This ETF assessment provided an overview of human capital development issues in Georgia, and analysed the accessibility and quality issues in education and the VET system in particular. Following a review of the policy responses to the main challenges, the analysis identified key features of the human capital development system in Georgia.

The report established that the country has made significant social and economic improvements over the last decade, and gained competitive advantage in services. However, it noted that economic growth does not produce enough jobs, most of which are currently concentrated in the capital. There is continuously low demand for high-skilled labour in Georgia, which also leads to the modest use of human capital in the economy. The skills mismatch signals some inefficiencies in the labour market as well as the low demand for labour. Young people in particular suffer from a long and difficult transition from school to work, and finding their first job is the most challenging aspect. Nevertheless, the existing statistics show that secondary VET and higher education graduates fare better in the labour market, compared to the graduates who only have secondary general education.

The results of the analysis point to the VET system as one potential part of the solution in addressing the above-mentioned issues. The report discussed whether the potential that VET has is fully used to address those economic and social challenges previously outlined. Although VET alone cannot solve all the problems, it can still contribute to the solution. However, the analysis identified two obstacles that have to be overcome: disparities in access and low participation in VET, and varying quality and relevance of VET provision. There was a particular focus on the VET system from a lifelong learning perspective and on issues of its accessibility, relevance and attractiveness. The Georgian authorities are well aware of the challenges and have put in place an ambitious reform agenda to achieve attractive, accessible and relevant VET. Key policy responses to reach these objectives seem highly relevant and well designed.

The analysis in this report points to the policy implementation issues, and tries to separate 'what is feasible from what is not' in the policy implementation. A reality check is necessary to distinguish between the 'wish list' and the actions that can actually be implemented by the Georgian policy makers, if they want VET reform to be truly successful. The VET system can certainly contribute to both economic development and poverty reduction in Georgia, but it needs to be finely adapted to the socio-economic realities of the country. Moreover, close coordination and cooperation between the actors in general education, VET and higher education is imperative, while cooperation with the main stakeholders (employers in particular) requires a new approach of co-management and power sharing, rather than simply communicating and consulting with the ministry.