Optimization of Enterprise Georgia’s Business Processes
Client: Mendez England & Associates
Origin of Funding: USAID
The main objective of this project is to enhance the capacity of Enterprise Georgia, which is a legal entity of public law, operating under the Ministry of Economy and Sustainable Development of Georgia. It plays a critical role in executing the GoG’s objectives and policies in promoting entrepreneurship and exports, and in the encouragement of foreign direct investments (FDI) to boost economic development.
PMCG, as part of a consortium led by Mendez England & Associates (ME&A) under the USAID Georgia Human and Institutional Capacity Development (HICD) 2020 Activity, will undertake the following activities.
Enhance the operating procedures of Enterprise Georgia by:
Identifying existing and new processes;
Identifying and prioritizing Enterprise Georgia’s business processes;
Formulating goals as well as strategy and periodic action plans of Enterprise Georgia’s departments and determining target indicators for each program;
Documenting its core management and business support processes;
Optimizing and streamlining/enhancing the selected processes to ensure that the processes flow effectively and support the strategy’s implementation;
Creating an operating manual consolidating the existing process documentation and corporate policies; and
Conducting training for relevant managers and staff in reconfigured business processes, as well as their responsibilities and functions.
Deliver virtual consultancy to the Export Department managers and staff on effective mechanisms to support the private sector by:
Reviewing Enterprise Georgia’s export support measures and contemplated initiatives;
Developing overall objectives for the Export Department;
Accomplishing segmentation of Georgian companies;
Outlining its different service offers;
Sharing first-hand experience of international best practices and offering help in exploring/developing tools and mechanisms, relevant to the Georgian context, to assist the private sector;
Developing and finalizing its new export promotion services & offers;
Identifying the resources required for the implementation of new services;
Providing training/coaching sessions for relevant managers and staff of the agency on private sector support tools and mechanisms; and
Developing a recommendation paper on the effective enforcement of export support tools.
Deliver virtual consultancy to the Investment Department managers and staff about FDI attraction mechanisms and tools by:
Studying FDI-attraction-related reports and documents;
Conducting trainings/workshops for Enterprise Georgia's Investment Department on FDI attraction mechanisms and tools;
Sharing best practices and activities based on the best-case models applied by the top international investment promotion agencies that are relevant to the Georgian context; and
Developing a recommendation paper on FDI attraction mechanisms and tools.
We are pleased to announce that, after more than a year of having permanent representation in the country, we have officially opened an office in Kyiv, Ukraine. Our goal there is to engage in projects aimed at advancing the economy and supporting the development of democracy and good governance through policy, structural and administrative reforms.
We are pleased to announce that PMC Research recently became a partner of the Atlas Network through which it will contribute to making the world freer, and more prosperous, transparent and accountable, with the principles of individual liberty, property rights, limited government, and free markets all ensured.
We recently launched a new program entitled “Good Governance Fund (GGF),” aiming to reduce corruption, promote transparent and accountable institutions, and to build open, inclusive economies and societies in Armenia, Georgia, Ukraine, and Moldova.
Bolnisi Municipality is one of the most active members of the Mayors for Economic Growth (M4EG) initiative, supported by the European Union. In June 2017, the municipality joined the initiative and swiftly began the implementation of its Local Economic Development Plan, which had been commended by the World Bank’s technical experts.
Due to the COVID-19 pandemic, global remittance flows are expected to fall by 20% in 2020 (World Bank), while the decrease in Georgia is forecast at 15% (IMF);
In the first half of 2020, remittances have declined by just 4.8% compared to the same period of 2019;
Remittance inflows have been growing by an average of 8.5% over the past decade;
The contribution of remittance inflows in GDP has increased significantly over time and amounted 11% on average for the period of 2015-2019;
In 2020, remittance inflows saw a sharp drop (-42.3%) in April, however, the recovery in June was also strong (17.8%), compared to the same period of 2019;
Remittances from Russia declined the most in the first half of 2020 compared to the first half of 2019 (-27%), while Italy recorded the strongest growth (14%).
In the third quarter of 2020, Georgian economic climate has slightly improved. In this period, Georgian economists assessed Georgia’s present economic situation negatively; Moreover, the assessment of present economic situation in this quarter has improved compared to the second quarter of 2020, but worsened compared to the third quarter of 2019. In the third quarter of 2020, Georgia’s economic situation for the next six months has also been assessed negatively by Georgian economists. Furthermore, expectations for the next six months have enhanced compared with second quarter of 2020, but deteriorated slightly compared with the third quarter of 2019.
In Georgia, the average cost of a room1 in a 3-star hotel was 135 GEL per night in June 2020. While the average cost of a room in a 4-star hotel in Georgia was 223 GEL per night and the average cost of a room in a guesthouse2 was 73 GEL per night. The average cost of a room in a 5-star hotel in Georgia in June 2020 was 322 GEL per night. In Tbilisi, the average price was 471 GEL, followed by Kakheti - 327 GEL, Samtskhe-Javakheti - 279 GEL and Adjara – 273 GEL.
Using various assumptions, in Q3 of 2020, the maximum capacity of domestic tourism expenditures is to replace 33% of revenues from international tourism;
Using various assumptions, total revenues generated from tourism (both, domestic and international) in 2020 could amount to $1730 mln, which is 44.1% of the corresponding figure in 2019;
Domestic tourism in Georgia reopened on June 15th, while the reopening of borders is postponed to the near future;
The number of international travelers declined by 94.6% in May compared to the same period of 2019, while the number of inter- national visitors fell by 94.1% and the number of international tourists fell by 93.8%;
In June 2020, hotel prices do not provide an accurate guidance of the situation in accommodation market due to the fact that the market for accommodations is just starting to recover from the COVID-19-induced crisis.
It’s been five years after DCFTA was implemented and two years have passed since FTA with China. It is interesting to conduct ex-post analysis to find out how these FTAs affected Georgia’s economy. Goal of ex-post analysis will be to determine what qualitative and quantitative impacts are observed after Georgia signed DCFTA and FTA with China, on macro and sectoral levels. Also, the research paper will try to find if DCFTA and FTA with China resulted in welfare gains. To be more precise, the paper aims to determine whether the increase in trade was a result of trade creation or trade was diverted.Another aim is to analyze quantitative effects on imports and exports on different aggregation levels. For conclusion, research paper will analyze differences and similarities between DCFTA and FTA with China and based on these empirical findings, the research will identify possible threats and opportunities, which may come from future free trade agreements.