Main goals of the Georgian government for the years 2008-2012 are as follows:

In order to achieve the above mentioned goals orientation of the government towards the results will increase.

For the purpose of improving wellbeing of the population, the efforts of the government will be directed to providing a fast and widely effective economic growth on one hand and towards implementation of large-scale social programs on the other.

Fast and large-scale effective economic growth will be provided by creating a stable macroeconomic environment, by decreasing the role of the government in economy and by maintaining a low inflation rate. Achieving the said goals will be ensured by the proficient budget and simple and low tax rates, by attracting foreign investments and protection of the private property rights, by practicing liberal trade and transport policies, by increasing exports and commercialization of agriculture, by enhancing employment and accumulation as well establishing foundations of stable development for the future generations.

The policies directed against poverty will envisage consolidation of the resources and creation of effective institutions for helping the poor. The above set objectives will be ensured through the goal-directed expenditure of the social budget resources, by employing effective mechanisms of selecting the beneficiaries, by the programs designed for development of the hospital systems, by a largely developed network of the village medical doctors, through the insurance system provided by the government for the socially vulnerable part of our population, by the package of social pensions and the Praiseworthy Beginning Program as well.

Fast economic growth and reduction of poverty requires investments in road, port and railway infrastructure, as well as implementation of the Open Sky policy, liberal regime for the land transportations, increase of utilization of hydro-energy resources, diversification of energy supply and decrease of the regional misbalance.

In order to implement the above mentioned goals it is of paramount importance to establish a compact and flexible public service free of corruption and orientated towards the talents and skills of the personnel.

 

Ensuring stable development of Georgia will prove impossible without:  

 

– Georgia will become the NATO member – During the next 5 years the country will successfully complete all stages of integration into the NATO structure having met all the requirements of this organization. Georgia will become an organic component of the security system of the alliance instead of being only a “recipient” of the mentioned security.

– Territorial and civil integration will be implemented – Reintegration of the Abkhazian and South Osetia/Tskhinvali regions into the general processes undergoing in the country will be ensured on management as well as public service levels.

– The principle of Four Freedoms will be implemented more widely in the relations with the European Union – Free movement of the goods, the capital and services will be ensured. Certain degree of free movement/travel will be increased for a definite group of people: for students, enterprisers and the scientists first of all.

– Normalization of the relationship with the Russian Federation will be achieved – The cooperation will be based upon the principles of mutual understanding and respect. Economic collaboration will be developed without any technical restrictions or barriers.

 

 

 

During the next 5 years the economic course and dynamics of recent years will be maintained.

– The fast pace of economic growth will be continued – During the next 5 years the annual economic growth will reach 9% in average. According to the World Bank classification Georgia will be shifted to the group of the “average-high income countries”.

– The state share in economy will be decreased – The state share in the budget with regard to GDP will be reduced to 20% compared to the currently existing 29%.

– Inflation will be firmly maintained on one digit level – In effect of stringent monetary policies carried out on the starting stage of the program and at the background of the proficient budget average level of inflation amounted to 6% during the last 5 years.

– The amount of foreign investments will increase 6 times in the course of next 5 years – The investments will exceed the GDP to 15% and will amount to 10 billion dollars in total.

– The budgets will be proficient – During the upcoming years the budget surplus will amount to minimum 0.5% of the GDP.

– The tax regime will be supportive to employment, accumulation and economic growth – The income tax will be reduced to 15%. Other types of taxes on personal profit will be non-existent and the capital taxes will be abolished.

– Georgia will turn into an international financial center – The country will attract the financial resources from the entire region. The attractiveness will depend on simple and low taxes, transparent financial regulations and a reformed economy. In effect of this, not less than 12 billion dollars of financial resources will be allocated. Trustful financial institutions will be operating in the banking, insurance and reinsurance spheres, as well as in trade with securities.

– The Fund for Future Generations and the Fund for Stable Development will be created.

The Fund for Future Generations will accommodate about 30% of the fiscal surplus/remains and 75% of privatization/capital income. The fund will also accumulate minimum 5 billion GEL and its management will be undertaken by the leading financial institutions of the world.

The Fund for Stable Development will take the surplus/remains amounting to 25% and 25% of the investment/capital income; it will accumulate about 3 million GEL.

