Turkey for a term of 17years, including a grace period of four years.

-31- Annex 1

REPUBLIC OF TUhKEY

STAFF APERAISAL REPORT

INDUSTRIAL TRAININC EROJECT

Hlge Rates in the Turkish Manufacturing Industry

1. Systematic and comparative wage rate data are generally not availablein Turkey. Wages are recorded in the Qiarterly Manufacturing IndustryEstablis1-met Survey, (State Institute of Statistics) on a quarterly basis atfour-digit International Standard Industrial Classification specificity forthe manufacturing sector, but only in aggregate for all occupational levels.The official and largest union, TUrk-Is Arastirima lzmani (TISK), maintainsrecords of wage agreenits reached in subsectors of the manufacturing sectorby broad level of occupations. The appraisal mission obtained wage rate dataof this kind from TISK for the wood, railway, textile, sugar, ship repairing,tobacco and energy sectors and these data are summarized in Annex 1, Table 1.The limitation of these data is that they describe wage agreenats only inlarger establishments in the public sector, though wage agreements reachedthrough the offices of TISK are often used as guidelines and as a point ofreference for other euployers also. Wage data obtained fron TISK showedconsiderable variance between sectors, reflecting the different conditions ineach industry.

2. Private sector wage rate information for 1982 was obtained fromChanbers of Commerce and Industry in Ankara, Istanbul and Izmir as well asfron major employers and are also summarized in Annex 1, Table 1. Dataobtained from this source showed little variance between sectors and evenbetween regions of Thrkey. It is clear that the private sector is a morecompetitive employer compared with the public sector in that the formerappears to pay better rates, except at the unskilled worker level. Mbreover,the private sector appears to reward higher skill levels more highly; atechnician in the "public" sector is paid 1.15 tines the pay of a semi-skilledworker, While, in the private sector, the differential is 1.82 times.

3. The eight TTCs for which support is proposed in this project would betraining graduates at the technician level. The location of the eight TTCs,the type of training given, and the institutional links proposed in theproject are designed to assist the TTCs to neet the denad for technicians inmanufacturing and exporting industries. Thus, it is anticipated thatgraduates in the eight TTCs supported under this project will seek and obtainemployment in private manufacturing industry and will, therefore, havesalaries at the level indicated in Anex 1, Table 1 for technicians in theprivate sector.

Anex 1-32 Table 1

REUELIC CF TURKEY

INDUSMRIAL TRAINING PROJECT

SIAFF APPRAISAL REPORT

Daily Wage Rates in the Manwfacturing Sector (1982)

(in TL)

Skill Level Public Sector* Private Sector**

Ergineer 1,912 3,750

Technician 1,650 2,750

Forenmn/Supervisor/Skilled Worker 1,530 2,020

Semi-Skilled.Worker 1,440 1,510

Unskilled Worker 1,060 995

Note: *Covers maaifacturirg sector in which wage agreenents have beenreached by TISK.

**rovers agreenents reached anorgst nembers of the Chanbers of Camierceand Industry.

Source: Public sector: Conpiled frcm data provided by TISK.Private sector: Chanbers of Commerce and Industry.

-33- Arnex 2Page 1 of 2

REPUBLIC CF TURIKY

IND)USAL TRAi PROJECT

STAF APPPAISAL REPOlR

manpower Projections, 1985-95

1. In order to ascertain the magnitude of the training requirement formanpower of different skill levels, particularly that of technicians, a formalprojection of manpower demand and supply was undertaken for the period1985-95. The 1980 Census was available for 82 occupations and 9 economicsectors. This permitted the compilation of a sector occupation matrixconprising 9 sectors and 10 groups of occupations with similar education andtraining backgrounds. The ten occupational groups used are defined in Table1, Annex 2. Bank estimates of output and productivity growth for 1980-85 and1985-95 were applied to estimates of employnment by sector in 1980 to obtainenployment derand by sector in 1985 and 1995. In order to translate thegrowth in demnmd for labor by economnic sector into a growth in demand forparticular occupational groups, sectoral denad in 1985 was distributedbetween occupational groups in accordance with the 1980 sector occupationmatrix. The sector occupation matrix for 1995 was estimated by adjusting the1980 sector occupation matrix proportions, particularly in the B-1 "TechnicianOccupations" category, to proportions nornally associated with estimatedlevels of productivity in 1995, using standard indices. The estimated 1995sector occupation matrix was applied to the 1995 totals of sectoral labordemnd to obtain the distribution of demand within each sector by occupationallevel. Fran a canparison of the derand for labor in 1985 and 1995 by sectorand occupational group, the demAnd for labor due- to economic growth wasestimnated. To these totals was added the demand for labor deriving fran deathand retirement of the labor force. Attrition rates were generally 2% peryear. The projection was made with 1985 as the base year, and 1995 as thefinal year. Annex 2, Table 1, shows estimated manpower requiremants due toeconanic growth and attrition by occupational category for 1985-95.

Supply Projections

2. Data for supply projections were obtained frcn information providedby the State Institute of Statistics and the Ministry of Education onenrollment and graduates for nonformal education, secondary vocational andtechnical education and higher education.

3. Professional Scientists and Engineers. The number of science/ergineering graduates for 1985/86 was calculated fron the ratio of science/ergineering enrollments to total enrollments ir. 1981/82. This probably over-estirates the unubers of science/engineering graduates as sane programa arelonger than four years in duration and no allowance is made for dropouts.Governwent policy is to increase science/engineering enrollrents. Taking theforegoing into account, an approximate 5% increase in graduates is asstuned foreach year after 1986, and these data are sumnarized in Anex 2, Table 2.

-34- Annex 2Page 2 of 2

4. Technician Training. Pre-service industrial technician training isvirtually no-existent. There are no post-secondary technician traininginstitutes at present, and technicians working in industry at present areeither university science/engineering graduates who have accepted employmentas technicians, or are HE technical school graduates who have subsequentlyacquired their skills orr-the-job. In order to rectify this situation, theGoverrmaent is proposing, through YoK, to convert, in the first instance, eightof 53 existing post-secondary vocational institutes to Technician TrainingCenters (TTCs). The proposed project would assist the Government with theirdevelopxnent. The Goverrment is anticipating the development of a further 16subsequent to the initial eight, and the detail of the proposed expansion,imncluding the output of the present project, is shown in Annex 6, Table 2, andsummarized here in Annex 2, Table 2.

5. Semi-Skilled and Skilled Manual Workers. Data on 1980/81 graduatesfrom the HE secondary vocational and technical schools and fron the networkof practical trade schools, adult training centers and night schools were usedto calculate supply. Since graduate nmbers actually declined slightly overthe 1976/77-1980/81 period, and goverwrent actions to increase enrollment areunclear, no expansion of graduates was assumed over the period and output overthe period 1985-95 was assumed to be ten tires the 1980 nuiber, e.g.,1,460,000. This figure must be adjusted downward to take into account thosetechnical school graduates (about 30,000) who will continue on to techniciantraining. Therefore, the total output available between 1985-95 is about1,430,000. In the absence of data concerning orr-the-job training, no attempthas been made to calculate additional supply from industry-based trainingprograns (at present limited to major private-sector employers and publicenterprises) which will provide an additional supply of semi-skilled andskilled workers. Hwever, the ME vocational secondary schools and thenonformal education system provide training for many nonskilled andsemi-skilled manual occupations such as clerical work, service industries,health, etc. Therefore, the supply projections reasonably estimate theadditional supply actually available to industry.

Mancer Projection Ranary

6. Anex 2, Table 2 sumnarizes the manpawer projection for engineers,technicians and skilled and semi-skilled occupations. Anex 2, Table 2 showsthat over the projection period additional manpwer demand exceeds additionalnanpower supply for ergineers, technicians, and skilled and semi-skilledworkers. In relative terms, the projected relative shortage of technicians isthe most sigaificant, representing 48% of total demand. The projections implythat attainnent of target growth rates in the industrial sector will beconprcnised unless alternative neans of training mnpcwer in these categoriescan be found or unless a more efficient use of existing marnpaer is made. Theproposed project would assist with the provision of technicians through thedevelopnent of eight TTCs which will provide sane 8,000 graduates over theperiod 1985-95 and would assist with improved utilization of existingresources in industry through the developnent of SEfB7M's programs.

Doc. ID No. 1613V

-35- Anmex 2Table 1

REPU1LC OF TURKEYINWUSTIAL TRAINING PROJECr

SAEFF APPRAISAL REPORT

Labor Denand by Occupational Category (1985-95)

Occupa- Labor Denrnd due to Labor Denrrd due Total Labortional Ecornic Growth, to Attrition, Denand,Category 1985-95 1985-95 1985-95

A-1 142,600 32,500 175,100

A-2 90,400 45,200 135,600

B-1 98,100 19,000 117,100

B-2 287,100 177,200 464,300

C-1 276,500 175,400 451,900

C-2 881,100 238,600 1,119,700

D-1 80,300 52,200 132,500

D-2 723,200 604,700 1,327,900

E 650,200 3,147,800 3,798,000

F 287,500 308,700 596,200

TUIAL 3,517,000 4,801,300 8,318_300

NDTE. Occupational Categories pertainirg to the proposed project are indicatedin Armx 2, Table 2.

