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The Czech republic: A country report


Conclusions
Appendix 1.1 - Organisations/institutions consulted
Appendix 1.2 - Sources and references

Report on visit to Brno 7 - 9 September and Prague 26 September - 1 October 1994

1.0 BACKGROUND INFORMATION

1.1 Population

The Czech Republic is a small country of 78.8 thousand sq. km. with a fairly equal population distribution amongst the regions. Its population stood at 10.3 million on 31 December 1993 with a low population growth rate (the average annual rate between 1950-1990 was 0.6%).

Composition of the population: 95% Czech, circa 3% Slovak, 0.5% Polish, 0.4% German.

Major cities: Prague (1.3 million), Brno (400,000), Ostrava (330,000) Pilsen (1 75,000).

The Czech Republic is primarily industrial. In 1990, circa 10% of the working population were employed in the agricultural sector, 46% in industry and 44% in the tertiary sphere.

1.2 Political stability

The Czech Republic is governed by a centre-right coalition government centred around the Civic Democratic party headed by Václav Klaus, the current Prime Minister. He is very much in control of the Parliament and the opposition parties are not posing any strong challenge. It looks very much as if the government will remain in power for the foreseeable future.

2.0 ECONOMIC BACKGROUND

2.1 Economic stability

In the eyes of many, the Czech Republic, Hungary and Poland are becoming Europe's version of the so-called 'tiger economies' of Asia. The Czech Republic stands out among the Central and Eastern European countries for its political stability, low inflation (the 12 month inflation rate in March 1994 was 9.4%) and low unemployment (3.4% in April 1994). The Czechs have the region's fastest falling inflation and have been running a balanced budget for several years. Prague currently stands 16th on the Financial Times' ladder of European cities with favourable business opportunities due to its stability and its population who are perceived as hard-working, educated, skilled and capable of manufacturing high quality products for considerably lower wages than those of their Austrian and German neighbours. (2) One informant did however point out that in his company the labour costs per unit product were higher in the Czech Republic than in the UK due to low productivity: the wages are one third of those in the UK, but productivity is only 10% in comparison. The company's solution is to move towards performance-linked wages.

The budget balance stands at 0.1% of GDP while the foreign exchange reserves have almost trebled The government aims to make the crown (koruna) the region's first fully convertible currency. (3)

The Czech Republic is seen as adapting well to Western economies and within the region as constituting the smallest risk for investors. The top foreign investors are in order of importance: Germany, the US, France. The main areas for foreign investment are:

1. Transport
2. Construction
3. Food
4. Banking (4)

British investment in the Czech economy is as yet relatively low. Interest in investment in the near future has however been expressed by such companies as Midland Electric, British Steel and British Gas. (1)

The Bankruptcy Law was introduced in April 1993. It is expected in the long term that significant re-structuring of the old state-owned industrial sector will follow as a result. It is also likely that this law will cause unemployment to grow.

2.2 Gross domestic product

In 1993 the nominal GDP was estimated at U5$9.5 billion with a real growth rate of -0.3%. The OECD projection of GDP growth for 1994 is 2%. In January/February 1994 the growth rate in the main industrial areas was:

· Industrial output: 23.5% (down by nearly 10% from 1993)
· Construction output: 16.3% (down by nearly 12% from 1993)
· Retail trade: -30.2% (down by over 34% from 1993) (2)

The largest industrial sector is manufacturing and services to industry worth 473 billion kcs (£11 billion) and contributing 50% to GDP. Energy contributes 20% and agriculture less than 10%.

2.3 Exports

Before 1989 the market for Czech products was primarily the former Soviet Union. Czech exports shifted west in 1992 - shipments to the former USSR dropped by 50% and those to other Eastern European countries fell by 26%. At the same time, the OECD share of Czech exports rose by 10% to 47%, while Western Europe took a 52% share of the exports in the first three quarters of 1993. (3)

2.4 Privatisation

Much of the fall in industrial output can be attributed to the upheavals the country has undergone in the five years since the Velvet Revolution, including the separation on 1 January 1993 from the Slovak Republic, and to the changes in the export market.

An extensive and highly successful scheme of privatisation has been carried out via the sale of vouchers to the public, and the private sector constituted 52.1 % of GDP in the last quarter of 1993. The goal is to privatise 90% of the country's assets by 1994. (5) The majority of all registered companies are classified as medium-sized businesses, while the giant monopoly enterprises account for only 2.4% (November 1993).

The big companies are now struggling to survive, while the SMEs are generally doing well and are helping to hold the Czech economy in shape, although they also are fighting for their lives, but in a different way.

