11.01.2011 r.
New Europe: Georgia – Reactivation
Brussels - Georgian President Mikheil Saakashvili held a speech in the European Parliament recently. This came apparently as no surprise because heads of states and prime ministers speak at the European Parliament virtually every month. However, this was Mikheil Saakashvili’s second visit to the European Parliament. So far, only the Dalai Lama has had this privilege. M. Saakashvili was also a guest in the Foreign Affairs Council and showed unprecedented pro-European openness to discussion and an in-depth debate with MEPs from many countries. Without doubt, this is an interesting signal of a European offensive in Georgian foreign policy. The European Parliament welcomes such signals with undisguised satisfaction, especially as Europe shows lively interest in the situation in the Caucasus. The European Parliament has been the first and foremost forum for Georgians intending to demonstrate their effort in reforming their country and convince Europe about their political arguments. One noteworthy fact is that in his speech the Georgian President has dramatically changed the rhetoric and priorities in international policy. The image of an anti-Russian warrior has changed into that of a proficient manager, consistently pursuing to change his country and introducing reforms with an effectiveness to be envied by many countries in the world. The solemn declaration to refrain from using force in relations with Russia and the declaration of full readiness for peace talks may be a milestone on the road to peace in the Caucasus.
Country of the economic revolution
Georgia’s economy, which survived the Russian military invasion in 2008, compared to other countries of similar size, proves to be highly robust and it has handled the worldwide financial crisis surprisingly well so far.
Since the time of the Rose Revolution, Georgia has introduced a number of liberal, democratic and business-friendly reforms aimed at creating a free market economy and a democratic society. Since 2004, Georgia has freed business from the red tape in an unprecedented fashion, simplifying the formalities linked to establishing business to the maximum extent. A company can be registered in just 1 day, which is unprecedented even in some European countries, and the rules are the same for domestic and foreign entrepreneurs. The same applies to purchasing and registering real property. The tax system has been reformed by the introduction of a flat personal income tax rate of 20% (15% from 2013 onwards). The state budget’s income has increased fivefold, despite the dramatic decrease in taxation. The government is planning to reduce the number of licences and permits required to run business by 85%. With one of the lowest customs duties in the world, Georgia has opened to free and uninhibited trade. There are no quantitative restrictions on the export of goods or transit. What is more, the customs system has undergone a radical reform: simplified export and import procedures and modernised customs clearance points have been put into practice.
Within 3 years, Georgia has changed from a country where power shortages used to be commonplace into an exporter of electricity, supplying it to all its neighbours, including Russia. Finally, an achievement President Saakashvili can be truly proud of: Georgia has practically eradicated corruption in state institutions and the civil service by introducing a number of reforms in the public sector (public prosecutor’s office, court system and police) and politics. As a result, in contrast to many Eastern European countries, bribery is exceptionally rare in Georgia. According to the 2009 Corruption Barometer prepared by Transparency International, Georgia ranks among the least corrupt countries in the world.
Georgia is currently viewed as a country with a dynamically developing economy. During my visit in the Ukraine, I heard some noteworthy words from Prime Minister Azarov: “When it comes to economy, we want to follow the footsteps of Georgia”. Investors continue to show increasing interest in Georgia. The planned tourism investments in the Batumi region are impressive. The group of Georgia’s economic partners is diversified, including companies from the EU, USA and Turkey. Between 2004 and 2007, the Georgian economy grew by an average of 9% annually. At present, the forecast GDP growth for 2010 is 5 to 6%. Most neighbouring countries and even EU members can only envy these results. All this makes Georgia number one on the list of the most business-friendly locations in Central and Eastern Europe.
