GEORGIA : ANTI- CORRUPTION REFORMS

“Since 2003, Georgia has implemented AN IMPRESSIVE ARRAY OF REFORMS. These reforms are reflected in pronounced political, social, and economic transformations following the ‘Rose Revolution’ at the end of 2003. The processes since the start of the reforms can be qualified as UNIQUE in terms of speed of reforms, degree of innovations, and extent of institutional restructuring. The reforms are recognized to have NOTICEABLY IMPROVED the institutional environment, provided a basis for more sustainable economic growth and human capital accumulation, and increased multi-fold foreign direct investments.”

— World Bank, April 2009, report No. 44400-GE   

     Anti-Corruption Achievements

Indices

Transparency CPI: 2011: 64/182 (Score: 4.1)

This field consists of the score for the country in question on the Corruption Perceptions Index from Transparency International as well as its ranking.

World Bank CORR Index (-2.5 - +2.5): 2010: -0.16

This field consists of the score for the country in question on the 'Control of Corruption' indicator in the World Bank Governance Research Indicator Country Snapshot (GRICS): 1996-2010.

OECD Country Risk Classification (0-7): 2012: 6

The classification of countries by risk category has the aim of providing OECD countries with a basis for calculating the premium interest rate to be charged to cover the risk of non-repayment of export credits. Countries are placed in risk categories 0 - 7, with 0 being the lowest risk category and thus the least expensive. Access the complete list of OECD Country Risk Classification figures.

Public Anti-Corruption Initiatives

Legislation:

Georgia passed anti-corruption legislation on line of the United Nations Convention against Corruption (UNCAC). The government has worked further to harmonize Georgian legislation with the convention. Georgia's Criminal Code listed attempted corruption, active and passive bribery, bribing a foreign official as well as money laundering as criminal offenses and provided strictly punishments. Parliament has passed a package of constitutional amendments criminalizing the abuse of public office and bribery with a maximum sentence of 15 years and confiscation of property. The Law on Conflict of Interest and Corruption in the Public Sector, the guiding anti-corruption law, was incorporated into the 2005 National Anti-Corruption Strategy. The law prohibits corruption among public servants and requires the disclosure of assets by public officials and their families in order to ensure transparency. However, there is no follow-up mechanism in place to monitor and scrutinize these asset statements effectively. In order to prevent conflict of interest, the law also prohibits public servants from involvement in private business.

Government Strategies:

The Government of Georgia adopted a National Anti- Corruption Strategy in June 2005, followed by an Implementation Action Plan in September that same year. The goal is to improve transparency and effectiveness of the civil service and strengthening the role of inspectors general within public agencies.

Anti-Corruption Council:

An Anti-Corruption Council was set up in January 2009 in order to support and update the National Anti-Corruption Strategy.

Anti-Corruption Agencies:

Georgia's main anti-corruption body is the National Security Council which was charged with the drafting of the 2005 National Anti-Corruption Strategy. The State Ministry of Reform Coordination oversees the strategy's implementation. Neither the council nor the ministry can be defined as independent anti-corruption agencies. Reforms in the Criminal Procedure of Georgia removed the responsibility from the General Prosecutor's Office to deal with crimes other than those that are corruption-related, effectively turning it into an anti-corruption agency. Thereby, Georgia increased its compliance with the UNCAC, which stipulates that each country adhering to the convention should establish an independent anti-corruption agency. The Main Investigative Department within the General Prosecutor's Office has exclusive jurisdiction over all corruption-related offences within Georgia.

The National Ombudsman:

The Ombudsman, also called the Public Defender of Georgia, was established in 1997. The Public Defender institution supervises the protection of human rights. It also supervises the activities of public authorities, public officials and legal persons and evaluates their activities. It has become a quite strong organisation. In principle, it is independent, although the government tries to influence it. It has received much support from several international donors, including USAID primarily, but also Sida and Danida among others, to secure the professionalism of its staff. The Public Defender does not have the authority to investigate cases, and can only recommend to law enforcement authorities that they initiate investigations.

The Auditor-General:

The Chamber of Control of Georgia (CCG) is the main audit unit in the country. It has been going through reforms to fulfil its role as an independent external auditing body able to ensure that good governance is upheld. A project to aid this development is taking place with the support of German experts. CCG auditors are receiving training in international auditing principles. The reform of the CCG has not yet been completed, and the legal framework for its work is still weak according to Global Integrity 2008.

E-Governance:

Many Georgian ministries now have informative websites to increase transparency, although some ministry websites lack information in English, which makes it difficult for potential international partners to understand procedures. The Ministry of Finance provides online services for company registration, taxes and customs (under development). The State Procurement Agency has developed an online service where tenders are published with relevant contact information. This will gradually promote transparency. The Ministry of Economic Development has produced a privatisation website detailing ongoing privatization initiatives and sales in order to increase transparency and equality within the privatization process.

Public Procurement:

Georgia established the State Procurement Agency (SPA), again under the control of the Ministry of Economic Development. It is supposed to function with greater power and independence, although it remains subject to the ministry's interference. The Law on Public Procurement 2005 was drafted by the SPA, passed in 2005 and put into force 1 January 2006. The law stipulates that public tenders should be publicized. Enforcement, however, is still relatively weak in certain aspects due to the inadequate training of officials and the low level of awareness of this law. The government has been making efforts to improve the transparency and efficiency of the public procurement system, in part by strengthening information exchanges between the State Procurement Agency and the Ministry of Finance.