3.0 MAJOR INDUSTRIAL SECTORS

Prior to World War II, Czechoslovakia ranked amongst the most wealthy and prosperous countries in Europe. Many Czechs appear confident that they will regain this position relatively quickly. The current priorities are to reinforce market mechanisms, to enhance the private sector, thereby strengthening its role in the economy, and to cement relations with the West. The goal is to qualify for membership of the EU in the near future. (2)

The transformation to a market economy is not easy. In some companies, production has been reduced by over 60% with staff being laid off. This has coincided with a boom in small private organisations which have taken on those made redundant. Companies are now seeking to raise their productivity, having solved the immediate problems of balancing their costs and income from sales.

3.1 Engineering

Czech engineering has been respected internationally for years. Names like Tatra, Skoda Plzen and Vitkovice are known all over the world, and Czech engineers and technicians can hold their own with the best in the world in terms of quality and skill. Engineering is-the most important sector of Czech industry even though it is currently beset with problems: sales have plummeted since the collapse of the majority of their erstwhile markets (6) and the sector requires massive restructuring to enable it to compete with modern economies. All Czech engineering companies will be privatised.

The industry consists of heavy engineering, transport engineering, high current electrical engineering, electronics and electrotechnology, chemicals, pharmaceuticals, construction and light industry such as textiles, leather and footwear and glass and ceramics. (6) Weapons are still manufactured for the arms industry, but these tend to be light weapons, unlike in the Slovak Republic which produces heavy weaponry such as tanks.

The heavy engineering sector produces systems for power engineering and metallurgical plants, and heavy machinery for mining, transport and construction. (6)

Transport engineering has received heavy investment from abroad in recent years, most notably the Skoda Automotive Works in Mlada Boleslav which is now 49% owned by VW, a share which will be increased to 70%. Other foreign investors are Knorr-Bremse in Ateso (manufacturers of air brakes) and Ford in Autopal (a components manufacturer). (6)

Production in high current electrical engineering is concentrated in areas such as cables and conductors, electric motors, electrical devices, switchboards and the installation of electrical engineering systems. The companies are competitive in the field due to their track record, low labour costs and skilled work force. (6)

In 1991, the major fields in electronics production were (in order of importance): automation and computer technologies, electronic components, electronic consumer goods, telecommunications and radio communications. The industry has the technological and manufacturing capacity to produce hardware and systems for telecommunications, electricity, environmental protection applications and medical applications. (6)

The main priorities for the chemical sector include modernising plants and reorienting the sector towards R&D, increasing the processing of crude oil, expanding the plastics industry and improving its quality and working on an environmental construction programme.

The Czech pharmaceutical industry is currently struggling with outdated machinery and technology, low automisation, high energy consumption, little experience in marketing and quality control and difficulties in dealing with ecologically harmful production waste.

The construction industry has undergone major restructuring since 1990, when market-oriented reforms were introduced. Two thirds of the industry were privatised in 1992 and construction started to recover. The construction of small buildings, renovation, modernisation and finishing work are now the main activities of the industry. (6)

3.2 Energy

The Czech Republic is known for the low grade brown coal which it burns in huge quantities and at great cost to the environment due to its high sulphur content. The coal industry is gradually declining, however. Gas is viewed as the energy of the future. The Czech power gas distribution network is also being privatised. (7)

There is a nuclear industry, but its future is uncertain in view of environmental considerations.

3.3 Tourism

This is now a major contributor to the economy and is rapidly expanding. In 1993, over 71 million tourists visited the Czech Republic, spending US$1.4 billion. In August 1994 alone, 13 million visited the country, a 34% increase on August 1993.

3.4 Telecommunications

Most of the Czech telecommunications network is in the hands of the state-owned monopoly SPT Telecom. It is antiquated and overloaded: the national average of phones is 19 per 100 people. This ratio is much higher in Prague, but falls to 8 per 100 in the northern town of Liberec. The average waiting time for a phone is 2.7 years although some people have waited considerably longer. Private companies are now challenging the monopoly of Telecom. (8)

It is anticipated that by the year 2000 there will be a 35-40% increase in subscribers lines with 75% of the network digitised, 70,000 data stations, 170,000 public radio phone stations and 165,000 fax subscribers. (5)

3.5 Communications Infrastructure

The postal system operates efficiently in the Czech Republic and many people now have access to fax machines. Radios, televisions and videos are widespread and the use of computers has grown enormously in recent years with increasing numbers of Czechs becoming computer literate. E-mail is also growing significantly in usage.

