MINISTRY OF REGIONAL DEVELOPMENT MINISTRY OF REGIONAL DEVELOPMENT AND INFRASTRUCTURE OF GEORGIAAND INFRASTRUCTURE OF GEORGIA

Regional Development in Regional Development in GeorgiaGeorgia

Open Days, BrusselsOpen Days, Brussels

October 11, 2011October 11, 2011

Georgia at a GlanceGeorgia at a Glance

2

Area 69 700 sq km

Population 2009 4,4 million

Life expectancy 74 years

Official language Georgian

Literacy 100%

Capital Tbilisi

Currency (code) Lari (GEL)

GDP 10 (estimate) US$ 11.0 billion

GDP - real growth rate 2010 (e)

5.5%

GDP - Per Capita 2010 (PPP)

US$ 5 057

Inflation rate (e-o-p) 2010

8%

External Public debt to GDP 2010

37.2%

Georgia at a GlanceGeorgia at a Glance

04/10/23 Georgian Roads 3

11 11 (2010)

112112 (2005)

DoingDoingBusinessBusiness

26 26 (2010)

9999(2005)

Economic Freedom Economic Freedom IndexIndex

7 7 (2010)

CorruptionCorruptionReductionReduction

Administrative-Territorial Map of Administrative-Territorial Map of GeorgiaGeorgia

4

(2005)

)

Ministry of Regional Development and Ministry of Regional Development and Infrastructure of GeorgiaInfrastructure of Georgia

5

Main functions:

• Elaboration of regional development policy framework

• Coordination of local self-government reform

• Development of road, water supply & sewage

infrastructure

• Coordination of Village Support Program

• Institutional refinement of water supply & sewage

systems

• Coordination of the military mobilization

• Coordination of Governors’ activities

Ministry of Regional Development and Ministry of Regional Development and Infrastructure of GeorgiaInfrastructure of Georgia

6

•Coordination of Governors’ activities

•Coordination of Village Support Program

•Regional development policy•Local self-government reform

Infrastructure:

•Roads;•Water supply•Sewage systems;•Other.

• Coordination of the military mobilization

Local Self-Government and Regional Local Self-Government and Regional Development Policy ReformDevelopment Policy Reform

Main directions of the reform:Main directions of the reform:

– Decentralization of governance

– Ratification of the European Charter on Local Self-

Governance

– New legislation on local self-governance

Number of self-governing units was reduced from 1000 to 69:Number of self-governing units was reduced from 1000 to 69:

– 5 self-governing cities

– 64 municipalities

7

Local Self-Government and Regional Local Self-Government and Regional Development Policy ReformDevelopment Policy Reform

Institutionalization of Regional Policy

8

ga

Partner International Partner International OrganizationsOrganizations

Political DocumentsPolitical Documents

10

State Strategy for Regional Development of Georgia for 2010-

2017

Regional Development

SPSP Matrix

Medium-term Action Plan for 2011-2014

State Strategy for Regional State Strategy for Regional Development of Georgia for 2010-Development of Georgia for 2010-

20172017Main directions:

• Effective governance for sustainable regional development

• Development of municipal services and infrastructure

• Supporting development of innovations, new technologies and entrepreneurship

• Development of agriculture and tourism• Ensuring environmental protection

11

Regional Development SPSP Regional Development SPSP MatrixMatrix

Aims of the EU Sector Policy Support Program on Regional Aims of the EU Sector Policy Support Program on Regional DevelDevelopment:opment:

• Supporting sustainable regional development in Georgia• Development of human resources through training of public

bodies• Increasing citizens participation in regional development• Spending funds according to the Regional Development

State Strategy priorities• Improvement of regional statistics and information systems

12

Tranches in stages• I – 5 mln EUR• II – 6 mln EUR• III – 6 mln EUR

Action Plan for 2011-2014Action Plan for 2011-2014Main directions:• Effective governance for sustainable regional

development• Development of municipal services and

infrastructure• Supporting development of innovations, new

technologies and entrepreneurship• Development of agriculture, tourism and

ensuring environmental protection• Improvement of medical service for citizens,

supporting healthcare

13

Expected ResultsExpected Results

• EU - 17+ 2 mln EUR• Creation of effective mechanisms for

regional development• Annual monitoring & evaluation format• Result-oriented instrument for

cooperation between state institutions and civil/private/donor sectors

14

Pilot Regional Development Pilot Regional Development ProgramProgram

• Identification of region – the whole country can be considered as one region (NUTS 3 level)

• Identification of possible institutions – MRDI, Inter-Ministry Working Group at MRDI, Regional Development Councils

Regional Development Councils – for elaboration of RDS,

created by Governor’s Decree and consist of representatives from:

regional administrations, municipalities, NGO and private sectors.

15

Pilot Regional Development Pilot Regional Development ProgramProgram

Identification of Sectors:Infrastructure Development• Renovation of roads• Renovation of water and sewage systems• Waste management• Tourism• Citizens Service Bureaus

Human Resources Development• Support to local administrations through institutional capacity

building• Training of public servants• Improvement of municipal services for citizens• Setting up regional development statistics data bases

Innovations for Regional Development• Elaboration of Innovation Concept• Identification of funding mechanisms for scientific research

16

04/10/23 Georgian Roads 17

Thank YouThank YouFor Your Attention!For Your Attention!

Contact:Ms. Nino DanibegashviliHead of International Relations ServiceTel: (995 577) 112 127E-mail: danibegashvili@mrdi.gov.ge