Here’s what Wikipedia writes about this person:
“In December 2004, Kakha Bendukidze became the Minister for Coordination of Economic Reforms and was engaged in the reform of the economy and the reform of the civil service, the principle of its activity was” to sell everything except conscience. “According to the report” Doing Business “of the World Bank, with Bendukidze in 2004-2007 Georgia has become the most reformed country in the world, in particular, Georgia has risen from 137th to 11th place in the ranking of countries for ease of doing business, ahead of Germany and France ”
Kaka Bendukidze confirmed his appointment as an adviser to the President of Ukraine (according to the processing of 99.03% of protocols, Petro Poroshenko leads the presidential race) and said that he had already taken part in the first meeting of the consultants. He also reported that he includes two Canadian and two American advisers. Georgia Online reports.
“The council will meet once a month, and it will discuss the topical issues of the Ukrainian economy, Ukraine is in a difficult position today, a result of many years of” idleness. “I appeal to every citizen of Georgia with the request to support Ukraine as much as possible. I can help Ukraine somehow, I will, of course, be very happy “, – Kakha Bendukidze said in an interview with” Rustavi 2 “television company.
Major reforms in Georgia in 2004-2011:
Anticorruption reform:
– Systemic anti-corruption measures are integral parts of all implemented reforms.
Two main approaches:
• The punitive
• Preventive
As a result of the reforms, a significant reduction in corruption has taken place: according to the International Finance Corporation, only 2% of the population of Georgia was given bribes or heard from someone giving or taking a bribe.
Reform of the law enforcement structure
– The union of the Ministry of Internal Affairs and the Ministry of Internal Affairs – elimination of functional parallelism and rationalization of budget expenditures.
– The process of intensive reform and optimization:
• Improvement of material and technical base
• new cars and equipment
• reconstruction, repair and construction of new police stations, building of the Ministry of Internal Affairs
• Increase in salary
• Cancellation of traffic police.
• The introduction of an American type of police patrols, endowed with functions of the regional police.
• Criminal Police Reform – Creation of Detective and Inspection Services.
• Modernization of the Civil Emergency Service (including fire service).
• Creating a 24-hour telephone center 022.
• Creation of a service agency and implementation of the “One Window” principle.
• Creation of a single information database of law enforcement agencies.
• Establishment of the Academy of Police – to prepare for a new and permanent increase
Qualifications of Existing Law Enforcement Officers.
Reform of criminal legislation
– Adoption of the June 24, 2004 Act on Organized Crime and Racket – undermining the institution of “thieves in the law”: the punishment of the “thieves” mentality, as such. The result: “thieves in the law” there is no freedom.
– Since May 2005, amendments have been made to the Code of Criminal Procedure, according to which any information about the fact of committing a crime is the basis for initiating a preliminary investigation.
– Increased control over the Office of the Attorney General over the preliminary investigation to reduce the facts of human rights violations.
– The time for the preliminary investigation has been reduced from 9 to 4 months, the time of detention has been reduced from 24 to 12 months.
– The accused has the right: to invite 2 persons as witnesses to any investigation, to organize their own investigation.
– Introduction of the institute of procedural agreements.
Public sector reform:
– Reduction of the number of ministries from 18 to 13. Cancellation of several ministries and state agencies, including the state inspection of price regulation, anti-monopoly service.
– Abolition of “independent” departments and their subordination to ministries.
– Reduced number of public services from 52 to 34.
– Reduction by 35% of ministry staff and by 50% of the number employed in the public sector.
– Optimized functions – eliminated duplication.
– Increase of salaries of civil servants by 15 times.
– Massive involvement in the state apparatus of young professionals.
– The transition of ministries to medium-term planning.
– Adoption of the Economic Freedom Act (effective from December 31, 2013), which defines:
– Participation of citizens in the establishment of national taxes:
The introduction of new types of taxes (except for five established – profitable, income tax, VAT, customs duties, excise taxes – with the exception of the property tax, the rate of which is determined in accordance with the Tax Code), or an increase in the upper rates of the existing ones is possible only through a referendum
– Limits of macroeconomic indicators:
• Consolidated budget expenditures should not exceed 30% of GDP;
• the deficit of the consolidated budget should not exceed 3% of GDP;
• sovereign debt should not exceed 60% of GDP.
– Principle of budget universality: the law can not establish binding of any specific government revenues to finance any specific budget expenditures
– Principle of free movement of capital.
Judiciary reform:
– Creation of an Independent High Council of Justice.
– Clear separation of the first court from the second.
– Establishing clear procedures for judges.
– Liberalization of the legal system.
– Strengthening the protection of property rights.
– A Unified Certification Exam for Judges, Attorneys and Prosecutors was introduced.
