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Speeches & Statements

5/11/2011
The President of Georgia attended the National Business Awarding Ceremony "Mercury 2011"

Greetings.

I want to congratulate Vera Kobalia and thank her for her innovative approach, because earlier these meetings were boring and dull, everything lacked live and energy, now we meet in this beautiful building - Center of New Technologies with new faces. New faces have appeared among them in music and what's most important very many in the Georgian business.

I remember the first meeting held with Georgian business sector after Rose Revolution, in order to calm them down and tell them everything should be all right. Since the first meeting I think only Temur Chkonia remained - this man will remain with every government and will say his word everywhere. A serious renovation has taken place indeed. By the way the new Minister of Economy has given a new life to the Ministry. One of the foreigners who visited this ministry told me a couple of days ago that starting with a security finishing with the secretariat of the Minister totally different people work there. What's very important there is new aspiration and business climate, everyone works day and night, they permanently build something and are striving for something new.   

By the way recently one of the representatives of the opposition criticized us on TV and said: Saakashvili resembles Stalin, he has insomnia, he can call a Minister at 3 AM, then the Minister will call the Head of the Department - is this life? People must have weekends for rest, they must go home at 6 o'clock, mustn't need to wake up early in the morning... so to say they must have relaxed and still lives. We still have a lot to do ahead, we were left behind in many things, we need to do a lot to catch up with others. However it should be said that there are companies that have changed a lot, but these companies work mainly in limited spheres and we have new spheres to develop. On the one hand we have passed a very long way in regards of economic development, but when we say that Georgia must become another Singapore we don't mean we have to annul political freedom the way they did for decades and we are not either going to restrict chewing gums - like they do there. Our economic model should be as liberal as they have and we must use our geographic location as they did in Singapore. But all this is founded on the agreement of people, long political process and stability, what is possible only in those conditions, when citizens are following us. The main thing what our citizens demand from us is employment that are created by you. We have several major spheres that we have a chance of employment in several years - it is hydro energy, infrastructure, agriculture and tourism. The construction of Kudon, Vartsikhe and Neskra plants will start this year, re-equipment of Khram hydroelectric station, also construction of small plants. We are going to install wing generators in Javakheti that will produce several hundred megawatts of electric energy. Energy is one sphere. Next year we will spend 700-800 millions of dollars on road construction. We will do what other countries did in order to enter EU - the major achievement for Baltic Countries and Eastern Europe was that they constructed roads for them. It is true that we will not be in EU yet, but we will have good roads everywhere in unoccupied part of Georgia. These are infrastructural projects that will employ tens of thousand locals. There is a perspective of employment in the sphere of construction as well that is going on in an intensive way.

A very good initiative had the Mayor's office. In particular, a land was procured for 400 USD and it was possible to restart and finish abandoned construction.  

For example in Batumi constructions had never stopped. By the way we have to say - and it is our shame - that the only constructions that stopped in Batumi are the ones that Georgian development companies had to finish. Georgian business people should start thinking about it, however I think by the help of Tbilisi Municipality.

In various regions of Georgia, for example in Kutaisi construction will start because we are moving our Parliament there. Georgia government will spend certain time in Kutaisi, because we are a small country and we must have mobile government that will permanently move throughout Georgia. This is a very important phase of the development of this region.

We are changing country's geography in regards of infrastructure. Everything was concentrated in Tbilisi earlier. Tbilisi is a very important center of Georgia and the whole Transcaucasia, Armenia, Azerbaijan and other countries are attached on. So to say it is not only the capital of Georgia, but also of Caucasia. However the development of whole world goes in direction of sea; now Turks are going to construct much bigger canal on Bosporus in Mediterranean direction and Black Sea will become an open sea. When 80 percent of world development goes in the direction of sea it is impossible not to have a center in Georgia. This is why we are creating two centers - Batumi, as the economic and financial center, where the construction of huge office-buildings had already started and we have Kutaisi as Parliamentary capital, where many government bodies are already concentrated. That what concerns infrastructure.

Second is agriculture.

Today here are presented companies and it is good that they received prizes. We have huge potential in this field and we can triple even have five times more agricultural production in Georgia.

What happens in the sphere today is not because we had an easy life - agriculture in Georgia is very backward. This is why termination of progress is impossible. In reality, those who try to stop land cultivation and create constraints to the land economic traffic - oppose Georgia's progress.

Same people owed lands - former prosecutors, former heads of administrations, former secretaries of rayon commissions, but Georgia needs land cultivation - Georgia must feed itself.

