|  Private sector and human-resource development in Georgia |
KfW
USAID
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GUDC under long-term management
contract; other management contracts fully operational
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|
·
Improve
transport regulatory administration
|
Ministry of Transport and Communication
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MOTC restructuring
|
Improved functioning of restructured MOTC
|
Secondary Roads Project; Transport Facilitation Project
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|
SDRG restructured and road financing arranged to provide stable
source for road funding to maintain and improve roads
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·
Technical
monitoring of emergency conditions, restore status of premises and
constructions of strategic importance and special complexity of the energy,
transportation, communication and construction infrastructure as well as
those damaged from earthquakes
|
Ministry of Economy, Industry and Trade, Ministry of Fuel-Energy,
Ministry of Transportation and Communication, State Department of Highways
|
Development of road data bank for SDRG to take prompt, cost-effective
action in emergencies
|
The data bank is used to prioritize annual road program
|
Secondary Roads Project; Transport Facilitation Project
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|
Road data bank in use and SDRG expanded to cover local rural roads
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|
·
Improve
implementation of road construction plan, identify strategic projects and
sources of financing
|
State Department of Highways
|
Road construction plan, equipping SDRG with tools to develop and
manage the plan
|
5 year rolling plan a standard procedure in SDRG
|
Secondary Roads Project; Transport Facilitation Project
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EU, Kuwait Development Fund
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Performance indicators to be developed in Secondary Roads project
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|
·
Form
information network covering the entire country
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State Department of
Information
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Improving rural access to telecommunications services
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Better and more affordable access by the rural population to
telecommunications
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Rural Telecommunications Project
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|
Higher proportion of the rural population having affordable access to
telecommunications
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Tourism
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|
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|
|
|
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·
Prepare
special program to attract additional funding from international donor organizations
to develop tourism
|
State Department of
Tourism and Resorts
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Development of community-based tourism
|
Realistic development strategy for tourism -- especially community-based
tourism -- that promotes broad-based local development, reduces administrative
barriers to tourism, and supports preservation
|
Community-based tourism
|
|
Realistic development strategy for community-based tourism, including
reduced administrative barriers and more focus on preservation
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|
Agriculture
and Food
|
|
|
|
|
|
|
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·
Establish
water consumer associations in rural areas
|
Ministry of Agriculture, Melioration System Management Department
|
Support to establishing new, and strengthening existing, water users
associations to manage irrigation facilities
|
More and better functioning water user associations
|
Irrigation and Drainage Rehabilitation Project
|
EU
TACIS
|
Legal framework for WUAs established; number of water user
associations registered increased
|
|
·
Develop
unified geographic computer system of land cadastre and registration
|
Ministry of Agriculture and Food, State Department of Land Management
|
Support to strengthening capacity of State Department of Land
Management to carry out land registration based on cadastre survey
|
Increased capacity of State Department of Land Management
|
Agriculture Development Project
|
IFAD, USAID KfW
|
Eleven land registration centers established; satellite imagery used
for titling in mountainous regions
|
|
·
Establish
private veterinary services
|
Ministry of Agriculture and Food, Veterinary Department
|
Dialogue with Government on Veterinary reforms
|
Law to establish private veterinarians passed
|
ARET
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USAID
|
Government starts veterinary reform process
|
|
·
Structural
reorganization of plants protection services
|
Ministry of Agriculture and Food, Plant Protection
Service
|
Discussion with MAF on reform of plant protection services
|
Follow-up to merging of three agencies into a single plant protection
agency
|
ADP
|
USAID
|
Reduced illegal trade of agro-chemicals; relevant laws passed
|
|
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SECTOR
|
LEAD NATIONAL AGENCY
|
PARTNERS
|
|
Agriculture
|
Ministry
of Agriculture and Food
|
IFAD,
FAO, DFID, UNDP, KFW
|
|
Culture
|
Ministry
of Culture
Fund for
Cultural Heritage Protection
|
EU
|
|
Education
|
Ministry
of Education
|
SOROS
|
|
Energy
|
Ministry
of Fuel and Energy
Georgian
National Energy Regulatory Commission
|
USAID,
KFW, EBRD
|
|
Financial Sector
|
Ministry
of Finance and Tax Revenues
National Bank of Georgia
National
Securities Commission
Foreign
Investment Advisory Council
