Noghaideli on Georgian economy

Former PM of Georgia Zurab Noghaideli, currently the leader of an opposition party , has commented on the Georgian economy and its problems, prospects and solutions. Noghaideli thinks that there are three major factors influencing the Georgian economy. The first is the world economic crisis, though this has not touched Georgia very much, the second is the events of November 7, 2007, the brutal dispersal of protesters on that day and the political confrontation which followed, which resulted in some senseless decisions being taken and pre-election promises being made in the social and economic sphere which were not kept. However the Georgian economy is most influenced by the third factor – the August 2008 war. The combination of these three factors has caused the practical stoppage of the Georgian economy.

Noghaideli says that in 2009 the Georgian economy will contract by 5-7%, which means that approximately 100,000 people will lose their jobs. Noghaideli recommends that the leadership stops using military rhetoric, as this hinders investment, and resolve the existing political confrontation which has a negative impact on the country’s economy.

Noghaideli suggests that unless Saakashvili resigns things will not change in a positive direction. He estimates that Georgia needs at least 15 years of serious work before it regains the economic indicators it had in 1989. Of course one term of Government will not be enough, the normal political development of the country’s leadership will be necessary.

“A peaceful change of the leadership and elections are far more important for the economic development of our country than any economic programme,” states Noghaideli.