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attractiveness before international
participates in economic and investment forums and is actively involved in campaigns to attract FDI. Notably, the USAID Business Climate Reform Survey 2008, which covered existing and potential investors, showed that the largest share of FDI (46.1%) came from government campaigns (8.4%). Consequently, Mr. Pololikashvili’s ministry is working for further diversification of FDI sources and sectors for investment.
the cornerstone of policymaking in Georgia today is economic growth based on deep deregulation and private-sector development. Among the most critical policy cogs on the anvil is the historic Liberty Act, which contains a coherent package of bold measures to constitutionally enshrine its basic policies, reassuring investors
intent of the government to pull all stops is clear from a proposed ban on new taxes or tax rate increases without a nationwide referendum, in order to preserve Georgia’s status as one of the most progressive tax regimes in the world.
EMPLOYMENT GENERATION
and Action Plan is another important framework being developed by the Ministry of Economic Development.
making and implementation for the next 3-10 years in order to boost the country’s competitive edge in the international scene and achieve sustainable growth, thereby generating employment for its citizens.
Employment generation has also received a boost in the form of the National Program for Vocational Education and Training Infrastructure Development: VET for Employment.
increase the role of the private sector
One of Georgia’s
most significant trade partnerships has been with the GCC countries.
ECONOMY
in VET infrastructure, helping satisfy professional human resource needs. To fulfil this objective, a huge part of state property owned in the VET sector will be transferred to the private sector at nominal prices.
FOREIGN TRADE
To create a business-friendly environment for global investors, Mr. Pololikashvili’s ministry has drastically cut costs associated with foreign trade. It has also begun to provide information and find partners and suppliers for business ventures through the Georgian National
in promoting and exposing Georgian exports to international markets— an agenda in which the country’s upbeat tourism industry has given it solid support. In fact, a strategic Egyptian delegation to the country recently commented that “Georgia has a great potential to become the (tourism) capital in the Black Sea basin.”
A WTO member since 2000, Georgia places no quantitative restrictions on trade and has zero tariff on the majority of goods. Reforms in the Technical Regulation System have also helped the country remove technical barriers to trade Georgian goods and services in the international market.
Further, Georgia is a beneficiary of the EU GSP+ Scheme in the CIS, which grants local companies the right to export 7,200 categories of goods
increase in the EU’s share in Georgian exports to 26% from 17% in 2003, and a comprehensive free trade agreement with the EU is now in the works.
Apart from such international diplomatic arrangements, the Ministry of Economic Development has not shied away from exciting new approaches to the rapidly evolving world economic order. A recent example of this came during Mr. Pololikashvili’s meeting with ‘bloggers and youtubers’, promising to support those who promote Georgia’s image to the world on the information superhighway. As the minister noted, the increasingly-digitised tourism industry remains one of Georgia’s biggest foreign-trade magnets, and such
smart initiatives are certain to boost its fortunes.
KEY PROGRESS INDICATORS
Easy access to the major markets of Europe, Far and Middle East and CIS countries has made Georgia an ideal receptacle for foreign investments. Georgia’s FDI growth between 2003 and 2007 stood at a staggering 492%, and the investment inflow in 2007exceeded USD2bn.
Between 2003 and 2009, the per capita GDP also increased from USD2966 to USD4747, indicating a sharp enhancement in the quality of life in the country. Further, thanks to prudent policymaking, Georgia more than halved its public debt-to-GDP ratio in 2008.
All this indicates that the country’s potential is being effectively tapped.
the global financial crisis only vindicates the government’s faith in the economy’s fundamental strengths. Investors who have done business with the country before the Rose Revolution will attest to the sea change that has been brought about under the Saakashvili government in general and Mr. Pololikashvili’s ministerial charge in particular.
PARTNERSHIP WITH THE GULF COOPERATION COUNCIL (GCC) AND THE ROAD AHEAD
One of Georgia’s most significant trade partnerships has been with the GCC countries. Mr. Pololikashvili, who has established cordial relations with these states, is enthusiastic about the future.
Georgia has partnered with the GCC in transferring technology, know-how and best practices, and
profitable relationship is set to deepen, as can be gauged from the frequent diplomatic and business visits made by President Saakashvili and Prime Minister Gilauri to the GCC states.
partnerships and its well-entrenched sense of fiscal responsibility, Georgia has taken a giant step towards economic freedom, one that will decisively shape the post-soviet era in the Caucasus region.
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