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Construction site at the Iveria hotel (later renamed Radisson Iveria) in Tbilisi.
The Georgian construction sector was plagued by excessive licensing requirements
before the 2005 reform. Photo: flickr/miss_rubov

Suggested readings

For more on the New Economic School of Georgia, see www.nesg.net.

On the Liberty Institute, see "Pro-West leaders in Georgia push Shevardnadze out" by Hugh Pope (2003) in the Wall Street Journal. This article describes the Liberty Institute and the role it played in the Rose Revolution.

For a list of all privatization sales since 2004 (listed by the Government of Georgia) please see www.privatization.ge. Please note that this list does not include all transactions which took place.

Molly Corso, a freelance journalist writing for EurasiaNet published the article "Privatization in Georgia: Solving the 'sensitive' issues" (2005) in which she discusses the privatization process in Georgia and challenges and debates surrounding it.

For the number of state owned enterprises and privatization before the Rose Revolution, please see: World Bank: "Georgia: A blueprint for reforms" (1993).

The following is a reading list on licensing reforms in Georgia: Celebrating Reforms 2007 is a collection of reform case studies from around the world. Compiled by World Bank's Doing Business project, Georgia features two times: with licensing reform and land privatization.

In 2008, World Bank's Doing Business project conducted a study of licensing reform in various countries around the world, entitled Dealing with Licenses, Georgia is featured as an example of an extremely successful reform in the construction sector.

Also in 2008, International Finance Corporation (IFC) in Georgia did a study of Georgia's license reform. To access the study go to IFC Georgia Website or click Georgia after 3 years of Licensing Reform.

Georgia's new Labour Code has been translated into English and can be found in the websites of World Bank's Doing Business project, the International Labor Organization (ILO) and other organizations: Labor Code of Georgia.

Between 2006 and 2010, Georgia rose 89 places – from 100th to 11th – in the Ease of Doing Business Index (EDBI). In 2010, according to this Index, there are only four European countries which are easier than Georgia to do business in: UK, Denmark, Norway and Ireland. Countries like Germany, France, the Netherlands and even Estonia – the first country in Europe to introduce a 'flat tax' policy – are behind Georgia in this index.

Look out for Sam Schueth's forthcoming "Assembling International Competitiveness: Georgia, USAID, and the Doing Business Project" in the Journal of Economic Geography (Clark University). Schueth, from the University of Minnesota, lived and worked in Georgia and closely observed the reform process which led to the leap in the EDBI. Schueth was based in USAID's Georgia office. His paper notes "how EDBI rankings can be exploited to obfuscate problematic business conditions overlooked by its measurement methodology."

A detailed report by USAID on EDBI, both on the process and the successes of the project can be found here. See: USAID (2009) "Georgia, Opened for Business: Georgia Business Climate Reform 2009".

A speech by Simeon Djankov, the creator of World Bank's Doing Business (current Deputy PM in Bulgaria) can be found here, from an event organized by the Cato Institute on "How Nations Prosper: Economic Freedom and Doing Business around the World" (2008).

April 2010

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