October 2021

Star Report

Georgia II Compact

In 2013, MCC signed a $140 million compact with the Republic of Georgia to increase the earning potential of Georgians through holistic improvements in education. This was the first MCC compact to focus exclusively on education. To address the identified constraint of a lack of an adequately trained workforce to meet labor demands, MCC and Georgia designed a compact that targeted: the quality of general education through rehabilitation of deteriorating schools, training for educators and school directors, and support for education assessments; technical and vocational training programs to provide the skills that businesses in the country demand; and the development of a higher education partnership to help modernize science, technology, engineering, and math education in three of the country’s top universities.

  • Signed: July 26, 2013
  • Entry into Force: July 1, 2014
  • Compact End Date: July 1, 2019

  1. Executive Summary

    The $140 million compact between the Republic of Georgia and MCC aimed to improve science, technology, engineering, and math education, and included investments in general education, technical training, and advanced degree programs.

  2. Country Context

    Georgia has been a strategic partner of the United States since the country’s independence from the Soviet Union in 1991. Georgia’s growth since independence has been characterized by sharp disparities, with poverty persisting notably in rural areas.

  3. Improving General Education Project

    The Improving General Education Quality Project included infrastructure enhancements to the physical learning environment in schools, training for educators and school managers, and support to national and international education assessments.

  4. Industry-Led Skills and Workforce Development Project

    The Industry-Led Skills and Workforce Development Project focused on the linkage between market-demanded skills and the supply of Georgians with relevant technical skills.

  5. STEM Higher Education Project

    The STEM Higher Education Project supported delivery of high-quality STEM degree programs in Georgia. The project sought to modernize STEM higher education through a partnership that introduced high-quality, U.S.-accredited bachelor’s degrees.

  6. Compact Changes

    Over the course of the compact, no major modifications to the Georgia II Compact were introduced. The compact is expected to largely achieve the original program and project objectives, as measured by MCC-funded independent evaluations.

  7. Coordination and Partnerships

    The effects of the compact were amplified through successful partnerships between MCC and the Government of Georgia, and also the U.S. Embassy, Georgian private sector, and a number of domestic and international organizations.

  8. Policy and Institutional Reforms

    The compact built reforms to improve Georgia’s school operations and maintenance into its design, including conditions precedent tied to disbursements and an incentive fund.

  9. Beyond the Compact

    The Georgia II Compact led to many additional programs beyond the original scope of investments. Significantly, the compact raised the profile and importance of developing the workforce throughout the country.

  10. Lessons from the Compact

    This section offers overarching and project-level lessons from MCC’s experience developing, implementing, and closing the Georgia II Compact. Several compact lessons overlap and complement lessons derived from the independent evaluations of each project.