ეკონომიკური მიმოხილვა და ინდიკატორები - მთლიანი შიდა პროდუქტი 2013 წელი

Economic Outlook and Indicators – Gross Domestic Product (GDP) - 2013

In an era where critical infrastructure security and resilience (CISR) has become paramount to national security, economic stability, and public safety, nations are increasingly recognizing the importance of bolstering their protective measures and governance models. Georgia stands on the cusp of a significant reform, aimed at enhancing its critical infrastructure security and resilience. This policy paper presents an initial analysis of Georgia’s current critical infrastructure protection (CIP) landscape as well as insights from the governance models of two EU Member States, and sets out a potential path forward that could serve to safeguard Georgia’s infrastructural assets and align its policies with global best practices.

Currently, the potential of the economic value of Non-Timber Forest Products (NTFPs) largely goes unnoticed in official statistics and research publications despite NTFPs being important natural resources that support sustainable bioeconomy value chains, green jobs, alleviation of poverty, and economic and social development. The purpose of the assessment is to overview the existing literature on NTFPs, select the priority NTFPs and provide additional insights regarding the NTFP value chain in Georgia, with an additional focus on target regions.

Despite the data limitations, the analysis shows the increasing global demand for NTFPs and the potential for the development of NTFP sectors in Georgia. On the other hand, the NTFP value chain in target regions (Mtskheta-Mtianeti, Guria, and Kakheti) has further potential for development considering the abundance of selected organic wild NTFP products on their territories. However, issues like the lack of labor force, lack of knowledge on sustainable harvesting and product diversification, and the number and capacity of the processing enterprises create hindrances to the development of the value chain and higher inclusion of local vulnerable groups with an aim to improve the general socio-economic situation in rural areas.

This document has been prepared by PMC Research within the framework of the project “Enabling the Implementation of Georgia's Forest Sector Reform - ECO.Georgia”, funded by the Green Climate Fund (GCF), the German Federal Ministry for Economic Cooperation and Development (BMZ), the Swiss Agency for Development Cooperation (SDC) and the Government of Georgia (GoG) and implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), the Ministry of Environmental Protection and Agriculture of Georgia (MEPA), through its subordinated agencies and the Ministry of Economy and Sustainable Development of Georgia (MoESD).

The war in Ukraine has significantly altered trade dynamics in the Black Sea region. Firstly, it has created security challenges and increased tensions between countries. On the other hand, it has also unlocked opportunities to utilize the potential of the Black Sea as a strategic location and international transport route. With this context in mind, it is important to analyze intra-Black Sea countries’ trade, to identify the patterns and volumes of goods exchanged among these countries, and to determine the dynamics of regional economic cooperation and transportation networks. This bulleting provides analysis of the trade data of Black Sea countries and present the main trends in trade in and among Black Sea countries and provides some recommendations on how to both address existing challenges and realize opportunities

The retail industry is one of the important drivers of the Georgian economy. Therefore, it is important to analyze the current situation and future prospects of the sector to identify existing challenges and opportunities of the sector. Additionally, the research aims to share the specifics of the sector and its economic importance to the general public and, as a result, to raise awareness in this direction.

The research structure of the retail trade sector includes an overview of the Georgian retail value chain processes, analysis of key sector indicators, financial indicators, and challenges in the sector.  At the last stage of the research, based on the main findings, recommendations are developed, the purpose of which is to eliminate the challenges in the sector and promote the development of the sector. 

The study examines the challenges faced by state agencies regarding various forms of labor relations, and embraces the perspectives of multiple stakeholders.

The study had two primary objectives: to analyze common challenges related to labor relations among civil servants; and to assess the need to identify additional categories of personnel within state agencies that might require specific regulations. Based on the research findings, the study issued recommendations to tackle the challenges highlighted.

The research was conducted with the support of UNDP and the UK government, with the aim of promoting cooperation between civil society organizations (CSOs) and state institutions regarding ongoing public administration reform topics.

This paper provides a comprehensive understanding of household income distribution in Georgia. It presents an analysis of income inequality beyond the traditional Gini coefficient by examining additional dimensions of income distribution. More precisely, the paper compares the income of different segments of society, household income in rural and urban areas, and between regions.

This paper set out to provide transportation planners and policymakers with a systematic process through which to estimate costs representative of the area and service in question and to ease their analysis and decision-making procedures. Although the methodology presented herein is not meant to replace the in-depth and detailed feasibility studies or professional railroad planning activities, it can be used as an intermediate tool to allow planners to more easily perform railroad analysis and planning activities, prior to contracting out feasibility studies. Finally, should this research be further developed, it ought to address other categories of railway services, such as intercity and high-speed trains.

Since mid-2020, when stringent restrictions were imposed to combat the spread of the COVID-19 pandemic, inflation has been running at multi-decade highs in many countries across the globe. In 2022 in particular, inflationary pressures from pandemic-related disruptions were exacerbated by the Russo-Ukrainian War and spiking food and energy prices. In response, central banks implemented different monetary policy approaches in an attempt to stabilize the situation. Against this background, recent inflationary trends and monetary policy approaches adopted by economically diverse Black Sea countries are analyzed and compared in this issue of Black Sea bulletin.

Russia’s full-scale military aggression and the ongoing war in Ukraine have led to a fundamental overhaul of the West’s defense and security policy and practice. In addition, a large-scale conventional war on European soil and the successful defensive operation of Ukraine has prompted defense and security professionals to reconsider the importance of total (comprehensive) defense.

The total defense system was established during the Cold War in non-NATO member states that faced threats from a superior adversary. The concept has adapted to new security challenges and evolved from a comprehensive defense system to a comprehensive security model.

Since 2017 Georgia has been trying to build its defense and security system on the principle of total defense. However, it has not yet approved the necessary political and strategic guidelines, conceptual framework, implementation plan, and assigned resources.

Based on the Baltic and Nordic States case study, the paper identifies the critical conditions for implementing an effective and efficient total defense system and assesses the state of play in Georgia consistent with the case study’s findings.

