Greetings!
We are now at the University with a very good name.
Not only the conversation with you is important for us, but at the same time it's important to see what happens here, to listen to your opinions.
First of all I would like to express my gratitude to Kakha Bendukidze, for what he does.
We have seen many people, who returned to Georgia with successful business career, with a very good image and many of them proved themselves to our country.
Kakha Bendukidze did one of the best things in Georgia. He was the Minister of Economic Development in the hardest period for Georgia. After leaving the government he, differing from some former members of the government, didn't become embittered, because he is a self-satisfied person and he never has a problem of doing some other great things.
There is no other important job in our country than implementing education in the country and introducing new standards in our education system.
I saw those laboratories, where you study Chinese, Japanese, Arabian, Turkish languages. It is not my obstinacy. This is a tool for people to reach something in their lives.
Here we have two considerations. Someone was saying on certain TV channels: Georgians didn't need English for three thousand years and why do we need it now... There are two ways of thinking - Georgians were always curious people. If you read "The Knight in the Panther's Skin" carefully you will see that the whole universe is described there. When you are a small country that wants to reach success and fights for existence it is impossible not to know what is going on in the rest of the world and it is impossible not to want to become part of this world, especially a successful part.
If you look carefully you will see that Georgians were always individually successful people.
We all know that those barbarians threw on us rockets created by Nadiradze and they occupy 20 percent of our land now. One more Georgian, a citizen of Kutaisi was appointed a director of their new technological center.
Many of us know pretty well Kartvelishvili, who created the first flying apparatus in America. Not long ago I found out, who created modern video-player. It was someone Rcheulov - Rcheulishvili, who had invented, created and patented the first video-player in the history. This man worked in Europe and America.
I am not saying anything about Georgian public figures, Georgian military commanders, Georgian architects... One of the most beautiful, but least famous place in the world that is no less than Venice is Isfahan. Alaverd Undiladze constructed it. Alaver-Khani Bridge is better than Ponte Vecchio in my opinion. The whole city is very beautiful. This is a special expression of the Georgian talent.
Georgians used to reach success around the world, but now the time have come, when Georgia should reach success around the world.
I have decided to come to this University, because here business and economic directions are very strong. Though physic faculty is being opening here as well and a great interest is showed on IT sphere.
Two days ago it was officially declared that we became champions in regards of economic reforms. We were champions in judo and free wrestling, before that in female-chess, but this time we are champions in carrying out world economic reforms. This is an official result of the survey carried out in 178 countries. Georgia took the first place within last five years in regards of simplicity of doing business and the reforms carried out.
This means that no other government around the world has carried out so many reforms for improving economic conditions for people as the Georgian government has.
This is not PR of Georgian government, this is not either an attempt to sell lies for truth, because it is written quite clearly: "simplicity of doing business". Those, who never needed English for three thousand years might not know English, but we will translate this information for them. It means that we have huge progress and great chances.
Recently I was informed about it and I have one more good news - by the last report of UN Human Development index Georgia was granted 74th place. This is not such a good indicator that we have in the previous survey, but we are moving forward. In 2005 we were on 96th place, in 2009 on 89th place. Including 2009, Georgia belonged to middle group of human development. It is defined by several criteria: people's income, level of healthcare, education, poverty, equal rights, gender impartiality, sustained development and people's security.
We have moved to the group of high development. According to the data given in this survey only oil obtaining countries are ahead of us on post Soviet territory.
Third news is not good: according to the last data of statistics department, the unemployment rate reaches 30 percent. If we count the number of pensioners it means that almost every fourth person is partially or fully unemployed. This is a catastrophically high indicator.
This is why when wheat and flour prices increase by 10 percent on world stocks, and this automatically is reflected on the prices of meat, buckwheat and on the primary products, we must understand that this hits first of all the socially unsecured people, because no matter what digits I would name, we still have a long way to reach sufficient level of development.
It is no problem for the Japanese people if the wheat price increases by 10 percent, for Estonians it is a very small problem as well. For Georgia it is a huge problem, because we are not at the sufficient stage of development.
We will partially influence these prices. We can produce more products and get income from selling them. For example in Azerbaijan meat costs 17 USD. If we increase the amount of meat we will sell a certain part of it.
