Note: This document may not always reflect the actual appropriations determined by Congress. Final budget allocations for USAID's programs are not determined until after passage of an appropriations bill and preparation of the Operating Year Budget (OYB).
GEORGIA
FY 1997 FY 1998 FY 1999 Actuals Estimate Request FREEDOM Support Act............... $26,900,000 $92,500,000 $80,700,000 Introduction
The emergence of a democratic, prosperous and independent Georgia advances U.S. long-term geo-political, economic and humanitarian interests. The consolidation of democratic order and introduction of market-oriented reforms under the skillful leadership of President Eduard Shevardnadze -- and a progressive reform-minded Parliament -- is permitting Georgia to focus its full attention on the formidable task of political, economic and social development after years of deadly internal conflict. Its strategic location makes Georgia critical to the oil and transportation equation in the Trans-Caspian region. As a vibrant, free-market democracy Georgia can become a stabilizing force in a region that is likely to be an important alternative source of U.S. oil supplies.
The Development Challenge
Since independence, Georgia's economic and political stability has been severely hampered by internal conflicts (the Abkhazian revolt and South Ossetian separatist movement) and the dissolution of regional trade links caused by the break-up of the former Soviet Union. While the cessation of fighting and the establishment of both central democratic authority and a measure of macro-economic stability are cause for optimism, Georgia still faces formidable challenges in the transition to free-market democracy. A durable settlement to the various indigenous conflicts has proven elusive and the Georgian citizenry still faces considerable economic hardship, made worse by persistent energy shortages, endemic corruption and limited progress in putting in place the requisite legal, regulatory and policy framework for sustained growth.
The rupturing of trade links, the underdeveloped state of Georgia's financial markets, delays in carrying out privatization and economic restructuring, and one of the heaviest per capita debt burdens among the former Soviet republics (largely the result of purchase of natural gas abroad) are further impediments to a sustained economic turnaround. Tax collection rates remain very low, depriving state coffers of critical resources. Another brake on development is Georgia's faltering energy sector which is yet to undergo major reforms that are essential to improve efficiency and attract badly needed investment. Power outages are frequent, making winter months especially harsh. The near collapse of the system of social benefits on top of the slow rebound from the precipitous post-Soviet economic decline has produced a dramatic fall in living standards for the vast majority of the population. Even in the political sphere where progress toward democratic governance has been impressive, institutions, policies and practices are still fragile. Political parties, independent media and the non-governmental organization (NGO) sector -- are nowhere near being sustainable.
Despite these obstacles, Georgia has been making encouraging headway in all spheres since 1995 and shows determination to accelerate the reform process. President Shevardnadze has a constructive partner in the decidedly reformist parliament which is enacting legislation that will serve as the foundation for the new economic and political order. With backing from the International Monetary Fund (IMF), World Bank the U.S. and other donors, Georgia has cut inflation, imposed fiscal discipline, liberalized prices, stabilized the currency, set up a functioning banking system, and begun to push ahead with privatizing state-owned enterprises. In the political area, democratic rule is taking root. Citizen participation in the political process through electoral parties and non-governmental organizations (NGOs) is increasing. In the social sector, the collapse of the system of social benefits, including the health care system, has taken a heavy toll on the population. The humanitarian situation has shifted from a crisis to one of endemic poverty. The Government of Georgia (GOG) has begun to
turn its attention toward systemic reform and putting in place a more market oriented system of health services and a more rational system of pensions and other social welfare subsidies.
Other Donors
Other major multilateral donors and international lending institutions include the IMF, World Bank, European Bank for Reconstruction and Development and the European Union. Important bilateral donors include Germany, Great Britain, Netherlands and Italy. As elsewhere in the Caucasus, USAID has worked cooperatively with several of these donors and has been instrumental in leveraging large loans from the World Bank through targeted technical assistance.
FY 1999 Program
With a degree of economic and political stability emerging, USAID has been able to reduce dramatically the proportion of its assistance devoted to humanitarian needs and to undertake a serious reform effort. The program in Georgia now integrates institutional and policy reform at the national level with capacity-building at the grassroots level. FY 1999 funding is requested to support economic restructuring; to bolster civil society, strengthen democratic local governance, and firmly establish the rule of law. Funding is also sought to reduce human suffering, particularly in the conflict region of Abkhazia, and to promote social, economic and political reform at the community level.
In the economic sphere, USAID will build on progress in privatizing state-owned firms, creating a legal and regulatory framework to help stimulate the growth of small and medium enterprises (particularly in the promising agricultural sector), fostering the development of a competitive capital market to increase access to credit, introducing greater accountability and transparency, and generally improving the government's capacity to manage macro-economic policy. FY 1999 funding will support strategic objectives in privatization, enterprise growth and development, private financial sector development, and energy restructuring.
While U.S. assistance has been instrumental in advancing democratization goals, the country's political evolution is far from complete. FY 1999 funding will continue to support strategic objectives in citizens' participation, judicial reform, and local government. USAID will address concerns with corruption -- an area critical both to democracy and economic revitalization -- by intensifying its efforts to accelerate legal and judicial reform.
In the social sector, efforts will continue to meet the basic needs of the most vulnerable segments of the population --particularly in the conflict region of Abkhazia-- while working at the community level to increase household self-sufficiency and provision of basic services. In launching a community mobilization initiative, USAID will build on the World Bank's successful Social Investment Fund which was established to support community-level projects that stimulate local employment and income generation. These programs, which boost the capacity of local actors to work together to solve community problems, also support economic development and democracy-strengthening goals.
Under cross-cutting and special initiatives, USAID's principal activity is a large training program (including U.S.-based) which offers opportunities for Georgian citizens involved in many aspects of Georgian reform to enhance their skills. Training advances USAID strategic goals across the portfolio. In those instances where activities implemented by other U.S. Government agencies do not directly support USAID's strategic objectives, they are included as special initiatives. USAID will also contribute to Georgian government health reform efforts through institutional partnerships, strengthening of national health information systems and technical assistance in the area of women's reproductive health. In addition, USAID will provide vaccines, medicines and equipment to help combat immediate health problems such as infectious diseases, including tuberculosis.
GEORGIA
FY 1999 PROGRAM SUMMARY*
(in Thousands of Dollars)
Strategic ObjectivesEconomic Restructuring Democratic
TransitionSocial Stabilization Cross-cutting / Special Initiatives Total Privatization 2,600 -- -- -- 2,600 Fiscal Reform -- -- -- -- -- Private Enterprise 7,850 -- -- -- 7,850 Financial Reform 3,600 -- -- -- 3,600 Energy 15,000 -- -- -- 15,000 Environmental Management -- -- -- -- -- Citizens' Participation -- 3,720 -- -- 3,720 Legal Systems -- 1,800 -- -- 1,800 Local Government -- 800 -- -- 800 Crises -- -- 20,430 -- 20,430 Social Benefits -- -- -- -- -- Environmental Health -- -- -- -- -- Cross-cutting / Special Initiatives -- -- -- 24,900 24,900 TOTAL 29,050 6,320 20,430 24,900 80,700
*FREEDOM Support (FSA) Act funds
USAID Mission Director: Geraldine Donnelly
ACTIVITY DATA SHEET
PROGRAM: GEORGIA
TITLE: Privatization, 110-S001.1
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999: $2,600,000 FREEDOM Support Act
INITIAL OBLIGATION: FY 1998; ESTIMATED COMPLETION DATE: FY 2002
Purpose: Increased transfer of state-owned assets to the private sector.
USAID Role and Achievements to Date: The privatization of urban/industrial land and the strategic privatization of an important Black Sea port are two major pieces of the broad multi-year market reform program recently initiated by USAID. In one element of the program, USAID assists the Government of Georgia in its efforts to privatize urban/industrial land, especially the land under and adjacent to privatized enterprises. USAID technical advisors have begun working with the State Department of Land Management to introduce a favorable legal and regulatory environment for urban and industrial land privatization. The USAID funded Poti Port Privatization work, is another important piece of the market reform program. The first phase has so far resulted in the development of a restructuring and privatization plan to improve the efficiency, productivity and competitiveness of the port and the design of a government-operated Port Authority plan that will provide an effective and transparent legal and regulatory structure for Poti Port operations. Public information activities have been conducted for key government officials, Parliamentarians, the media and Poti citizens on the various options for a privatization plan. A U.S. study tour for the key Georgian Government officials was conducted.
