The key issues, alternatives, and implications for developing countries to consider when designing systems to define occupational standards, related training standards, and assessments were analyzed. The analysis focused on the following issues: the rationale for development of standards; clarification of definitions, terminology, and assumptions; improvement of stakeholder involvement; analysis of labor market information; development of occupational standards; assessment of occupational standards; linkage of occupational standards with training standards; and governance, financing, and administration of national standards systems. The following were among the key recommendations regarding developing occupational and training standards: (1) although the process of developing standards may be initiated at the local level, some national leadership is needed once pilots have been completed and resources are available; (2) development of demand- and output-driven standards hinges on formal involvement of employers, professional associations, and labor representatives from the outset; (3) multiple sources of labor market information are required; and (4) leadership for linking occupational and training standards can reside with training institutions. (The following items are appended: overviews of the processes of defining occupational standards and linking occupational and training standards; sample occupational standards legislation; and a summary of selected standards systems in 10 countries. The bibliography lists 22 references.) (MN)