Knowledge and Skills for the New Economy: The Role of Educational Policy. Training Matters: Working Paper Series.

Traditionally characterized by a mixed human capital and human skills and resources model, the German education and training system has come under pressure from structural changes in economy and society. The emerging "new economy" is more than the sector of information technology industries. Beyond global action and rapid exchange of information, it is characterized by a new mode of economic activities in all economic sectors and is based on knowledge as the crucial production factor, on new forms of employment and new organization of work, and on new standards of quality of products and services. The "new economy" must be linked with a knowledge-based society. Against the background of continuous change, a new set of general, personal, and social competencies as complementary to specialized and technical qualifications seems to be needed. The old problem of equal chances in education and training is raised and must be revisited in the New Economy and knowledge-based society. A modern welfare state conception has to provide both promotion of the talented and special support for the disadvantaged. Lifelong learning has become a crucial prerequisite of the knowledge-based society. Facing the knowledge-based society, education and training policies in Europe more and more follow the emerging paradigm that stresses individual responsibility for one's educational career. (YLB)