The report provides an analysis of economic trends in Georgia, as well as denoting the challenges and opportunities (in local, regional, and global contexts) across selected value chains within six sectors to improve evidence-based decision-making through the provision of quality information and analytics. The specific sectors are tourism, creative industries, light manufacturing, shared intellectual services, waste management and recycling, along with cross-cutting sectors. The analysis tracks trends of 2022. This report was developed by PMC Research Center and ISET Policy Institute within the USAID Economic Security Program.

A study of the “Assessment of Asylum Seeker, Refugee and Humanitarian Status Holder Youth in Georgia” has been prepared by PMC Research with the support of the United Nations High Commissioner for Refugees (UNHCR). The study’s overall objective was to assess the current situation of asylum seekers, refugees, and humanitarian status-holding youth (i.e. those aged 14-291) in Georgia, including with respect to their access to rights and services. The study was conducted in December-March 2023.

The study analyzes the development of the governance model of higher education institutions (HEIs) in Georgia and external mechanisms used to evaluate the quality of education in Georgia in relation to the policies and processes currently prevalent in European education systems. The aim of the study was to develop recommendations for policymaking and implementing bodies, taking into account the identified gaps and shortcomings.

This paper thoroughly examines the existing Georgian cryptocurrency laws to identify their primary shortcomings. Moreover, it analyzes the bills proposed in the EU and the United States. After examining the local regulatory environment, comparing it to international practices, and considering the idiosyncrasies of the Georgian economy, the paper also proposes amendments to improve the existing policy.

This study was written by our researcher, and was published in the European Sociological Association’s European Societies journal. Tap on the title to access the full article.

Shortfalls of Deliberative Democracy in Georgia: Analysis of the General Assembly of a Settlement 

ScienceDirect’s Evaluation and Program Planning international journal recently published this article written by our researchers. Tap on the title to access the full article.

Simple But Not Simplistic: Findings from a Theory-driven Retrospective Evaluation of a Small Projects Program

The unprovoked Russian invasion of Ukraine not only disarranged the economic and political state of the world but also worsened the lives of millions of Ukrainians. Since the war began, more than 7 million refugees have left Ukraine and Georgia is among the countries Ukrainian refugees arrived after the start of the war. To assess Ukrainian refugees’ needs, education, skills and the labor market integration process in Georgia , PMC Research Center with the support of Konrad-Adenauer-Stiftung conducted a study in August-December 2022. Moreover, the study intends to produce recommendations for stakeholders to develop need-based services and support Ukrainian refugees' integration into the Georgian labor market.

The Black Sea region is often referred to as a gateway between Europe and Asia, though its potential benefits are far from being fully realized. This is especially true for maritime trade - the Black Sea region’s share in international maritime trade is only just 2.5%, while the North Sea region accounts for 17%. And despite there being huge potential in the enhancement of port infrastructure and connectivity in the Black Sea region countries, the varying and distinctive geopolitical orientations of these countries largely hinder any significant advancement in regional cooperation.

The problem became even more severe with the latest military conflict in the region – the Russian invasion of Ukraine in February 2022, which besides aggravating cooperation problems has significantly shaken up the landscape of the Black Sea’s port infrastructure and maritime trade in the region and the security dynamics not only in the wider Black Sea region, but it has also affected the European and, arguably, global security architecture.

The Diagnostic Study of the Light Manufacturing Cluster of Oni Municipality was carried out within the framework of the project financed by the European Union’s initiative - "Mayors for Economic Growth", which is implemented by the Oni municipality Mayor's Office and PMC Research Center. The contents of this document are the sole responsibility of PMC Research Center and can under no circumstances be regarded as reflecting the position of the European Union.

The Diagnostic Study of the Primary and Processed Food Products Cluster of Oni Municipality was carried out within the framework of the project financed by the European Union’s initiative - "Mayors for Economic Growth", which is implemented by the Oni municipality Mayor's Office and PMC Research Center. The contents of this document are the sole responsibility of PMC Research Center and can under no circumstances be regarded as reflecting the position of the European Union.

The Diagnostic Study of the Construction Sector Cluster of Oni Municipality was carried out within the framework of the project financed by the European Union’s initiative - "Mayors for Economic Growth", which is implemented by the Oni municipality Mayor's Office and PMC Research Center. The contents of this document are the sole responsibility of PMC Research Center and can under no circumstances be regarded as reflecting the position of the European Union.

The Diagnostic Study of the Tourism Sector Cluster of Oni Municipality was carried out within the framework of the project financed by the European Union’s initiative - "Mayors for Economic Growth", which is implemented by the Oni municipality Mayor's Office and PMC Research Center. The contents of this document are the sole responsibility of PMC Research Center and can under no circumstances be regarded as reflecting the position of the European Union.

Applying the Everyday Peace Indicators (EPI) methodology, this research on everyday peace attempts to explore how people in conflict-affected societies perceive and describe peace in their everyday life; more specifically, the research was guided by two questions: What are the perceptions of everyday peace in conflict-affected societies in the Georgian, Abkhaz, and South Ossetian contexts?  What are key factors influencing everyday peace in conflict-affected societies? 

The research report entails the Everyday Peace Indicators for each research location, as well as key factors and cross-cutting themes influencing everyday peace across the conflict-divided societies. The needs and perceptions of everyday peace amongst women and youth are outlined in separate chapters.   

The purpose of the research is to assess the representation of ethnic minorities, in particular, Azerbaijani and Armenian-speaking groups, in civil service and identify barriers that limit their active engagement in this sector. In addition, the study evaluates the practices of data collection on civil servants’ ethnic background in accordance with the indicator of Sustainable Development Goals and examines the perspectives of different stakeholders on this issue.

The purposes of this study are to explore the professional development opportunities for academic staff at Georgian public higher education institutions (HEIs), to analyze their implementation and effectiveness from the perspective of HEIs and academic staff, and to uncover the ways through which these can be advanced to better serve the development goals and priorities of HEIs and faculty. The paper briefly reviews the existing literature on the evolution of faculty professional development (FPD) and its role in both fostering universities’ academic and institutional transformation and in revitalizing academic staff capacity. The review also describes the common configurations of structures and practices of FPD and the aspirations for its implementatio

This quarterly report provides an analysis of economic trends, as well as denoting the challenges and opportunities (in local, regional, and global contexts) in selected value chains within six sectors to improve evidence-based decision-making by providing quality information and analytics. The specific sectors covered are tourism; creative industries; light manufacturing; shared intellectual services; solid waste management and recycling; and cross-cutting sectors. The analysis tracks trends from the third quarter of 2021.

