Georgia's Prime Minister Giorgi Kvirikashvili gave an exclusive interview to reporter Nino Rodonaia of Radio Liberty/Radio Free Europe in which the Prime Minister shared his views about the Government's major achievements and existing challenges. He also revealed his vision of the country's economic and foreign policy development and how he believed existing confrontations between political actors can change for the better.
Radio Liberty: You became Georgia's Prime Minister in quite a complicated time when less than a year remains before the Parliamentary Elections. It's also a time when global and regional economic and security risks and challenges are increased. What was the main reason you accepted to take on this huge political responsibility?
Giorgi Kvirikashvili: I believe the main reason was that there is a period in a man's life when he should put all his personal interests aside and do his utmost for his country. I think it's time for me to use my potential for Georgia. I believe I have gained enough experience that can help me be productive in service to Georgia. With my knowledge and experience, I will do my best to successfully carry out my duties, which will be the most challenging period of my life.
When it comes to challenges, yes, we face major domestic and foreign challenges. We also have domestic challenges that are provoked by foreign factors. The unfavorable economic situation in the region is also affecting us. We also face security and political challenges at home.
To start with, foreign challenges affect the whole region and trigger security tensions. In this context, we, on one hand, have to consolidate full support from our foreign partners and, on the other, avoid additional risks as best as we can. Challenges have increased more than before, and it is not a very positive time for Europe now, particularly with the current migrant crisis among the top reasons for instability.
The end of last year was very successful for us as the European Commission released its positive report on Georgia's visa liberalization efforts. Now we have to once again consolidate international support to dispel the concerns some European countries have about the migrant crisis. We should also dispel any thoughts associating Georgia's visa liberalization with the migrant crisis and we should gain positive resolutions from the Council and Parliament of Europe regarding visa-free travel to Europe. This is very important from an economic point of view, for the Deep and Comprehensive Free Trade Area (DCFTA), and from a political point of view as Georgians will be more motivated and assured that European integration is the right choice.
RL: Mr. Kvirikashvili, before being promoted as Prime Minister you served as the Minister of Economy and Minister of Foreign Affairs of Georgia. What do you believe were the main mistakes made by the current Government that should be addressed and what would you describe as its top achievements?
GK: Those who make no mistakes do nothing. I believe we have been quite active these past three years. The current Government took office after a very tense election period. The confrontational cloud continued to shadow for some time. Maybe the tense period lingered more that it should have, and this possibly was a mistake but it was a natural process. I believe the main thing we should do now is full depolarization of the public and the consolidation of common, positive goals. This is my, as Prime Minister's, key intention to fully attract those people who have not yet made their political choice, or made one and were disappointed, to come around and support our common goal.
I do not want to blame someone; I take full responsibility along with Georgia's former Prime Ministers for all the developments the country experienced over the last few years. We have gone through a very hard period; among them was the Government's interaction with the population who faced hardships [under the previous Government]. We successfully settled some issues but we could not solve others. This was a very hard time as ongoing, local issues made it difficult to concentrate on our global goals. It's very important now everyone is united around positive targets to successfully accomplish the reforms we have initiated. I am sure we can do this. If I had doubts, I would not have accepted this post and taken this responsibility. We [the Government] have experience, knowledge, energy and the ability to unite the country.
When it comes to our achievements, maybe it has been said many times but it was not an easy job to ensure businesses are no longer under any influence and no businessmen can say they are pressured by the Government. It is not the main achievement but it is one of our big successes.
Another achievement is that we care about our citizens and we show warmth to them through the Universal Healthcare program. It is crucial that our people no longer have to sell their properties to afford treatment. The program is a comfort for people and many admit this.
It is an undoubtedly great achievement that we managed to pave the way to European integration and successfully accomplish our Visa Liberalization Action Plan (VLAP). It was a revolutionary leap for Georgia and we did this while avoiding foreign threats. Also, it's not bad that Georgia currently exports diversified products, including to the Russian market, and this did not happen at the expense of refusing Georgia's Euro-Atlantic aspirations.