Whistle-Blowing:

Whistle-blower protection is supposedly ensured by the 2004 Law on Freedom of Speech and Expression (Art. 12) as long as the disclosure is judged to be in 'the public and lawful societal interest'. However, whistleblowers within state institutions reportedly continue to suffer from disciplinary action and harassment when they report suspicious activities within state institutions. The right to access public information is secured in the General Administrative Code of Georgia (Chapter 3: Freedom of Information), although the Law on State Secrets places restrictions on revealing information believed to be damaging for the sovereignty and security of the country. Regardless of the freedom of information provisions, Global Integrity 2008 reports that public offices are known to ignore or delay requests to access information and whistleblower protections lack regulation. Global Integrity 2008 assesses Georgia's whistle-blowing regulations as 'very weak'.

By 2012, anti-corruption reforms had taken priority and Saakashvili's policy has produced results. In the past few years, the level of corruption in Georgia has decreased significantly, and citizen confidence in public institutions and public officials has increased considerably. The establishment of the Anti-Corruption Interagency Council in 2008, and a significant progress in criminalising corruption in line with international standards, have illustrated that the government is committed to fighting corruption.

“  
“Compared to other countries, Georgia has the highest rate of respondents who say that their government’s actions to fight corruption have been ‘effective’ or ‘extremely effective.’ Similarly, with 78%, Georgia has by far the highest rate of people stating that corruption has ‘decreased a lot’ or ‘decreased’ in the past three years.” – Transparency International, December 2010

“The progress that Georgia has made against corruption is already serving as a role model for many other countries seeking to replicate the success that Georgia has had.” US Secretary of – State Hillary Rodham Clinton, October 6, 2010

“84% of the Georgian population have confidence in the police.” – International Republican Institute, October 2010
      ”

Private Anti-Corruption Initiatives

Media:

Georgia has constitutionally institutionalised freedom of press and opinion, combined with the Law on Freedom of Speech and Expression. The Law on Broadcasting was adopted in December 2004 and in 2005 the State Television and Radio were transformed into the Georgian Public Broadcasting system (GPB). In 2004, the government passed a new libel law that clarifies that statements made in Parliament, courts and political debates are not considered libel. Furthermore, the law shifts the burden of proof to the accuser and specifies entire companies, rather than individual reporters, as defendants. According to Freedom House 2011, there were far fewer reports of direct government intervention in 2010 compared to previous years.

According to the assessment made by Transparency International's National Integrity Report 2011 on media, Georgian media have not been particularly successful or active in exposing corruption cases. In addition, the report also states that the authorities' influence have undermined the ability of the media to expose corruption. Reporters Without Borders 2011-2012 ranks Georgia 105th out of 179 countries, while Freedom House's Freedom of the Press index 2011 ranks the country 118th out of 196 countries and describes its press environment as 'partly free'.

 

Civil Society:

The civil society has been active even before the collapse of the Soviet Union and is still mainly funded by foreign donors. Freedom of assembly and association are generally respected by Georgian authorities. Many NGOs themselves play an important role in public debates and discussions in Georgia, but the general unwillingness of the government to engage with civil society has weakened the latter's ability to assert influence.

Transparency International Georgia:

Transparency International Georgia is active in promoting corruption awareness and transparency, and monitoring government initiatives. Annual reports (in Georgian) concerning corruption can be accessed on the organisation's website. Transparency International Georgia has also established the Georgia Advocacy and Legal Advice Center (G-ALAC). The G-ALAC aims to assist citizens in resolving corruption related problems, and it also provides a free hotline for citizens to report corruption cases. So far the majority of corruption related complaints received by the G-ALAC are related to judicial corruption and property rights violations.

Open Society Georgia Foundation:

The Open Society Georgia Foundation, a member of the Soros Foundation, works to increase transparency in public administration and build democratic values through the rule of law. It runs several other programmes, including a civil society and media support programme and belongs to a coalition of NGOs in Georgia called For Transparency of Public Finance, which publishes reports and monitors public financing and public policies.

Civil Society Institute:

The Civil Society Institute is an NGO that works to enhance good governance and transparency. The Civil Society Institute is involved in the drafting of laws and carries out watchdog activities on government work. Furthermore, the Civil Society Institute is also involved in training public officials in good governance.

Sources for further reading:

• The World Bank: Fighting Corruption in Public Services - Chronicling Georgia's Reforms 2012.
• Freedom House: Nations in Transit - Georgia 2011.
• US Department of State: Investment Climate Statement - Georgia 2011.
• Transparency International: National Integrity System - Georgia 2011. 
• The Bertelsmann Foundation: Transformation Index - Georgia 2010.
• OECD: Second Round of Monitoring Report Georgia 2010.
• Global Integrity: Georgia Country Report 2009.

“Today Georgia has reinvented itself as THE STAR OF THE CAUCASUS. It is less corrupt than most former Soviet republics and one of the easiest places in the world to do business, according to the World Bank. Its liberalised economy has weathered Russian embargoes, and the state held together during the war with Russia. Its police do not take bribes and electricity is no longer a luxury. Most important, people are no longer surprised by such success. The biggest transformation is In their minds. […] THE MENTAL SHIFT WHICH HAS OCCURRED IN GEORGIA WILL MAKE IT HARD TO TURN THE COUNTRY BACKWARDS.”
—“Georgia’s mental revolution”, The Economist, August 19, 2010