Description: This is a new SO in FY 1998 and still under design. The privatization of urban/industrial land requires establishing a titling and registration system and the implementation of an enterprise land sales pilot in Tbilisi and/or another urban area. As part of this program, USAID plans to assist in developing programs that inform Georgian citizens about urban and industrial land privatization issues and ownership rights. This program, which is closely linked to other components of the market reform program, will enable municipalities to generate income through tax revenues rather than land leases and allow enterprises to raise capital more effectively, including through the use of land as collateral. Phase II of the Poti Port Project will not commence until the privatization plan meets the approval of the Government of Georgia and it agrees to privatize at least 51% of the shares. This phase begins the implementation of the mutually agreed upon privatization plan in 1998 including drafting and implementing the legal and regulatory structure for the Port Authority, assisting in attracting and selecting strategic investors and training of appropriate port personnel.
Host Country and Other Donors: USAID advisors work closely with the State Department of Land Management. USAID also coordinates its efforts with both the World Bank and the German Organization for Technical Assistance (GTZ) on harmonizing registration and titling systems. Poti Port privatization requires that USAID coordinate with GTZ, the European Union (EU) TRACECA project, World Bank, EBRD, Trade Development Agency and United Nations Development Program (UNDP), all of which have programs or involvement affecting the port.
Beneficiaries: A comprehensive and legally recognized right to private land ownership is an integral part of a country's economic transition to a market economy. By securing title to their land, private enterprises will enhance their commercial viability and be more attractive to investors, both domestic and foreign. Poti Port is not only a vital gateway for Georgian and Caucasian trade and commerce with international markets, it also has the potential to become the region's largest commercial port and engine for economic growth. The successful privatization of Poti Port will also build support for privatizing other strategic industries such as energy, transport and telecommunications and thus provide economic benefits to the entire population.
Principal Contractors, Grantees or Agencies: The privatization of urban and industrial land is being implemented by Booz-Allen & Hamilton. International Business and Technical Consultants (IBTCI) is working on the restructuring of Poti Port.
Major Results Indicators: *
Urban land transferred from state to enterprises
Land titling and registration system established
Law enacted allowing the privatization of at least 51%
of Poti Port
* These are illustrative indicators. Baseline and targets to be determined in FY 1998.
ACTIVITY DATA SHEET
PROGRAM: GEORGIA
TITLE: Private Enterprise, 110-S001.3
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999 $7,850,000 FREEDOM Support Act
INITIAL OBLIGATION: FY 1993; ESTIMATED COMPLETION DATE: FY 2000
Purpose: Accelerated development and growth of private enterprise.
USAID Role and Achievements to Date: USAID is undertaking a broad, multi-year economic reform program for Georgia, including (1) urban/industrial land privatization, (2) comprehensive accounting reform, and (3) promoting the establishment and enforcement of new commercial laws, codes and regulations required to encourage and regulate business in an open, competitive market. USAID technical advisors have worked with the GOG, the IMF and the International Bank for Reconstruction and Development (IBRD) on macroeconomic policy adjustments and structural reforms which have put Georgia on the road to a market economy. USAID economic policy and legal assistance working with Georgia's national leaders have developed economic policies, laws and regulations to establish the market environment for private sector, particularly export-driven, growth and the absorption of new technology. The program focuses primarily on the private sector with the aim of increasing the level of investment in Georgia (both domestic and foreign), increasing the amount of private ownership of land and enterprises, and building enterprise productivity through changes in managerial accounting. In 1996 and 1997, USAID financed advisors to the Center for Economic Policy Analysis and Reform have supported national leaders in the promotion of private sector growth. The advisors also assisted in the integration of new commercial and civil codes into the new Civil Code. In late 1997, technical assistance teams were mobilized to initiate the land privatization and accounting reform components of this program, while preliminary assessment work was conducted for a second phase of legal and regulatory work scheduled to begin in 1998. In addition, the Georgians will have their first working party meeting on World Trade Organization ( WTO) accession issues in February, 1998.
