Tunisia - Fourth Education Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. 8 8 6 4 PROJECT PERFORMANCE AUDIT REPORT TUNISIA FOURTH EDUCATION PROJECT (LOAN 1961-TUN) JUNE 29, 1990 Operations Evaluation Department 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. ABBREVIATIONS AfDB African Development Bank CFT Chemin de Fer du Togo (Railway Company) EEC European Economic Community ERR Economic Rate of Return GDP Gross Domestic Product - GDT General Directorate of Transport IDA International Development Association km Kilometer MCT Ministry of Commerce and Transport m-m Man-months MPW Ministry of Public Works MRW Ministry of Rural Works ODA Official Development Assistance OED Operations Evaluation Department PCR Project Completion Report PPAM Project Performance Audit Memorandum PPAR Project Performance Audit Report RWD Rural Works Department SAL Structural Adjustment Loan SAR Staff Appraisal Report TA Technical Assistance TPCU Transport Planning and Coordination Unit vpd Vehicles per Day 170.1OFCA 15 F TME WO.D AN~ VLUNn% DC 2M UJA June.29, 19 BM3IMMerrM TO TEM ZZ=nmTM% DIRECIMQR AMD TIE PRESIENr1 SEL=zd-T romject Fer&MoDzo knätt lfog~t: Tun+=da - 10=:tå Educattem Pf~aet Eae~ L961-TM5 Ato~Am, far inforat=n fÅ a =Vgy af a ~epot enrltled "'Project ~uarEffi~ Arräm.t eart: Thailta - Irc=rtå Educatica Project ('L~r rfc-TUR" pr d by the qrtims Ews=tet Deparma. lfta uemmm hm a m=~ dhdk~ and m ö umd b tepunem y i te perfibnn=ce I 0f di n ^ aud d~ mkw n- ir offiue e a wiann WrldM n n~rnn FOR OFFICIAL USE ONLY PROJECT PERFORMANCE AUDIT REPORT TUNISIA FOURTH EDUCATION PROJECT (LOAN 1961-TUN) TABLE OF CONTENTS Page No. Preface ................ 0..................*.................... Basic Data ............. .. .......*........0..................... i Evaluation Summary ............ *........0....................... vii I. PROJECT BACKGROUND ................................. .... 1 Project Formulation .................................... 1 Project Content ......................... ........... 2 II. PROJECT IMPLEMENTATION ..................... ............ 3 III. PROJECT OUTCOMES ............................ ........... 4 Physical Achievements ....................... ......... 4 Internal Efficiency .. .................. ........ ....... 5 External Productivity ....... ...... .. ........ 5 Operational Costs ................. ........ ............ 6 IV. FINDINGS ........................* .....*............ 6 Project Design ................. * .................. * .... 6 Sustainability ..... . . .. 0................... 0.... 6 Replicability ..... ....... .......... ......... . ........ 7 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. PROJECT PERFORMANCE AUDIT REPORT TUNISIA FOURTH EDUCATION PROJECT (LOAN 1961-TUN) PREFACE This is a Project Performance Audit Report (PPAR) on the Tunisia Fourth Education Project, involving an IBRD Loan (Loan 1961-TUN) in the amount of US$26.0 million to the Government of Tunisia, with the objective of strengthening vocational training. The loan was approved on March 26, 1981, and became effective on November 18, 1981. US$5.0 million of the loan was cancelled in April 1986 at the request of the Borrower, and another US$1.8 million on October 13, 1989. The Closing Date of December 31, 1986 was extended to December 31, 1987 and ultimately to December 31, 1988. Final Disbursement was made on October 13, 1989. The PPAR is based on the Project Completion Report (PCR)1/ the Staff Appraisal and the President's Reports, the loan documents, the transcripts of the Executive Directors' meetings at which the project was considered, on a study of project files, and on discussions with Bank staff. An OED mission visited Tunisia in November 1989, and discussed the effectiveness of the Bank's assistance with the Ministry of Education, including several project institutions. Their kind cooperation and valuable assistance in the preparation of this report is gratefully acknowledged. The PPAR elaborates on particular aspects such as project outcomes and cooperation with industry, while the PCR provides a complete account and assessment of the project experience, and discusses the performances of the Bank and the project executing agencies. Following standard OED procedures, copies of the draft PPAR were sent to the Borrower and its agencies for comment in April 1990. No comments have been received. 