LOCAL ECONOMIC DEVELOPMENT PLAN FOR TBILISI ... - LED

As a result of social and economic transformation that has been taking place
for the last few years in Georgia and the region Tbilisi is facing both new
challenges and development opportunities. The analyses, surveys and
discussions with stakeholders prove that:
• the City economy has a major share in the Georgian gross national
product,
• the productivity of Tbilisi companies is higher than of the companies
operating in other parts of Georgia,
• Tbilisi labour market generates more well-paid jobs for highly qualified
specialists than the other parts of Georgia,
• the volume of local salaries creates the major consumption market in
Georgia,
• improved telecommunication infrastructure enhances Tbilisi’s links
with the rest of the region and of the world,
• Tbilisi has an attractive offer for various groups of visitors,
• an increasing number of links with the region and the world attracts
new firms and cooperators, improves competitiveness of the existing
companies and introduces new market standards,
• the development potential of Tbilisi encourages the growth of
suburban areas thus creating the base for a metropolitan area,
• the potential of companies operating in the growth sectors forces them
to explore new markets in order to maintain development tendencies.
The above findings are the basis for recommending measures to be taken in
order to strengthen the position of Tbilisi as the service center for the region.
The city attractiveness, the potential of local firms and the range of offered
services, the quality of workforce and a multi cultural heritage enable Tbilisi to
serve not only its metropolitan area and Georgia, but also the region of the
Black and the Caspian Sea.
The unfinished transformation of economy requires firms, employees and
public institutions to adjust to the changing situation on the global markets.
The City and other public institutions should support new forms of
organisations and professional training and create space for new enterprises.
One of the major conditions of local growth is to make the existing firms stay
in the city and attract new investors from outside as well as to prevent present
inhabitants from leaving the city and encourage others to come and settle
down. The attractiveness of Tbilisi center, the quality of life or an easy start for
companies are the project areas that should be supported and implemented
directly by the City authorities.