Investments, Banks, Debt & Labor

We are pleased to announce the release of our report, “Georgia’s Investment Landscape: Comparative Analysis of Chinese and Western Investments (2018-2023)”.

This report uncovers the actual extent of the People’s Republic of China (PRC) investments in Georgia from 2018 to early 2024, demonstrating that Beijing’s economic engagement is significantly less than officially claimed, with investments not exceeding 700 million USD since 2010. The comparative analysis reveals that countries such as the USA, UK, and Netherlands have exhibited substantial and increasing investments in Georgia, particularly in the post-pandemic period. Notably, even EU member countries with smaller economies, such as Malta, have shown a more pronounced increase in their foreign direct investments in Georgia compared to the PRC’s FDI rate.

Read the full report for a clear picture of foreign investment dynamics in Georgia. 👇

We are pleased to share with you our latest research “Workers’ Rights Watch” prepared with the support of NED and Caps Unlock. It delves into the details of labour relations within eight companies affiliated with the People’s Republic of China. The analysis is based on the conclusions made by the Labor Inspection Service of Georgia in the reporting period of 2022, the media monitoring conducted by us and the violations revealed as a result of multiple interviews with the victims. The findings underscore the critical need for implementing robust measures that compel companies to adhere to labor-legal norms, so that the socio-economic or civil-political rights aren’t violated.

For further details, please find the complete report attached below. 👇

Civic IDEA started observing Georgia’s foreign debt policy after the Georgian Dream officially refused financial assistance from the European Union. It turns out that Georgia is still actively borrowing from various financial institutions or directly from other countries, and the two main creditors of the country are the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB). On September 21, the Asian Development Bank (ADB), which is highly affected by China, officially announced that it would provide the Georgian government with a USD 100 million loan, aiming to strengthen Georgia’s electricity sector. On September 24, ADB already approved a USD 15 million loan to assist Georgia in effectively implementing the vaccination programs. Three weeks before the debt approval from the ADB, the Georgian government publicly refrained from taking 75 million Euros worth of aid from the European Union. According to Prime Minister Irakli Gharibashvili’s official statement, Georgia has begun the reduction of its foreign debt, and therefore, no additional assistance from the EU was needed. 

Based on the information we have, the question naturally arises: Why does the Georgian government take debt from the Asian Development Bank and the Asian Infrastructure Investment Bank when their services are twice as expensive as the EU’s? We will provide our readers with a consistent history of when, why and under what conditions the Government of Georgia decided to cooperate with the bank, which was established only recently, in 2016.