LOCAL ECONOMIC DEVELOPMENT PLAN FOR TBILISI ... - LED

The improvement of environment that businesses work in is one of the priorities of the
Georgian government. In spite of the fact that many issues should be solved in the
near future it has to be said that many steps have been taken to stimulate economic
activities of Georgian citizens in recent years. The World Bank’s and the International
Finance Corporation’s (IFC) Doing Business report can be reviewed to assess current
situation and take actions in this field. The World Bank has assessed the conditions
and environment which the businesses, especially small and medium ones, have to
face in different countries. The database called “Doing Business” presents indicators
of business regulations and their enforcement. The Doing Business collects data and
provides comparable indicators across 175 worlds economies. It analyses the
regulatory costs of business and can be used to analyze specific regulations that
enhance or constrain investment, productivity, and growth. The Doing Business
project covers ten topics of business environment:
• starting a business
• dealing with licensing
• employing workers
• registering property
• getting credit
• protecting investors
• paying taxes
• trading across borders
• enforcing contracts
• closing business.
“Georgia was the top reformer in the Commonwealth of Independent States (CIS)
and was the leader in the global top 10 reformers’ rankings as far as the ease of doing
business in 2005–2006 is concerned, according to the report.
Georgia made enormous improvements to many areas of its business regulations and
jumped over an astonishing 75 places in the rankings in just one year, moving from
112th place to number 37, Georgia’s annual leap in the rankings was the furthest
since the Doing Business report was launched four years ago. It just shows how far a
country can go if it is committed to reforms. Georgia improved its business startup
procedures, dramatically improved its customs procedures, introduced specialized
courts, streamlined labor regulations, introduced a credit bureau, and enormously cut
the number of licenses. The country has seen a 55 percent increase in the number of
new businesses being registered. In addition, the unemployment rate fell by 2
percent.” says Caralee McLiesh, a co-founder of the Doing Business project.
1 Chapter based on The World Bank’s and the International Finance Corporation’s (IFC) Doing Business report.