Georgia’s Economic Recovery ‘Gaining Strength’
The World Bank Board of Executive Directors has approved a US$ 60 million Competitiveness and Growth Development Policy Operation (CG DPO) for Georgia, the first in a series of credits to support competitiveness and inclusive growth. The proposed DPO series is a central component of the World Bank’s Country Partnership Strategy (CPS) in Georgia for 2010-13.
The CG DPO series supports Government reforms under three pillars: (i) Improving competitiveness through efforts to enhance market access for exports and foreign investment, facilitate trade, strengthen the investment climate in the power sector, and modernize and build a high quality education system; (ii) Strengthening public financial management by improving the accountability, coverage, and transparency of the budget; and (iii) Enhancing the effectiveness of social spending by strengthening social safety nets through improvements in the quality of and access to health services, and in the efficiency of the targeted social assistance program.
”The proposed DPO series is anchored in the the Government’s Ten Point Plan for Modernization and Employment,” said Henry Kerali, World Bank Regional Director for the South Caucasus. “The policy actions supported by the CG DPO were developed in close collaboration with the Government. Strong Government ownership of the program will ensure implementation and sustainability of the DPO program supported by the Bank.”
“The strategy adopted by the Government is to promote a virtuous cycle of productivity improvements, higher investment and exports to generate growth and employment while adequately strengthening social safety nets,” said Rashmi Shankar, World Bank Senior Economist and Task Team Leader of the DPO program.
CG DPO series are IDA credits with a maturity of 25 years, including a 5-year grace period.
World Bank commitments to Georgia total approximately US$ 1.62 billion.