– The export share in the GDP will reach 40% – In effect of liberal trade policies, economic growth and development of free industrial zones the economy will be more projected to exports.

– Only a small amount of property will remain in the hands of the state – More flexible and effective forms of privatization will be implemented. Management of the already existing companies will be undertaken by private operators in all sectors of economy.

– Export undertaken through free trade will amount to more than 80% of the total export volume – The free trade regime will be enacted with the European Union, the USA, Turkey, the European free trade zone and the Persian Gulf Cooperation Council.

– The guaranteed property right – In effect of the constitutional and legislative changes as well as by way of improvement of the judiciary practices, the degree of inviolability of private property will increase and it will be ensured not only by the legislative but on the implementation and comprehension levels as well.

– The credit rating of the country will be improved – Under the findings of the internationally acknowledged research studies, the assessments will increase to minimum 4 scores.

– Evaluation of the investment environment of the country will be improved – In the international comparative analysis of the business environment Georgia’s indicators will exceed the average indicators of the countries of the European Union.

 

 

 

– 1/3 of the budget will be directed towards the social programs – This indicator will be firmly maintained during the next 5 years. Effectiveness of expenditure and its goal-orientation will be increased. The practice of extending “plain” aid without any definite address will be substituted by the principle of goal-directed help. Consolidation of the society will take place.

– Employment will increase by way of active economic activity – Foreign investments amounting to about 10 billion will ensure the creation of 200 thousand new jobs.

– Poverty will be substantially reduced – In 5 years number of the beneficiaries will decrease to 25%.

– In effect of the completed pension reform the volume and quality of the pension package will be increased – The pension package will reach 100 dollars and it will constitute one of the components of poverty reduction strategy.

– Positive migration will be maintained – Factual number of the population will increase to 150 thousand and the number of repatriates will exceed the number of emigrants.

– The healthcare infrastructure will develop – 100 hospitals, constructed and equipped in compliance with modern standards will start functioning on a full scale.

– Accessibility of medical care in rural areas – The village population will be provided by available medical care and more than 1000 well equipped village physicians will be at their service.

– Public/ Compulsory insurance police will embrace 1 200 000 people – Members of each family graded below the poverty line will be able to benefit from the insurance package. The state backed insurance system will also be available to the schoolteachers, the operative military forces and the police. Insurance will be compulsory to all public servants.

– The Praiseworthy Beginning program will be continued – The program will embrace 600 000 beneficiaries in 5 years.

 

 

 

– The Poti free industrial zone will start its operation on full-fledged terms – The industrial zone will attract investments amounting to about 1.5 billion dollars and approximately 20 000 people will be employed. Effective operation of the free industrial zone will bring about development of industrial infrastructure and services across the region.

– The Poti port infrastructure will be enlarged – The cargo turnover of the Poti port will increase up to 12 million tons. The port will process about 270 000 containers annually.

– The Batumi port and the Kulevi terminals will be completely enacted – They will be engaged in processing and transportation of the raw oil products from Azerbaijan and Central Asia and these two facilities will become a major network of such activities.

– The road infrastructure will be improved – Construction of the Eastern segment of the main highway will be completed; in addition, approximately 30% of the road fund will be rehabilitated.

– Intensity of the air traffic and the number of the flights will be increased – Number of the air companies will be increased and number of the passengers will grow twice; approximately three international airports will be put into operation.

– The Georgian Railways will turn into a successful corporation – Trade with the shares of the corporation will be undertaken at the leading and developed stock exchanges. The railway infrastructure will be developed; project of the roundabout railway will be implemented which will discharge the Tbilisi center from the abundant traffic.

– The railway connections across China-Georgia-Europe will be settled – Constru-ction of the Karsi-Akhalkalaki railway will be completed and the Georgian Railways will be connected to Turkey.

– The real estate market will be developed dynamically – Volume of the construction will be increased twice during the next 5 years and diversification of the building product will take place.

– More than 500 extra megawatt of hydro power will be produced – During the next 5years utilization of the hydro resource potential will be increased up to 13%; contribution of the hydro resources in the production of the energy resources will increase to 90% compared to the previous 25%.

– Sustainability of the energy system will grow forth – Further regulation of the sector will continue; energy generation as well as its supply will be stabilized and diversified. Most part of the electric energy will be generated by means of the renewable resources (hydro-resources). Diversification of the import sources of the electric energy will be ensured. The energy system will operate in parallel regime with the neighboring countries.