Description: The urban/industrial land privatization activity will establish a favorable legal and regulatory environment, coordinate with other donors in establishing a titling and registration system, implement an enterprise land sales pilot program in one or more urban areas, and promote greater public awareness of urban/industrial land privatization issues. Ownership of their land will allow enterprises to obtain access to bank loans on more favorable terms, in addition to selling unwanted land to raise additional capital. The accounting reform activity will establish the legal, regulatory and institutional framework for financial accounting and auditing, based on international standards. In the private sector, accounting and reporting of financial information at the enterprise level guides capital flows and provides the basis for maximizing enterprise efficiency and profitability. The legal assistance activity will help Georgian leaders to establish a legal/regulatory environment conducive to private sector development, with particular attention to gaining accession to the WTO and establishing anti-corruption/good governance norms. To expand and accelerate the transition to a more development oriented-program, USAID is increasing small and medium enterprise assistance, particularly to the agricultural sector. Via the Caucasus enterprise program, financing and technical advice are being provided to qualifying businesses. USAID-funded non-government organizations are identifying and assisting clients to prepare viable investment and business plans. USAID will encourage private agricultural sector investment, especially in the seed and agricultural inputs sectors, and provide technical assistance to private farmers' groups, other producer groups and input suppliers to improve management and services to clients and members. The private investment fund implemented through Overseas Private Investment Corporation (OPIC) and the small enterprise lending program will also support private sector development.
Host Country and Other Donors: Ongoing efforts to strengthen private enterprise are undertaken in coordination with the Minister of Economy, key parliamentary leaders, the President's chief advisor for
economic reform, the State Department of Land Management, the World Bank, and the Dutch and German governments. In collaboration with USAID, small and medium enterprise credit support is being provided by the International Finance Corporation.
Beneficiaries: The government’s economic policies, commercial laws and regulations and reformed institutions will set the stage for new investments and the rapid import of new technology which in turn will reemploy Georgia's skilled labor force in manufacturing and agriculture. Small and medium enterprises in rural and urban settings will also benefit from technical assistance and credit funds being provided.
Principal Contractors, Grantees or Agencies: USAID activities are implemented by contracts to U.S. firms (Sibley International, Booz, Allen & Hamilton), the University of Maryland, and grants to a number of organizations such as the International Executive Service Corps, Volunteers in Overseas Cooperatives Assistance (VOCA), Shorebank/Finca and the Eurasia Foundation.
Major Results Indicators: Baseline Target Accountant/Auditor Professional Association 0 (1997) 1 (1999) Private sector share of GDP 50%(1996) 65%(1999) Foreign direct investment $6m(1995) $75m(1999) Accession to WTO No(1997) Yes(1999)
ACTIVITY DATA SHEET
PROGRAM: GEORGIA
TITLE: Financial Reform, 110-S001.4
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999 $3,600,000 FREEDOM Support Act:
INITIAL OBLIGATION: FY 1993; ESTIMATED COMPLETION DATE: FY 2000
Purpose: A more competitive and market responsive private financial sector.
USAID Role and Achievements to Date: USAID technical assistance has (1) helped Georgian entrepreneurs develop small and medium enterprises and create new products and services; (2) established a bank training center in a joint effort with the National Bank of Georgia (NBG) and leading local commercial banks; (3) partially installed an electronic payments system for expediting international and domestic financial transactions; and (4) designed and initiated implementation of a comprehensive system for regulated securities trading.
Description: USAID is financing technical assistance to implement electronic payment and accounting systems that will permit real time financial transactions to take place among domestic banks, between the central bank and its seven regional clearing branches as well as international transactions from the NBG platform provided to commercial banks. USAID will continue to provide a resident advisor and short-term technical assistance to train commercial bank managers and officers. The focus of this training is credit analysis, portfolio management, asset and liability management, international accounting standards, and internal audit. In addition, USAID will work with IMF and World Bank advisors to improve bank supervision through on-the-job training with U.S. bank supervision authorities and the Federal Reserve and to provide additional advisory services to the NBG in the broad area of bank supervision. USAID will continue a comprehensive capital markets development program designed to (1) establish an independent securities and exchange authority, (2) develop a mechanism for securities trading, (3) create a centralized clearing, settlement and depository system, (4) properly train broker-dealers, investment funds managers and other members of the securities community, and (5) assist newly-privatized enterprises to improve corporate governance and shareholder rights, and compliance with securities regulations pertaining to disclosure and reporting.
