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Public Service Delivery of the Future –

                  Combating Corruption, Streamlining Performance



Georgias Best Practices in Defeating Corruption &
Results of 2011 Crime and Security Survey




                                          Otar Kakhidze
                                          September 23, 2011
                                          Batumi, Georgia
"Crime and Security Survey -
             Georgia, 2011“

             Quantitative Research Report

                                        The project was initiated by the Ministry of Justice and is
                                                                   funded by the European Union




20/04/2011   Georgian Opinion Research Business International
Victimisation level 1992 – 2011 years




                                        Last                       Last                     Last                      Last
                                                   Last year                 Last year                 Last year                  Last year
                                        5 yrs.                     5 yrs.                   5 yrs.                    5 yrs.
                                               1992                      1996                    2010                       2011
Car theft                               15.4         6.3          16.8          3.3          1.1    0.02              0.4       0.0
Theft from and out of car               31.1         10.8         34.7          10.7        7.27     0.8              3.6       0.3
Car vandalism                           14.5         4.1          5.1           1.7          1.7     0.3              0.9       0.2
Burglary                                9.9          2.5          13.8          3.6          2.7     0.5              2.2       0.5
Attempted burglary                      8.2          2.1          9.7            3           1.2     0.1              0.7       0.1
Robbery/armed robbery                   5.8          1.8          7.2           2.5          0.6     0.2              0.4       0.2
Theft of other personal property        13.4         3.5          19.1          6.5          2.1     0.8              1.0       0.2
Assault/threat *                        5.3          0.6          7.9           3.2          1.1    0.18              1.1       0.5




                                       * In the survey of 2010 -2011 in Georgia the question for assaults and threats are asked
                                       separately. The figures in the table are summarised.




                                                                                                                                        3
Victimisation over 5 years prevalence, Comparison with
                                                other countries




                                                                                                                                                                                                                 Theft of other personal


                                                                                                                                                                                                                                           Sexual offences against


                                                                                                                                                                                                                                                                     Assaults and threat of
                                                                                                   Theft from and out of
                                                               Overall victimisation




                                                                                                                                                                            Attempted burglary
                                                                                                                            Motorcycle theft




                                                                                                                                                                                                 Robbery/armed
                                  Survey mode




                                                                  for 10 crimes




                                                                                                                                                Bicycle theft
                                                 Survey year




                                                                                                                                                                                                                        property
                                                                                       Car theft




                                                                                                                                                                 Burglary




                                                                                                                                                                                                                                                                           violence
                                                                                                                                                                                                    robbery




                                                                                                                                                                                                                                                   women
                                                                                                            car
            Canada               Cati           2010               41                  5,1          16,9                   5,5                 15               5,6         5,7                    2,7            11,3                        6,1                       8,9

            Denmark              Cati           2010            52,7                   4,8             13                  11,4                26,1             10,6        5,3                    2,8            13,2                        2,7                       9,9

            Germany              Cati           2010            42,2                   1,5          12,6                   3,3                 16,5             5,4         5,6                    2,8                14                      5,1                     11,3

            Georgia              F2F            2010            11,1                   1,1            7,3                  2,8                 1,5              2,7         1,2                    0,6              2,1                       0,2                       0,9

            Georgia              F2F            2011                  7                0,4            3,6                  4,5                 0,5              2,2         0,7                    0,4                  1                     0,1                       1,1

            Netherlands          Cati           2010            52,2                   1,8          15,6                   6,4                 23,7             4,8         7,2                      4            12,6                        3,7                        13

            Sweden               Cati           2010            44,9                   3,5          10,4                   4,7                 20,2             3,7         3,3                    2,4            12,1                        4,8                     11,8

            UK                   Cati           2010            41,6                   3,7          14,5                   12,7                12,6             5,7         7,1                    3,4            11,6                        5,6                     14,3




Note: in sexual offences are calculated only the incidents against females.
                                                                                                                                                                                                                                                                                      4
Average victimisation level in Tbilisi and 28 other capital
cities




                                                              5
Average victimisation level in Georgia in 1993-2011 yy.




The comparison is done only with 8 crimes researched in 1992-2011.