This policy research paper aims to draw the attention of stakeholders in Georgia’s energy sector to the issue of prices, their importance in energy security, and electricity supply security. The paper firstly reviews the existing academic and policy literature and afterwards analyses the current structure of the wholesale electricity market in Georgia to identify different prices and payment schemes. This analysis of the Georgian regulatory framework, along with current data and tendencies, allows us to identify some fundamental issues that are inherent in the structure of the ongoing wholesale electricity market in Georgia. As a result, this policy research paper highlights some challenges that need resolving in order to strengthen the security of supply in the electricity market.

This quarterly report provides an analysis of economic trends, as well as denoting the challenges and opportunities (in local, regional, and global contexts) across selected value chains within six sectors to improve evidence-based decision-making through the provision of quality information and analytics. The specific sectors are tourism, creative industries, light manufacturing, shared intellectual services, waste management and recycling, along with cross-cutting sectors. The analysis tracks trends from the second quarter of 2021.

Please find the full publication in English and the executive summary of the report in Georgian.

This quarterly report provides an analysis of economic trends, as well as denoting the challenges and opportunities (in local, regional, and global contexts) across selected value chains within six sectors to improve evidence-based decision-making through the provision of quality information and analytics. The specific sectors are tourism, creative industries, light manufacturing, shared intellectual services, waste management and recycling, along with cross-cutting sectors. The analysis tracks trends from the first quarter of 2021.

Please find the full publication in English and the executive summary of the report in Georgian.

This quarterly report provides an analysis of economic trends, as well as denoting the challenges and opportunities (in local, regional, and global contexts) in the selected value chains within six sectors to improve evidence-based decision-making by providing quality information and analytics. These specific sectors are tourism, creative industries, light manufacturing, shared intellectual services, waste management, and recycling, along with cross-cutting sectors. The analysis tracks trends from 2016 to December 31, 2020.

This quarterly report provides an analysis of economic trends, as well as denoting the challenges and opportunities (in local, regional, and global contexts) in the selected value chains within six sectors to improve evidence-based decision-making by providing quality information and analytics. These specific sectors are tourism, creative industries, light manufacturing, shared intellectual services, waste management and recycling, along with cross-cutting sectors. The analysis tracks trends from 2014 to the third quarter of 2020. The following is a synopsis of the findings for this quarter: Tourism (accommodation, catering, adventure tourism, gastronomic tourism, and cultural tourism); Creative industries (media content production and post-production, and artisan); Light manufacturing (furniture, packaging, construction materials, personal and protective equipment (PPE), and wooden toys); and Solid waste management and recycling.

Please find the full publication in English and the executive summary of the report in Georgian.

This policy brief on the shared intellectual services sector in Georgia has been developed by Policy and Management Consulting Group (PMCG) under the USAID Economic Security Program. Its aims are to identify the key economic policy challenges in Georgia existing in this sector, and to facilitate dialogue between private and public sectors including a wide spectrum of civil society and political representatives.

The research objectives are to examine the challenges that exist in the civil servants’ professional development system, in general, explore barriers specifically associated with the shift to online learning, assess the readiness of civil servants for online training, and develop recommendations to increase the effectiveness of remote teaching.

The research methodology is based on a mixed-method design and combines qualitative and quantitative approaches: analysis of the existing documents, interviews with key informants, focus group discussions, and a computer-assisted telephone survey that is representative for professional civil servants working in the councils and town halls across the country. In order to provide in-depth analysis of the issue, the research draws on the perspectives of multiple stakeholders, including civil servants as well as representatives of the Civil Service Bureau, international organizations, and training centers.

PMC Research conducted a diagnostic study of fruit and vegetable processing cluster and hazelnut processing in Guria region of Georgia, and developed a cluster map, and elaborated short-term objectives as well as a long-term vision for the development of this cluster. 

The study is part of the “EU Innovative Action for Private Sector Competitiveness in Georgia (EU IPSC)” program, which is a joint initiative of the European Union and the following four UN agencies: the United Nations Development Programme (UNDP); the Food and Agriculture Organization (FAO); the United Nations Industrial Development Organization (UNIDO); and the International Organization for Migration (IOM). 

PMC Research conducted a poultry cluster diagnostic study in Kvemo Kartli region of Georgia, and developed a cluster map, and elaborated short-term objectives as well as a long-term vision for the development of this cluster. 

The study is part of the “EU Innovative Action for Private Sector Competitiveness in Georgia (EU IPSC)” program, which is a joint initiative of the European Union and the following four UN agencies: the United Nations Development Programme (UNDP); the Food and Agriculture Organization (FAO); the United Nations Industrial Development Organization (UNIDO); and the International Organization for Migration (IOM). 

PMC Research described both the history and the current reality for the marine fishing cluster in Samegrelo-Zemo Svaneti region of Georgia, analyzed business operations within it, developed a cluster map, and elaborated short-term objectives as well as a long-term vision for the development of this cluster. 

The study is part of the “EU Innovative Action for Private Sector Competitiveness in Georgia (EU IPSC)” program, which is a joint initiative of the European Union and the following four UN agencies: the United Nations Development Programme (UNDP); the Food and Agriculture Organization (FAO); the United Nations Industrial Development Organization (UNIDO); and the International Organization for Migration (IOM). 

PMC Research described both the history and the current reality for the hazelnut processing cluster in Samegrelo-Zemo Svaneti region of Georgia, analyzed business operations within it, developed a cluster map, and elaborated short-term objectives as well as a long-term vision for the development of this cluster. 

The study is part of the “EU Innovative Action for Private Sector Competitiveness in Georgia (EU IPSC)” program, which is a joint initiative of the European Union and the following four UN agencies: the United Nations Development Programme (UNDP); the Food and Agriculture Organization (FAO); the United Nations Industrial Development Organization (UNIDO); and the International Organization for Migration (IOM). 

