Implementation of diversified financial mechanisms in VET
Status: Complated
Project Milestones: Start date: 15.12.2021 End Date: 30.06.2022

ISET Policy Institute team supports the Ministry of Education and Science of Georgia in implementing diversified financial mechanisms in Vocational Education and Training (VET). The project is implemented with the support of the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH. 

The Government of Georgia has made significant progress in reforming the vocational education and training system. The MoES has been implementing the VET Development Strategy 2013-2020 and associated action plans and ‘The Unified Education Strategy of 2017-2021’. However, a recently developed VET strategy for 2021-2025 highlights the need for effective VET funding mechanisms. 

As per GoG Resolution #244, the Rule of VET financing identifies three mechanisms of funding public VET provision: Voucher, Programme, and Targeted Programme financing. The project aims to develop a voucher cost methodology for each type of VET programme (including short-term training and retraining courses), hence providing an adequate financing tool for the state to fund different types of VET programmes. The project will also ensure the prioritization of Gender Equality and Social Inclusion (GESI) as part of the Voucher Funding and Targeted Funding to eliminate the exclusion of any groups from the funding opportunities. 

The project will use a bottom-up approach that is widely practised in developed countries. Such an approach will nourish the development-oriented attitude of the VET providers and encourage the VET providers to streamline their GESI and SEN approaches/policies through efficient and adequate use of provided financial resources.

Throughout the project, the project team plans to:

  • Conduct a critical review and analysis of existing policy options developed by the GGF GE67 project 
  • Elaborate a detailed description of the new financing model 
  • Develop a new detailed cost methodology for voucher programme financing mechanisms 
  • Describe the business processes for diversified financing mechanisms in VET 
  • Develop algorithms and calculation coefficients for a performance-based financing model 
  • Develop draft legal regulation reflecting specifics of diversified financing mechanisms of VET