LOCAL ECONOMIC DEVELOPMENT PLAN FOR TBILISI ... - LED

While assessing Tbilisi competitiveness in relation to other Georgian cities the teams
identified as its weak points the research and development, traditional structure of
economy, the costs of doing business and starting joint ventures. Also, the technical
infrastructure and the access to financial resources need to be strengthened. The areas
that are the most likely to develop are technical infrastructure and the structure of local
economy.
R&D is likely to improve slightly, while growing costs of doing business is the most
significant threat.
The strongest points are the city recognition and its demographic structure. The good
opportunities of growth have been observed in the areas that have been evaluated as
poorly developed, i.e. in the institutional infrastructure, skilled workforce, transport and
telecommunication accessibility.
Unfortunately, the quality of life is less likely to improve and the risk of social exclusion is
regarded as the most significant threat.
All in all, the following conclusions have been drawn:
• the economic situation in Tbilisi and other Georgian cities is improving,
• further efforts are necessary to improve technical infrastructure that directly
determines the competitiveness of local economy and the growth of local
business,
• in order to achieve the long-term growth capacity it is crucial for the city to improve
local business environment and institutional infrastructure, upgrade workforce
skills and facilitate the availability of investment funds.
Tbilisi in the region
After the collapse of the Soviet Union Georgia is regaining its traditional role in the region.
The country is situated along the transport links connecting Asia with Europe and Tbilisi
plays the role of service centre influencing Caucasus and the neighbouring regions. In the
regional exchange Tbilisi tries to become the central point of:
• economic life with advanced services where the most competitive business of the
region operate from,
• political life with the head offices of international organisations and donor
organisations operating in the region,
• education and research that attract young people from the whole region,
• culture and sport with the most important sports and cultural events in the region,
• tourist industry with the largest number of visitors.
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