Flag of Georgia

Economic Growth and Trade

Georgia has significant economic advantages, with a strategic regional geographic location, proximity to international markets, and significant natural resources. Unfortunately, Georgia’s growth has been hindered by years of instability and the legacies of a state controlled economy.

USAID’s programs in Georgia aim to enable inclusive and sustainable economic growth in the country through improved economic governance, increased competitiveness and employment, responsible management of Georgia’s natural endowments, and increased access to quality education. Current projects focus on improving infrastructure, and helping Georgia develop the human capital to fuel the economic growth and meet the demands of a modern market-based economy.

Current programs:

New Economic Opportunities (NEO)
Apr 2011 – Dec 2015
Chemonics International

www.chemonics.com 

The NEO project is designed to improve rural incomes; reduce poverty levels; improve food security; address critical, small-scale infrastructure priorities in targeted communities; enable targeted Internally Displaced Persons communities (old and new) to sustainably maintain their households; and assist communities distressed by natural or other disasters. The project will target 10 municipalities and will benefit at least 70,000 households that are considered vulnerable.

 

Restoring Efficiency to Agriculture Production (REAP) Activity in Georgia
Sep 2013 – Sep 2018
CNFA

www.reap.ge

The REAP project increases employment and income in rural areas by providing in-kind grants and technical assistance to small and medium enterprises (SMEs) to support improved agricultural productivity, marketing, and processing. The project facilitates the entry of new agribusinesses and expands the operation of existing SMEs to create new jobs, improve the availability of high-quality inputs and machinery services for farmers, and strengthen markets for agricultural goods and services in Georgia. 

Developing Georgia's Agricultural Economics Capacity
Mar 2014 – Jun 2017
Partnership for Economics Education and Research (PEER)
www.iset.ge

This project builds upon the comprehensive assessment of teaching, training and research needs in the Georgian agricultural sector that was commissioned by the United Nations Development Program (UNDP) in late 2011. The project will establish a concentration in Agricultural Economics within the International School of Economics at Tbilisi University (ISET) Master’s Program in Economics.  Selected second year ISET students will complete courses focused on agricultural market analysis, trade in agricultural goods, and agricultural policy. The project will also establish an Agricultural Policy Research Center (APRC) at ISET’s Policy Institute. This new center will develop and communicate relevant research, deliver on-demand consulting services, training, policy evaluation and analysis, thus contributing to the project’s sustainability. The project’s aim is to create a pool of well-trained young economists capable of addressing a wide array of issues related to agricultural and rural development policy in Georgia and the region. Several cohorts of well-trained agricultural economists educated through this project will be employed by the Ministry of Agriculture, other public agencies, NGOs, businesses and international organizations concerned with agricultural policy and Georgia’s rural development.

 

Georgia Agricultural Policy Initiative (GAPI)
Jul 2013 – Jul 2017
U.S. Department of Agriculture (USDA)

GAPI assists the Georgian Ministry of Agriculture (MOA) and the National Statistics Office of Georgia (GEOSTAT) to develop an effective agriculture, information system that includes the creation of a policy unit with the capacity to conduct market outlook and agricultural policy analysis.  The unit analyzes and disseminates economic information needed by both public and private sector decision-makers in Georgia.

 

Strengthening Extension and Advisory Services Activity (SEAS) in Georgia
Oct 2013 – Oct 2015
University of Illinois at Urbana-Champaign
www.meas-extension.org

The Strengthening Extension and Advisory Services Activity (SEAS) program supports the Georgian Ministry of Agriculture (MOA) in the development of a public agricultural extension and advisory service system. SEAS provides technical advisors who work closely with the MOA in developing and implementing multi-year strategies to enhance the capacity of the Ministry’s leadership and relevant field employees to provide effective agricultural extension and advisory services. The Activity contributes to USAID's higher level goal of improving agricultural productivity and rural incomes through more effective delivery of information on best management practices to farmers throughout the country.

 

Governing for Growth in Georgia (G4G) Activity
Aug 2014 – Aug 2019
Deloitte Consulting LLP

The purpose of the G4G activity is to improve Georgia’s economic governance and leadership, particularly in the areas of: (1) weak enforcement of the legal and regulatory framework and its negative impact on small and medium sized enterprises; (2) unregulated use of water resources and the resulting threat to the quality and quantity of water available for long-term economic growth and resource-based conflict; and (3) the lack of an energy trading mechanism between Georgia and neighboring countries that severely inhibits new foreign and domestic investment into hydropower production. G4G will strengthen the capacity of Government of Georgia (GOG) institutions to develop, implement, and enforce reforms, and develop the capacity of private sector and civil society actors to engage the GOG on the development, implementation, and enforcement of reforms. Key to the success of G4G will be supporting inclusive and constructive dialogue among government, private sector, and civil society stakeholders.

 

Municipal Infrastructure and Internally Displaced Persons (IDPs)
Infrastructure Rehabilitation Project
Feb 2011 – Dec 2015
Government of Georgia – Municipal Development Fund (MDF)
www.mdf.ge/eng

This project aims to: 1) develop and rehabilitate municipal infrastructure in certain municipalities affected by the 2008 conflict, including significant irrigation infrastructure; 2) upgrade the homes constructed by the Government of Georgia for persons displaced during the August 2008 conflict and redevelop buildings for use as durable housing for IDPs from previous conflicts; and 3) help ensure overall sustainability of interventions.

 

Infrastructure Oversight and Capacity Building for Municipal Infrastructure and IDP Housing Rehabilitation Project
Jul 2013 – Dec 2014
TetraTech EM Inc.
www.tetratech.com

The project is providing engineering oversight for the Municipal Infrastructure and IDP Housing Rehabilitation Project.  It monitors current processes and practices, identifies and mitigates areas of risk, and carries out oversight and quality control efforts to ensure that selected infrastructure and housing rehabilitation are implemented effectively and in accordance with U.S. and Georgian standards and regulations.

 

Loan Portfolio Guarantee for Bank Republic        
Sept 2005 – Sept 2015
Bank Republic
www.republic.ge

USAID extended a Development Credit Authority (DCA) loan portfolio guarantee for lending up to $6,000,000 to Bank Republic to extend commercial credit to the agricultural and non-agricultural sectors, or any activity that contributes to improved technology or increased employment in Georgia. Approximately 50% of loans are extended to the agricultural sector.

 

Last updated: December 08, 2014

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