It is a great achievement that Georgia and China signed a memorandum over the restoration of the new Silk Road. It is also commendable that we are negotiating a free trade deal with China. Of course, it was a great success that Georgia signed its Association Agreement (AA) and DCFTA with the European Union (EU). I believe our major strategic achievement is that our decisions are constructive and we are heading to Europe in leaps and bounds.
RL: Do you believe that Georgian society is freer today?
GK: Let's say three to four years ago people felt they no longer wanted to live in our reality, but I believe the situation is different now. I believe people are comparably freer now but it's not complete freedom. We are gradually building freedom that will reach its peak through empowering the rule of law. When the public reaches a consensus that we have a reliable court system, when society shows full trust in law enforcements, a sense of freedom will be higher. I believe we have taken big steps in this regard but we are not perfect yet. We still have to take very bold steps to ensure complete freedom of our citizens.
RL: You believe the current confrontational attitude between the Government and the opposition will change through cooperation and dialogue, even when agreements are not reached on all issues. What concrete topics may be agreed with the opposition?
GK: I dream about a Georgia where people will express more love and respect towards one another. If people can have at least respect for one another, everyone will be happy to live in Georgia. I am not idealist, but some idealism is characteristic of every person, so I believe such attitudes are achievable and realistic. The mood should initially be triggered by the Government. We have launched efforts to usher in a relevant culture and make progress in this direction. Unfortunately, not all opposition parties appreciate this reality. Some of them still continue abusing Government members and use confrontational language. However, I believe this will change.
The Government should always be constructive and peacemaking, and always stand above negative emotions as we have more responsibility. I have already met opposition parties and will continue meeting with them. Next week, I am scheduled to meet the parliamentary opposition faction Girchi. They initiated the meeting and I will meet them with pleasure. Despite the fact we, the Government, and opposition might not agree on some issues there are ideas and topics we can cooperate on. The Government should never block ideas purely because they are put forth by opposition members. I should mention when I was the Minister of Economy I had meetings with [opposition member] Zura Japaridze. There were issues we agreed on, there were topics that needed more time than Zura thought, but anyway we respected each other. Dialogue with a person who chooses civilized forms of discussion is always welcomed and such discussions are beneficial, even if we fail to reach an agreement.
In terms of elections, we can find areas where we are able to reach a consensus. Rejecting the majoritarian terms of elections will be hard for this year's elections but we will continue dialogue. Maybe we can agree on some other election-related issues with the opposition. The civil sector also voiced its opinion regarding the rule of law, and I am actively discussing these remarks with the Minister of Justice.
As for other topics advocated by opposition parties I can say we are actively working on decriminalizing economic offenses. The Government has already approved abolition of profit taxes and referred the case to the Parliament. We are also working on budget amendments required for such reforms. These are huge changes. Some opposition members are outwardly surprised as they appealed to us to urgently carry out these changes and we met their demands. What is surprising is that under the nine-year rule of the United National Movement (UNM)-and I intentionally refrain from recalling this period or mentioning particular names-they sentenced 300,000 people while in power and 80 percent of them were for economic offenses. Now they are addressing us to urgently decriminalize economic crimes. Such appeals are ridiculous, but it is still good that they urge us to do this.
RL: Several weeks ago, when you spoke about cases of physical abuse during the Gardabani by-elections, you mentioned that, despite some provocations, the ruling power had special responsibilities to hold fair and peaceful elections. I am not going to ask you what the Government should do to conduct fair and peaceful elections; I am more interested what the Government should not do during the election period.
GK: First of all, I would say that the Government really has huge responsibilities. No matter who stages provocations, ultimately the Government takes political responsibility. However, premeditated provocations should be punished. To this end, and to ensure that our supporters avoid becoming involved in provocations, I appealed to the Minister of Justice to introduce tougher punishments for physical assault. Punishment is necessary to avoid staging or being involved in such violations. These people should know they will be held accountable for their actions.