We can raise the level of our life, give our people a chance not to get frightened in case of some political cataclysms or natural disasters in certain countries.
How should we fight with unemployment in our country or even in our capital and how should we change the situation for better?
Georgia has three major directions of economic development that will enable us to double our nominal income per capita within upcoming five years and transfer to the highest category. Now we have moved from the low category to high, but there exists the highest category as well - there are some Eastern European countries, Israel and other countries in that category as well.
What do we need to do?
There are three sectors of our economy - infrastructure, tourism and agriculture.
What does infrastructure mean?
First of all it is hydro energy. During last several months we calculated that in the nearest future in about 7-8 years we will be able to attract almost five billion USD in order to develop hydro energy. It means that 5 billion USD will be invested in constructing new weirs, new turbines, new power assets. This means that money is invested in the creation of new jobs, in the implementation of new technologies and receiving education.
Maybe the name - Nenskra doesn't mean anything to you? You don't know what is Nenskra, do you? I knew it. I am sure that no one knows this name. Nenskra is a place in Svaneti. We are planning to start the construction of 600-mega watt hydroelectric station. This will be half of Enguri weir size and it is about 600 to 800 millions of investment.
You might have heard about Khudoni, because there have been talks about this place. In reality chances are to start the construction by the end of next year or in the beginning of 2012 and 800 millions will be invested in the construction of Khudon power plant. These are additional 800-900 mega watts that can be produced by this hydroelectric station.
Besides this we are gathering money for Namakhvani power plant. In reality, according to our and Turkish-Korean consortium calculations this investment is worth 700-800 million USD. This new consortium is at the capital gathering stage and we hope that we will start construction of this power plant next year as well. What does the construction of new power plants mean? These are about 1000 persons employed only at the construction site; these are people who will be employed in the future as well.
I am not against finding lots of oil in Georgia tomorrow I would only be very happy if it happens so, but hydro energy of these scopes is very capacious resource from the technological point of view and it gives us a chance to develop human capital in our country. The work of many people is needed in order to create these all. It doesn't happen simply - hydro energy is not a bore in the ground - hydro energy means construction, implementation of many new technologies and new transmission of electric energy, this all on its turn develops people of course.
After finishing the construction, this all becomes your production and your export. Today we say that we have inadequate trade balance. We have it because import of fuel is taking place in Georgia. The development of this sphere gives us a chance to transfer to a new technology. Our government is holding negotiations to various companies around the world that we have declared such a course in saving on governmental resources. We want to decrease our auto-park in the government sector (including not only deputy ministers' cars, but at the same time police, fire fighting service, ambulance) three times and the rest that will remain to be electro mobiles.
Why electro mobiles?
First of all this is an issue of principle, we pay them money from our own pockets on the daily basis - among them to those, who has occupied 20 percent of our land and second - electricity is cheaper in our country; plus it is more technological and more beautiful.
Georgia must have something like this - psychologically it creates different climate. It is necessary for Georgia to develop and become more attractive for the rest of the world. And in order to finish it all we have cheap resources even today, we pay less expensive price in natural gas, because we are located close to the countries rich with energy resources.
Second structure is tourism. Georgia has incredible tourism potential. I have heard often that we are a small country and other rather bigger countries then us have bigger coastlines, some countries have more mountains than us...
Look carefully - Russia is such a big country. Tell me one place that could come close to some place in Georgia in regards of tourism potential.
Why it is such a big development in Sochi? It is huge difference between Adjara and Sochi. This is the only place there that looks like a resort. For example if you are going to Dagestan via Kakhetia on many places there is practically dry land - beauty is on the other side.
This side of Mkhinvartsveri is much more beautiful than the second one.
Unfortunately this was the reason why we attract bad and good interests of our adversaries. This was a well-kept secret for them - they knew the price of our land and didn't want others to know as well.
Now historic process is going on, because others get to know how big is tourism potential in Georgia.
Georgia has three main directions in economic development, which will bring a breakthrough in next few years in order to double per capita at nominal values in next five years and transfer country to the highest category. Now we have moved from the low category to high, but there exists highest category as well - there are some European and Western European countries, Israel and other countries in that category as well.