A-1: Professional Occupations Usually Requiring a Scierce/Math-BasedUniversity Degree.

A-2; Professional Occupations Usually Requiring an Arts-Based Degree.B-1: Technician Occupations Usually Requiring Post-Secondary

Science/Math-Based Education and Training.B-2: Technician Occupations Usually Requiring Post-Secondary Non-Math-Based

Education and Trainirg.C-1i Skilled Office Occupations Usually Requirirg Secondary School Campletion

Plus Job Training.C-2: Skilled Manual Occupations Usually Requirirg Secondary School Ccmpletion

and Job-Related Instruction and Training.D-1. Semi-Skilled Office Occupations Usually Requirirg Intermediate School

Conpletion Plus Job Trainirg.D-2: Semi-Skilled Manual Occupations Usually Requiring Internediate School

Coxrpletion Plus Prevocational Instruction.E: Sem:i-Skilled Occupations Usually Requiring Literacy.F: Unskilled Occupations Requiring No Special Education or Training.

Doc. ID No. 1613V

REPUELIC CF TURKEY

INDUSMRAL TRAINIG PROJECr

SrAFF APPRAISAL REPORT

Mnpower Projection Summary Table, 1985-95

Additional Denmaxd Additional Supply Deficit (-) or

Due to Ecornmis from Eduration Balarce Total Surplus (+) as

Occupational Euployment Growth and Attri- and Training Shortage (-) Demand % of Total De-

Category in 1985 tion of Labor Force Institutions or Surplus (+) in 1995 maind for Labor

Engineers (A-1) 177,800 175,100 120,000 -55,100 320,400 -1 7%

Technicians

(B-1) 103,600 117,100 20,000 -97,100 201,700 -48%

(of wbichproposed project) (8,000)

Skilled and

Semi-SkilledWorkers(C-2 and D-2) 3,211,000 2,447,600 1,430,000 -1,017,600 4,816,100 -21

Doc. No. 1613V

IHI(-DX

-37- Anrn 3Page 1 of 6

REPUBIC CF TUKEY

DUSTRIAL IRAIN POJECT

STAFF APPRAISAL lREPOR

Organization, Mmiagement and Inplemntation Capability(Ircluding Tedinical Assistanre Program)

Y-, SEsE and SIS

Introduction

1. The two main imlplanlenting agencies in the proposed project, YdiK andSGEM, are relatively new to the field of industrial training. In addition,

Y&bK, SEGEM and SIS are also new to Bank lending. The mission thereforecarried out an in-depth analysis of the organization, management andimplanentation capability of YoK, SBG1 and SIS. Also, because institutionbuilding is a key objective of the proposed project, tie mission providedassistance to and reached agreenent with all three agencies on terms ofreference, as wll as the mxdalities of selection of consultants and themanagenent and implementation of the TA.

The Council for Higher Education (YWK)

2. YdK is a semi-autonanous Government agency, in effect amini-ministry, which was established by a law passed by Parliament in 1981 andentered into the constitution. Its functions are to plan, organize,administer and supervise education provided by institutions of highereducation including the 25 universities, the specialist academies, and the 53two-year post-secondary tedhnician and other training institutions. YiK'sresponsibilities include the training of teaching staff and the appointment ofthe senior staff and umnagement of the universities and institutes. ThePresident and sane eight members of the 25-member governing council of YbK areappointed directly by the President of the Republic of Turkey and the YoKPresident reports to him. Other members of the council are appointed by theCabinet, Ministry of Education, and the Inter-University Council. The chiefadninistrative officer of YoK is the Secretary General, who administers YoiKthrough a number of Assistant Secretaries General who in turn administerDirectorates, which include Education and Training, Planning, Research,Budgets and Investments, Library and Documentation, Data Processing,Coordination, Administration, and Construction (Annex 10, Chart 1). A StudentSelection and Placement Unit is responsible for the country-wide selection andplacenent of the nation's approximately 241,000 students in higher educationand also mmnitors University exaninations. A Tedcnician Training Unit isresponsible for the development of technician training. Both thesedirectorates report directly to the President of YoK.

3. Government funds for higher education amounted to TL 97 billion in1982, 19% of total educational expenditure. YdK administers this budget, andprovides a budget for each institution under its control and ensures properuse of financial resources. YaK now has a professional and aiministrativestaff of about 150, which are mainly housed in new accamodation in Ankara.

-38- Annex 3Page 2 of 6

4. The Lechnician Training Unit was established fonmally in 1983 and isresponsible for the developnent of technician training, including thetransformation of eight existing post-secondary vocational traininginstitutions into Technician Training Centers for uhich project assistance isincluded in the proposed project. YdK is planning to transform 16 otherexisting post-secondary vocational training institutions into TechnicianTraining Centers subsequent to the initial eight, for whkich the IbchnicianTraining Unit is also responsible.

5 Within the Technician Training Unit is the Project ImplenentationUnit (PIU) for the proposed project. At appraisal, the organization andmanagem-nt systEn of the Technician Training Unit, the camposition of the PIU,and institutional links with the universities and industry were reviewed andare acceptable to the Bank. Annex 10, aart 2 shows the present organizationand rrageurrnt systaen for the administration of the Technician TrainingCc3uxeri . lair Director General anld Director of the PIU, ProcurementSh2c:iAliŽW Project Ancomutant, and the Finance and AMninistration Officer

1. onr. ointed. By Septerber 1984 (about three 7rnths after Credit: ,:_ tI-\¢ s) a t acilities plarner (to plan the upgrading, renewal and

' '--:i, i. ia '- TLC facilities), a teacher recruitment and placement officer;'y . iniversity relatios officer will be appointed. Thesesi- bafi will be based in Ankara. There will also be a curriculunY ,e- developir;nt unit established at the Izmir TrC and an

i lder an a subsidiary curriculun developnent uniti-2 Iscanbu'. TIC by Septentber 30, 1984.

6) .lo _is'r YSC and its Technician Training Unit further strengthen the;Lue, t-ie project wu,ld finance 69 man-nnths of expert

ia tecnical education planner (two and one-halfian equipr;-ent procurement/facilities planner (one man-year) and an

L.ui;.:ron and accreditation expert (one man-year) as well as short-termsasistance to cover unitoring, evaluation and education managenit aspects

!L nra.-mraLu-hs) (AnnLex 5). The project would also finance 34 mannxxiths ofshurL-,-4icsr, vcr seas feliloships for 18 YoK managerial staff and senior,-<rgurcnt of project institutions.

All the existing post-secondary vocational training institutions areLa' .. iZ , for administrative purposes, to a parent university in the vicinity

and d)e eight proposed project TCs would remain under their administrativecooi:ral The Director General of the Technician Training Unit/PIIJ Directorb;s 1<>cc:- ,ess to university rectors on all matters affecting theevXeiopranL of Lae ITCs and will, in consultation with the rectors and the

Pr&sident of Y,rZK, advise on the appointment of TTC principals and other seniorstaff. A. critical factor affecting the developnait of technician trainingundo; 'rz asnd the proposed project is the degree to which the Director canestablish effective relationships with the staff in the universities concernedwijt the a(Thinistration of the TICs. The high calibre of the present

-rmpirig Unit/PIU staff is likely to assist this process.

8 Ihe responsibility for curriculum and staff development, and the1lbdet of each TIC is with YoK, which ensures budget autonDmy fron parento zers!tieas and independerce in progran development. The adninistrative linkWi tri the universities has the advantage that there is a strong local

-39- Annex 3Page 3 of 6

administrative support for each TTC. However, it carries the risk that thedistinction between university studies and the industrial techrician trainingprograms proposed by the project nay be made less clear. This issue isappreciated at the highest levels in YoK and every effort is being made toderive the muximn benefit frm the administrative liaison with theuniversities.

9. Wnile YoK is a relatively young organization, it is a dynanic one, inwhich there is considerable enthusiasm for the developnient of techniciantraining. The staff associated with the proposed project are well qualifiedand have experience of the developnmt of new educational programs.