|
IMF
|
|
Forestry
|
State
Department of Forestry
|
FAO,
WWF, CIDA
|
|
Governance
|
State
Chancellery, Anti-corruption Policy Coordination Council
|
Netherlands,
IMF, DFID, USAID, UNDP,
|
|
Health
|
Ministry
of Labor, Health and Social Affairs
|
SIDA,
DFID, WHO
|
|
Judicial
|
Ministry
of Justice
Supreme
Court
ALPE (Association
of Legal Public Education)
|
EU,
USAID, SOROS, ABA, DOJ
|
|
Municipal Development and Decentralization
|
Georgian
Municipal Development Fund (MDF)
|
|
|
Poverty Reduction
|
Secretariat
of Governmental Commission on PREGP (Poverty reduction and Economic Growth
Program)
|
IMF,
UNDP, DFID, USAID
|
|
Private Sector
|
Ministry
of Economy, Industry and Trade
|
USAID,
EBRD, BP
|
|
Protected Areas
|
State
Department of Protected Territories, Preserves and Hunting Grounds
|
UNDP
|
|
Roads
|
Ministry
of Transport, Telecommunications and Post
State
Department of Roads
|
Kuwait Fund for Economic Development
|
|
Social Infrastructure
|
Georgian
Social Investment Fund (GSIF)
|
KFW
|
|
Transport and Communications
|
Ministry
of Transport, Telecommunications and Post
National
Commission of Telecommunications and Transport
|
|
USAID
assistance in the economic growth area focuses on strengthening agriculture
sector, assisting the NBG to improve its supervision, inspection, and
enforcement capacity, and furthering land market reform. The Georgian
Enterprise Growth Initiative (GEGI) is a major new private sector development
activity to be implemented in close coordination with the CAS programs. USAID
has been actively involved in the energy and environmental sectors providing TA
to regulatory bodies, supporting privatization of the energy sector and
improvement of the international investment climate, assisting in elaboration
of environmentally sound laws in the energy sector as well as policies in the
sector oriented towards energy efficiency, conservation and water management.
Through democracy and governance oriented projects USAID supports increased
awareness of legal rights, judicial and BAR reform initiatives, strengthening
local governments, building professionalism of independent mass media as well
as capacity of civil society and NGOs. USAID initiatives in the social sectors
include programs in the regions to support income generation and economic
self-reliance activities among internally displaced persons, crisis assistance
to the most vulnerable, health care partnership programs and reproductive
health programs which promote improved maternal and perinatal services, safe
motherhood, family planning, health information systems, and STI/HIV awareness
and prevention.
EBRD
main objective in Georgia is to expand private sector development activities in
the country. During years 2002 and 2003 it has been engaged in the active
political dialogue with the Government to support the substantial reduction of
administrative barriers to investments, representation on the board of
companies and banks, support of the initiatives of local business associations.
EBRD aims at further strengthening of the Georgian banking sector through
ongoing support to the regulator, management training, and further consolidation.
EBRD’s interventions include financing to business start-ups and existing
micro, small and medium-sized enterprises as well as selectively supporting
critical investments in infrastructure with specific focus on those projects
that promote the commercialization of infrastructure, particularly of the
energy sector.
EU’s
Partnership and Cooperation Agreement (PCA) provides for cooperation in a wide
range of areas including Food Security Program (in amount of ˆ 25 million for
the period 2002-2003), rehabilitation in conflict zones (Engury Power Plan in
Abkhazia), macro-financial assistance (establishment of an agricultural credit
institutions, reforms in accountancy and audit, assistance to the insurance
sector and securities market regulation), support to trade liberalization,
customs, and development of transport infrastructure networks, advice on
economic legislation and country legislature harmonization with the EU
standards, investments in primary health care reconstruction program and
development of the Georgian National Health Program and training of medical and
administrative personnel as well as provision of the technical assistance for
the development of the model of Regional Health financing. TACIS is the main financial
instrument supporting the implementation of the PCA.
GTZ,
working on behalf of German Government, provides support in the health sector
primarily focusing on structural improvements and training for medical technicians,
promotes vocational training sector to improve commercial and agricultural
training and upgrading, implements projects to privatize agriculture and build
up effective land- and debt-management systems, promotes export and investment,
and has been assisting in judicial and legal training as well as practical
application of civil law in Georgia. German assistance is also channelled
through KfW supporting credit line to agriculture sector enterprises,
participating with an equity stake in Procredit Bank, is conducting cadastral
works almost all over the country, and contributing to social infrastructure in
the districts bordering Borjomi-Kharagauli National Park as well as supporting
the Government to rehabilitate schools and health facilities damaged during the
recent earthquake.
Bilateral
assistance also comes from Canada (CIDA) mostly through the regional projects supporting
trade policy capacity, expanding the micro credit programs, promoting NGO
capacity development program that supports the principles of good governance,
strengthening health reform through the appropriate application of health
information technology and information management strategies, and contributing
drought victims relief operations.
