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Rapid shifts in the world's economy, rising costs of debt and increasing rates of educational participation have caused nations to search for increased efficiency to stretch scarce resources further. Developing nations are particularly hard pressed. On the one hand, they must become more efficient, and on the other expand their vocational education and training programmes to meet their economies' demand for skilled labour. Such pressures are leading developing nations to consider ways of harnessing nonformal sector institutions to improve their efficiency while expanding their resource base. This paper describes the sector use in ten developing member countries (DMCs) of the Asian Development Bank. The paper concludes with a summary of findings and recommendations.