Policy Papers
Identification of Functional Regions and their Competitive Advantages in Kakheti, Georgia

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

Connectivity, Trade and Financial Integration of the South Caucasus Via the Belt and Road Initiative (BRI)

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.

Analysis of The Agricultural Sector: Value Chain and Export Potential in Georgia

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

Diversification of Rural Economy in Georgia

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.

Leveraging Small and Medium-sized Enterprise Finance Through Value Chains in Georgia

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.

Review of Monitoring and Evaluation Practices in the Georgian Government

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.”

Sectoral Analysis of Regional Markets in Georgia by Using the Components of Smart Specialization

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.

Municipal Social Policy Analysis in the Shida Kartli Region

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.

Analyzing Competitiveness of the Hospital Sector and its Value Chain in the City of Tbilisi – Using Smart Specialisations Methodology Components

Tbilisi is not only the capital city of Georgia, but is also the centre of the country’s economic development. Around 49% of the country’s GDP (GEL 14.3 billion as of 2016) is created in Tbilisi. 

Economic Diplomacy in Georgia: Existing Practice and Future Prospects

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.