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Thursday, 26 April 2018


Gilauri to heal the country

2011-11-08 13:46

Gilauri to heal the country. 24167.jpeg

Surprisingly, now collapsing economy of Georgia is one of the sanest in the world. At least, this is what Georgian PM Nica Gilauri sincerely believes. By way of example, he refers to external debt to GDP ratio, budget deficit, economic growth and the state of banking sector. It was repeatedly acknowledged by politologists that Gilauri's statements should be viewed solely from the point of view of propaganda. Yet, this time the optimistic prime minister exaggerates too much.


The government of Georgia keeps advertising a 10-clause plan of the country's strategic development before 2015. The document deals with decline in unemployment rate, attraction of investments, wine exports and war on corruption. However, the plan is not detailed. It is all milk and water and nice words. Macroeconomic stability, improvement in investment environment, decrease in current deficit indexes, logistic centers in regions, development of infrastructure, energy, agriculture, a better social policy, affordable health care, development of education system and implementation of new technologies, urban development of regions - this is it, basically. Not a word about ways to achieve these goals.

Nonetheless, PM Nika Gilauri is full of optimism advertising his strategy reiterating economic progress of his country. Recently he said that Georgian economy is one of the sanest in the world! PM made this conclusion on the basis of external debt to GDP ratio, budget deficit index, economic growth and condition of the banking sector. In addition, Gilauri promised that 75 thousand employments would be created in the country over the next three years.

It is not quite clear where the zealous minister finds dizzying progress in economy. His ways of employing unemployed Georgians is not clear either. The country's factories aren't working. Besides, they will soon be sold out as part of the Eurobond program.

At this point we arrive at the crucial problem in Georgia's foreign economy - external debt. Presently, it is over USD 4 bn. The country's authorities have a simple plan to overcome difficulties by privatizing state-owned enterprises. Yet, this only postpones resolution of the problem, so it's simply naïve to acknowledge progress in economic policy of the government.

Gilauri also speaks about budget deficit. According to the program, state expenditure shall amount to US 4.6 bn. The country's main financial document arouses questions too. The amount is not big but certain changes are possible with the right choice of priorities and a certain amount of economic wit. But the point is that main areas of expenditure are security structures in conditions of total unemployment, continuous price growth and dying agriculture. What progress are you talking about, Mr. Gilauri?

For the reasons that only prime minister understands, it seems, he includes a two-fold increase in wine sales in his list. Also he mentions entry on new wine markets - China and Canada completely ignoring the opinion of specialists that the Russian market can't be replaced. "Even if we are given access to Russian market now, unfortunately, this is an unreliable market, as examples of Belarus and Moldova show", - Gilauri says.

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