Aid for Trade Needs Assessment – Georgia Trade and Human Development April 2011 United Nations Development Programme The Aid for Trade agenda is one of the most important development-related outcomes of the 2005 WTO Ministerial Conference in Hong Kong. It targets developing countries through strengthening their productive capacities, trade-related infrastructures and ability to compete in regional and global markets. Trade plays an important role in development, although the relationship between trade and human development is not automatic. In order to be inclusive, trade has to be set in a human devel- opment framework. It needs to be conceived as a tool to expand the abilities and choices of people. The Aid for Trade initiative covers the following categories: • Trade policies and regulations; • trade development; • developing productive capacities; • trade related adjustment; • other trade-related needs. UNDP's regional Aid for Trade project ‘Wider Europe: Aid for Trade for Central Asia, South Caucasus and Western CIS’, financed in the context of Finland's Wider Europe Initiative, focuses on the identification of capacity gaps and technical assistance needs both at the national and sub-regional level in Central Asia, the South Caucasus and Western CIS and support of economic development in the areas located along the selected transport corridors, helping small entrepreneurs to gain from new trade opportunities. The Wider Europe Initiative is Finland's harmonised regional development framework. The initiative targets the following themes: security, trade and development, information society develop- ment, energy and the environment and social sustainability. The framework includes three regional cooperation programmes – in Eastern Europe (Belarus, Moldova and Ukraine), the South Caucasus (Armenia, Azerbaijan and Georgia) and Central Asia (Kazakhstan, Kyrgyzstan, Tajikistan, Turkmeni- stan and Uzbekistan). The Needs Assessments produced under the Aid for Trade project form part of a long-term vision of developing trade capacities, which will benefit human development in the region. The recommen- dations presented are expected to constitute the basis for a second phase (2011–2013), focusing on the implementation of the recommendations developed in the national and regional Needs Assessments. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or trans- mitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior permission. This is an independent publication commissioned by UNDP. The views expressed in this publication are those of the author(s) and do not necessarily represent those of the United Nations, including UNDP, or their Member States. ISBN 978-92-95092-25-9 Copyright © UNDP 2011 All rights reserved UNDP Regional Bureau for Europe and the Commonwealth of Independent States I am pleased to present this publication on the role of the private sector in the development of Georgia. The initiative is an integral part of UNDP’s ongoing programme aimed at assisting the govern- ment of Georgia in developing new strategies for promoting sustain- able economic growth. Team for the preparation of the Publication This collection of opinion papers and summaries of public discus- sions is the result of a comprehensive debate carried on under the Authors auspices of the Georgian Global Compact Local Network in the course oIfa2m0p0le9a.sed to present this publication on the role of the private sector in the development of Georgia. The initiative is an integral Mikheil Tokmazishvili part of UNDP’s ongoing programme aimed at assisting the govern- George Berulava It is alsomtehnet orf eGseuorlgtiaoifn UdeNveDloPpi’nsg neefwfosrttrsatetgoieds rfoarwprothmeotinpgusbulsitcaina-nd official attentionabtloe escoonmomeicogfrothweth.areas identified as important for the coun- try’s development by representatives of the private sector. This collection of opinion papers and summaries of public discus- Advisory group sions is the result of a comprehensive debate carried on under the auspices of the Georgian Global Compact Local Network in the The publication discusses a range of issuescothuraset othf 2e00p9r.ivate sector, despite its considerable resources and capabilities, cannot resolve on its own, without support and collaboration of other actors in society. Jacek Cukrowski It is also the result of UNDP’s efforts to draw the public and official Kim Boermans attention to some of the areas identified as important for the coun- George Nanobashvili In order to promote such collaboration, UNDtrPy’shdaevselcopommenmt bisysrieopnreesednteatxivpees rotf trheevpireivwatse sfreoctmor. national and in- ternational authorities in respective fields, and facilitated public dialogue to examine gaps