Host Country and Other Donors: USAID is coordinating its assistance activities with the NBG, the Ministry of Finance, the Securities and Stock Exchange Inspection Board, the World Bank, the IMF, and the EU.
Beneficiaries: USAID will assist Georgia in establishing the backbone of a modern financial sector both to facilitate the mobilization of domestic savings and to attract foreign investment. In the long term, Georgians will benefit from financial sector development and reforms as enterprises expand more rapidly, thereby generating employment; households gain access to credit for housing and consumer goods; investors secure ownership in enterprises; and the government reduces borrowing costs as a result of better functioning capital markets and enhanced stability and confidence in the banking sector.
Principal Contractors, Grantees and Agencies: USAID's investments in the electronic payments system are managed directly by USAID; and the Barents Group manages both the bankers training and capital markets activities.
Major Results Indicators: Baseline Target Independent securities & exchange authority No (1997) Yes (1999) Commercially viable securities trading system No (1997) Yes(1999)
ACTIVITY DATA SHEET
PROGRAM: GEORGIA
TITLE: Energy, 110-S001.5
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999: $15,000,000 FREEDOM Support Act
INITIAL OBLIGATION: FY 1996; ESTIMATED COMPLETION DATE: FY 2001
Purpose: A more economically sustainable energy sector.
USAID Role and Achievements to Date: While initial USAID assistance to the energy sector involved the provision of critical equipment and fuel supplies, USAID assistance is now focused on the systemic economic reform of the sector. Energy sector reform is an essential and critical input to Georgia's transition to a market economy. USAID was instrumental in the GOG's decision to restructure the electric power sector and to pass an Electricity Law in June 1997 that created a national regulatory body. USAID provides extensive technical assistance to the new regulatory body relating to operating licenses, tariffs, and market rules for power sector operation. USAID has also assisted the GOG to develop a privatization strategy for power distribution companies and completed an analysis of how the more than 70 companies should be grouped economically to facilitate privatization. However, despite this progress, much work is still needed to implement the reforms and solidify them so that they cannot be easily reversed. In the oil and gas sector, USAID is continuing to provide support on legislation to facilitate the development of domestic resources, as well as encouraging dialogue with the GOG on a pipeline law to facilitate management of oil and gas transit pipelines across Georgia.
Description: USAID's emphasis is two-fold: (a) to create a climate that will attract private sector participation and ownership, with subsequent improvements in the management of resources and provision of services; and (b) to improve energy sector efficiency in economic terms, with subsequent increases in capital and operating resources. In the electric power sector, The two energy subsectors having the greatest impact on the Georgian economy are: the electric power subsector, which is vital to residential uses and to industrial productivity and; the geo-strategic oil subsector which is linked to the development of oil reserves in the Caspian Sea and exports to the region and outside the region. USAID resources will be used to support the restructuring and establishment of public-private corporations in the electric power, oil and gas subsectors. USAID assistance to bring about legislative and regulatory reform is focussed upon promoting private sector participation in the sector. This assistance will strengthen the commercial operations of newly-created sector businesses with the introduction of improved metering and collection systems and the adoption of international accounting standards. It will also mobilize private/public financing to reinforce the reform process, to undertake selected new energy projects and to rehabilitate the existing energy infrastructure. USAID is also performing a pre-loan analysis for the EBRD for the rehabilitation of the Zugdidi geothermal field, which will restore heat to light industries and to households.
Host Country and Other Donors: The European Union has undertaken comprehensive assessments in tariff structure, accounting, billing, and metering practices, while the World Bank is conducting a $45 million loan appraisal of maintenance and rehabilitation work of electric generation, transmission, and distribution. USAID complemented other donor activities with a pre-loan analysis of the Inguri Hydroelectric Station. The European Bank for Reconstruction and Development (EBRD) approved an $18.1 million loan to a local power company to rehabilitate the Rioni hydro station and improve operations and water treatment. The EBRD is also developing loan packages to repair the Inguri Hydroelectric Station, the largest hydropower station in the country, and to rehabilitate the Zugdidi geothermal field which provides heat to light industries and households in the region.
