MACROECONOMIC POLICY

Policy Instruments

Implementation tools

Money supply

Strict control of money supply
Reduction of government credits
Increase of international reserves
Attraction of cash outside banks

Exchange rate

Maintaining floating system
Reduction of dollarization

Banking system and interest rate

Adoption of international banking standards
Increasing banking supervision
Reduction of reserve requirements to 8%

Financial markets

Development of insurance market
Development of capital markets

Consolidation of fiscal policy

Budgetary policy

Elimination of budget deficit
Increase of budget revenues
Prioritisation of budget expenditures
Unification of Ministry of Revenues and Ministry of Finance
Creation of a database for income taxpayers

Tax policy

Simplification of tax administrations
Improvement of tax collection
Increasing fiscal discipline

STRUCTURAL POLICY

Policy Instruments

Implementation tools

Further deregulation
of business activity

Transparent procedures for licensing and permits
Improvement of certification and standardization
Improvement of antimonopoly and competition legislation

Increased stability
of legislation

Accelerating privatization

Increase the transparency of the process
Restructuring enterprises in the energy sector and privatize them
Accelerate privatization in sectors producing high value added (tourism, transportation)

Development of the energy sector

Rehabilitation of existing capacities
Elimination of state subsidies for electricity consumption
Generalized meter installment outside the place of electricity consumption
Identification of new resources (oil, gas)
Restructuring the coal mining sector
A proper system of prices and tariffs for energy

Stimulation
Of SME development

Administrative
and legal basis

Proper legislative basis for SME functioning
Simplification of registration procedures
Creation of a specific entity for SME policy
Specific SME legislation for accelerated depreciation and simplified accounting system

State support for
SME development

Financial support for advertisement and participation to international events (exhibitions, markets)
Providing consulting and training to SME initiators

SME development
in agriculture

Infrastructure development and rehabilitation
Preferential credit policy for rural areas
Development of agro-processing industry in rural zones
Distribution of technical equipment to farmers at preferential prices
Development of rural tourism

SOCIAL POLICY

Policy Instruments

Implementation tools

Professional orientation

Creation of local services for professional orientation of various categories of the population

Employment policies

Creation of recruitment services (public and private) for attracting the labor force
Estimation of the balance a labor resources

Retraining

Provide retraining through local services of professional reorientation

Job creation

Creation of temporary public works;
Stimulate SME development
Promote family business activities

Social insurance policies

Unemployment benefits

Introduce compulsory contributions for unemployment
Set clear rules for unemployment benefits

Pension reform

Reform of current PAYG system

Improvement of the current demogrant scheme
Adoption of a contribution-based pensions scheme

Introduction of private pension funds

Development of the multi-pillar contributory scheme
Development of capital markets

Health care sector reform

Global health care policies

Development of medical research
Improvement of preventive and primary health care
Advocate a healthy lifestyle among the population (targeting nutrition, consumption of alcohol, drugs and tobacco)
Improvement of sanitary and epidemiological services
Improvement of the social environment (work conditions, quality of consumer goods, water)

Reform of medical services

Provision of universal basic medical services, financed by the state
Improvement of medical establishment management
Rehabilitation of the medical infrastructure;
Introduce a national informational system;
Generalization of the outpatient system
Improvement of health care financing;
Privatization of specific medical establishments

Reform of the pharmaceutical sector

Improvement of system management
Strict control of drug quality
Improvement of the financing system

Reform of education sector

Infrastructure rehabilitation and development
Improve the financing system
Reform of primary and secondary education
Introduce modern management techniques for educational establishments

ENVIRONMENT

Strategic measure

Policy Instruments

Implementation tools

Institutional and administrative reforms

Reorganization of the Ministry of Environment and Natural Resources for the purpose of setting clear responsibilities in the field of environmental protection
Regulate management of water-supply and sanitation systems at the local level
Development of land cadastre system
Raising public awareness regarding environmental protection

Environmental policies

Introduction of pollution standards for air and water emissions
Introduction of environmental norms and standards at the business level
Fiscal facilities for enterprises using non-polluting technologies
Deactivation of remaining nuclear military waste from the Soviet period
Launching a program for Black Sea Coast protection
Expanding the number of national reservation parks
Strict monitoring of deforestation

GOVERNANCE AND CORRUPTION

Policy Instruments

Implementation tools

of state resources

Budgetary planning

Enforcement of fiscal discipline
Improvement of budgetary procedures

State procurement

Set clear rules in the field of state procurement
Introduce firm criminal penalties for corrupt administrators

Auditing mechanisms

Adoption of international standards for supervision, financial control and accountancy

State ownership management

Define clear rules for special-purposes investment and state subsidies to the real economy
Introduce an efficient mechanism for profit and dividend distribution
Simplification of bankruptcy procedures

Foreign credit policy

Establishment of the Georgian Agency for Development, aimed at administrating foreign credits
Introduction of a proper supervision mechanism for avoiding the misuse credits

Improving the system of state administration

Institutional and administrative restructuring of administration at central and local levels

Reorganization and reduction of number of ministries
Define the role of State Chancellery and distribute responsibilities between this institution and various ministries
Restructuring the number of departments within each ministry
Redrafting the current law on local governance
Elaboration of the law on local public finance

Improving the efficiency of state administration

Drafting a law covering civil servants, outlining their responsibilities, remuneration, rank and privileges
Instituting a 15% reduction of administrative personnel
Organization of a comprehensive training program of government personnel
Set a mechanism for merit-based selection and promotion of civil servants
Elaboration of the "code of conduit" of civil servants

Law enforcement

Institutional and administrative reform of the armed forces, police and justice;
Initiation of training programs for personnel from state institutions responsible for law enforcement and legal control