Page 11 - GEORptOct20

US State Department issues largely favourable report on Georgia investment climate
Many Georgian voters are yet to make up their minds.
Of the 88% of respondents who said they would be going to the polls, 59% have not yet decided who to vote for, according to a National Democratic Institute poll published on September 14. Consequently, the results of the election will mostly depend on the votes of undecided.
When deciding which candidate to vote for, the population will first take into account the party's economic policy (36% ), or health policy (12% ) or rule of law policy (12% ), the survey concluded.
The problematic point mentioned by both the US State Department and the European Parliament, namely the judiciary system, as well as the poor standard of living in the country and possible resurgence in the number of COVID-19 cases of late, make the outcome of the general election more unpredictable than the polls would suggest.
The US State Department has released its 2020​ ​Investment Climate Statement​ o​ n Georgia, which includes a largely favourable assessment. The only significant criticism relates to confidence in the impartiality of the Georgian judicial system and rule of law, which the statement describes as undermined by “disputes over property rights at times”.
“While reforms have improved the independence of the judiciary, politically sensitive cases are still vulnerable to political pressure,” the report reads.
The report includes a neutral assessment of developments related to Anaklia deep sea port project on the Black Sea coast, stating: “The government terminated its contract with the Anaklia Development Consortium in 2020, asserting the consortium did not mobilize the capital necessary to implement the project. However, the government said it remained committed to the construction of a deep sea port in Anaklia and planned to retender the project.
No remarks are included in relation to two other controversial cases involving foreign investors, namely: Texas-based oil company Frontera (which has seen its concession contract terminated) and Azerbaijani group NEQSOL (which risks losing its 49% stake in Caucasus Online on the basis that the deal was supposedly not satisfactorily reported to relevant national authorities).
Overall, the US State Department assesses Georgia as “a small but open market,” that has “made sweeping economic reforms since 1991 that have produced a relatively well-functioning and stable market economy”.
The document notes that Georgia ranks high in the 2020 World Bank Ease of Doing Business index and in the Heritage Foundation’s 2020 Economic Freedom Index.
It says: “Georgia ranks seventh in the 2020 World Bank’s Ease of Doing Business index and twelfth in the Heritage Foundation’s 2020 Economic Freedom Index. Fiscal and monetary policy are focused on low deficits, low inflation, and a floating real exchange rate, although the latter has been affected by regional developments, including sanctions on Russia, and other external factors, such as a stronger dollar. Public debt and budget deficits remain under control. However, global challenges posed by COVID-19 and measures needed to mitigate the spread of the virus have placed significant pressure on the domestic currency and the local economy.”
11​ GEORGIA Country Report ​October 2020 ​ ​www.intellinews.com