PMCG together with ECORYS is implementing the project for the Ministry of Justice of Georgia
Holland-based public policy consulting company ECORYS and PMCG have jointly proposed for the project “Support to the Economic Department of the Ministry of Justice of Georgia”.
Start Date: November 2008End Date: August 2010Country: GeorgiaClient: Ministry of Justice (MOJ)Development Partner: Delegation of the European Commission to Georgia and Armenia
Description of the Project:
ECORYS is the most advanced public policy consulting company in Holland. It is an international group of companies specializing in economic and social development. It works with clients in the public, private and not-for-profit sectors to apply its expertise to improve the economic and social conditions to the various countries. ECORYS™ slogan-sound analysis, inspiring ideas-indicates clearly company’s™ ability to translate the results of rigorous analysis and the latest research into creative, practical advice. To an already strong track record in applied economic research and consulting ECORYS has added services in programme management, communication, ICT applications and legal advice. The ECORYS Group has 20 operating companies and over 560 staff to serve the interests of clients.
PMCG, together with ECORYS, is implementing the project that will provide support and assistance to the staff of the Economic Department and the service delivery departments in budget preparation, execution and reporting. This project, Support to the Economic Department of the Ministry of Justice of Georgia, Project number 165436, is part of a targeted program of assistance in financial management reform in five key line ministries, that is, the Ministry of Justice, the Ministry of Health, the Ministry of Agriculture, the Ministry of Education and the Ministry of Culture.
The Support to the Economic Department of the Ministry of Justice of Georgia Project will focus on delivering three key outputs. These are: (i) Improved Medium Term Action Plans (MTAP’s™); (ii) Improved output based budgets and financial management reports; (iii) Development of output based budgeting and financial management reports modules for MoJ’s™ ORIS Manager 2 system.
The project will provide support and assistance to the staff of the Economic Department and the service delivery departments in budget preparation, execution and reporting.
The project will assist the Ministry to address most of these challenges:
Output 1 of the project will provide significant technical assistance and support to the Ministry during two budget cycles in reviewing its planning documents in general and its Medium Term Action Plan (MTAP) in particular;
Output 2 of the project will support the staff of the service delivery departments and the Economic Department as they work to improve the Ministry’s™ key performance indicator. Particular attention will be paid to performance indicators relating to quality of services delivered.
The project will also assist in the development of output based budgets and reports rather than the traditional organizational structure budgets;
Output 3 will develop an outputs based budgeting and reporting module for inclusion in the Ministry’s ORIS Manager 2 system;
Output 3 will improve the quality of and facilitate the preparation of Medium Term Action Plans, reports of actual and budgeted services delivery levels and the expenditure incurred in the delivery of those services;
The project does not have the resources to support the development of a credible internal audit system in the Ministry. The Project believes that the Office of the Inspector General does not have the training, equipment, experience or culture required to deliver basic internal audit programs within the timeframe of the project.
PMCG Management attended 2008 Annual Meetings of the International Monetary Fund and the World Bank
On 13-14October, 2008 PMCG Chairman of Board Mr. Aleksi Aleksishvili and Public Sector Consulting Managing Director Mr. Zaza Broladze participated in IMF/WB annual meeting in Washington DC. MPCG representatives discussed the current and potential projects with delegations of developing and transitional countries in which. PMCG has been successfully implementing projects funded by international organizations. The projects generally foresee introduction of successfully lead Georgian structural reforms in these countries.
PMCG’s management also had meetings with leading consulting representatives companies in Washington and New York and discussed the future cooperation plans in the region.
PMCG founder visits ECORYS head office in Rotterdam
In September 28-30 PMCG founder Mr. Aleksi Aleksishvili visited ECORYS, the leading public policy consulting company in Holland
ECORYS is the most advanced public policy consulting company in Holland and the main aim of Mr. Aleksishvili’s visit was to learn from ECORYS’ experience and to establish business contacts with this company.
ECORYS is an international group of companies specialising in economic and social development. It works with clients in the public, private and not-for-profit sectors to apply its expertise to improve the economic and social conditions in various countries.
ECORYS’ slogan - sound analysis, inspiring ideas - indicates clearly the company’s ability to translate the results of rigorous analysis and the latest research into creative, practical advice. To a strong track record in applied economic research and consulting ECORYS has added services in programme management, communication, ICT applications and legal advice. The ECORYS Group has 20 operating companies and over 560 staff to serve the interests of clients.
During the visit, Mr Aleksishvili met with the management of the company, and consultants of the following units:
Macro & Sector Policies
Sector Region, Strategy & Entrepreneurship
Environmental & Natural Resources
PPP and Financial Advisory Services
The plan of ECORYS/PMCG future relations was established and it will cover regional collaboration and PMCG participation in ECORYS framework contracts.
PMCG has become the member of French Business Council- Georgia
On 6 August, 2008 the board of the French Business Council- Georgia approved PMCG’s membership in their organization. The FBC- Georgia has been setup to foster business relationship between France and Georgia.
Goals and objectives of the FBC- Georgia are:
To constitute a platform of communications between the two countries
To promote trade, commercial partnerships and French investments
To collect and provide economic/financial information, statistics and guidance
To act as business consultant or advisor for French investors
To organize, promote, sponsor commercial events in France and Georgia
To liaise with other organizations ICC, EUGBC, MEDEF, CCE, CCIs
The president of The FBC- Georgia is Mr. Gilbert Hie – CEO of Bank Republic, Societe Generale Group.
The FBC– Georgia’s founders are Bank Republic JSC, Sen Michel LTD, GWS LTD, Castel Sakartvelo LTD, GG &MW (Borjomi) LLC, Georgian Properties LLC, Agritechnics Holding LLC, Georgian Chamber of Commerce and Industry, Chamber of Commerce and Industry of Meurthe et Moselle (France).
According to the contract, PMCG will prepare budget management system explanatory documentations for the Ministry of Defense of Georgia.
Start Date: July 2008End Date: August 2008Country: GeorgiaClient: Ministry of Defense of GeorgiaFunder: UGT
Description of the Project:
UGT is implementing a significant project to modernize ICT infrastructure for the whole system of the Ministry of Defence and they have contracted PMCG to prepare a budget management system explanatory documentation for the Ministry of Defense of Georgia. This covers the following activities:
Defining existing budgetary procedures and setting additional requirements for a desirable system in the Ministry of Defense of Georgia;
Rechecking the existing processes and desirable future processes relevant to the legislation and, if needed, to offer the recommendatory amendments to the Ministry of Defense of Georgia;
Presenting information obtained in the form of documentations which will have the following subtitles:
The goal of the document;
Description of the working activities to create documentations;
General description of budget management system;
Organizational structure of the Ministry of Defense of Georgia involved in the budgeting system;
Existing business processes (presented in graphical and textual forms, describing for each unit of the Ministry of Defense of Georgia);
The desirable future business processes for the Ministry of Defense of Georgia (presented in graphical and textual forms).
Policy and Management Consulting Group joins ICC-Georgia
On June 4 the PMCG, represented by Mr. Aleksi Aleksishvili, became the latest business group to join the International Chamber of Commerce-Georgia.
Mr. Aleksishvili, who has held several government positions in addition to the post of Finance Minister, will chair ICC-Georgia's Commission on Customs and Trade Regulations.
This commission is one of more than a dozen expert commissions chaired by leading members of Georgia's business community.
The input of Mr. Aleksishvili and other respected figures is a key part of what makes ICC-Georgia the country's most dynamic and representative business chamber.
"I am proud to welcome Policy and Management Consulting Group to our business organization, and very pleased that Mr. Aleksishvili will helm one of our expert committees," said ICC-Georgia Board Chairman Fady Asly.
"Mr. Aleksishvili's formidable experience in business and government will be invaluable in promoting our members' interests in customs and trade regulation."
ICC-Georgia is the Georgian national committee of the International Chamber of Commerce, a global business organization which unites hundreds of thousands of member companies from over 130 countries into a representative body which speaks with authority on behalf of businesses worldwide.
The PMCG is undertaking business analysis for the TAM AIR airlines
A group of consultants from PMCG is undertaking business analysis for TAM AIR airlines in order to prepare the company’s business development strategy.
The project was recently approved by the EBRD’s BAS program and awarded a grant in the amount of EUR 9000. PMCG and TAM AIR airlines intend to apply for the EBRD’s TAM (TurnAround Management) program as the next step for the company’s management to acquire new business skills and receive hands on assistance from the industry specific management experts. It is expected that an advisor will be appointed in October 2008 to work with management of TAM AIR airlines for 18 months on a peripatetic base.
