Synthesis Documents

Using Vouchers to Develop Training Markets: 7 programs compared - Addis, Botehlo, Goldmark, 2001

    Description
    DAI evaluated the performance of ongoing Swisscontact voucher training programs in 7 countries, recommended designs for new programs, and provided a framework which Swisscontact could use to systematize learning about the demand-led approach to developing BDS markets. The paper outlines major issues of voucher program design, implementation, and monitoring and provides information on key players, procedures, challenges, and solutions.

    The presentations compare the Swisscontact voucher programs, offering general information on the use of vouchers; program regulations; subsidy levels; performance monitoring and measurement; lessons, challenges, and trade-offs; and what to expect when a voucher program ends.

    Summary of results
    Voucher programs are very complex and require an in-depth understanding of user needs (must know them to devise realistic objectives); information services for users; development of the supply market; and training and TA for suppliers. They also need to balance the allocation of scarce resources between subsidies and market development.

    The research revealed that supplier distribution of vouchers increased their use and that small programs were better able to set realistic objectives. The study also found that formal sector programs understood demand better and the challenge here is to learn how to transfer the techniques these programs use to the microentprise programs.

     
    Associated Activities and Documents
    Market Assessment
    »DAI Brasil, Assessing the market for training vouchers in Cape Verde, 2001
    Implementation
    »Market development lessons from vouchers, by Lara Goldmark, 2003
    Final Documentation
    »The Swisscontact experience with Business Centres in Indonesia and the Philippines, 1999
    »Paraguay vouchers revisited: Strategies for the Development of Training Markets, 2000
    »Business Centres and Vouchers in Indonesia, Swisscontact 2002