Transcript Document 7155432

Human Resources Development System, Policy
and the Contributions of HRD to Economic Growth
in South Korea
Chang-Won Jang
Senior Research Fellow
Korea Research Institute for
Vocational Education & Training
Contents
Ⅰ. Introduction
Ⅱ. HRD systems in South Korea
Ⅲ. The Contributions of Education to Economic Growth
Ⅳ. Current Situation and Direction of Human Policy
in South Korea
Ⅴ. Korean Labor Takes a Global Perspective
Ⅵ. A New Paradigm of Labor Supply & Demand
I. Introduction
1. Global Trends in Human Resource Development
 Trends in Human Resource Development
· Macro HRD at the government level
· In regard to macro HRD, as it is initiated by governments,
the main concern is strengthening overall national
competitiveness in the global marketplace
· Micro HRD at the enterprise level, of late, appears to
primarily take the form of organizational reform,
company policy revisions toward greater productivity,
and incentive programs aimed at boosting performance
among individual employees
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 Evaluation in HRD Systems
· First, both governments and companies are increasing
investment in HRD
· Second, the key change in development systems is the
move away from "supplier-centered" education and training
systems that are planned and controlled by the central
government. Now flexibly responding to labor market
demand, programs are more region-specific and are
conceived through a decentralized decision-making process
· Third, countries around the world are trying to develop costefficient yet effective education and training programs, and
design evaluation programs to be used to assess
implemented programs on a regular basis so as to identify
areas of improvement.
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· Fourth, a wide variety of continuing education
programs are under active development in many
countries across the world.
· Fifth, with the dawning of the age of knowledge
and information, college graduates worldwide
have emerged as a leading component of
workforces. Accordingly, one of the main focuses
in educational reforms worldwide is widening
access to higher education and enhancing the
quality of higher education.
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 HRD Projects around the World
· First, policy focus is laid on information-related skills
training to provide future workforces with the necessary
abilities to meet information-age labor market
requirements.
· Second, comprehensive continuing education systems
are under construction. This phenomenon is a response
to the shortened lifecycle of knowledge, making learning
a lifelong requirement, due once again to the fastchanging
technological environment.
· Third, skills and competencies specifically demanded by
the knowledge and information age are becoming the
priority in education. These competencies are basic job
skills, general knowledge and specialized knowledge.
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·
Fourth, institutes of higher education are
integrating vocational training into curriculums.
·
Fifth, school system reforms are being pursued
with the goal of creating viable schools, adapted
to a knowledgebased society.
2. Historical Background of South Korea
Education Market
Korea started in the early 1960s as a typical laborsurplus economy with a scarce endowment of
natural resources
In the 20 years following 1945,
the number of
· College students increased almost 20-fold
· Middle and high school students about 15-fold.
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As a result, by 1965 Korea's human resource
development had exceeded the norm for a country
with three times its median per capita GNP
Primary driving forces was parents’ belief of
education
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The education explosion continued
after early 1960s through 90s is well
above even OECD standards.
• Impressive achievement of quantitative aspect of
Korean education:
More than 80 percent of high school graduates
advance to the tertiary educational institutes
within the couple of years after graduation.
• Impressive achievement of quality aspect of
Korean education:
Especially good in primary and secondary schools
as far as their performances on international
standardized tests are concerned.
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This human resource situation has been
conductive to the rapid growth of the
export-led labor-intensive manufacturing
sector during 60s and 70s
This human resource situation has continued
to work especially for the rapid expansion of
the exported heavy and chemical industries
during 80s and 90s
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The Korean economy such as industrial
structural change toward an OECD-type
mature economy becomes increasingly
dependent on technology-intensive and
knowledge-intensive growth
• The coming age of globalization and information also
accelerates trends toward this direction.
• Then, will educational institutions produce the "right
human resources" to meet the rapidly changing
demand for labor in the coming 21st century?
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3. The Changes and Challenges of South Korea
1) The transfer into knowledge economy (KE)
In the 21st century, a high technology, information and
communication industry, and a sophisticated service industry
will make up the core section of the economy, which means that
society will become more knowledge and information centered.
In Korea, it is expected that an industry based on knowledge and
a service sector related to information technology will play an
important role in creating job opportunities in the next five year.
Meanwhile, it is also expected that the size of the industry relying
on labor force and monetary investment will decrease.