4.0 ENVIRONMENT

Environmental problems have now caught up with all of the so-called Visegrád countries (the Czech and Slovak Republics, Hungary and Poland), but the Czech Republic is the most severely polluted country of the region due to 40 years of industrialisation and lax emission controls in addition to contamination from neighbouring countries (Germany and Poland). The worst areas in the country are northern Bohemia, Moravia and Prague. Awareness and education in the environmental field are growing, but the problems are still huge. Environmentally, the country is said to be 20-30 years behind the UK.

4.1 The danger to health

Pollution is one of the main reasons for low life expectancy in the Republic. This is not limited to air pollution. Fertilisers, often below world environmental protection standards, have entered the water supply and food chain, endangering the health of Czech citizens, particularly due to the increase of carcinogens in food. The Republic had the highest number of deaths from cancer among 150 member states of the UN in 1988. (6)

4.2 Pollution

The primary sources of pollution are power plants, chemical factories, surface mines and heating plants. The major air pollutant is sulphur dioxide; combustion processes causing 93% of the emissions. (9) There is no desulphurisation equipment in common use (October 1993) and as much as 70% of the forests has been affected by acid rain. As ever, the problem is one of old technology and out-of-date equipment.

The systems for processing drinking water are seen as totally inadequate for several of the major cities including Prague, while the land has suffered due to agricultural and forestry activities and contamination. (9)

There are problems with hazardous and toxic waste: approximately 1,400 unauthorised dumping sites have been located in the Republic. (9) Moreover, the EIU Business Report (4th quarter 1993) states that according to local statistics, about 80% of the toxic waste generated by Czech industry has not been stored safely. (6)

There are now problems surrounding the disposal of nuclear waste which in the past was shipped to the former USSR. (9)

4.3 The Government's approach

The government is now making attempts to address the problem through new laws on environmental protection and is subsidising certain clean up projects such as the renovation of old water mains and the conversion of residential heating from coal to non-polluting fuels. (10) There are reputedly disputes between the Minister for the Environment, Frantisek Benda, and the Prime Minister, Vacláv Klaus, over environmental controls. (7) Benda wants more governmental involvement in the environment, whereas Klaus takes the view that it should be more a matter for individual rather than governmental concern. Many individuals are more concerned, however, with the survival of their businesses than with the environment.

4.4 The effect on foreign investment

In 1992, the OECD and the World Bank carried out a survey of 1,000 of the largest Western manufacturing, mining and construction companies operating in the Visegrád countries. The survey found that environmental liability was of greater concern to investors than political stability or infrastructure problems. (2) As a result, the cost of cleaning up an enterprise is generally deducted from the purchase price. It has also been estimated that if indemnities absolving foreign investors from liability for past pollution were stopped, it could in effect halt the privatisation of large enterprises. (2) Determining the scale of environmental damage and the responsibility for cleaning up is therefore a central topic in privatisation

4.5 Need for environmental training

Generally, there is a need for the Visegrád countries to build their domestic environmental engineering and business sectors, concentrating on the management, financial and marketing skills needed to fulfil the environmental objectives of the region in a cost-effective manner. (2)

The need for training in this field is acute and urgent in view of the scale of the problems. For example, everyone who wants to work in Environmental Impact Assessment in the Czech Republic must be issued with a licence by the Czech Ministry of the Environment. The examination for the licence is difficult and applicants need appropriate training.

5.0 MANAGEMENT

There is obviously a lack of top managers used to Western methods in the Czech Republic. However, this situation is now changing: Czechs are beginning to take over the jobs initially done by outsiders, and the need for foreign advisors and consultants is decreasing. The majority of Czech managers have studied at the Czech Technical University in Prague or at the University of Economics, and the skills which they now most need are in sales, finance and marketing. The greatest need is at the level of middle management. (11)

Many private organisations now offer managerial training and several institutions offer MBAs including Sheffield University which offers an MBA, financed by the 'Know How' Fund, on a part-time basis through the Masaryk Institute of Advanced Studies, part of the Czech Technical University. The managers pay circa £2,150 for a three year part time course.

6.0 THE EDUCATION SYSTEM

The Czech education system has undergone considerable changes this century. All the Czech higher education institutes were closed during World War II, and following this, higher education fell under the control of the Communist state authorities in the years 1949-1989. Research and teaching/learning activities were based on Marxist-Leninist ideology and directive methods of control were used.

The Czechs have a long tradition of education of a very high standard and have always placed a high value on education. One informant commented on their intellectual curiosity, on the fact that they needed to learn.