1/ The PCR, jointly prepared by the Europe, Middle East and the North Africa Regional Office, was issued by OED as Report No. 8441 dated March 16, 1990. - iii - PROJECT PERFORMANCE AUDIT REPORT TUNISIA FOURTH EDUCATION PROJECT (LOAN 1961-TUN) BASIC DATA SHEET KEY PROJECT DATA Appraisal Item Estimate Actual Total Project Cost (US$ million) 47.0 26.0 Underrun (%) - 45 Loan Amount (US$ million) 26.0 26.0 Disbursed 26.0 19.2 Cancelled 6.8 Repaid (as of 05/31/90) 7.5 Outstanding (as of 05/31/90) 11.7 Date Physical Components Completed 06/86 06/89 No. of Months since Loan Signature 61 97 Proportion Completed by Above Date (Z) 50 100 - Proportion of Time Overrun (%) 59 Institutional Performance Satisfactory CUMULATIVE ESTIMATED AND ACTUAL DISBURSEMENT (in US$ million) Expected at as of Disbursement Year 1982 1983 1984 1985 1986 1987 1988 5115/89 Completion /a Appraisal Estimate .1 3.5 11.1 19.3 26.0 - - - Actual .1 1.9 3.2 4.4 7.3 11.0 - 15.0 18.0 Actual as % of Estimate 100% 54% 29% 23% -- -- -- -- -- Actual as % of revised . loan amount Ak - - - 35% 52% 63% 71% 86% . /a Scheduled for September 30, 1989. /b Loan amount reduced to $21 million in April 1986. - iv - A. Staff Inputs (Staffweeks) Stage of Project Cycle FY79 FY80 FY81 FY82 FY83 FY84 FY85 FY86 fY87 FY88 FY89 TOTAL To Appraisal Departure 43.9 15.3 18.3 77.5 Appraisal thorough Board Approval 13.7 51.5 65.2 Board Approval through Effectiveness 5.1 5.1 Supervision - 8.2 9 16.3 14.8 12.3 13.7 7.7 1.6 83.7 TOTAL 43.9 29.0 74.9 82 91 16 1 8 137 7.7 1.6 231.5 OTHER PROJECT DATA Original Item Plan Revisions Actual Identification - - 05/78 Project Brief - - 12/78 Preparation - - 01/79-05/80 Appraisal Mission - - 06/80 Negotiations - - 11/80 Board Approval - - 03/26/81 Loan Agreement Date 02/81 - 05/18/81 Effectiveness Date 07/81 - 11/18/81 Closing Date 12/31/86 12/31/87 12/31/88 Loan Disbursement Completion 06/30/87 - 10/13/89 Borrower Republic of Tunisia Executing Agency Vocational Training and Employment Office (OFPE) Follow-on Project: Education and Training Sector Loan (forthcoming) - V - ALLOCATION OF LOAN PROCEEDS (US$ Million) A. Project Costs (US $Million) Anpraisal Estimate Revised (a) Actual (b) Foreign Foreign Foreign Local Exchange Total Local Exchange Total Local Exchange Total Costs Costs Costs Coats Costs Costs Costs Costs Costs Construction 12.5 4.6 17.1 6.3 3.1 9.3 6.0 5.5 11.5 Equip. & Furn. 1.7 12.4 14.1 0.9 8.3 9.1 3.0 10.0 13.0 Professional Svcs 1.4 0.0 1.4 0.7 0.0 0.7 0.7 0.0 0.7 Experts' Svcs 0.2 1.0 1.2 0.1 0.7 0.8 0.2 0.5 0.7 Fellovships 0.0 0.1 0.1 0.0 0.1 0.1 0.0 0.1 0.1 Unallocated 5.2 7.9 13.1 2.1 7.9 10.0 Total IBRD 21.0 26.0 47.0 10.0 20.0 30.0 9.9 16.1 26.0 Notes: (a) revised as of 1986 when amendments to Loan Agreement were made. (b) projected at project completion, September 1989. Favorable evolution of the US dollar as opposed to currencies used for the project resulted in the actual total cost of the project and the foreign exchange part calculated in US dollars to be slightly more than half of the amount estimated at ar2raisal. B. Proiect Financins Loan Asreement Revised (a) Actual (b) % of % of % of 2 of % of %-of Category: U TOTAL US $ IBRD TOTAL US $ IBRD TOTAL 1. IBRD Construction 4.6 18% 7.0 33% 5.1 26? Equip. & Furn. 12.4 48% 11.0 52% 13.6 71% Experts' ava 1.0 4% 0.6 3% 0.6 3% Fellowships 0.1 0% 0.1 0% 0.0 0% Unallocated 7.9 30% 2.3 11% . 0% Total IBRD 26.0 100% 552 21.0 100% 70% 19.2 100% 69% 2. Government 21.0 45% 9.0 30% 6.8 31% TOTAL (1+2) 47.0 100% 30.0 100% 26.0 100% Notes: (a) US$5 million cancelled in April 1986. (b) US$1.8 million cancelled in October 1989. - vi - MISSION DATA Stage of No. of Days Specialization Types of Proi. Cycle MonthlYear Persons in Field Represented Problems Identification 5/78 1 10 EC to Appraisal 6/78 1 14 TE 11/78 3 14 EC,TE,AC 5/79 3 14 EC,TE,AC 9/79 1 10 TE 2/80 3 17 EC,GE,TE Appraisal 6/80 3 18 EC,TE,AC through Board 9/80 4 17 GE,TE,AE,AC Presentation Board Approval 2/81 2 8 GE,AC through Effect. 6/81 2 19 TE,GE Supervision 11/81 3 8 CH,GE,AC M.T. 4/82 4 8 CH,GE,TE,AC M.T. 9/82 3 12 GE,AC,EC M.T. 10/82 1 5 CH M.T. 2/83 2 7 CH,AC M.T. 5/83 3 1 TE,AC,EC M.T. 12/83 2 17 GE,AC M.T. 6/84 2 7 GE,AC M.T. 10/85 3 11 CH,TE,AC M.T. 6/86 1 7 AC M 10/86 1 7 AC M 2/87 2 8 AC,GE, M 10/87 2 11 AC,EC M 6/88 1 6 EC M 12/88 1 4 EC M Legend : CH - Chief or Deputy Chief of Division; EC - Economist/Operations Officer AC - Architect; AE - Agricultural Educator; TE - Technical Educator; GE - General Educator; T - technical problems M - management problems Note: Time in field in some cases includes work on other projects. - vil - PROJECT PERFORMANCE AUDIT REPORT TUNISIA FOURTH EDUCATION PROJECT (LOAN 1681-TUN) EVALUATION SUMMARY Introduction 1. A Loan of US$26 million in support of this project was approved in March 1981 and became effective in November of that year. Total project costs were estimated at US$47 million at appraisal; the foreign exchange component of US$26 million was to be covered by the Loan. Actual total c.-t came to US$26 million. Because of favorable rate-of-exchange develop- m# :s, US$5 million of Loan funds were cancelled in April 1986. At that time an Amendment to the Loan Agreement introduced minor changes in project composition. Project Objectives and Content 2. During the second half of the 1970s deteriorating conditions in the foreign labor markets which had until then provided employment for about 13 percent of Tunisia's labor force made the development of domestic employment opportunities and with it better training for young Tunisians, increasingly important. 