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This paper is part of the contribution of the Development Policies Department of the International Labour Office (ILO) to understand the emerging issues in development as a result of globalisation and the responses in terms of national economic and social management. It looks at the impact of rapid technological change on skill needs for competitiveness in developing countries. The resultant demand is for more skills, higher levels of skills and different kinds of skills. The chapters are: Introduction; Skills and competitiveness; The new context for competitiveness; Skill formation in developing countries; Policy implication.