6.1 Secondary education

Secondary schools are divided into:

· Gymnasia, where students receive a general education which prepares them for university

· Specialised secondary schools and conservatories. The specialised secondary schools prepare secondary level specialists such as technicians, nurses etc. The schools are divided into technical schools (specialised again into engineering, construction, power engineering etc.) and schools for economists, librarians, etc.

· Secondary vocational schools, which are practically oriented and prepare the students for an occupation. For occupations such as power engineering, there is a four year curriculum after which the students can apply for university. Studies at these schools are completed with an apprentice exam (and for four year graduates a matriculation final exam) (12)

6.2 Vocational training schools

The training of craftsmen and apprentices is both very good and very formal in the Czech Republic and, in the view of one of the informants, the basic workforce is better trained than in the UK.

As of September 1993 there were 727 vocational schools in the Czech Republic. Many of these run sandwich-type schemes in which apprentices work in companies for a specified number of days per week. The numbers of those completing a practically-oriented three year training including apprenticeship is far greater than those completing a more theoretical four or five year course which would then enable them to apply for a technical university: 224,000 as opposed to 30,000. These numbers compared to the numbers of students at university or tertiary level indicate a very high rate of participation at the apprentice level, but a corresponding low rate at the tertiary level. (13)

The apprenticeship scheme is currently experiencing difficulties as employers involved in the programmes are not paying the vocational schools for their services. There are also problems for the employers in that the students are not now obliged to work for them on completion of their training and may accept a better offer elsewhere. (11)

The Confederation of Industry completed a survey in 1994 of 1,200 of their members which indicated that 72% of the respondents employed apprentice graduates, but that only 53% considered that they ought to be responsible for vocational training. 50% were prepared to contribute financially to the training of apprentices, but only 24% would fully cover the costs of in-company apprentice training.

As companies respond to the pressures of the market economy, they are reviewing the number of apprentices they need. Skoda-VW has, for instance, reduced the number it employs by 55% in four years, while production of cars is planned to rise (without the introduction of automation) by 75% in the next two years.

There is a gap in education between secondary school and university which does create problems in that people come out of school at different levels and with different skills. Training to fill this gap would be useful.

7.0 HIGHER EDUCATION

The number of students in higher education increased during the 40 year period of Communist rule, although it remained substantially lower than in other comparable European countries. But the development of higher education did not match the demands of society, especially during the 1980s. A new Higher Education Act was introduced in May 1990 designed to address some of the problems. It focuses on the self-governing of higher education institutions and restricts the control of the state over them.

Charles University, one of the oldest in Europe, and the Czech Technical University in Prague are amongst the best universities in Central Europe. These two certainly have the academic standing and reputation to deal with validation and accreditation of courses, although many Czechs still see the cachet of a foreign degree as an advantage. There are consultancies and entrepreneurs in Prague offering courses in aspects of management by distance learning, but these cannot be validated, however good they might be, as the organisations are too lightweight academically. Course accreditation by a credible institution is very important to the Czechs, although the process of accreditation is really only just beginning. Professional institutes in engineering did not properly exist in the Communist era as they would have been perceived as a threat to the system.

7.1 Composition of higher education

The Czech Republic has 23 higher education institutions consisting of:

· eight multidisciplinary universities
· four technical universities
· one veterinary university
· one economic university
· two universities of chemical technology
· two universities of agriculture and forestry
· one higher school of education
· four academies of art.

The majority of these institutions are located in Prague and Brno. (14)

Between them, these higher education institutions have 27 faculties of engineering. The number of overall faculties in the institutions grew by 20% between 1990 and 1993 as the system adapted in an attempt to accommodate demand. (14)

Higher education is organised either as full-time or part-time study, although part-time is seen as a second class form of study, and the number of students studying in this way is considerably smaller. Of the total student body of 109,500 (September 1993), just over 14,000 were studying while still at work.

Level of study amongst the total student body:

· three year bachelor degree

13,500

· four to five year 'magister' or 'engineer' degree

94,300 (Masters equivalent)

· postgraduate doctoral degrees

1,600 (13)

7.2 Student demand

In the 1970s and 1980s, there were considerably fewer students enrolled for the natural sciences and the humanities in comparison with the majority of advanced industrialised countries, while almost 50% of all students studied engineering or agriculture. (14)

Since 1989, this trend has been reversed: those studying engineering have fallen from 38.5% to 32.3% (1992), while the field of humanities, theology, social sciences and law has increased by nearly 80% to 16.2% of all students. (14)

The percentage of female students is circa 45% of the total. Only about 16% of the 18-23 year old population are in higher education as compared with 25-30% in West European countries. (15)

A major problem in the Czech system is that the universities have a system of 'numerus clausus' which limits the number of students who can be accepted. This means that each year there are large numbers of qualified students who simply cannot get a place. This year, for example, Charles University had 32,000 applicants but could only accept 6,200.