Beneficiaries: Approximately 1.3 million residential and commercial consumers of electricity.
Principal Contractors, Grantees, or Agencies: Three institutional contractors: Hagler Bailly (restructuring, privatization and legal assistance); Burns and Roe (rehabilitation of power systems); and the U.S. Energy Association (training in all energy areas).
Major Results Indicators: Baseline Target Oil-Gas pipeline legislation passed No (1996) Yes (1999) Independent regulated utilities with meaningful financial statements established 0(1996) 2(1998) Percent of power generators that are privately-owned 0%(1996) 80%(2001) Percent of state-owned electrical enterprises that are fully divested 0%(1996) 90%(2001)
ACTIVITY DATA SHEET
PROGRAM: GEORGIA
TITLE: Citizens' Participation, 110-S002.1
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999: $3,720,000 FREEDOM Support Act
INITIAL OBLIGATION: FY 1993; ESTIMATED COMPLETION DATE: FY 2000
Purpose: Increased, better-informed citizens' participation in political and economic decision-making.
USAID Role and Achievements to Date: USAID support for the development of independent television in Georgia has resulted in more than 20 independent stations broadcasting around the country, more than 3/4 of which are providing their own daily or weekly news coverage. In addition, USAID assistance has supported the improvement of the legal and regulatory environment for independent broadcasters. In particular, USAID-funded providers have had a measurable impact on the ability of small, independent television stations around the country being able to operate without government interference. USAID assistance programs in development of the "third" or NGO sector have played a significant and positive role in the rapid growth and maturity of the Georgian NGO community. These programs have focused on organizational, management and advocacy skills-building, as well as limited financial support to bolster capacity. A core group of some 50 NGOs based in the capital have advocated for change in legal and policy areas. This has led to changes to the NGO Law itself, including taxation issues, environmental and media laws, and key pieces of legislation such as the Law on the Procuracy, Law on the Courts and the Criminal Code.
Description: USAID contractors and grantees work with independent television stations, political parties, parliamentarians, and indigenous NGOs to foster the growth of civil society and grassroots democratic reform efforts in Georgia. The National Democratic Institute (NDI) provides training to political parties and factions, inside and outside the Parliament on building organizational capabilities, operating as effective parliamentary factions inside the legislature, upgrading parliamentary skills, strengthening party-constituency linkages, and building substantive political platforms. As requested by the Georgian Parliament, a program for restructuring and retraining of parliamentary staff began in FY 1996. ISAR (formerly the Institute on Soviet-American Relations) and the Eurasia Foundation provide assistance to indigenous democratically-oriented (non-humanitarian assistance) NGOs, working to improve management and communications capacity, and their ability to participate effectively in the development of democratic legislative and social reform. Also, activities will focus on improving inter-NGO coordination and developing effective strategies for communicating NGO interests/positions to the press and the general public. Working with Georgian independent television media, USAID provides limited but critical equipment assistance and training programs to bolster journalists' capacity to produce quality news reports on political developments. Media assistance also focuses on developing media associations and networks, providing training in management, advertising, and journalists' rights and responsibilities. Similar activities will continue in FY 1999 and evolve based on the changing needs and growth of Georgian civil society.
Host Country and Other Donors: In 1996, USAID initiated a regular Democracy Donor Coordination Group which meets every six weeks and represents all resident bilateral and multilateral donors (i.e., UNDP, EU, Organization for Security and Cooperation in Europe (OSCE), the British Government, etc.) that fund and/or implement democracy assistance programs. This coordination mechanism has proved extremely successful, not only in avoiding duplicative investments, but in adding value to USAID funded programs through cooperative efforts.
Beneficiaries: USAID-funded activities seek to benefit individuals and organizations actively involved in civic participation and democratic reform efforts, as well as the population at large over time, in encouraging further and deeper citizen participation in the country's transition to a democratic market-oriented state.
