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ECONOMY
STRATEGY
CHANGING GEARS
Zurab Pololikashvili has steered the Georgian economy to astonishing progress by promoting sweeping reforms and attracting foreign investors.
Zurab Pololikashvili
Minister of Economic Development
The fundamental policies dictating economic development in Georgia read like a wishlist for the modern world: the rule of law and property rights; minimal state fiscal footprint; few, low and flat taxes; single-digit inflation targeting; free trade; a flexible labour market with minimal state interference; simplified licensing; aggressive privatisation; means-tested, focused state assistance to the poor; and a lean and efficient civil service sector providing value for taxpayers’ money.
MAN OF ACTION
An impressive list, and under Zurab Pololikashvili, Minister of Economic Development, Georgia has ensured efficient execution as well—elevating it to the 11th easiest place in the world to do business according to the World Bank, and one of the most liberal labour markets of the world according to the Heritage Foundation—notwithstanding the Russian conflict and the global economic crisis.
Mr. Pololikashvili has previously served the government in various capacities, including as Deputy Minister for Foreign Affairs, a post that gave him in-depth knowledge of public services, foreign policies and international relations. His knowledge of international affairs was further broadenedduringatenureasambassador to Spain, which also allowed him to establish a wider base of contacts. Apart from the government, he has served as
senior manager with a commercial bank, which served to familiarise him with the needs and policies of the banking industry. All the knowledge and expertise that have come to him as a result of his earlier appointments have aided him immeasurably in his current position.
Mr. Pololikashvili took charge of the Ministry of Economic Development just as the financial meltdown was turning the tide. As a key member of the government and the cabinet, he has been instrumental in charting out the country’s plans for
he and the ministry faced in the wake of the meltdown was the restoration of confidence in the private sector by instituting policies that encouraged an increase in investment, and thus gave momentum to economic growth.
MILESTONES
“Georgia”, says Mr. Pololikashvili, “is a small but ambitious country,” determined to make good the growth plan it has charted out for itself. To realise this dream, the minister and his team have gone for a thorough overhaul of the country’s economic policies.
barriers and governmental intervention
Georgia’s economic policies aim at deep deregulation and private- sector development.
and involvement in business ventures to a minimum, have made Georgia attractive for extensive investments by foreign companies.
Since the enactment of these forward-looking policies, the country has been steadily climbing up the ladder of growth, if the awards that have come its way are any indication. Leading ranks in surveys conducted by prestigious organisations like the World Bank and Heritage Foundation have served as incentives for investors to invest in
is justified by the economic growth numbers: an astronomical 12.3% in 2007 and a creditable 2.3% in 2008 in spite of the background of economic crisis
is proof enough that the country is stable and governmental institutions function effectively.
been set in motion will continue with constitutional safeguards, so that Georgia’s policy frameworks are consonant with the spirit of democracy and economic liberty.
Development will lead the process and help foster economic relations with the international community as well. Ties with the European Union have been strengthened, and policies that enable fast economic integration with European and other international markets are being developed.
Critically, Georgia’s investment policy is geared to raise the country’s
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