Apprenticeship training in England: a cost-effective model for firms?

In England, the government plans to incentivise spending of billions of pounds over the next few years promoting apprenticeships, with most of the finance raised from the apprenticeship levy on employers. Promoting more apprenticeships is designed to improve England’s skill base – a government policy priority given the relatively low level of skills and educational qualifications amongst a large part of the country’s workforce. But does such a policy make sense in an English context, with a historically limited participation of many employers in work related formal training? Is additional spending on apprenticeships likely to lead to positive economic returns for employers, workers and for England itself? And how varied are the net economic returns by employer and by sector? What works for one category of employment may not bring positive gains where returns to training are much lower. To answer these questions the JPMorgan Chase Foundation, the Education Policy Institute and the Bertelsmann Stiftung have come together and partnered with the internationally acknowledged economist Prof. Dr. Stefan C. Wolter to explore the costs and benefits of apprenticeship training for companies in England. This report by Prof. Dr. Stefan C. Wolter and Eva Joho brings a much needed degree of rigour and quantification to a policy area which is too often characterised by assumption, hunch, and international experience which may not apply in a very different country context. The authors have used evidence from Germany, Switzerland and Austria to simulate the costs and benefits of an apprenticeship policy applied in an English context. They are aware of the limitations of this approach - not least given the different tradition of employer engagement in England - but the analysis in this report is important and could help guide employer and government policies in directions that maximise economic returns and limit low return scenarios. In particular, the return by occupations is shown to be highly varied based on the return and cost characteristics of each sector. The returns by employer within each sector also vary markedly. The key conclusions the authors have derived in the report could help steer English policymakers and employers in more evidence based directions, which should help ensure that England’s large investment in this area is properly informed by evidence and more likely to yield positive returns. In addition, the present study complements studies with a similar methodology in Spain (2016) and Italy (to be published 2018), which will enable learnings for successful implementation of apprenticeship models across countries

Economic evaluation of the eradication program for bovine viral diarrhea in the Swiss dairy sector

The aim of this study was to conduct an economic evaluation of the BVD eradication program in the Swiss dairy sector. The situation before the start of the program (herd-level prevalence: 20%) served as a baseline scenario. Production models for three dairy farm types were used to estimate gross margins as well as net production losses and expenditures caused by BVD. The total economic benefit was estimated as the difference in disease costs between the baseline scenario and the implemented eradication program and was compared to the total eradication costs in a benefit-cost analysis. Data on the impact of BVD virus (BVDV) infection on animal health, fertility and production parameters were obtained empirically in a retrospective epidemiological case-control study in Swiss dairy herds and complemented by literature. Economic and additional production parameters were based on benchmarking data and published agricultural statistics. The eradication costs comprised the cumulative expenses for sampling and diagnostics. The economic model consisted of a stochastic simulation in @Risk for Excel with 20,000 iterations and was conducted for a time period of 14 years (2008–2021)

Niche Markets and Their Lessons

Markets are full of nooks and crannies. Out of the glare of the big economies and their public exchanges, markets specializing by financial product, activity, or industry thrive, often attracting little by way of formal regulatory oversight. But there is another kind of specialized market, one which is geographically and politically determined albeit internationally focused. Luxembourg, Ireland, Dubai, Bahrain, Malaysia, Singapore, Switzerland, among others, these are some of the world’s niche markets.It is a hard business being a niche market, operating in a competitive and often unforgiving environment, engaging in constant repositioning and facing inherent limitations on growth. Surprisingly, perhaps, there are lots of niche markets and a very diverse grouping they are, deploying a variety of survival strategies. In all cases, state capitalism, in various guises, supports these markets. In earlier times, reputation, a friendly regulator, and good business practices might have sufficed. Now, there is a new dynamic. This chapter in a new book, International Capital Markets: Law and Institutions (Oxford University Press, 2014), examines the characteristics of niche markets, such as a high tolerance for legal pluralism and the role of state capitalism, the vulnerabilities of niche markets, especially to change, and the secrets of their success

The Swiss multi-pillar pension system : triumph of common sense?

