LOCAL ECONOMIC DEVELOPMENT PLAN FOR TBILISI ... - LED

From the city’s economic policy point of view the dynamics and industrial structure of new
businesses are extremely important.
In each of the analyzed years the number of businesses set up in Tbilisi grew. The only
industry where this dynamics has been slowing down is electricity, gas and water supply,
but this area is strongly controlled by the state and free market principles are non-existent
there. Another such area includes agriculture, hunting and forestry, i.e. industries that are
not technologically advanced and therefore not attractive. The third sector of poor
dynamics is education. In this case the reason for slower growth of businesses is heavy
saturation of the market with traditional educational services (schools, universities). The
number of businesses in other areas is increasing. Thus it seems necessary to carry out
further research in order to answer the question how long newly established companies
can survive and how they will develop in the future.
3.4. Quality of place
The Government of Georgia established the amounts of social assistance for the families
below the poverty margin which depend on the number of members of registered socially
vulnerable families at the moment of allocation of the welfare benefit.
The amounts are as follows: for single-member families – 38 GEL; for two-member
families – 55 GEL; for three-member families – 70 GEL; for four-member families – 85
GEL; for five-member families – 100 GEL; for six-member families – 115 GEL; for sevenmember
families – 125 GEL. For the families with eight and more members 10 GEL
assistance is added for the eighth and each additional member.
On 30 May 2006 in Tbilisi there were 95 749 people living in 33 349 families who
considered themselves being in extreme poverty according to their socio-economic status
and who expressed the wish to receive social assistance. Both by number of families and
number of population, the majority of the registered families live in Gldani-Nadzaladevi
(32.0%) and Isani-Samgori districts (23.0%), while the minority of registered families
inhabit Vake-Saburtalo district (12.4%). The statistics indicate that the living conditions of
the registered population are extremely hard. Considering the cash-based add-ins of all
types, 37.2% of total financial income of registered population are old age pensions,
27.1% - salaries and 20.1% - income from individual business activity.
According to the declared data, total income of the last one month of the registered
socially vulnerable population amounted to 3,082,604 GEL that is 32.1 GEL per person
for the registered category of population, and this indicator represents only 32.5% of
minimum living costs according to the Department of Statistics as of January 1, 2006
(19.6% under old indicators).
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