7.3 Engineering education

It is widely acknowledged that the Czech engineers are trained to exceptionally high standards technically. They are especially good in the following areas:

· mechanical civil
· structural
· mining
· systems and control

Currently they tend to lack skills in areas of rapid change such as: electrical engineering, telecommunications, manufacturing and production and information technology. It is in these areas where there is the greatest need and opportunity for updating.

To be granted the academic degree of engineer ('Ing'), students must study for five (maximum six) years at institutions offering technical, economic or agricultural subjects. (14)

7.4 The cost of study

Until 1993, study of higher education was free in the Czech Republic. Students were awarded scholarships of different amounts depending on their achievements and also their social conditions.' (12) The-government now plans to introduce fees for higher education under a new law which would supersede that of 1990. The fees would be implemented in 1995 1996 and would be about one seventh of the average annual income. The government expects that around 75% of students would postpone payment. (16) Many university leaders and academics are opposed to the scheme. (11)

Under the same law, the government also plans to create a national system of vocational higher education and to allow private universities. The new system would provide people with a practical vocational training to bachelor level in three years. (16)

The cost to the state of an engineering student is 37,000 kcs per annum (circa £880) while, due to the use of small group teaching, an arts student costs 100,000 kcs per annum (circa £2,380).

7.5 Changes in students' attitude

Engineering was the most popular area for study under the Communists. There has now been a reaction with students much keener to study new areas such as law, economics and the humanities. There has been a drop in applicants for such subjects as electrical engineering and especially mechanical engineering, and as a result it is now much easier to get a place in one of the technical universities than, for example, in Charles University. There has also been a large decrease in the number of women engineers.

However, there is unlikely to be a shortage of trained engineers in the short term. The Czech Republic still has a large number of engineers in the working population and it still produces significant numbers; for example it produces 10 times as many electrical engineers as Holland and in the Czech Technical University in Prague (CVUT) civil engineering still remains the faculty with the largest intake.

Students are now interested in combinations of courses, such as information technology combined with environmental studies. There is also a substantial demand for new subject areas such as biomedical engineering, cybernetics, laser technology, environmental engineering and software engineering. The universities are responding to a certain extent: the CVUT, for example, has started environmental management and would like to extend it to a full curriculum.

8.0 CONTINUING EDUCATION

8.1 Re-qualification

The system for re-training does not work well on a national level in the Czech Republic. Three Ministries are responsible for various aspects of training (those of Economy, Education, and Labour and Social Affairs) and have a joint committee which controls the progress of retraining, but they have no influence on its implementation and receive no feedback.

The whole concept of retraining is new in the Czech Republic but is something that the people are coming to terms with as they face up to the idea that they will not necessarily have a job for life. The CVUT, for example, offers one week re-qualification courses which are very popular.

8.2 Updating

Updating is taking on an increasingly higher profile in the Republic. For example, by 1996 every civil servant will undertake compulsory Continuing Professional Development (CPD).

The view within the Ministry of Education is that there is a need for CPD and that distance learning could be useful for the retraining of engineers.

Some faculties in Charles University provide short courses for industry. The CVUT used to run postgraduate courses of one or two years funded by the state-owned companies. Overall, however, there is little provision for updating unless it is offered within individual companies.

8.3 Potential areas for training

Given the changes to the political and economic system, the Czechs require training in areas to which they have not been exposed over the last 40 years: management (at all levels and virtually of all types including project management), economics, especially finance and accounting, business administration, marketing, sales, computing and information technology, educational technology, environmental issues and foreign languages (not Russian!). Generally, there is a need for professional reorientation towards the market and towards customer needs. This includes areas such as quality, the ethics of the market economy and customer service, all of which are new concepts to the Czechs. Since the accident rate in the Czech Republic is 10 times that of the UK, training is long overdue in the area of health and safety. There is also a need for training in more specific areas such as construction management, although the owners of the companies are reputedly not convinced of this.

We were told on several occasions that Czech managers are not good at communication either between departments or between themselves and their workers. As a result there is no flow of information between those who, for example, write a specification and those that put it into practice. Quality is therefore lacking, and communications is another area in need of training.

While there is a pressing need for training in management techniques, particularly at the level of middle management, it was also pointed out to us that everyone was keen to teach management techniques to the Czechs! There are a large number of western training organisations and educational institutions currently seeking markets in the Republic.

