Trends and Opportunities in Advancing South-South and Triangular Cooperation in Georgia 2018 The report is prepared and published by the Division for Arab States, Europe and the CIS, UNOSSC Author: Sayyora Arifdjanova, Advisor, UNOSSC Design and layout: Alyssa Kilic, UNOSSC Copyright © United Nations Resident Coordinator’s Office in Georgia and United Nations Office for South-South Cooperation 2018 DISCLAIMER: Information contained in this publication is provided by multiple stakeholders that contributed to the stocktaking process and does not engage the United Nations Resident Coordinator’s Office in Georgia and the United Nations Office for South-South Cooperation. The views expressed in this paper are those of the author and do not necessarily reflect the opinions of the UNRCO in Georgia and the UNOSSC. Image on the cover page: “These 15 raised poles means that 15 sons were born in the Adishi community in 2016. Photo by N. Alavidze/Agenda.ge” Source: http://agenda.ge/photogallery/351/eng Contents 10 Part 1. Introduction 15 Part 2. Overview of Potential for South-South and Triangular Cooperation in Georgia 26 Part 3. Good Practices for South-South Cooperation 3 44 Part 4. Findings and Recommendations 4 Abbreviations and Acronyms AA Association Agreement ADB Asian Development Bank AGWP Annual Governmental Work Plan AoG Administration of Government BSEC Organization of the Black Sea Economic Cooperation CAREC Central Asia Regional Economic Cooperation CIS Commonwealth of Independent States CSO civil society organization DAC the OECD Development Assistance Committee eAIMS Electronic Aid Information Management System EaP Eastern Partnership EBRD European Bank for Reconstruction and Development ECIS Europe and the Commonwealth of Independent States EIB European Investment Bank ENP European Neighbourhood Policy ENPARD European Neighbourhood Programme for Agriculture and Rural Development EU European Union FAO Food and Agriculture Organization of the United Nations GEL Georgian Lari, currency of Georgia GITA Georgia's Innovation and Technology Agency IOM International Organization for Migration LEPL Legal Entity of Public Law MMS Municipal Management System NAPR National Agency of Public Registry OECD Organisation for Economic Co-operation and Develop- ment 6 OGP Open Government Partnership PAR Public Administration Reform PSDA Public Service Development Agency PSH Public Service Hall SDG Sustainable Development Goal SIGMA Support for Improvement in Governance and Manage- ment SSC South-South cooperation TC triangular cooperation UN United Nations UNCT United Nations' Country Team UNDP United Nations Development Programme UNECE United Nations Economic Comission for Europe UNICEF United Nations Children Fund UNOSSC United Nations Office for South-South Cooperation UNPSD United Nations Partnership for Sustainable Development USAID United States Agency for International Development WHO World Health Organization 7 This is Adishi – a small village, 6,000 feet above sea level, in Georgia’s high mountainous region of Svaneti. 15 families live in this village in the Greater Caucasus Mountains throughout the year. Photo by N. Alavidze/Agenda.ge. Source: http://agenda.ge/photogallery/351/eng PART 1. INTRODUCTION 9 Advancing South-South and Triangular Cooperation PART 1. INTRODUCTION Background hydrocarbons or other mineral resources, the country put efforts and succeeded in Georgia is located in the Caucasus region improving efficiency and effectiveness of on the coast of the Black Sea (on the west) public spending and providing of public and boarders Russia on the north, Turkey services, improving business environment and Armenia on the south, and Azerbaijan on the south-east. Historically, the coun- through innovations and promoting for- try is located on an important north-south eign investments. Transit and tourism sec- trade route in Eastern Europe. Energy im- tors are among the main contributors to ports to the European Union from neigh- the Georgian economy. boring Azerbaijan pass through Georgia. Since gaining the independence in 1991, With the adoption of the 2030 Agenda Georgia has undergone a painful process and the Sustainable Development Goals of political and institutional reformation, the Member States seek for more oppor- civil conflicts and economic crisis. The tunities to achieve the set objectives. In peaceful Rose Revolution in 2003 marked a this context, South-South Cooperation strong shift towards European integration (SSC), seen as a partnership among equals and gave the new impetus for the dem- based on solidarity, is viewed as one of ocratic and economic reforms aimed at the effective drivers for change that offers strengthening public institutions and pav- opportunities for developing countries ing the