This project aims to support the development of business-oriented small farmer groups (e.g., agricultural cooperatives) with the goals of increasing agricultural productivity and reducing rural poverty in Georgia.

On the first of January, Armenia will adopt an entirely new pension system. This radical reform addresses two problems: widespread poverty among the elderly and a lack of capital in the economy. The very same problems also exist in Georgia, where the standard governmental pension currently is 150 lari, and where the economy is suffering from high capital costs due to notoriously low saving rates.

Do development projects reach their stated objectives, such as reducing poverty, improving skills, creating jobs, etc.? This turns out to be a complicated question about project impact that a simple before-and-after measurement would not help answer. Why?

The ability of families to meet their most basic needs is an important measure for the development of a country. Poverty touches on questions of human dignity and fairness in society, but beyond that, poverty causes problems that may impair long-run economic prospects, like crime, social unrest, and underinvestment in human capital.

Despite spectacular growth performance during the past several years (averaging more than 6% since 2005), Georgia remains a poor country. In 2011, Georgia’s GDP per capita reached USD 3,215, just below the average for small island states in the Pacific and just above Guatemala.