The role of education in the growth of the Georgian economy

Abstract

The article - "The role of education in the growth of the Georgian economy" – is dedicated to the economic problem of Georgia, particularly unemployment, and explores the connection between the quality of education and this issue. An even more significant concern is the disproportionately high number of unemployed individuals, accounting for 18.5% of the working population. Among them, a remarkably large percentage consists of graduates from higher education institutions (32.3%) and vocational schools (over 40%). The author attributes this situation to the low quality of education in both types of institutions and the mismatch between the professions and competencies acquired by students and the labor market requirements. The article mentions that Europe experienced a similar problem before Georgia has faced it. To address this issue, the European Commission launched several programs and, in 2006, adopted an official document, “Knowledge into practice”. This document recognized the new model of higher education, known as the "Triple Helix" and European countries gradually started transitioning to this model. The authors of the article recommend the Ministry of Education and Science of Georgia, along with all its affiliated universities, to get acquainted with this model. By adapting it to the local conditions of Georgia, they should commence preparatory work for its practical implementation. It is suggested that each university in Georgia be encouraged to identify a “Center of Excellence” they are proud of and can expand to create a strong bond with local business firms. The relationship should serve students well. The strength of the "Triple Helix" model of higher education in the article is the close cooperation of universities with the business sector and the government of the country. The government of the country establishes the educational framework and regulations, while the business sector provides specific demands for skilled professionals and universities fulfill these. Graduates trained under this model are subsequently employed by the businesses that requested their specific skills. The author of the article claims that this model has worked in the UK, USA, Germany, Serbia and elsewhere, and will work in Georgia as well. In addition to the Triple Helix model, the article also emphasizes the significance of human capital as an essential factor of production contributing to economic growth. This has been developed by Professor Gary Becker of the University of Chicago (Becker, 1975). Furthermore, the article highlights the successful implementation of Co-Operative Education in the US, where students are placed in the workplace alternating with their academic studies. This program has been in place since 1906 at the University of Cincinnati and has resulted in half of the Co-Op students being offered full-time employment upon graduation (University of Cincinnati, 2021). The article notes that the necessity for education to collaborate with business has emerged in recent years. This was related to the acceleration of technical progress, which led to (and still leads to) the "aging" of professions. Added to this is the already outdated traditional thinking about education that education is the transfer of knowledge and the conduct of research. The new XXI century required education to play the role of a "public servant". This should be reflected in the smooth employment of the staff trained by it. This can only be achieved through deep and solid ties with the business sector. In this way, Georgian universities will be transformed into full-fledged market entities. They will realize that the "product" they create in the market (graduate specialist, research innovations) depends on consumers or employers and tailor the education process to their needs. According to the authors of the article, this will be a major turning point in Georgia's higher education, which will play a major positive role in the country's economic growth.