and opportu- nities and to discuTIs hamse pt uhpleasedbelicraeticono tomd ipresentsmcuessnedse thisadracn publicationogeuorsf iessueosf ontahac tthettihoe nassessmentprniveaetedseedcto fofro, rdtheemsp needsoiteviintsg cofofno tradesriwdeara rdevelopmentbdle. resources in Georgia and arecommendationsnd capabilities, cann forot r epolicysolve omakersn its ow non, w theitho wideut sup rangeport an ofd ctheolla bpolicyoratio noptionsof other foract ofurtherrs in so facilitatingciety. access of Although the areasIentrepreneursn coordveer rtoepdrobmyo toteh localissucphu candbolliac bforeignaotriaotinona, marketsUreNDdPivhea forrssce ogoods,mtmwisos anditohnee dmservices.eexspecrtornevsieiswtsefnrotmlyneamtioenargl aendd in- all expert papers and publictedrnisatciounsalsaioutnhosr.ities in respective fields, and facilitated public dialogue to examine gaps and opportu- nities and to discuss the recommended courses of action needed for moving forward. I would like to mention that this initiative is an integral part of the regional Aid for Trade project under 'Wider The first is the neeAEurope:dlthfoourghth tAidhee ca forroema sTradepcroevehr forednb sCentralyivtheis, pgu Asia,oblvicearti nSouthonmaeren dCaucasusti-voerwsen,etwdo andnthaem tWesternioesncaolnsi tsCIS'rtaentet lwhichygeymfeor gcoversreddeinvae Centralllleoxppmerte Asia,nt. A thell in South- papers and public discussions. volved seemed toCaucasusshare a andn o pWesterninion t hCIS.at such a document would provide the necessary frame of refer- ence, direction, anThdeafirdsdt isethffeicnieeend cfoyr tthoe cthomepdreehevnesliovep, mgoevenrntamleentf-foowrntesdonaf taiolnlaal sctrtaotresgyafonrddecvoelnopsmtietnute. Anllcinie- s. Acknowledgements vIo stronglylved seem believe,ed to sh thatare a UNDPn opin isupportedon that such coordinateda document actionwould p ofro vtheide nationalthe neces stakeholderssary frame of rfromefer- these countries ence, direction, and add efficiency to the developmental efforts of all actors and constituencies. The second is thewhich,urgen ont n theee doneto handinclu facede ssimilarystem developmentatic stakeh challengesolder con and,sulta ontio thens onein t hothere de hand,cisio nhave-ma ratherking dif- processes at all leTferentvhelse.c opportunitiesTonhdisis wtheourlgde nbandtrnine edevelopmentgd ttoginecltuhdeers ytneeds,hsteminatt iwillcerseta sresultketshoaldn eindr cformulationvoniesuwltsationfsd iandnifftehe rimplementingednectisgiorno-umpaksin tgofo effectiveproduce trade We extend special thanks to the Government of Finland, whose generous contributions in the context more inclusive anpdroeceffsescestiavtealpl loevlieclsie. Tshias nwdoupldrborginrgatmogmetheesr .the interests and views of different groups to produce mdevelopmentore inclusive a policy.nd effective policies and programmes. of the Wider Europe: Aid for Trade for Central Asia, South Caucasus and Western CIS initiative made this publication possible. I would like to thaIIn wwouldkoutlhdelik likeientvoi ttohea dexpressnketxhepein rvourtitsed agratitudeenxdpeprtsaartn ianddcippa arappreciationtnicitpsanotsf opfupbu blforilcic dtheiissc cusupportsussiosnisofno providedsr thfoeir ctohll eabybiro thercaotiol lGovernmentnaibnoration iofn Fin- this exercise. I wothuisldexaerlcsiose.liIkweoutold alscoknlikoewtoleadckgneowtlhedegeimthpe oimrtpaorntatnwt woorrkk uunndderetarkteankbeynthbeyGltohbeal GColmobpaaclt Compact Nlandetwo throughrk in Geo rthegia iWidern provi dEuropeing a pl ainstrument,tform for coll athebor ateamtion b ofet wAideen forthe Tradebusin eprojectss, gov efromrnme UNDPnt, and Bratislavacivil Regional Network in Georgia in providing a platform for collaboration between the business, government, and civil sOfficeectors t hforrou gEuropeh know leanddge CISsha riwhong, psuccessfullyolicy dialogue ,manageand joi ntthisact ioprojectns to m eandet dtheev eteamlopme ofnt athel ch aauthorsllenges. who applied their sectors through knowledge sharing, policy dialogue, and joint actions to meet developmental challenges. Aknowledges we presen andt ou rtookfind inintogs t considerationo your attention the, we opinionshope tha tofth ethey w nationalill contrib ustakeholderste to Georgia ’ands eff oexperts.rts to meet both its economic competitiveness goals, and its aspirations for greater social cohesion. As we present our findings to your attention, we hope that they will contribute to Georgia’s efforts to meet both its econI ohopemic thatcom thispe tpublicationitiveness willgoa facilitatels, and theits adialoguespirati oandns cooperationfor greate ramongsocia thel co publichesio andn. private sector, as well as, independent researchers and experts for developing the policy which makes the trade to work Jbetteramie