An Analysis of Economic Effects of Proposed Amendments to the Labor Code of Georgia

May, 2013

Labor Market institutions are expected to have a significant bearing on the country's economic performance. However, the latest public debates on proposed amendments to the Labor Code of Georgia have been concentrating solely on the legal implications of the changes rather than their economic connotations. PMC Research Centre is conducting economic analyses of the proposed amendments to the Labor Code of Georgia. The analyses will cover two parts:• Case studies of the relationships between labor market rigidity and the country's economic performance based on the experience of other developed and developing countries;• Quantitative analyses of business leaders' attitudes toward the proposed amendments. The objective of this project is to deliver a comprehensive study on the analysis of the economic impacts of initiated draft amendments to the Labor Code of Georgia. The study will offer an opportunity to discuss the anticipated impacts of the proposed amendments from both a legal and economic viewpoint. Under this project the PMC Research team plans to:• Conduct research on initiated amendments to the Labor Code of Georgia, which will be made publicly available;• Present findings to the representatives of decision-making institutions – The Ministry of Justice (the initiator of these changes), the Government of Georgia, the members of Parliament;• Conduct public presentations and organize debates among interested parties (business associations, labor unions), experts and policy makers;• Increase public awareness of the economic implications of the proposed amendments. PMC researchers aim to highlight the economic dimension of the proposed amendments to the Labor Code of Georgia in public debate, and to facilitate the active inclusion of interest groups, experts and policy makers in the discussions. Public debates will be held at the end of May 2013.

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Program Budgeting Capacity Building Project Already Underway in Adjara

May, 2013

PMCG, in cooperation with the USAID Good Governance in Georgia (G3) Program, is currently undertaking the task of improving transparency, accountability and institutional efficiency at all levels of the Government of the Autonomous Republic of Adjara (GoARA) in the provision of better services to its citizens.In close collaboration with G3, PMCG will provide technical assistance to the Adjara Government over a nine-month period and the project is expected to increase the GoARA's Program Budgeting capacity.The main objective of this technical assistance is to formulate and implement a needs-oriented 2014 program budget for all GoARA agencies. Accordingly, the enhanced capacity and skills of GoARA officials in program budgeting will enable effective and efficient use of public resources.Within the project, PMCG consultants will implement the following activities:• Analytical Report of GoARA Program Budgeting Process;• Round-table discussion with senior management of GoARA to discuss findings of the conducted analysis;• Stakeholder meetings to discuss draft priorities of GoARA;• 3-5 days program budgeting training;• Final GoARA program budgeting manual;• Meeting in the Town Hall of GoARA with the broader groups of stakeholders to present conducted and evaluated final 2014 budget of GoARA.The first step of the improvement plan has already been taken. This methodological and technical assistance will lead to the development of better formulated and standardized budgets for all agencies of GoARA. A round-table discussion with senior management of GoARA is scheduled for 17 May.

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Trainings for GSE Personnel Launched by PMCG

May, 2013

On April 26, in collaboration with the Management Academy, PMCG started a series of trainings in project management for the Georgian State Electrosystem Corporation's (GSE) top and middle managers. The seminar which was held was part of the Performance Management project launched in January under the USAID HICD Plus contract. The trainings are driven toward increasing the professionalism of GSE staff in the field of project management and preparing its participants for effective delivery in the corresponding project area. The seminar, which was presented by Mr. Aleksandre Jejelava, chairman and leading trainer of the Management Academy, covered the following topics:. Project Management methodology;. Similarities and differences between process and project management;. Key project stakeholders;. Project development phases;. Key project documents;. Project communications. Afterwards, Mr Jejelava underlined the significance of the training: "In my opinion, for large organizations, such as State Electricity System, it is very important to develop the managerial personnel, especially in the Project Management field. During the training, it was clearly shown that these methodological issues, which we use, are very important for GSE's managers and there is a strong motivation towards improving the methodology of projects." He added that the approach of those who had taken part had contributed to a successful session: "The training was carried out with highly engaged participants, which is a prerequisite for any such training and will be necessary in future seminars." In addition to the one-day PM introductory seminar, PMCG and Management Academy consultants will deliver short and full courses for all employees involved in the projects.The second round of the workshop is scheduled for 10th May.

