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Since 1989, Central and Eastern European countries (CEECs) have taken on the challenge of developing a market economy, with the capacity to cope with competitive pressure. As part of the process of meeting this challenge, the CEECs have embarked upon reform of their vocational education and training systems. New institutional arrangements have been introduced as the first step towards reform, but many challenges remain. The new institutions need to prove their effectiveness and much needs to be done to define new occupations, develop qualifications, standards and new curricula.