Starting from 2005, Georgia saw a rapid decline in tertiary gross enrollment. In a country where poverty reduction is a key priority and where labor market outcomes have not been particularly strong during the last decade, the decline in higher education enrollment might appear as an additional obstacle to human and economic development.
Georgian reforms have become an internationally traded commodity. Underappreciated and no longer wanted at home, some of Georgia’s former reformers are doing well-paid consulting gigs in Mongolia, Central Asia, Ukraine, Moldova, and further away emerging markets. Sensing a business opportunity, a group of former government officials groomed by Kakha Bendukidze, the mastermind of Georgian reforms, has recently established a consulting agency, “Reformatics”.
Economists disagree whether it was a good decision to reestablish the Georgian competition authority. When some years ago it was removed, the underlying logic was that a non-existing authority cannot be corrupt, and, more importantly, cannot harm the economy through misguided decisions. Assuming that corruption will not be a problem for the competition authority, neither now nor in the future, regulating markets is still a highly delicate issue which yields many possibilities to go wrong.
Open-air markets, so-called bazaars, are considered by many Georgians to be relics of the past. Progressive people buy in supermarkets with all its amenities: clean areas, shiny floors, the temperature regulated at a convenient level, the products placed in order and often arranged tastefully. Only backward people buy in a bazaar if there is a supermarket available.
Starting from 2005, Georgia saw a rapid decline in tertiary gross enrollment. This project outlines the potential reasons behind decreasing enrollment rates and discusses the role of institutional changes, wages, returns to education, external and international migration, and employment patterns.