Investment policy shortcomings
Tuesday, January 25The Georgian leadership is consistently making great efforts to attract more foreign direct investment into the country. The President, ministers and Georgiaís ambassadors work intensively in this regard promoting Georgia everywhere as a leading reformist country with liberal legislation. Despite all these efforts investment in the country decreased dramatically in 2010.
2011 started with Prime Minister Gilauriís visit to Arab states to actively market the country. Economic analysts however think that whatever the promotion of Georgia, potential investors have enough money to carry out their own research anywhere. Thus in reality the situation is not actually as positive as the Georgian government wants it to be. 20% of the countryís territory is occupied by an enemy, the purchasing power of the population has been decreasing, economic legislation has changed and is full of amendments and different interpretations. There is no feeling of economic stability among businessmen, and even more distressing is that there is no trust in the court system. Therefore property is not protected accordingly. These details, together with others, create uncertainty in the country, which of course it is not the best way to attract investors.