Informal Governance and Corruption – Transcending the Principal Agent and Collective Action Paradigms Georgia Country Report Alexander Kupatadze | July 2018 Basel Institute on Governance Steinenring 60 | 4051 Basel, Switzerland | +41 61 205 55 11
[email protected] | www.baselgovernance.org BASEL INSTITUTE ON GOVERNANCE This research has been funded by the UK government's Department for International Development (DFID) and the British Academy through the British Academy/DFID Anti-Corruption Evidence Programme. However, the views expressed do not necessarily reflect those of the British Academy or DFID. Dr Alexander Kupatadze, King's College London, Strand, London WC2R 2LS, United Kingdom,
[email protected] 1 BASEL INSTITUTE ON GOVERNANCE Table of Contents Table of Contents 2 1 Introduction 3 1.1 Informal Governance and Corruption: Rationale and project background 3 1.2 Conceptual approach and methods 4 1.3 Informal governance in Georgia: clean public services coexist with collusive practices of elites 5 2 The Reform of the Georgian Public Registry 7 3 Evolution of state-business relations in Georgia: 9 3.1 The aftermath of the Rose Revolution: developmental patrimonialism or neoliberal economy? 10 3.2 Post-UNM era: continuity or change? 13 4 Ivanishvili and the personalised levers of informal power 15 4.1 Managing the blurred public/private divide: co-optation and control practices of the GD 16 4.2 Nepotism, cronyism and appointments in state bureaucracy: 19 5 Elections and informality in Georgia 20 6 Conclusions 22