USAID: a Georgian oligarch is seizing control of the state

USAID concerning Ivanishvili

Over the past decade, it has become clear that Georgia’s richest oligarch – meaning Bedzina Ivanishvili – has taken over the state, according to a US Agency for International Development (USAID) document assessing the fight against global kleptocracy and analyzing examples of success and failure in this regard.

Kleptocracy is a form of government in which the ruling elite use the country’s resources for their own enrichment. By seizing state resources, they expand their power and influence. Kleptocracy is directly related to corruption and the collapse of institutions, although it is rather an elitist form of corruption.

“The fight against kleptocracy spans generations. The misconception that the goal has already been achieved can become the basis for a rollback of reforms and the rise of kleptocracy/ This can happen even after an eight-year reform process, as the experience of Georgia post-2012 shows,” the study says.

In addition to Georgia, the document also examoines Ukraine, Romania, Bulgaria, South Africa, Sudan, Moldova, Armenia, Malaysia, and other countries.

• How does oligarch Bidzina Ivanishvili de facto rule Georgia?
• Ukraine demands sanctions on Bidzina Ivanishvili and his circle
• US Ambassador to Georgia confirms meeting with Ivanishvili: “Georgia’s participation in the war was not discussed”

The document regards 2004-2012 as a period of success for Georgia, when rapid and effective steps were taken in the country to combat corruption and kleptocracy. The document details police reforms carried out in Georgia, which is recognized as a successful examples of police reform.

The document also mentions examples of the export of Georgian reforms – the process of building the National Police of Ukraine on the Georgian model after 2014.

For the period after 2012, USAID paints a completely different picture: the dominance of oligarchic rule, the capture of state institutions, and a syndrome of impunity for corrupt officials.

Transparency International’s study describes a system of impunity for corrupt officials, Georgia’s growing dependence on Russia, and clandestine dealings between oligarchs and Russia.

The document emphasizes that the “orange revolution” in Ukraine and the “rose revolution” in Georgia ended “when Russian-backed oligarchs funded pro-Russian candidates who became presidents and re-kleptified both countries.”

USAID concerning Ivanishvili