Principal Contractors, Grantees, or Agencies: U.S. Grantees include Internews, NDI, ISAR, International Republican Institute (IRI) and NAPA (National Academy for Public Administration). Additional grantees and contractors will be identified as assistance is expanded in this area.
Major Results Indicators: Baseline Target Number of NGOs advocating for legal and policy changes 0 (1993) 60 (1999) Number of NGOs rated as sustainable based on NGO sustainability index (1-lowest to 3-highest) 1 (1995) 2 (1999) % of national legislation passed that is published/covered in media 5% (1996) 30% (1999)
ACTIVITY DATA SHEET
PROGRAM: GEORGIA
TITLE: Legal Systems, 110-S002.2
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999: $1,800,000 FREEDOM Support Ac t
INITIAL OBLIGATION: FY 1996; ESTIMATED COMPLETION DATE: FY 2000
Purpose: Legal systems that better support democratic processes and market reforms.
USAID Role and Achievements to Date: USAID assistance resulted in the establishment of an anti-corruption committee and its active investigation of more than eight cases of government corruption. USAID programs have provided technical and financial support to the Georgian Young Lawyers Association, Georgia's most progressive and only independent bar association, in the training and retraining of legal practitioners, including focus on international and new Georgian legislation and procedures. Significant impact can be seen in the advent of training to develop private law firms. USAID assistance is also being provided for the development and implementation of a new judicial certification system, as well as support in the planning and development of short and long term judicial training programs.
Description:
USAID continues to provide assistance in drafting key pieces of legislation, including the Law on the Courts, the Law on the Procuracy, the Criminal Code, the Anti-Corruption Law, Criminal Investigations Law, and the Law on the Bar. The program will also provide appropriate (re)training materials to all Georgian legal practitioners, focused on what the new key commercial legislation means in practice. USAID will fund commentaries, a common European method, written by the Code's drafters, and will support their dissemination throughout the country.
Host Country and Other Donors: USAID works in close coordination with a newly established GOG Council of Justice, comprising representatives of the legislative, executive and judicial branches. In addition, USAID has established excellent working relationships with both the German and Dutch bilateral assistance providers, and cooperates with the Council of Europe. USAID is working in partnership with the World Bank as they begin the process of implementing a judicial reform loan to the GOG. The European Union will also be contributing to this effort.
Beneficiaries: Activities benefit Georgia's legal institutions and legal advocates in transition to a governmental system based on the rule of law and market principles. These activities will also benefit Georgians who rely on these institutions, both governmental and non-governmental, to support and protect their individual and property rights in accordance with the constitution and internationally recognized human rights statutes.
Principal Contractors, Grantees, or Agencies: The American Bar Association's Central and East European Law Initiative (ABA/CEELI), AMEX International, Inc.
Major Results Indicators: Baseline Target Judicial reform laws enacted No (1996) Yes (1999) Proportion of population understands civil and economic rights 3% (1996) 15% (1999) Judicial certification system implemented No (1996) Yes (2000)
ACTIVITY DATA SHEET
PROGRAM: GEORGIA
TITLE: Local Governance, 110-S002.3
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1998: $800,000 FREEDOM Support Act
INITIAL OBLIGATION: FY 1996; ESTIMATED COMPLETION DATE: FY 2000
Purpose: More effective, responsive, and accountable local government.
USAID Role and Achievements to Date: Though a de-facto decentralization occurred during and immediately after the civil war, the election of President Shevardnadze in 1995 and consolidation of the ruling party's power has led to the establishment of a system of regional governor appointments, which has effectively "re-centralized" the system. The constitution of Georgia includes a clause relating to the establishment of a decentralized local government system only after the resolution of the issue of territorial integrity, i.e., the re-integration of South Ossetia and Abkhazia. However, in early 1996, the GOG determined that despite lack of resolution on these issues, it was critical for the development of the nation as a whole, and particularly in light of conditionalities for accession to European conventions, to move forward in establishing a legal framework for a local government system, as well as scheduling as quickly as possible local government elections. After much delay, the GOG, with USAID technical assistance, has finally moved forward in late 1997 to establish a legislative framework. Though not a fully decentralized system, this effort is a step in the right direction, and provides for local government elections to take place possibly as early as Summer 1998. To date, USAID has not undertaken a major program in local government, although it has provided training for local and municipal officials, and invited them to workshops on local government issues in the NIS region.