Western-style democracy
Reports from Western observers, Georgian NGOs and even the opposition regarding the last municipal elections praise Georgia. In contrast to other CEE countries, there are no major reservations about the election procedure, candidate registration procedure, election campaign, access to the media or supervision over the vote counting process. Observation missions sent by international organisations have all agreed that Georgia has recorded substantial progress in developing democratic procedures and civil society. The opposition operates freely in and outside the parliament, and the diverse media ensures pluralism of opinions. According to expectations, the President’s party won the elections; president Saakashvili bears no responsibility for the fact that the opposition – plagued by internal divisions and disagreement between the factions – put up nine candidates against the ruling party’s candidate in the elections of the mayor of Tbilisi.
Interestingly, Georgia has also changed its constitution, based on the Constitution of the Republic of Poland. The new constitution will move Georgia in the direction of a parliamentary and cabinet system, with more powers for a government elected and monitored by the parliamentary majority.
Georgia in the European Union?
In spite of the unresolved issue of occupation of Abkhazia and South Ossetia, we have witnessed substantial progress in the development of relations between the EU and Georgia in recent years. This country actively participates in bilateral and multilateral forms of partnership within the Eastern Partnership, proposed by Poland and Sweden. Georgia has commenced negotiations over the Association Treaty, it has signed an agreement on visa facilitating measures, the readmission treaty, the agreement on marking agricultural products and other food, and the Common Airspace Treaty. Georgia’s government has taken some major steps at home regarding a prospective free trade agreement.
On the other hand, the European Union has played an important role in ensuring stability and security in Georgia, primarily by acting as a mediator in achieving a ceasefire agreement. The European Union Monitoring Mission (EUMM) – currently the only international mission in Georgia – contributes to ensure security and stability in the region. The EU actively participates in the Geneva negotiations, stands firmly behind Georgia’s territorial integrity and supports a non-recognition policy with regard to the territories of South Ossetia and Abkhazia under Russian control. It is broadly accepted that Georgia is a part of Europe in terms of culture, history and politics, as it respects European values, rules and goals. Therefore, it comes as no surprise that Georgia’s full integration into the European Union has become the country’s long-term and strategic objective. Also from our viewpoint, Georgia’s prospective EU membership would undoubtedly support democratic processes, economic reforms, security and stability in Georgia itself and among its neighbours. Georgia deserves a clear European perspective. The Eastern Partnership should ensure any tools required to secure this goal, taking into consideration an individual approach towards each of the six member countries.
Resolution of the conflict between Georgia and Russia – Mission Impossible?
Georgia has no chances of approaching EU membership with the current status of its relations with Russia. Many European politicians declare the recognition of Georgia’s territorial integrity but do not risk a worsening of relations with Moscow by supporting Mikheil Saakashvili. It is good that Georgia seeks partnership with the EU for a peaceful resolution of the conflict. Only this step can ensure the implementation of the six-point ceasefire agreement of 12 August 2008 and the subsequent withdrawal of Russian military forces from occupied Georgian territories. Georgia’s government has devised a national strategy for the occupied territories and an action plan for building trust between communities divided by war. The strategy is intended to ensure that the residents of Abkhazia and South Ossetia can enjoy the same rights and privileges as all Georgian citizens.
A large majority of residents in these regions have left their homes and have become refugees, living in temporary housing built by Georgia’s authorities with international assistance. At present, the European Union plays a key role in ensuring security and stability in Georgia. The EUMM is currently the only international monitoring mission present in this country. The mission has managed to achieve a clear success in ensuring peace and preventing armed incidents, despite being unable to fully exercise its mandate on territories controlled by the Russian military. Geneva talks provide an opportunity to convince Russia to support the development of the EUMM into an international peacekeeping force which would replace Russian soldiers in Abkhazia and South Ossetia. This plan sound like a mission impossible, but its success would be one of the European Union’s greatest foreign policy achievements in history. The speech which I heard yesterday from Georgia’s President as well as my MEP colleagues’ response give reasons to believe that it is doable.
Krzysztof Lisek is a Member of the European Parliament from the election list of the Civic Platform, standing reporter for Georgia in the European Parliament
