ADB $70 Million Loan to Help Modernize Skills Training in Georgia

By Natalia Kochiashvili

Wednesday, December 9

The ADB is launching the ‘Modern Skills for Better Jobs Sector Development Programme’, which aims to improve the quality and relevance of VET in priority economic sectors to ensure it is aligned with evolving labour market needs.

Reforms include increasing the VET budget by 23% and VET teachers’ salaries by 30% to recruit and retain qualified teachers.

The Asian Development Bank (ADB) approved a $ 70 million loan to support vocational education reform in Georgia. According to the bank, this amount should be used to increase the productivity of the Georgian workforce and increase competitiveness.

"Education and skills development are the foundation of all successful economies in the 21st century," said Rie Hiraoka, ADB Central and West Asia Social Sector Director. According to her, the program will increase chances of finding a better job and increasing revenue for its beneficiaries .

According to the ADB, it is true that Georgia adopted a new law on vocational education in 2018, but this direction still needs to strengthen the policy and institutional framework and improve the quality. ADB notes that the discrepancy between labor market demand and staffing skills is a testament to the challenges of the vocational education and training (VET) system.

Given the rising unemployment caused by Covid-19, the project is designed to strengthen industries that have a special role to play in tackling pandemics or contributing to economic recovery, such as information and communication technologies and medical and pharmaceutical manufacturing. It will fund employees in the fields to help them acquire new skills and employment in areas where demand is growing.

“Given the gender inequality in access to education and employment, the program also includes specific tools to increase access to vocational education and training for women, as well as ethnic minorities, people with disabilities and other vulnerable groups," said ADB Resident Representative in Georgia, noting that developing Georgia's human capital and realising its potential is an important part of ADB's strategy.

According to ADB, the project will also fund the creation of two innovative skills development hubs in existing vocational schools in Kutaisi and Telavi, where personnel will be trained in the following fields: Electronic Engineering, Information and Communication Technologies, Medical and Pharmaceutical Manufacturing, Fashion and Design, Water Engineering, Furniture Manufacturing and Carpentry and Services (Hospitality and Tourism).

ADB's program supports institutional reforms, such as a new regulatory framework for adult education, enrollment rules in vocational education and training institutions, and a fairer funding scheme to increase youth and vulnerability participation, a 30% increase in the salaries of vocational education teachers to attract and retain qualified teachers.

"The program also aims to increase private sector participation in vocational education and training, including private sector participation in the development of labor standards and on-the-job training, public-private partnerships and government vouchers for students enrolled in priority programs at private vocational education institutions." the bank said in a statement.