Paris, France, and Tbilisi, Georgia, 15/12/2020 - The OECD and the Government of Georgia today launch the results of an 18-month project to assess the investment climate in Georgia, with the support of the European Union as part of its EU4Business initiative.
Georgia is now, like much of the world, facing the unprecedented health and economic consequences of the COVID-19 pandemic. The government rapidly adopted monetary and fiscal measures to support healthcare provision and liquidity, and to assist at-risk firms and individuals. The pandemic’s impact on business, travel, remittances and investment are nonetheless likely to have a severe impact on the economy. Together with public investments, private investment, both foreign and domestic, will be essential for Georgia’s economic recovery.
The Review assesses Georgia as one of the most open economies to foreign investment and commends government reform efforts. Successive reforms over the past three decades have helped improve the legal framework for investment. Core investment legislation establishes a level playing field between foreign and domestic investors and provides a clear and predictable framework for property rights. Well-developed laws and institutions on data protection and cybersecurity are also noteworthy.
Further reforms will need to address gaps in infrastructure and connectivity within the country, and upgrade the skills of the workforce. Improving not only regulatory settings but also the whole investment climate will help Georgia attract FDI that can have a positive impact on productivity and inclusive, sustainable growth.
A number of important challenges remain. Efforts are needed to continue reinforcing the independence, accountability and capacity of the judiciary to build investor confidence in the court system. Other important challenges include ensuring that intellectual property rights are enforced effectively, continuing to realise universal land registration and continuing to improve the legal and institutional infrastructure for alternative dispute resolution services.
The Review also includes specific thematic analyses and recommendations to:
The OECD Investment Policy Review of Georgia provides Georgia with a systematic approach to investment climate reforms by using the OECD Policy Framework for Investment’s well-tested methodology. The OECD carried out the Review in close co-ordination with an inter-ministerial task force led by the Ministry of Economy and Sustainable Development and established to discuss the Review in a whole-of-government approach. The Review has benefited from a peer review of the OECD Investment Committee and numerous stakeholder consultations.
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Daniel Quadbeck (Daniel.QUADBECK@oecd.org), Senior Policy Analyst, OECD Global Relations Secretariat
Stephen Thomsen (Stephen.THOMSEN@oecd.org), Head of OECD Investment Policy Reviews