The Ministry of Economy and Sustainable Development of

Georgia

GEORGIA IN 12 INTERNATIONAL 20 19 RATINGS

Publication is based on the rankings and repots of International Organizations and Institutions:

o World Bank - „Doing Business

o - „Global Competitiveness Index“

o Fraser Institute - „Economic Freedom of the World“

o Heritage Foundation - „Index of Economic Freedom“

o World Bank - „Worldwide Governance Indicators“

o International Budge Partnership - „Open Budget Index“

o Transparency International - „Corruption Perception Index“

o - „Open Government Index“

o World Justice Project - „Rule of Law Index“

o Berterlsmann Stiftung - „Bertelsmann Transformation Index“

o The Business School for the World - „Global Innovation Index“

o United Nations - „E-government Development Survey“

o Reporters without Borders - „The World

Contents

INTRODUCTION ...... 4 EFFICIENT AND TRANSPARENT GOVERNMENT ...... 7 PROPERTY RIGHTS ...... 13 DOING BUSINESS ...... 15 ECONOMIC ENVIRONMENT...... 19 FREEDOM FROM CORRUPTION ...... 21 MARKET EFFICIENCY ...... 24 RULE OF LAW ...... 26 LAW ENFORCEMENT ...... 28 INNOVATION ...... 29 MEDIA FREEDOM ...... 31

INTRODUCTION

In 2012-2019 the Government of Georgia has implemented systematic reforms. Georgia has achieved significant improvements in the field of human rights, government transparency, freedom from corruption, effective governance, market efficiency and favorable business environment.

Successful and effective implementation of the structural reforms caused remarkable improvement of Georgia’s position in various international rankings.

As a result, in 2012-2019, Georgia gained remarkable achievements in international rankings and takes the leading position amongst the countries of the world and regions.

World Bank „Doing Business“

According to “Doing Business” by World Bank, in 2019 Georgia achieved remarkable achievement in its history and is ranked 6th position amongst 190 countries with the score of 83.28.

Fraser Institute „Economic Freedom of the World“

According to “Economic Freedom of the World 2018” by Fraser Institute, Georgia takes 7th position with the score of 8.02 amongst 162 countries.

Transparency Internatonal „Corruption Perception Index”

According to “The Corruption perception Index 2019” by Transparency International, Georgia achieved its best result in the ranking and rakes 41st position amongst 180 economies. The ranking score of Georgia amounted to 58. Georgia is on the first position amongst the 19 countries of the Eastern Europe and Central Asia (EECA).

Heritage Foundation „Index of Economic Freedom“

According to “Index of Economic Freedom 2019” by Heritage Foundation, Georgia takes 16th position amongst 180 countries with the score of 75.9 and remains in the Mostly Free Group. In 2019, Georgia is ranked 8th position out of 44 countries in the Europe Region amongst 44 countries. World Economic Forum „Global Competitiveness Index“

According to “The Global Competitiveness Index 2018” by World Economic Forum, Georgia is ranked 66th position with the score of 60.9 amongst 140 countries.

World Justice Project „Rule of Law Index“

According to “Rule of Law Index 2019” by World Justice Project, Georgia takes 41st position with the score of 0.61.

International Budget Partnership “Open Budget index”

According to “Open Budget Index” by International Budget Partnership, Georgia is ranked 5th position with the score of 82 among 102 countries.

Bertelsmann Stiftung „Bertelsmann Transformation Index“

According to “Bertelsmann Transformation Index 2018”, Georgia takes 42nd position among 129 countries.

European Chamber „Best European Countries for business 2019“

According to “Best European Countries for business 2019” by European Chamber, Georgia takes 16th position amongst 46 European countries with the score of 71 score.

World Economic Forum „Inclusive Development Index“

According to “Inclusive Development Index” by World Economic Forum in 2018 Georgia is ranked 32th position with the score of 3.99 among developing 74 countries.

World Bank „Human Capital Index“

According to “Human Capital Index 2018” by World Bank, Georgia takes 60th position among 157 countries with the score of 0.61.

World justice project „Open Governmetn Index“

According to the World Justice Project “Open Government Index 2015”, Georgia takes 29th position amongst 102 countries with the score of 0.61 and the 1st position in Eastern Europe and Central Asia Region. Reporters without Borders “the World Press Freedom Index”

In “the World Press Freedom Index” 2019 by Reporters without Borders, Georgia is ranked 60th position among 180 countries.

