Statement of Mr Zarab Soselia, Deputy Minister of Finance, of the Republic of Georgia at the 27th session of the Governing Council

Rome, 18-19 February 2004

Dear Mr. Chairmen,
Distinguished Colleagues,

I am honoured to take this opportunity and on behalf of the new Government of Georgia would like to express our gratitude to IFAD and to emphasize the importance of successfully developing cooperation.

Until now, IFAD has supported Georgia with two loans totalling USD 14 million. But more importantly IFAD has helped Georgia to grabble with the problems of transition from a centrally planned to a market driven economy through developing the kind of institutions and policies that a crucial for economy. It has assisted us with establishing a land registration and cadastre system to guarantee security of tenure to private farmers benefiting from the privatization of the lands previously managed as state farm and collectives and thus facilitates the emergence of a land market. It has pioneered with us the establishment of a vibrant credit union movement that is improving farmer access to credit that is crucial to the recapitalization of agriculture. It has encouraged the development of producer groups and marketing associations which are enabling small farmers to benefit from economies of scale and to increase their bargaining power in the market. It is helping mountain communities establish mechanisms that allow them fully participate in making decisions that affect their lives and welfare while enabling them to access appropriate production technologies, inputs and benefit from improved infrastructure.

In summary IFAD has enabled Georgia to put in place an enabling environment that is conducive to poverty reduction and economic development that are crucial for stabilization of Georgian social situation and improvement of the welfare of its people. We hope the international community would continue to provide IFAD with the resources and support necessary for it to carry on with its laudable mandate.

Finally again, Mr. Chairmen and Distinguished Colleagues, please accept the assurances of our highest consideration.

Thank you for your attention.