The goal of this research is twofold. Primarily, it provides an assessment of the cybercrime situation in Georgia and projection of possible developments, as well as envisages policy recommendations for responsible public authorities. The secondary, but not less important goal is to facilitate awareness-raising through developing analytical information regarding problems and ways of their solutions. Georgian citizens are end victims who suffer from any national security threats including cybersecurity incidents and cybercrimes. Informing the public and raising awareness gain utmost importance, especially in conditions of hybrid threats. Social resilience could not be ensured without a wider engagement of informed and socially active citizenry.

Key Findings

• Cybercrime is still an emerging phenomenon in Georgia, its damaging potential is not fully exposed and the threat is not perceived properly either by the government or the society;
• Highly likely cybercrime remains underreported in Georgia as in many other countries of our region;
• The MIA is focused on pure cybercrimes and does not calculate cyber-enabled crimes under cybercrime statistics that leaves room for ambiguity;
• From the perspective of criminal justice, policy cybercrime still does not expose serious challenge to society as its share in general criminal statistics is not significant;
• In the context of national security, cybercrime is more dangerous than other crimes as it represents an instrument of transformation of external threats into serious problems of internal security;
• Georgian Police handle cybercrime generally in a reactive manner, with more focus on response - investigation and pursuit, lacking a comprehensive preventive approach;
• LEA has certain problems in investigation and digital forensic, especially, in the regions;
• Lack of coordinated government policy, mature engagement of the private sector and low public awareness in the light of digitalization of social life, increasing internet and ICT access are main factors affecting cybercrime statistics negatively;
• Transnational criminal activities expose little danger to Georgia cybersecurity nowadays, but it`s predictable that GOCGs being an important part of transnational organized criminality, will increase their illegal activities in the digital space;
• Lack of sustainable financial support to develop key cybersecurity services and programs is observed;
• As main determinants affecting of raising cybercrime in Georgia are mostly generated through complex internal socio-economic and technological developments and external geopolitical processes and the GOG has limited capacity to influence significantly on most of those factors in a short-term perspective, it can be implied that in the nearest 5 years’ period, the trend of raising cybercrime rates in Georgia will be maintained. Highly likely cybercrime would be increased approximately by 25-30% per year in comparison to 2020 rates and gradually, it will easily overcome 5% share of total criminal cases registered by the police in 2022.

Recommendations

Recommendation #1. More preventive, proactive and protective policy:

• Set up a comprehensive strategic agenda for cybercrime preventive measures. Georgia needs to develop not only reactive but also proactive measures for combating cybercrime;
• Change the approach of calculating cybercrime statistics to consider numbers of cyber-enabled crimes in total number of cybercrimes;
• Develop joint interagency task force from key government stakeholder institutions, equipped with strategic, operational and tactical tools, to unify efforts and undertake comprehensive and adequate measures for deterring external threats or mitigating the risks;
• Elaborate long-term strategy and action plan for combatting cybercrime, which will include capacity building, large-scale public awareness projects jointly organized by relevant government agencies (participation of the institutions responsible for implementing educational and youth policy is highly recommended);
• Draft and adopt legislative framework empowering the police for utilization ethical hacking and other proactive measures in cyberspace;
• Increase funding of cybersecurity dimension.

Recommendation #2. Develop workforce and institutional capacity:

• Increase human and technological capacity of cybercrime investigators, especially at the regional level. Regular training programs with no gaps, as new sophisticated attacks require qualified people to deal with;
• Develop national training infrastructure for LEAs and security sector agencies to fill the gaps of human resources and facilitate professionalization of their personnel in cybersecurity, cybercrime investigation techniques and digital evidence;
• Increase efforts for participation in international exercises and trainings to increase international LEA cooperation with a special focus on combatting cybercrimes;
• Work more actively with LEAs of partner countries, international and regional law enforcement organizations in joint working groups and other platforms to detect activities of GOCGs in cyber sphere and be informed about possible threats;
• Create specialized cybercrime police units in every region of Georgia, equip them with special crime detection software and technical solutions that will increase early warning opportunities and increase other preventive technics;
• Equip and train enough police personnel properly for conducting tailored proactive policing measures countrywide.

Recommendation #3. Develop cyber culture:

• Take active measures for public education and awareness, the empowerment of Georgian information society; reduce the success rate of many forms of cybercrime by educating individuals and organizations in recognizing criminal activity before they fall victim to it;
• Through various institutional frameworks achieve engagement of multiply government agencies having a large set of beneficiaries and active partnership with the private sector in the awareness-raising process to increase the outreach;
• Implement tailored educational campaigns for professional civil servants in cybersecurity, cyber hygiene and misinformation campaigns;
• Implement tailored and large-scale awareness-raising campaigns for the most vulnerable social groups;
• Share information about threats, best practices, specialized capabilities among stakeholders to build trust and demonstrate value for them;
• Raise awareness among decision-makers and senior management of LEAs to determine strategic priorities regarding cybercrime and electronic evidence.

Recommendation #4. Co-share resources between CERT and MIA:

• Temporary secondment - assignment, transfer of LEA professional in CERT in order to get a hand-on experience of CERT incident collection and reporting, classification approaches, together define procedural and organizational formalities. On the contrary, CERT representative can be shifted to cybercrime office in order to get more insight into procedural powers, investigation techniques and assist the process with technical cyber know-how. This advice is vastly promoted by ENISA, Council of Europe as a cooperative tool between cybercrime and cybersecurity authorities;
• Adopt unified operational standards, develop the capacity of joint work; the experience of joint risk assessment teams of the MIA and the LEPL Revenue Service could be a useful example;
• Key steps required for information exchange between CERT and the police: Define a common taxonomy related to incidents and events in cybersecurity; Define an exchange standard to enable the sharing of information based on the taxonomy
• Create statistics based on the information exchanged.

Recommendation #5: Connect, communicate and collaborate:

• Strengthen formal and informal cooperation frameworks to combat cybercrime in order to build an effective and sound governance system;
• Elaborate and adopt legislative requirements for the exchange of information between public and private sectors;
• Foster cooperation between the MIA and ISPs;
• Develop a secure information sharing platform for the exchange of information on cyber-threats and incidents between cyber authorities;
• Undertake measures (including legislative amendments) to increase informed and responsible engagement of the private sector in strengthening the country`s cyber resilience.