What do we need to do?
There are three sectors of our economy - infrastructure, tourism and agriculture.
What does infrastructure mean?
First of all it is hydro energy. During last several months we have calculated that in the nearest future in about 7-8 years we can attract about five billion USD in order to develop hydro energy. It means that 5 billion USD will be invested in constructing new weirs, new turbines, new power assets. This means that money is invested in the creation of new jobs, in the implementation of new technologies and receiving education.
Maybe the name - Nenska doesn't mean anything to you? Do you know what is Nenska? Don't you? I knew it. I am sure that no one knows this name. Nenska is place in Svaneti. We are planning to start construction of 600-mega watt hydroelectric station. This will be half of Enguri weir size and it is about 600 to 800 millions of investment.
You might heard about Khudoni, because there have been talks about this place. In reality chances are to stat the construction by the end of next year or latest in the beginning of 2012 and 800 millions will be invested in the construction of Khudon power plant. This is an additional 800-900 mega watts that can be produced by this hydroelectric station.
Besides this we are gathering money for Namakhvani power plant. In reality, according to our and Turkish-Korean consortium calculations this is investment worth of 700-800 million USD. This new consortium is at the capital gathering stage and we hope that we will start construction of this power plant next year as well. What does the construction of new power plants mean? These are about 1000 persons employed only at the construction site; these are people who will be employed in the future as well.
I am not against and I would be very happy if we will find lots of oil in Georgia tomorrow, but hydro energy of these scopes is very capacious recourse from the technological point of view and it gives us ability to develop human capital in our country. The work of many people is needed in order to create these all. It doesn't happen simply - hydro energy is not a bore in the ground - hydro energy is construction, implementation of many new technologies and new transportation of electric energy, all of these on its turn develop people of course.
After finishing the construction all these becomes your production and your export. Today we say that we have inadequate trade balance. We have it because import of fuel is taking place in Georgia. The development of this sphere gives us a chance to transfer to a new technology. Our government is holding negotiations to various companies around the world that we have declared such a course in saving on governmental resources. We want to decrease our auto-park in the government sector (including not only deputy ministers' cars, but at the same time police, fire fighting service, ambulance) three times and the rest that will remain to be electro mobiles.
Why electro mobiles?
First of all this is an issue of principle, we pay them money from our own pockets on the daily basis - among them to those, who has occupied 20 percent of our land and second - electricity is cheaper in our country; plus it is more technological and more beautiful.
Georgia must have something like this - psychologically it creates different climate. It is necessary for Georgia to develop and become more attractive for the rest of the world. And in order to finish it all we have cheap resources even today, we pay less expensive price in natural gas, because we are located close to the countries rich with energy resources.
Second structure is tourism. Georgia has incredible tourism potential. I have heard often that we are a small country and other rather bigger countries then us have bigger coastlines, some countries have more mountains than us...
Look carefully - Russia is such a big country. Tell me one place that could come close to some place in Georgia in regards of tourism potential.
Why it is such a big development in Sochi? It is huge difference between Adjara and Sochi. This is the only place there that looks like a resort. For example if you are going to Dagestan via Kakhetia on many places there is practically dry land - beauty is on the other side.
This side of Mkhinvartsveri is much more beautiful than the second one.
Unfortunately this was the reason why we attract bad and good interests of our adversaries. This was a well-kept secret for them - they knew the price of our land and didn't want others to know as well. Now historic process is going on, because others get to know how big is potential in Georgia.
At the same time our tourism potential is considered from absolutely different point of view.
During Soviet times it was considered that 70 of our tourism potential falls on Abkhazia. If we look at the modern tourism criteria we will guess what is valuable in the modern world.
Every place had it specifics: Uzbekistan had its own specifics; Georgia had its own one-crop.
In reality there is competition around the world, among them between skiing and sea resorts and other resorts as well. It was like this before - it was considered that the whole potential was in Abkhazia and this is why Russia got desire to owe it. This was exactly a conception - it was not possible their sanatoriums to remain in Georgia. But from today's perspective Mestia has much more of tourism potential than whole Abkhazia, because it is a high-class ski resort that is not covering only Mestia. There are 130 km long skiing slopes in Adishi gorge and it is attractive for the leisure as well. I am stressing my attention to skiing resorts, because I want these places to get alive in winter as well - summer resorts will be loaded like it was before.