The BAS Program, administered by the TurnAround Management and Business Advisory Services Program Team at the European Bank for Reconstruction and Development, has been established in order to assist the development of small and medium-sized enterprises. The BAS Program has gained considerable experience in providing practical business advice in many countries, and BAS Programs have had a broad impact on developing the critical SME sector supporting over 3,000 advisory projects with enterprise clients so far.
PMCG and ERP (Lithuania) are jointly applying for the WB funded project in public finance “Updating integrated budgetary/financial reporting system for the Ministry of Finance of Georgia”.
Start Date: January 2009End Date: July 2010Country: GeorgiaClient: Municipal Development Fund of GeorgiaFunder: The World Bank
Description of the Project:
PMCG and ERP consortium had expressed their interest in the above mentioned project.ERP is a management consulting company, established in Lithuania in 2002, serving clients in both public and private sectors. It provides business and technology strategy, education, systems design, architecture, technology innovation, applications implementation, systems integration and management services. ERP has expanded its operations to cover all Baltic States, Finland, Ukraine, Belarus, the Russian Federation, Kazakhstan and Georgia.
The Government of Georgia has applied for financing from the IDA toward the cost of the Regional and Municipal Infrastructure Development Project (RMIDP), and intends to assign part of the proceeds to a consultant services contract to update the integrated budgetary/financial reporting system for the Ministry of Finance of Georgia. The overall objective of the proposed services is to improve the budget-financial base of the territorial entities (in respect of expenditures) and administration of municipal budgets through the updated program - based on the new classification (Government Finance Statistics Manual - GFSM 2001).
Applying to the above mentioned project, the consortium plans to coordinate PMCG’s knowledge of Georgian public sector and ERP’s experience in ICT. PMCG and ERP consortium’s combined key professional staff required for this assignment are experienced in the elaboration of budget programs, legal framework, and collaboration with the local institutions.
PMCG established consortium with WYG International (UK)
In June 2008, The consortium of PMCG and WYG International are jointly participating in the WB funded project “Preparation of the functional and technical design of the Public Financial Management System (PFMS) for the structural units of the Ministry of Finance of Georgia”.
Start Date: September 2008End Date: February 2009Country: GeorgiaClient: Ministry of Finance of GeorgiaFunder: The World Bank
Description of the Project:
The project will be conducted by PMCG and WYG International consortium. The latter is an international multi-disciplinary consultant with over 3000 staff located in more than 30 offices providing a comprehensive and co-ordinated range of high quality socio economic, planning, environmental, engineering, surveying and management services to a diverse range of clients in the public and private sectors.
The project first arose in 2006 when the Ministry of Finance of Georgia endorsed the Strategic Vision for Public Financial Management Reform. This document presents a diagnosis of the challenges faced by the Georgian Government in public financial management and provides directions for implementation of this vital reform. Strengthening budgeting, accounting and reporting mechanisms and practice is one of the key elements of this Strategic Vision.
In order to realize this Vision, that intends to develop, procure and implement an integrated Public Financial Management System (PFMS). To assist in the PFMS functional and technical design and preparation of technical requirements PMCG and WYG International consortium will provide advisory services covering all important aspects of the PFM cycle (i.e. budget preparation and execution, cash and debt management, loan management and restructuring, revenue planning model, treasury operations, public accounting, financial reporting, procurement, human resources management, payroll calculations, financial control and auditing) and related Information and Communication Technology (ICT) solutions.
PMCG founder mr. Aleksi Aleksishvili announces customs training program for businesses
Mr. Aleksi Aleksishvili presented a new program to train businesses to navigate Georgia's customs regulations at a roundtable meeting for the International Chamber of Commerce-Georgia (ICC-Georgia) on June 19 at the Tbilisi Marriott.
Former finance minister Aleksi Aleksishvili said the program and accompanying training center will facilitate international trade and business activities. The program will give instructions on Georgian financial legislation and procedures, including customs and tax rules. It will also study problems frequently encountered by Georgian businesses. Fady Asly, chairman of ICC-Georgia and an investor in this newspaper, said the program will help businessmen to remedy the headache of unnecessary papers by sharing the easiest ways to navigate tax and customs operations. Aleksishvili said the center’s instructors would be chosen for their rich practical and theoretical experience. The focus will be on an international software format which allows businesses to fulfill customs responsibilities from offices, he said, avoiding extra time and expenses on mediators.