Doing Business Index of Economic Freedom Economic Freedom of the World

Corruption Perception Index Global Competitiveness Index Rule of Law

Open Budget Index Inclusive Development Index Global Innovation Index

Bertelsmann Transformation Index

EFFICIENT AND TRANSPARENT GOVERNMENT

Positive Evaluation of efficiency and transparency of Georgian Government by the international ranking institutions is of outmost importance, which is evidenced in the improved positions of Georgia in the global rankings in the following fields, such as government size and effectiveness, budget transparency, efficiency of legal framework and etc.

o “Global Competitiveness Index” 2018 by World Economic Forum positively assesses Budget Transparency in Georgia. In 2018 Georgia is ranked 27th place with the score of 73.1;

o According to “Global Competitiveness Index”, in the component Efficiency of Legal Framework in Challenging Regulations Georgia’s position has improved by 55 positions in the last 6 years and now Georgia is on 51st place;

o Based on the assessment of “Global Competitiveness Index”, in 2018 Georgia takes 11th place in the component of Conflict of Interest Regulation with the score of 80.

It should be mentioned that the ranking is based on the survey among the citizens and representatives from the business sector and not from the government institutions. http://reports.weforum.org/global-competitiveness-report-2018/

o The report of 2018 on Economic Freedom of the World by Fraser Institute gives the positive evaluation of the Government Enterprises and Investment and ranks Georgia with the 31st position in 2018, which are 64 positions higher compared to 2012;

o In the component Government Size by Economic Freedom of the World Georgia improved its position by 9 positions and takes 35th place;

o According to Economic freedom of the world 2018 ranking by Fraser institute in the Regulation category, compared to 2012, Georgia improved its positions by 12 positions and advanced from 20th place to 8th. http://www.freetheworld.com/ o According to “Worldwide Governance Indicators” 2018 of the World Bank Group, compared to 2012 in the component of Regulatory Quality Georgia’s positions have improved by 16 positions to advance the country from 55th place to 39th;

o According to “Worldwide Governance Indicators” 2018 by World Bank Group, compared to 2012, in the component of Government Effectiveness Georgia advanced from 64th place to 59th.

Each indicator of the ranking is based on the data collected from citizens, entrepreneurs, representatives of public and private sectors, non•governmental organizations as well as on the views and opinions of the experts of the field. http://info.worldbank.org/governance/wgi

Existing institutional system in Georgia is positively evaluated according to “Global Innovation Index” 2018 by the Business School for the World (INSEAD). Compared to 2012, in 2018 in the indicator of Institutions Georgia improved its positions by 12 positions and takes 39th place amongst 126 countries. Georgia has improved its positions in the following components of the indicator of Institutions:

o According to “Global Innovation Index” in the Government Effectiveness category Georgia advanced from 52nd place in 2012 to 43th in 2018 (up by 9 positions);

o In Regulatory Quality component Georgia is up by 13 positions to advance from 45th place to 32nd in 2018.

“Global Innovation Index” assessment is based on the reports of the world leading ranking companies, on the data and quantitative indicators of international organizations. Part of the country’s evaluation is based on annual Executive opinion Survey by the experts of the organization. https://www.globalinnovationindex.org

o According to the “Open Budget Index” by International Budget Partnership, compared to 2012, Georgia improved its position by 28 places and in 2017 Georgia is ranked 5th with the score of 82 among 102 countries. In 2012, Georgia was on the 33rd position with the score of 55. http://www.intemationalbudget.org/opening-budgets/ According to the World Justice Project 2015 Open Government Index, Georgia takes 29th position amongst 102 countries. Georgia’s positions in the components of the open government index are the followings:

o “Open Governance Index” 2015 by World Justice Project (WJP) gave the 16th position (0.70 score) to Georgia in the component of Right to Information in 2015;

o In the component of Civic Participation by “Open Governance Index” Georgia is 34th position;

o According to “Open Governance Index”, in the component of publicized Law and Government Data Georgia is ranked 36th position. http://worldjusticeproject.org/open-government-index

o According to “Rule of Law Index” 2019 by World Justice Project, in the Open Government category of the ranking Georgia improved its position by 15 positions and claimed 39th place in 2019.

