As part of the development of their new Country Partnership Strategy, Dr Welton provided ADB with an overview of the Georgian economy and private sector environment. This was particularly focus on the situation up until the change of government in 2012.
The research for this included an overview of the last 10yrs economic analysis of Georgia, up to date macroeconomic analysis combining local, international and comparative data for the Georgian economy and also provided textured local insights into the operation of key sectors with 50 interviews with senior business people. The resulting research included:
- the history of the Georgian economy since 1992
- a macroeconomic overview of the key sectors of the economy
○ Georgian value added by sector
○ Employment by sector and utilisation
○ The structure of international trade
○ Foreign direct investmnt
- a narrative review and analysis of 15 sub-sectors - selected on the basis of size and potential contribution to growth
- Georgian government economic policy from 2004-2012
- Infrastructure analysis, particularly transport, electricity generation, water and sanitation
- analysis of access to Finance
The project finishes by providing a piece of binding constraints analysis, intended to show the key hurdles to Georgia achieving its long term growth potential. Using the methodology elaborated in Ricardo Hausmann, Bailey Klinger and Rodrigo Wagner (2008), Doing Growth Diagnostics in Practice: A Mind Book, Harvard, USA.