                                                                                      6
Question: Where you trying to avoid any person, or street, or area in
terms that it is not safe there?




                                                                        7
The assessment of the authority of “thieves in law”
                                  over the last five years

                                                            %, 2010         %, 2011
Significantly decreased                                       70               70
A bit decreased                                               10               10
Criminal don’t have any authority any                          6               7

                                        Decreased (total)     86              87
Remained the same                                              3               2
A bit increased                                                1               1
Significantly increased                                        1               0
                                        Increased (total)     5                3




                                                                                        8
The assessment of police performance (good and fairly good)


Country                          %
Finland                         89
USA                             88
Canada                          86
Georgia 2011                    87
Georgia 2010                    85
New Zealand                     84
Australia                       82
Denmark                         82
Austria                         81
Scotland                        79
Ireland                         78
England and Wales               75
Great Britain                   75
Germany                         74
Norway                          73
Belgium                         71
Hungary                         70
Holland                         70
Northern Ireland                70
Switzerland                     69
Portugal                        67
Italy                           65
Sweden                          65
Japan                           64
Luxemburg                       62
France                          60
Spain                           58
Greece                          57
Estonia                         47
Mexico                          44
Poland                          41
Average                         70
                                                                        9
Attitude towards prosecutor’s office

                          Satisfaction with service of the prosecutor’s office



                                        2010                   2011




                          29%
                                                                            27%
                                                                                  25%

                                      19%
 18%
                    17%
        15%                                              14%     14%
                                               12%


                                                                                               5%    5%



  სრულიად        უფრო კმაყოფილი არც Neither
                                       კმაყოფილი,          უფრო             სრულიად        არ ვიცი/არ მახოვს
                                                          A bit                                DK/cannot
Very satisfied
 კმაყოფილი        Fairly satisfied არც უკმაყოფილო
                                      satisfied or     უკმაყოფილო        Very dissatisfied
                                                                          უკმაყოფილო
                                                       dissatisfied                           remember
                                      dissatisfied




                                                                                                       10
Question: How much is child protected from violence within
the school?




                                                             11
International Rankings
        11th place                                    5th place
    in Doing Business                        in Ease of Starting Business
       World Bank, 2010                              World Bank, 2010




                     #1 REFORMER FOR
                          7th place
                            in Construction Permit
                          THE LAST2010 YEARS
                              World Bank, 5
                              WORLD BANK, 2010


          2nd place                              Recommendations of
   in Property Registration                       GRECO & OECD
                                                    Implemented
        World Bank, 2010



                                                                        12
Global Corruption Barometer, 2010 – TI

                                           77% of
     Only3%     of
                                             Citizens
                                         Perceive Gov’s
      Users Paid                         Actions Toward
        Bribe                              the Fighting
                                          Corruption as
                                           EFFECTIVE

                       78% of
                      Citizens Think
                     that Corruption
                           Level
                       DECREASED
                     Significantly for
                     the last 3 Years
Life in Transition Survey, EBRD 2010

  2nd Place in Customer
    Service Efficiency


               92% of Citizens are         2010



             OF CITIZENS the
              Satisfied withAGREE THAT2009
        78% Procedures of Official     CORRUPTION HAS
                                      2008
          FALLEN IN THE LAST 4 YEARS, WHICH IS THE
             Documents Issuance       2006
          HIGHEST IN ALL THE SURVEYED COUNTRIES
                                 Life in Transition Survey, EBRD 2010
                          Corruption Perception
                          among Citizens is the
                              Lowest – 4%


                                             Only 2% of Citizens
                                             Experienced Bribery
HOW DID GEORGIA
  ACHIEVE IT?
Anti Corruption
                          Strategy




Service Delivery          2003
                                                 Prosecution of
    Process
 E-Governance                                    Corrupt Cases

                          2011

                                         Amending
           HR Policy
                                         Legislation




                                                              16
A Failed State
               Integral part of the daily life of Georgians;
               Rule in all pubic institutions and norm in the mentality of citizens
CORRUPTION

        Corrupt Police
        Corrupt Tax and
        Customs
        Corrupt Education

        Corrupt Judiciary

        Corrupt Civil Service

        Corrupt Society
                                                                         17
A Failed State
                        Low Salaries
             Position                  Salary
    Judge
    Prosecutor                     15 – 60 $

    Investigator

               Get appointed to a position




     Policeman                          Senior Policeman
                                                            18
                                                           18
Corrupt System

         Being Accepted to the University   15 000 $
         through BRIBE
    Chancellor/ chancellor’s                Commission
            office                          members & chairman

                                   30 %
                    40 %


                                  30 %
   Education
   Supervisor
                                             Dean


                  Minister
                                                       19
Corrupt System

    Besides paying 35 GEL for getting a passport,           100 $
                       plus:
                                     Operator
                                 10 $

