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Economic Freedom of the World 2010Georgia
Gia JandieriVice-president, NESGTbilisi, Sep 21, 2010
Georgia 2009-2010
Georgia 1. Size of Government 7.2 36 7.68 26 0.48 -102. Legal System and Property Rights 5.3 85 5.07 88 -0.23 33. Sound Money 8.3 67 9.08 38 0.78 -294. Freedom of Trade Internationally 7.7 20 7.73 16 0.03 -45. Regulation 7.7 18 7.81 23 0.11 5SUMMARY 7.25 42 7.47 23 0.22 -19
2009 (2007) 2010 (2008) Difference
Doing Business 2010 – Top 10+
Economy
Ease of Doing
Business Rank
Starting a Business
Dealing with
Construction Permits
Employing Workers
Registering Property
Getting Credit
Protecting Investors
Paying Taxes
Trading Across
Borders
Enforcing Contracts
Closing a Business
Singapore 1 4 2 1 16 4 2 5 1 13 2
New Zealand 2 1 5 15 3 4 1 9 26 10 17
Hong Kong SAR, China 3 18 1 6 75 4 3 3 2 3 13
United States 4 8 25 1 12 4 5 61 18 8 15
United Kingdom 5 16 16 35 23 2 10 16 16 23 9
Denmark 6 28 10 9 47 15 27 13 6 28 7
Ireland 7 9 30 27 79 15 5 6 21 37 6
Canada 8 2 29 17 35 30 5 28 38 58 4
Australia 9 3 62 1 34 4 57 47 27 16 14
Norway 10 35 65 114 8 43 20 17 9 4 3
Georgia 11 5 7 9 2 30 41 64 30 41 95
DB 2009-2010
Ease of... Doing Business 2010 rank Doing Business 2009 rank Change in rankDoing Business 11 16 5Starting a Business 5 5 0Dealing with Construction Permits 7 9 2Employing Workers 9 10 1Registering Property 2 2 0Getting Credit 30 27 -3Protecting Investors 41 38 -3Paying Taxes 64 112 48Trading Across Borders 30 85 55Enforcing Contracts 41 42 1Closing a Business 95 95 0
HERITAGE FOUNDATION 2010
yearoverall score
business freedom
trade freedom
fiscal freedom
government
spending
monetary freedom
investment freedom
financial freedom
property rights
freedom from
corruption
labor freedom
2010 70.4 87.9 89.1 89.1 65.3 70.2 70 60 40 39 93.7
Finance Act - 2008
• Independent regulatory body of Finance Sector
• Decreasing and elimination of taxes on:- Dividends- Capital gains, and- InterestUntil 2013
Other initiatives of Georgian Government
• De-regulation of pharmaceutical business activities
• Easing of permissions for construction business
• Introduction of e-failing of tax declarations• Total elimination of social (insurance) tax from
2007
Georgia and the EU
• From Free Trade to Deep and Comprehensive Free Trade Agreement = harmonization of legislation, re-regulating and increasing of taxes
• Debated topics:- Anti-trust regulation- Emigration and labor policy towards foreigners- Contact based Labor- Food safety…• New requirements every day
Liberty Act
• Referendum requirement for tax increase• No new regulations
• Restricted fiscal system: - Public debt- Deficit- Limited government spending
Problems to be Solved
• Inviolability of private property• Anti-constitutional Taxation administrative
rules• Still high level of taxation• Increased public spending• Increased Public debt…