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2) Role of Information and Communication Technology (ICT)
In sum, a brief overview of the KE debate suggests the following:
• The KE is substantially an effect of innovations in the ICT
sectors, taking place in a globalized market
• The KE is more than the sum of the technological and
economic processes associated with ICT
• The challenge of the KE lies particularly in its impact on
productivity, growth and competitiveness
• Inclusion in the global KE is essential for high standards of
income, comparable with those of successful KEs.
These conclusions set the scene for a discussion of HRD issues
associated with the KE.
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3) The change of the employment structure
• The Uncertainty of the labor market is expected to increase
with the rapid change of the economic and industrial
structure
• The shift of the labor forces will occur with globalization, a
rapid change of the industrial structure, and the advent of
knowledge and information oriented industry
• In Korea, moving to the other workplaces to suit their
capabilities and preference
• The variety of types of employment, such as part-time
employment and working at home, will become more
prevalent
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4) The advancement of tertiary education
The entering rate of tertiary education from general and
vocational high schools has increased from 27.2% in 1980 to
82.5% in 2004.
The advancement of tertiary education
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5) The aging society
Since 1960, the birth rate has decreased, resulting in
the gradual decrease in the number of adolescents.
The number of the population aged 18-21 has slightly
increased from 310 million in 1998 to 323 million in
2000; however, it is expected that the figure will
sharply decrease to 261 million in 2005 (Korea
National Statistical Office, 1996).
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4. New Paradigm for HRD
The need for continuing education and life-long
education is increasing continuously in the labor
market. A society based on knowledge and
information technology needs employees who are
creative and able to adapt rapid changes in society. In
order to meet such societal demands, employees
should be given ample opportunity to study
constantly, and the recommended method is a selfdirected learning.
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Ⅱ. HRD systems in South Korea
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1. HRD Base on Act of National Human Resource
Development
1) Concept of NHRD
National Human Resource Development" refers to all
national efforts, including education, training and
cultural activities, taken to develop and utilize human
resources efficiently
2) Issues of NHRD Current Situation
① National policy
- Lack of overall coordination in NHRD policies
- The late entry of Koreans into the job market
- Insufficient utilization of women
- Imbalance in the distribution of talent
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② Public school education
- Education focused on college entrance
- National competence outside the school
system not utilized
③ Social culture
- Social and employment practices that put more
value on academic background than on
competence
- The lowest participation of adults in lifelong
learning among OECD countries
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2. Mission, Vision, and Objectives of NHRD
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3. Policy Directions on NHRD
Policy Goal : Set the Supply and Demand of Manpower in
Korea, efficiently and properly - Therefore, Analysis of Mid
to Long-Term Projections for the Supply and Demand of
Manpower is very important(See the appendix for more
information)
- Ensure quality education at elementary, middle and high
schools to nurture
- Improve higher education so as to realize the goal of
"Knowledge Power"
- Establish lifelong vocational training that covers all sectors
of society
- Nurture talented people in national strategic areas so as to
promote sustainable growth
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- Identify and nurture talented lower-income
people as a way toward the integration of
society
- Nurture talented women and promote the
participation of women in society from a
strategic perspective
- Provide HRD tailored to regional needs
- Promote cultural awareness to promote
harmony within society
- Promote exchange programs and cooperation
as a means toward globalization Build an
infrastructure that enhances efficient HRD
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Ⅲ. The Contributions of Education to
Economic Growth
1. Education Contributions
Table 1. Relative Contribution to Growth in South Korea
Intercept
Contribution to Per
Capita Growth(%)
-0.70%
Total Predicted
Growth(%)
-19%
RGDP60
-0.40%
-11%
PRIM60
2.48%
67%
SEC60
0.71%
19%
GPOP6085
0.20%
5%
I6085
1.40%
38%
Actual Growth
5.89%
Predicted Growth
3.69%
(Percent Actual
Predicted)
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Growth
63%
Table 2. Accumulation: Contribution to Growth for Korea, 1965∼1989
Factors
Parameter
Estimate
BGDK
GER1
GER2
GER3
BGEMP
.0568
.0226
.3094
-.7253
.1478
BRD
-.0587
(Y/N)0
-.0496
Actual Growth
Predicted Growth
(Percent Actual Growth
Predicted)
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Korea
(%Total Contribution
Predicted to Per-capita
Growth)
1.59
(23.2)
2.31
(33.8)
9.59 (140.2)
-3.92
(-57.3)
.419
(6.10)
-2.50
-.645
(-36.5)
(-9.4)
7.54
6.84
(90.8)
Korea
(% Total
Contribution Predicted to
Per-capita Growth)
(after adjusting)
1.59
2.31
4.17
.30
.419
-.176
-.645
(23.2)
(33.8)
(65.4)
(4.7)
(6.6)
(-27.6)
(-10.1)
7.54
6.38
(84.6)
2. Results and Implications of Empirical
Estimations(1965-1989)
The results show that 65 percent of the total predicted
per-capita growth in Korea since 1965 is due to
expanded secondary school enrollments. Primary
education comes second with 36.2 percent, followed by
higher education, at 4.7 percent, while physical
investment contributes 24.9 percent and raw
unimproved labor contributes only 6.6 percent in Korea
● Second, the rationalization of the public sector's
investment in schooling and training requires the
