This report examines the constraints countries face in implementing vocational education and training (VET) systems and related policies, analyzes how some countries have successfully implemented reforms, and evaluates VET reforms in central and eastern Europe, the former Soviet Union, and other countries in transition to a market economy, such as China. The Introduction summarizes the results of studies of 16 countries and 2 territories: Hungary, Poland, the Czech Republic, The Russian Federation, Kazakhstan, China, Indonesia, Malaysia, the Republic of Korea, Chile, Mexico, South Africa, Tanzania, Zambia, Egypt, Jordan, and the West Bank and Gaza. Each of the 17 countries listed has an entire chapter devoted to its unique experience. The chapters analyze the labor market developments that determine the demand for VET, the supply response of the VET system, the problems that arise in matching demand and supply, and the major innovations in resolving these problems. Labor market analysis is restricted to labor regulations and indicators relevant to the demand for skilled and technical workers. VET supply responses were categorized into secondary and postsecondary vocational and technical education, pre-employment vocational training, and in-service or on-the-job-training. Included for discussion are the results of two special papers---on the lessons of Australia's comprehensive VET reforms and the applicability of Germany's dual system to low- and middle-income countries.