3. A key role in this process of accelerated skill formation was to be played by Tunisia's Office of Vocational Training and Employment (OFPE). The Office was a semi-autonomous organization under the Ministry of Labor with numerous contacts to industry. Since its position gave it the twin advantages of flexibility and closeness to the industrial practice, it appeared as a logical choice for carrying out such a program. 4. The project aimed at increasing the supply of skilled technical manpower in line with regional skill needs. To this effect, 8 new training centers were to be established, 15 existing centers were to be expanded, and 5 were to be upgraded. Nearly 3,600 new training places were to be created. Implementation Experience 5. Since this was the first major project the Office had been implementing, it had not yet an occasion to acquire relevant experience with the various technical aspects of project implementation. Three specialists, who were expected to provide expertise in key areas were not recruited; this obliged the Project Unit fully to concentrate on questions of facilities development and equipment purchases, to the detriment of software aspects and longer-term developmental questions. - viti * 6. The project required two extensions of the Loan Closing date, from December 31, 1986 to December 31, 1988. Besides the amount of US$5 million which was cancelled at the time of the Loan Agreement amendment (see above), an undisbursed balance of about US$1.8 million was cancelled at accounts closing (October 1989). Results 7. The vocational training centers built or improved under the project are functioning well and benefit from diverse links with industry (recruitment of part-time instructors, period of industrial practice for trainees, collaboration in program development and trainee evaluation, and placement of trainees). The tracer system to be developed under the project is not yet operational. Information from individual training centers suggested that with the exception of some building trades (which suffer from the effects of the general economic slow down) and secretarial skills, most trainees seemed to find work within one year upon the comple- tion of their course. To sum up, Tunisia has now the basis for a system of modern industrial training institutions which will be able to meet present needs and which has the flexibility to evolve further in response to changing economic structures. Sustainability 8. Given adequate budgetary resources, the system should not experience difficultie,* in fulfilling its role of supplying the country with skilled industrial manpower. As facilities and equipment get older, greater attention will have to be given to adequate budget allocations for repair and maintenance. Findings 9. The history of this project confirms the paramount importance for any vocational training system of close and continuous links with industry. It also points to the advantage of a semi-autonomous status for the implementing agency which gives a greater degree of operational flexi- bility. Finally, it highlights again the importance of having more reli- able information on labor market developments in order to improve system planning. PROJECT PERFORMANCE AUDIT REPORT TUNISIA FOURTH EDUCATION PROJECT (LOAN 1961-TUN) I. PROJECT BACKGROUND Proiect Formulation 1.01 In the 1970s Tunisia's economic policies undervent a process of orientation towards export promotion and a greater emphasis on private iniciative. This in turn supported, together with favorable harvests and commodity prices, a period of real GDP growth at an average rate of 8 per- cent per annum during the years 1969-1979, nearly twice as high as in the preceding decade. During the later part of the 1970s, the set of economic policy objectives adopted in the 1977-81 Plan included (i) full employment of the additional labor force, (ii) self-sufficiency in major food stuffs, (iii) improved living standards, and (iv) a set of incomes and price poli- cies aiming at social stability. A component of this framework was the improvement of the quality of Tunisia's workforce and the creation of employment opportunities. 1.02 Foreign labor markets absorbed an important share of Tunisia's labor force during the early 1970s, with estimates on the order of 13 percent, but this percentage declined rapidly during the mid-1970s as economic conditions in the recipient countries began to worsen. This made the development of domestic job opportunities all the more important, and the better training of the young Tunisians was seen as an indispensable element in this process. 