Better qualified, more opportunities on the labour market

The countries of the Western Balkans are facing a paradoxical situation: on the one hand, companies are urgently looking for skilled labour, while on the other, the region is suffering from high unemployment. This is particularly true for young people, whose unemployment rate is between 24 and 49%. One of the main reasons for this disparity is the poor quality of vocational training and its distance from the actual labour market.

Vocational colleges and universities are severely underfunded in the Western Balkans and usually lack suitable, modern infrastructure and equipment. In addition, training methods are often outdated and lecturers and teachers are not sufficiently well trained. Above all, however, there is too little cooperation with the private sector in order to fulfil their needs with appropriate training content. This results in a blatant lack of sufficiently qualified personnel, which jeopardises the region's growth prospects. According to studies, this is actually one of the biggest obstacles to further economic development in the region.

KfW sets up a regional fund

To counteract this, KfW has established the ‘Regional Challenge Fund’ on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ). Its aim is to provide better training for students and vocational school pupils in order to increase their employability. Similar to the German dual system, this is achieved for vocational students primarily through close cooperation with private companies in order to adapt the training content more closely to the needs of the labour market.

The fund works in the six national economies of Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia and Serbia. There, it promotes consortia of state-recognised vocational schools and private companies, which can apply for support from the fund for joint vocational training projects. This applies both to better infrastructure and equipment as well as to training content and the further training of teachers. The implementation partner is the ‘Western Balkans 6 Chamber Investment Forum’ (WB6 CIF), a regional chamber organisation. Universities can also apply for funding from the RCF.

The first three calls for proposals have already taken place - and generated an overwhelming response. 528 companies and institutes showed an interest in funding, and in the end 99 projects from the six countries were selected. 4,200 trainees and students benefit from the programme each year.

Almost half of the companies involved come from the manufacturing industry, as well as the IT sector, healthcare, and tourism. They include small enterprises and enteprises with more than 500 employees. 44 million euros in funding has already been pledged.

In addition, the fund will promote a regional dialogue via the WB6 CIF so that education stakeholders can share their experiences. Last but not least, the Challenge Fund's activities should also help to bring the countries closer to the relevant EU standards. After all, all six countries are striving to join the EU and must come closer to the European Union's standards in a wide variety of areas; this also applies to the education sector.

Three examples from Bosnia and Herzegovina show how different the measures invested in are:

Two classrooms at the University of Veterinary Medicine Sarajevo are being renovated and animal models are being purchased. Pamela Bejdić, Professor of Veterinary Medicine, comments: ‘We will be pioneers in terms of ethics, as we will give students the opportunity to practise on models before working with live animals. Our faculty will be at the cutting edge of technology and among the best in Europe. We will purchase a large dog model alone, on which all kinds of operations can be practised. We are also planning to purchase another dog model, a pig, a cow, two cats and partial models for castrations. An ultrasound machine and a blood analyser are also to be purchased.’

Mechatronics engineers and mechanical engineers are being trained at a vocational school in Ilijaš. The buildings here are to be renovated inside and out, with floors, windows and doors being replaced. State-of-the-art technology - including in the IT sector - is being purchased.