The authors provide a detailed study of the Swiss pension system, analyzing its strengths and weaknesses. The unfunded public pillar is highly redistributive. It has near universal coverage, a low dispersion of benefits (the maximum public pension is twice the minimum), and no ceiling on contributions. Low-income pensioners receive means-tested supplementary benefits. Payroll taxes are low, but government transfers cover 27 percent of total benefits. Total benefits amount to 9.1 percent of GDP, equivalent to 15.2 percent of covered earnings. The funded private pillar was made compulsory in a defensive move against the relentless expansion of the public pillar. The compulsory pillar stipulates minimum benefits in the form of age-related credits, a minimum interest rate on accumulated credits, and a minimum annuity conversion factor, aimed to smooth changes in interest rates over time. Low-income workers are not required to participate in the second pillar. The first and second pillars as well as supplementary benefits are admirably integrated. Company pension plans are free to set terms and conditions in excess of these minimums, and most offer benefits exceeding obligatory levels. The second pillar has accumulated large financial resources, equivalent to 125 percent of GDP. Investment returns have historically been low, but a shift in asset allocation in favor of equities and international assets has increased reported returns in recent years. The third (voluntary) pillar covers self-employed workers and others not covered by the second pillar. It plays a rather small role in the system. Many of the positive features of the Swiss pension system are not due to some grand original design but are instead the result of periodic revisions. In large part they reflect the collective common sense of the Swiss people in voting for stable and fiscally prudent social benefits. However, the Swiss system also has some weaknesses. As in many other countries, the public pillar faces a deteriorating system dependency ratio, due to demographic aging and a large increase in disability pensions. The second pillar is fragmented (more than 4000 funds with affiliates), lacks transparency, and has achieved low investment returns.Payment Systems&Infrastructure,Public Health Promotion,Economic Theory&Research,Pensions&Retirement Systems,International Terrorism&Counterterrorism,Environmental Economics&Policies,Non Bank Financial Institutions,Pensions&Retirement Systems,Economic Theory&Research,Banks&Banking Reform

Reinventing Sustainable Use: Local Management of Natural Resources in Southwest Niger

The cost of doing nothing is, quite clearly, bad business. The Sunken Billions, published in 2008 and written by the United Nations Food and Agriculture Organization and the World Bank, demonstrated the difference between what is made and what could be made if fisheries were better managed is conservatively estimated to be $50 billion per year. Clearly, fisheries are a dramatically underperforming asset. WWF's Living Planet Report 2012 estimated that continuing "Business as Usual" will require two planets by 2030 to meet our annual demands. A key challenge in moving the world economy to a sustainable path, however, is finding ways to achieve sustainability that are socially, economically, and politically viable -- a problem that is particularly acute in marine fisheries. This 2012 fact sheet from WWF, provides information regarding WWF's Financial Institution or the Recovery of Marine Ecosystems (FIRME) initiative which employs an investment model that finances conservation without adversely impacting livelihoods

The Impact of Legislature and Citizens on the Budgeting Process in Switzerland: Lessons for Central and Eastern Europe

Scholars evaluating national and local budget procedures in Central and Eastern Europe generally advocate a greater role for legislative bodies and citizens. Mature federations and decentralised countries in Western Europe are often cited as prime examples of participatory budgeting which is supposed to lead to greater fiscal discipline, a better allocation of public resources and higher administrative efficiency. This paper investigates the strengths and weaknesses of legislative activism in Switzerland, with special regard to its ability to answer the double challenge resulting from a push for new expenditures and lower taxes, on one side, and an attempt to maintain deficit levels close to zero, on the other. While the strong consensus orientation, the careful regulation of revenue and expenditure assignment, as well as the systematic use of voters' right to direct participation are perceived as key to the success of the Swiss democracy, this study also highlights how these features can limit the effective influence of the parliament on budgeting and planning. Central and East European countries may learn several lessons from the Swiss case, all of which are rather thought to add an input to long-term reforms rather than provide immediate solutions. The analysis points out some serious limitations of the hierarchical budgeting model as well as the consequences of a haphazard and opaque expenditure and revenue assignment. It reminds, however, that the dynamic process of post-socialist transition requires governments and parliaments to preserve a great deal of flexibility in the budget procedure. At the same time, new methods of public management and a greater transparency of public budgets are examples of tools that may be introduced on the medium term without the risk of slowing down the transition process.parliament; legislative; budgetary procedure; direct democracy; intergovernmental fiscal relations; public administration; transition economies; Switzerland

Production of Innovations within Farmer–Researcher Associations Applying Transdisciplinary Research Principles

Small-scale farmers in sub-Saharan West Africa depend heavily on local resources and local knowledge. Science-based knowledge is likely to aid decision-making in complex situations. In this presentation, we highlight a FiBL-coordinated research partnership between three national producer organisations and national agriculture research bodies in Mali, Burkina Faso, and Benin. The partnership seeks to compare conventional, GMObased, and organic cotton systems as regards food security and climate change

Integration and segmentation in European investment services markets: assessing the implications for international real estate investment

This paper analyses developments in the growth and configuration of the institutional savings markets within the European Union. The paper discusses the changing socio-economic context in which investment services within the EU are being delivered. The is followed by an examination of drivers of market integration such as the growth and consolidation of the fund management industry, the demographic and fiscal pressures for reform of pensions markets and the process and effects of the deregulation of investment services markets. There is a review of outstanding sources of market segmentation. The projections for future growth in pensions are outlined and implications for real estate investment assessed. It is concluded that, although numerous imponderables render reliable quantitative projections problematic, growth and restructuring of the institutional savings market is likely to increase cross-border capital flows to real estate markets