Private sector and human-resource development in Georgia

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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