Technical Assistance

10. Terms of Reference for the proposed technical assistance were agreedduring negotiations and a letter of invitation would be sent to threeshortlisted international consultancy firms approved by the Bank. It isanticipated that the tedinical assistance (sumarized in Annex 5) would beimplemented by either a single firnminstitution or by a consortium of finrsspecialized in particular aspects of the proposed program, who euold have theresponsibility of implenenting the TA package including the provision ofexperts and arrangemnat of overseas training fellawships. The selectedfirm(s) would have extensive international experience in the development ofpre-service industrial tednician training and in the manaagement of linkarrangeTents between technician institutions. The finm would be expected toprovide both expert services and counterpart fellowship training and wouldneed to deaunstrate its ability to provide extensive services: (a) for thenmagenEt and welfare of experts in the field; and (b) for the placenent,guidance and counselling of students in foreign countries. It is anticipatedthat the firm would also assist establish long-term institutional linksbetween YoK and one or more qualified and suitably experienced technicianeducation institutions in the firm's own country. It is anticipated that theforeigi link institutions would provide a large part of the expert servicesfran their cwn staff, and would also actively participate in the desigi of thecounterpart fellowship training progran. This would have the advantage thatthe expert services would be provided by an institution or institutions with along-term ccmmitment to the project and to developing an institutionalexpertise concerning industrial training in Turkey. Severalfirms/institutions capable of providing this type of service are qualifiedwith the Bank. In sumnary, the firm would be expected to provide thefollowing administrative services to YoK, through the P1U Director.

- Identification of suitable link institution(s) in firm's own country.

- Nanagement of link arrangements.

- Recruitnmt of experts.

- Management of experts in Turkey including provision of housing,transport, welfare, airfares to and frmn Turkey, etc.

- Arrangeent of overseas fellowship training including placement,welfare and counselling of students.

- Regular provision of progress reports.

-40- Annex 3Page 4 of 6

The firm will be selected accorTding to Bank guidelines and proposals will, inthe first instance, be evaluated on technical merits only. The Bank willTmoitor closely the selectioa procedtre.

The Industrial Training and Developmnt Center (SEG)

11. SGBEM is a semi-autncmaais industrial training agency, which wasestablished in 1978. It is m-naged bv a Board Which incl-udes representativesfron the SPO, i{DE, employers federations, universities, industrial researchinstitutes, and SEEs. The Board is chaired by the TUnder Secretary of the MlT,which acts as the parent ministry for budgetary purposes. Theresponsibilities of SEGEM are to provide in-service training to the public andprivate sectors of industry, in nminagement, technical subjects and production,mainly at the professional level, though this is ncow being extended to includethe supervisory and technician level. Day-to-day operations are controlled bya Director General, who is assisted by two Assistant Directors General, onefor technical affairs and one for administration. The technical affairsdirectorate includes the tedhnical oLficers which covers nmst branches ofergineering, as well as industrial relations, plani2ng and control andtraining (Annex 10, Qiart 3). Ihese are the officers wio administer andprovide the technical work of SEEA.

12. Each year, SEGEB provides trairing courses, brief consultancy visitsto industry, seninars ard rmeetings. TGCN has gromn rapidly in recent yearsto the point where in 1982 SEGEKq ran 100 training programs on twa-tothree-week courses for soma 2,500 particip2ats drawn from some 1,270 publicand private enterprises. SEGEM administers an English language trainingcenter which taught some 260 students in 1982 on three to six ronth part-timecourses, and published sane 100 books, seminar notes and reports in 1982 ondifferent technical subjects. Tn 1932, SEGTE employed scme 85 staff of whn45 were professional staff. In recent years, SEGEH's budget has grownconmensurately withi its increased act ivities, to the point where in 1982, itsbudget was TL 225 million (para. 1.20).

13. SEGEM has developed rapidly sin2e 1980. Its growth has been inresponse to requests fran industry for particular training prograns,consultancies and seminars aind h.rLas thus maintained relevance and vitality inprogran design. It has good relations with industry, Chanbers of Industry andnajor employers. It also has the strong support of its parent Ministry: theEIT. SEGEIM has received technical assistance fran UNIDO since 1978, and thishas enabled SEM to develop sound tedcnical resources anid administrativeprocedures. UNID)0's technical assistar.ce program was analler in size than inthe proposed project, but comparable in design. Under the UNMO progran, theP3J in SEGM administered scnre 40 short-term experts of two to Four moths'

duration and one lorger term expert, as well as a fellowship program involving19 fellows, primarily in the past tT-o years. The present management of SBXEMis experienrced in the administratian of tecnical assistance and wuld be ableto utilize the proposed. program Lo good effect.

14. In atteerpting to mset the demand for training prograns fran industry,SEGEM's program has diversified in recent years. A recent UNIDO evaluationreport emphasized the need to ratirnalize the training progranm on the basisof clearly defined priority irdustrial training needs and staff strengths, and

-41- Annex 3Page 5 of 6

a najor emphasis of the proposed project will be to assist SEG(M in an orderlyexpansion of its programs, with an appropriate evolution of internal staff andorganizational developnent. Priority areas for program expansion alreadyidentified include training of industrial trainers, quality control,nnufacturing systems and nenagennt.

15. A najoi constraint to the long-run developnent of SEGEM is itscramped acconTodation in Ankara. This issue has been recogiized by the Boardof SEGEM, and a number of alternative accmmodations are being examined. As aresult of its close links with industry, SEGEM has been offered severalpossible alternative premises. However, thus far, it has not been possible tolocate premises which fully neet SE&EM's needs. For the purpose ofimplementing the proposed project, SE(EM would continue its extension approachto training, using its existing facilities, in-plant or hired facilities ateach training location. Throu4h its cooperation with UNIDO, SEGEM has inplace an experienced PID consisting of a project coordinator and anassistant. The PIU reports to the Director General (Annex 10, Chart 3).

Technical Assistance

16. Terms of reference for the TA have been prepared and agreed duringnegotiations. A letter of invitation wuld be sent to three shortlistedinternational consulting firms approved by the Bank. Firms will be selertedaccording to Bank guidelines, with proposals evaluated in the first instanceon technical n-erits only. The Bank will nonitor closely the selectionprocedure. The TA has been divided into two packages. The first packagecomprises expert services and counterpart training for program developnent andinstitution building in SEGEM, including the provision of industrial trainingconsultancy to industry. The second package oonprises expert services andcounterpart training to assist SGE1a to undertake, in cooperation with MIT,SFO, the SEEs and private industry, a canprehensive survey to prepare detailedplans to be presented to the Governnent for the or-ganization, developnent andfinancing of a country-wide industrial training system. These two packagesmy be provided by a single finn, by separate firms for each package, or by aconsortium bidding simultaneously for both packages.

17. The selected firn or firms will have extensive internationalexperience in industrial training and manpower planning. Tke firms will beexpected to provide both expert services and counterpart fellowship trainingand will need to demonstrate ability to provide extensive services; (a) forthe nmnagenent and welfare of experts in the field; and (b) for the placenent,guidance and counselling of trainees in foreiga countries. Several firmscapable of providing these services exist. The firm would be expected toprovide the follcwing adninistrative services to SEGEI;

- Pecruitnent of experts.

- Management of experts in Turkey including provision of housing,transport, welfare, airfares to and frcm Turkey, etc.

-42- Annex 3Page 6 of 6

ArrangenmBt of overseas fellcship training including placemrent,welfare and couaselling of trainees.

- Regular provision of progress reports.

The State Institute of Statistics (SIS)

18. SIS was established in 1962 to collect and ccnpile statistics forGovermnent in such areas as population and health, education, agriculture,nanufacturirg, national accounts, foreigi trade, prices, ccunerce, npcwer,employment and Tages, transport and finance. The SIS maintains basicstatistical standards in Tlrkey and coordinates the statistical work ofGoverrment agencies. The SIS publishes numerous statistical reports includinga statistical yearbock, establishment and haisehold surveys. An importantfunction of SIS is to conduct regular population, agricultural and businesscensuses. Population censuses are conducted every five years. The SB, whichis part of the Prim Milnister's Office, is headed by a President, assisted bytwo Vice-Presidents with sane 300 professional staff. It is organized intofour technical directorates - EcoKnic and Social Research, Ecornoic andSocial Analysis, Econanic Statistics and Social Statistics (Annex 10,Chart 4). A Data Processing Center provides computational facilities.Computational equipment is reasonably up to date and well used.

Thchnical Assistance

19. Because funding constraints have limited overseas professionalcontacts and opportunities for professional upgrading, the staff at SIS,although conpetent, have found it difficult to keep themelves abreast ofadvances in statistical rethodology and computational techniques, essentialfor the maintenance of a high quality statistical service for Goverrment andindustry. The fellowship program therefore has been designed to providerelevant professional skills upgrading for key SIS staff. Trainees will beselected from auongst the ranks of SIS professional staff on the basis oftheir technical ccmpetence, position within SIS and ability to act as stafftrainers in SIS on completion of their fellowships. It is anticipated thatthe majority of the trainees would undergo training in a single competentoverseas statistical agency experienced in providing this type of in-serviceprofessional upgrading.

