Governmental Strategic Plan Resembles PR Action
03 November, 2011
Governmental Strategic Plan Resembles PR Action

The 10 paragraph-strategic plan of government is a part of PR campaign as far as it suggests nothing new and reiterates old well-known priorities and targets of the ruling power. 

Georgian government worked out a new four-year plan of strategic development of the country in 2012-2015 that consists of 10 key paragraphs and aims at macroeconomic stability, small size government in economy, low inflation rate, resistance to exogenous shocks, attractive business climate, improved social, educational and healthcare system, as well as

developed infrastructure in order to make Georgia trade and logistic hub in the region.

The paper accentuates that some European countries faced the underway economic crisis due to deteriorated macroeconomic parameters like either high budgetary deficit and foreign debt level or low economic growth and to avoid similar scenario in Georgia government focuses on detainment and improvement of the existing macro-economic data.

According to the plan, growth of GDP per capita is targeted to increase by 60-90% by 2015 compared to 2011 achieving USD 5-6 thousand per capita; the gross state debt in compliance with the Act of Economic Freedom initiated by government in 2009 should not exceed 60% of GDP and be reduced gradually to 25%. The budgetary deficit should drop to 3% by 2014.

Also in pursuance with the similar Act of Economic Freedom, the “share of government” in the state budget should be reduced. It means that budgetary expenses and government’s share in the non-financial assets should be fewer than 30% of GDP by 2014, investments should double  [compared with the last three years] and cut 6% of GDP, and the transport corridor through Georgia should be developed so as the country could be the most attractive transit country in the region with developed transportation routes  and warehouse systems.

As to inflation rate it must be detained within one-digit limits. Assets of banking sector as well as deposits and loans must increase 9-fold, the export of service and goods should double by 2015, Georgia should become a key winter-resort in the region and number of tourists should hit 5 million – more than the population of the country [making 4 636 400 at the moment].

“The document is a live thing that will be refreshed once in 6 months,” Nika Gilauri, Prime Minister of Georgia, said at governmental meeting on October 26, 2011. The plan is open to discussions at the moment.

However economic analysts call the new plan a declaration of wishes rather than a strategic plan that does not include detailed description of how to achieve all the targets built in the paper.

“The paper in other words means “good heath is better than sickness,” Soso Tsiskarishvili, an economic-political scientist said. “Can anybody name me a state that is against stable economy, well-fare and education? This long list of wishes lacks detailed analysis how to achieve goals and is rather a lustration that Georgia is on a wrong track of economic development, that its macro economy is weak, healthcare and educational system limp and infrastructure is underdeveloped. This is a quibbling of words rather than a serious strategic plan for the country.”

Davit Narmania, a Board Chairman of the Center for Economic Problems Research, thinks the new plan is a part of PR campaign as far as all the priorities and ideas suggested by the plan are already well-trumpeted targets envisaged by previous documents like Act of Economic Freedom and new economic course focused on easing business climate initiated in 2009 and 2010 respectively.

On the other hand Narmania wonders why all these ideas suggested by  the new four-year plan are not built in the Basic Data and Directions (BDD), a four year middle term budgetary layout of the state budget submitted to the parliament alongside with the state budget 2012 draft for parliamentary discussions.

He doubts that change of political situation defined by appearance Bidzina Ivanishvili, Georgian tycoon, at the political arena forced the ruling power to draft a new PR paper.

“The recently submitted BDD includes none of the ideas suggested by this here strategic plan that makes me suppose that the political situation made the ruling power to come with a new allegedly new economic plan that reiterates only old things,” he said.

Tsiskarishvili also believes that the new plan is a response to Ivanishvili’s initiative asking Experts’ Club to work out a plan of economic development of the country.

“Government tried to outpace us,” Tsisikarisvili who is a member of Experts’ Club, said. “We have just addressed to drafting the economic development plan but do not think to complete it as soon as possible, it will be a long process in order to make a really worthy plan backed by detailed analysis and research how to achieve targeted priorities.”

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