Some of the areas where there are the most pressing needs include:

· the retraining of teaching and academic staff

· the development of programmes for large industries and service organisations for example, courses in entrepreneurship, marketing, production, advanced technology,

· engineering the development of programmes for adults to improve their current educational qualifications (17)

There may also be a demand for training by distance learning for employees of SMEs who cannot be released for training by traditional methods.

9.0 DISTANCE LEARNING IN THE CZECH REPUBLIC

Interest in continuing vocational education in the Czech Republic is increasing and people are becoming more aware of the relationship between knowledge and salary. As a result, the prospect of distance learning is more palatable than it might have been hitherto, as people begin to acknowledge the role which it can play in furthering their education.

9.1 Awareness of distance education

The Czechs are familiar with distance learning as correspondence courses (the 'consultation model') were widely used under the Communists. The programmes were print-based with no specially designed materials and little if any student support and were accompanied by face-to-face consultations at the university or at a consultation centre. The quality of these programmes is disputed and even though the success rates were high and the students enjoyed substantial advantages (paid days off work and subsidised transportation costs), the use of the so-called consultation model started to decline in the 1970s as numbers began to fall. (17)

This model of distance education is discredited, in part because of doubts about its quality and also because it has been identified with the politics and economics of the Communist period. (17) Only those who conformed politically could study under the scheme. As a result there is fairly widespread scepticism in the Czech Republic about the value of distance education, and there is very little knowledge about the way in which distance education has developed outside the former Soviet bloc. Moreover, some private companies have started distance learning correspondence courses in which the quality is variable.

There is therefore a reticence to embrace this form of education, although it could help alleviate the pressures on the educational system and could help to meet the education and training needs which are linked with the transition to a market economy and democracy.

Care has to be taken when discussing distance learning in the Czech Republic as there is confusion between the old type of correspondence courses and the new style of distance learning: not everyone makes a distinction between the two. Some faculties, for example, describe evening classes as courses in distance learning. We were told that very few people (only perhaps 10%) would be familiar with modern distance learning.

9.2 Existing networks and providers of distance education

There are a certain number of networks which already exist in the Czech Republic and which could be used to deliver distance learning programmes. There is, for example, CADUV (the Czech Association of Distance Teaching Universities) which has 29 members throughout the country. This is a new organisation in which all of the members have a common interest in distance learning, and to date they have compiled a list of the courses available by distance learning in the Czech Republic.

In addition there is the Jan Amos Comenius Academy (formerly the Socialist Academy). Previously this offered correspondence courses in which the content was heavily influenced by Communist ideology. The Academy now offers non-graduate distance education to adults who have graduated from either secondary or higher education. There are evening courses in such subjects as business and languages (primarily English and German), but the Academy is now preparing a management course by distance learning targeted at middle management, both for those in work and for those seeking managerial posts. It has links with the Mission Board in Examining in Management in England. The Academy has a network of 70 adult education centres throughout the Republic which could be used to support distance education programmes.

The following institutions, amongst others, provide distance learning packages:

· The Faculty of Medicine, Charles University, Pilsen (now part of the University of West Bohemia).

This delivers distance education courses via radio broadcasts.

· Technical University of Liberec

This offers five year degree distance courses in the mechanical engineering faculty in machine-engineering technology and in machine construction. New courses are being prepared in marketing, mathematics and ecology, and distance learning in the Faculty of Education is being restructured.

· The Distance Learning Information Centre in Brno

This is a newly developed centre which is part of the Technical University in Brno. It has close ties with the German Fernuniversität in Hagen and offers courses in German developed by the FeU. The Centre is interested in delivering well prep area distance learning courses probably developed, at least in the initial stages, outside the Czech Republic. It is currently preparing a tender for the Ministry for Social Affairs to prepare and deliver distance learning courses targeted at trainers at the local level.

· The Faculty of Civil Engineering in the Technical University in Brno

This is preparing diploma courses by distance learning in such areas as project management but without the backup of such elements as student support. It currently has 20 students studying in distance learning form.

· Faculty of Philosophy in Charles University

9.3 Governmental views of distance learning

Within the government, distance learning is currently a 'hot topic' about which the Minister for Education has requested information. At the moment it is practised in four universities: the Technical University at Brno, Masaryk University in Brno, Olomouc University and Liberec University. A Centre for Distance Learning is to be established in January 1995 in Brno, legally separate from the current Distance Learning Information Centre but closely linked to it. The Centre will be responsible for producing, modifying and translating materials and will collaborate with any interested university on the basis of agreement. Its role will also be to accredit and evaluate materials. Within the Ministry, the view is that the focus of future distance learning programmes will be in the humanities and in the managerial field.

