COMPETING WITH LABOUR: Skills and Competitiveness in Developing Countries

other countries with associated Reproduction Rights Organizations, may make photocopies in accordance with the licences issued to them for this purpose. The designations employed in ILO publications, which are in conformity with United Nations practice, and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of the International Labour Office concerning the legal status of any country, area or territory or of its authorities, or concerning the delimitation of its frontiers. The responsibility for opinions expressed in signed articles, studies and other contributions rests solely with their authors, and publication does not constitute an endorsement by the International Labour Office of the opinions expressed in them. Reference to names of firms and commercial products and processes does not imply their endorsement by the International Labour Office, and any failure to mention a particular firm, commercial product or process is not a sign of disapproval. ILO publications can be obtained through major booksellers or ILO local offices in many countries, or direct from ILO Publications, International Labour Office, CH-1211 Geneva 22, Switzerland. Catalogues or lists of new publications are available free of charge from the above address. Preface The present paper is part of the contribution of the Development Policies Department to understand the emerging issues in development given the recent changes triggered by globalization of the world economy, and the responses in terms of national economic and social management. This paper deals with the impact of rapid technological change on skill needs for competitiveness in developing countries. Upgrading competitiveness is essential to growth with rising living standards and improved working conditions B increasingly, such upgrading needs the development of new higher value-added activities rather than the exploitation of existing resources and low wage, unskilled labour. Moving into such activities necessitates the creation of new skills and capabilities, regardless of the level of development of the economy. Emerging technologies call for more skills, higher levels of skill and different kinds of skill. The widespread application of information technologies also has to focus on the complex of education and training needed to handle such technologies. Most successful economies are raising the skill content of their labour force. However, skills should not be equated with formal education B this is a necessary but not sufficient condition for creating competitive capabilities. Formal education has to be enhanced by learning, the specific experience of handling particular technologies, …