Aleksishvili said the course will be very flexible in timing and price; the project has USD 80 000 in funding for its first year, according to the ex-finance minister, with several other sources of funding interested in sponsoring the center. Aleksishvili of PMCG, one of the most recent business groups to join ICC-Georgia said that he did not want to enter ICC with nothing to propose, and made the training center his first project as an ICC-Georgia member. ICC-Georgia is the national committee of the International Chamber of Commerce, a worldwide business organization with its headquarters in Paris.
PMCG, as part of a consortium led by B&S Europe under the EU’s SIEA Framework Contract Lot 3, together with Evoluxer S.L., has recently started working on a mid-term evaluation of ten projects, conducted by the EU during 2017-2020 concerning comprehensive reform of public administration in Ukraine.
On July 9, Georgia’s Digital Transformation Consortium, initiated by Georgia’s large- and medium-sized IT and consulting companies and serving as an open and collaborative platform based on a public-private partnership model, was signed by about 40 representatives of the IT industry, consultants, academics, and industry associations at Georgia’s Innovation and Technology Agency (GITA).
We are working to contribute to the promotion of equal-opportunity access to employment and relevant skills training for both women and men under the European Bank for Reconstruction and Development (EBRD) Bakuriani Municipal Services Project - Inclusion & Gender Consultancy.
We recently launched a new project, aiming to strengthen knowledge and capacities regarding the design and implementation of free trade agreements (FTAs) of all countries of the Central Asia Regional Economic Cooperation (CAREC) program, which represents a partnership of 11 countries (Afghanistan, China, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Mongolia, Uzbekistan, Turkmenistan, Pakistan, and Tajikistan) and development partners working together to promote development through cooperation, leading to accelerated economic growth and poverty reduction, guided by the overarching vision of “Good Neighbors, Good Partners, and Good Prospects.”
In 2021, unemployment remains an unresolved obstacle for the Georgian economy and society’s most pressing problem. Over the years, diverse public opinion polls have indicated that unemployment is the most important issue at national level. For instance, in 2020, according to a public attitudes poll conducted by the National Democratic Institute, for 46% of respondents, the main challenge they were facing was unemployment.This issue focuses on changes in unemployment trends in Georgia in the period of 2017-2020 and provides an analysis of the effects of the COVID-19 crisis on unemployment in the country.
The wine industry in Georgia has experienced strong growth over the past decade in all key indicators such as exports, turnover, and employment and salaries (measured both in GEL and in USD). The financials of the sector have also looked impressive during this time.
The number of international travelers increased by 294.2% in June 2021 compared to the same period of 2020, and declined by 82.1% compared to the same period in 2019. Meanwhile, the number of international visitors increased by 286.8% (2021/2020) and declined by 79.8% (2021/2019), and the number of international tourists increased by 361.6% (2021/2020) and declined by 71.7% (2021/2019);
In June 2021, the number of visitors from Israel, Ukraine and Kazakhstan recovered to approximately 75% of their June 2019 levels;
During the period of 2018-2021, average hotel prices in Georgia peaked in 2018, gradually falling in 2019 before plummeting in 2020;
Prices of 5-star hotels experienced the highest volatility, while the prices of guesthouses were most stable;
In June 2021, the Hotel Price Index increased by 1.5% compared to the corresponding month of 2019, mainly driven by positive expectations about tourism’s recovery, as well as the low base effect due to the shock (Russian flight ban) in June 2019.
In Georgia, the average cost of a room in a 3-star hotel was 136 GEL per night in June 2021, while the average cost of a room in a 4-star hotel in Georgia was 243 GEL per night and the average cost of a room in a guesthouse was 81 GEL per night. The average cost of a room in a 5-star hotel in Georgia in June 2021 was 496 GEL per night. In Guria, the average price was 739 GEL, followed by Tbilisi - 644 GEL, Kakheti - 470 GEL and Adjara – 457 GEL.
