LOCAL ECONOMIC DEVELOPMENT PLAN FOR TBILISI ... - LED

On its way to becoming a regional center, Tbilisi’s relationships with the rest of the country
should naturally be transformed. The role of cities as major actors on the world economy
stage demands rethinking the whole approach to urban areas and their role in economic
growth and improving quality of life. This rethinking is required not only within cities, but at
the national level. City has not only the value of itself, but can mean even more in context
of the whole region. The realities of a global economy dictate that all levels of government
reevaluate their understanding of the role of cities, and their policies and approaches
towards cities and towns. While each city is developing its own solutions, particular group
of them should benefit from working together to develop and implement an integrated
national, approach to advancing the economies of major urban centers.
Funding and resources must now be directed toward supporting the transition to a
knowledge economy, in the same way that the government supported the resource
sector, and traditional manufacturing industries in the past. Central government
representatives need to take into account the likely impacts of their policy and program
decisions on urban economies. The emerging role of cities has been recognized round
the world and is being exploited as a engines of national economic growth. A wide range
of innovative initiatives and institutions are being put in place to more effectively respond
to the changing context for cities.
Good outcomes reflecting the satisfying condition of Tbilisi economy, when compared to
the rest of the country, results from the fact that the city does not face any competition as
far as economic indices are concerned. Other regions perform much worse than the City
of Tbilisi.
As a result of economy transformation Tbilisi lost its traditional industries that were
generating incomes and workplaces for decades. Schools, universities and supporting
institutions were organized around them. Now, when most of old factories do not operate
any more all these institutions should transform their activities or will be closed down too.
To create Tbilisi new economy profile and face competition of global markets new city
products should be identified and new institutional infrastructure should be developed to
support key city development possibilities. Cluster networks should grow around
competitive city products that will be identified. Workforce development programs should
be created to support young people entering labour market and those who need to
change or improve their qualifications. Schools and vocational training institutions should
develop new educational programs to prepare qualified workforce for the new sectors of
economy. To build foundations for knowledge-based economy the research institutions
should offer companies new management and production technologies. The whole range
of institutions is needed to offer funding to growing companies (credit, capital and
guarantees). Business networks, organizations, consulting and marketing companies will
help companies and their products enter new markets and compete with foreign
companies. Public institutions should participate in the process of supporting promotion
campaigns, offering good quality space and qualified workforce for all new generation of
firms and institution, in order to build international reputation and recognition of the city.
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