1. International Conference Fostering and Building Human Capital for Sustainable Knowledge Societies in South Eastern Europe Bucharest 6-7 March 2008 FOSTERING HUMAN CAPITAL FOR LABOUR MARKET NEEDS AND COMPETITVENESS Arjen DEIJ, email Arjen_Deij@etf.europa.euArjen_Deij@etf.europa.eu

2. 2 Can we increase the returns from investment in HC in South Eastern Europe? Concepts Concept of Human Capital & returns for individuals and economic growth Increase in labour productivity, enhanced innovative capacity & the diffusion and transmission of knowledge of new technologies Shift to inputs to qualitative learning outcomes Globalisation and competition Virtuous rather than vicious circles=> aiming at higher value, rather than competing at low cost Economic growth is linked to Human Capital, use of ICT, innovation and adaptations How can education systems support productivity, quality, efficiency, innovation and creativity? How to prepare people better?

3. 3 Can we increase the returns from investment in HC in South Eastern Europe? Entrepreneurship & ICT skills in South Eastern Europe Understanding of contribution of HC development to entrepreneurship, people born or made entrepreneurs Entrepreneurship is a key competence, question of mindset Donor driven ad hoc projects but what about integrated approach in the curriculum, partnerships that can foster a more entrepreneurial environment Sufficient access to ICT? ICT is not integrated in the curriculum & often of-the-shelf solutions. Need capacity building & financially viable models, incl. use of traditional learning A need for more innovative and proactive providers How open are universities to cooperating with enterprises?

4. 4 Can we increase the returns from investment in HC in South Eastern Europe? The labour market and Human Capital utilisation and productivity Not only about preparation of right knowledge, skills & competences but also about how we make can make better use of available k,s,c, at national and company level. How effective/productive can people be in their jobs? Can companies be supported to make better use of staff? Can we increase the activity rate, and how do we deal with demographic developments? How to promote inclusive development?

5. 5 Can we increase the returns from investment in HC in South Eastern Europe? Challenges for South Eastern Europe Relatively low levels of education, poor use of middle level skills available (unemployment, low productivity economic activities, subsistence farming, informal sector, deskilling). Weak labour market adaptability, relatively few with high skills, able to support absorption of new technologies, sometimes decreasing due to migration. Rural populations & Roma lower qualified and with poor access to HCD. Different needs in different countries. Using European developments-the Lisbon Agenda Focus on quality and quality improvement of provision, using partnership approaches and the European Reference Framework for Quality Make knowledge, skills and competences more visible to deploy them better (recognition of non-formal and informal learning) Better linkage between learning pathways, use of NQF to support LLL Invest in Education and Training, review public and raise private contributions

6. 6 Key questions for discussion 1. How can we build better links between research, education and innovation? And stimulate university-enterprise cooperation? 2. How can education systems support productivity, quality, efficiency, innovation and creativity? 3. Is education and training provision in South Eastern Europe giving enough attention to entrepreneurship? 4. How can we bridge the digital divide in ICT skills? 5. How can we make better use of the available human capital? 6. What can be done to tackle the specific challenges for South Eastern Europe? Can we identify practical steps? 7. Can existing reform instruments be better used to foster human capital? 8. Where can we find the resources to foster Human Capital Development in South Eastern Europe in particular in the light of the financial crisis?