Why Georgia has succeeded

DISKUSI PUBLIK “Sukses Reformasi Libertarian di Georgia?”

Why Georgia has succeeded Larisa Burakova

Senin 27 Februari, 2012 Pukul 19.00 – 21.00 WIB Wisma Proklamasi Jl. Proklamasi No. 41Jakarta Pusat

Why Georgia has succeeded Larisa Burakova February 27, 2012

Why Georgia

Why Georgia #1 Reformer for the last 5 years

-2.0 Qatar FYR Macedonia Uruguay Vanuatu Bangladesh Costa Rica Mauritius Romania Guatemala Ghana Gambia Czech Republic Paraguay Azerbaijan Bolivia Ireland Latvia Slovenia Cameroon Croatia Algeria Lithuania Canada Ethiopia Kenya Saudi Arabia Thailand Jordan C么te d麓Ivoire Libya Ukraine Zimbabwe Botswana Taiwan Mozambique Austria Hungary Singapore El Salvador Nicaragua France Sweden Denmark New Zealand Egypt Chile Myanmar Peru Bulgaria Mali Senegal Venezuela Belgium Jamaica Mexico Russia Sudan Greece Kuwait Uzbekistan Cuba Israel Oman United Kingdom Italy

Among leaders in combating corruption Transparency International Corruption Perceptions Index, change 2003-2010

2.5

2.0 Georgia

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Ease of Doing Business

GDP per capita, % of the World 70

Indonesia

60

50

Georgia

40

30

20

10

0 2003

2004

2005

2006

2007

2008

2009

2010

FDI to Georgia, mln $ 1400

1278 1164

1200 1000 795

800

603

600

637

464 368

400

273

220 200 0

92

81

105

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

FDI, % of the GDP 18 16

Georgia

14 12 10 8 6

Indonesia

4 2 0 2004

2005

2006

2007

2008

2009

2010

Small government de-bureaucratization

privatization

liberalization

Ministry of Internal Affairs

“Everything is sold, except honor.”

Privatization checklist sea ports main generating and distribution electricity assets gas distribution

done done done

agriculture land

done

main airports

ongoing

railway

ongoing

natural resources and forests through tradable rights

ongoing

Quantity and quality 6000

500.0 450.0

$

5000

400.0 350.0

4000 300.0 3000

#

250.0 200.0

2000 150.0 100.0 1000 50.0 0

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

0.0

Liberalization Ease of Doing Business Rank

Starting a Business

Dealing with Registering Licenses Property

Getting Credit

Protecting Investors Paying Taxes

Trading Across Borders

Enforcing Contracts

0

2012

20

40

60

80

100

120

140

2007 2011 2009

Closing a Business

Liberalization

Liberalization business and tax registration merged into one simple process just one day no paid-in-capital requirements

Liberalization number of licenses reduced by 85% ‘one-stop-shop’ licensing principle ‘silence-is-consent’ rule

Liberalization Simple contractual relations between employers and employees No restrictions of the duration of term contracts and the number of overtime hours

Liberalization

Reduced number of steps and days for registering property

Liberalization Simplification Decrease in number and rates Better enforcement

Liberalization No quotas on import/export Custom tariff = 0.3% of GDP Simplified export/ import procedures

Other reforms • Healthcare reform • Financial reform • Educational reform • Rule of law reform • ...

“We appreciate the model of democracy and transparency that they’ve been setting not just for their own country but also for the region as a whole.”

Georgia did; others can follow.

Thank you! lburakova@gmail.com