Today the Prime Minister of Georgia Zurab Noghaideli met the representative of the World Bank Financial Corporation Simeon Djankov and WB Country Manager for Georgia Roy Southworth. At the meeting the Prime Minister summed up the results of the research held by the Financial Corporation: "Doing Business in 2007". Based on the research Georgia is making an extraordinary jump in the world rating - it is put on the first place among the best ten countries-reformers worldwide. Among this best ten are also Romania, Mexico, China and France.
In addition to the rates of reforms this organization publishes the list of countries with the easiest doing business for world businessmen. This year in this list Georgia moved forward by 75 steps and from the 112th place in the last year now occupies the 37th year. If two years ago Georgia was on the 137th place, after two years it shifted forward by 100 steps.
At the meeting the Prime Minister spoke on those reforms which have served the high appraisal. Based on the results of the past year research the changes in the Tax Code were very important for this progress. Zurab Noghaideli noted that the implemented reform stipulated simplification of real estate registration procedures. "Today registration of any kind of real estate is possible in 6 days, at 0.5% of the property cost. This year Georgia succeeded from the aspect of business registration. The business registration was moved from the court to the tax offices. This has enabled us to join the business and payer's registration procedures. The term for registration of a limited liability company decreased to 3 days and the minimal amount of the charter capital from 2000 GEL to 200 GEL. Through these changes a business can be commence in a rather short term, small expenses and minimal risk of corruption that is very important for small and medium businesses. The result is on our hands: according to the data for 8 months of the year 2006 the number of newly registered enterprises holds 45% share of all operating enterprises."
The Prime Minister stated that the same principles was applied during the reforms in the licensing and permission sphere started last year. Noteworthy is that the number of businesses based on licenses and permits decreased by 85%; the time necessary for issue of the license decreased up to 30 days and the time for issue of a permit - up to 20 days; the issue of license for natural resources became more transparent and is performed through an open auction procedure and based on the "one-stop principle", which Zurab Noghaideli explains so: "If the response is not provided by a state structure, this means that the silence gives consent. Our goal is to minimize the average level of the public bureaucracy and business cooperation. Consequently, we could eradicate corruption and basics for artifical creation of barriers for business. Past year Georgia also carried out the reform of the standardization and technical regulation system. As a result of the reform was probated a new law On Safety and Quality of Food Products; was adopted a new Tax Code which last year was acknowledged by the International Financial Corporation as the most successful among three reforms. The new Labor Code provides the priority to the contract system. All conditions related to the labor relations shall be expressed in details in a contract".
The Prime Minister also spoke about the availability of credit resources and reforms in the financial sector: "We have implemented similar reform in the insurance sphere earlier whereupon the largest insurance company AIG entered the Georgian insurance market. We continue simplification of procedures for entering of foreign top banks into the Georgian markets. Accordingly, credits issued to the economy increased by 85% within the year 2006."
Zurab Noghaideli also spoke about the those reforms which are planned, implemented and reflected in the next year report. This is the custom duties system reform, the custom code reform. In this part today Georgia hold only the 86th place. Noteworthy also is the legal reform, including a new bankruptcy law which was adopted before the year-end. "We shall specify the priority plans for a next year. Last year, within the presentation, we stated that our goal is to put Georgia among the reformers. This goal is attained - Georgia is the reformer N1. Our goal was not to be among the reformers, but to be among those top 50 countries where doing business is easy. This goal is attained too. We are on the 37th place. We have created all conditions for attraction of investments in Georgia that, in turn, will cerate the conditions for development and employment of economy in Georgia."
Simeon Djankov spoke about the reforms implemented in our country lately, which based the leading positions of Georgia in the results of the research held by the WB International Financial Corporation. The guest noted that in 2006 Georgia is the reformer N 1 in the world, which for the second time already have implemented the reform in 6 spheres out of 10 studied one. "I believe that after 10 years you will invite me to Georgia not for presentation of Georgia as the reformer N 1 worldwide but for presentation of Georgia as the country with the economy N1."
Press Center of the Chancellery of the Government of Georgia