Skill Formation and Utilisation in the Post-Soviet Transition: Higher Education Planning in Post-Soviet Georgia

Changes in the former Soviet system had a dramatic influence on higher education in Georgia. The main objective of the current article is to analyse implications of the post-Soviet transition for the skill formation and skill utilisation system in Georgia. In particular, the study analyses recent trends in Georgian higher education including privatisation and economic liberalisation. The discussion builds upon theories of transition and relevance of skill formation theories to the post-Soviet transition. The article argues that increasing competition among public universities and newly emerged private universities has not improved the quality of higher education provision. On the contrary, it has contributed to an imbalance between the labour market's demand for skills and awarded qualifications, a mismatch and irrelevance of skills and high unemployment rates among university graduates. The article demonstrates that economic approaches in the transition context could not explain the complex logic between the skill formation and skill utilisation mechanisms. It further concludes that the discrepancies between the skill formation and skill utilisation systems had a negative impact upon skill modernisation in Georgia.