German Ambassador speaks at FICCI's Global Skills Summit

Sep 6, 2012

 

Dear President Kanoria,
Hon’ble Minister Sibal,
Hon’ble Shri Ramadorai,
Distinguished panelists and friends,

 

It's an honour for me to be invited to this important summit on Vocational Education & Training, the 5th Global Skills Summit.

 

Germany has been a long-standing partner for India in Vocational Education & Training, and FICCI is one of the Indian lead - institutions when it comes to fostering the improvement of Vocational Training in India. Please allow me, to share some of my thoughts with you, because we are talking about a key to the future. For Germany and for India.

 

India has the advantage of a young workforce and an enormous potential to become the country with the largest number of qualified young people, carrying the Indian economy to a prosperous future.

 

Germany is an ageing society that needs skilled workers – as do many of our European partners. Young qualified Indians could cater to this specific need.

 

This is also the assessment of the Government of India.

 

If India successfully powers its demographic potential, it will enjoy its demographic dividend. If it fails, it could face a demographic disaster. A well-designed ecosystem for Vocational Training is a precondition for social and communal harmony.

 

Quantity matters, but, it's about quality too. Yes, hundreds of millions need training. But only if also high-quality standards are met, you will achieve the goal of an inclusive, prosperous and globally competitive India.

 

Last weekend, I returned from the annual conference of all German Ambassadors in the Foreign Office in Berlin. One of the highlights was the traditional "Business Forum" with more than 1,000 companies. Mr. Westerwelle, the German Foreign Minister, and Mr. Anshu Jain, the Co-Head of the "Deutsche Bank", stressed the strong export orientation of the German economy.

 

The German economy is - despite the European Union debit crises - in a good shape. One of the secrets for this lies in the highly skilled workforce in Germany How did we get there?

 

I think, it's due to

 

• the level of social appreciation a skilled worker in Germany enjoys. A blue collar is not a stigma,
• the efforts put into Vocational Education and Training by the industry itself.

 

It is due to our so called "dual system of Vocational Education and Training".

 

Yes, we have also some experience in Vocational training in the classroom only. But to be frank: Our foremost expertise lies in the two inter-twinned venues of learning: school and shop-floor. The most crucial point is: The industry itself takes the main responsibility for Vocational Training. It is in the driver-seat for the whole process:

 

• The industry designs the standards and curricula according to its changing needs, it constantly develops and re-develops National Occupation Standards.
• The industry conducts the main part of the training and education on the shop-floors of its companies – followed by additional instruction within state-run Vocational Schools.
• The industry even pays a small apprenticeship-salary to its apprentices.
  The chambers of commerce monitor the whole system. The chambers run the exams und issue the certificates, officially recognized all over Germany.
• And the whole process is framed and enforced by the "Vocational Education and Training Act".

 

It is a triple-win:

 

• First for the learners: They enjoy a high-quality Vocational Training - and also young people from non-affluent families can afford it: it is inclusive, it provides employability.
• The industry invests in training – and gets a return on investment: 80 per cent of the costs of the apprenticeship are returned, as the apprentices become more and more productive while trained on the shop-floor. And the industry gets well educated and trained workers, exactly what it needs.
• The government is also happy: it pays only for the additional part-time Vocational Schools, one or two days a week. And - the bureaucrats in the room might like it - the government cannot be blamed for a poor Vocational Training, as the industry itself runs the main part of the training.

 

I don't want to sound didacticly, but this is - in short - one of the secrets of the economic success of Germany.

 

What is in it for India?

 

India is a subcontinent, with thriving urban centres, but also very remote areas without industry, without facilities to run a full-fledged dual mode Vocational Training. Surely, the German dual system cannot be simply transferred to India one to one.

 

However, you could take elements from it. For good reasons FICCI encourages the industry, its members, to become an active and decisive part of a high-quality dual mode Vocational Training. Your member companies could open their shop-floors for Vocational Training in a systematic way. And create the high-quality core of an improved and thereby more effective setting of Vocational Training.

 

Therefore I would like to expressly applaud FICCI for its initiative to organise the group "CEOs 4 Skills Development".

 

Germany is deeply interested in India's success. We are deeply interested, that India as our strategic partner prospers and becomes a competitive economy, worldwide – due to a well qualified workforce!

 

We would be happy, if well trained, skilled workers from India could come to Germany for a while or longer. Due to demographic reasons also Germany is facing a lack of experts. A fact, that will increase further in the years to come.

 

Ladies and Gentlemen, we are always good at talking and generating more or less good ideas. In Germany we have a say: "Es gibt nichts Gutes, außer man tut es" - free translation: Deeds, not words!

 

Let's get started. Germany is ready to do it. Yesterday we agreed to start the training of a first batch of 20 Master Trainers, beginning next month, 15th October.

 

I wish the 5th Global Skills Summit all the success.