Economic Growth

USAID's economic growth activities focus on developing institutional and human capacity within government agencies and the private sector.  Projects are designed to improve the business environment, expand access to capital, enhance business skills, develop a properly functioning land market, improve agricultural productivity, increase competitiveness of targeted business sectors, and expand economic opportunities in rural communities. 

SME Support Project
International Executive Service Corps (IESC)
Sept. 2005 - Nov. 2009
www.iesc.ge

This project promotes the expansion of small- and medium-sized enterprises by supporting the development of the tourism sector; increasing the access to long-term finance; and promoting European standards in banking education.  Support is also provided to develop competitive business support organizations and services throughout Georgia that deliver business training programs, provide basic business development consulting services, and facilitate business linkages. 

Land Market Development II
Association for Protection of Landowner's Rights (APLR)
Aug. 2005 - Mar. 2010
www.aplr.org

This project assists the Government of Georgia to survey, register and title agricultural land; publish cadastral data online; support implementation of the new pasture land privatization law; and develop policies and regulations that promote secure property rights systems. The project also supports registration of IDP claims on properties within the administrative boarders of South Ossetia, as well as assisting with registration of properties that were transferred to IDPs by GoG after the conflict.

AgVANTAGE
ACDI/VOCA
April 2002 - Dec. 2009
http://www.agvantage.org.ge/

AgVANTAGE is designed to expand the production and sale of agricultural products.  The project identifies markets for Georgian value-added products and then works with businesses to increase their ability to deliver quality goods and capture domestic and international market opportunities.  Interventions focus on developing functional value chains; providing firm-level technical assistance to agribusinesses; introducing new technologies and modern sorting, collection and packaging facilities; and improving access to market information. 

Georgia Employment and Infrastructure Initiative
CHF International
Sept. 2004 - March 2010
www.chf.ge

This project promotes the improvement of economic livelihood in local communities through community investment projects, rural business development, and public-private partnerships.  It supports income and employment generating initiatives that improve rural economic infrastructure; deliver market information, provide training and technical assistance; facilitate business linkages and development; and assist in designing community economic development strategies. Under the School Rehabilitation Project at least 20 deteriorated public schools, located in the former conflict zones of Gori and Kareli districts of the Shida Kartli region, will be rehabilitated.

Establishment of Ph.D. Program in Business at Caucasus University
Georgia State University
Mar. 2008 - Mar. 2011
www.cu.edu.ge

Support is provided to the Caucasus School of Business, a local institution of higher education, to establish the first international caliber Ph.D. program in finance, marketing and management in the Caucasus.  This effort also contributes to the development and institutionalization of sustainable non-degree service activities, including quality research, business consulting, counseling, and advocacy.

Expansion of Agricultural Risk Reduction Assistance in Georgian Conflict Zones
CNFA
Oct. 2008 - Dec. 2009
http://www.cnfa.org/our-work/our-programs/24-georgia-agriculture-risk-reduction-program-garrp

The program addresses the urgent needs to assist thousands of displaced persons and returnees to the Shida Kartli region in their recovery from the economic impact of the Georgian-Russian conflict. The program provided a full package of production assistance, including machinery services, seed and fertilizer, to more than 7,600 farm families for planting of 12,000 hectares of winter wheat.  In addition, the project will assist families affected during the conflict and IDPs being provided land by the Government of Georgia (GoG) to plant spring corps and improve the health of their orchards in 2009.  In total, more than 29,000 families, including all IDPs receiving land from the GoG, will be assisted in seeding 9,200 hectares of corn, 2,750 hectares of winter wheat, and the maintenance of 11,400 hectares of orchards. The expectation is that these activities will produce as much as $44 million in income when harvested.

Livestock Fodder
UN Food and Agriculture Organization (FAO)
Oct. 2008 - Jan. 2010
http://www.fao.org/

The project strives to protect livelihoods of vulnerable livestock holders in areas affected by the 2008 conflict with Russia.  The project provided an emergency supply of 4,240 metric tons of animal feed to 18,248 small-scale, conflict affected farming households; de-worming of 37,000 cattle; and training to farmers on livestock management (appropriate feeding, access to water, shed space and mobility, bio security risks, de-worming, etc.).  The project also works to ensure donor coordination of agricultural support activities.

