This chapter focuses on three main issues related to human capital in Belarus: how skill deficiencies are affecting SMEs ability to move to from low to high value added activities, lagging regional competitiveness and entrepreneurship as a means to boost catch-up, and how the knowledge economy is setting new quality and equity requirements for VET. While many of the issues related to knowledge and digital economy – a cross cutting issues in all three issues - equally affect state owned companies and the public sector in general, the focus of the assessment is on the private sector and SME and entrepreneurs. The focus was chosen due to the contradiction in their skills development, employment and economic potential and their contrasting relative absence VET planning and provision – formal and non-formal. In the view of the ETF, they require immediate attention as not addressing them could jeopardise progress towards strategic priorities of the country towards innovation, growth and competitiveness – all the while maintaining the inclusive nature of economic growth and raising the quality of life of citizens.
While these problems are not entirely new, the economic reality of today means that they have evolved into long-term policy challenges that are at times not aligned with the government other priority policy of supporting state-owned companies. The more detailed analysis of reasons for their persistence which this assessment offers, as well as the associated recommendations, might add value to the ongoing efforts of authorities, stakeholders and international partners in Belarus to move ahead through better education and training for all.