OPEC Fund Annual Report 2023

03 | THE RESULTS – DELIVERY BY SECTORS

RECASTING EDUCATION IN CHINA

Manufacturing has long been the lifeblood of the Chinese economy, but as the population ages and the workforce shrinks, demand for trained professionals may soon outpace supply. In 2023, the OPEC Fund provided US$104 million to education sector activities in partner countries worldwide.

China’s working-age population shrank by around 3 percent during the last decade and now accounts for less than two-thirds of the country’s 1.4 billion people. By 2030 that share is expected to drop much further — to 57 percent — according to the Ministry of Human Resources and Social Security. Facing a shortfall of workers with the right blend of skills, the People’s Republic of China has built up the largest vocational education system in the world, with more than 11,500 institutions and over 28 million students, according to the Ministry of Education. However, still more skilled workers are needed to maintain current levels of growth and productivity. Under its ambitious Education Modernization 2035 Plan, China aims “to shift from capacity to quality” and to develop a more highly skilled workforce that aligns with the country’s socio-economic needs. In parallel, the government is raising the status of vocational education vis-à-vis academic degrees: re- forming the entire framework including occupational standards, assessments and evaluations, teacher training and recruitment, and industry engagement. To support this endeavor, the OPEC Fund signed a US$50 million loan in May 2023 to promote the Shijiazhuang Vocational Education Project in Hebei Province. Centered around the longstanding Institute of Railway Technology, the project will form a major hub in the vocational education system, deliv- ering market-oriented training and lifelong learning to tens of thousands of young job seekers and skilled workers every year.

SARAH BOUGARA OPEC Fund Country Manager

In the education sector, partnerships serve as the cornerstone of progress. The col- laboration between the OPEC Fund and China, exemplified by our transformative vocational education project, underscores the profound impact that innovation and shared commitment can have on devel- opment. Together, we are carving out opportunities for 13,000 young job seek- ers annually, empowering them with mar- ket-oriented skills. Moreover, our vision extends beyond borders, as we strive to equip 22,000 professionals annually with the latest knowledge, fostering a dynamic workforce for local and global enterprises. This partnership stands as a testament to the belief that in education collaboration breeds innovation and innovation propels development.

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