The World Justice Project Rule of Law Index measures countries’ rule of law performance across eight factors, such as Constraints on Government Powers, Absence of Corruption, Open Government, Fundamental Rights, Order and Security, Regulatory Enforcement, Civil Justice and Criminal Justice. The assessment of the index is based on the household and expert surveys. https://worldjusticeproject.org

The Bertelsmann Stiftung’s Transformation Index (BTI) analyzes and evaluates whether and how developing countries and countries in transition are steering social change toward democracy and a market economy. The BTI studies transformation processes and political management of countries’ into two indices: the Status Index and the Governance Index.

 The Status Index, with its two analytic dimensions of political and economic transformation, identifies where each of the 129 countries stand on their path toward democracy under the rule of law and a social market economy.

According to Status index, in 2018 Georgia improved its position by 15 positions compared to 2012 and advanced from 57th place to 42nd amongst 129 countries. In the indicator of Political transformation of Status Index Georgia is ranked 37th place (up by 20 positions).

 Focusing on the quality of governance, the Governance Index assesses how decision-makers steer political processes and implemented reforms in the country, which gives the information regarding successes and failure of the states.

According to Governance index, compared to 2012 Georgia is up by 21 positions and in 2018 takes 33rd place. Georgia has improved its positions in the following indicators and components of the Bertelsmann Transformation Index:

o In the component of Basic Administration, in 2018 Georgia improved its position by 31 positions compared to the data of 2012 and is ranked 40th place in 2018;

o In the component of Implementation, compared to 2012, Georgia is up by 6 positions and advanced from 34th place to 28th in 2018;

o In Resource Efficiency indicator, in 2018 Georgia is ranked 18th place, instead of 30th place in 2012;

o In Policy Coordination component, in 2018 Georgia is 15th position, instead of 17th place in 2012;

o In the indicator of Consensus-Building, Georgia compared to 2012, improved its position by 18 positions and takes 36th place in 2018;

o In the component of the rating Civil Society Participation Georgia is up by 37 positions and advanced from 48th to 11th place in 2018;

o In the indicator of International Cooperation Georgia improved its position by 29 positions and advanced in 2012 from 72nd place to 43th in 2018;

o In the component of Credibility, in 2018 Georgia is ranked 39th place instead of 52nd in 2012;

o In the component of Regional Cooperation, compared to 2012, in 2018 Georgia is up by 62 positions and advanced from 91st position to 29th place in 2018;

o In the indicator of Stability of Democratic Institutions Georgia improved its position by 22 positions and advanced from 46th place to 24th in 2018; o In the component of Performance of Democratic Institutions Georgia is up by 25 positions and takes 20th place in 2018.

The Bertelsmann Stiftung’s Transformation Index is based on qualitative expert survey. It is designed to minimize subjective factors as far as possible throughout the process. The process of country assessment has both a qualitative and quantitative component, in each case performed by two country experts. As a rule, one foreign and one local expert are involved in the evaluation process; this ensures that both external and internal perspectives are taken into account in the course of assessment and helps counteract subjective influence. Experts from leading research institutions around the world contribute to the production of the country reports. https://www.bti-project.org/en/data/

2012 2017 2018

5 8 11 11 18 20 24 27 28 29 31 32 35 36 20 39 39 43 43 30 51 33 34 59 44 45 45 48 46 52 55 54 54 64 72

91 95

106

Regulation

Openbudget

Implementation

Government size

Regulatoryquality Regulatoryquality

Opengovernment

Resourceefficiency

Consensus-building

BudgetTransparency

Regional cooperation

Civilsociety participation

International cooperation

Government effectiveness Government effectiveness

Efficiencyof Legal

Conflict Interest of Regulation

Stabilityof democratic institutions

FrameworkChallengingin Regulation

Performanceof democratic institutions Government enterprisesand investment Global Economic Worldwide Global Open Bertelsmann Rule Competitiveness Freedom Governance Innovarion Budget Transformation of Law Index of the World Indicators Index Index Index Index

PROPERTY RIGHTS

Since 2012 one of the most important challenges to the Georgian government was to protect the property rights, which was massively violated under the previous government. In this regard, the government took significant reforms: Special institutions were established in order to study the legal violations of previous years. It should be noted that the de-politicization of the national judicial system played an important role in this process.

