SUSTAINABLE DEVELOPMENT AND MODERN CHALLENGES OF HIGHER EDUCATIONAL INSTITUTIONS IN THE REGIONS OF GEORGIA

Natia Tsiklashvili

Batumi Shota Rustaveli State University

Georgia

https://orcid.org/0000-0003-0638-7376

Tamari Poladashvili

Batumi Shota Rustaveli State University

Georgia

https://orcid.org/0000-0002-7597-7997

Purpose: Education is one of the fundamental factors of economic prosperity in all respects. It is impossible to talk about the sustainable economic development of the country without substantial investments in human capital and investment into higher educational institutions. Education improves the standard of living of the population and expands the opportunities to receive more benefits, which will be equally important for both the individual and the society as a whole. There are growing initiatives among educated people such as entrepreneurship, technological development, etc. At the same time, the distribution of income between population groups is improving. The given paper discusses the scientific literature in the field of sustainable development through higher educational institutions. Scholars of economic theory emphasize a few major aspects that show the role of higher education in economic growth:  Alongside education, human capital gradually increases which leads to increased competitiveness of the labor force, not only in the national but also in the international labor market (Neoclassical growth theory).  The high level of education can increase the efficiency of the economy, investment in human capital, innovation, and knowledge are significant contributors to economic growth. Hence, it focuses on positive externalities and spillover effects of a knowledge-based economy which leads to economic development (endogenous growth theory). Education can facilitate the diffusion and transfer of knowledge. Hence, it supports macroeconomic sustainability and the economic conditions of individuals.

Methodology / approach: To address the local issues, the present article researched ten educational institutions across Georgia, including state and private HEIs. Qualitative research was done by analyzing in-depth interweaves of representatives from each institution, and respondents were rectors/vice-rectors/heads of quality assurance service at the institute.

Results: The result shows that there is a number of challenges that institution face in order to maintain sustainable development and be strong links to education and the labor market. Mostly it’s connected with bureaucracy, insufficient finances they receive, and local challenges that differ across the regions.

Originality / scientific novelty: The article identifies components hindering the sustainable economic development of higher educational institutions of Georgia.

Practical value / implications: For the sustainable economic development of universities and educational universities located in the regions of Georgia, we have developed recommendations and proposals that will significantly improve their current situation.

Key words: Higher education, sustainable development, higher educational institutions.