                                                20 $
                                                        Head of Unit
       60 $
           Central Office
                         300 $
                                                10 $
   In the Warehouse

                                                       Head of District
                                                        Police office

                          Minister
                                                                  20
Measuring Level of Corruption


   Georgia rated 127 out of 133 countries

                       Transparency International, 2003


   More than 70 % of Companies had to pay bribes
   - informal payments.
                         IFC Enterprises Survey, 2002

         GDP 8,563.1              2003 Budget -1,2
         million GEL                Billion GEL

                                                          21
Anti Corruption
   Strategy




                  22
Anti Corruption Strategy

                ANTI-CORRUPTION
                    COUNCIL



            Secretariat    Group of experts




                                              23
Anti Corruption
   Strategy




                  Prosecution of
                  Corrupt Cases




                                   24
Zero Tolerance for Corruption
Number of Prosecuted Persons within the   Number of Civil Servants Prosecuted
            Justice System
                (2003 – 2010)                       (2003 – 2010)
                                             15      Minister
         Position               Number       15      Deputy Minister
                                             6       Member of Parliament
 Policeman                       1064
                                             24      Member of City Council

 Investigator                    109         91      Chairmen of City Council
                                             5       Governor
 Prosecutor                       20         93      City Council Chairperson
                                             31      Deputy Chairperson of City
 Judge                            30                 Council
                                             6       Mayor
 Total                           1223        6       Deputy Mayer
                                            277      Customs Officer
                                            213      Tax Inspector
                                            213      Other Civil Servant
                                            995      Total
                                                                                25
Anti Corruption
   Strategy




                    Prosecution of
                    Corrupt Cases




                  Amending
                  Legislation




                                     26
Amending Legislation

  International Agreements & Criminalization of
  Corruption
  Law on Conflicts of Interest and Corruption in Public
  Service and Law on Public Service

  Law on Chamber of Control


  Amendments to Public Service Law


  Legal Initiatives for Elimination of Procedural Barriers


                                                             27
Anti Corruption
               Strategy




                                Prosecution of
                                Corrupt Cases




                              Amending
HR Policy
                              Legislation




                                                 28
HR Policy

   Personnel Optimization


   Since 2005 Personnel SelectionTeststhe basis of
                                  on
   Competitions
                    Tests
   New System of Tests & Trainings          Promotion
     Tests
                              Appointment

   New System ofPersonnel
                 Motivation (monetary, non-monetary)
                  Database

     Training
                                                        29
HR Policy

  Salary Raise
                              600 – 4000 GEL
  Improved Working
  Conditions                2010

  Transparent Recruitment
                            2006
  & Assessment System
                            2004
  Career Map
                            2000

  Financial Disclosure             15 – 60 GEL
                             www.jobs.gov.ge

                                                  30
                                                 30
Anti Corruption
                      Strategy




Service Delivery
                                       Prosecution of
    Process
 E-Governance                          Corrupt Cases




                                     Amending
       HR Policy
                                     Legislation




                                                        31
Accelerated Services
                                                         Business
  Property Registration            Archive Service
                                                        Registration


  Issuing                 of                            Issuing the
  Passport                                           Residence Permit


      Issuing of               SERVICE DELIVERY      Customs Clearance
      Residence
      Certificate
                                IN 1-3 HOURS
      Change and
    correction of civil                                  Civil Acts
    acts registration                                   Registration

     Apostille and
   legalization of the               Granting of
                                                      Notary Services
       document                      Citizenship



                                                                        32
Fast & Simple Services


                                      Pqopeqty
                                      has been
                                     qegisteqed




   Expqess
   Seqvice
                   1
             Consulta   Houq Fee
               ncy         payment




                                             33
Physical Environment
    Before             Now




                             34
Anti Corruption
                          Strategy




Service Delivery
    Process
                          2003                   Prosecution of
 E-Governance                                    Corrupt Cases

                          2011

                                         Amending
           HR Policy
                                         Legislation




                                                              35
Public Service Hall




           Revenue
           National      National
                       Ministry of        National
                                           Tbilisi
          Service of
           Bureau       Archive of
                       Energy and        Agency of
                                        Architecture
           Georgia
         Enforcement     Georgia
                         Natural           Public
                                          Service
                       Resources          Registry

                       Civil Registry
                       MOF Service        Private
                                          Notary
                          Agency          Sector
                                        Chamber of
                                         Georgia




