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

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zech

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Cam

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Can

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Thai

land

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aine

Zi

mba

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Fran

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Sw

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gypt

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u B

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aica

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uba

Isra

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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.

Thank you!

lburakova@gmail.com