Tbilisi, Georgia, June 30, 2016—A
survey from IFC, a member of the World Bank Group, which focuses
exclusively on the private sector in emerging markets, found there is virtually
no perception of corruption in Georgia, according to business representatives,
and the vast majority of firms are satisfied with the business environment.
Conducted by the IFC Georgia Investment
Climate Project based on 2015 data, the Georgia Business Perception Survey
examined more than 800 small, medium, and large local and international
businesses in Georgia to help the government identify next steps to improve
the investment climate and boost growth.
Only 0.03 percent of survey respondents
said their business had encountered government corruption in the past year,
while 0.75 percent said they heard about corrupt practices experienced
by others. However, the survey also found that the revenues of most businesses
declined last year, with the key reasons perceived to be the currency devaluation
and reduced purchasing power.
“The survey found that investor expectations
have mostly been met and, in spite of the revenue decline last year, the
outlook is quite optimistic. Many businesses plan to increase production
and employment,” said Jan van Bilsen, IFC Regional Manager for the South
Caucasus. “The survey also pinpointed some areas where more needs to be
done. We are committed to continue working with the government to implement
reforms that can lead to further improvements in the investment climate.”
The survey also revealed that less than
half of Georgia’s exporters are aware of the benefits of the Deep and
Comprehensive Free Trade Areas (DCFTA) with European Union, suggesting
the need for an awareness campaign. According to respondents, the government
should also continue to develop infrastructure and create a more competitive
environment to help boost business growth.
For more about the survey, please visit:
The survey is part of the work of the
World Bank Group’s Trade and Competitiveness Global Practice, a joint
practice of the World Bank and IFC, which helps countries accelerate private
sector growth by creating simple, efficient, business-friendly regulations
while ensuring public interests are protected.
As part of these efforts, the Georgia
Investment Climate Project helps the Georgian government improve the investment
climate by increasing the efficiency of regulations in three key areas:
tax, trade logistics, and investment policy. It is implemented in partnership
with the Austrian Federal Ministry of Finance and BP and its Oil and Gas
Georgia became an IFC member in 1995.
Since then, IFC has provided about $1.2 billion in long-term financing,
of which $373 million was mobilized from partners, in 55 projects in financial
services, agribusiness, manufacturing, and infrastructure. In addition,
IFC has supported around $315 million in trade through its trade
finance program, and implemented a number of advisory projects focused
on developing the private sector.
In fiscal year 2015, IFC invested almost
$18 billion in developing countries worldwide.
IFC, a member of the World Bank Group,
is the largest global development institution focused on the private sector
in emerging markets. Working with more than 2,000 businesses worldwide,
we use our capital, expertise, and influence, to create opportunity where
it’s needed most. In FY15, our long-term investments in developing countries
rose to nearly $18 billion, helping the private sector play an essential
role in the global effort to end extreme poverty and boost shared prosperity.
For more information, visit www.ifc.org.
For more on the World Bank Group’s
Trade & Competitiveness Global Practice, visit:
Follow us on Twitter: @WorldBankPSD
For more information about the project’s
donor partners, please visit:
Austrian Federal Ministry of Finance:
BP and its Oil and Gas Co-venturers: