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6.20 But it is not clear that such schools are the most cost-effective way to meet skill training needs in developing countries. More focused and less costly training after secondary school, or as an alternative, would appear to be a better model in many cases. This issue is only partly addressed whetn the responsibility for vocational education and for vocational training are clearly differentiated. Additional thinking about the most appropriate role for secondary education vis a vis employment is urgently needed. Costly diversified high schools have largely been abandoned as a strategy because labor markzet outcomes have generally not justified the increased cost. At the same time, lower cost secondary curricula that do a better job of preparing students for further training are needed.

# Nonformal Training Centers

6.21 Nonformal training centers are designed for a training perspective. The evidence clearly indicates that these have been intended to address a broader range of objectives, with relatively high emphasis on upgrading worker skills. They have been more effective in establishing linkages with employers, especially in the areas of financing and labor market information. In the sample, only nonformal institutions developed training services for enterprises. By design, these are inherently better able to offer short courses based on occupational analysis, and to use part-time instructors from industry. If well managed, they have the demonstrated capacity for flexible response to changing labor markets.

6.22 Such centers have been established in middle income countries. In the low income countries, the evidence on enrollment attainment at completion and on component institutional performance indicates that they have been beset with the same implementation problems as vocational secondary schools. Indeed, the evidence suggests that secondary schools are somewhat easier to put in place than nonformal centers in such circumstances. This is seen in less variation in unit costs per place established across regions, and in slightly higher performance on implementation indicators. In low income countries, the potential for greater effectiveness of nonformal training has, so far, been confounded by the management challenges of a new and more complex institutional design. The relative cost-effectiveness of vocational secondary schools and nonformal training institutions in middle income countries in pre-employment training cannot be judged from World Bank project experience. The available data from Korea demonstrates that these modes can be equally cost-effective, but the Korean context is unique in the strength of the basic education system and the rapid growth of the industrial sector.

6.23 The costs of establishing nonformal training places have been about twice those of secondary places in low income countries. In lower-middle income countrie- secondary places have cost somewhat more. In upper-middle income countries nonformal places have cost nearly seven times those in secondary vocational schools. Nonformal places, of course, are used more frequently in a given time period than those in secondary schools. While data on the outputs of these systems