When it comes to what we should not do during the elections, we shouldn't provoke confrontations and never urge our supporters to offend opponents or take part in controversial or provocative actions. I can state that we never do this. We shouldn't commit such things that might affect the electoral environment; whether it's imposing restrictions on the media, pressuring the court, and the likes. We are motivated to show more progress in holding free and transparent elections than in 2012. We have already shown great progress in holding local self-government and Presidential Elections, but in a parliamentary republic Parliamentary Elections have the greatest political significance, and we are called to make sure that the upcoming election is the best. The international community assessed the 2012 elections as fair but the pre-election period was full of violations; physical, financial and other types of pressure were recorded. In this regard, we will definitely show significant progress.
RL: Mr. Kvirikashvili, you named supporting ‘the entrepreneurial spirit and developing the country's economy as the Government's top priorities. How is this going and what results are you expecting?
GK: The entrepreneurial spirit is imbued in childhood. From the very beginning, we should teach our people that they can have their own businesses and not be dependent on others. This is a very important point and the source of economic development. We have already experienced a mental revolution over the last 25 years but partially we are still a post-Soviet society. [In Soviet times] despite the fact that Georgia was better off in terms of entrepreneurship compared to other Soviet republics, we still face problems stemming from our Soviet heritage.
I am always surprised when students study or graduate from university without ever considering their own businesses. They do not consider becoming an entrepreneur, a person full of initiative who can launch his/her own business and build his/her own economic success. However, teaching alone is not enough. Now we are working to offer financial benefits and tools allowing youths to start their own businesses without being hurt by bank loans and other obligations. Through the Government-backed scheme, young people should be provided with initial capital to finance their innovative ideas and carry out small, medium or even large business projects.
Currently there is no mechanism in Georgia that finances start-ups, where a student or a middle-age person comes up with interesting idea but has no property to ensure a loan and get financial support.
Our aim is not only to encourage business aspirations, we also want to provide concrete outcomes and see businesses implemented. As well as this, Government members should frequently repeat that what is useful for business is useful for all. Maybe for some ultra-leftwing it will be irritating that the Head of Government meets businessmen but I believe we should break such stereotypes. Moreover, we should encourage these types of meetings as businesses create jobs, finance science and Government solutions that are profitable for the private sector and the whole country. The very first words I told large business representatives a couple of days ago was that my next meeting would be with small businesspersons, and the meeting will be held shortly. I will directly say we will not give the opposition reasons to criticize us as we will be the Government that focuses on the interests of the whole population.
RL: Mr. Kvirikashvili, can you imagine that one day there might not be an opposition in Georgia?
GK: No, of course, no. I don't want my statement to be taken as dictatorial. We will just avoid giving reasons for criticism. If we see the criticism is objective, we will take urgent steps to address it. This does not mean there will be no need of criticism in the future. On the contrary, we intended to listen to the civil sector, listen to the opposition and go from there.
RL: How strong are the guarantees that financing new start-ups will not be a useless budgetary expense?
GK: I assure you it will not be a useless thing to do. First of all, removing bureaucratic barriers for businesses and simplifying business activities will ease the bureaucratic burden for many. Through this step we intend to improve the lives of our people. When we speak about certain success, I don't want someone to think we fail to see the current situation in Georgia. I will say frankly that a large part of our people lives in hard conditions. Living in regions and villages is not especially pleasant, not nearly as acceptable as it should be. That's why it is important to attract more investments to provide jobs, develop agriculture and employ rural population, and to support the industrial sector.
Our initiatives are based on our current needs. Our intention to finance and establish tools to support start-up businesses is based on international experience. There are many success stories in this regard. We are very cautious in sharing the successful experience of the Baltic States, Eastern Europe and Israel. We also carefully study the mistakes made by them. The Economic Council has already discussed the initial version of the project and, probably in May, we will launch the scheme to support start-up businesses.