20. The proposed fellowship traiinmg program will be implemented by theDirectorate of Economic and Social Analysis in collaboration with the DataProcessing Center. Terms of reference for a qualified agency to implement theoverseas fellowship training program described in Annex 5 have been preparedand were agreed at negotiations. The agency would provide a full service of

lacemant, trainee counselling and welfare and provide regular monitoring andprogress reports on trainees. The agency would be selected in accordance withBark guidelines, and in view of the specialized nature of the training to beprovided, SIS may select a single agency without recourse to competitive-iddirg. A letter of invitation to the selected agency or agencies will be

sent by iMarch 31, 1984. Candidate agencies for the adninistration of thefellowship program have been identified by SIS.

-43- Annex 4Page 1 of 3

REPUBLIC OF IURKEY

INDUSTETAL TRAININ PROJECT

STAFF APPRAISAL REPORT

Evaluation of Benefit/Cost Ratio for Proposed Development of

Eight Technician Training Centers

1. In the proposed project, industrial technician training will beestablished at eight existing post-secondary vocational training centers. Theinvestment costs of the proposed program include. refurbishing existingbuildings; eipment for workshops; furniture; technical assistance for expertservices for curriculum development and the development of a management systemin YcK, and fellowships for instructor training; higher salaries to morehighly trained instructors than those presently employed; maintenance ofbuildings and teaching and expendable materials. The direct benefits of theproject are the higher salaries which future graduates will earn astechnicians camnped with those of existing graduates.

2. This evaluation focusses on the part of the proposed project whichc-nprises assistance with the developnent of the technician training at eightproposed centers and estirmtes the benefit/cost ratio to the Governmentbetween continuing to utilize existing resources (buildings, labor,classrooms, teachers) for their present purpose compared with the benefit tothe investment in technician training proposed in this project. Table 1sumnmarizes the detailed calculations. Cost data are taken from appraisalestimates of project costs. Wage data are based on recent information on wagepatterns available to the mission and shown in Annex 1, Table 1.

3. The evaluation indicates that by undertaking the investment proposedin this project, the Government will enjoy a return to its resources of abouttwo and one-half times the level it presently enjoys. This supports theGovernnent's view that the proposed project is a priority for resources.

4. Assunptions and Technical Notes

Discount Rate: A discount rate of 12% was used, based onMEshayekhi, A., Shadow Prices for Project Appraisal in Turkey. World BankStaff Working Paper No. 392 (May 1980).

-44 Annex 4Page 2 of 3

5. Duration of Evaluation. It was assuumed that after 12 years, theequipment provided by the proposed project would be totally depreciated and/orthat the sane equipment would be technologically outmoded by then. The lifeof the project for this exercise is from the mmient wnen additional costs areirnurred (1984) to the monent that the equipment is totally depreciated,1999. The base year of the evaluation is 1985, and all prices are expressedin 1983 levels.

6. Benefits. Benefits are measured by the irerrmental salary to be

earned by graduates of new programs compared with those of existing programs.For each year, the present value of estimated salaries of graduates from the

new program is subtracted from the present value of estinated salariesgraduates would earn fran the existing program. Available information on the

employment prospects and ircone potential of graduates of existing programssuggests that they would enjoy salaries of approximately TL 25,000/month (1982

prices). Graduates of new technician programs are assumned to earnTL 55,000/month (1982 prices) rising at 2% annually. Both sets of wage ratesare converted to 1983 prices, and graduates of the new program are estimatedas earnirg TL 825,000 initially and graduates of the existing programs,TL 375,000 annually in 1983 prices.

7. Costs. The proposed project supports the development of eighttechnician training centers which the Governmrent intends should be a precursorto the developnent of other technician training centers. The curriculadeveloped for the eight centers will be applicable to other centers in thefuture. Similarly, expert services for the developnent of a management systemin Y^dK has an application beyond the exisiting eight technician trainingcenters supported in this project. It will benefit all subsequent techniciantraining centers also. Therefore, the expert services costs pertaining tocurriculun development and the development of a management system at YdK were

entered in this calculation at 30%/ and 50%, respectively, of total costs,while equipment costs and fellowships ware entered at 100% of cost. The costs

of existing buildings are assumed to be the sane to both the existing and theproposed program. The cost of refurbishing existing buildings is chargedfully to the proposed program.

8. Opportunity Costs of Student Time. The opportunity costs of studenttime ware assuned to be the sane in the two programs under comparison andsirnce the objective of this exercise is to canpare alternative uses ofexisting premises, opportunity costs of student time ware not included.

9. Externalities. As the evaluation of the benefit/cost ratio of theproposed development of the eight TTCs does not include the positiveexternalities which, through increased iworker productivity, will accrue to thennnufacturing and export sectors of the econoWn, it understates the fullbenefits of the proposed project.

Annex 4Page 3 of 3

Table 1: Present Value in 1985 of Costs and Benefits of Developr,ent ofEight TTCs for Tedcnician Training, 1984-99 (1983 prices, TL M)

Costs

Additional salaries under TTC progran 114Additional costs of nmintenance andmaterials 37

Cost of equipsent 5,511Refurbishnent 92Expert services forcurriculum developTent 208

Expert services for developn-entof a management systemn 281

Fellowship program 1,033

Total 7,276

Benefits

Incremental wages and salaries earnedby graduates of proposed techniciantraining centers as canpared withwages and salaries of graduates ofexisting prograns 18,168

Relative Benefit of Proposed Program 2.5

-46-

Arme 5Page 1 of 3

RER.UC C' IUXEY

INUST IAL IRAINI W. FCr

S9ET APEPAISAL REE(RT

Tdinical Assista,ce Program for YbK, SEGM ai SIS

I. Comucil for Hier Fucalt-in (YcK)

Icperts FellashipsTbtal Total

Dzratin Nl)er of Duratin N.sber ofnzber Obnths) Man-rOnths lNxder (Wnths) Manrinths

Pro== am wnUt

12chnical Fducation Plarer 1 30 30 4 1 4Fqui,xpot Procurement and

Facilities Plamrer 1 12 12 2 1 2Eminaticns and kcreditation 1 12 12 2 3 6lbnitoring, Evaluation and Education

lnma~i~nt - -1l/ 15 10 -1/ 22

Sub-total -2/ - 69 18 - 34

Prgrana Developnent - - l/ 12 -

Curriculum arni Staff DeveloynEnt

(Izmir and Istanbul)

Control and Instruzmtation (Istanbul) 1 12 12 8 9 72Gxmunicaticms (Istanbul) 1 12 12 8 9 72Industrial Electronics (Istanbul) 1 12 12 16 9 144EMactrical Engineering (Istanbul) 1 12 12 24 9 216Jchanical gineerirg (Izmir) 1 12 12 40 9 360A/C and Pefrigeration (kmir) 1 12 12 8 9 72Foundry brk (Ianir) 1 6 6 2 9 18Agricultural F ineerirg (Ian;;) 1 6 6 6 9 54Canputer Scienwe (Istanbul) 1 6 6 6 9 54Civil Engineerir (Izmir) 1 12 12 14 9 126Basic cienre (Iazir) 1 12 12 8 9 72ELT (Istarbul) 2 12 24 16 9 144

Sub-Totai 13 - 138 156 - 1,404

Instructor Traixiix (Izmir) 1 24 24 8 9 72

Total -2/ - 243 182 - 1,510

I/ of various duration.2/ not calculable in view of varyirg nuiber and duration of short-term experts.

Doc. ID No. 1613V

-4 7- hnrnex 5

Page 2 of 3

II. Industrial Training and Developumet Center (SECM)

EBperts FellcwshipETbtal Total

Duration Nbmber of Duration Numxber ofNimber (Months) Man-Months Nunber (Months) Man-lMths

Organization, Developnent and Planning

of National Industrial Training System

Industrial Training Systems Planner 1 24 24 2 2 4Marpcxwer Ecomnist 1 12 12 2 2 4Industrial Training (technician level) 1 12 12 4 2 8Training Standards and Accreditation 1 12 12 3 1 3Finance, Mlnagemnt and Information Systems - 1 12 5 1 5

Sub-Total -2/ - 72 16 - 24

Pogran Developnent

General 1Ynaggent Training 1 12 12 6 3 18Production Managenmt Training 1 12 12 6 3 18Training of Trainers 1 12 12 8 3 24Training Materials Production 1 12 12 1 3 3English for Special Purposes - - 1/ 12 4 3 12

Sub-Tbtal - 2/ - 60 25 - 75

Industrial Training Facility - - 1/ 20 - -

Pre-Investnat and Feasibility Studies - - 1/ 12 -

Total - 2/ - 164 41 _ 99

1/ of various duration.2/ not calculable in view of varying nuTber and duration of short-tenm experts.