DFID
has recently approved a new Primary Health Care (PHC) Development project through
which technical assistance will be provided to the Government in the areas of
human resource development for the PHC system, health care financing, health
management information systems, capacity building for the health policy
development. DFID has been supporting the SDS in the multi-sector household and
labor market surveys. The ongoing program also has a component aiming at
development of good governance and civil society in two regions of Georgia as
well as conflict reduction and confidence-building component.
The
Netherlands has
provided support for a wide range of activities, focusing on good governance,
human rights and peace building, as well as substantial budget support in
conjunction with SAC III. Dutch support in the three focus areas will
continue, including for . election preparation, prevention of trafficking in
human beings, confidence building measures in Abkhazia and support for NGOs
involved in poverty alleviation and human rights
In
the agriculture sector IFAD
supports rural development program for mountainous and highland areas and
credit-union development and rural credit activities for small farmers, while
FAO provides financial support to hazelnut sector rehabilitation project.
UNDP
in Georgia focuses its program activities in three areas: (a) democratic
governance; (b) poverty reduction; and (c) environmental protection, as
outlined in the second Country Cooperation Framework for Georgia (2001-2005).
In the sphere of Governance, major ongoing initiatives include support to
Foreign Investment Advisory Council, strengthening the Anti-corruption
Promotion Group, and assistance to the Constitutional Court and Public
Defender’s Office. UNDP has been active in capacity building of the Georgian
International Oil Corporation and of the National Security Policy Management.
UNDP is contributing to land market development through creation of a
computerized program of registration. Technical and financial inputs have been
provided to strengthen the capacity of Georgian institutions responsible for
national statistics, notably the State Department of Statistics. Environmental
challenges are being addressed through the projects supporting recovery,
conversation and sustainable use of Georgia’s agro-biodiversity, removal of
barriers to small hydro power sector development, and capacity building of the
Ministry of Environment.
UNICEF
priorities in Georgia include: education, integrated childhood development,
immunization, fighting HIV/AIDS, and protecting children from violence,
exploitation, abuse and discrimination. It has been assisting the Government in
national training of health workers and professionals and in providing
universal access to basic health services for women and children. UNICEF has
been helping the Government in promoting the implementation of the Convention
on the Rights of the Child. Support also includes ensuring inclusive education
for children with disabilities and providing psychosocial support to children
in need of special protection as well as introducing alternative,
non-institutional methods of childcare. Child de-institutionalization has been
also supported by SIDA through provision of technical assistance during social
protection reform project preparation and implementation phases.
[1] Presidential Decree 678 calls for elaboration
of a new law on privatization of agricultural land and completion of the
national land cadastre by the year 2005. Apparently a draft of such a law is
already circulated in the Parliament.
[2] Amended September 3, 1997; September 18,
1997; December 12, 1997; February 5, 1998; May 1, 1998; May 13, 1998; May 29,
1998; June 26, 1998; October 13, 1998; October 30, 1998; December 24, 1998;
April 2, 1999; April 16, 1999; June 8, 1999; June 9, 1999; June 25, 1999; July
23, 1999; September 9, 1999; December 9, 1999; December 24, 1999; December 28,
1999; March 24, 2000; June 28, 2000; July 13, 2000; September 27, 2000;
September 28, 2000; October 11, 2000; October 13, 2000; November 10, 2000;
November 24, 2000; December 5, 2000; December 13, 2000; December 29, 2000;
March 16, 2001; April 27, 2001; June 8, 2001.
[3] Resident physical persons: who received
income that was not taxed at the source of payment in Georgia; who have funds
in accounts in foreign banks; or whose expenditures during the tax year exceed
25,000 GEL. As well as, non-resident physical persons with income from a
Georgian source that is not taxed at the source of payment.
[4] In hindsight, the VAT threshold should have
been much higher when the VAT was adopted.
[5] For example, it would help screen shell
companies created for the very purpose to evade tax payments.
[6] FIAS, Georgia: Study of administrative
barriers to investment, December 2001.
[7] This also applies to foreign investors, as
numerous critical articles on taxation in Georgia published by the American
Chamber of Commerce newspaper demonstrate.
[8] O: Observed.
[9] LO: Largely Observed.
[10] MNO: Materially Non-Observed.
[11] NO: Non-Observed.
[12] NA: Not Applicable.
[13] Although a draft law
on Investment Funds has been prepared with assistance from USAID (IOSCO,
2001)
[14] C: Compliant.
[15] PC: Partially Compliant.
[16] MNC: Materially Non-Compliant.
[17] NC: Non-Compliant.
[18] NA: Not Applicable.
[21] Because Georgia is a member of the 1961 Hague
Convention, on the abolition of legalization requirements of documents issued
in foreign countries, only documents originating from countries not signatories
to the Hague Convention require legalization by the consular offices.
[22] Article 4.3
[23] No. 2132-11s
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