Publication provides an overview of how the initiative could advance relations between China and the three countries of the South Caucasus, namely Armenia, Azerbaijan, and Georgia. The publication also sketched out the dynamics of the BRI related to transport connectivity, bilateral trade and foreign direct investment.
The research aims to study the current state of affairs in the rural economy and to identify steps towards its diversification by analyzing the vision, strategy and programs of the Government of Georgia, as well as regional and municipal authorities. We evaluated the development potential of linkages between farm and non-farm sectors and basic factors supporting the diversification of the rural economy.
This paper examines the status of SME finance in Georgia and the involvement of Georgian SMEs in global value chains. The role of SMEs in Georgia’s economy, SME funding, and the status of financial inclusion for SMEs are analyzed. Moreover, the level of financial literacy and skills of SME entrepreneurs is discussed.
Furthermore, the paper analyzes the Georgian agricultural sector’s value chain and the involvement of this sector in global value chains by discussing the case study of the hazelnut. An analysis of the agricultural sector’s value chain financing in Georgia is carried out, its availability and development are discussed, and best practices of value chain financing are analyzed.
Based on existing information, the paper identifies barriers to SME finance in Georgia and proposes policy recommendations and immediate actions with regard to existing government policies.