LOCAL ECONOMIC DEVELOPMENT PLAN FOR TBILISI ... - LED

Cities combine diversity – of population and resources of all kinds. Unique assets show
the innovative capacity and the bunch of possibilities of each city. Under today’s economic
conditions, in the global knowledge economy that is driven by information, creativity,
innovation and technology, when cities are at centre stage, these special urban
characteristic are of the biggest importance.
The elimination, and in some places even the reduction, of national trade barriers has
brought us to the moment when either people or businesses are choosing to locate and
expand in cities that have the mix of economic, social, political and other attributes for long
term success. As a result of urban renaissance we are witnessing the rapid growth of
many North American and European cities. Urban-based industries are the fast-growth
industries, people are moving back to cities and central governments are commencing
massive urban regeneration schemes. It more and more widely recognized that cities are
the focal points of national economies and should follow through with proactive urban
regeneration strategies and investment funding.
1.3. Role of Tbilisi in Georgia in region
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 neighboring 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 organizations and donor
organizations 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.
The list of Tbilisi competitors in the region includes the cities of Ukraine, Turkey, Russia,
Azerbaijan, Armenia and the countries of central Asia that aspire to the position of the
regional service centre.
Due to the political situation there are no cooperation links in the region and, therefore,
Tbilisi has no competition in Northern Caucasus as well as in the neighbouring parts of
Russia. Moreover, none of the Ukrainian cities attempts to play an active role in Caucasus
so there is no alternative for Tbilisi.
Despite dynamic economic exchange with Turkey, in its eastern part there are no strong
urban centres that could be able to compete with Tbilisi.
That leaves us with Baku and Erevan, the capital cities of Azerbaijan and Armenia as
Tbilisi’s natural and historical rivals. In Central Asia it is Kazakhstan with its strong political
and economic position that boasts the role of a regional leader. Its authorities, businesses
and organisations are very active and have achieved the position of an important
economic partner as well as the key investors in the region.
10