US Department of State report on Georgia notes low confidence in courts, failed port project
A report on the investment climate in Georgia published by the US State Department says the country’s economy is open to foreign investment, although companies operating in Georgia have little confidence in the Georgian court system, and it often takes years to resolve business disputes.
The report also mentions the Anaklia deep-water port project, in which American companies invested.
The State Department notes that although the state unilaterally canceled the contract with the Anaklia port consortium because the consortium was unable to acquire the funds needed to build the port, the Anaklia project remains one of the top priorities for the Georgian government.
The report assesses the current legislation in Georgia, as well as the problems and challenges faced by entrepreneurs.
The document notes that “overall, business and investment conditions are sound. However, some companies have expressed an increasing lack of confidence in…the court system”.
The report also states that the main problem is “the judicial sector’s ability to adjudicate commercial cases independently or in a timely, competent manner, with some business dispute cases languishing in the court system for years”.
“Other companies complain of inefficient decision-making processes at the municipal level, shortcomings in the enforcement of intellectual property rights, lack of effective anti-trust policies, selective enforcement of economic laws, and difficulties resolving disputes over property rights”, reads the statement.
At the same time, the report notes that the Georgian government claims it is working to solve these problems and that Georgia remains the leading country in the region in terms of a healthy business atmosphere.
Economy Minister Natia Turnava says that the assessments made in the US State Department’s report on the investment climate in Georgia are “extremely positive” and “absolutely objective”.
“We are very pleased that our strategic partner so objectively and positively assesses our efforts to make the investment climate in Georgia even more attractive”, said Turnava.