In 2014, the economic activity of the business sector decreased compared to previous years – a report prepared by the NGO “Society and the banks” says based on the data of Statistics Service.
The NGO believes that the reason for this is the deterioration of the business climate, which is mainly caused by the tightening of all sorts of regulations – in particular, the introduction of visa restrictions, a ban on the sale of agricultural land to foreign citizens. “All this has a negative effect on the business climate and a negative impact on raising capital in the country” – believe in the organization. According to the report, despite the fact that the state allocates large subsidies for various agricultural programs, however the share of the agricultural sector in the country’s business turnover decreased to 0.53 in 2014 %, although earlier it was low – for example, in 2013 this figure was 0.50%.
“This allows us to conclude that public spending in agriculture is ineffective. This is evidenced by the fact that 69 beneficiaries were registered in “Produced in Georgia” program but in reality only 27 are functioning. The fact that the development of production is recognized as the government’s priority, of course, is positive, but at the same time, all the measures should be more effective. It should also be noted that a large number of people are employed in the health sector, but the turnover of the sector is also very low. This demonstrates the inefficient use of human resources “- say in the NGO. According to NGOs, the lowest wages in the country are recorded in the education system and the restaurant business.
“Society and the banks” also emphasizes the connection of low income in these industries with another problem – the lack of qualified personnel. “The problem of lack of qualification is typical for all sectors of the economy, respectively, to solve it there should be high salaries in the education system, ” – believe in the organization. The NGO experts also emphasize the negative impact of low wages in the restaurant business on the economy. “As the tourism industry is one of the main sources of foreign currency inflows in Georgia, and its development is very important, it is important that restaurants employees were motivated and received high salaries. This is one of the prerequisites for the development of the tourism industry “- the NGO’s report says.