1.03 The Bank had shown a very early interest in the development of Tunisia's education system. As a matter of fact, Tunisia had been the beneficiary of the first education project assisted by the Bank anywhere: Credit 29-TUN of 1962 in the amount of US$5 million, had aimed at the expansion and improvement of secondary education, including a college for training lower secondary teachers. The follow-up project, supported by Credit 94-TUN of 1966 over US$13 million, continued this development by adding further new secondary schools as well as expansions to existing ones and equipping of others. Both projects were successful, and in the case of the second project favorable price developments permitted an increase in the scope of the investments. 1.04 The implementation history of the Third Education Project (assisted by Loan 1155-TUN of US$8.9 million in 1975) proved to be less smooth. The project's objective was to increase the relevance of primary - 2 - education by introducing practical work components in the last two grades, together with matching investments in teacher training. Shortly after effectiveness, the Government undertook a reappraisal of its educational priorities and came to the conclusion that the project did not reflect any. longer its concepts and objectives. This led to a protracted Government- Bank discussion with the eventual result of reformulation of the this project in early 1979.1/ 1.05 While this lengthy dialogue was proceeding, the Bank was very hesitant about embarking on a new project in the education sector proper (i.e., with the Ministry of Education), but at the same time it wanted to preserve what it perceived as excellent country relations and to demon- strate the importance it attached to human resources dev-lopment. The country's system of vocational training was seen by both the Government and the Bank as a key contributor to the process of upgrading Tunisia's labor force, and the existing training system had a number of features which were seen as clear advantages in linking the process of skill formation with subsequent skill utilization: the agency that was to be responsible for project implementation, the Office of Vocational Training and Employment (OFPE),2/ or "Office," as it is usually called (and will be for the sake of brevity in the remainder of this report), was under the umbrella of the Ministry of Labor and Social Affairs, i.e., a Government entity with a variety of links to the country's enterprises. At the same time the Office had a measure of autonomy which gave it a great deal of flexibility, particularly in the field of staffing, where it could use part-time experi- enced staff from industry and respond more easily to fluctuations in the demand for certain types of training than the formal education system could. Furthermore, by focussing on out-of-school youth and giving its training an unequivocally terminal character, it attracted trainees whose aim it was to acquire marketable trade skills. This tendency was rein- forced by aptitude tests as part of the admission procedures for vocational training. Proiect Content 1.06 Originally, three types of investment were envisaged under the project: (i) the new construction, expansion or equipping of vocational training centers which offered courses of varying duration to out-of-school youth as preservice training. The most frequent duration of courses was 1/ The project was completed in 1984 and was later judged a success (OED Report No. 5740, paras. 26 and 31). / Or, as it was called at the time of appraisal, the Office of Emigrant Tunisian Workers, of Employment and Vocational Training (OTTEEPP - Office des Travailleurs Tunisiens i l'Etranger, de l'Emploi et de la Formation Professionnelle); then as now, the short name "Office" was in general use. - 3 - either one year (skilled workers levels) or two years (technician level), but in addition a number of shorter courses existed; (ii) apprentice train- * ing of somewhat younger trainees already in a job (in-s rvice training); this instruction took the form of block-release trainin,,, usually over a period of two years; (iii) mobile training units to complement the work of the Office in remote rural areas. 1.07 Scrutiny of these initial ideas led to an elimination, on cost grounds, of the last item, and to a curtailment of the becond, because of uncertainties regarding the extent of apprentice training needs, the best vehicle for it, the availability of the necessary instructors and of ques- tions related to trade testing. 1.08 The project emerging from this review process, as appraised and presented to the Board in 1981, consisted of the following components: (i) the establishment (civil works, furniture and equipment of seven vocational training centers and one apprentice center); (ii) the expansion (civil works, furniture and equipment) of thirteen existing vocational training centers and two apprentice centers; (iii) additional equipment for four vocational training centers and one apprentice center; and (iv) related technical assistance (specialist services and fellowships). 