Monday,
01
February,
2016
Currently, the Georgian agricultural sector is characterized by relatively low productivity (by international standards) and its contribution to the GDP of the country is much lower than what it could be, considering that 45%1 of the Georgian labor force is currently employed in agriculture. Increasing the productivity and competitiveness of the Georgian agricultural sector could, therefore, generate substantial economic and social benefits.
There are many bottlenecks that contribute to this current state of affairs:
• Low quality and quantity of irrigation and drainage services;
• Inefficient use of water by farmers;
• Lack of a well-functioning land market;
• High cost of capital and limited access to the financial market;
• High uncertainty;
• Farmers’ low propensity for risk.
While all of these factors affect the productivity and competitiveness of the Georgian agricultural sector, it is clear that having well-functioning irrigation and drainage systems is a crucial prerequisite for the development of the sector. Currently, Georgian amelioration services are falling short of what would be optimal for the country, in both quantitative and qualitative terms.
Georgian Amelioration (GA) is a government-owned company that manages most of the country’s irrigation/drainage infrastructure. It currently serves about 114 thousand hectares (88.4 irrigation and 25.5 drainage), compared to the 500 thousand hectares (386 irrigation and 114 drainage) that were served under the Soviet Union. While the area served under the Soviet Union (in 1988) was undoubtedly excessive (many areas were served at extremely high costs, exceeding the benefits provided), the area currently served can still be substantially increased, generating net benefits for society as a whole. Unfortunately, as emerged from our interactions with the main stakeholders, the quality of services provided by GA is not yet adequate. Most farmers mentioned the lack of reliable service provision by GA as the main problem – a fact that can cause significant losses, especially in the event of droughts.
22
July
2024
For the countries in the South Caucasus, health hidden costs amount to 87%, 88%, and 92% of the total quantified hidden costs of agri-food systems. In terms of the share in GDP, they subsequently comprise 18%, 16%, and 22%, respectively.
29
May
2023
On 27 June 2014, Georgia and the EU signed the Association Agreement (AA), including the Deep and Comprehensive Free Trade Agreement (DCFTA), which fully entered into force on 1 July 2016. The goal of the DCFTA is to provide a framework for new trade opportunities, enhance competitiveness in the business sector, and support closer economic integration between Georgia and the EU based on reforms in trade-related fields.
28
September
2021
Natural resources, such as land, water, air, minerals, forests, and fisheries, all provide fundamental life support, in the form of both public-good and consumptive services, which also greatly affect the quality of human life. As such, a proper Natural Resource Management (NRM) allows for the sustainable utilization of resources and moreover ensures that the services provided continue to be accessible over time.
24
September
2021
The Water Policy Outlook study aimed to compare and contrast existing policy frameworks against the long-term strategic plan and vision for the water sector by respective governments. The outlooks aimed to map the future policy challenges and policy reform opportunities required to achieve these long-term strategic objectives.
