Transcript Georgia - United Nations Economic Commission for Europe

Aid for Trade Needs Assessment –
Georgia
United Nations Development Programme
Main findings
Impact of economic reforms on human
development
• Ambitious institutional and business reforms started in 2004
simplified business regulations boosting the countries
competitiveness and facilitating foreign trade
• Economic reforms reduced bureaucratic obstacles, hence
making it possible for businesses to expand their operations,
create new jobs and increase employment and output
• Business reforms were accompanied by significant capital
inflows and GDP growth, conditioning resilience after the
Russia-Georgian conflict in 2008 and maintaining continued
growth during the global financial crisis
• Growth in Georgia has mainly been macroeconomic,
and was associated with an excess absorption and
credit expansion, and foreign investment mainly in nontradable sectors
• Economic growth was not related to innovations and
investment in high-technology industries, to increase
employment and equity in income distribution
• Trade liberalization efforts stimulated exports, but in
fact, exporters haven’t been able to make use of the
international trade preferences
Main obstacles to trade
•
Business climate reforms were implemented – but SMEs and
sensitive sectors have only marginally been effected by this
•
Forced diversification in the Georgian economy have highlighted a
lack of expert knowledge, infrastructure and logistics
•
The agriculture sector represents the biggest employer but lacks
commercialization, productivity, export capacities, compliancy with
international standards and has weak market channels
•
The wine sector – one of the main exporting sector – witnessed the
loss of access to traditional markets. In addition, there remain
issues with compliancy to consumers preferences and standards
on alternative markets, branding and marketing
• There is the need to restructure the agricultural sector in
order to increase export capacities and improve its
competitiveness
• Lack of human resource competencies and adequate
scientific knowledge
• Improving educational capacities (including for existing
specialists)
• Supporting scientific and research activities
• Establishing market information and intelligence systems
• Raising Georgian brands awareness
Main recommendations
• Business reforms need to be adequately transformed
facilitating growth which positively affects human
development
• In order to ensure maximum HD impact, strategies need
to target labor intensive sectors, increase labor efficiency
and investments for the development of the labor
force
• In connection to the Government’s programme of TBT
(Technical Barriers for Trade) and Georgia EU FTA
negotiations it is necessary to improve trade service
institutions both on a legislative and practical level
• Further support to SMEs and entrepreneurship in
key sectors should be considered by policy makers
• Enhancement of trade competitiveness should be
promoted through:
o enhancing institutional mechanisms by the government,
o partnership relationships and joined efforts of private
companies
• To ensure long term economic development, and stable
growth rates, the social impact of growth must be
improved alongside the elimination of barriers for
producers that want to produce for export
• Improve trade promotion services:
o Improved access to market information
o Improved access to finance (credits), trade guarantee schemes,
harvest collateral schemes
o Development of certification infrastructure (SPS standards) in line
with international standards
o Improvement of transportation and logistics
• Maximization and integration of the agriculture sector within
the international trade system through:
o
o
o
o
o
o
Access to trade promotion services
Application of advanced technology and inputs
Enhancing S & PS standards in agriculture
Identify new trade channels and niches for Georgian goods
Increase resources for agricultural and agro- food research
Develop agricultural and extension services vocational
education in agriculture and processing/manufacturing
o Introducing a special support programmes in:
o mechanization, use of fertilizers and irrigation, agriculture
management practices, organization, providing quality and
safety controls to enhance efficiency and improve trade
capacity in the agricultural sector
• Identification of priority sectors that will present the basis for
industrial development with a special focus on new technologies
and knowledge
• Promote Georgian wine export - establishing and
promoting “Brand Georgian Wine” at global markets