Increasing competitiveness and boosting economic development in the South Caucasus

Context

The three countries of the South Caucasus – Armenia, Azerbaijan and Georgia – face dual challenges of combating poverty and promoting employment, particularly in rural areas and among vulnerable groups.

The economic situation is worsened by labour shortages, with many people lacking the skills needed to meet labour market demands. This hinders opportunities for sustainable economic development and employment, particularly in sectors with high job creation potential, such as tourism, viticulture, transport and logistics, construction, agriculture, garments and IT.

To break the cycle of poverty, these countries require economic growth that benefits the entire population. This, in turn, depends on a (highly) skilled, experienced workforce. However, the current vocational education and training system often does not adequately cater to the needs of the labour market. There is a particular lack of private sector involvement and practical training. Addressing these gaps is critical to promoting employment and creating more equitable opportunities.

Objective

The conditions for sustainable economic development and inclusive growth in the South Caucasus are improved, particularly in rural regions.

Approach

The programme uses an integrated approach to foster employment. It promotes supply and demand on the labour market to improve the basis for jobs. To achieve this, it encourages greater involvement of the private sector in vocational education and training and also increases the competitiveness of industry sectors that have high employment potential. The programme covers the following areas:

• Private sector promotion by supporting economic development institutions, clusters, selected companies and government institutions to improve the competitiveness of relevant sectors and develop sustainable business models.
• Vocational education and training by analysing education and training needs and supporting suitable education providers. The main focus here is on quality management, cooperation with the private sector and developing (dual) short-term and long-term training courses.
• Regional and international sharing of experience that allows the implementing partners in the region to learn from each other and establish links on different topics via relevant exchange platforms.

Last update: September 2024