Tertiary Education for Economic Growth in the South Caucasus

Investment Rating - The report does not explicitly provide an investment rating for the tertiary education sector in the South Caucasus region. Core Insights - The tertiary education systems in the South Caucasus are underperforming relative to the region's economic development, with no institutions achieving world-class status [12][40]. - Policymakers are urged to recognize the strategic importance of tertiary education for economic growth, innovation, and skill development to avoid the 'Middle Income Trap' [16][36]. - The report identifies four key policy priorities: improving access and equity, enhancing quality and relevance, increasing funding and efficiency, and fostering scientific research [18][33]. Summary by Sections Executive Summary - The performance of universities in the South Caucasus is disappointing, with aggregate quality scores significantly below expectations based on GDP per capita [12][13]. - Tertiary education is crucial for providing necessary skills, facilitating innovation, and supporting economic development [15][19]. Policy Priorities - Policy Priority 1: Improving Opportunities - Youth enrollment in tertiary education has been volatile due to demographic declines, with significant reductions in the 20-24 age group across Armenia, Azerbaijan, and Georgia [20][70]. - Future projections indicate stabilization in enrollment trends, providing an opportunity for strategic policy development [20][66]. - Policy Priority 2: Quality and Relevance - Concerns exist regarding the quality and relevance of tertiary education, with graduates often underprepared for the labor market [23][24]. - There is a mismatch between the skills provided by institutions and the demands of employers, necessitating curriculum reforms [25][49]. - Policy Priority 3: Funding and Efficiency - The South Caucasus countries spend significantly less on tertiary education compared to EU averages, relying heavily on tuition fees [26][27]. - Increased public funding is essential for improving educational quality and institutional stability [27][30]. - Policy Priority 4: Scientific Research Infrastructure - The region lacks a competitive scientific research infrastructure, which is vital for innovation and economic growth [31][32]. - Governments are encouraged to invest strategically in research capabilities and foster collaboration between universities and industries [32][60]. Importance of Tertiary Education for Economic Growth - Tertiary education is essential for producing advanced skills, driving innovation, and generating economic spillovers [35][46]. - The report emphasizes the need for diverse educational offerings to meet labor market demands, including professional training and micro-credentials [35][46]. Access to Tertiary Education - Enrollment trends in the South Caucasus have been affected by demographic changes, with significant declines in the youth population [64][70]. - There are high levels of inequality in access to tertiary education, particularly for students from disadvantaged backgrounds [66][67].