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Final Factorial Analysis Presented by PMCG in Samtskhe Javakheti Regional Development Strategy

Apr, 2013

On April 11, the second meeting was held in Samtskhe-Javakheti region as part of the Regional Development Strategy project. The visit was primarily focused on introducing the final factorial analysis to the working groups in four areas - Regional Economy, Agriculture, Social Sector, Sustainable Natural Resource Management and Environment Protection. As previously considered in the project goals, PMCG experts presented an outline of the strategy document and the methodological guidelines to the strategic planning process for the sectors mentioned above. In the second part of the meeting, time was allotted to the working groups to deliver presentations about the main priorities, which were decided upon after the compiled data analysis and earlier meetings. The meeting was summarized by way of a discussion about the established and developed priorities. The final visit and meeting within the Regional Development Strategy project is scheduled for May.

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PMCG Praised for Local Municipality Capacity Building Trainings

Apr, 2013

Since February 11, PMCG has been providing capacity building training sessions within the Good Governance in Georgia (G3) program. The first phase of the training, which involved over 230 participants from the regional self-governments, took place in Tbilisi and Kutaisi for staff from Telavi, Gori, Akhaltsikhe, Marneuli and Rustavi municipalities and concluded on March 28. The main objective of these sessions is to improve participants' skills and activities in the following modules:1. Project Design, Management and Evaluation;2. Strategic Planning;3. Legal Drafting;4. State Procurement Management;5. Internal Audit and Project Audit;6. Municipal Asset Management;7. Media Relations;8. Design and Management of Municipal Web Portals; At the beginning and end of training, participants sat pre and post tests to evaluate their progress and training effectiveness, in which almost all of those who took part recorded a significant improvement. "Training sessions are prepared according to the needs of the local municipalities, which include necessary materials to strengthen the practical skills of self-governments' representatives. These trainings are directed toward improving the efficiency of working and increasing the transparency and accountability of the local municipalities. " – said the trainer and PMCG expert Mr. Niko Tevdorashvili. Upon the conclusion of the session, participants completed a questionnaire to evaluate the training. Results reflected a high opinion of the performance of the trainers while the competence and experience of the PMCG experts was also emphasized. The next step has involved new training sessions which started on April 1 for Kutaisi and Zugdidi representatives and from April 4 for Poti and Ozurgeti municipalities. More information on this project is available via this link.

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Regional Strategy Being Developed by PMCG

Apr, 2013

On the 22nd of March, a team of experts from PMCG visited Samtske-Javakheti region as a part of Regional Development Strategy project, supported by GIZ. A productive meeting was held between experts and working groups from 4 sectors (Regional Economy, Agriculture, Social sector, Sustainable Natural Resource Management and Environment Protection) in Akhaltsikhe. The main purpose of the visit was to present the draft version of the development working reports and to discuss the following topics: • Factor analysis• Strategic development vision• Strategic plan development methodology During the discussion, our team also presented the early SWOT analysis and recommendations about improving the quality of living among local communities and enhancing the socio-economic environment in the region. At the end of the meeting, participants summarized the analysis and discussed the final phase of the project, which involves developing the format of the operations plan as well as adopting the monitoring and evaluation instrument for the Regional Development Strategy. More information on this project is available via this link.

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A Needs Assessment for the Parliament of Georgia

Mar, 2013

PMCG has begun its needs assessment for the Parliament of Georgia, which is designed to define a set of medium to long term development priorities. The project 'Institutional Reform Plan', is funded by the European Union and will conclude at the end of June.Within the project PMCG experts are going to study and analyse the following issues:• The legislative function Initiating and drafting legislation Debating the provisions of the law Scrutinizing the law in detail Approving and implementing of the law • The oversight/accountability function Information and reporting procedures Questioning ministers Committees' roles Executive-legislative relations • Budget oversight Influence on budget formulation Opportunity to debate the budget Powers to amend the budget Audit and monitoring • The representative function Parliament's inclusiveness Engagement with voters Opportunities for consultation Public outreach This assignment will entail the carrying out of necessary groundwork to create a base from which the institution can develop a needs-based and realistic strategic reform plan. Consequently, PMCG will prepare a final report presenting parliament's strengths and weaknesses, and the underlying causes for both. The experts will provide an overview of the parliament's key strategic development priorities and an indication of how the priorities can be most effectively addressed.

