Positioned at the nexus of knowledge creation, education, innovation and economic growth, universities and other higher education institutions must play a key role in the transformation of Chile’s economy. This chapter reviews the evolution of higher education in Chile from 2004 to present, as well as the proposals in recent reform packages. The OECD recommends in this chapter that Chile: 1) identify a system-level vision and strategy for higher education; 2) establish an effective infrastructure to steer the higher education system; 3) strengthen equity in access to high-quality higher education, and; 4) strengthen the quality and relevance of higher education.

Vocational education and training (VET, or professional-technical education, as it is known in Chile) is increasingly crucial to countries wishing to develop a highly skilled labour force. Upper secondary VET programmes can provide a range of mid-level trade, technical, professional and management skills, while post-secondary VET programmes can provide students with high-level trade, technical-professional and management skills. By developing and sustaining a high-quality VET system, the Chilean government has the opportunity to improve the skills of its population and to begin developing a more innovative and knowledge-based economy. The Chilean government can do this by: 1) ensuring that VET programmes meet both the needs of students and employers for the short and longer term; 2) taking measures to ensure that all post-secondary VET programmes and institutions do not fall under a certain quality level; 3) Implementing a national qualifications framework to better meet labour market needs and the aspirations of students, and; 4) Developing good-quality career guidance and information, and make it available to students.