-This article explores the promise, problems and pitfalls of vocational forms of secondary schooling when these are set up in developing, newly independent countries. Taking Malta as a case study, the author presents empirical evidence to examine some of the assumptions of human capital theory, and concludes that there are important limitations which stop 'trade schools' from responding adequately to the declared requirements for economic development. The reasons for the failure of such innovations need to be identified not only from within the educational institution, but also from the wider, macro-economic context.