Recommendation #6: Develop Cybercrime Reporting Mechanism:

• Establish a cybercrime reporting centre, hotline, providing a central point of contact for citizens and businesses;
• Develop coordinated mechanisms within the public and the private sector allowing citizens to report cybercrime cases, including online fraud, cyberstalking, child abuse online, identify theft, privacy and security breaches, etc.;
• Define common reporting methodology with written guidelines to broad stakeholder groups, including foreign counterparts;
• Launch awareness programs and communication campaigns to promote the regular use of reporting mechanisms by a wider community;
• Develop digital tools for cybercrime reporting.

Artificial Intelligence (AI) is increasingly becoming a part of our everyday lives. The use of Unmanned Aerial Vehicles (UAVs) was observed in the Nagorno-Karabakh conflict; AI model was developed to diagnose COVID-19. The leader of the Georgian Dream criticized opponents for using deepfake programs to misinform the electorate during the 2020 parliamentary election campaign. AI offers tremendous benefits for our societies, in terms of public governance, business development and healthcare, but it also raises important economic, legal and ethical questions.

Governments aiming to develop effective AI policies face a twofold challenge. On the one hand, they have to create an AI friendly eco-system, attract AI investors, boost the development of AI technologies, increase the industrial application of AI and therefore, improve overall, AI-generated economic and social welfare. On the other hand, governments should create policy frameworks to balance AI associated risks, which might be related to personal data protection, targeting, algorithmic discrimination, cybersecurity, and/or AI liability.

AI technologies are expected to add US$15 trillion value to the global economy by 2030. According to PricewaterhouseCoopers (PwC) research, global GDP could be up to 14% higher in 2030, as a result of AI. Several countries developed national AI strategies during the last couple of years. EU recently announced ambitious AI goals to compete with the US and China and issued several AI policy documents. Some of the EU member states (MSs) also made significant progress, in terms of national or sector-specific AI policies. US & China are world leaders in terms of AI technologies, but countries like Canada, Japan and Singapore also allocated solid resources for AI policy and research development. Leading international organizations like the World Economic Forum (WEF) and the Organization for Economic Development (OECD) established AI policy programs.

AI positioning of the developing and the developed countries differ greatly; AI could even widen the gap between the rich and the poor nations, by shifting more investments into developing countries and replacing the labour force of the developed nations. Georgia’s AI positioning in the world is modest. According to the AI Readiness Index, the country was ranked #72 out of 172 countries and #5 in the region, below Turkey, Ukraine, Belarus and Azerbaijan. Interestingly, out of 10 ranking dimensions, Georgia received the highest score in Data Representativeness (70.91) and the lowest in AI Vision (0). Georgia is a country of limited human, economic and technological resources. Considering the current AI state of play in the country and especially the issue with the “vision”, it is important to take radical and effective steps to improve global and regional AI competitiveness and ensure that Georgia is not left behind by the “AI revolution”.

Following the international experience, the first step for Georgia to tackle the AI-related challenges and opportunities could be the development of a comprehensive AI strategy. The research aims to investigate the potential of developing a national AI strategy in Georgia, which could potentially create an opportunity for further sector-specific AI policy developments/research. Strategy document could serve as the foundation for AI ethics and policy development in the country.

Working on a national AI strategy requires the involvement of a wide group of actors, including government representatives, business companies/associations, international experts, representatives of academic/research institutions and the public.

AI technologies are broadly applied in several sectors, from military to education, that is why it is significant for the strategy document to be comprehensive and cover important areas of governance and economy. Having a clear strategy could help to coordinate several governmental policies and ensure that there is no contradiction between the AI strategic goals and certain sectoral goals. Therefore, the strategy preparation process has to be transparent and inclusive, to ensure the high legitimacy of the document. The international aspect of the AI policy is also significant, both in terms of potential risks and business opportunities.

The research would be based on a qualitative policy research method, combining the secondary research and interviews with the relevant industry experts. The quantitative method would also be used in certain cases. The research data will include official governmental documents (regulations, policy and strategy documents, decisions and the statements of the government officials) and academic literature related to legal, technical, economic and ethical aspects of AI. The scope of the research would be limited to the AI policy issues in Georgia, the EU, MSs. The examples from two neighboring countries of Georgia – Turkey and Russia would also be used.

The second chapter of the paper focuses on the definition, historical development, application and importance of AI. The third chapter describes recent AI policy developments in different countries and identifies the main characteristics of these policies. The fourth chapter maps AI in Georgia and explores the current state of play of AI in the country with regards to the policy/regulation, business and education sectors. Based on the findings of the previous chapters and considering the experience of foreign countries, the fifth chapter provides recommendations for governmental, business and education sectors. The findings of the research are concluded in the final chapter.

This study analyzes the reasons behind citizens’ refusal to participate in public deliberation through the General Assembly of a Settlement mechanism in remote communities of Georgia. The report draws on the existing academic literature on both effective deliberation processes and reasons behind public disengagement in order to explain the indifference toward deliberation processes by populations in rural Georgia. By applying an analytical framework focusing on effective deliberation and the logic of non-participation, this research report uses a single case study (Mestia municipality) and qualitative research methods to show how superficial deliberation processes cause public disenchantment toward, and a lack of engagement in local decisionmaking processes and foster a public perception of civic participation mechanisms as ineffective.

This paper concentrates on the production and post-production (of audiovisual content) value chains within the creative industries sector and aims to facilitate dialogue between private and public sectors on the most critical policy/regulatory challenges. The paper is developed by PMCG under the USAID Economic Security Program. 

The study examines organic agricultural products in the Tianeti municipality and Lower Pshavi area (Dusheti municipality) of Mtskheta-Mtianeti region in order to introduce more economic opportunities in these deprived rural areas of Georgia. 

This study was conducted by PMC Research in collaboration with Biological Farming Association ELKANA, as part of an Austrian Development Cooperation project.

