Georgian authority most frequently appeals to the results of “Investing across the Borders 2011” of the World Bank research. Georgia has ranked 12th in this research this year. The authoritative newspaper “The Economist“ suggested official Tbilisi taking the results of international competitiveness rating into account. ”The Economist“ has noted that the global competitiveness rating made by the world economic forum represents a wider rate of economic criteria different from “Investing across the Borders 2011” of the World Bank research. Georgian authority has the reason of dislike the research of the world economic research – this year Georgia has made the three steps back in global competitiveness rating and ranked 93rd among 139 countries.
The World Bank research “Investing across the Borders 2011” consists of 9 criteria. Georgia ranks 9th among 183 countries under the criteria including procedures, expenses and minimal basic capital that are needed for starting new business. It ranks seventh as per the procedures, time period, expenses and checking for receiving construction license, , but it ranks second as per the procedures, time period and expenses related with delivery of commercial real estate.
Georgia ranks 20th in the category of investor protection, but it ranks 15th in the criterion of credit taking. Georgia’s condition ranks 61st in tax parameter ( amount of tax, repayment period). As for international trade, Georgia ranks 35th according to documentation, time period and expenses that are necessary for export and import but it ranks 41st as per time period, procedures and expenses necessary for settling commercial disputes. Georgia ranks the lowest among 9 criteria of “Investing across the Borders 2011” in the category of “business failure” and it ranked 105th among 183 countries.
Georgia also made progress in ratings showing economic independence index: according to “Freizer” rating, it shifted from 42nd to 26th rank. According to “heritage fund” evidence, Georgia improved such parameters as: decrease of state expenses share in the country, increase of international trade, making business system simplified, decrease of bureaucratic expenses and procedures.
Under the research of “Freizer Institute” ( the research is based on 2008 statistical evidence), Georgia was able to improve three parameters of economic independence rating among 5 ones, but the two diminished slightly. Georgia’s ratings have improved in the government scale parameter. It means that budget expenses went down compared with previous calculation period. Also progress is noteworthy from the viewpoint of hard currency availability and the parameter of abolition of preventable barriers for foreign trade too. Deterioration is apparent in the property right line of regulations and legislative system. But the reform in Georgian legislative system is assessed by the lowest rank.
Georgian position in the results of 2010 “corruption perception index” has deteriorated by two steps. In the “International Transparency” research, Georgia ranked 68th among 178 countries by 3.8 point. According to the organization, urgent necessity of a reform in legislative system, defend of right of private property, lack of transparency of state expenses (contingency funds of President, Tbilisi city Hall and government), elite corruption in the high echelons, misunderstanding in the issues of media entities and financing. Also, the low level involvement of civil society into forming public policy – this is a list of those questions that still remain problematic in Georgia”.
“International competitiveness rating” made by the world economic forum, is the research that is not widely talked about by Georgian authority. Under 2010 research, Georgia ranks 93rd among 139 countries. By the way, Azerbaijan ranks 57th in the rating made by the world economic forum, Russia – 63rd, Iran- 69th, but the Ukraine ranks 89th. In the “International competitiveness rating”, Armenia is inferior by 5 steps than Georgia, it ranks 98th.
In the “International competitiveness rating” our country ranks 120th according to property defense criterion, but it ranks 104th by court independence rating. According to national accumulation index, Georgia holds the 110th position, but under anti monopolistic regulations it holds the 135th rank. According to rating of research institutes the condition of our country was assessed as the 120th rank. Under micro economical environment, Georgia was ranked the 130th.
In this research, Georgia ranked the 90th in high education level. The level of financial market development made up 108th rank. In the technological readiness criterion Georgia ranks 98th, but in innovation and experience factors it holds 121st place. The criterion of defense of intellectual property was assessed by 97th rank. Georgia’s situation from the viewpoint of defense of small stockholders interests was assessed by 122nd rate. We ranked 65th under road quality, but 86th – under air transport infrastructure quality. In the quality of high education, Georgia ranks 105th. According to educational system quality -119th. In brain drain criterion, Georgia holds 104th rank.
According to global competitiveness rating of the world economic forum, the following most problematic spheres of conducting business in Georgia have been named: financing unavailability, political instability, inadequate education of employees, tax regulation, irrelevant infrastructure, high taxes, inflation, governmental bureaucracy, labour regulation and corruption.