Customs Reform Asycuda
UNCTAD
Sept. 2009 - May 2010
http://www.unctad.org/                                                                                           

This activity will increase business revenues and strengthen the business enabling environment by increasing efficiency in the movement of goods across Georgia.  It will increase the operational capacity of the Georgian customs agency through a country-wide expansion of a modern electronic declaration system for import, export, and transit requirements that is compliant with international best practices.

Agricultural Mechanization Project
CNFA
Sept. 2009 - March 2012
http://www.cnfa.org

This project will establish institutions and systems for a private sector-driven, sustainable small holder approach to providing mechanized agricultural services that are supportive of increased agricultural sector productivity, competitiveness and profitability.  Grants and limited technical assistance will be provided to private sector organizations to procure tractors and related equipment and provide market-based mechanized services to smallholder farmers.  Farm services will be made available to IDPs that received land from the Government of Georgia.

Women's Economic Independence in the  Post-conflict Zone and Remote Regions of Georgia
Women's Fund in Georgia
Sept. 2009 - Sept. 2012
http://www.womenfundgeorgia.org/ 

The project aims to develop rural women's business skills and self-confidence through an innovative training course and to increase the number of women entrepreneurs. The project will help women to start their own businesses through small grants, with a particular focus on women IDPs in the Shida Kartli region. The project will address the economic effects of the recent conflict and focus on remote regions of the country including northern Kakheti, and the mountainous Imereti and Racha, in order to increase rural women's participation in the economic activities.                                                                  

Sustainable Integration of IDPs into Value Creation Chains of the New Settlement Areas and Supporting Self-Employment of the Vulnerable Populations
Center for Training and Consultancy, CTC
Sept. 2009 - Sept. 2012
http://www.ctc.org.ge/                                          

This project will provide support to new IDP settlements in the Shida Kartli region, specifically to the Mtskheta, Gori and Kaspi districts, including the Tserovani, Tsilkani, Frezeti, Karaleti, Khurvaleti, Shavshvebi, Berbuki, Skra, Teliani and Metekhi IDP settlements, by providing training to develop entrepreneurial skills and issuing grants for businesses that will strengthen strategic value chains. Trainings and business development grants will target identified IDP population needs and development objectives. The project will assist local micro-enterprises to further develop human and production capacities by facilitating access to credit and linking micro-enterprises with financial institutions.

Empower Women of Samegrelo
Association of Persons with Disability in Tsalenjikha
Sept. 2009 - Sept. 2012

This project will provide marketable technical and vocational skills training in the Tsalenjikha, Chkhorotsku, Senaki and Khobi regions. It will also extend financial and material support to businesses by issuing small grants and linking targeted population to local microcredit organizations.  One of the intended outcomes of this project is to reduce the cultural barriers that currently prevent women from having more control of their economic resources. This will be achieved through maintaining participation in gender-related workshops and seminars. Increased numbers of trained women will obtain better jobs with higher wages and/or improve self-employment activities in traditional and non-traditional businesses.

The project provides assistance to the NBG to procure a Georgian Payments System and a Banking System for the Central Bank thus enabling NBG to ensure efficient, smooth and sound operation of the national payments system - an essential component for financial stability in Georgia.                             

Portable DCA Guarantee for Crystal
Crystal
Sept. 2009 - Sept. 2012
http://crystal.ge/

USAID will extend a $1 million portable guarantee to Crystal, a local microfinance institution that will help Crystal to raise $1 million from local and/or international lending institutions that will be used for on-lending to micro and small enterprises.

Other Efforts to Increase Access to Credit

USAID is providing Bank Republic (www.republic.ge) with a $3,000,000 Development Credit Authority Loan Portfolio Guarantee and technical assistance on agricultural lending practices in order to facilitate commercial credit to enterprises in the agricultural sector. 

USAID is providing Constanta (www.constanta.ge), a local bank, with a $1,500,000 Development Credit Authority portable guarantee in order to attract additional lending capital from international financial markets.

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