LOCAL ECONOMIC DEVELOPMENT PLAN FOR TBILISI ... - LED

It is of key importance for the city development to attract capital in the following areas. In
order to improve the conditions of business activity and the quality of life it is most
important to invest in technical infrastructure:
• transport infrastructure,
• telecommunication infrastructure,
• utilities.
In order to improve competitiveness of the economy the following investments in
institutional infrastructure are necessary:
• institutions facilitating access to funding,
• institutions of labour market and workforce development,
• institutions giving SME access to technical assistance,
• networking and marketing organisations,
• know- how and technology transfer institutions,
• space for work with service provided.
To set up new firms and attract investors business space is necessary for:
• offices,
• retail,
• warehouses,
• industrial units,
• hotels and restaurants,
• plots of land with infrastructure,
• houses and apartments.
The city can stimulate investment in these three areas in many ways. Some of these
investments belong to the private sector, others will remain public investments. Part of the
investments will be done by national investors, while another part of the capital will come
from international markets.
For the last twenty years we have been observing changes happening in the cities of
Central and East Europe which have abandoned centrally planned economy and are
joining global cooperation and competition. In the recent years in Georgia strategic
investments in technical infrastructure have been done with both public and private
money. Many international donors have started programmes building institutional
infrastructure for the new economy. We can observe a boom on Tbilisi real estate market
where, apart from housing estates, new office and shopping space has been built. New
hotels, restaurants as well as factories and warehouses are being constructed as well.
Some of the old industrial buildings in the inner city after renovation have been converted
into moderate class offices and shops.
Progressing economic reform and further political stabilisation will help Tbilisi go through
the process of economic change, similar to the one experienced by the cities of East
Europe. Since Georgia has joined the global economy and the skilled workforce
resources in CEE have been running out, soon new investors will get interested in
Caucasus and Tbilisi.
Presently, Tbilisi sees processes typical for the second phase of economy transformation
described above. In the following years we will still witness growing share of private
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