The COVID-19 pandemic and the subsequent Great Lockdown have affected investment flows all over the globe, especially in emerging markets. According to UNCTAD, global Foreign Direct Investment (FDI) flows dropped by 35% in 2020, to $1 trillion, from $1.5 trillion in 2019. This is almost 20% below the 2009 levels after the global financial crisis. Moreover, the number of newly announced greenfield projects in developing countries declined by 42% in 2020 compared to 2019. To assess the impact of the crisis on the FDI flows in Ukraine, it is crucial to have a snapshot of the pre-crisis situation along with developments in 2020.
This bulletin focuses on remittance inflows into Georgia in 2020 and its development in 2021.
The social and economic stability of Georgia strongly relies on the money sent from emigrants to their families. Based on World Bank Data, in 2019, in terms of dependence on remittance inflows, Georgia ranked 21st in the world, with remittance inflows to GDP ratio. Moreover, the study conducted by the State Commission on Migration Issues revealed that in 2016 money sent by every second emigrant to their families accumulated half or 3/4 of family budget, and for the 15% of families remittance was the only source of income in Georgia.
The COVID-19 pandemic and imposed restrictions hindered economic activity in nearly every country, resulting in a negative effect on wages and employment for migrant workers and consequently, drying up of remittance inflows. In 2020 due to the emerged crises and uncertain situation, the World Bank projected shrinking remittance flows for low and middle-income countries by 7.2%3, while the IMF forecasted a 15%4 decline for Georgia. However, despite the crisis and pessimistic predictions in Georgia, the volume of remittance inflows in 2020 compared to 2019 has increased by 8.8% and reached the highest figure in the past decade - 1.9 BLN USD, amounting to 11.9%, expressed as a percentage to GDP.
According to this survey of Georgian economists, the economic climate in the country in the second quarter of 2021 is better than the first quarter of the same year. Georgian economists’ assessment of the current situation has improved, compared to the previous quarter and corresponding quarter of 2020, but nevertheless remained negative. The economists’ predictions for Georgia’s economic situation for the next six months were also negative. Their expectations for this period improved though, compared to their predictions in the first quarter of 2021, and were considerably more optimistic than the forecasts they made at the same time last year.
The number of international travelers increased by 141.6% in April 2021 compared to the same period of 2020, and declined by 86.8% compared to the same period in 2019. Meanwhile, the number of international visitors increased by 140.4% (2021/2020) and declined by 85.0% (2021/2019), and the number of international tourists increased by 182.2% (2021/2020) and declined by 78.2% (2021/2019);
The number of visitors to Georgia from Israel in April 2021 recovered to 70% of its April 2019 level, with its share in total visitors amounting to 12.2%;
Georgia’s four neighboring countries accounted for 71% of total visitors in 2019. None of these countries had vaccinated more than 20% of their population as of May 23, 2021;
Some countries that stand out for their high vaccination rates among Georgia's key source markets include Israel (63% of the population), United Arab Emirates (61%), the United Kingdom (56%), Hungary (52%), the United States (49%), and Finland (41%). Most EU countries have a rate of around 30-40%;
In April 2021, the Hotel Price Index decreased by 2.3% compared to the corresponding month of 2019, mainly driven by a price decline of 27.4% in Adjara.
In Georgia, the average cost of a room in a 3-star hotel was 132 GEL per night in May 2021, while the average cost of a room in a 4-star hotel in Georgia was 246 GEL per night and the average cost of a room in a guesthouse was 82 GEL per night. The average cost of a room in a 5-star hotel in Georgia in May 2021 was 402 GEL per night. In Guria, the average price was 600 GEL, followed by Tbilisi - 509 GEL, Kakheti - 432 GEL and Adjara – 391 GEL.
The research objectives are to examine the challenges that exist in the civil servants’ professional development system, in general, explore barriers specifically associated with the shift to online learning, assess the readiness of civil servants for online training, and develop recommendations to increase the effectiveness of remote teaching.The research methodology is based on a mixed-method design and combines qualitative and quantitative approaches: analysis of the existing documents, interviews with key informants, focus group discussions, and a computer-assisted telephone survey that is representative for professional civil servants working in the councils and town halls across the country. In order to provide in-depth analysis of the issue, the research draws on the perspectives of multiple stakeholders, including civil servants as well as representatives of the Civil Service Bureau, international organizations, and training centers.