Svaneti with its 130 km skiing slopes is five times larger than Courchevele. Anaklia potential is no less then Bichvinta, because it has minimum 18 km wide gold-sand beach that has a beautiful forest behind, with dry climate and warm sea. With such tourism potential we assume to increase number of tourists by 30-35 percent every year. This year we will have 2 million tourists in Georgia. Often there are debates about how we calculate number of tourists - they say that not everyone coming to Georgia is a tourist and so on.
We think that everyone, who spends money, is a tourist. Even if somebody comes to start business - is a tourist as well. It will be great if all two million persons, who comes to Georgia would come to start business, but we know that majority of them are tourists. In the nearest future we have potential to receive five million tourists and in future this digit will double. 5 or 6 million tourists visit little San Marino, so the size of the country doesn't really matter, especially when we have such unique places.
For example I have recently visited Snori, together with the Patriarch. I have never seen such a beautiful mountains before.
We have enormous potential in Tusheti; the combination of mountains and sea represents incredible potential. Such a long period for swimming is a separate potential, so much mineral water - brands that are very popular.
Tskhaltubo is famous in every Arabian country. From ancient times many people used to come here to receive treatment. The President of Egypt Abdul Naser several times visited Tskaltubo and whole Arabian world knows that he was getting treatment here. It happened in 60-70ies of last century. Now we have to solve very important issues. For example Borjomi is abandoned and now we have to take care of it. Borjomis is more famous than Perrier and Evian not only in Russia and Ukraine, but in whole Eastern Europe.
So this is a huge potential and we need to prepare for it specially. Language study, constructions of new hotels and infrastructure is very important as well. We are opening a totally rehabilitated cave in Sataplia and Prometheus cave in Kumistavi next year. Gelati abd Bagrati will open soon.
Vani preserve with its plural excavations and unique discoveries. Dmanisi center separately...
We have more wonders that we have to discover.
Very interesting excavations may be carried out in Javakheti and unique culture could be discovered that counts several millenniums; also many other places in Georgia that we don't know yet.
For example we are not familiar with Javakheti, because there was no road there before. I am interested how many of you have visited Akhalkalaki? Probably very few;
Tourism is being attached to the infrastructure and it is a line of transportation. Only in infrastructure if we will reach agreements with Central Asia and China we will be able to attract 500-600 millions of dollars and to import additional 40 million loads in our ports.
Airports. Poti airport must become huge transit center, Kutaisi airport, Batumi airport though it is not a big airport. We are building small-size airports, for example in Mestia and other places. All of this is a part of development of the potential of our infrastructure and potential.
Third pillar is agriculture.
Agriculture is our ideology, an important part of our identity and the fastest growing potential of our economy.
Today agriculture makes 11-12 percent of our GDP. In the nearest five years this indicator should double, because half of our population lives in villages.
How should it be done?
Mr. Kakha said that it is necessary to train agriculture specialist here, because we haven't had agriculture institute from 60ies practically. This institute sold all its lands and spent money for their own sake. This is why agriculture specialist are no longer trained there.
Technologies remain with us and I think that 100 million GEL investment should be done annually in order to import new seeds and new technologies, to give people knowledge and to double production of agricultural products in Georgia.
What are our internal resources in order to develop and widen this sphere?
First of all inner energy of our people must become available.
Several days ago I said that we are number one reformatory country around the world in regards of economic reforms. No other country did so much for the development of their economy, as Georgia did.
This was an achievement of Rose Revolution and the new democracy of Georgia.
Georgia is a country of freedom. Freedom test is very simple for me.
Today we have democracy in Georgia and we have pluralism in opinion expression.
Democracy at the same time is responsibility.
Several years ago, on one of the anniversaries of November 7, a very dangerous state criminal Badri Patarkatsishvili decided to organize a counter-revolution in Georgia.
