New initiatives by Georgian Government

Minister of Finance Kakha Baindurashvili has stated that Georgia’s economic development depends on new projects being initiated by the Georgian Government. These are broad scale plans, broader than the 5-point plan elaborated by the Government to combat the global economic crisis.

Over the last 3 years the Government has initiated more than 15 economic and social programmes, such as the anti-crisis programme, economic stimulus programme, employment programme, 100 days programme, 50 months programme, village gasification programme, roads to every village, cheap insurance programme, 100 hospitals programme, 100 enterprises programme etc. Unfortunately almost none of these programmes have achieved their projected results. The major problem, analysts suggest, is that the Government not interested in long term programmes but short term ones. These are mostly designed to fill gaps in certain areas to create the illusion of success and enable it to divert public attention to other issues, leaving existing projects only half fulfilled.

Economic analysts think that certain areas of economic policy should be more long term and strategic in nature. These include supporting domestic production, which should be helped by encouraging exports, and the promotion of small and medium-sized businesses, which need consistent and ongoing support tailored to their needs.