Friday , September 29 2023

Georgia – Reforms to Development

During last two decades, Georgia has undergone though a remarkable period of economic transformation led by
major institutional and structural reforms. The reforms succeeded in building smart and low regulations, business
friendly tax system, private sector driven and corruptionfree country.
With the achieved success Government of Georgia initiated new economic program – “Four Point Reform Plan”. The Plan embarks on four strategic directions:

1. Education Reform – supporting skills development through education reform targeted at bridging the gap between skills demand and supply. Promotion of vocational education, fundamental reforms in general and higher education systems will guarantee increased overall skill level of the local labor force leading to increase in employment and wages, thus, increasing the pace of local economic development.
2. Economic Reforms – Growth oriented reforms to provide the country with proper legal base and institutional development that are of significant importance for encouraging economic prosperity. Entrepreneurship facilitating jobs creation by improving business and investment environment further, including, inter alia, by implementation of tax reform and supporting entrepreneurship;
3. Spatial Development Reform – investing in core infrastructure development supporting expansion of the east-west and south-north trade corridors. The objective of the plan is to utilizing Georgia’s potential of a transit country between Europe and Asia, as well as its touristic potential, thus creating economic opportunities for our citizens. Given better infrastructure and regional development, which will break down transportation and communication barriers, will provide faster growth of investments and create favorable conditions for overall economic growth.
4. Open Governance – enhance the principles of inclusive decision making process, where voices of opposition, civil society and private sector are heard and by improving and modernizing public services, including by introducing “single Window Principle” for all government services. Transparency and open governance will guarantee higher integration of public and private sectors. This will increase the level of trust of the society towards public institutions and public administration.

These reforms through productivity growth will accelerate growth potential and foster convergence to higher income
levels. See the further information here.


The article is based on the data  of Ministry of Finance of Georgia

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