It is important that the reasonability of the measures implemented by the Georgian Government towards the protection of property were confirmed by the international rankings.

o According to the Global Competitiveness Index 2018 by the World Economic Forum, compared to 2012, Property Rights indicator in Georgia is improved by 83 positions and advanced from 131st place to 48th in 2018.

It is important that the methodology of this rating is based on the surveys among the representatives of private sector. http://reports.weforum.org/global-competitiveness-report-2018/

o According to the report of 2018 on Economic Freedom of the World by Fraser Institute in the component of the Property Rights Georgia's position in 2018 was improved by 69 positions and advanced from 117th place to 48th (compared to 2012).

The Index of Economic Freedom of the World measures the country's exchange rate and the quality of institutions that determine the country's economic freedom. Annually processed data is based upon an objective, third party information as well as the results of the independent research from 162 countries. The International Monetary Fund, World Bank and World Economic Forum provided the relevant data. https://www.fraserinstitute.org/studies/economic-freedom

o According to “Index of Economic Freedom 2019” by Heritage Foundation, in Property Rights component Georgia is up by 27 positions compared to 2012 and is ranked 45th place in 2019. https://www.heritage.org/index/

2012 2018 2019

48 48 45

72

117

131

Property Rights Property Rights Property Rights Global Competitiveness Economic Freedom of the Index of Economic Freedom Index World

Georgia has achieved significant success in the world in terms of the Ease of Doing Business, which is positively reflected in the different ratings. This is another proof that there is the lack of bureaucratic pressure together with the business-friendly environment in the country.

According to “Doing Business 2019” by World Bank, Georgia takes 6th position amongst 190 countries. Compared to 2012, in 2019 Georgia's position has improved by 6 positions and during the last 7 years Georgia’s score improved by 3.79 points. Compared to 2012, in 2018 Georgia’s position has improved in the following indicators of Ease of Doing Business:

o Starting a Business Indicator was improved by 5 positions and advanced from 7th to 2nd place;

o Protecting Minority Investor indicator is up by 15 positions and Georgia is ranked 2nd place instead of 17th;

o Enforcing Contracts indicator was improved by 31 positions which moved Georgia th th to 8 place from 39 ; •

o Paying Taxes indicator was improved by 29 positions which took Georgia to 16th place from 45th;

o Getting Electricity indicator is; up by 49 positions and in 2018 Georgia takes 39th place instead of 88th in 2012;

o Trading Across Borders Indicator was improved by 5 positons and Georgia is ranked 43rd place instead of 47th;

In 2019, Georgia is in the list of top ten countries amongst 190 countries in the following indicators: Starting a Business (2nd position), Protecting Minority Investors (2nd position), Registering Property (4th position) and Enforcing Contract (8th position). http://www.doingbusiness.org/

According to the Economic Freedom of the World 2018 ranking from the Fraser Institute, Georgia is up by 6 positions and takes 7th position, as opposed to 13th in 2012. o According to Economic Freedom of the World 2018 by Fraser Institute, in Licensing Restrictions component, Georgia is ranked 5th place instead of 8th in 2012;

o In the indicator of the Administrative Requirements, Georgia, compared to 2012, improved its position by 1 position and takes 9th place in 2018;

o In Legal Enforcement of Contracts Georgia is up by 5 positions and takes 10th place, compared to 2012;

o In Bureaucracy Costs by Economic Freedom of the World 2018 ranking, Georgia is up by 7 positions and advanced from 30th place in 2012 to 23rd in 2018;

o According to Economic Freedom of the World 2018 ranking by Fraser Institute, in the Private Sector Credit category, Georgia, compared to 2012, improved its positions from 41st place by 8 positions since 2012 to advance to 33th place. https://www.fraserinstitute.org/studies/economic-freedom

According to “Index of Economic Freedom 2019” by Heritage Foundation, Georgia improved its positions by 18 steps and advanced from 34th place in 2012 to 16th position amongst 180 countries with the status of “Moderately Free”. During recent 7 years, Georgia’s ranking score improved by 6.5 points and amounted to 75.9 score.

