The state of vocational education and training (VET) in the following countries was examined: Armenia; Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Mongolia, the Russian Federation, Turkmenistan, Ukraine, and Uzbekistan. The study focused on the following topics: social and economic developments since 1990; VET systems' development since 1990; and governance and management of VET. Key findings and conclusions were as follows: (1) the large role of the shadow economy in all the countries under consideration has resulted in a poor tax base and a poor record of collecting taxes that have in turn made it difficult, if not impossible, to increase the level of funding for public services, including VET; (2) the VET systems of the New Independent States and Mongolia require considerable upgrading and modernization if they are to be brought into line with converging international standards; (3) all reform attempts must be preceded by a balanced budget for VET, and attempts to legitimize the shadow economy should include appropriate training provision; and (4) major issues that must be decided include the role of lifelong learning, responsibility for funding VET, and the point in the reconstruction cycle when investment in fundamental research can be afforded. (The following items are appended: information on donor cooperation; diagrams and key data of the study countries' VET systems; and four data tables.) (MN)