Charita Jashi Tbilisi State University Georgia

Transcription

1 Charita Jashi Tbilisi State University Georgia

2 The new dual power constellation in Georgia is known as cohabitation a term used to describe the relationship between former political forces and new elected political coalition ``Georgian Dream `` In the field of economic policy, the main criticism levelled at the former goverment by the opposition that large sectios of the population was that former government disregarded social dimensions of economic reforms.

3 Since 2003 economic policy of Georgian government facilitated economic growth, improvements tax and customs administration, advanced transport and communication infrastructures. Liberal economic reforms improved the efficiency of the economy, but harmed the majority of population, economic growth came at the cost of the poor, the number of which doubled and reached. Three fundamental principles for market economy: secured private property, secured private arrangements and equal and free competition was not maintained. Growth in budgetary incomes did not match growth of effectiveness and adequateness of public expenditures

4 Lower middle-income country with GDP per capita of USD 3,210 in 2011 (IMF, 2012) and ranking 75th on the Human Development Index (UNDP, 2012).) Economic policy of government has been focused less on poverty reduction than creation of a favorable business environment for big business. The majority of Georgians are still living below the poverty level, and 40 % are effectively jobless. ( officially unemployment rate for women is 13,1%, for men 16, 7% 2012 GEOSTAT)

5 According Household Budget Survey in 2011 on average: 36 % of the population is living in a household with average consumption below the official Minimum Subsistence Level (MSL), 61 % has no ability to save money at the end of the month 22 % owe money to the bank 22 %have no stable income, such as a regular wage or old-age pension

6 In % women and 61 % men are employed people in the country mostly in public sector The average monthly wages for men is GEL and for women less at GEL. According to the employment figures, 61.0 % of all women employed in the country are in Tbilisi, compared to the 59.7 % of employed men that are in the capital city. Among the labor migrants in Georgia 68 % are women Gender discrimination in the labor market in developed countries is usually identified in differential wage rates between men and women; in developing countries, discrimination takes the form of differential access to wage employment (Collier 1994).

7 Agriculture, hunting and forestry,fishing Total Women Men Mining and quarrying Manufacturing Production and distribution of electricity, gas and water Hotels and restaurants Transport and communication Financial intermediation Public administration Health and social work Other community, social and personal service activities

8 Based on a national opinion poll in 2012, employment remains the main national issue for Georgians, even before territorial integrity and poverty (Navarro & Woodward, 2010, 2012; CRRC, 2010). High unemployment in Georgia is caused primarily by weak labor demand, as firms expand more from productivity improvements than from increasing employment. Despite high unemployment, including among university graduates, many firms find it difficult to recruit workers with the skills they require. Another key challenge is low-productivity employment, especially in agriculture, which is the main factor behind the high incidence of in-work poverty in Georgia.

9 Official employment statistics may distort the real picture since it assumes that everybody who works on his or her own land plot is employed. Taking into account the fact that these activities are mainly oriented towards self-consumption and that a significant portion of self-employed agriculture workers are unpaid members of family farms, one can conclude that unemployment partly is just disguised According to GEOSTAT, agriculture in 2011 accounted for 53.4 % of employment while its share in GDP was relatively small (8.8%). Moreover, average salaries were the lowest among the sectors (61.7% of the average wage)

10 Lack of social investment Gender asymmetries persist at the sectoral level, women are still more likely to be involved in less profitable sector of economic Lack of subsidize credit and guarantee loans that foster job creation for women. Lack of profesional training Week socil infrastucture.

11 The 2013 budget reflects priorities of the new administration, which are agriculture, healthcare and social security, education and science. Funding for the ministry of Labor, Health Care and Social Affairs has increased by 29.5% to GEL 535 million. GEL 69.3 million, 11.5% more, will go to the Ministry of Education and Science, while the Ministry of Agriculture will have GEL 92 million more to spend, a rise of 61.8% over the last year. Interestingly, 63% of the social and health care appropriation will go to health insurance (GEL million increase over 2012).

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13 Government begin to implement a set of policies to encourage population launching extensive reforms to raise living standards in agriculture, which employs 52% population To support small holder farmers to improve food security Improvement of food safety regulations and administration to standards of European Union.

14 Established a Rural and Agricultural Fund to provide necessary support for infrastructure development and modernization in the agricultural sector. Reforms include improvement of irrigation and drainage systems, introduction of modern technologies and development of credit schemes 700,000 families received direct agricultural assistance. Overall, the value of the project had a price tag of 195 million GEL.

15 The Government managed to reduce the budget deficit to 3.0%, which is lower than the initially expected 3.5%. The fiscal authorities are committed to further consolidation and to reducing the deficit to 2.8 % of GDP in The savings are expected to come from efficiency gains on capital spending, while improved revenue performance is expected to allow more space for strengthening social safety nets.

16 Increased from 9.4% of GDP in 2012 to 11.1% of GDP in 2013 Government spending on pensions, but social allowances do not ensure decent living for pensions In Women and men receive pensions. The full year effect of the 2013 increases in pensions is GEL million (0.8 % of GDP).

17 Funding of the Ministry of Education increased (0.2 percent of GDP) in 2013 GEL 670 million. The increase is mainly directed to voucher financing of the public schools, rehabilitation of the public schools, and grants for higher education. Strengthen measures to achieve social justice and gender balance, which would be a significant precondition for reducing disparities among various social groups in terms of access to education.

18 The first time in the country s recent history state insurance will cover Georgian citizens as well as holders of neutral identification cards/neutral travel documents and individuals without citizenship status/ The universal healthcare program includes more beneficiaries and covers wider population More than 2 million citizens qualify under this category health state insurance The terms of service for emergency ambulatory and in-patient care are described in detail in the program, which provides beneficiaries with concrete information related to what illnesses their insurance covers; in particular, it lists hundreds of groups of illnesses and conditions, which has not been done for any other state insurance program.

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20 Strengthen workers rights through amendments to the Labor Code. One amendment regarding social partnership improving the dialogue and working relations between the employer (union of employers), the employee (union of employees) and state agency representatives was approved by parliament on December 27, This will bring Georgia in line with ILO standards while keeping Georgia attractive as a place for doing business.

21 Social protection increases access to public services and investment in human capital particularly health and education, helping to raise productivty of labour force Social protection may lead to a more cohesive society, better able to take crucial political and economic decisions, promoting social justice and gender equality. Active social policy is not considered yet,social protection is mainly focused on cash benefits, which not facilitate incerase of employment GDP fall down: political instability directly and negativly affects foreign and domestic investment and fiscalconsolidation implemented with aim of reducing budget deficit) ( ,5%, 2013 forecast 6,0%, reality 2,0 %,)