9.4 PHARE

The main sectors for EC PHARE aid planned in 1991-1992 were: enterprise restructuring and privatisation developments of SMEs, labour marketing restructuring, the environment, energy, telecommunications and TEMPUS (the programme for the reform of Higher Education). In terms of the money allocated in 1992, the environment and nuclear safety ranked highest followed by transport and TEMPOS. Much less was earmarked for energy and telecommunications. It is acknowledged that both the public and private sectors have a very real need for training. (18)

The CEC PHARE programme recently funded a feasibility study on the development of a regional distance education network in Central and Eastern Europe. (19) The study points out that there is potentially a huge demand for distance education, as more than half of the interested and qualified applicants for a university place in some countries have to be turned away and also that there is a lack of resources in universities and colleges.

Official representatives of all PHARE countries agreed in October 1993 that a Regional Network for Distance Education should be set up in the Central and Eastern European countries. The priority would be to develop programmes directed towards vocational and professional learning needs, targeting amongst others professional groups, civil servants and those in need of retraining. Potential training areas which were identified and which are relevant to this report are: engineering, information technology and the environment. (19)

The Czech Republic has already acknowledged the potential importance of distance education: in 1991, the National Board for Distance Education was established by the Ministry of Schools and Education, with representation from the Ministry, 15 Universities and the Comenius Academy. This instigated in 1992 a large project to develop distance education focusing initially on language courses. (19)

9.5 Sources of potential impetus for distance education

The views of many of those we talked to during our visit seemed to confirm the findings of the 1992 TEMPUS feasibility study, namely that the impetus for distance education is unlikely to come from the traditional universities, but that it will probably come from new institutions, either in the private sector or recently established by the State. (19)

The universities are having to deal with urgent problems such as restructuring the curricula and lack of funds, and many university academics appear to have a somewhat negative or 'cautious' opinion of distance learning, although some do acknowledge that there are huge possibilities in certain areas. One of the objections voiced in the context of the changes in the Czech Republic is that students have to be totally immersed in a new environment if their fundamental attitudes are to be changed, and that this will not be achieved by distance learning.

In the traditional environment of the well-established universities, distance learning will not be easily accepted. For it to be accepted, it would need to focus on high demand courses and it is most likely to be successful if there is no full-time course available as an alternative.

9.6 Delivery

Given that the Czechs are generally not yet in a position to develop and deliver their own distance learning courses (there are apparently less than 20 individuals able to design open learning materials), franchising existing courses from organisations abroad is the best current solution. For the foreign institution, however, this can be very labour intensive and expensive. The Open University, for example, is concerned about the costs arising from its management diploma courses in the City University of Bratislava (CUB) in the Slovak Republic, a course which has proved extremely popular.

There was general agreement that if a distance learning course were imported and adapted for top level management there would be no need for translation into Czech. If however the course were targeted at middle or lower management, translation would be necessary.

Conclusions

The whole fabric of Czech society is undergoing dramatic changes, economically, politically, culturally and socially, and in a remarkably short time scale. For 40 years the Czech people have, by and large, been cut off from concepts such as competitiveness, company and individual productivity, responsibility and accountability in the work place, initiative at work, health and safety, customer service and care, reward based on knowledge, effort, skill and achievement, quality control, communication between workers - to name but a few. They are not going to gain a full understanding of these new concepts overnight, but there is a need for training to facilitate this process and to help bring about the necessary change in attitude.

There is little doubt that the changes will be brought about successfully and quickly: the Czechs are industrious, enterprising and keen to get on. They have embraced many of the principles of capitalism with little if any reticence and show every sign of adapting to democracy and a market economy with remarkable ease. Their focus is definitely westwards, but they do have their priorities, and these have to be borne in mind when considering what their needs might be:

· Many industries and business concerns are either fighting to survive or to get off the ground. Consequently training is not a high priority.

· The Czechs are very conscious that theirs is not a developing country, and they should not be treated as if it were.

· Many people are perhaps somewhat jaded in view of all the advisers and consultants who have bombarded them with information about what their needs are for the last five years - they do not now need to be told this and seem rather weary of that whole process. It would appear that they need some time to absorb the information and to decide about their own requirements now that they have seen what is on offer, what they might gain by it and how it might be applied.

There is however a growing appreciation of the value of training and the returns on it, and perceived cost-effectiveness and learning effectiveness will no doubt count for a great deal when sectors, industries, organisations and business concerns make decisions regarding training.

Potential demand for distance learning

The Czech Republic certainly has the infrastructure for distance learning and there is little doubt that the people have the motivation and capacity for learning. For distance learning to be acceptable and successful however certain conditions would have to be fulfilled.