When it comes to other, similar projects we already have some in place including Produce in Georgia and financing of agricultural projects-and a single penny was wasted. All the money we provided for these projects serves certain industries and does not contradict a competitive environment, which is crucial. For instance, Produce in Georgia financially supports companies for two years and then the company must perform independently. We took market demands into account and used the best foreign experiences that lead us to the mechanism of financing start-ups.
RL: Different assessments, some negative, were raised when you initiated a special agency in your Administration to coordinate ministries' activities. Why did you want to launch the agency?
GK: Such an agency used to operate, the Monitoring and Analysis Department, but it was necessary to activate the agency to allow it to step up decision-making processes, especially on economic-related topics. One of the main complaints voiced by businesspersons was that the state's decision-making process was slow. The Prime Minister's Administration exists to ensure better coordination between different state structures. There are decisions that should be made by several ministries and also by local municipalities. The process requires good coordination for solutions to be made timely that support economic growth. That is the intention of the new department.
RL: Regional development is one of the main priorities of the Government but results are not quite tangible yet. What needs to be changed, the whole approach or certain components?
GK: Your question requires a complex response. The main thing we are doing now is adopting the country's main infrastructural plan and stepping up current projects. You know we are carrying out large-scaled projects through the involvement and financing of international monetary institutions. Here we should specify that procedures can be accelerated if we launch several big projects together, create their managing systems, delegate functions within private companies and improve monitoring mechanisms in the companies that are involved in the infrastructural projects. I discussed details of this with the Ministry of Infrastructure and the big companies involved in such projects. I can say various defects were revealed in the procedures we currently use to carry out infrastructural projects. By making several changes, I can honestly say that we will be able to accelerate projects by 35-40 percent. Our aim is the country's main infrastructure, which allows Georgia's transit role to be formed by 2020, and we will definitely do this with the plan we are working on now.
It has already been clearly outlined that we will be able to complete the whole highway from Sarpi to Sadakhlo and the Red Bridge by 2020, as well as a route to Azerbaijan via Kakheti. By 2020, we should also have completed several other roads, including the Mtskheta-Larsi section, the Kutaisi-Mestia road and the Kutaisi-Abastumani road, a short route that will connect Kutaisi with Samtskhe-Javakheti region and the Gomi and Racha connector.
This will be a complex infrastructural project, and we will need support from foreign financial institutions to implement it. Looking ahead, we will need to launch active dialogue with the International Monetary Fund as we increase the amount of annual expenses. These funds will not be spent on bureaucratic issues or social directions, they will fully serve Georgia's goal to have necessary infrastructure that will promote the country's transit potential and tourism capabilities. I don't want to miss [speaking about] the new highway to Anaklia that was constructed. The whole process requires special efforts from central and local authorities and full involvement of financial institutions.
RL: While speaking about the Government's priorities, you highlighted the importance of educational reform. You have just initiated the German model of education. Do you think is it time thorough public discussions are held about this? In the past there were a range of positive initiatives that triggered sharp public reactions due to a lack of information. Do you intend to start discussions about the educational reform and what would be the main thing you want to tell the public?
GK: I absolutely agree with you, communication is the most important thing that should promote the reform and ensure its success. When I first mentioned the education reform, using the German model of education, maybe I did not explain it clearly and this caused various interpretations. I should have explained better. I meant vocational and not higher education based on the German model. The model is very beneficial but it should also be preceded by reforming Georgia's existing higher educational system. Without a reform of higher education, it will be impossible to release the resources that are essential to establish the German system. Some might disagree but each year we finance and produce students who fail to find jobs. Based on the latest data by the Ministry of Education, less than 40 percent of university graduates are employed. This is a very low margin and this means the remaining 60 percent, who were fully or partially financed with state funds, are unemployed. There are also cases when university graduates find jobs that are not linked to their studies.
