Private sector and human-resource development in Georgia

Private sector and human-resource development in Georgia

TBILISI, GEORGIA

 

 

 

 

 

 

Private Sector and Human-resource Development in Georgia

Author: Lasha Martashvili

E-mail: lmg@bk.ru

 

 (18.02.2004)

 

 

 

 

 

 

TABLE OF CONTENTS


1.      Government Policies.. 5

1.1        Government promotion policies of small and medium size enterprises.. 5

1.2        National Investment Agency of Georgia.. 5

1.3        Georgian Investment Center.. 5

1.2.1     Government’s Export Promotion Policy. 6

1.2.2     Georgian Export Promotion Agency (GEPA) 9

1.4        Foreign Investment Promotion.. 14

1.3.1     Government’s Foreign Investment Promotion Policy. 14

1.3.2     Foreign Investment Advisory Council (FIAC) 21

1.5        Tax Regime. 23

1.3.3     Taxation System and Tax Rates in Georgia. 23

1.3.4     Existing Taxation Practices. 34

1.3.5     Tax Reform Areas. 38

1.6        Legislative Basis for the Operation of the Private Companies. 44

1.5.1     Law of Georgia on Entrepreneurs (LoE) (Corporate Law) 44

1.5.2     Law of Georgia on Securities Market (SML) 51

1.5.3     Employment Regulations in Georgia. 57

1.5.4     Regulations about Real Estate in Georgia. 59

1.7        The Business Environment in Georgia.. 61

1.8        Institutional Arrangements. 64

1.3.1     Securities Industry. 64

2.      Society.. 65

2.1        Poverty issues.. 65

3.      Economics.. 70

3.1        Main economic indicators.. 70

3.2        Agriculture. 77

3.3        Trade. 104

3.4        Construction.. 106

4.      Business.. 110

4.1        Company Registration and Licensing System... 110

4.1.1     Company Registration System.. 110

4.1.2     Company Licensing System.. 117

4.2        Local Enterprises.. 119

4.1.3     Joint Stock Companies traded at Georgian Stock Exchange. 120

4.1.4     Joint Stock Companies not traded at Georgian Stock Exchange. 132

4.3        Human-Resource Development in the Private Sector.. 134

5.      Other Donors’ Activities.. 138

5.1        The World Bank and IMF. 138

5.1.1     List of the Active World Bank Projects in Georgia. 138

S – Satisfactory. 138

U - Unsatisfactory. 138

5.1.2     List of the Closed World Bank Projects in Georgia. 139

5.1.3     Description of the Closed World Bank Projects in Georgia. 140

5.1.4     The World Bank and IMF Cooperation in Georgia. 149

5.1.5     The World Bank Country Assistance Strategy for Georgia. 154

5.1.6     The World Bank Partners in Georgia. 161

5.2        USAID.. 162

5.3        EBRD.. 162

5.4        EU.. 162

5.5        GTZ.. 163

5.6        CIDA.. 163

5.7        DFID.. 163

5.8        The Government of the Netherlands.. 163

5.9        IFAD.. 164

5.10       UNDP. 164

5.11       UNICEF. 164



Currency

(Exchange rate as of 01 Feb. 2004)

Currency Unit = Georgian Lari (GEL)

1 USD = 2.11 GEL

1.0 GEL = 0.47 USD

 

 

Abbreviations and Acronyms

CAS

Country Assistance Strategy of the World Bank

CFAA

Country Financial Accountability Assessment

CIS

Commonwealth of Independent States

CPIA

Country Policy and Institutional Assessment

DFID

Department for International Development, U.K.

EBRD

European Bank for Reconstruction & Development

EDPRP

Economic Dev’t & Poverty Reduction Program

EU

European Union

FAO

Food and Agriculture Organization

FDI

Foreign Direct Investment

FIAS

Foreign Investment Advisory Service

FSAP

Financial Sector Assessment Program

FSU

Former Soviet Union

FY

Fiscal Year

GDP

Gross Domestic Product

GEL

Georgian Lari

GNP

Gross National Product

GoG

Government of Georgia

GSE

Georgian Stock Exchange

GTZ

German Technical Cooperation

IDA

International Development Association

IDF

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