He was working on creating public opinion; in September of 2007 I know for sure that he met FSB General in Minsk and they agreed on date of counter-revolution. They have paid twice as much for his newspaper "Commersant" that it's real cost only for the reason to spend this money in organizing revolution in Georgia. Though the Georgian government expressed firmness and law enforcement agencies acted very efficiently and our people had enough wisdom as well.
Georgia would no longer be considered as a democratic state if we would massacre the strikes and close down TV channels forever.
The test of democracy in Georgia was reflected in following: after we dismissed strikes, closed down TV channel run by this state criminal, we didn't let revolution to happen - he described all these facts in details during the interview with Irakli Kodua - I have resigned and gave our people a chance to participate in elections from the very beginning.
This is a responsibility on democratic test and what needs to be done.
I am absolutely sure today that all our actions were right.
Look carefully - who shouts today that they need democracy - they are the rudest people and have no tolerance towards somebody else's opinion. They are most impatient towards the representatives of other districts, other ethnic groups, other religious groups and towards the people with different opinions. Democracy and new country is not built on hatred.
Suppression of hatred is one of the major missions and responsibilities of democracy. We were raised in a country, where the first important resource is democracy and the second - our identity.
Who are we?
Today Russia has a great influence on every post Soviet country from cultural and identical point of view. We haven't realized yet that it concerns Georgia the least - it has practically no influence on us.
For example Russia appropriates 90 percent of Moldavian industrial recourses; almost half of their population is Russian language-speakers; they run their election campaign on Russian language as well, because people understand only Russian - their main TV channel is Russian as well.
Russian leaders, who practically occupied their territory and set embargo, are more popular in Moldova than their local leaders.
Same happens in Ukraine, in our neighboring Caucasus, in Middle Asia.
It is over in Georgia.
Russia has no more influence on Georgia. Why is it so important to strengthen our TV companies? It has tremendously big political and cultural influence on our identity.
We no longer watch ORT, NTV, RTR and thousands of other abomination. Now Russian language Georgian TC companies are being established. These are televisions grown on the true democratic culture of ancient nation. I was watching a song contest yesterday - "Song about Batumi", 130 songs were written for only one contest. In 90ies Russia had a great cultural influence on our cultural space. Of course I am not saying that we must cut our ties with Russian culture. We must know everything about Russian culture, like we have to know Japanese, Chinese, Arabian and Turkish cultures. We must never allow Russia to become a dominant over Georgia and become part of it. If we are country under their domination - we will be a secondary appendage of others political, cultural and economic space. This way identity is one of the main resources that Georgia possesses and we all must think about it.
Our third resource must be mobility. We are moving Parliament to Kutaisi - what do you think, what does it mean?
We are a small country. We cannot straighten the mountains, but we can extend in our own minds. A 16-year-old guy Tsotne Tabidze lives behind this Parliament in Avtokarkhana settlement. He wan in informatics World Olympiad. Talented people live all across Georgia, but 10 years ago Tornike Tabidze would have not a single chance in Georgia.
We must be very mobile. Everything was defined in the capital earlier, on Rustaveli Avenue. The opinion of Tsotne Tabidze and his parents, living in Kutaisi, in Autokarkhana settlement wouldn't be interested for anyone.
Our major resource in regards of talented people is in regions. But there is more potential in Tbilisi in respect of education. Of course potential and talent must be distributed equally. In this regards internal mobility is very important.
Why is Constitutional Court in Batumi? Parliament will be in Kutaisi; Personally I travel all the time; because the government should be mobile. Especially when we have good roads, we are constructing airport, new speed-railways is being constructed.
Look carefully - in last 15 years there existed only two sources of mobility in Georgia: one - wars and ethnic cleansings, and another - natural disasters in Ajara and landslip in Upper-Lower Svaneti.
Third it was migration - this damaged us the most, migration of the most talented people, people who were oriented on business and technologies, migration of the most educated people - orientation inside and outside the country.
In reality internal economy didn't create migration, only catastrophe created this migration.
Today we must create such economy that will create migration. No one is "condemned" to live in one village forever and have no perspectives despite their talents and potential.
Your perspective is that you have computer, you know foreign languages, you are educated, there is mobility, we have good roads and today you are in Batumi, tomorrow - in Tbilisi, day after tomorrow - in Kutaisi. Later you will fly to LA, open your branch there, the head office of which will be in Kutaisi and so on.
