A key pre-requisite for achieving the Sustainable Development Goals is accessible and inclusive quality education (SDG 4). Research has shown that investments in human capital —by the public sector, by firms and by households— have a significant impact on economic performance as well as individual and social wellbeing.
The role of technical and vocation education and training (TVET) in this process is key, especially as the global and regional economy undergoes significant changes. The world of work is evolving rapidly, as productive structures adapt to the shifts induced by the emergence of new technologies and new business models. Skills in this environment tend to depreciate quickly and therefore must be continually updated.
The focus of this paper is therefore to review initial financing for education and TVET in Latin America and the Caribbean, which is defined as those resources that derive directly from governments, households and firms, with the aim to support the formulation of a TVET financing framework for the region.