In our last week’s article, we examined Georgia’s economic growth in the 12 months before the 2012 parliamentary elections. In particular, we reviewed the popular argument that much of this economic growth was driven by the “political business cycle” effect of public (over)spending prior to the elections.
The main goal of this project was to develop a neutral platform for regular discussion of Georgian government policies, donor-financed programs to promote inclusive growth A total of seven debates and thee project presentations were hosted at ISET as part of this project on topics ranging from farmer cooperation to family farming, to tourism, to vocational training systems, to SME development, to access to energy.
The Georgian economy faces many challenges, not least of which is access to finance and the extremely high cost of financing private enterprises. With the cost of borrowing (real interest rate) reaching 17.3% on average in April 2013, businesses find it very difficult to function, let alone invest in innovative technologies, long-term growth, and development.
There is no arguing that during the ten years since the Rose Revolution, the Georgian economy registered an impressive growth performance, averaging 6.6% per annum.
On March 4, 2013, Andrew Burns, Manager of Global Macroeconomics in the Development Prospects Group of the World Bank, presented a report – “Global Economic Prospects – Assuring Growth Over Medium Term”, for ISETers.