Pros and contras of investment climate in Georgia
By Messenger Staff
Wednesday, November 16Attraction of foreign investments are of major importance for any country and so much efforts are put to improve investment climate here in Georgia. There are different indicators taken into consideration by potential investors. These are political uncertainty, macro economic instability, taxation, legislative regulations, corruption and other factors.
In 2007 Georgia was among the top five in the list of the reformatory countries, however same year in the autumn Georgia entered the political crisis which definitely negatively influenced upon the entire position of the country including stability and accordingly investment climate.
The following year Russia launched military attack on Georgia and there started financial crisis throughout the world. All these facts have negative impact on situation of Georgia. Thou Georgian authorities claim that it has the best investment environment in Georgia and corruption is defeated in the country, there still is a certain level of corruption and bureaucratic obstacles. There is much still needed to be done for perfection of taxation code. There are created much problems by often changes introduced into taxation code. Besides there are certain negative factors deteriorating investment climate. Uncertainty created by the representatives of ruling power which hinders the equal development and healthy competition. Despite those problems however Georgia possesses certain positive potential, such as cheap tourism resources, mineral waters, cheap manpower, possibility for foreigners to participate in privatization process and so on.