Doc. ID No. 1613V

-48- _ 5Page 3 of 3

III. State Institute of Statistics

Fellwship ProgranTotal

Nmber ofDepartment Subject mnrba Duration Mrrtns

(MDnths)

Eccnanic Statistics Manufacturing industry 3 3 9Constnrction 3 3 9Trade 4 3 12Forestry, Fishery & Husbandry 3 3 9Agriculture 2 3 6

1 5 5Transportation 3 3 9

1 5 5Price Indre~s 6 3 18

2 6 12Industrial Production 5 3 15

2 6 12lbor and ges 2 3 6

Research Input-Outptt Data 3 3 91 6 6

GN and Ntional Accounts 3 3 91 6 6

endmical Operations Progrnarg & Syztexem Analysis 4 6 24DPC fMnagement 4 3 12Census Geography 2 12 24

Total 55 - 217

Doc. ID No. 1613V

-49- Annex 6Table 1

1CPUBJC CF TUR1Y

NSUTRIAL TRAffl PRQJECr

STAFF APPRAISAL REPORT

Projected Earollrmnt in Technician Training Certers by Main Subject

Subject Antalya Cankiri ]Iizce Iskenderun Istanbul Izmir Kirikkale Konya Total

Electrical

Control andinstnentation 30 30 30 30 30 30 30 30 240

Coimmnications 30 30 30 30 30 30 30 30 240Industrialelectronics 30 30 30 30 30 30 30 30 240

Electricalergineerirg 60 60 60 60 60 60 60 60 480

iy-chanical

Me~chanicalengineering 90 90 90 90 90 90 90 90 720

Air conditioning& refrigeration 30 30 30 30 30 30 30 30 240

Foundry tedmology - - - 30 - 30 - - 60Agriculturalergineering - - 30 30 - - 30 90

ConstructionTechnology 30 30 30 30 - 30 30 30 210

ComaterPrograrming 30 - - - 30 30 - - 90

Total 330 300 330 360 300 360 300 330 2,610

1/ All students will, in addition to their main subject, take courses in ccmputer use, math,basic science, tecmical drawing and English language.

REPUBLIC OF TURKEY

INDUSTRIAL TRAINING PROJECT

STAFFk APPRAISAL REP)RT

EstinEted Expansion of Industrial Technician Traing Programs, Cuncil for Higher Education (YioK) 1/

Eight Technician Training Centers for Which BankSpSU port Requested - - - - -Additional Centers Planied - - - - - - Total- - - - - -

By GovernmentAcademic Year Grade I Grade 2 Total Graduates Grade 1 Grade 2 Total Graduates Enrolhnent Graduates

1986/87 1,020 1,020 1,020

1987/88 1,020 980 2,000 2,000

1988/89 1,300 980 2,280 940 2,600 2,600 4,880 940

1989/90 1,330 1,250 2,580 940 2,600 2,500 5,100 7,680 940

1990/91 1,330 1,280 2,610 1,200 2,600 2,500 5,100 2,400 7,710 3,600

1991/92 1,330 1,280 2,610 1,230 2,600 2,500 5,100 2,400 7,710 3,630

1/ A dropout rate of 4% is assumed for grades 1 and 2.

H >

-51- Annex 6Table 3

RaPBLIC CFUM

NUSMIRAL IRAINM P POE

STAF APPRAISAL CrOU

Requirements for Trained Instructors by Main Subject

Subject Areas Teacher Requirernents

C-nm Subjects

Criputer applications 8ivaths 8

Basic science 8Te ilical drawing 8English language 8

Specialist Subjects

Electrical;Control and instrunentatiac 8Commicaticxs 8Industrial electronics 16Electrical ergineerirg 24

Yechanical:MJchanical engineering 40Air conditioning and refrigeration 8Foundry technology 2Agricultural ergineering 6

Constructicn 14Conputer programiig 6

Total 172

-52- kmex 7

REPU1BLIC OF TLRY

mISERIAL IRAINl& PRECr

STAFF APFRAISAL REP(RT

Area and Cost Per Place for the Techician Training Centers

GrossArea Costs in US4 (mid 1983 prices) per place

(sq.m.) Construction Furniture Equipment Total

Technician TrainingCenters (TTCS) _ 12.0 1/ 200 3/ - 6,500 6,700

Bank-wide experience(78-80) for cnperablefacilities 2/

First decile 18.2 9,515 810 6,900 17,225Second decile 15.2 6,640 685 5,450 12,775

1/ A mininun net area of 5 sq.m. per trainee place in laboratories,classroons and workshops will be provided. By estinating recqiredauxiliary areas (3.5 sq.m./place) and grossing for walls and circulation(40%), total gross area per training place is estimtated at about 12.0 sq.m.

2/ US$ figures have been inflated to mid-1983 price levels to m3kecomparisons with the proposed ITCs.

3/ Minor refurbishment of existing facilities.

TURKEYINDUSTRIAL TRAINING PROJECT

Sunaarg Account by Project Component(T. LIRA Million)

COUNCIL. FOR HIGHER EDUC ( YOK IIND TRG3 I DEV CENTER (SEGEM)--- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - -- - - - - - - - - - - - - - - - - - - - - - STATE INST OF

TECHNICIAN MANAGEMENT CURRIC. AND FUTURE NATIONAL FUTURE STATISTICS PhysicalTRAINING SYSTEM FOR STAFF PROJECT INCREMENTAL IND TRO PROGRAM INDUSTRIAL PROJECT INCREMENTAL------- Contingencies

CENTERS ( 110 TECHNICIAN ED DEVELOPMENT D EVELPMNT RECURRENT SYSTEM (DEVELOPMENT (CONSULTANCY IDEULMI RECURRENT STATISTICS ((120 1 130 1 (140) COSTS (150) 210 1 220 1 230 1 (250) COSTS (260) 310 ) %Lal I A.out

I. INVESTMENT COSTS

A. CIVIL WORKS

RENOVATIONS OF EXISTING BUILDINGS 121.96 -- - -- - 121,96 10.0 12.20

Sub-Total CIVIL WORKS 121.96 - - -- --- - - 121.96 10.0 12.20

D. EQUIPMENT

EQUIPMENT 5P499.03 8.05 - -- 218.62 -- --- 5,725.70 10.0 572.57

Sub-Total EQUIPMENT 5,49.03 8.05 - -- 218.62 - - --- 5,725.70 10.0 572.57

C. TECHNICAL ASSISTANCE

FELLOWSHIPS - 24.47 1,044.99 - - 17.27 53.98 - -- 156.17 1,296.88 10.0 129.69 Ul

SPECIALISTS - 226,97 671.03 39.47 - 236.83 197.36 65.79 39.47 -- 1,476.93 10.0 147.69

Sub-Total TECHNICAL ASSISTANCE - 251.44 1,716.02 39.47 - 254.11 251.34 65.79 39.47 - 156.17 2,773.81 10.0 277.38D. INCR. REC. COSTS

RECURRENT EXPENDITURE - - - 71.35 - - - - 557.00 - 628.35 10.0 62.04

Sub-Total INCR. REC. COSTS - - 71.35 --- 557.00 - 628.35 10.0 62.84

Total INVESTMENT COSTS5620.99- 259.48---- 1-- 716.02-- 3----47 -- 1--3-- 472.73- 251.34---- 65.79---- 39.47- 557.00--- 156----1-- 9--249.82 10.0 924.98-

Total BAEINVESMN COSTS 5,620.99 259.48 1,716.02 39.47 71.35 472.73 251.34 65.79 39.47 557.00 156.17 9,249.82 10.0 924.98

Physical Contingencies 562.10 25.95 171.60 3.95 7.14 47.27 25.13 6.58 3.95 55,70 15.62 924.98 0.0 0.00Price Contingenvcies 1,788.36 19.81 454.81 5.97 29.28 114.37 41.42 20.06 5.97 210.86 26.01 2,746.91 9.1 249.72

Total PROJECT COSTS 7,971.45 335.24 2,342.43 49,39 107.76 634.37 317.89 92.42 49.39 823.56 197.90 129921.72 9.1 1,174.70

Taxes 15.52 -- -- -- -- 15.52 9.1 1.41

Foreigin Exchange 7.047.97 286.55 2,119,01 41.58 - 585.84 276.04 77.81 41.58 -190.28 10,696.66 9.1 972.42

…-- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

March It 1984 09143

-54- Annex 9Schedule 1

_ ____ IF_ -t

a _ 1 I

E4 _ -__ ___I _I___tC __ _ _ _ ___ _____ l.

i~~~~ _ w =___ PI

tt N I I ~~i 1. I I

$~~ _-a~~~~~~, $ -

-55- Amex 9Schedule 2

REPLIELIC CF TURKEY

INDUSTRIAL 'IRAININ ERJECr

STAFF APPRAISAL REP(T

Estirsated Schedule of Disbursenents

Disbursenaat Profile a/Regional

IBRD fiscal Disbursements This average inyear and Sieester (Xulative project education b/

semester -(4us$ million)-

19851st 0.6 0.6 2.0 1.92nd 0.8 1.4 3.8 3.8

19861st 1.7 3.1 8.4 6.82nd 1.8 4.9 13.3 10.8

19871st 3.7 8.6 23.4 16.02nd 4.9 13.5 36.7 22.3

19881st 4.5 18.0 48.9 29.52nd 4.6 22.6 61.4 37.3

19891st 4.9 27.5 74.7 45.42nd 3.7 31.2 84.8 53.6

19901st 3.7 34.9 94.8 61.52nd 1.9 36.8 100.0 69.2

a/ The profile shows cumulative disburserents in percentages.b/ The profile was constructed using historical data from 34 projects

during the period FY71-81, accelerated by 5% to eliminate "longtails." The disbursenmt profile of this project is significantlyshorter than the regional average because the project containspractically no civil works- corrmr source of delay in past projects.