Description: Following free and fair local government elections, USAID will work with senior municipal staff and community leaders in selected cities to provide training in key technical areas such as taxation, city management, and budgeting. Contractors/grantees will also work to develop a mayors' municipal association, which will aid in the dissemination of lessons learned and best practices among municipal officials and local council members, to help create an effective mechanism for lobbying the central government on issues of concern to local governments and their constituents.
Host Country and Other Donors: USAID coordinates its efforts with World Bank municipal development activities and with the European Union which is working with the Government of Georgia on civil service reform at the central government level.
Beneficiaries: This effort seeks to benefit Georgian citizens in a few targeted cities. However, the number of beneficiaries can grow through an evolving network of municipal/mayors' associations. Georgian citizens also benefit from more transparent, effective and efficient local governments with the capacity to provide municipal services which ensure a higher standard of living.
Principal Contractors, Grantees, or Agencies: Since activities to date have only been in training exchanges, principal implementors still need to be determined.
Major Results Indicators: Baseline Target Legislation passed favoring local government autonomy No (1996) Yes (1999) Local government elections held No (1996) Yes (1999) Fiscal decentralization policies in place No (1996) Yes (1999) Fiscal decentralization Implemented No (1996) Yes (2000)
ACTIVITY DATA SHEET
PROGRAM: GEORGIA
TITLE: Human Suffering and Crisis Impact Reduced, 110-S003.1
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1998: $20,430,000 FREEDOM Support Act
INITIAL OBLIGATION: FY 1993; ESTIMATED COMPLETION DATE: FY 1999
Purpose: Reduced human suffering and crisis impact.
USAID Role and Achievements to Date: Since 1993, USAID has provided humanitarian assistance through U.S. non-governmental organizations (NGOs) and international organizations to assist Georgia's vulnerable population, particularly internally displaced persons (IDPs). This assistance met critical and immediate needs over the past three years for supplemental food, non-food household items, pharmaceuticals, medical services, water and sanitation facilities, some basic agricultural inputs, and heavy fuel oil for emergency energy needs. Additionally, USAID-funded NGOs have implemented activities in microenterprise development and income generation. They have provided inputs and technical assistance in agriculture, and have reactivated light industry in vulnerable communities. USAID also funded a Social Investment Fund pilot project in cooperation with the World Bank, modeled on successful experience in Armenia.
Description: USAID provides humanitarian assistance in the form of food, immunization programs, and shelter/sanitation rehabilitation. While maintaining reduced programs for vulnerable populations in Georgia proper, new programs in the areas of health, sanitation, psycho-social needs, income generation, and rehabilitation of health and educational facilities are being implemented in the region of Abkhazia which will facilitate resettlement and conflict resolution.
Host Country and Other Donors: Humanitarian assistance is provided in close coordination with the European Union, UN Department of Humanitarian Affairs, UN High Commission for Refugees, and the UN Development Program. Other assistance is provided by the World Food Program and the UN Children's Fund.
Beneficiaries: The estimated vulnerable population is expected to drop from 700,000 to 500,000 with improved targeting methods. Of this number, USAID activities benefit some 200,000 persons, both IDPs and non-IDPs, through direct humanitarian assistance as well as activities focused on income generation. Food assistance and food for work is provided to approximately 90,000 vulnerable people in Georgia.
Principal Contractors, Grantees, or Agencies: USAID funds humanitarian assistance through U.S. private voluntary organizations (PVOs) and international multilateral organizations, including Save the Children Federation, International Rescue Committee, United Methodist Committee on Relief, International Orthodox Christian Charities, International Federation of the Red Cross, UN World Food Program and other UN agencies.
Major Results Indicators: Baseline Target Number of IDPs participating in USAID 58,600 (1997) 75,000 (1999) income-generating projects % drop in estimated vulnerable population 700,000 (1997 base) 35% (1999)
![[USAID Home]](/images/usaid.gif)
[USAID Home]
[CP 99 Home]