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Title page 1

Contents 3

Acknowledgments 4

Executive Summary 5

Policy Priority 1: After improving access, now focus on improving opportunities 6

Policy Priority 2: Improve the Quality and Relevance of Tertiary Education 7

Policy Priority 3: Increase funding and improve the efficiency and management of spending 7

Policy Priority 4: Building the infrastructure and culture for scientific research 8

1. The Importance of Tertiary Education for Economic Growth 9

Three leading roles for tertiary education in economic growth in the South Caucasus 11

1. The skills role of tertiary education 12

2. The Innovation Role of Tertiary Education 13

3. Spillover effects of tertiary education 14

2. Who has access to tertiary education, and who does not? 15

3. Quality and Relevance of Tertiary Education 19

4. Funding for Tertiary Education 27

5. Scientific Research and Technology Transfer 31

6. Conclusion 34

Quick Overview Tertiary Education Systems in the South Caucasus 36

Figures 10

Figure 1.1. Aggregated quality score based on university rankings relative to GDP per capita 10

Figure 1.2a. Labor Force Participation Rates among Secondary and Tertiary Education Graduates 12

Figure 1.2b. Average rates of return to tertiary education are stable over time, while the share of tertiary workers in the labor force doubled 12

Figure 1.3a. Frequency of internet usage by education level and country income level 13

Figure 1.3b. Computer ownership is much higher among tertiary education graduates 13

Figure 1.4a. Research capacity in South Caucasus and other developing countries (Number of researchers per million inhabitants) 14

Figure 1.4b. Citable scientific documents produced per 10,000 inhabitants in selected countries 14

Figure 2.1a. Global rise in enrolments in tertiary education, comparing High-Income Countries to Low and Middle-Income Countries 16

Figure 2.1b. Enrolment in tertiary education in the South Caucasus region 16

Figure 2.2a. Youth population at eligible age for tertiary education (age 20-24) in South Caucasus countries 1990-2040 17

Figure 2.2b. Projected Enrolment in tertiary education in the South Caucasus countries 1990-2040 17

Figure 2.3a. Share of cohort attaining tertiary education (age 25-34 and age 45-54) 18

Figure 2.3b. Share of women and men attaining a tertiary education degree by age cohort and country 18

Figure 2.4a. Inequality in tertiary education attainment by parental education 18

Figure 2.4b. Inequality in tertiary education attainment by geography 18

Figure 3.1. Low university quality is associated with low adult learning outcomes 20

Figure 3.2a. Wage returns to tertiary education globally and South Caucasus region over time 21

Figure 3.2b. Wage returns for education, South Caucasus countries over time (secondary vs. tertiary), latest available surveys 21

Figure 3.3. Wage returns to tertiary and secondary education by gender, latest values available 22

Figure 3.4a. Wage returns to tertiary education by economic sector in Armenia 23

Figure 3.4b. Wage returns to tertiary education by economic sector in Georgia 23

Figure 3.5. Labor force participation by education level, highlighting latest values 23

Figure 3.6. Female Labor force participation by education level 24

Figure 3.7. Job composition in South Caucasus countries, tertiary education graduates 25

Figure 3.8. Skill types of jobs among young tertiary education graduates (age 25-34) 26

Figure 4.1. Tertiary education funding per student, Caucasus countries, EU and ECA 28

Figure 4.2. Inequality in public funding by wealth quintile 29

Figure 4.3. Share of students in public universities paying tuition fees, South Caucasus and reference countries 30

Figure 5.1a. Citable scientific documents relative to the country producing the most documents 32

Figure 5.1b. Citable scientific documents produced per 10,000 inhabitants in selected countries 32

Figure 5.2. Gross Domestic Expenditure on Research and Development 32

Figure 5.3. Research output in universities versus research institutes 34

Boxes 11

Box 1. Tertiary Education is offered in 'World Class Universities' and many other types of institutions 11

초록보기

Policymakers in the South Caucasus region all know a difficult truth: the performance of their universities is disappointing. None of the institutions in the region can boast of a world-class status; none reach a meaningful rank in any of the university rankings. The countries’ institutions, on aggregate, perform much below what is expected given the level of economic development. This report aims to help policymakers in ministries of economic affairs, ministries of finance, and ministries of education understand this sector of national importance. Even more importantly, it hopes to convince the leaders of the tertiary education institutions themselves to take on challenges facing this sector more decisively. The focus of the report is on tertiary education as a source of economic growth, recognizing that tertiary education has other important spillover effects. There is plenty of evidence that tertiary education also helps societies beyond economic returns in terms of improved health, resilience, awareness of climate change, and better-governed societies. Scientific research is a global public good in and of itself, whether it helps societies to understand their cultural traditions better or helps them to find a cure for cancer. These non-economic returns do not, by definition, contrast with economic returns: non-economic and economic returns require accessible, high-quality, relevant, well-funded tertiary education systems that combine teaching and research.

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