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Stakeholder Workshop – Recommendations for Enhancing Transparency of CSPA

Mar, 2013

On the 14th of March, 2013, at the Radisson hotel, in collaboration with CSPA, PMCG organized a stakeholder workshop, funded by the USAID Good Governance Georgia program (G3). The main purpose of the workshop was to obtain the stakeholders' views, concerns and recommendations about the transparency and accountability of CSPA and its DRB. The event was attended by representatives of business associations, the World Bank, Swiss Development Agency, media and other international organizations, while the meeting was chaired by the head of CSPA, Tato Urjumelashvili. Recommendations made following a productive discussion were increasing the number of DRB members, division of the DRB functions according to different areas and setting a fixed financial penalty for artificial impediment of the procurement process. According to Mr.Urjumelashvili, the procurement of the electronic system is totally transparent – everyone can see everything. After the upgrade of DRB, any person who believes there are the sufficient grounds to stop the tender, will be able to stop it by one click of a button. In conclusion, PMCG's workshop within the study "Enhancing transparency and accountability of the Competition and State Procurement Agency (CSPA) and its Dispute Review Board (DRB),"was considered very informative and fruitful by all parties involved.PMC Research Center has collected and summarized the stakeholders' concerns and recommendations and continues to work with CSPA to improve the public outreach function.

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PMC Research Center provides consultancy services to theState Competition and Procurement Agency of Georgia

Mar, 2013

PMC Research Center is providing assistance to the State Competition and Procurement Agency (SCPA) to enhance the transparency and accountability of its operations and procurement procedures with support of USAID. This project follows up on a recently developed study into the SCPA's Dispute Resolution Board procedures, prepared by the PMC Research Center. (More information about the study is available via this link). This comprehensive project covers numerous activities. Specifically, PMC Research Center will work closely with the stakeholders and interest groups to prepare a package of recommendations to improve the transparency and public outreach function of SCPA. In addition, experts of PMC Research Center will carry out research into the procurement procedures and process at SCPA, which will be detailed in chronological order. More information on this project is available via this link.

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PMCG hosted delegation of Egypt's Government Agency for Free Zones and Investment to introduce reforms successfully implemented in Georgia

Mar, 2013

From February 26 – March 2, a delegation of Egypt's Government Agency for Free Zones and Investment in Georgia within the USAID project "Egypt Competitiveness Program", was hosted by PMCG. This purpose and goal of the program is to improve Egypt's rating in the World Bank Doing Business Survey. Our Egyptian guests were presented with reforms successfully carried out in Georgia by representatives of several public institutions of the country which is now a leading name in the aforementioned ratings.During the visit, the Egyptian delegation visited selected government agencies to learn about best practices in reforming and improving the business environment. Meetings were held in various locations including the Ministry of Finance, Ministry of Economy, Data Exchange Agency, Ministry of Interior, National Enforcement Bureau, Tbilisi City Hall, Public Service Hall, and the State Procurement Agency. For the delegation members, representing Egypt's Government Authority for Free Zones and Investment (GAFI), one of the most significant meetings was held in the Georgian National Investment Agency.At the beginning of the study tour, PMCG's General Manager Mr. Aleksi Aleksishvili delivered an extensive presentation about the reforms implemented during the past couple of years in Georgia. Mr. Aleksishvili emphasized the problematic issues during carrying out these reforms as well as highlighted current challenges faced by the Government of Georgia.In the National Enforcement Bureau, GAFI representatives were introduced to e-services, such as Software on Enforcement proceedings and summary proceedings, Software for Tax Officers, and E-Auction. In Georgia, these services significantly simplified the procedures and reduced bureaucracy and corruption in the state institutions. Of the greatest interest to our Egyptian guests was the information on insolvency proceedings.As dealing with construction permits is one of the key criteria of the Doing Business Survey, the GAFI delegation visited the Construction Department of the Ministry of the Economy and Sustainable Development of Georgia. Here, they were informed about reforms recently implemented in the area of construction permits and licensing in Georgia. The meeting was so informative and interactive, that a follow-up meeting was requested and subsequently held. During the follow-up meeting, practical challenges in the field of licensing, execution of the law on construction and related topics were discussed.One of the main objectives of this study tour was to visit company registration and license agencies. Accordingly, a comprehensive meeting in the Public City Hall was held. Participants were introduced with the simplified and improved public services. Of particular interest to the attendees was the Public Registry's presentation on Business Registration Procedures.In the Tbilisi City Hall, GAFI representatives had meetings at LEPL "Tbilisi Architecture" and LEPL "Property Management Agency"; in which successful reforms, current challenges being faced and future goals being targeted were discussed.In addition, while in the Ministry of Finance, GAFI representatives visited Service Departments, Customs Monitoring Department, Informational Technology Department, Audit Department and Dispute Resolution Council before being taken on a tour of the Customs Clearance Zone (GEZI).As the study tour came to a close, PMCG awarded GAFI representatives with completion certificates. During the award ceremony participants expressed their gratitude for the study tour and the results of the subsequent evaluation form showed that they were very satisfied with had been gained from their week's visit to Georgia.

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