Prime minister Gilauri talks about his country’s economic development
„Due to the financial crisis or the Russo-Georgian War, 2008 was a tough year for the Georgian economy. But we have survived, recovered and are on the upswing now“, the Georgian prime minister Gilauri said. Despite the latest crises, Georgia has achieved an economic growth of five percent last year and has become the area’s fastest growing economy. In order to proof his statements, Gilauri quoted the World Bank’s „Doing Business Report 2012“ in which Georgia was ranked on the 16th place, even superseding Germany and many other European countries.
Concerning the Georgian-Russo treaty which was signed on November 9th and made Georgia giving up its blockade against Russia’s WTO-accession, Gilauri emphasized that Georgia will benefit from the agreement as well. By means of an intermediate private business, Tiflis could get an insight view into the merchandise traffic in South Ossetia and Abkhazia, which, according to international law, belong to Georgia and have been under Russia military control since the “Russo-Georgian War” in 2008.
According to the prime minister, Georgia’s economic ascent has been initiated by the liberal economic policy of president Saakashvili, who had taken office as a result of the “Rose Revolution” seven years ago. Among others, he has simplified the tax laws, privatized many public institutions and expanded the infrastructure of the country. A railway to Turkey which is planned to be finished in 2013 is part of his future plans. Thereby, Georgia would become part of an important trade route from Asia to Europe. The production of energy based on hydropower is also planned to be widely extended and will present an attractive resource for the EU.
„Ten years ago, Georgia was believed to be just another Post-Soviet country facing a long and ongoing struggle with corruption, mismanagement and poverty.” Today, the Caucasian country does not only offer good conditions for foreign investment, but also made progress in the development of a vital civil society, Gilauri pointed out. Especially the fight against corruption was successful due to the consequent criminal prosecution. Gilauri referred to the current Corruption Perceptions Index 2010 of Transparency International, according to which Georgia attained the 68th rank out of 178. In 2004, it still obtained the 133th rank.
At the same time the discussion highlighted the fact that Georgia’s political leadership is still being challenged: Georgia has a high unemployment rate and does not only urgently need a pension reform, but also more investments and a high economic growth to raise the population’s standard of living.