The study examines the rural tourism value chain in the Tianeti municipality and Lower Pshavi area (Dusheti municipality) of Mtskheta-Mtianeti region in order to introduce more economic opportunities in these deprived rural areas of Georgia. 

This study was conducted by PMC Research in collaboration with Biological Farming Association ELKANA, as part of an Austrian Development Cooperation project.

The paper reviews developmental implications of labour migration from Central Asia, analyses policy gaps in development-oriented migration management and offers recommendations to facilitate impactful engagement of local authorities in migration governance.

This paper is written by Dr. Giorgi Khishtovani, Director at PMC Research, with contribution from Maya Komakhidze, researcher at PMC Research. 

The aim of this document is to identify the key economic policy/regulatory challenges in Georgia’s tourism value chain and to facilitate dialogue between private and public sectors including a wide spectrum of civil society and political representatives. The paper is developed by PMCG under the USAID Economic Security Program. 

This study reviews each activity defined in the 2019-2020 action plan, which aims to develop the infrastructural part of the penitentiary system, and evaluates its implementation against pre-defined indicators.

The main objective of the research is to study the impacts that free trade agreements with the EU (DCFTA) and China had on Georgian economy and political implications that they might result in.

It’s been five years after DCFTA was implemented and two years have passed since FTA with China. It is interesting to conduct ex-post analysis to find out how these FTAs affected Georgia’s economy. Goal of ex-post analysis will be to determine what qualitative and quantitative impacts are observed after Georgia signed DCFTA and FTA with China, on macro and sectoral levels. Also, the research paper will try to find if DCFTA and FTA with China resulted in welfare gains. To be more precise, the paper aims to determine whether the increase in trade was a result of trade creation or trade was diverted.

Another aim is to analyze quantitative effects on imports and exports on different aggregation levels. For conclusion, research paper will analyze differences and similarities between DCFTA and FTA with China and based on these empirical findings, the research will identify possible threats and opportunities, which may come from future free trade agreements.

This policy brief attempts to understand China-Georgia relations. Georgia-China economic relations have received particular attention, yet there is a relative lack of research on how both Georgia and China see bilateral relations, and what possible factors could be limiting the depth of the partnership. Discussing this is important as Georgia is building closer ties with the EU in particular, and the Western institutions and states in general, while China’s suggested model of development stands opposite to Western liberal order.

PMC Research elaborated a report in order to prioritize community problems in Mestia municipality through the analysis of central and local government competences.

The study was conducted as part of the project “Support to the Development of Livelihoods in Disadvantaged Rural Regions of Georgia – Mestia/Samegrelo - Upper Svaneti Region,” which is funded by the European Union with co-funding from the Austrian Development Cooperation and is being implemented by Care Austria (CARE), in collaboration with PMC Research.

Local Development Strategy for Mestia Municipality 2020-2024, developed in 2019 by the Business, Public and Civil Sector of Zemo Svaneti with the assistance of PMC Research.

The strategy was elaborated as part of the project “Support to the Development of Livelihoods in Disadvantaged Rural Regions of Georgia – Mestia/Samegrelo - Upper Svaneti Region,” which is funded by the European Union with co-funding from the Austrian Development Cooperation and is being implemented by Care Austria (CARE), in collaboration with PMC Research.

The purpose of the research is to study the nature and aims of Russian propaganda and disinformation campaign in Georgia and the steps taken by the state and civil society organizations in response.

The following research discusses the New Peace Initiative entitled “A Step to A Better Future,” launched in April 2018 by the Government of Georgia.

The purpose of the study was to identify gaps hindering efficient human resource management, as well as to increase the predictability and protection of public servants’ activities.

The research report aims to identify functional regions in Kakheti, Georgia and analyze the most competitive subsectors in each of the regions.

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 purpose of this study is to inform the reader with the key information on the competitiveness of Georgia’s agricultural sector. 

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.

The main objective of the research is to study the extent to which the measurement of progress and the use of measurement data play a role in Georgian policymaking. 

The research was conducted by PMC Research in collaboration with People in Need, as part of the EU project “Regional Civil Society Organizations Supporting Free Trade with Europe.”

The study aims to map and analyze the private sector in Tbilisi, Samegrelo-Zemo Svaneti region (Senaki, Zugdidi, Tsalenjikha, and Poti municipalities) and Kvemo Kartli region (Marneuli municipality).

The assessment methodology entailed a combination of desk research and qualitative study. During the desk research, the size of the market in each of the target regions was studied and, by using the economic potential component of the Smart Specialization methodology, a private sector assessment was conducted. Smart Specialization is an approach that has been elaborated by the European Union (EU), and is widely used when analyzing national and regional competitiveness.

Under this approach, we have identified vital economic sectors (concentrated and competitive economic sectors) for the targeted regions, by using regional analysis methods such as location quotient (LQ) and shift-share analysis. With the help of shift-share analyses, competitive sectors for the targeted regions were identified, while concentrated sectors were identified by using LQ. After identifying concentrated and competitive sectors for targeted regions, the sectors which were both concentrated and competitive were chosen. If there was no such sector in a given location, then sectors were selected based on the shift-share analysis results. In addition, by applying enterprise birth and survival analysis, we identified economically active sub-sectors within each selected sector.

Within the scope of the research, existing municipal social programs have been evaluated, the core challenges were identified, and the recommendations were elaborated for the local and central authorities.

The purposes of this policy paper are to present the priorities of the Government of Georgia (GoG) in economic diplomacy, to map economic diplomacy institutions, and to describe their functions. It also aims to present practical cases of conducting economic diplomacy. Case studies of selected EU Member States which have assigned strategic importance to economic diplomacy in achieving their economic development goals are presented and these contribute to the elaboration of recommendations for Georgia.

The aim of the project is to study the impact of the BRI on the countries of Central Asia and the South Caucasus (CASC) and ascertain how these countries individually and through regional cooperative efforts can maximize the benefits of the BRI and manage any potential risks.

PMC Research, in cooperation with regional civil society organizations of the Kakheti region, conducted value chain analysis on blackberry with an emphasis on the export potential to the European Union market.

PMC Research, in cooperation with regional civil society organizations of the Imereti region, conducted value chain analysis on tomato with an emphasis on the export potential to the European Union market.