I am not exaggerating anything, it happens so with modern technologies and Singapore did so, many other small countries do so.
First resource is democracy, second identity, third internal mobility and permanent relocation of our people.
People must get integrated in the common social space and exchange must be going on.
In order to provide these all we need education, education and once again - education.
I always ask a question: what should be the main sign of Georgia's break-through? On one side jump is possible even today. There are countries around us the GDP of which is two times more than Georgia's, because they have energy resources, but we have an ideal geographic location.
But we shouldn't understand this as our formers used to understand that we must be a corridor - a dark corridor is not attractive for anyone especially if you have to drive through it.
This is the major difference between the conception of Shevardnadze's corridor and the corridor that we all will build. We have something that no one else has. They have oil and gas, but we don't have corruption.
Due to the last several surveys 98 percent of Georgians say that they have never dealt with corruption during last several years.
We have very low indicators of crime; comparatively low taxes, (all of us must learn pay taxes - when we have no oil, this is a discipline and participation in the construction process of our own country). We have very low level of bureaucracy and very flexible state system.
We are number one economic reformers among 174 countries.
We, Georgians are very talented nation. When we speak about our identity I do not mean only Georgians. I mean Georgian Armenians, Georgian Ossetians, Georgian Azerbaijanis, Georgian Abkhazs...
We are no longer in that period, when on the street we were asked "in which district do you live?" - this was how Soviet Union spoiled us then. We had certain privileges and advantages deriving from this in our lives before.
The main question is - can we Georgians become creators, innovators in order to implement innovations in some specific engineering spheres.
We want to open a new University in Batumi to prepare our engineers. Training of engineers is not enough - one engineer needs at least 4-5 technicians. Some people think that vocational schools are secondary institutes. We will not have engineers without such institutes. We cannot bring engineers from foreign countries - we must have our own.
Today we have political parties that organize demonstrations, probably you saw demonstrations organized by 12th graders - we don't want to study and pass exams. Buy the way the same was happening when we introduced national examinations.
Medical Institute students organized the first strike - they wanted to get enlisted without passing exams. We have many good doctors and I don't want to upset them, I am from doctors' family as well, but we have such doctors that were enlisted without exams as well - because of the fear of demonstrations.
I don't want to deal with such people. If someone doesn't want to pass exams - they can hold oars and picks. It is not shameful if you want to reach success with your own work.
But what do those parents and parties think about that tell their children to go and trouble Shashkin. Shashkin has not such weak nerves that he would let anyone to get enlisted to the universities without any exams and lazybones to arrange a revolution in the country.
Singapore was created with the same resources - it has no oil, but we are on our way to Singapurization. Of course we will be a democratic Singapore, Georgian Singapore, a country with great traditions.
One week ago a contract was signed on building the highest hotel in Caucasus and Black Sea Region in Batumi, if I am not mistaken it is 60-storey high.
This is our future, but Georgians should be not only constructors and planners, but investors. This investment belongs to big international consortium today.
All of us will witness this - Georgians will not only invest money, but will build as well.
You must remember that you have to be permanently oriented on progress, we must permanently look ahead, we must focus on what unites us from our resistance. We must remember that democracy, our culture and identity define our success in economy and Georgians must create something new.
Georgians, I mean multiethnic Georgian population, we must stand higher than others. We, Georgian multiethnic population must generate and create everything new if we wish to leave behind the backwardness that was dictated by the Empire's will - for once and for all we have to leave it behind and finally liberate our country - because our territories still have to be returned.
What's most important we must turn Georgia into an absolutely irreversible, successful country.
Today the Ukrainians, Moldavians, Kyrgizs are admired by what we do. Kakha Bendukidze is leaving for Ukraine to give lectures, though several Ukrainian Ministers have visited Tbilisi recently. But this still exemplary in the region. I visited Marrakech and by the way the Vice Premier told me that he heard a lot about us - nothing gave me such a joy as this phrase lately. Everyone must know what is Georgia and nobody will be able to humiliate us.
Georgia will strengthen by all means.
It is true that we have problems now, but we have mercy in present, it matters how we look at it, but future is definitely ours.
Thank you very much.