ground for intensifying economic to leverage their own experience, knowl- development. Suffered from corruption edge and resources in support to social and consequences of disintegration of and economic transformations. Through economic ties, Georgia has undertaken the exchange of expertise, technologies significant reforms towards integrity, es- and resources, SSC enables countries to tablishment the rule of law and economic access locally relevant, affordable and and social areas revival. Today the coun- adaptable development experiences, try, according to the international institu- build their capacities and devise solutions tions, is rated among the best countries for their autonomous development. The in the region for doing business, trans- cohesive meaning of South-South coop- parency and integrity of public adminis- eration is reflected in the definition pro- tration. As the dynamic transformations posed by the UN: “… a process whereby continue to strengthen public adminis- two or more developing countries pursue tration, reduce poverty and facilitate eco- their individual and/or shared national ca- nomic development, the path of reforms pacity development objectives through allowed the country to ensure economic exchanges of knowledge, skills, resources growth at the level of 5% annually and this and technical know-how and through re- is despite numerous disturbances of the gional and interregional collective actions, past decade, including the global crisis of including partnerships involving Govern- 2007-2008, and the conflict with Russia in ments, regional organizations, civil soci- 2008. Being scarce in market-demanded ety, academia and the private sector, for 10 Trends and Opportunities in Georgia their individual and/or mutual benefit with- es as an important step towards unleashing in and across regions.” Triangular coopera- the potential of South-South and triangular tion (TC), which facilitates SSC, “…involves cooperation for Georgia, the ECIS region Southern-driven partnerships between two as a whole, and beyond. The stock-taking or more developing countries supported by exercise was conducted to identify relevant a developed country/or multilateral organi- South-South (East-East) cooperation frame- zation to implement development cooper- works, conditions, patterns, successful prac- ation programmes and projects.”1 tices and challenges at the level of individu- al line ministries, public agencies, as well as Considering the active efforts of Georgia UN agencies, funds and programmes and in advancing cooperation with developing development cooperation partners active countries and countries in transition sup- in Georgia. ported with the substantial demand from those countries in expertise and knowledge The methodology of the stocktaking in- accumulated in Georgia, its active role in cludes desk review of the existing policy pioneering nationalization of SDGs and and institutional frameworks for SSC and voluntary commitments to advance attain- TC in Georgia, the survey aimed to collect ment of the 2030 Agenda worldwide, the information on existing capacities and ex- stocktaking of trends and opportunities for pertise as well as data for analysis of the South-South and triangular cooperation current state of SSC and TC in the coun- has been conducted under the request of try and consultative meetings with the key the Government of Georgia to further iden- governmental institutions and internation- tify opportunities for mutually beneficial al partners. Fifteen consultative meetings development partnerships in order to sup- with the governmental institutions recom- port national and international stakeholders mended by the national authorities coordi- to shape the vision and implementation of nating the stocktaking on the side of Geor- South-South cooperation activities and to gia (the Administration of the Government unleash the role Georgia can play as South and the Ministry of Foreign Affairs), as well (East) knowledge provider and develop- as with UN Country Team (UNCT) and de- ment partner in line with its national prior- velopment cooperation partners provid- ities. ed additional data for the analysis of the potential areas for cooperation, including Objectives and methodology knowledge and expertise sharing, as well as potential frameworks and activities that can facilitate active engagement of Georgia in The stocktaking aimed at further defining South-South cooperation, and informed Georgia’s priorities and strategic preferenc- the findings of the stocktaking exercise. es in South-South (East-East) cooperation, The meetings were held at the Administra- as well as the country’s level of prepared- tion of the Government, Ministry of Foreign ness to pursue such priorities and preferenc- Affairs,