PMC Research, in cooperation with regional civil society organizations of the Samegrelo region, conducted value chain analysis on laurel with an emphasis on the export potential to the European Union market.

PMC Research, in cooperation with regional civil society organizations of the Samtskhe-Javakheti region, conducted value chain analysis on carrot with an emphasis on the export potential to the European Union market.

PMC Research developed Khulo local development strategy, aiming at improve employment and living conditions in Khulo Municipality through diversification of the rural economy.

The goal is to define and implement a plan for transforming resources and assets into the world-class tourism products, destination sites and create visitor’s experiences that will attract tourists from the region as well as from the world highest spending travel markets that will contribute to the national economy and local development.

PMC Research Centre, in cooperation with regional civil society organizations of the Mtskheta-Mtianeti region, conducted value chain analysis on raspberry with an emphasis on the export potential to the European Union market.

PMC Research Centre, in cooperation with regional civil society organizations of the Adjara region, conducted value chain analysis on mandarin with an emphasis on the export potential to the European Union market.

PMC Research Centre, in cooperation with regional civil society organizations of the Kvemo Kartli region, conducted value chain analysis on broccoli with an emphasis on the export potential to the European Union market.

Vocational education and training (VET) plays an important role in promoting selfemployment and increasing the competitiveness of the entrepreneurship of SMEs. The purpose of this policy brief is to analyze the existing challenges in the vocational education system hampering growth in the competitiveness of SMEs and to develop appropriate recommendations thereon. View the full text here.

This study compares the following four alternatives: keeping the status quo (Option 1); the 2009 Tbilisi Railway Bypass Project (Option 2); a city tunnel from Navtlughi district to Didube district (Option 3); and retaining the city’s main railway line and central station, but relocating all other railway infrastructure from the Didube-Nadzaladevi districts to the city’s peripheral districts (Option 4).

This paper has identified a clear interconnection between the BRI and Georgia’s economic development strategy in terms of infrastructure development and trade facilitation. Furthermore, this paper has suggested that Georgia could leverage the advantages of its trade agreements (DCFTA with the EU; FTA with China) and favourable business environment to be an important transit hub in the South Caucasus region and beyond.

This publication has been produced with the assistance of the European Union. The contents of this publication are the sole responsibility of People in Need and PMC Research Center and can in no way be taken to reflect the views of the European Union. The policy study presents recommendations on improving the state programme “Plant the Future.”

The research has been produced with the financial assistance of European Union within the project "Improving Regional Food Security in the South Caucasus through National Strategies and Small Holder Production".

During the past decade, Georgia reformed its health sector and achieved a decline in child and infant mortality, a reduction in expenditure of inpatient services, an improvement in accessibility, equity and affordability of healthcare services. However, healthcare still remained unaffordable for almost half of the population, and people were spending a large share of their income on out-of-pocket expenses in comparison to other low-and medium-income countries.

European Union’s (EU) strategic interest and relations with Georgia have been developing over past years. In this period, Georgia significantly deepened its ties with the EU. On the one hand, EU’s strategic interest and on other hand, Georgia’s considerable progress in the reforms maintained to implement EU’s foreign policy initiatives in Georgia such as the European Neighbourhood Policy (ENP) and the Eastern Partnership (EaP). These initiatives are aimed at economic development, fostering democracy, equality, rule of law and strengthening human rights credentials. In general, EU-Georgia relations have been centred on three main issues: assistance to political and economic transition processes, conflict resolution and support to the development of the energy potential of the country.

The paper attempts to analyse possibilities for energy transit from Iran to Georgia and further to the Western markets that have recently opened to energy supplies from Iran as international sanctions have been lifted. Iran, estimated to be the world's fourth-largest country by proven oil reserves1, and first or second by gas reserves2, is in the process of reclaiming its share of gas and oil exports to the world, and in particular to Europe.

Armenia’s decision to join the Eurasian Economic Union (EEU) exempted traders from union member countries from paying value added tax (VAT) and excise tax, thus putting Georgian traders in a disadvantaged position and breaking the main principles of the FTA between Georgia and Armenia.

The research aimed to assess the effects of this FTA on the Georgian economy, thereby enabling policy makers to limit possible negative effects and maximize benefits.

The primary aim of the research is to describe and analyze Georgia’s potential for the internationalization and export of higher education system, and to deliver policy recommendations.

The research provides analysis of the concept of compulsory measures of the EU Renewable Energy Directive (2009/28/EC) and to identify the gaps in the Georgian legislation on energy in terms of conformity with this EU directive.

The paper attempts to analyse possibilities for energy transit from Iran to Georgia and further to the Western markets that have recently opened to energy supplies from Iran as international sanctions have been lifted. Iran, estimated to be the world's fourth-largest country by proven oil reserves1, and first or second by gas reserves2, is in the process of reclaiming its share of gas and oil exports to the world, and in particular to Europe.

The research objective is to make recommendations to the government of Georgia to develop of an NDC Roadmap with regards to inter-ministerial coordination on the implementation of the EU Association Agreement energy tasks allied to climate change by providing a clear insight into the problems concerned with the institutional arrangement during the dealing with Climate & Energy cross-sectoral issues. 

The research is conducted in the framework of the project “Empowering Modern Research Practices of Regional Agriculture-Related Institutions”, implemented by PMC Research Center and Iakob Gogebashvili Telavi State University. The project is implemented by Georgian Rural Development Department of Georgian Institute of Public Affairs (GRDD of GIPA) in partnership with Caucasus Environmental NGO Network (CENN) and PMC Research Center and funded by European Union for Georgia ENPARD: Support to Agriculture and Rural Development. The project targets three direct beneficiaries from three different regions of Georgia: Batumi Shota Rustaveli State University of the Autonomous Republic of Ajara, Samtskhe-Javakheti State University of the Samtskhe-Javakheti Region and Iakob Gogebashvili Telavi State University of the Kakheti Region.

