US foreign aid agency commends Georgia’s commitment to economic freedom

An independent US Government foreign aid agency has positively assessed Georgia’s profile and said the country has demonstrated its commitment to growing its economy.

The chief executive of the Millennium Challenges Corporation (MCC) Daniel Yohannes expressed his comments following a meeting between himself and Georgian Prime Minister Irakli Garibashvili at the agency’s headquarters in Washington, DC on February 24.

Yohannes highlighted Georgia was one of their partner countries that had consistently demonstrated its commitment to economic growth.

"I commend Prime Minister Garibashvili for his dedication to growing Georgia’s economy by focusing on improving education. We are hopeful Georgia will continue to excel as a vibrant market-oriented democracy,”|/ Yohannes said.

In July 2013, MCC signed a five-year, $140 million dollar compact with Georgia, which seeks to increase citizens’ earning potential by addressing weaknesses in the quality of education — particularly in science, technology, engineering and math (STEM). The deal builds on recent policy reforms Georgia has made in its education sector.

In response, Prime Minister Garibashvili stressed the compact was of great importance to Georgia as it gave the opportunity to improve and develop the quality of the country’s education, science and technology in the field of engineering science. 

Georgian delegation led by the PM Irakli Garibashvili meets with the chief executive of the Millennium Challenges Corporation (MCC) Daniel Yohannes; Washington; February 24, 2014. Photo by PM’s Press Office.

"This provides the opportunities to attract more investment in the fast growing sectors including energy, construction , agriculture, information technologies, transport and logistics. This is [the] greatest investment in the field of education and serves as evidence that Georgia is a strategic partner of the USA,” Garibashvili said.

MCC believed the second compact would strengthen Georgia’s capacity to meet the needs of its economy and create new jobs, while better positioning the country to be a strong US trading partner.

According to MCC, American firms exported $600 million USD in goods to Georgia in 2013, up from $300 million USD in 2010.

The relationship between Georgia and MCC dates back to 2005 when the first compact was signed. It aimed to unlock the country’s economic growth potential with an investment of more than $395 million USD in energy and infrastructure. These initial investments helped Georgia recover after the economy contracted dramatically following the collapse of the Soviet Union and Georgia’s civil war of the 1990s.

MCC is an innovative and independent US agency that works to reduce global poverty through economic growth. Created by the US Congress in January 2004, with strong bipartisan support, MCC provides time-limited grants and assistance to countries that demonstrate a commitment to good governance, the rule of law and respect for equal rights.