This situation must change. Annually, we support students who are disappointed after graduation as they fail to get employed, or those who are frequently re-trained by the private sector.
I can provide multiple examples when the private sector had to send its staff abroad to train them in the fields of animal nutrition technology, veterinary and others, so they could learn modern practices and standards. I don't want to offend anyone but, unfortunately, in many cases Georgia fails to produce high-level specialists. In this situation the Government pays money to have five-times more bankers or diplomats than we need. We should create a financing system that will support the professions and specialists Georgia needs. We should also promote vocational education. In Germany more people get educated in vocational centers than in higher educational facilities. The situation in Georgia in this regard is dramatically different.
To encourage vocational training, we should also finance private education institutions and involve the private sector in co-financing the system to effectively spend money. We have to readdress certain resources from higher education to vocational education. Consequently, higher educational institutions will have to make changes to fit the new financing systems. It means changing their profile, inviting foreign specialists and more to gain state financing in the future. Of course we will have dialogue with the public about this.
RL: Georgia is waiting for visa-free travel with the European Union (EU) and continues its efforts to implement the Association Agreement (AA) with the EU. Unlike the visa liberalization obligations, Georgia is still in the process of meeting its AA and Deep and Comprehensive Free Trade Area (DCFTA) requirements. Are you happy with the current pace and quality of meeting requirements?
GK: We are precise in implementing our AA Action Plan. We are facing no drawbacks in this regard. This Action Plan is agreed with Brussels and we are working on a new agenda that we'll be approved after 2016. The existing Action Plan expires this year and we will agree on a new one. Of course it will be an ambitious plan and we will have to carry out ambitious reforms. The Free Trade Area Action Plan is also being implemented exactly as intended. We had a small, insignificant delay in terms of food safety but now we are doing more that stated in the plan, so we are facing no obstacles. The whole process is coordinated by the Prime Minister, but specifically the Free Trade Area deal reforms are being coordinated by the Minister of Economy.
RL: The free trade deal with the EU provides good opportunities for Georgians. However, people are not well informed about the issue despite the fact the Government and the civil sector are undertaking several informative campaigns. The Government plans to launch a new campaign in this direction. How different will the new campaign be in the current situation when anti-European forces are very active, especially in the regions, and do their utmost to create a negative public perception of EU integration?
GK: The difference between the new and previous campaigns is that the new one will promote success stories where local farmers managed to produce quality, European standard products and to export them into the EU market. We have clear examples where Georgians provided brand new products specifically for the EU market. For instance, these are kiwifruit and cranberries, which are more profitable in the EU market than some traditional spices. We will make promos about each success story and show them to those who live in the regions. I agree with you that those who oppose Georgia's European course are active. We are doing our best to ensure all Georgians, all businesspersons and all small entrepreneurs have full information on which path to choose that allows them to produce European standard products and gain a profit. We also intend to invite foreign experts to Georgia to teach our entrepreneurs how they can produce higher quality products.
RL: At the Munich Conference you said Georgia demanded recognition of the efforts it's made towards Euro-Atlantic integration. What is your major argument when you speak about the recognition and what happens if Georgia does not get this?
GK: You have already mentioned the anti-European forces in Georgia. They are a threat. Georgia has done absolutely everything to successfully implement its Visa Liberalization Action Plan (VLAP) with the EU. We have a positive report from the European Commission and now our hopes are very high. Any failure in this regard will encourage the anti-EU forces and that is why we ask our European friends, our partners, if there is any skepticism about granting visa-free travel to Georgia to be fully dismissed as we have met all technical preconditions, provided all necessary systems and our border control is one of the best.
Georgia has all means to be a responsible partner for Europe. We should inform all our colleagues in Europe to dispel any possible existing links between Georgia's visa-free travel and the migrant crisis. We should also show that our law enforcement bodies are ready for cooperation and partnership. Political risks are quite high as Georgia's expectations are high and my appeal in Munich served the purpose of encouraging our European colleagues to fully appreciate our efforts.