examination of a broad array of labor market
imperfections and failures, private training capacity, and
structural changes involving strategic skills that require
long lead times for acquisition
●
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●
Key conclusions are that productivity of education is
of prime importance to per capita growth
●
The model also includes endogenous technological
change which together with human capital formation
leads to increasing returns to scale
●
These effects of education on per capita growth are
seen in three ways: (1)through the effects of
increased educational attainment as the labor force
increases its skills and hence its productivity, (2)
through the contribution of investment in higher
education to the conduct of R&D, and the training of
R&D personnel for firms as part of endogenous
technical change, and (3) through the ability to
transfer technology from more advanced countries,
as well as to learn and adapt these new technologies
while on the job
3. Comparison of Empirical Estimations
(1970-2004) and (1965-1989)
Factors
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Parameter Estimate
Korea(% Total Contribution Predicted to Per-capita
Growth)
(after adjusting)
1975~2004
1965~1989
1975~2004
1965~1989
BGDK
0.1248
0.0568
3.95(39.6)
1.59(24.9)
GER1
0.0061
0.0226
0.66(6.6)
2.31(36.2)
GER2
0.0818
0.3094
8.67(87.0)
4.17(65.4)
GER3
-0.239
-0.7253
-5.27(-52.9)
0.3(4.7)
BGEMP
-0.0616
0.1487
-0.14(-1.4)
0.419(6.6)
BRD
-0.3989
-0.0587
2.40(24.1)
-1.76(-27.6)
(Y/N)0
-0.0005
-0.0496
-0.30(-3.0)
-0.645(-10.1)
Actual Growth(A)
5.97
7.54
Predicted Growth(B)
9.97
6.38
(B/A)
(167.0)
(84.6)
4. Results and Implications of Empirical
Study(1970-2004)
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●
What is a new significant difference
between these 2 estimated results
●
Now estimates processing
IV. Current Situation and Direction
of Human Policy in South Korea
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1. Upgrading Human Resource Development
 Let's explore the current status of HRD in Korea and the
issues facing it by looking at three essential areas:
- First, development of human resources through
education and training
- Second, use and management of human resources
thus developed, their deployment in the labor market
and re-education and re-training
- Third, the infrastructure necessary for effective
development and deployment of human resources,
such as communication channels or other forms of
close linkage between the educational and labor
markets
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2. Traditional Vocational Education in Decline
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●
The government is also trying to find a
remedy to the problem of declining
performance among vocational high schools
in producing skilled personnel. This
phenomenon is not due to a drop in labor
demand from industry, but rather owes more
to a sharp decline in applicants
●
The shortage in qualified manpower in Korea
is generally a result of labor market
dysfunction, rather than a real lack in
educated personnel
3. Is Telecommuting the Future?
●
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Work-from-home jobs are now being
given serious consideration as a means
of tapping into a huge pool of potential
female labor. Also, demand is likely to
surge in this labor market segment in
areas such as computer and salesrelated work that are ideally suited to
telecommuting
4. The Need to Support Working Mothers
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●
The female participation rate in economic
activities stood at 49.7 percent in 2002, some
10 percent points lower than the OECD
average of 59.6 percent
●
Career interruptions are frequent among
women of childbearing age, especially those
aged between 25 and 29. Statistics show,
however, that more and more women of these
age groups are returning to work
5. Toward National Standards for Skills
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●
The Korean government is preparing to establish
national skill standards (Korea Skill Standards), to
create a basis for nationwide recognition of state or
private organization-issued qualifications
●
The new classification system will be conceived to be
consistent and cross-referenceable with academic
major and program classification systems, and job
training category classifications
●
To encourage partnership in HRD, the government is
working toward formulating organized guidelines for
industry sector or business associationled
partnerships for evaluating qualifications and
competency
6. Closely Linking Academic and The Workplace
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●
To promote closer collaboration between the
educational and labor markets, the government is
preparing the necessary infrastructure
●
No infrastructure for creation, use and diffusion of
knowledge can be complete or viable without a
quality management system for human resources. To
assist the construction of a human resource quality
management system, the government is evaluating
the performance of educational and training
institutions and their programs, in order to identify
their strengths and weaknesses and to design a more
efficient educational and training model
V. Korean Labor Takes a Global
Perspective
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- Korean workers are now armed or becoming armed with
necessary prerequisites for globalization. Their foreign
language proficiency has substantially improved, and
they are more creative
- International mobility in the labor market is rapidly rising
in Korea. Amidst a continuing inflow of cheaper foreign
workers, professional Korean workers migrate abroad in
growing numbers
● Major changes are occurring to the structure of labor
demand in the country
- Demand for innovative manpower is on the rise
- The growing importance of China and Northeast Asia as
an economic power is another factor making the outlook
bright for Korea's labor sector
- Koreans as a whole are favorably disposed toward
foreign investors and foreign corporations
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- Labor/management relations, after some hitches
and bumps, have now entered a stable phase.
