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This paper first looks at technical and vocational education (TVET) in developing countries, pointing out typical continuing problems which include: failure to make the TVET system responsive to the demands of the workforce or the requirements of the business sector; underqualified and undertrained teachers and trainers; lack of public funding for TVET; training programs that are remote from real working life; and structural distortions in the labour market. The next section of the paper discusses some of the difficulties arising form these problems for European institutions which are engaged in collaborating with the developing countries to improve TVET services. The potential of TVET in the development context and prospects for new forms of international cooperation are discussed.