Those who owed lands by corruption will have to make some compromise for those who is going to cultivate these lands and feed Georgia by this.

Third is a very long-term sphere - tourism. When this government came to the leadership we only had 125 tourists per year. We had 2 million tourists last year and will have three million this year, next year we are expecting four million and after that maybe five million. If tourism will develop this way, maybe we will have 5 million tourists earlier than 2015. This is a very important change, because this sector fully works on employment - on long-term employment. 

Construction, infrastructure all are short-term projects, tourism is a long-term employment source.

However energy and construction gives birth to hydroelectric stations, hydroelectric stations - to new plants. It follows by the development of metallurgy, chemical industry, fuel processing and the development of economy. Georgia must take the same function that has Singapore. In reality our country must become an energy terminal - energy center, at the same time agricultural and tourism center within the region.

What can we create that will put us in the position of advantage in every situation. What does this mean? For example in Russia there is huge corruption and they have huge flow of capital out of country. Georgia must take part of this capital, because there is no corruption in Georgia and we have everything here what Russians dream about. Economy is very well developed in Turkey and they have huge capital there. In this competition we have small advantages and this is why we must use Russia's lack of success and Turkey's success in order our country to become a center of attracting Turkish surplus capital and turn Georgia into a center of investment attraction. Same could be said about for example Mid Asia and other countries, where they have oil - compare to us. But we have whatever they don't have - we have no corruption, we have no bureaucracy, there are no prevailed actions from the side of government atc. We have everything in order to become a center of this region. Finally Georgia looks better than any of those countries, because it is a country, where there is tourism, nature, beauty, everything extraordinary - what we all are proud of. Sure we made many mistakes, some times we had some excesses as well, we have made many good changes, we had less effective changes, but this is why we are in a regime of permanent dialogue in order to study many things from one another. Give us advices how to do everything so to have continues progress in the condition of permanent reforms.

My dear people, the main thing is that we have an unique chance now - because Georgia has reformative government that has support of our society during the process of fulfillment of reforms. A Commonwealth of Business had formed that understands its social role very well first of all in regards of their own businesses and then sure in regards of country, because reforms are pretty long-term. This government is ruling less than seven years. Seven years is nothing in regards of history. For mentality change it is necessary to change it on every level. I think that 15-20 years is minimum time for change and choose irresistible way towards wealthy country, because we still are poor.

In the nearest future GPD will reach 5 thousand USD per capita, but it is still very low indicator, of what it has to be. By 2015 this indicator will double and we will have 10 thousand USD package.

The main thing is that Georgia has to turn into the fastest growing economy throughout the Europe because on one hand we should have European political system - freedom, democracy, political stability and on the other hand we must have a liberal economy model like it is in Singapore. This is necessary in order to catch up with developed countries and overcome that backwardness that we had during the decades.

This is why now, as never before our close cooperation. We now have political stability despite our enemy's tricks, nothing will shake this any more. We have continuous course and this is very important. We also have a good new constitutional model that will get into force in the nearest future - this creates much more balance, makes Georgia's management more cooperative and extends the involvement of every single society member. We must bring all of this in order to make sure Georgia makes a jump forward. 

Despite the fact that we had lost many things and world economy is not in the ideal shape and if we work hard and no catastrophe will happen in the world our ambition is Georgia's economy to return to double digits.  

I would like to note once again how many billions are spent on hydroelectric stations and roads, so many investments come and all of us have to work in order to get Georgia back to ten percent and more growth. We need several years of such growth in order to get back to the indicator before the crises and war and to rapidly move to where we need to be. In order to overcome these decades of backwardness we must do a lot. You know that we are working hard in educational system in regards of reforms. Yesterday I met the teachers with one thousand GEL salaries first time - we have hundreds of them in Georgia. There were radically different people in hall, with different energy and intellect, with totally different interest and it must extend on every level in the same way.

Within the government, business circles, within the spheres of education and culture on every level - not only in the Government but in every sphere the permanent renovation blood is required. 

So to say we must start new movement with new words, new faces, new blood, because without movement immobility threatens us.

We have a right on it. For Georgia and those generations that live in Georgia - this is really a historic mission.

I want to express my gratitude once again. Now I will nominate the new winner and it is company "Silknet". "Silknet" is a very good company indeed, but I want to thank George Ramishvili for the construction of Radisson Hotel in Batumi that I have visited several days ago during my visit in Adjara. We have started the construction of this hotel in conditions when no one believed in finishing of it, but we had made it all through the end. Thank you for this as well. Please continue in the same way.




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