GEORGIAN DEVELOPMENT RESEARCH INSTITUTE

Concept of Georgia’s Local Self-governance system

K. Kandelaki, D. Losaberidze, I. Melashvili, T. Shergelashvili

Tbilisi, 2012

Decentralization issues:

Administrative territorial enragement; Distribution of competencies; Financial and property issues; Formation of self-governance organs (elections)

the mode of actives (structure and regulations Forms of state and public supervision Public involvement in decision-making.

The first level of self-governance -

Municipality (town, village/community) – functions:

Providing maximum number of services, maximal inclusion of the population in managing its residential environment and in the process of formation.

The second level of self-governance -

Region (administrative-geographical and united historical-ethnographic unit) functions –

Carrying out of those obligations the cultural and social-economical resources of which ones the first level of self-governance is lacking.

Two level self-governance will be established after the reform

Settlements: Self-governance units

 The types of settlements: Village type settlements Town type settlements

Self-governance units: Towns Village/community – the community is an

amalgamation of one or several village type settlements.

 

Managing organs of self-governing unit Representative organ – sakrebulo (council) Elected through direct, equal, secret ballots

by entire population; according to the proportional single transferable vote (STV) for the term of 3 years.

Up to 10 000 population elects Sakrebulo consisting of 15 membersUp to 50 000 population elects Sakrebulo consisting of 21 membersUp to 100 000 population elects Sakrebulo consisting of 25 membersUp to 300 000 population elects Sakrebulo consisting of 35 members

The members and authorities of Sakrebulo except the chairperson and the secretary perform their duties free of charge

Executive organs of local self-governance units The executive unit is: Gamgeoba (Executive board) – in the

village/community and Mayors office in town The chief of the executive unit: Gamgebeli(chief of the executive board) and

Mayor in town Gamgebeli of village/community and city

mayor are elected according to the rule determined by the law through direct, equal and secret ballot by the entire population for the terms determined for Sakrebulo

Institutions which ensure public involvement in the self-governance bodies.

 1. In all he settlements of the community the

population elects on the voluntary basis Mamasakhlisi (facilitator between the

population and governing bodies) Public board (of observers)2. The town Sakrebulo has the right to divide

the town into the districts. The district bodies are created and functioning analogues to the community settlement bodies.

Apart form occupied territories in Georgia there are 11 regions and the capital - Tbilisi:

1) Ajara – capital - Batumi;

2) Guria – administrative center - Ozurgedi.

3) Samegrelo – administrative center – Zugdid;

4) Svaneti - administrative center – Mestia;

5) Racha-lechkhumi - administrative center – Ambrolauri;

6) Imereti - administrative center – Kutaisi;

7) Samtkhe-Javakheti - administrative center – Akhaltsikhe;

8) Shida Kartli - administrative center – Gori;

9) Mtianeti - administrative centers – Dusheti or Jinvali;

10) Kvemo Kartli -administrative center – Rustavi or Bolnisi;

11) Kakheti - administrative center – Telavi;

12) Tbilisi

The representative body of the regional council

The board of the region consists of the members elected for the term of 4 years through the direct, equal and secret ballot by the entire population through proportional single transfer vote.

Up to 200 000 population elects council consisting of 25 members

From 200 000 up to 100 000 population elects council consisting of 35 members

  The members of the regional council

receive salaries.

The executive body of the region – Administration: The executive body of the region is a regional

administration The head of the regional administration is a

governor of the administration

Chairperson of the regional council enounces a vacancy for the position of the governor of the regional administration and creates special commission for the competition. The half of the members of this commission are submitted by Georgian government (president) The competition commission by the decision of the 51% of the members recommends for the position of governor of the administration selected candidate (candidates) for further endorsement to the regional council which takes decision by the majority of the regional council members.

Rights and obligations of the self-governance unit

Exclusive rights and obligations Delegated rights and obligations

General rights and obligations of the local self-governance unit and regional governing bodies

  Drafting of the budget, its discussion, adoption,

introducing amendments, execution, control, reporting and evaluation.

Introducing local taxes and duties as well as introducing special benefits

Taking loans from other budgets, physical or legal entities issuing local securities and lotteries.

