IFC survey: Business see near-zero corruption in Georgia

Business sector representatives and the vast majority of companies are satisfied with the business environment in Georgia and believe there is virtually no perception of corruption in the country they operate in.

This was the main finding of a survey by the International Finance Corporation (IFC), a World Bank Group member that focuses exclusively on the private sector in emerging markets.

Conducted by the IFC Georgia Investment Climate Project based on 2015 data, the Georgia Business Perception Survey examined more than 800 small, medium, and large local and international businesses that operate Georgia to help the Government identify the next steps to improve the investment climate and boost economic growth.

Only a very small fraction (0.03 percent) of survey respondents said their business had encountered Government corruption in the past year, while 0.75 percent said they heard about corrupt practices experienced by others.

They survey also found the revenues of most businesses declined last year, with the key reasons for this perceived to be the national currency devaluation and reduced purchasing power.

The survey found investor expectations have mostly been met and, in spite of the revenue decline last year, the outlook is quite optimistic. Many businesses plan to increase production and employment,” said Jan van Bilsen, IFC Regional Manager for the South Caucasus.

Less than half of Georgia’s exporters were aware of the benefits of the Deep and Comprehensive Free Trade Areas (DCFTA) with European Union (EU), which suggested the need for the Government to launch a public awareness campaign.

Respondents said the Government should also continue to develop infrastructure and create a more competitive business environment to help boost business growth.