1.09 The expanded system was expected to need 155 new instructors. These were to be recruited from the ranks of experienced craftsmen and technicians. It was realized that the success of the recruitment drive would depend largely on the offering of attractive working conditions and salary levels competitive with those in industry. the new recruits were to receive six-month training at the Office's instructor training center in the Tunis metropolitan area ((Rad4s). The trainee instructors were to receive an adequate stipend during that period. 1.10 Total project costs including contingencies amounted to US$47 million, with a foreign exchange component to be financed by the proposed Bank Loan of US$26 million. II. PROJECT IMPLEMENTATION 2.01 Initial delays in project implementation resulted from divergent views on space standards (PCR, para. 11) which in turn slowed down the necessary architectural work and, in turn, the start of construction. In addition, the fact that this was OFPE's first major project also meant that there was only limited relevant experience in the PIU (which furthermore did not receive the complement of specialists--a coordinator, a procurement expert and a civil works specialist--foreseen at appraisal). As the PCR also points out (PCR, para. 11), this also led to an enforced concentration on facilities and equipment, at the expense of the software aspects of the projects particularly the effective use of the technical assistance under the project. 2.02 An amendment of the Loan Agreement in April 1986 deleted the apprentice center from the project and shifted part of the funds thus saved to the further upgrading and expansion of three vocational training centers and the inclusion of two additional ones. In addition, two mobile training units (for truck driver and repair/maintenance training) were added, thus reintroducing one of the original elements of the project proposal (para. 1.06 and PCR, para. 12). An increase in the disbursement percentage for civil works (from 26 to 50%) facilitated the execution of the civil works program. Furthermore, part of the Loan (US$5 million, or nearly 20 percent) was cancelled. 2.03 The Loan required two extensions of the Closing Date totalling two years, to December 31, 1988. After the cancellation of a remainder of about US$1.8 million, the accounts were closed in October 1989. III. PROJECT OUTCOMES Physical Achievements 3.01 The project has helped establish the basis for a modern vocational training system consisting of some 70 vocational training centers (includ- ing three apprentice centers), the direct contribution of the project being the addition or improvement of more than 3,000 training places. In the CRIP (Pedagogical Resource and Engineering Center) the Office has a research and development institution which, in close contact with industry, can shape the scope and composition of training programs in response to developing trends in the industry. 3.02 The size of the system and its spatial distribution is such that practically all population centers of any importance host a training center. In addition, the availability of boarding places (about 4,000 in the entire system) provides a greater regional spread of training opportunities. 3.03 In the centers visited, the facilities made a well-kept, orderly impression. Discussions with the direction and staff of the centers suggested a general satisfaction with their facilities, a few cases of as yet incomplete construction and equipping notwithstanding. Most staff had - 5 - a few pertinent suggestions as to how their programs could be complemented by the addition of one or more sections to reflect effective demand by industry in their catchment area. (This does not imply a criticism of the project design as labor market demands are continually evolving, and the addition or deletion of training courses should be seen as part of the normal life-cycle of a vocational training center). In one case a director proposed the creation of the post of "surveillant," or a resident instruc- tor who would assure a modicum of supervision of the boarders outside the hours of instruction--a suggestion worthwhile pursuing. Internal Efficiency 3.04 The screening of the trainees and the quality of the training process appears to ensure satisfactory levels of internal efficiency: in the centers visited, dropouts were usually well below 10 percent, and success rate in the final test, for the system as a whole, is on the order of 90 percent. In 1988 almost 89 percent of the training places were in sue, despite the sluggish performance of the country's construction sector which has led to a waning interest of trainees in some of the building trades. The Office, thanks to its abovementioned flexibility (para. 1.05), has managed to respond to 'his development by consolidating several construction sections in adjoining centers, thus avoiding continued recurrent expenditures that would be, at least for the time being, misdirected. External Productivity 3.05 The evolving links with industry offer the centers a number of distinct advantages: first, it gives them access to a pool of potential instructors well versed in the most recent production methods; second, it offers trainees opportunities for industrial practice during the 1-1/2 month break in their training; third, through the presence of at least two industry representatives on the evaluation panel at the end of the training period and a sharing of the costs involved in the practical part of the exam it provides a constant feedback from the industrial practice; fourth, it makes possible occasional support (mostly in kind) for the operation of the training centers; last, and certainly not least, the connections with industry facilitate the absorption of the trainees in the labor market. 3.06 This leads to the question of follow-up of trainees: the project foresaw the establishment of a tracer system, and the Office has indeed been trying to develop this planning tool, but so far, due to a low res- ponse rate of ex-trainees, with only limited success. The Office is now in the process of testing survey instruments in one urban area and for one occupation (secretaries). In the longer run the link with the country's employment exchanges (which are under the same organization) should facili- tate the development of more regular and reliable information on the employment of former trainees. - 6 - 3.07 Individual training centers contacted had some information on the initial destination of their trainees.3/ With the exception of building trades (where employment ratios were estimated at an initial 50 percent) and clerical occupations, moat ex-trainees appeared to find a job within 6- 12 months after leaving the center. The example of the Electronics Center in Sousse whose graduates have almost without exception found employment, at short notice, cannot be considered typical as this Center is an exem- plary training facility (strictly speaking a post-secondary institution in all but name) in a rapidly evolving special labor market. Overall, there can be little doubt that vocational training gives its recipients a dis- tinct advantage in the labor market, the present unsatisfactory economic situation in Tunisia notwithstanding. Operational Costs 3.08 From a review of budgets for individual centers it appears that budget lines for maintenance, replacement and repair are at present little more than nominal (averaging less than 10 percent of the non-salary recur- rent budget). This is hardly surprising, given the relative newness of facilities and equipment. However, it would be worthwhile for the Office further to develop a system of "preventive maintenance" to contain future budget requirements for repair and replacement. IV. FINDINGS Project Design 4.01 The institutional compactness of this project proved to be a distinct advantage: combined with the relative ease of communications in Tunisia, it facilitated subsequent project management. The evolving links to industry are of obvious help in the continuous adjustment of the system to changes in the economy, in the maintenance of relevance, and in the placement of former trainees. Sustainability 4.02 Given adequate budget resources and the strengthening of linkages with industry to ensure the system's relevance, its sustainability does not raise doubts, particularly in view of its inherent ability to adjust to changes in the country's economic and labor market structures. The plan of the Office to give its vocational training system in the future a stronger sectoral orientation (i.e., focussing centers on certain industries such as 1/ This is facilitated by the requirement that in order to receive their diplomas, former trainees have to prove a subsequent period of employment of no less than six months. - 7 - textiles, food processing, electronics, etc., instead of the present polyvalent character) appears only logical as these industries increase in technical complexity. Replicability 4.03 It seems that the present vocational training system is, in the context of Tunisia's economy, of adequate size and diversity, and incre- mental requirements are being taken care of through a process of continuous minor adjustments. Future investment activities could profitably address the issues of apprentice training and the entire system of trade testing and its development (which were initially envisaged to be included in this project but were wisely left out) and beyond that, a dovetailing and coordination of the three major modes of skill acquisition, viz., formal technical education, vocational training and apprenticeship.