STED is a strategic tool developed by the ILO that provides guidance for the integration of skills development in sectoral policies. It is designed to support growth and decent employment creation in sectors that have the potential to increase exports and to contribute to economic diversification.

STED was applied in Ukraine in 2010 as part of ILO technical assistance under the Global Jobs Pact. Sectors covered were the Metal Industry and Tourism.

Stakeholder Workshops

Workshops with representatives from relevant government and education institutions as well as employers' and workers' representatives from the respective sectors were organized in Kiev in March 2010 to discuss and validate initial findings and promote skills dialogue among stakeholders.

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Final Report

Promoting Economic Diversity in Ukraine: The Role of the Business Enabling Environment, Skills Policies and Export Promotion

Selected Findings

The Ukrainian Metal sector is characterized by low levels of investment in new technology and entrepreneurship. Government incentives tend to support the status quo rather than promoting positive change. In addition, these policies are prone to be in conflict with WTO rules, which has led to disputes against Ukrainian metal exports.

Entrepreneurship skills are lacking at the top level of the sector. Current engineering curricula do not match the requirements of firms that attempt to move into higher value metal products. Expertise on applicable WTO rules needs to be strengthened in relevant government units.

Recommendations include a revision of the incentive system to reward innovation, the creation of an industry skills council to anticipate future skills needs and enhance the relevance of training curricula, and creating a graduate programme on WTO law.

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