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Tbilisi scares foreign money away2011-09-16 16:58
Georgia is sinking into an investment crisis. European Democrats party, viewed as a governmental project, has come up with a curious statement that sounds more like declarations of the opposition. Representatives of the movement complain about the lack of democratic institutions in the country which hampers the inflow of capital to Georgia. Remarkably, the capital withdrawal list is topped by the United States of America (promising to pay for presidential election in Sakartvelo. Who will pay for Saakashvili's living?
According to Gruzstat data, the volume of direct foreign investments to Georgia in 2nd quarter of 2011 was USD 203 mln shrinking by USD 5 mln as compared with the same period last year. "This is an investment collapse. As we see, the authorities not only find it difficult to forecast an investment plan, but they also fail to give reasons of Georgia's low attractiveness for foreign investors. The government expects to have USD 1 bn of direct investments next year. The similar forecasts were made last year, though instead of USD 1.2 bn we received only USD 553 mln", - Georgi Hokerashvili from European Democrats association said.
This is old news. We know the price of statements made by Saakashvili and his government. No wonder that violation of property rights, frequent and fast changes in the Tax Code, no independent judiciary, incorrect monetary and credit policies as well as an unhealthy competitive environment scare away foreigners lured by Mikheil Saakashvili's speeches about easiness to start an enterprise in Georgia. Yet, it's two different things to start a business and make it prosperous. This difference is not explained to investors. Neither are they familiarized with the so-called "plea bargain" that allows officials clean out pockets of local and foreign entrepreneurs.
It's surprising that the investment crisis is discussed only now. Large-scale privatization of state-owned energy, industrial and transport facilities launched in 2004 has facilitated the inflow of foreign capital over the recent time. But one can't enter paradise on somebody else's back. To get dividends, the Georgian government had to butter up dear guests in a 100% Caucasian style not only at a start-up stage. Then why is it strange that 18 donor countries are turning their back on Georgia?