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Former economy minister: Investment not creating jobs

By M. Alkhazashvili
(Translated by Diana Dundua)
Friday, May 16
In its campaign to rid Georgia of poverty, the government has promised that increased investment in the country will lead to a significant decrease in unemployment.

Prime Minister Lado Gurgenidze has said that the government’s target of USD 10 billion in foreign direct investment over the next five years will bring 200 000 new jobs.

However, while the government puts foreign investment at over USD 500 million so far this year, former economy minister and MP Lado Papava says that this is not translating into jobs for ordinary Georgians.

“Investment in Georgia has mainly been in real estate. Sale of property only means that the former owner is replaced, it does not mean any change in the economy,” the newspaper Rezonansi quotes him as saying.

“Investment in the real sector is not much. Thus if the real economic sector is not increased, new jobs will not be created,” he adds.