Georgian Business Seeks Small-Sized Effective Government
22 September, 2011
Georgian Business Seeks Small-Sized Effective Government

Chamber of Commerce and Industry of Georgia drafted a new action plan for business development in 2011-2013 that seeks governmental support but suggests cutting down of governmental share in business. 

“Our business is your success” – this is the message sent by Georgian Chamber of Commerce and Industry (GCCI) after airing the new action plan early this September.

The Chamber sees its mission in business revival and development of market economy, where intervention of the government is kept to a minimum. To

achieve this goal the list of priorities in 2011-2013 is topped by jobs creation for economic recovery begins with creation of new jobs. Therefore the Chamber will be focused on implementation projects with maximum potential of new jobs creation. But jobs are created only if business is expanding that needs stimulation in Georgia. To this end Chamber seeks governmental support and sends following messages to government: to care for safety, invest in basic infrastructure at this stage as far as business cannot independently develop high-priced infrastructure, and also keep a small-sized effective government.

“Safety is our main priority - only safety can give an impetus to business development. The effective fight against violations must be continued by the government,” Chamber source said. “It is important to us to retain a small-sized effective government – increase in the government’s size is directly proportional to decrease in share of business in total economy and slows down creation of new jobs. The government must retain a low tax regime so that we can have a possibility to make re-investments.”

To implement its goals CCIG plans to keep a constant dialogue with government on dynamic development of the taxation policy according to the changes in structure of the business in 2011-2013 for taxation is still an Achilles heel for business in Georgia.

On the other hand the Chamber thinks to boost investments in the human and infrastructure capital. “Human capital and well-established infrastructure are the basis for successful business conduct. We will be proactive with the government in order to convey business’ demand into the government investment,” they say.

Budget and fiscal responsibility of the government do also matter to the Chamber as it is important to know how the government spends the money collected in taxes from the businessmen. They plan to work closely with the government in order to lobby the small and effective government concept. The expenditure structure is also very important as long as the government is the one of the most important sources of indirect financing of business.

GCCI also finds crucial participation of Small and Medium Enterprises (SME) and self-employment in economic development of the country. Proceeding from economic, demographic and geographic structure of Georgia, considerable growth can be achieved by developing of tourism and agriculture and share of small businesses and self-employment in such sectors can be especially large.  GCCI will assist SME to ensure their maximal participation in cooperation with the government.

On the other hand GCCI promises to work intensively with government in order to expand the boundaries for integration of Georgian businesses, including penetration into the non-traditional regions of Asia and Europe (e.g. Arab countries, Indo-China).

Moreover, GCCI finds deregulated economy to be an indispensible condition for rapid business development and plans to work with the government to reduce regulatory burden of the government by all means including e-management, etc.

In order to facilitate businesses within the given priorities the GCCI provides a long list of different practical solutions that includes  “easy certificate” – an electronic Certificates of Origin will be issued by the Chamber; “arbitrage” - the independent, fast and fair Arbitrage Court will be created in the Chamber for corporate disputes adjudication.

The Chamber will become the member of the CRS network “book.ge”, whereby any Georgian or foreign customer will be able to get electronic information on the Georgian hotels and make reservations as well.

Chamber also offers to its members new opportunities to find a partner/investor, electronic bulletin with information on Georgian companies and economic trends will be sent to Georgian and foreign businessmen and financial organizations. Researches on risk assessment will be undertaken to assist businessmen in assessing the risks.

“Produced in Georgia” – verification of the quality of goods by means of introducing internationally recognized private verification systems (e.g. Lloyd’s evaluation) is a part of GCCI program. Various exhibitions will take place within the same program that also includes “Attorney” - the fiscal attorney services for the taxation mediation and support in the settlement of disputes.

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