– Export of the electric energy will increase – Positive trade saldo will be maintained and it’s going to be increased three times compared to the indicator of 2007.

– Diversification of the fuel sources for the rural population has been undertaken – The gasification program was implemented and therefore, in effect of regulations undertaken in the gas system and as a result of attracting additional capital to this sector the number of gasified settlements will increase.

The Trans-Asia-Europe (TAE) optical fiber cable route will be put to operation – Transmission of large portions of information between Europe and Asia will be ensured.

– Automation of the population will increase twice – The inequality in providing internet opportunities to the urban and rural population will be considerably reduced.

– Accessible facilities for electronic payments will become available – Electronic payment system will be introduced, by means of cellular phones included. An available system of electronic payments will be enacted.

 

 

 

– Increase of effectiveness of the agricultural sector and its commercialization – Direct share of the average farming enterprises in the agricultural sector. During the next 5 years, export of the agricultural products will equal to 25% of the total exports; the territory supplied with the irrigation systems will be enlarged 2.5 times (from 130 thousand hectares to 300 thousand hectares).

– More than 200 enterprises for processing agricultural products will be created – More than 10 thousand people will be employed and about 100 000 persons will be involved in the process. Development of the agricultural sector will enhance successful implementation of the governmental program: 100 New Processing Plants in Rural Areas.

– The private sector will undertake management of the natural resources – The expiry terms will be increased on licenses for utilizing the natural resources. This will ensure economic efficiency on one hand and will reduce to minimum pollution and contamination of the environment on the other.

 

 

 

– Competitiveness of the universities will increase – In effect of implementation of the Education City Program the high education institutions will be involved in modern education and learning process. Quality of the studies will level up with the international standards. The Education City Program will be accomplished and 30 000 students involved in this program will get competitive education matching all modern international standards; more than 3 000 scholars will also be involved in the scientific research process; the quality of high education and integration of scholarly activities will increase considerably too.

– Private education system will also develop in parallel to the public education system – Private investments will be allocated which will make the country a leading educational center in the region.

– All public schools will be compliant to the modern standards – The Deer Leap Program will be successfully implemented and within the framework of the said program all public schools will be equipped with computers; this will enable them to be connected to the global network.

– The program of rehabilitation of the sports infrastructure will be implemented – About 50 sports centers will be constructed all across Georgia which will be compliant to the modern standards. 3000 sportsmen with special skills and talent will be granted through a voucher system and 3000 children, living beyond the poverty line will also benefit from the Get Healthy Program.

 

 

 

– The public sector will be based on the principles of dignity – For the purpose of increasing efficiency of the public sector the principles of its management will be brought closer to those of the private sector. Elements of the contact system will be implemented in the public sector; measurable mechanisms of evaluation of the performance of public institutions and clear criteria of monitoring will also be implemented; in effect of all these measures a flexible, transparent, effective and compact public sector will be created which will be guided by a special supervision system over the high officials.

– The anti-corruption reforms will be maintained and developed further – The system of property and financial declarations will be improved in the public sector. The norms of the code of ethics will be implemented; the system of employment and promotion will be more transparent and the mobility between the public and private sectors will also increase.

– Electronic signatures and the unified governmental network will be implemented – The practice of using electronic signatures and electronic documents will be put into operation both in the private as well as in public sectors.

 

 

 

– Formation of the armed forces matching the NATO standards will be completed – Georgia’s armed forces will move to the completely professional pattern. Optimization of management of the armed forces will be undertaken and the combating power of the army will be strengthened forth.

– Reform of the law enforcement service has been undertaken – The quality of execution of the court decisions in due and effective time will be ensured.

– Penitentiary system will be brought closer to the international standards – Rehabilitation of the prisons and jails will be undertaken; living conditions of the inmates as well as their maintenance and healthcare will be improved. Effectiveness of the probation system will be increased. Effective mechanisms of protecting the rights of the prisoners and their re-socialization will be drafted. 

– The quality of protecting the rights on life and property will be strengthened by the police – The trust and confidence extended to the police forces by the population will grow. The management system of emergency and crisis situations will be improved. For the purpose of increasing qualification and based on the international practices permanent mechanisms of training of the policemen will be implemented.