Social-economic Development Strategy of Georgia - Georgia 2020

The Social-economic Development Strategy of Georgia – Georgia 2020 is a national multi-sectoral strategy of Georgia. Its main goal is to identify the main factors hindering inclusive economic growth in Georgia and define relevant priority tasks for their neutralization.
In the area of food safety, Government of Georgia will facilitate sector modernization and competitiveness. In order to increase the export potential of the country’s agricultural products, food safety, the veterinary and phytosanitary systems will be developed in accordance with international and European norms through the gradual implementation of obligations assumed under EU-Georgia Association Agreement obligations. With a view to meeting the obligations assumed under the EU-Georgia Association Agreement and increase benefits from other preferential trade regimes and to ensure the penetration and establishment of Georgian agricultural products in international markets, the Government of Georgia will introduce measures to increase the awareness of Georgian entrepreneurs of food safety, veterinary and phytosanitary issues; of the steps that are to be taken according to the EU-Georgia Association Agreement; of the requirements of international and European markets; and of relevant export procedures.
The document also seeks to make forestry more productive and sustainable. According to the document, the protection of forests and the introduction rational practices for their exploitation will significantly improve the population’s socio-economic standing, particularly as the development of agriculture, hydro-electric power generation, tourism and other sectors of the economy is directly linked to the health of the country’s forest ecosystems. The introduction of modern models of forest management and innovative technologies (taking into consideration the need to preserve forest biodiversity, its recreational, water regulatory and soil protection functions) will reduce the negative consequences of forest degradation and will increase economic benefits through the improvement of forest ecosystem services.
Further, the Strategy notes that the Government of Georgia will work to develop the country’s agricultural infrastructure, including irrigation and drainage systems, in order to increase the Georgian agricultural sector’s competitiveness. Improving irrigation and drainage systems leads to better water use, creation/development of efficient systems (including drip irrigation, sprinkler irrigation, etc.) and farmers’ increased access to these systems; besides, as a result of the above-mentioned improvement, farmers will be supplied with modern technologies in order to increase their productivity and make optimal use of available resources. The development of infrastructure for the processing and storage of agricultural products will be facilitated in order to increase the productivity and competitiveness of Georgian agriculture; alongside other measures, this will be done by attracting investments in this area, with these efforts being expected to satisfy local demand and increase the country’s export potential. The Government of Georgia will also ensure the development of national and local road networks as well as other transport and communications infrastructure with a view to increasing regional and local development as well as the local competitiveness of the private sector. The document notes that the current problem with mobilizing investments in Georgia’s agricultural sector is mainly the result of the weakness of the country’s land market and of available financial instruments (particularly leasing systems) as well as the relative lack of insurance and the absence of modern financial instruments such as warehouse receipts systems. Besides implementing measures which will be aimed at resolving these issues (which also implies streamlining the land cadaster system), the Government will work to design new credit schemes in co-operation with financial institutions, and will seek to create new financial products in order to improve access to finances. The Government will also facilitate the establishment of farmers’ groups and farming co-operatives as a means of making agricultural financing easier. The creation of a farmers’ register is also seen as a potential way of encouraging investments and ensuring their transparency.
Moreover, the Strategy addresses the disasters and climate change noting that the environmental impact and negative impact of global warming on the country’s economy must also be taken into consideration during the planning of infrastructure development. Due to the fact that Georgia is one of the most sensitive places among the world’s mountainous regions in terms of natural disasters, it’s necessary to decrease the natural disaster risk, avoid loss of lives from such disasters and eradicate their negative results. To that end, Government of Georgia plans to introduce modern early warning systems, implement various measures and develop relevant infrastructure. Besides national efforts, it will be necessary to attract environmental investments from international funds of UN Framework Convention on Climate Change (Green Climate Fund, Global Environment Protection Fund, etc.) in order to meet the requirements of the Convention; this will facilitate the process of introducing energy-saving, environmentally friendly modern technologies in Georgia.
The Government will prepare annual reports on the implementation of the policies included in the Strategy, based on the reports prepared by the line ministries. If needed, public consultations will also be held to adopt corrective measures or exert more efforts in particular areas. Mid-term and final reports will also be prepared. The interim report will assess mid-term implementation of the Strategy (as of 2017) and the final report will assess the final results achieved under the Strategy (as of 2020).