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Journal number 3 ∘ Givi Bedianashvili Murman Tsartsidze Nino Mikeladze Zviad Gabroshvili
Modern globalization, human capital and economic growth in Georgia:macro aspect

Expanded Summary 


In the modern global environment, the problems related to human capital and economic growth are gaining special importance. First of all, it is necessary to reveal the specificity of the globalization process itself, which determines the features of the functioning and development of the socio-economic systems of the world and individual countries, new requirements and challenges for human capital in the context of economic growth. In addition to the already existing features of globalization, it is necessary to take into account the specifics of small countries. The research showed us that it is acceptable to take into account that small countries are distinguished by different mechanisms of functioning and the development of socio-economic systems. The purpose of this study is to systematically analyze the relationship between human capital and economic growth in small countries, and to develop separate recommendations for Georgia, taking into account health, education, and skills.

The methods of induction, deduction, qualitative, quantitative, comparison, statistical analysis, and benchmarking were used in the research process. The research itself included the processing of existing literature, the search for statistical data (including with the direct help of the National Statistical Service of Georgia), the sorting and quantitative analysis of the data found, as well as the consideration of expert opinions within the research. Source of statistical data: International Monetary Fund (IMF), World Bank (WB), and United Nations (UN), as well as materials of the National Statistical Service of Georgia. Econometric research methods and Artificial Intelligence (AI), in particular, Machine Learning (ML) models were used.

The modern world globalization process encourages humanity to reconsider the role and importance of the entire system of upbringing and education in the development of public potential and the formation of a progressive civilized public mentality corresponding to the 21st century.

In the context of modern confrontational globalization, the concept of human capital is still relevant and of great importance. Human capital refers to people's knowledge, skills, experience, education, and talents that can be used to create tangible and intangible value.

Confrontational globalization is characterized by tense relations between states, competition, and political and economic conflicts. In such a situation, it is important to develop and attract highly qualified human capital to ensure competitiveness and sustainability in the face of global competition.

Human capital becomes the main resource that determines the economic growth and development of the country in the period of confrontational globalization. It is important to invest in education, science, and innovation to develop citizens' skills and knowledge. This will help create a highly qualified workforce that can compete in the global labor market.

In the context of confrontational globalization, the concept of human capital is still relevant and of great importance.       

A preliminary empirical analysis based on econometric models shows that individual expenditures on the development of human capital cannot affect economic growth, which may be due to the nature of the long-term effects of expenditures, as well as the inefficiency of their structure.

It should be noted that it is important to develop social infrastructure, including the health system and social security, to ensure human well-being and development in the country. Healthy, educated, and motivated people can work efficiently and contribute more to the economic growth of the country.

Preliminary empirical analysis based on machine learning indicates the relatively weak role of the first level of professional and higher education in the incomes of workers, which indicates the relevance of the qualitative development of the relevant institutions;

The status and prestige of the professional education system, which is considered secondary compared to general and higher education, must be increased. It is less relevant to the population of the country and is considered a separate part of a single education system.

The educational reform, including the radical transformation of the professional education system, should be implemented in the complex of joint development of the secondary, professional, higher education and scientific education system. Due attention should be paid to further development of work-based vocational training methods;

In order to strengthen the impact of human capital on economic growth, it is important to develop the Georgian labor market, its infrastructure, and a unified information system. It is also necessary to develop a mechanism for labor market research, analysis, and forecasting, which is necessary for training professional staff corresponding to its requirements for the correct orientation of the professional and higher education system.

At the stage of confrontational globalization In the context of the growth of uncertainty, in the context of the qualitative development of human capital, it is very relevant to focus on the skills of the future in the training of entrepreneurs and specialists, as well as the development of adaptation skills, taking into account the best practices in the world.


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