Historically, the roles of the public and private sectors in VET have been characterized by the following broad stages: (1) unstructured and unregulated VET; (2) supply-driven, state dominated VET; and (3) market-driven VET. More recently, the combined forces of globalization, technological change, and liberalization of markets have forced governments to seek the collaboration of private-sector stakeholders in administering and delivering VET. The question is how to reform state-driven VET systems to deliver such training in response to the new requirements created by multifaceted, rapidly changing labor markets. The scope and effectiveness of the state's role in VET is central to, and inextricably linked with, the role of other institutions within the nongovernmental or private sector. Core tasks in the field of VET that are specific to government are as follows: laying the foundations for an overall national VET policy and system; mobilizing investment in VET and searching for incentives; and protecting the public from exploitative practices and ensuring equal access to VET opportunities. Contributions of the private sector may include the following: providing relevant, up-to-date information on labor market requirements; participating in the institutional framework for policy design and training delivery; co-financing VET; designing the content of VET; and evaluating and providing feedback on the VET system's overall performance. (Contains 14 references.) (MN)