                                                       36
E-State Procurement System



   Transparent & Competitive Procurement
   Process


       Appr. 18,000 tenders announced, with the
       value of 754 mln GEL



             As a result 106 mln GEL saved




                                                  37
E-Auction




            38
Online Asset Declaration
              Financial Disclosure




                                      39
                                     39
Liberalization of Economy

        Licenses            Permits




        300
        86                  600
                             50



                                      40
Dynamics of GDP and State Budget Growth
                                                 GDP Growth

                                                                                                        201
               2003          2004         2005        2006         2007        2008         2009
                                                                                                         0
GDP           3,990.8       5,124.7     6,411       7,761.7      10,172 12,800.           10,744.
(mln
USD)
                                                                        5                 7
Real          11,1          5,9         9,6         9,4          12,3        2,3          -3,9          5,5
growth
(%)

                                     State Budget Increase, mln GEL

                                                                            6.758.832   6.754.107   6.991.213

                                                                5.237.131

                                                    3.822.513
                                        2.618.557
                            1.930.210
  1.009.926     1.207.073


    2002          2003        2004        2005        2006        2007        2008       2009         2010


                                                                                                        41
Georgia’s Mental Revolution

        “Less corrupt than most former Soviet republics”…



           “One of the easiest places in the world to do business”

                          “…Its police do not take bribes”.

     “People are no longer surprised by such success. The biggest
                   transformation is in their minds.”




                                                                     42
Reforms Continue...

        Most Effective Government in the fight
                 against corruption
                            Transparency International, 2010




               Thank You




                                                               43

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Best Practices in Defeating Corruption & Results of 2011 Crime and Security Survey