TURKEYTHE COUNCIL OF HIGHER EDUCATION (YOK)

OrganIzatIon Chart

PresidentThe Council of Hisgher Education

(YOK)

Technician Vice President Vice President Director of tdn eeto

|8llrelcnhno Unlt | | (Int6l VcR fars) Public Rlb tl8 Cn Member

SeouclMeted s by6 Council Members 2 Council Members I Council Member CunlectMembyterSelected by Selected by Selected by the Selected by the lnter Unbiersith

President p the the Cabinet Ministry of Education Chlef of Staff Inter Uncvorsity

I~~~~~~~~~~ I Secretary General

Asltn Assistant|| ; ;;7 AdviXsoy UnitsSecretary Gnera Secretary General

Main Units Supplementary Units

a. Directorate of a. Directorate of Coordinatlon Office ofEducation/Training . b. Directorate of Administratlon Legal Counsel

b. Directorate of Planning c. Directorate of Construction _ _ _

c, Dlrectorate of Research c d. Dlrectorate ot Budgets (D

& Investments xe. Directorate of Library

& Documentation of. Dlrectorate of Data

Processing World Bank-25663

TURKEYTechnician Training Unit, Council for Higher Education (Y6K)

Proposed Organization of Management System for Technician Training Centers

President,Council for Higher

Educatlon

University Dlrector GeneralRectors & Director of PIU

Tochnclon PROJECTTecrnicing IMPLEMENTATION UNIT

Training.Institutes Accountant

Procurement Speclalist

Flnonce 8 fcllt 2 Curricuium & 2 Teacher 2 Industry & 2

Administration Fanner Teacher Training Recrultment & University

Offticer Franner Development Unit Placement Unit Relations Office

(Ankara) (Ankara) (Izmir) (Ankara) (Ankara)

Engiish Language2

& CurriculaDevelopment Unit

(Istanbul)

Estabilshed. iS2 To be established by September 30, 1984. World Bank-25186

rt r

0

TURKEYORGANIZATION OF THE INDUSTRIAL TRAINING AND DEVELOPMENT CENTER (SEGEM)

Manoalnaag Bood

I -- IRu

b~~~~~~~~~~~~ea Ao__s

Aaistunt Dlrector A l Assistant Drrractr

(I_hnta /hlo) io~~~~~~roiect Gekmhtneral

| IndustrialGeneall

(Tcncl AfIrs Corin_ to

Industrial CMhchenmi icol Electricoal Mtallurgicol Indusfal

Enginewring n rin Engineering EngineeringE ring | snarnunt

Accounting Es ... 'onnt .H uPpornt

C)

World Su0nk - 25`185

TURKEYORGANIZATION OF STATE INSTITUTE FOR STATISTICS

O f 95s

i Econoc StatsstPic4s |neDtrsid o

indicatIonS Census Fin~~ Res arce Adinstatotcntrrene

| Department ] | (enr

| Econornic& | ff 88EcrK_ni 1 i | Social PublicatdOnsSocial Rosearch Social Accounts Stsor c Poul Statistics Census oneophy

ProductIon InternatIonal tranpot _eoIaphIcifry

iDen>o raphy hndustoai Accounts Fofeign Twade JusticeEconornics indications Prlces EducationIndications Census finance CultureSocial Srocioi Accounts Labor Populationi'roductlon Intemautlonal Transport iDeorcKipohkcInternational Research Agriculture ToudriSArchive EducatIon Forestry & Fishing

input/Cutput IndustryMiningConstructlon

Wor1d Bank - 251i4

rD

CD

-60- Annex 11COMPAAATIVE! EDtUCATION INDICATORS Page 1 of 2

FENRRARY 16, 1996

OR EDUCATION RECL'RRENT ADULT LIEPO N Ir cosT IpRocitess1oN 101NP PER AS PERCENT EXP n.ITURES LITERACY RIAR 1 P.1 I9AEY7 POl RIMflY PRIMARY SRATE. PROM EcoNDAR SEODR HIIREE

BASE POP. CAPITA PERCEIT GONP TOTAL CYENTAL ALLIOCATED) TO: RATE ENROLL. CROOL STUDENTS EDCTO SMARY 73EROL X TUYNSrr E.?OL'L.YEAR MILLS. (05$) DEVOTES TO OOVERN3'ENT PEl sic Hi (1) RLATIO CYCLE P.ER AS PERCENT SICONDA1Y RATIO PER RATIO

(1979) (1979) EDUCATION EX?ENDOTURE (I) (1976) (2 ) (0) TEACREE GN?/CAPITA (i) (1) TEACR. It

(1) (2) (3) (4) 5 6 (7) j () 9) (10) (11) (12) (13) 14)

DEVELOPED COUNTIESAUSTRTALIA NO0 14 6b 8,870 6.3' 14.6 - - 10331 100 21 - 99 73 13 20.90)CANADA 81 23.76 9,6)0b 7.74 19.3'! 30'! 34'? 23'? 990 106'x 100 21 19.9'? 100 92' 19 22.60'GERMIANY 7.R. 79 61.2 12,200 4.6 9 9.0 - -- - 99b 899 100' - - 190' 94' - 12.10'

SITPERI..ANSS ~79 14.0 10,490 7.9 5.1 20 25 25 99b? 96 95 1s 15.3 99 82 13 12.40NEw ZEALAND 99 3,26 6,2916 5.9 13,4 37 31 28 96 190 105 26 11.6 100 92 13 25.80'.SWEDE N 79 8.3 12,250 9.0 18.2 31 10 10 996 99x 100 19' 19.9 100 79' IC&' 56.30'!

E-ASTERN AFRICABOTSWJANA 80 3.gb 7201, 6.3p 19.3 69 28 1s 35b 94 76 32 32.0 33". 70 19 1.30BURUNDI A1 4.2 235 2,8b. 19.0 43 28 27 23 29'X 33 37 20.2 12 2' 17 1.00COMOROS 00 9,.46 260 6.91 25.4 60 396 14 -- 99' 65 45 16.0 39 21' 30 1.40"ISIO TI 81 0.) 460 5.4 17.8 60 40 . .. 10 32 -- 61 -- 60 A 19 0.30OTNRIO pIA Al 32.0b l4ob 2.9P 30.7 45 23 20 53 62 12' 63 60.0 93' 14 46 0.45KENIYA 79 153. 3991 5.QW 18.0h 71 15 14 45 92 74 40 10.0 41 19 29 1.00LSOUTHO 92 1.46t 433b 3.3 16.9 30 32 26 336 116' 41 49 9.6 46 31 21 1.30KADACASCAR 77 0.0 330 4.0' 24.0 53 28 19 30 94b' 33 ssb 9 .0 38 14 23 3.10b!MALAWI 01 6.1b 233Q 3.0 11.41 38 14 23 336 62 23 63 3.R 12 6 21 9.40,IAUR IT IUS 60 1*q ib,1nob 6.0 11.) 39 40 7 90 87 78 336 17.1 79 45' 21 7.40.WANDA 80 5:o 28006 3.2 21.1 62 17 11 336 37' 62 40 I&. 6 4' 13 0. 49rSRYC8ELZS 79 0.6 1.770 5.9 22.4' 34' 33' 1' -- --- --- 25 --- --- --- --SOMALIA 81 4.5t 290 1.9 10.0 5ob 4.o6 66 50 336 806 396 ;.46 .90- 126 22 1.90SUDAN 80 ig 3606 3.0 - 66 39 .. . 32 51"2 68 36 1.4 44 16 16 .SWAZILAND 90 0.6 760 7.9 19.0 41 34 13 6,56 79 so 34 11.2 a8 376 is 3.10

TANZIANIA s0o 8. 260 0.9 17.7 47 t0 16 796 996 97 43 11.0 196 2 20' 0.30UGANDA 00 12.66 3006 - 16.1' 336 376 3 49 34' 61 36 - 17 3 23 0.60

ZAIV 70 27. 210' 6.0' 22.0 .49 26 25 15 94! 46 62' - 41 13' 27 I1.106b7ZA.'ISIA 90 3,76 ~~~~~ ~~5646 4,57 11.1 68 23 22 446 93 80 49 12.9 19 16 22 1.50)

ZIMBABWE St 7.76 7006 5,1 19.) 62 32 6 446 90 55 29 20.0 83 13 23 0.30

WESTER AFRItCARENIN 70 3.4b 3336 6.5w 33.0 43 21 116ii 42 30 46 14.0 30 11 43 1.007CAMEROON 70 A.3 590 2.9! 16.0y 33' 43' 20 -Y 747 4)' 507 1 1. ' 20' 147 26 1. 307C.A.R. 79 2.2 290 3.8'7 20.6" - -- --- 659! -- -- --- -- 9.79'!

