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This paper provides a contemporary analysis of human resource development (HRD) in Montenegro. The discussion focuses particularly on the policy context and support framework for employment promotion, and education and training and considers their potential in terms of the contribution to the country's competitiveness and social inclusion. The paper concludes with a number of concrete recommendations as to how Montenegro's accommodation of European Union (EU) employment and HRD policies could be improved, followed by a summary of donor interventions in the HRD sector to date.