  • 1. Public Service Delivery of the Future – Combating Corruption, Streamlining Performance Georgias Best Practices in Defeating Corruption & Results of 2011 Crime and Security Survey Otar Kakhidze September 23, 2011 Batumi, Georgia
  • 2. "Crime and Security Survey - Georgia, 2011“ Quantitative Research Report The project was initiated by the Ministry of Justice and is funded by the European Union 20/04/2011 Georgian Opinion Research Business International
  • 3. Victimisation level 1992 – 2011 years Last Last Last Last Last year Last year Last year Last year 5 yrs. 5 yrs. 5 yrs. 5 yrs. 1992 1996 2010 2011 Car theft 15.4 6.3 16.8 3.3 1.1 0.02 0.4 0.0 Theft from and out of car 31.1 10.8 34.7 10.7 7.27 0.8 3.6 0.3 Car vandalism 14.5 4.1 5.1 1.7 1.7 0.3 0.9 0.2 Burglary 9.9 2.5 13.8 3.6 2.7 0.5 2.2 0.5 Attempted burglary 8.2 2.1 9.7 3 1.2 0.1 0.7 0.1 Robbery/armed robbery 5.8 1.8 7.2 2.5 0.6 0.2 0.4 0.2 Theft of other personal property 13.4 3.5 19.1 6.5 2.1 0.8 1.0 0.2 Assault/threat * 5.3 0.6 7.9 3.2 1.1 0.18 1.1 0.5 * In the survey of 2010 -2011 in Georgia the question for assaults and threats are asked separately. The figures in the table are summarised. 3
  • 4. Victimisation over 5 years prevalence, Comparison with other countries Theft of other personal Sexual offences against Assaults and threat of Theft from and out of Overall victimisation Attempted burglary Motorcycle theft Robbery/armed Survey mode for 10 crimes Bicycle theft Survey year property Car theft Burglary violence robbery women car Canada Cati 2010 41 5,1 16,9 5,5 15 5,6 5,7 2,7 11,3 6,1 8,9 Denmark Cati 2010 52,7 4,8 13 11,4 26,1 10,6 5,3 2,8 13,2 2,7 9,9 Germany Cati 2010 42,2 1,5 12,6 3,3 16,5 5,4 5,6 2,8 14 5,1 11,3 Georgia F2F 2010 11,1 1,1 7,3 2,8 1,5 2,7 1,2 0,6 2,1 0,2 0,9 Georgia F2F 2011 7 0,4 3,6 4,5 0,5 2,2 0,7 0,4 1 0,1 1,1 Netherlands Cati 2010 52,2 1,8 15,6 6,4 23,7 4,8 7,2 4 12,6 3,7 13 Sweden Cati 2010 44,9 3,5 10,4 4,7 20,2 3,7 3,3 2,4 12,1 4,8 11,8 UK Cati 2010 41,6 3,7 14,5 12,7 12,6 5,7 7,1 3,4 11,6 5,6 14,3 Note: in sexual offences are calculated only the incidents against females. 4
  • 5. Average victimisation level in Tbilisi and 28 other capital cities 5
  • 6. Average victimisation level in Georgia in 1993-2011 yy. The comparison is done only with 8 crimes researched in 1992-2011. 6
  • 7. Question: Where you trying to avoid any person, or street, or area in terms that it is not safe there? 7
  • 8. The assessment of the authority of “thieves in law” over the last five years %, 2010 %, 2011 Significantly decreased 70 70 A bit decreased 10 10 Criminal don’t have any authority any 6 7 Decreased (total) 86 87 Remained the same 3 2 A bit increased 1 1 Significantly increased 1 0 Increased (total) 5 3 8
  • 9. The assessment of police performance (good and fairly good) Country % Finland 89 USA 88 Canada 86 Georgia 2011 87 Georgia 2010 85 New Zealand 84 Australia 82 Denmark 82 Austria 81 Scotland 79 Ireland 78 England and Wales 75 Great Britain 75 Germany 74 Norway 73 Belgium 71 Hungary 70 Holland 70 Northern Ireland 70 Switzerland 69 Portugal 67 Italy 65 Sweden 65 Japan 64 Luxemburg 62 France 60 Spain 58 Greece 57 Estonia 47 Mexico 44 Poland 41 Average 70 9
  • 10. Attitude towards prosecutor’s office Satisfaction with service of the prosecutor’s office 2010 2011 29% 27% 25% 19% 18% 17% 15% 14% 14% 12% 5% 5% სრულიად უფრო კმაყოფილი არც Neither კმაყოფილი, უფრო სრულიად არ ვიცი/არ მახოვს A bit DK/cannot Very satisfied კმაყოფილი Fairly satisfied არც უკმაყოფილო satisfied or უკმაყოფილო Very dissatisfied უკმაყოფილო dissatisfied remember dissatisfied 10
  • 11. Question: How much is child protected from violence within the school? 11
  • 12. International Rankings 11th place 5th place in Doing Business in Ease of Starting Business World Bank, 2010 World Bank, 2010 #1 REFORMER FOR 7th place in Construction Permit THE LAST2010 YEARS World Bank, 5 WORLD BANK, 2010 2nd place Recommendations of in Property Registration GRECO & OECD Implemented World Bank, 2010 12
  • 13. Global Corruption Barometer, 2010 – TI 77% of Only3% of Citizens Perceive Gov’s Users Paid Actions Toward Bribe the Fighting Corruption as EFFECTIVE 78% of Citizens Think that Corruption Level DECREASED Significantly for the last 3 Years
  • 14. Life in Transition Survey, EBRD 2010 2nd Place in Customer Service Efficiency 92% of Citizens are 2010 OF CITIZENS the Satisfied withAGREE THAT2009 78% Procedures of Official CORRUPTION HAS 2008 FALLEN IN THE LAST 4 YEARS, WHICH IS THE Documents Issuance 2006 HIGHEST IN ALL THE SURVEYED COUNTRIES Life in Transition Survey, EBRD 2010 Corruption Perception among Citizens is the Lowest – 4% Only 2% of Citizens Experienced Bribery
  • 15. HOW DID GEORGIA ACHIEVE IT?
  • 16. Anti Corruption Strategy Service Delivery 2003 Prosecution of Process E-Governance Corrupt Cases 2011 Amending HR Policy Legislation 16
