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Expertise by International Fund for Agriculture Development (IFAD)

FAD Rural Sector Performance Assessments (IFD)

Government Effectiveness

Allocation & management of public resources for rural development

Regulatory Quality

Enabling conditions for rural financial services development

Investment climate for rural businesses

Access to agricultural input and product markets

Rule of Law

Access to land

Access to water for agriculture

Control of Corruption

Accountability, transparency and corruption in rural areas

Voice and Accountability

Policy and legal framework for rural organizations

Dialogue between government and rural organizations

The UN’s International Fund for Agriculture Development (IFAD) has assessed the quality of performance of various governments worldwide as part of the World Bank (WB) mega project the Worldwide Governance Indicators (WGI). The report also contains the assessment of analysis for the 2013 government of Georgia. The IFAD report is based on 5 aggregates: Government Effectiveness, Regulatory Quality, Rule of Law, Control of Corruption, Voice and Accountability.

The WGI governments’ effectiveness quality assessment is based on a final expertise of about 30 international organizations, including IFAD.

According to the IFAD report, Georgian government’s effectiveness has reached a historical maximum.

According to the IFAD report, the 2013 Georgian government’s effectiveness level has sensibly grown by 10% to 75%, while the figure stood at 65% in 2012.

IFAD launched assessment of the governments’ effectiveness in terms of Allocation & Management of Public Resources for Rural Development in 2004 as part of the WGI mega project.

According to the IFAD report, the 2013 Georgian government’s effectiveness makes up 75%, up 11.5% compared to the 2004 to 2012 period.

Moreover, the 2013 Georgian government’s effectiveness exceeds or equals to the 2004 to 2012 indicators, while the 2013 figure exceeds the 2010 and 2011 (when the United National Movement ruled the country for the last time) government effectiveness level by 36.6%.

This indicator takes Georgia ahead of Azerbaijan and Armenia in the region in 2013, while the country remains behind Turkey by 5 %.

The IFAD report covers 97 countries and the ten top countries in terms of the government effectiveness level are as follows (the report does not cover European countries):

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The table shows Georgia ranks 5th in the rating and the country is behind only Mauritius, Brazil, Trinidad and Tobago and Turkey.

Control of Corruption (Anticorruption Activities)

According to the IFAD report, in 2013 Georgia’s Control of Corruption indicator (accountability, transparency and corruption in rural areas) marked 80%, up 21.9% compared to the 2004 to 2012 period. The 2013 figure is a historical maximum. In 2012 the Control of Corruption indicator accounted for 60%.

The indicator takes Georgia ahead of Armenia by 30%, ahead of Azerbaijan by about 200% and the country is on the same level as Turkey in 2013.

The ten top countries in terms of Control of Corruption indicator are as follows:

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The table shows Georgia ranks fourth in the rating. It should be also noted the country is behind the top three countries by only 0.01%.

Rule of Law

The Rule of Law indicator consists of two components: Access to land; Access to water for

Agriculture.

According to the IFAD report, in 2013 Georgia’s Rule of Law indicator marked 65%, up 4.2%

compared to the 2004 to 2012 period. In 2013 Georgia comes behind all countries in

the region in terms of this indicator (Azerbaijan, Armenia and Turkey).

According to the IFAD report, Georgia ranks 21st in the rating, while Armenia and Turkey top the rating.

The last period has recorded a growing tendency of access to water for agriculture sector, while downturn tendency has emerged in terms of access to land plots. The latter factor has conditioned downturn in averaged level of Rule of Law in Georgia compared to the previous years.

Voice and Accountability

IFAD report also assesses Voice and Accountability indicator in various countries. This indicator consists of two components: 1) Policy and legal framework for rural organizations; 2) Dialogue between government and rural organizations.

According to the IFAD report, in 2013 Georgia’s Voice and Accountability indicator marked 70%, up 8.6% compared to the 2004 to 2012 period. The figure takes Georgia ahead of Azerbaijan, but the country comes behind Armenia and Turkey by 5% and 20% respectively.

In the IFAD report, Cabo Verde, Turkey and Brazil occupy the first three place respectively, while Georgia ranks 23rd in the rating.

In 2013 the Voice and Accountability indicator has increased compared to the previous years thanks to growth in level of Policy and legal framework for rural organizations.

Regulatory Quality

The IFAD’s report on Regulatory Quality in various countries consists of three components: 1)

Enabling conditions for rural financial services development; 2)Investment climate for rural businesses; 3)Access to agricultural input and product markets;

According to the IFAD repot, Georgia’s Regulatory Quality indicator hit a historical maximum in 2013 and constituted 80%, up 17% compared to the 2004 to 2012 averaged indicator. The figure is up by 14.5% compared to the 2012 indicator.

The indicator takes Georgia ahead of Azerbaijan and Turkey in 2013, but the country is behind Armenia by 2%.

The IFAD’s report on Regulatory Quality indicator covers 97 countries and Mauritius, Armenia and Thailand occupy the first three places, while Georgia ranks 4th in the rating.

The year of 2013 has recorded major improvement in the investment climate in Georgia compared to the previous years (for agriculture activities). The figure stood at 67% in 2012, while the indicator marked 87% in 2013, up 30% year on year.

Previously, the investment climate’s highest indicator was registered in 2008 to 2010, when the figure reached 73%.

At the same time, new historical maximum was recorded in such component as Access to agricultural input and product markets. The indicator stood at 60% in 2012 and it grew to 73% in 2013.

Moreover, the component of Enabling Conditions for Rural Financial Services Development has been also improved. In 2013 the indicator reached 80%, up 10% compared to 2012. The indicator marked 80% in 2009 too and 70% in 2010 t0 2012.

The abovementioned indicators are expected to continue growing in 2014, because agrarian sector insurance program is underway for the first time in Georgia, besides the inauguration of villages financial support and cheap credit state programs.