Vocational Education Development in the Western Balkans: Donor Community Activities

Vocational education and training (VET) play a crucial role in equipping young people with the skills needed for employment and economic success. The Western Balkans were characterized by decade-long high youth unemployment and skills mismatch, and we are happy to see donors more actively taking part in supporting youth employability, education, and VET development.

Trends in Supporting VET

In recent years, we are observing several key trends in donor activities in the field of vocational education and training:

Shift towards demand-driven VET:  The focus from supply-driven approaches shifted to demand-driven ones and ensures that VET programs are aligned with the needs of the labour market. This involves closer collaboration with businesses and industry associations in curriculum development, internship opportunities, and skill identification.
Promoting dual and cooperative education: Dual and cooperative education models, which combine classroom learning with practical training in workplaces, are increasingly gaining traction in the region. Support is given by providing technical assistance, funding pilot projects, and sharing best practices.
Focus on vulnerable groups and gender mainstreaming: Recognizing the specific challenges faced by vulnerable groups such as women, minorities, and youth with disabilities, donors are tailoring VET programs to address their needs and increase their access to quality education and employment opportunities.
Strengthening VET governance and institutions: Building the capacity of VET institutions to effectively manage and deliver programs is essential for long-term sustainability. Donors are supporting this through training for teachers and trainers, development of quality assurance frameworks, and modernization of equipment and facilities.
Regional cooperation and knowledge exchange: Recognizing the benefits of collaboration, donors are facilitating knowledge exchange and sharing of best practices among countries in the region. This helps to accelerate the development and implementation of effective VET reforms.

Regional Challenge Fund Approach

A year ago, the Swiss Government, represented by the SDC Swiss Development Cooperation joined the German Federal Ministry for Economic Cooperation and Development in funding the operation of the Regional Challenge Fund (RCF), showcasing the increasing donor commitment in the region. It serves to underscore the recognition of the RCF as a successful instrument for advancing our objectives of enhancing youth employability and fostering the competitiveness of enterprises.

The RCF approach is designed to address three main struggles hampering education, economy, and sustainable development in the region. Our programme helps vocational training institutes better align their programs with the needs of businesses and equips schools with the same modern technology used in industries nowadays. In addition, it combines flexible work-based learning in educational facilities and on-the-job training at companies, enabling graduates to acquire highly practical skills. Finally, it brings about productiveness, competitiveness and innovativeness among businesses involved.

With the goal to overturn the youth labour market indicators that show substantially low rates for young women and other vulnerable groups, we make it our mission to shed more light on gender-inclusive vocational education systems. RCF encourages VTIs to make all occupations, especially STEM occupations, more attractive to all gender and vulnerable groups to increase their participation.

Challenges and Outlook

Despite considerable progress, several challenges remain in developing effective VET systems in the Western Balkans. These include:

Fragmented governance structures: The responsibility for VET is often shared across various levels, ministries, and agencies, leading to inefficiencies and inconsistencies.
Limited resources: Funding for VET remains insufficient in many economies, hindering the implementation of reforms and modernization efforts.
Social and cultural barriers: Traditional attitudes towards VET and vocational careers can discourage young people and/or their parents from choosing these paths.

On a micro-level, the RCF conducted an analysis of the perceptions and challenges of the cooperative and dual training arrangements in the WB6. The analysis revealed insight into critical issues, such as outdated technologies and inadequate equipment, lack of capacities for digitalization or environmental-friendly solutions, green skills, etc., that the RCF will continue to provide support for.

Moving forward, addressing these challenges, and building on the successes of recent years will be crucial for ensuring that VET delivers on its promise of providing young people with the skills they need to thrive in the 21st-century economy, while at the same time fostering sustainable development and highest environmental and social standards across industries.

Examples of recent donor initiatives

Regional Challenge Fund: This €74,13 million initiative funded by the German Federal Ministry for Economic Cooperation and Development and co-funded by the Swiss Government, supports the development of dual training programs in the Western Balkans. The funds were commissioned to the KfW Development Bank and executed by the Western Balkans 6 Chamber Investment Forum (WB6-CIF), a joint initiative of chambers of commerce from the region. See HERE.

Erasmus+: This programme, funded by the European Union, under its VET actions aims to support VET institutions and systems in third countries to be more relevant, accessible, and responsive. In turn they can act as a driver of sustainable socio-economic development. See HERE.

Swiss Agency for Development and Cooperation (SDC): SDC has been a key player in promoting dual VET in the Western Balkans, providing technical assistance and funding for pilot projects in several economies. They also support the development of lifelong learning pathways and the integration of basic education with VET. See HERE.