Alternatives in Vocational Education Finance: An Example of Participation by Employers in Brazil. Training Discussion Paper No. 69.

At the end of the 1960s, the industrial park of Montes Claros, Brazil, was established. Until then the economy of the municipality had been based on cotton, beef cattle, and subsistence farming. The main obstacle to industrialization was the lack of a qualified local labor force. Trapped between the costs associated with workers recruited elsewhere and the deficiencies of workers recruited locally, firms in Montes Claros sought a number of alternatives. When the traditional training alternatives failed, a group of local business owners, the Commercial and Industrial Association, obtained contributions from 15 firms to establish the Educational Foundation of Montes Claros (FEMC). The school began by offering short courses in areas of urgent need. At the end of 1989, the Technical School, the core activity of the FEMC, enrolled 2,419 students in middle and secondary school, afternoon classes for adolescents, and night classes for students aged 14 to 40 who work during the day. The FEMC offers short courses, ranging in length from 4 to 120 class hours, and offers the direct sale of services. Income comes from student fees, scholarships, contributions of local firms, and sale of services. The effort represents a novel and successful approach to vocational school finance, in which costs are divided between employers and students, with only minimal contributions from public funds. (12 references) (YLB)