In 2019, Georgia is ranked 8th position out of 44 countries in the Europe Region amongst 44 countries. In 2012, Georgia took 16th position in the Europe Region.

Compared to 2012, in 2019 Georgia takes leading positons for the ease of doing business:

o Business Freedom – from the 23rd position to the 13th place (improvement by 10 positions);

o Investment Freedom – from the 36th position to the 24th place (improvement by 12 positions); http://www.heritage.org/index/

o According to the Global Competitiveness Index 2018 of the World Economic Forum, in the Shareholder Governance component Georgia is ranked 3rd place amongst 140 countries;

o In Insolvency Regulatory Framework component Georgia takes 46th place with the score of 68.8. http://reports.weforum.org/global-competitiveness-index/

“Global innovation Index 2018” by INSEAD positively assesses Investment Environment in the country. In Investment category, Georgia is up by 15 positions and in 2018 takes 21st place instead of 36th in 2012. In 2018, Georgia’s position has improved significantly in the following components of Investment category:

o In Ease of protecting Minority Investors Georgia is up by 18 positions and takes 2nd place in 2018 instead of 20th in 2012;

o In the Ease of Starting a Business - in 2018 Georgia takes 4th position up from 8th in 2012;

o Based on the assessment of “Global Innovation Index 2018” by INSEAD, during last 6 years in Ease of Getting Credit component, Georgia is up by 10 positions and is ranked 11th place. https://www.globalinnovationindex.org/Home

2012 2018 2019 2 2 2 5 3 4 8 9 10 13 11 16 7 24 8 10 23 8 15 17 33 20 21 39 23 43 30 46 36 39 41 45 47

88

Paying Taxes Paying

Getting Electricity Getting

Business Freedom Business

Bureaucracy Costs Bureaucracy

Starting a Business a Starting

Enforcing Contracts Enforcing

Investmetn Freedom Investmetn

Private Sector Credit Sector Private

Licensing Restrictions Licensing

Ease of Getting Credit Getting of Ease

Trading Across Borders Across Trading

Shareholder Governance Shareholder

Ease of Starting a Business a Starting of Ease

Protecting Minority Investors Minority Protecting

Administrative Requirements Administrative

Legal Enforcement of Contracts of Enforcement Legal

Insolvency Regulatory Framework Regulatory Insolvency ease of Protecting Minority investors Minority Protecting of ease Doing Business Index of Economic Freedom of the Global Global Economic World Competitiveness Innovation Index Freedom Index

Bertersmann Stiftung’s Transforamtion Index (BTI) positively assesses economic performance of the country. In 2018, in the dimension of Economic Transformation of Status Index Georgia improved its position by 75 positions compared to 2012 and advanced from 122nd place to 47nd amongst129 countries.

Georgia’s position has improved in the following indicators and components of Economic Transformation dimension:

o Macrostability component was improved by 18 positions during last 6 years and in 2018 Georgia takes 31st place;

o Compared to 2012, Georgia is up by 58 positions in Anti-inflation/Forex Policy component and takes 32nd place in 2018;

o In 2018, Currency and Price Stability indicator was improved by 41 positions and Georgia is ranked 38th place;

o Compared to 2012, Georgia has improved its position in Economic Performance indicator by 52 positions and in 2018 takes 41st place;

o Output Strength was improved by 52 positions and in 2018 Georgia takes 41st position up from 93rd in 2012;

o In Level of Socioeconomic Development Indicator Georgia takes 58th place instead of 60th place in 2012. https://www.bti-project.org/en/data/

2012 2018

31 32 38 41 41 37

58

60

79

90 93 93

Macrostability Anti-inflation/Forex Currency and Economic Output Strength level of Policy price Stability Performance Socioeconomic Development Bertelsmann Transformation Index

FREEDOM FROM CORRUPTION

One of the most important indicators of the effectiveness of the state institutions is to control corruption and establish corruption-free bureaucratic institutions.