  • 17. A Failed State Integral part of the daily life of Georgians; Rule in all pubic institutions and norm in the mentality of citizens CORRUPTION Corrupt Police Corrupt Tax and Customs Corrupt Education Corrupt Judiciary Corrupt Civil Service Corrupt Society 17
  • 18. A Failed State Low Salaries Position Salary Judge Prosecutor 15 – 60 $ Investigator Get appointed to a position Policeman Senior Policeman 18 18
  • 19. Corrupt System Being Accepted to the University 15 000 $ through BRIBE Chancellor/ chancellor’s Commission office members & chairman 30 % 40 % 30 % Education Supervisor Dean Minister 19
  • 20. Corrupt System Besides paying 35 GEL for getting a passport, 100 $ plus: Operator 10 $ 20 $ Head of Unit 60 $ Central Office 300 $ 10 $ In the Warehouse Head of District Police office Minister 20
  • 21. Measuring Level of Corruption Georgia rated 127 out of 133 countries Transparency International, 2003 More than 70 % of Companies had to pay bribes - informal payments. IFC Enterprises Survey, 2002 GDP 8,563.1 2003 Budget -1,2 million GEL Billion GEL 21
  • 22. Anti Corruption Strategy 22
  • 23. Anti Corruption Strategy ANTI-CORRUPTION COUNCIL Secretariat Group of experts 23
  • 24. Anti Corruption Strategy Prosecution of Corrupt Cases 24
  • 25. Zero Tolerance for Corruption Number of Prosecuted Persons within the Number of Civil Servants Prosecuted Justice System (2003 – 2010) (2003 – 2010) 15 Minister Position Number 15 Deputy Minister 6 Member of Parliament Policeman 1064 24 Member of City Council Investigator 109 91 Chairmen of City Council 5 Governor Prosecutor 20 93 City Council Chairperson 31 Deputy Chairperson of City Judge 30 Council 6 Mayor Total 1223 6 Deputy Mayer 277 Customs Officer 213 Tax Inspector 213 Other Civil Servant 995 Total 25
  • 26. Anti Corruption Strategy Prosecution of Corrupt Cases Amending Legislation 26
  • 27. Amending Legislation International Agreements & Criminalization of Corruption Law on Conflicts of Interest and Corruption in Public Service and Law on Public Service Law on Chamber of Control Amendments to Public Service Law Legal Initiatives for Elimination of Procedural Barriers 27
  • 28. Anti Corruption Strategy Prosecution of Corrupt Cases Amending HR Policy Legislation 28
  • 29. HR Policy Personnel Optimization Since 2005 Personnel SelectionTeststhe basis of on Competitions Tests New System of Tests & Trainings Promotion Tests Appointment New System ofPersonnel Motivation (monetary, non-monetary) Database Training 29
  • 30. HR Policy Salary Raise 600 – 4000 GEL Improved Working Conditions 2010 Transparent Recruitment 2006 & Assessment System 2004 Career Map 2000 Financial Disclosure 15 – 60 GEL www.jobs.gov.ge 30 30
  • 31. Anti Corruption Strategy Service Delivery Prosecution of Process E-Governance Corrupt Cases Amending HR Policy Legislation 31
  • 32. Accelerated Services Business Property Registration Archive Service Registration Issuing of Issuing the Passport Residence Permit Issuing of SERVICE DELIVERY Customs Clearance Residence Certificate IN 1-3 HOURS Change and correction of civil Civil Acts acts registration Registration Apostille and legalization of the Granting of Notary Services document Citizenship 32
  • 33. Fast & Simple Services Pqopeqty has been qegisteqed Expqess Seqvice 1 Consulta Houq Fee ncy payment 33
  • 34. Physical Environment Before Now 34
  • 35. Anti Corruption Strategy Service Delivery Process 2003 Prosecution of E-Governance Corrupt Cases 2011 Amending HR Policy Legislation 35
  • 36. Public Service Hall Revenue National National Ministry of National Tbilisi Service of Bureau Archive of Energy and Agency of Architecture Georgia Enforcement Georgia Natural Public Service Resources Registry Civil Registry MOF Service Private Notary Agency Sector Chamber of Georgia 36
  • 37. E-State Procurement System Transparent & Competitive Procurement Process Appr. 18,000 tenders announced, with the value of 754 mln GEL As a result 106 mln GEL saved 37
  • 38. E-Auction 38
  • 39. Online Asset Declaration Financial Disclosure 39 39
  • 40. Liberalization of Economy Licenses Permits 300 86 600 50 40
  • 41. Dynamics of GDP and State Budget Growth GDP Growth 201 2003 2004 2005 2006 2007 2008 2009 0 GDP 3,990.8 5,124.7 6,411 7,761.7 10,172 12,800. 10,744. (mln USD) 5 7 Real 11,1 5,9 9,6 9,4 12,3 2,3 -3,9 5,5 growth (%) State Budget Increase, mln GEL 6.758.832 6.754.107 6.991.213 5.237.131 3.822.513 2.618.557 1.930.210 1.009.926 1.207.073 2002 2003 2004 2005 2006 2007 2008 2009 2010 41
  • 42. Georgia’s Mental Revolution “Less corrupt than most former Soviet republics”… “One of the easiest places in the world to do business” “…Its police do not take bribes”. “People are no longer surprised by such success. The biggest transformation is in their minds.” 42
  • 43. Reforms Continue... Most Effective Government in the fight against corruption Transparency International, 2010 Thank You 43