We aren't going into Europe, we are Europe. With our culture, history and traditions Georgia has always been a European representative in the region. We are not going anywhere, we are in Europe. We should enforce this attitude and conception in our partners that we are an integral part of Europe.
RL: How satisfied are you with the current Georgia-United States (US) relations? There were complaints that Georgia has "vanished from US radars". What can you tell us about it?
GK: I can say with all assuredness that Georgia is certainly on US radars. We enjoy exemplary relationships and the highest-level of cooperation. The US is Georgia's strategic partner and a continuous supporter of our country's sovereignty and territorial integrity. The US has always encouraged international support for Georgia and still consolidates international backing. We have witnessed several very important situations which prove that Georgia is high on the US' agenda. One was a high-level commission meeting of strategic cooperation, the Omnibus Commission meeting, which discusses major directions of our partnership. The first high-level trade and investment dialogue was also held where we planned concrete steps forward.
The US provides huge support to Georgia in the military and defense sector. The fact Georgia is not mentioned in all US statements does not mean we have vanished from US radars. The reason allegedly was that some other states faced more severe threats than Georgia.
I want to tell our opponents, who frequently discuss Georgia's foreign relations and to everybody else, that Georgia is facing a very hard task. On one hand, we should permanently raise the issue of Georgia's territorial integrity and occupation with our partners and, on the other, ensure enough stability in the country to attract investments and develop our economy. Hysteria cannot help our territorial problems. I reiterate that Georgia's occupation should be on the agenda of our foreign partners as they are always alert to help us, but it is not good to permanently remind our potential investors that a big tragedy is happening in Georgia and it is dangerous to invest here.
Currently we have the stability that is crucial for Georgia's economic development. One of the major achievements of our Government is that we managed to boost our pro-Western vector and take bold and big steps towards our vitally important European course. We also have a very positive dynamic with the North Atlantic Treaty Organization (NATO) and we are preparing new elements of the Substantial Package of support. With this we managed to create such stability in the country that was necessary for economic growth.
RL: Georgia's Government calls its current policy with Russia "pragmatic". What does pragmatism bring for Georgia with the country to which Georgia's western aspirations are unacceptable, which occupies Georgia's territories, carries our creeping occupation and violates fundamental human rights?
GK: First of all we are trying to bring messages to Russian politicians that Georgia's western course is not against Russia and does not provoke confrontations. We have uprooted rhetoric of animosity; hate speech and attitudes yield no positive results. However, fundamental problems with Russia remain. The major problem is occupation and we see no positive dynamic in this context. We have no progress with Russia respecting our sovereign solutions to western integration.
Nonetheless, we should do our utmost to avoid risks and further complications and, with our strategic partners, within the Geneva Format, should try to achieve a positive relationship. Even the fact that currently we have certain economic relations with Russia and a positive trend in tourism gives a precondition to avoid risks. However, I reiterate that in politics we have no positive outcomes.
We will not make any deals with Russia at the expense of our strategic choice; that is for certain. Our people made a choice and each Government should respect this choice. We should be consistent in our strategic solutions and, at the same time, try not to send confrontational messages to Russia. We should use all opportunities for dialogue with Russia to prevent risks and enable our country to develop.
RL: What would be the most reasonable policy with Iran at this new stage of relations? Can you see any threats together with trade-economic potential with the country?
GK: Iran is a powerful player in the region. We enjoy centuries-long cultural and economic relations. The deal between Iran and the West is a great achievement through which sanctions on Iran have been lifted. Of course, we should try to intensify our economic ties with Iran, attract more Iranian tourists and investors in Georgia. There are a range of directions that can be pursued for bilateral cooperation, and we are working in this regard. In the near future, I will visit Iran to discuss prospects of deepening our partnership. When it comes to threats, no one is absolutely secured from them, but currently Iran adheres to its deal with the international forces and we welcome this. We should use every available opportunity to cooperate.