Since 2012, the undertaken steps of the government against the corruption, including the new anti-corruption strategy document, the effective implementation of the international recommendations, the significant success achieved within the frames of the Open Government Partnership initiative, improved whistleblower protection standards, the changes in public procurement and the innovative approaches in delivering the public services, judicial reform, institutional reform of the prosecutor's office, as well as openness and transparency of state institutions led to the significant results in the achievement of an improved rating indices, such as:

o According to Transparency International’s “Corruption Perception Index” 2019, Georgia claimed 41st place with the score of 58 among 180 countries of the world (up by 10 positions to advance from 51st place). In 2019 Georgia takes the 1st position in region – Eastern Europe&Central Asia (amongst 19 countries)

“The Corruption Perceptions Index” by Transparency International measures the perceived levels of public sector corruption of the country. It is a composite index, a combination of different international surveys and assessments of corruption, collected by a variety of reputable institutions. The index draws on 13 surveys from independent institutions specializing in governance and business climate analysis covering expert assessments and views of businesspeople. http://www.transparency.org/news/feature/corruption_perceptions_index_2016

o Index of Economic Freedom by Heritage Foundation positively assesses Government Integrity (freedom from corruption). Compared to 2012, Georgia’s positions in 2019 have improved by 38 positions to advance the country from 69th place to 31st. http://www.heritage.org/index/

o According to “Global Competitiveness Index” 2018 by World Economic Forum, in the Incidence of Corruption component Georgia takes 41st position with the score of 56 among 140 countries. http://reports.weforum.org/global-competitiveness-report-2018/

o According to the World Bank’s Worldwide Governance Indicators, in the component of Control of Corruption, compared to 2012, Georgia improved by 8.68 points in 2018 to make up 77.40 score. In 2018, Georgia was ranked 48th, up by19 positions compared to 2012 (67th place with 68.72 points in 2012). http://info.worldbank.org/governance/wgi/index.aspx#home

o In the component of the World Justice Project’s Rule of Law Index, in 2019 Georgia holds 24th place among 126 countries in the Absence of Corruption category, maintaining the leading position for the last few years. https://worldjusticeproject.org

o According to Bertelsmann Stiftung’s Transformation Index 2018, in Anti-Corruption Policy component Georgia takes 14th place amongst 129 countries instead of 22nd place in 2012. https://www.bti-project.org/en/home/

2012 2017 2018 2019

14

24 31 22 41 41 48

51

69 67

Corrutpion Perception Government Integrity Incidence of Control of Corruption Absence of Corruption Anti-Corruption Policy Index Corruption Transparency Index of Economic Global Worldwide Rule of Law Index Bertelsmann International Freedom Competitiveness Governance Transforamtion Index Index Indicators

“Global Competitiveness Index” 2018 by World Economic Forum positively assesses efficiency of Product Market. Since 2012 Georgia has improved its position by 40 places and advanced from 82nd to 42nd place. Georgia improved its position in the following components of “Global Competitiveness Index”:

o In the Trade Tariffs category of the World Economic Forum’s 2018 Global Competitiveness Report, Georgia has improved its position from 33th place by 28 positions since 2012 to advance to 5th place in 2018;

o In 2018, in the component of Services Trade Openness Georgia is ranked 6th position with the score of 88.5 score;

o In Distortive Effect of Taxes and Subsidies on Competition Georgia takes 27th position with the score of 57.1;

o Imports as a Percentage of GDP was improved by 15 positions to advance from 45th place in 2012 to 30th in 2018. http://reports.weforum.org/global-competitiveness-report-2018/

o According to Bertelsmann Transformation Index, in the indicator of Market Economy Status Georgia is up by 17 positions and takes 47th place in 2018 instead of 64th place in 2012;

o Component of Market-based Competition was improved by 16 positions compared to 2012 and in 2018, Georgia is ranked 23th place instead of 39th in 2012. https://www.bti-project.org/en/home/

2012 2018

5 6

23 27 30

33 47 39 45

64

Trade Tariffs Services trade Distortive effect Imports % GDP Market Economy Market-based openness of taxes and Competition subsidies on competition Global Competitiveness Index Bertelsmann Transformation Index

RULE OF LAW

According to “Rule of Law Index” 2019 by World Justice Project, Georgia takes 41st position among 126 countries. Georgia is ranked 1st in Eastern Europe and Central Asia region (13 countries).