The research is conducted in the framework of the project “Empowering Modern Research Practices of Regional Agriculture-Related Institutions”, implemented by PMC Research Center and Iakob Gogebashvili Telavi State University. The project is implemented by Georgian Rural Development Department of Georgian Institute of Public Affairs (GRDD of GIPA) in partnership with Caucasus Environmental NGO Network (CENN) and PMC Research Center and funded by European Union for Georgia ENPARD: Support to Agriculture and Rural Development. The project targets three direct beneficiaries from three different regions of Georgia: Batumi Shota Rustaveli State University of the Autonomous Republic of Ajara, Samtskhe-Javakheti State University of the Samtskhe-Javakheti Region and Iakob Gogebashvili Telavi State University of the Kakheti Region.

The research is conducted in the framework of the project “Empowering Modern Research Practices of Regional Agriculture-Related Institutions”, implemented by PMC Research Center and Iakob Gogebashvili Telavi State University. The project is implemented by Georgian Rural Development Department of Georgian Institute of Public Affairs (GRDD of GIPA) in partnership with Caucasus Environmental NGO Network (CENN) and PMC Research Center and funded by European Union for Georgia ENPARD: Support to Agriculture and Rural Development. The project targets three direct beneficiaries from three different regions of Georgia: Batumi Shota Rustaveli State University of the Autonomous Republic of Ajara, Samtskhe-Javakheti State University of the Samtskhe-Javakheti Region and Iakob Gogebashvili Telavi State University of the Kakheti Region.

Society was always facing material security issue. Conventional approach, market mechanisms were unable to solve all the problems, so the state took responsibility for it. As a result, new challenges raised, that were exacerbated by the latest demographic trends and put under risk future sustainability of the state pensions system. The threat became a basis for the new reforms, including introduction of private pension savings.

Tariff policy plays an important role in providing “right” price signals for consumers, which is a necessary condition to improve the demand side energy efficiency (EE) in terms of the environmental, social and economic benefits. Improving EE is the most effective way to address challenges of energy security, import dependency and climate change. In spite of these benefits EE still remains underutilized in Georgia.

The research analyzes the general difficulties linked with agricultural lands, mostly surrounded with three major issues: large number of unregistered lands; the state as large owner of lands; and the limited right of foreigners to purchase land. The research discusses about the ways of overcoming these issues and gives appropriate recommendations.

During the past decade, Georgia reformed its health sector and achieved a decline in child and infant mortality, a reduction in expenditure of inpatient services, an improvement in accessibility, equity and affordability of healthcare services. However, healthcare still remained unaffordable for almost half of the population, and people were spending a large share of their income on out-of-pocket expenses in comparison to other low-and medium-income countries.

This paper reviews the experience of Great Britain in regulation of the service quality in natural gas sector. In line with British experience, Georgian situation in gas sector is analyzed and comparative analysis is conducted. Based on the analyses different policy options are provided. Based on comparison analyses recommendations how to improve service quality in the natural gas distribution business in the country is provided.

Solar power is one of the fastest growing renewable energy technologies becoming competitive with traditional sources of electricity generation. Its main characteristics are: high initial investment costs, free fuel during the operations period and environmentally friendly nature.

The study showed that a free trade agreement between Georgia and China has great potential. Georgia’s export to China would increase by 9% approximately, in the short-term period including significant growth of wine exports (28.5%) and non-alcoholic drinks (36.7%). On the other hand...

Even if the streets in Georgia are swept and clean, it does not mean that waste is managed in the country. Despite a big interest of the Georgian government, there are still no striking changes in the waste management in Georgia. A considerable step forward might be the “Waste Management Code” that entered into force on the 15th of January, 2015.

European Union’s (EU) strategic interest and relations with Georgia have been developing over past years. In this period, Georgia significantly deepened its ties with the EU. On the one hand, EU’s strategic interest and on other hand, Georgia’s considerable progress in the reforms maintained to implement EU’s foreign policy initiatives in Georgia such as the European Neighbourhood Policy (ENP) and the Eastern Partnership (EaP). These initiatives are aimed at economic development, fostering democracy, equality, rule of law and strengthening human rights credentials. In general, EU-Georgia relations have been centred on three main issues: assistance to political and economic transition processes, conflict resolution and support to the development of the energy potential of the country.

It was several decades ago when mankind observed that country’s development is no more function of economic growth and technological innovation only, but also environmental stability, healthy ecosystem and social equity, hence the term sustainable development emerged. Sustainable development concept is important in energy sector as well, since this sector is one of the most polluting and at the same time it is an engine for economic growth and technological innovation. Energy needs today should be met without compromising the ability of next generations to meet them in the future. To achieve the latter objective, the best and perhaps the only option is to manage successful transformation from fossil fuel to predominantly clean energy based economies.

In the period of 2003 - 2013, real growth of GDP averaged 6.3% in Georgia, however the benefits of the growth has not been equally shared among different groups of population. Despite the robust growth over the past ten years, as of 2013, 9.3% of total population remains below the poverty line. This poses significant challenges to the food security policy in Georgia. According to the Global Hunger Index1 (GHI) measured by the International Food Policy Research Institute, Georgia lags behind most of the countries in the region in terms of food security.

The research “Analysis of the medium term fiscal policy sustainability in Georgia” assesses the fiscal sustainability of the country in medium and long-term periods. A stable development oriented fiscal policy is crucial for the sustainable economic development of a country.

The research paper “Analysis of the State Procurement Policy of Georgia” studies the strength and challenges of the existing state procurement system of Georgia. The research is based on the analysis of state procurement policy, conducted interviews with representatives of large procuring entities and suppliers of goods and services, with representatives of the State Procuring Agency.

This report analysis state of play of Albania’s and Kosovo’s EU integration, it asseses the challenges and perspectives these countries meet in the process. Also, it presents experience of Georgia’s, as EU associated country’s successful insistutional reforms that are relevant for Albania and Kosovo.

PMC Research Centre presents economic analyses to the Labor Code of Georgia. The analysis is based on international empirical studies, experiences of other countries, and the survey of business leaders’ attitudes to the initiated amendments to the Labor Code of Georgia. The aim of the report is to analyze expected economic effects of mentioned changes.

The objective of the EU funded project was to support the ministry to generate staff opportunities by promoting human and institutional capacity development. In the frame of this project VCAs were conducted on honey, potatoes, and trout. The full text is available in Georgian.