GOAD 76 4.4 120 3.4b"! 21.76 is 01! 7 -7 -- 3'! 01 0.30700510 79 1.5 670 9.0-"y 27.74! - 5467 30 - 436! 4.00'!

'ABI 7 7 3.6 3.420 3, 767 0.67 -- - - - - 4 9 b -- 1-- 6!b 3.800'2A2C981A 77 06 220 3.2". 6.56 66 23' 6' 106 4067 90 3767 4...7' 60 12bz7 17 -

IPANA 76 11.3 ~~~~ ~~~4100 4.07 13.56 - 761 27-!- 231

GU i:NEA 7' 3.3 290 5 4.6'1 -- 25' 2A' 29'& 20 34 36 38 20.0'! 03 16 29 7.00'1906! COAST 01 a,2b 1,070b 10.0 40.0 33 46 13 306 60 96 43 26.0 47 l5"w 26 1.90'!LIBERIA 90 1.9 520 4.6 19.6 43 23 24 30 52 52 35 20.0 76 22 20 2.90

'-ALI RI 7.06 190 4.2' 31.7' 38 21 It 19 203 60 44 10.7 46 1 it 3.60'!

4AURITAXIA 78 1.66 3206 3,5 16.9 33 43 25 7 32 60 44 53.0 30 9 'A 0.3750006 79 3.2 300 4.3'! 16.6'! 32' 43' 3' 9 1 7 56' 41' 39,7' 40 2 346 0 205NIGCERIA 77 92.6 910 4.1! 9.6…- -- --- -- -- - - 10' 25 N. I-,7~SENEGAL 77 3. 43 .0 23.0 46 34 20 19 * 41 - 0 10 21 2.20kSIERRA LEONE 77 3. 200 4 0b 16.Ob - … - - 13b 37' - 35 3536b 84 15' 12 9.696b!

TOGO 70 2.6' 400 6.)5' 26.5q 70' 20' 21' 19 74 40 346! 3930 52 3361! 496 1.60b!

UPPER VOLTA 70 3.6 I80 3.0". 19.3'y 31 16 32 - 1)67 23 336! 32.37 19 3b.3! 23 0.02!

LATIN AMERICA AND TH! CARIESEANARCONTISA 78--r ~27 .3 ~2,210 2.7 10.9 43' 31' 18'& 936 49 52 17 8 7 31 9 23.00BAFAMAS 79 0.2 2,779) 5.7 19,1 36 36 11 934 N9 97 26 9'g 75 19 -

BARAADO3 78 0.2 3,680 83"'!1 22.1' 43' 31' 16' 956 17OY 99' 27! 19.9' 99' 797 20Y --BOLI 'JIA III 5.4 330 4.1'! 30.5' - -- -- 63 74! - 307 - - 13Y - 12.60Y'3NAlL 79 116.5 1,770 3.S 6.2 SI 14 76 73'! - 23A7 4.56 61' iS'! 14'! 12.626CHILE 76 10.9 1,990 3,26! 13.Ob - - - 110lgb- - 3467 5561! Zoby 1l.9go'bCOLO.SIA 80 26.7b 1,1806 3.3 23.0 35 20 20 916 79 36 32 6.6 - 47 20 10.02'!COSTA RICA 90 2.2b I1,9I0 8.6 31.1 40 27 33 913 93 77 33 3.5 77 40 27 14.00

CORA 79 . . 11.0 --- -- --- 96 11261b! 99 .39! - 98 71617 13 19.02b7

DOMINICAN REP. 00 3.3 I' 030 2.8 13.0 s92o2 96 0 31 50 3.2 94 30 32 16.10ECUADOR 90 8,4b 1,1110 6.0! 36.7 43 31 16 91 103 -- 36 12.6 86 47 16 29.00EL SALVADOR 77 4.4 640 3,4b! 23.1by 64 8 27 62 9261! 32 39 - 40 266b! 376! 7.906!G2ATLNA0.. 70 6.4 1,010 1.7'7 12.66 -- -- -- - 6961! -- 336, - 69 13b.7 196! 3'0'OGtrYANA 76 0.5 630 9.16! 13.80!Y - -- - - 956b! - 32b! - ~ - 3961! - 3.206!

RAI TI s0 5.O 230 3.4' ?,9'! 65 9 6 236 30 30 41 19.0 62' 4. 27 0.80qNONOOSA 78 3.4 320 3,7b' 114.3b! 62' 13' 19' 60 996b7 30' 41by 12.8' 68' 311! 19 8.)O7AKAICA 00 2.1 1.110 6.3 13.7 37 43 20 90 98 99 40 2.3 95 81 22 9.00MEXICO 90 65.3 1,980 o.7 17.0' 46 39 115 92 99 53 44 9.5 06 56 17 10.30NICARAGUA 70 2.66 610 3 ob 4 - -- - sob S5bz 24 376 - 26b' 36 -

PANAMA 79 1.06 I,330, 5.b361! 21.06! 42' 13' 13 82b 936! - 23b7 11.6 93' 506! 276! 20.4067PARAGUAY 79 3.0 1,140 1.4'- 14.2 42 17 20 04 03 32 Zs 3 ,1 r '6 2 12 0.70

VYR 00 16.6 100 3.6 14.3 53 IS5 19 s0 63 56 39 9.9 99 39 22 14.407TXINIDAD 4 TOE. 77 1. 391 4,67 0.6 49 32 00 93 99 91. 39 10.37 419 62 24 --

ZEOGOAT 78 2.9 2,500 2.3 9,4b - - - - qi, 10b - 246 - 4b6 -- 17.so'!09V7E0.AIE 70 14.4. 3,440 3.17 16.96 -- -- 02 109b. -- 20 - 3gb. 17 21.137

Annex 11CoRPIAT2VI! !DOCATIOON 1INDICAT0RS Page 2 of 2

nIRUAMY 16, 1994

REUREN &D(TmL FRUIT COST PROGJ.ESSI(f

C" I~~~AS PEICEUT J!X ENDITnES LlITItACT PRIM)ARY PRIOAR!y PRIMARt! PRIMARY RATE "OM( SC.ATEC0TAR" RIC-MER

SASS Plop CAPITA p981188 G? 0?TO.TAL C7ITSLAL ALLOCATZO TO tA3T. ENROLL. SC180OL STOnpVS EDUCATION R IMARY6 TO ENROLL.1. IST31NT6 EKR0LL.~61.8 ILL;. (US") D80T1D TO (3)PR ECH 9LA1I0 CLE Pt AS P71C!97 SrCOYMASY RATT'3 PER RATIO

(1979 (1919 SCATTO 1!XPE801TUhWZ z (1976) (2 ~ TACERC (3)PTA (t TIACI9ER (23

(1) (2) (3) (6) (5) (63 (7) (9)( 1)(1

1.65f AStA A"P 19 PACZ?TCCHINA4 9-- 96.0b 300b 3.6 8.3 36 39 27 69b 90 63 23 7.0 72 39 17 3.70ZYWNESIA at 150.06 520 2.1 9.3 70 26 6 326 96 61 37 11.0 74 27 26 3.70

KOREA 8~~2 39.3b 1,636b 7.7' 20.8 36 34 31. 96 99 99 43 19.0 99 96 38 21.90'IAS.AYSIA * 91 ~~14.2b 1.7 . 2 2 7 s 0

69 97 22 12.2' 97 t9 9

3.7CA -

nAkPUA N.r,. 79 2.9 760 5.4' 16.4' - - - - 6260 73 31 1.1 - 12h. 23 -?R ILIP7INES 79 .8.1b 6906 2.6' 16.0 64 36oa-- 756 86 65 31 7.1 89 i5 36 21.0051760APORE 90 2.4 6,420 2.7 6.7 39 40 16 93 92 92 31 9.9 96 59 22 9.00

SOLO"909 ISL. so 0.2 460 4.2P' 10.0 41 34 20 - 60 s0 26 - 35 LS --- --76AILA6D 90 417.3b 7236 3.4 20.9 59 15 13 966 96 - 1.7 9.3 59 29 23 409o