Except for a handful of large corporations, at
most workplaces, labor and management have
successfully built highly cooperative relationships
and viable modes of interaction
- The country's industry/university cooperation
system, now at its mature stage, is effectively
fueling innovations
- Active efforts toward building industry clusters,
widely participated in by foreign firms, are
underway
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VI. A New Paradigm of Labor Supply
& Demand
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● Just as the mass production system has revealed its
limitations as a means to further the progress of an
industrialized society, conventional forms of human
resource development are now faced with the
necessity of fundamentally revising their supply and
demand structures
● Particular efforts are directed toward qualitative
improvement in high-tech labor, as these human
resources will lead the national enterprise to develop
new growth-engine industries, and in technical
manpower in the production segment at the forefront
of industry. No less important is the capacity for
efficient labor supply in a timely fashion where
needed. These measures are critical components of
Korea's effort to narrow the gap between itself and
more advanced industrialized nations
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● The
government, to back up its policy measures with
public support, is launching communications
campaigns to increase public interest in science and
technology, and is working to build a state-sponsored
system for developing human resources and
ensuring their effective distribution in the corporate
sector. To boost national competitiveness through
new high-tech growth industries and progress in
science and technology, the government is creating a
state-level resource to support universities in the
development and deployment of scientific and
technological personnel. The government's effort to
introduce greater flexibility in the HRD system in
science and technology has been in progress for
some time. Its initiatives to redesign the national HRD
system by eliminating existing inefficiencies and
updating obsolete areas to better meet the labor
demand in today's industry have already produced
concrete results
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VI. Conclusion
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South Korea
10.5%
University
6.4% University
19.3%
Sr. Sec
31.5% Sr.Sec
21.1% Jr.Sec
22%
Jr. Sec
36%
Primary
Illiterate
16.3%
1975
(GDP: 592$ )
36.8%
Primary
Illiterate
1985
(GDP: 2229$ )
19.4%
University
44.1%
Sec
24.6%
University
Sr.
44.4%
Sr. Sec
16.2%
Jr. Sec
14.3%
Jr. Sec
20.2%
Primary
1995
(GDP: 10823$ )
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16.7%
Primary
Illiterate
2001
(GDP: 8900$ )
Illiterate
Educational Structure of Indonesia’s Labor Force
6.4% University
South Korea
19.3%
Sr. Sec
22%
Jr. Sec
36%
Primary
Illiterate
16.3%
1975
(GDP: 592$)
16
.9% Acad./University
1.4% Acad./University
2.3% Acad./University
12
6.6% Sr.Sec.
8.9% Sr.Sec.
13% Sr.Sec.
9
6.2%Jr.Secs
8.1%Jr.Secs
10.1%Jr.Secs
6
4
32.7%
6 Yrs
33.2%
6 Yrs
33.7%
59.9% at Least
63.1% at Least
59.1% at Least
4 Yrs. Primary
4 Yrs. Primary
4 Yrs. Primary
6 Yrs
0
26.4%
1982
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Illiterate
18.5%
1986
Illiterate
15.3%
1989
Illiterate
Conclusion
The best way to successfully consolidate HRD policy
issues is to set up a "policy issue body" that will
outlive the current government or regime. Thereby, a
more consistency and continuity in the policy issue
management could be politically possible and
institutionally guaranteed, thus more successful
consolidation of policy issue could be generated.
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Thank you
Chang-Won Jang
E-mail : [email protected]