why georgia has succeeded
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DISKUSI PUBLIK
“Sukses Reformasi Libertarian di Georgia?”
Why Georgia has succeeded
Larisa Burakova
Senin 27 Februari, 2012Pukul 19.00 – 21.00 WIB
Wisma ProklamasiJl. Proklamasi No. 41Jakarta Pusat
Why Georgia has succeeded
Larisa BurakovaFebruary 27, 2012
Why Georgia
Why Georgia#1 Reformer for the last 5 years
Among leaders in combating corruption
Georgia
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
Qat
ar
FYR
Mac
edon
ia
Uru
guay
Va
nuat
u B
angl
ades
h C
osta
Ric
a M
aurit
ius
Rom
ania
G
uate
mal
a G
hana
G
ambi
a C
zech
Rep
ublic
P
arag
uay
Aze
rbai
jan
Bol
ivia
Ire
land
La
tvia
S
love
nia
Cam
eroo
n C
roat
ia
Alg
eria
Li
thua
nia
Can
ada
Eth
iopi
a K
enya
S
audi
Ara
bia
Thai
land
Jo
rdan
C
ôte
d´Iv
oire
Li
bya
Ukr
aine
Zi
mba
bwe
Bot
swan
a Ta
iwan
M
ozam
biqu
e A
ustri
a H
unga
ry
Sin
gapo
re
El S
alva
dor
Nic
arag
ua
Fran
ce
Sw
eden
D
enm
ark
New
Zea
land
E
gypt
C
hile
M
yanm
ar
Per
u B
ulga
ria
Mal
i S
eneg
al
Vene
zuel
a B
elgi
um
Jam
aica
M
exic
o R
ussi
a S
udan
G
reec
e K
uwai
t U
zbek
ista
n C
uba
Isra
el
Om
an
Uni
ted
Kin
gdom
Ita
ly
Transparency International Corruption Perceptions Index, change 2003-2010
Ease of Doing Business
0
20
40
60
80
100
120
140
160
180
Ease o
f Doin
g Bus
iness
Ran
k
Startin
g a B
usine
ss
Dealin
g with
Lice
nses
Regist
ering
Pro
perty
Getting
Cre
dit
Protec
ting I
nves
tors
Paying
Taxe
s
Trad
ing A
cross
Bor
ders
Enforci
ng C
ontra
cts
Closing
a Bus
iness
GDP per capita, % of the World
0
10
20
30
40
50
60
70
2003 2004 2005 2006 2007 2008 2009 2010
Georgia
Indonesia
FDI to Georgia, mln $
92 81 105
220
368
273
795
1164
1278
464
603 637
0
200
400
600
800
1000
1200
1400
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
FDI, % of the GDP
0
2
4
6
8
10
12
14
16
18
2004 2005 2006 2007 2008 2009 2010
Georgia
Indonesia
Small government
de-bureaucratization
privatization liberalization
Ministry of Internal Affairs
“Everything
is sold,
except honor.”
Privatization checklistsea ports done
main generating and distribution electricity
assets done
gas distribution done
agriculture land done
main airports ongoing
railway ongoing
natural resources and forests through tradable
rightsongoing
Quantity and quality
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
400.0
450.0
500.0
0
1000
2000
3000
4000
5000
6000
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
#
$
Liberalization
0
20
40
60
80
100
120
140
Ease of Doing
Business Rank
Starting a Business
Dealing with Licenses
Registering Property
Getting Credit
Protecting Investors Paying Taxes
Trading Across Borders
Enforcing Contracts
Closing a Business
2007
20092011
2012
Liberalization
business and tax registration merged into
one simple process
just one day
no paid-in-capital requirements
Liberalization
number of licenses reduced by 85%
‘one-stop-shop’ licensing principle
‘silence-is-consent’ rule
Liberalization
Simple contractual relations between
employers and employees
No restrictions of the duration of term contracts and the
number of overtime hours
Liberalization
Reduced number of steps and days for registering
property
Liberalization
Simplification
Better enforcement
Decrease in number and rates
Liberalization
No quotas on import/export
Custom tariff = 0.3% of GDP
Simplified export/import procedures
Liberalization
Other reforms
• Healthcare reform
• Financial reform
• Educational reform
• Rule of law reform
• ...
“We appreciate the model of democracy
and transparency that they’ve been
setting not just for their own country
but also for the region as a whole.”
Georgia did; others can follow.
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