Friday, July 27, 2007, #142 (1409)

100 New Farms to Revive the Agricultural Sector, Government Says
By M. Alkhazashvili
(Translated by Diana Dundua)   

Prime Minister Zurab Noghaideli, in Kakheti province July 25, pitched a program to create 100 new agricultural businesses which, he said, should create 100 000 jobs and up the country’s agricultural export capacity.

The news agency Regnum said the program would dole out land to investors who would then be obliged to setup businesses and infrastructure. There are 100 lots of land made available, each 400–500 hectares.

“Investors are responsible for establishing a business within a year,” Noghaideli said.

Investors will be able to purchase land with an initial payment of 20 percent of the total value.

The prime minister said a draft law for the program is ready for parliament to consider.

President Mikheil Saakashvili, speaking with the prime minister, underlined the importance of the project.
 
“The key aim of the Georgian government and all of Georgia is to create plenty of jobs. We expect more than 100 000 new jobs as a result of this project,” Saakashvili said.

Many measures have been taken, the president said, to encourage agriculture in Georgia: taxes have been lowered on importing farm equipment, tariffs are in place on some foreign agricultural goods, and workforces are being trained.

Saakashvili estimated that in the last three years, GEL 600–700 million has been invested by the state and private businesses in the country’s agricultural sector.

The program was not greeted so enthusiastically in all corners.

Opposition politicians accused the government of harming local farmers, and criticized the elimination of customs tax on some foreign foods.

“Most people [outside Tbilisi] are mainly employed in the agricultural sector. Making the agrarian sector uncompetitive will cost jobs,” says the parliamentary leader of the oppositional Industrialists party, MP Zurab Tkemaladze, as quoted by the newspaper Rezonansi.

Some analysts argue that just reworking tariffs on farm goods won’t be enough for local businesses.

“The problem for local entrepreneurs is the expensive farm equipment, fuel, labor, and organizational management. These difficulties are important and troublesome. Georgia doesn’t have enough resources to protect its market. Georgia should have a totally free market policy—that’s the only way out,” argues economic analyst Emzar Jgerenaia to Rezonansi.



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