SOU7TH ASIAiZAOOLAOKS6 79 92336 90 l.tp 10.1'7 51 17 20 336 637 - 53 5.6 14 23 1.43INDIA 77 659.6 210 2.97 9.957 - - - 36 79' - 411 - - 29'- - R. 30C'4EPAL 82 13.06 1506 1.4 -. - - - 19 70 - 38 --- - 21 23 0.70'

PAKISTAN 79 79.7 270 3.0'! 3.17 39 26 27 26 56, 9- 48 6.5 51 2nx 17 (.00

=110 SY 10JD1. EAST AND NORTH AFRICAAFCSANISTA9 77i 15.5 - 1.7 3.7 47 19 1) 12 3tby 69 376 - 62 9 22b! 1.0o7

ALGERIA1 79 18.3 1,770 3.9' 12.3 34' 26' 20' 35 937 45' 37 7.0? 5)a 397 26 3.707

107?? 91 45.06 506b 3.1" 4.3 31' 35' 36' 66 94' 90' 34 Q.9. n3- 43 19 15.00'199911! 76 9.3 4,160 2.6. 10.66 37 26 21 - 9767 - 2b 6.27 - 79a 767 17.906!IRAN9 79 36.9 - 5.78! 14.i'y - - - 50 101"I - 328 - - 44". 26' 4.90'!,1960 79 12.6 2,710 4.387 6.98! - - - - 100y - 29 - 4.5'! 29' 9.30'!

19IRELAND 91 3.4b 4.480 6.3'y 11.9'So - - - 99 93 94 29 - 98 81 14 11.00!iOUAN 91 2.26 1.420b 4.9w 10.2 19 44 19 7Qb 109' 95 32 7.2 91 92' 25 10.00LEBANON 79 2.3 - - 19.6"1 -- - 96' - 19 - -- 46X -- 27.90-NOR1OCCO 90 195 740 6.3"- 17,3' 36 44 20 I9 56" 35 39 19.7 40 3'5 21 41.50OMAN1 92 0.96 5.920b 2.3". 12.7' - - - 3067 71' 65 23 8- 6 it 14

P091006AL 79 9.8h 2.060 3.6 22.2 50 29i 11 79 97 20 19' 12.9 99A 451 '7' .30QROWAIA 78 22.1 2,130 3.9b! 6.2y - - - 99 106b' - 23b 98 940. 2b 10.60b'7SPAIN 76 37.0 4,930 2.17 16.Ry - - -- - 99b! - 296 - 676! - 24.1007

SYRIA4 78 9.6 1,170 4.4P 10.3 39 25 26 59 976! so 3!6 -- 6 416! 216 121.60ruNrsIA 79 6. 1,a 7.0 19.0 42 39 Ls 626 100'x R0 396 12.0 30 30 2A 0 0.0010567 II 6.76 1.4,606 5.1, 26,2 - - - 736 116' 90' 28 7.9 31 38a 20 61.7016398 A.R. 9 6.9 420 5.07' 12.0 96 7 7 336 37 12' 397 67.0 935 3 20 1.10

.'639!79 7.0.9. 2 2.0b 4206 7.6 9.7 63' 144 0' 53 61 34 23 2.' 46 17 20.3

SUMMARY FOR 7777L09P01 107(17635:Numenr of Coun,tries: 96 96 70 69 67 76 98 64 94 62 72 91 96 93

Range: (1.4- 3.7- (19- (7- (3- (9- (10- (12- (17- (11.1- (6- (21- (9- (31.01-10.0) 65.0) 04) 46) 36) 99) '19) 093 77) 67.0) 9.) 84) 403) 2q.()

Qoartila.: Upper: 5.6 20.9 52 55 31 90 96, 79 42 20 95 45 23 10.6

(ledis,,: 4.0 15.5 43 27 19 32 R3 60 35 12 61 23 21 3.7Lou.. : 2.0 10.0 17 10 13 24 ( 6 2) 27 7 407 13 19I 1.0

76,8rtlle Oe-l.tlo- 1.1 5.1 7.5 9.0 4.0 23.3 20.0 22.5 7.5 6.0 22.5 13.5 9.) 4.9

H.as: 4.5 16.L 46 39 19 53 75 60 36 116 60 31 31 6.9

itandard Deviation,; 1.9 7.4 13 10 7 30 26 25 11 13 27 23 7 7.4

M.di-n 4.0 15.3 43 29 19 53 02 61 0) Al6 35 22 3.,

SUNSBOLS: FOOTNOTES:D ATUM UNAVAIL.A9LE A- 7A-.'6 PRI0R 70 960! '?AR - 41010797 OP IDUC1AT120 (MOO) C!SLY

.. 9AGNt7UfE NIL 'P. 700LICI3LLO AI OATU717 6097F RECENT 794A6 BASE (A 7 -0 A42(0 STAT! 20VE9399(3 ONL.YDATUM13 Oi!S17OPABLE 9 - CURRFENT PRICES W -L'79L17 EXPR3t7U97 O9NLYINCLUDES9 ?ART-TLM! ST00NST P. GDP 0 - 15017D17 777R-AGE ST70ENTS

7' - 767111 S09RCES

roLumn I nd 2: World N3-k Atla, or 390 lnRD .C,olumn. 3 to 14: IS80 et-aone, rovermentz so-r-ce. andr Onasco. Statsr1c.1 'e..rhook.

C:oseeratl- Eductatloi Deta are ... f.1 L. the evaluation of variouS education nylot and analysis of relati-e staes of ed ... iOn.1 fv-ne-et hetween -rious

coun tries. 9o-e-r,..o the hasls of the present data, crn-5toe wprnnshould be approachehd with areat -oion. ')ata presen.ted4 In the Short table h.,.been collected iarRely b7 Bank i.siOns frmi goveroamat sources; the reselnder are taff estimates or dat. (roe Une..c.. Efforts ta... Seen, d td. n stnd-rdizedefinitions and,.1wthin limits, to ch..k the eurc of the data..Ovrhie,ec date -r still Leperfect In --erl res pects and the Rank L. -okloq toImpr... th- prgeaiaWo th. otcasioe of its operational work.. In roe u... of th... data, t,h. fo.o1 n qa-1latcn should 6. kept in .InA:

(1) 'Eduocation' aa defined in th. table includes ail od.coti.. und training, hotS f-1,a .n-I nfrml

(2) 'Primary educa.tion refers to education at the firet level aed nsecondary education refere to all education at the -ec..dary l1elrgadls of t7ope(e9,generai, te,chnical, agricult.tr.1).

(3) 'Literacy rates. (col. 6) are often obtained fr.. country- ceeaes..e. in neal coun.tries they are -n0y aoprouaaieatn sd it 11a doubtful that anyon.rdefinition of '11tnr-te h.. hen followed co... ncy

(6) 'Public expenditure, in edn...tio.' (.oIl. 6 and 5) refers tn al1 capital and recurrent expenditure. devted to educatioe by publicn and qaaei-p.blic

agen,cies.

(3) 'Tnral1sen,t reati. (cl. 7, 12 .ed 14) refer to -chool year and are the p-rretage of ligibil ohildren enrolledfulla in the approprinte echool,public and private by leI.. . The! are often subject to a wide tergin of error .10 the develping coun.tries cebi. tO carltlonas In the actor.,! of baaIcdata (i.e.. aeseiicppito and -nroilents(. Enrolleent figrara frequently ar higher than the -uber of students actualIly in 'choni. Over-sgedstudents uesoe... uSo is indi-catd SY footnote. also can lofiote -h. r-tio..

-62- Annex 12

1REPMIC CF TU:Y

NUSfLAL IAINIb PROJECT

SvAFE APPRAISAL REU

Related Documents and Data Available in Project File

I3RD Turkey: Industrialization and TradeStrategy (February 1982)

Paer & Energy RepLrt on Manpower Training in :EKDevelopnent Division (mimeoaip, February, 1983)

Industrial Development Turkey, Idustrial Sector Strategy& Finance Division P (February, 1983)

State Institute of Statistics Census of Population, Social andEconanic Characteristics of Population1% Sample Results, (Ortober, 1980)

Union of Chanbers of Conmerce, Ecomnic Report (1982)Industry, Maritime Camnerce &Comnodity Excchanges of Turkey

TUSIAD (tlukish Industrialists The Turkish Econcmy, 1982 (1982)& Businessmen's Association)

Mashayekhi, A. Shadow Prices for Project Appraisal inTurke, World Bank Staff WorkingPapers No. 392 (May 1980)

Education and MnpowerDevelopnent Division Working Papers

Education and Manpower Industrial and Vocational TrainingDevelopnent Division Sector Mmmorandum (May, 1983)

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