LOCAL ECONOMIC DEVELOPMENT PLAN FOR TBILISI ... - LED

While assessing the present condition of the elementary city competitiveness factors with
a view to its weak and strong points the team pointed out a particularly weak position of
the Research and development sector and the highly unattractive traditional structure of
local economy. The team found that the capacity to start cooperation links and networking
as well as the accessibility of funds are slightly more satisfying but still poor. Also, the
qualifications of workforce, technical and institutional infrastructure, transport accessibility,
social diversity and the quality of life need to be improved.
In most cases the prospects of improvement were observed. The best opportunities are
likely to be observed in the quality of life and the transport and telecommunications
accessibility. The areas facing the most significant threats are R&D, networking and the
groups threatened by social exclusion of those who do not participate in economic and
life.
The demographic situation was assessed on a medium level. As for strong points of the
city, legal regulations, state policies and the city recognition were ranked the highest.
Other strong points included the costs of doing business, which were most likely to
improve, and the institutional infrastructure. Further reforms will make it possible to
improve legal framework. Ambitious plans of other cities may threaten the recognition of
Tbilisi as the regional centre.
In conclusion, it was pointed out that public intervention is necessary to support the
development of R&D, networking, the city recognition, workforce skills, availability of
financial resources and technical infrastructure. With regard to the technical infrastructure
it seems necessary to expand space for business activities, i.e. to developed land for
industrial, logistic and office activities with full infrastructure for services. Special attention
was paid to meeting the requirements of start-ups, mainly to regulations that make
establishing a business cheaper and less time-consuming.
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