Creation of Social-economic programs of local self-governing unit

Establishing special tariffs for services provided within the frames of the rights of self-governing unit

Possession, managing and selling of the property in the ownership of the self-governing unit

Creation, reorganization and liquidation of enterprises, institutions and organizations

Carrying out and participating in the international economic, social and cultural projects

Concluding agreements with other self-governing units on different cooperation

Participation in local national regional and international association.

Conducting state purchase activities envisaged by the legislation.

Exclusive rights and obligations of the managing bodies of the local-self governance unit

Pre-school education Ambulatories, primary medical assistance,

hospitals and family medicine of the local significance

Cultural monuments and cultural objects of the local significance, managing of natural resources of local significance as well as management of water and land protection, local forest, land and sanitary protection.

Maintaining public transport and motorways of local significance

• Additional local programs for social assistance

• Control on urban planning and construction• Utilizing garbage from the public places and

residential areas. Preventive measures for cleaning procedures

• Sewage system, providing with drinking water, melioration on the territory of particular self-governance, keeping everything tidy

• Seminaries• Fire protection measures

Exclusive rights and obligation of the regional governing body

Orphanages/ schools for socially venerable layers of the population

Hospitals of regional significance Keeping medical statistics Cultural and sports objects of regional significance Protection of water and plant of the region as well as

of forests, collection and utilizing the garbage, recycling and utilizing sewage, protecting natural and water resources of water significance

Melioration of the region Maintaining roads and public transport circulation

between the self-governance units Regional planning

Division of tax revenues between the different governance levels

Center •VAT•Excise•Import duty•Tax on profit (50% of profit share)

Region •on profit (50% of profit share)•Income tax (not more than 5%of the taxation tariff (when tariff is 20% income tax)

Local self-governance

•property tax(local tax)•Income tax (not more than 15%of the taxation tariff (when tariff is 20% income tax)

Local self-governance as well as regional governance should be able to regulate income tax(shared tax) tariff for local self-governance - lower margin 7.5% upper margin 15%, region - lower margin 2.5% upper margin 5%,

Inter government transfers and other revenues

Equalizing grant Targeted transfer for financing delegated rights Capital transfer for the increase of non finance(in kind) assets Special transfer

Other revenues

• Duties on natural resources • Duties on granting rights• Revenues and dividends from the enterprises of public ownership • Revenues received from collecting penalties and providing services

The amount allotted for caring out exclusive rights and obligations should be not less than 50% of total expenditure of the budget for the self-governance unit /region

The sum received from selling of the public ownership property should be fully transferred into the state, regional or municipal budget depending on the fact who is the owner

The loan taken for the public needs under the supervision of the Ministry of Finances from the physical and legal entities, by the regional/self-governing unit of the governing body.

Administrative expenses of the governing bodies of the regional self-governance unit should not exceed 20% of the budgetary expenditures

In the state budget the special attention should be dedicated to the mountainous regions of Georgia which is envisaged by the Georgian legislation

The forms of state supervision Legal supervision State supervision concerning exclusive rights

and obligations is limited only by checking of compliance of these tasks with the legislation. The body for the legal supervision is the Georgian Minister of Justice

    Sectoral supervision State sectoral supervision envisages

supervision of executing contents and quality of the task. Responsible for the supervision is the body (primarily appropriate ministries) which delegated its rights.

Weak points The process of formation of the new unit

could be complicated The process of reformation could take much

time There is a probability of increased local

corruption The problem of the qualification of the public

servant The process of distribution and execution of

rights and duties between the different levels of the governing bodies

Technical-druidical problem while the distribution process between the levels of the governing bodies

Kind of a threat of polarization of the regional elected bodies

Strong points – self-governance: Growth of public information control and

participation; transparency of government activities, development of civil society

Arranging of social economic problems of the minorities with their own participation

Development of quality of services and local infrastructure

Facilitation of development of mid-size, bigger towns and regional centers

Better consideration of the interest of mountainous regions

Today it is easier to move in to the who level self-governance

Strong points – region:

To maintain political and economical bans with the autonomies - it is better the existence of regions

Social-economical unity of the historical regions

To carry out functions of the self-governance which need bigger unit than the municipality

Development of the regional centers and emerging of developed group of the towns