· The image of distance learning would need to be improved. The concept would have to be well marketed and presented as something new, modern and completely different from the old-style correspondence courses. The use of modern educational technology would be a useful selling tool. The support of industry and business would be useful to increase credibility.

· Distance education would have to be perceived as cost-effective, of benefit to both the individual and the employer, and worth the investment of time and money. Costs would have to be realistic for the Czech Republic.

· Any training would have to be designed, modified or adapted specifically for the needs of the Czech Republic, and if developed by a non-Czech organisation, would have to be produced in close co-operation with Czech colleagues.

· Subjects for which there is an urgent need for training and for which there is little if any current provision would have to be targeted: the environment, information technology, health and safety, telecommunications, project management, marketing etc. There would be no point in offering distance learning in traditional engineering, given the current lack of interest in the subject and the saturation of graduate engineers in the market.

· Translation would be necessary unless the course were for top level management.

· Any course would have to be accredited by a respected institution: the name of a reputable collaborating foreign institution would be a useful selling point.

It is unlikely that there will be a demand for distance learning at the apprentice level.

There will be an optimum time to introduce distance learning programmes in order to gain the support of the established academic institutions. This will probably not happen for several years, regardless of the fact that vast numbers of qualified applicants have to be turned away from many of the universities each year and that there is a gap between education at secondary and at tertiary levels. In the meantime, attempts to introduce distance learning should be targeted at the retraining and updating areas where it is likely to be most useful and most cost-effective.

Appendix 1.1 - Organisations/institutions consulted

Engineering Companies

Higgs & Hill
ICL Czech Republic
Shell Czech Republic
Skoda Automobiles
Toptel Ltd
Bovis
British Gas, Prague

Other organisations

Association of Manufacturers and Suppliers of Engineering Techniques

Central European University, Prague

Charles University

Czech Society for Adult Education, Charles University

Czech Technical University of Prague

Embassy of the Czech Republic, London

Institute of Electrical Engineering, Academy of Sciences, Prague

Institute of Radio Engineering and Electronics, Czech Academy of Sciences

International Centre for Distance Learning, Open University, UK

International Relations Department, Ministry of the Environment of the Czech Republic

Masaryk Institute of Advanced Studies, Czech Technical University of Prague

Ministry of Education, Youth and Sport of the Czech Republic

Ministry of Industry and Trade of the Czech Republic

Open University, UK

City University of Bratislava

Department of Physics, Institute of Mining and Metallurgy, Technical University of Ostrava

Distance Teaching Service, Technical University of Liberec

Faculty of Electrical Engineering and Computer Science, Technical University of Brno

Institute of Environmental Engineering, VSB Technical University of Ostrava

Technical University of Brno

Comenius Academy, Prague

Appendix 1.2 - Sources and references

1. Prague News, 20/10 - 3/11.1994

2. Business Central Europe, June 1994

3. Central European Economic Review, Vol. No. 2, Winter 1994

4. Czech Republic Country Report, November 1993, Hilfe Ltd

5. Czech Real Estate/Utilities/Infrastructure Update, DTI, October 1993

6. Economist Intelligence Unit Business Report, 4th Quarter 1993

7. Czechoslovakia: Energy, DTI European Division, July 1992

8. Prague Post, 7 - 13 September 1994

9. Joint DTI/DoE Report from the Environmental Markets Unit (JEMU), DTI October 1993

10. Prague News, No. 19 22/9 - 6.10.1994

11. Prague Post, 28 September - 4 October 1994

12. The Educational System of the CSFR 1992, Institute of Informatics in Education Practice

13. Pocketbook on Education Statistics 1994, Institute for Information about Education

14. Higher Education in the Czech Republic - Guide for Foreign Students Centre for Study of Higher Education, Prague, September 1993

15. Feasibility Study for Distance Education in the Czech and Slovak Federative Republic, Hungary and Poland, Greville Rumble, Per Eklund, Ger van Enckevort and Keith Harry, TEMPUS Report

16. Times Higher Educational Supplement, 1994

17. The Development of Distance Higher Education in the Czech and Slovak Federative Republic, Hungary and Poland, Per Eklund, Ger van Enckevort, Keith Harry and Greville Rumble, Open Learning Vol. 8 No. 2, June 1993

18. PHARE Czech Republic Orientations Paper, 1994 - 1996

19. Development of a Regional Distance Education Network in Central and Eastern Europe - Report on a Feasibility Study, Bjorn Baaberg, Ger van Enckevort, Nick Farnes


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