Introducing Quality Management and ISO Standards to the Export Sector of Georgia

GEO-02-001
UNDP sector: Manufacturing Industries
Duration: 8 months
Estimated Budget: USD 400.000
Starting Date: June 2002

Background:

At present the main priority of the government of Georgia is overcoming poverty and switching to economic growth. Improvement of the export sector is one of the key priorities of the economy. The Georgian Government, by liberalizing the trade relations and entering WTO aimed to become a normal member of the world economy. Export legislation in Georgia is one of the most liberal in the world, Georgian exporters do not pay VAT tax and only four products needs licensing. Under the supervision of the Ministry Economy, Industry and Trade, the Georgian Export Promotion Agency established the Export Development Concept, and the Association of Georgian Exporters developed a long-term plan to improve the export sector. One of the main priorities of both the concept and the plan is to overcome the lack of knowledge and experience in modern standardization and certification systems, which after entering WTO became the key issue for Georgian exporters. Non harmonization of Georgian standards and certificates of quality with those approved in developed countries become a major reason for technical barriers for Georgian exporters to these countries.

The main objective is to support Georgian exports by improving the quality control and certification systems trough the implementation of modern ISO standards for the export of industrial, mineral and agricultural goods, thus making the export production meet international quality requirements and environmental standards.

Activities:

The project foresees implementation of a number of activities:

• To establish modern Quality Testing Laboratory serving the Georgian exporters;

• To develop a comprehensive concept reflecting the country needs and ISO requirements in the field of certification of export goods;

• To organise a series of training for specialists in the field of international certification, as well as for the project staff.

A Quality Testing Laboratory will be established and functioning in Georgia, equipped with modern quality control apparatus, the core staff of QTL will be trained in managerial, technical and marketing skills, particularly with regard to quality assurance and environmental issues. A quality concept of the international certification and modern standards will be developed and introduced to all exporters wishing to diversify their activities on EU and other most developed international markets.

The Ministry of Economy, Industry and Trade will have a supervisory role of the project while the implementation will be carried out by the Georgian Export Promotion Agency. UNDP will be in charge of monitoring and backstopping.

The implementation of the project would contribute to the program of overcoming poverty and PROMOTING economic growth by means of export capacity building, employment creation, increased cash flow of hard currency and STABILIZING the balance of payments through IMPROVED export sector.