Compared to 2012, in 2019 Georgia improved its positions in the following components of rule of law index:

o Fundamental Rights - up by 1 position and takes 48th position;

o Constraints on Government Powers - Georgia is up by 9 positions and takes 57th position. https://worldjusticeproject.org

o According to “Global Innovation Index” by INSEAD, in Rule of Law component Georgia improved its positions from 69th place by 19 positions since 2012 to advance to 50th place in 2018. https://www.globalinnovationindex.org/Home

o According to Bertelsmann Stiftung’s Transformation Index 2018, in Rule of Law indicator, compared to 2012, Georgia is up by 10 positions and takes 28th place in 2018;

o Compared to 2012, Independent Judiciary component was improved by 10 positions and Georgia is ranked 21st place in 2018;

o Civil Rights component Georgia is up by 20 positions and advanced from 44th place in 2012 to 24th place in 2018;

o In the component of Separation of Powers Georgia takes 42nd place instead of 44th in 2012. https://www.bti-project.org/en/home/

2012 2018

21 24 28

31 42 48 50 38 57 44 44 49

66 69

Constraints on Fundamental Rule of Law Rule of Law Independent Civil Rights Sepretaion of Government Rights Judiciary Powers Powers Rule of Law Index Global Bertelsmann Transformation Index Innovation Index

LAW ENFORCEMENT

As a result of the Georgian government's law enforcement system reform, the criminal situation in the regard of business protection has significantly improved. This was positively reflected in the lower costs for local businesses as well as the attitudes of potential investors.

o According to Global Competitiveness Index 2018, since 2012 in the component of Organized Crime Georgia’s position improved by 51 positions to advance the country from 75th to 24th place in 2018. http://reports.weforum.org/global-competitiveness-report-2018/

o According to Economic Freedom of the World 2018, in Business Costs of Crime component, compared to 2012, Georgia is up by 23 positions and takes 31st place in 2018. https://www.fraserinstitute.org/studies/economic-freedom

2012 2018

24 31

54

75

Organized Crime Business Costs of Crime Global Competitiveness Index Economic Freedom of the World

INNOVATION

The Global Innovation Index (GII) measures the innovation performance of 126 countries. Its 80 indicators explore a broad vision of innovation, including political environment, education, infrastructure and business sophistication.

o According to “Global Innovation Index” 2018 by INSEAD, since 2012 Georgia has improved its position by 12 places and advanced from 71st to 59th place in 2018. https://www.globalinnovationindex.org

The E-Government Development Index presents the state of E-Government Development of the United Nations Member States. Along with an assessment of the website development patterns in a country, the E-Government Development index incorporates the access characteristics, such as the infrastructure and educational levels, to reflect how a country is using information technologies to promote access and inclusion of its people. The EGDI is a composite measure of three important dimensions of e-government, namely: provision of online services, telecommunication connectivity and human capacity.

o From 2012 to 2018, Georgia’s positions improved by 12 positions to advance the country from 72nd to 60th place. https://publicadministration.un.org

o According to Bertelsmann Stiftung’s Transformation Index 2018, in the component of Education Policy/R&D Georgia is up by 20 positions and in 2018 takes 23rd place. https://www.bti-project.org/en/home/

The National Cyber Security Index by E-governance Academy (eGA) is a global index, which measures the preparedness of countries to prevent cyber threats and manage cyber incidents. o According to “The National Cyber Security Index” 2019 by E-governance Academy (eGA) Georgia is ranked 21st position among 130 most advanced and developing economies of the world in terms of national cyber security. https://ncsi.ega.ee/ncsi-index/

2012 2018

23 21

43 59 60

71 72

Global Innovation Index E-Government Education Policy/R&D The National Cyber Development Security Index INSEAD The United Nations Bertelsmann Stiftung’s by E-governance Transformation Index Academy (EGA)

MEDIA FREEDOM

o According to “Global Competitiveness Index” 2018 by World Economic Forum, in the component of Freedom of the Press Georgia takes 49th position with the score of 72.7 amongst 140 countries. http://reports.weforum.org/global-competitiveness-report-2018/

o According to “The World Press Freedom Index” 2019 by Reporters without Borders, Compared to 2012, Georgia improved its positions by 44 places and advanced from 104th to 60th place in 2019 amongst 180 countries of the world. https://rsf.org/en/ranking/2019

2012 2018

49 60

104

Freedom of the Press The World Press Freedom Index World Economic Forum Reporters without Borders