– Established Higher School of Justice.
– Improved court processes: shorter processes and full protection of the rights of the accused.
– Raising wages and pensions of judges.
– The level of independence of the courts has increased – the practice of appointment of judges for life has been introduced, the conflicts of interests have been eliminated – the Minister of Justice and Parliament no longer appoint permanent members of the High Council of Justice.
– Protection of whistleblowers – the right to compensation in the event of financial and non-pecuniary damage as a result of violation of their rights on the grounds of disclosure.
Reform of the punishment system:
– Construction of modern penitentiary institutions.
– Approximation of the conditions of stay in prisons to world standards.
– Leaders of organized crime have been separated from other prisoners, they no longer receive special and unauthorized privileges.
– Criminal sanctions have been increased in relation to acts of violence and inhumanity, various monitoring mechanisms are in place, surveillance cameras in prisons, law officers are required to draw up reports describing the physical condition of the persons being arrested, while suspects may use their own recording equipment During interrogation
– Ratified Optional Protocol to the Convention against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment.
– Transparency of activity has increased – the Office of the Attorney General no longer controls the penitentiary system; In the Ministry of Internal Affairs, human rights departments were established in the Office of the Prosecutor General and the Department of Prisons, staffed by former representatives of non-governmental organizations; The Special Section for the Protection of Human Rights was established in the Office of the Prosecutor General; The Special Unit for the Protection of Prisoners Rights was established in the Prison Department; The Special Representative of the State Defender has unrestricted access to places of pre-trial detention.
Tax reform:
– Reduction of taxes from 26 in 2003 to 6 in 2008
– Reduction of the VAT rate from 20% to 18%.
– Replacement of progressive income tax with a rate of 12-20% flat with a rate of 12%.
– The tax rate on income is reduced from 20% to 15%.
– Combining profitable and social taxes when reducing their aggregate rate up to 20% with a flat scale.
– Reduction of excise duties and property tax.
– Tax amnesty for incomes up to 2004
– Possibility of depreciation of capital expenditures.
– VAT refund.
– The Tax Council under the Ministry of Finance – the resolution of tax disputes to legal proceedings.
– Ability to submit tax returns electronically.
Customs reform:
– Combining Tax Inspection and Customs.
– Liquidation of customs obligations from September 1, 2006.
– Elimination of quantitative restrictions on import / export.
– Customs tariffs are sharply reduced:
• 0% for import 90% of goods
• 12% and 5% only for certain types of agricultural products and building materials
– Abolished non-tariff barriers – the technical norms of the EU / OECD and the CIS are equated in Georgia to the national technical requirements,
– Introduced a special regime of customs warehouses: single payment – a fee for a meter of warehouse space.
Intraeconomic liberalization:
– Adoption of the “Law on Free and Competitive Trade”, which prevents the state from transferring monopoly rights to a private or public company.
– Adoption of the new Labor Code:
• Minimum wage is canceled;
• Workers and employers can contract on their own terms and conditions;
• Monopoly position of trade unions was eliminated;
– Adoption of new rules of work on the stock exchange.
– Adoption of the “Law on Insolvency” – the procedures for bankruptcy of enterprises are much simplified. The obligations of the founders and partners of the company to the creditors have changed.
– Standardization and Certification Reform:
• there is no list of products subject to compulsory certification,
• it is possible to assess the conformity of the product with the technical regulations;
• Technical regulations of developed countries applicable in the Georgian market,
• liberalization of the use of foreign standards,
• recognition of foreign metrological verification.
Liberalization of foreign economic activity:
– Abolition of restrictions on foreign investment in Georgia.
– Open and non-discriminatory trade relations with the rest of the world.
– Free trade agreements with almost all major trading partners.
– Changes (liberalization) of rules on import of medicines and realization of services in the field of insurance and certification.
– Introducing uniform excise rates and VAT on imported and local products.
– Cancellation of all transit duties, quotas and other transit barriers for road transportation of goods within the territory of Georgia.
– Liberalization of railway tariff policy.
– Open Skies policy – cancellation of restrictions on the number of passengers, the direction and frequency of flights in the Georgian airspace.
– Adoption of legislation with free industrial and free tourist zones.
– The notion of an international financial company exempted from tax on income is legally enshrined.
– Removal of restrictions for working in Georgia of foreign banks with a rating of A + and above.
– Equal position of foreigners:
• Non-discriminatory regulation in relation to non-residents;
• The ownership of urban real estate, land (from summer 2010 and agricultural land), business, financial institutions, etc. is not limited. For non-residents;
• The right to repatriation of capital is not limited;
• No permission to work for foreigners;
• Contracts for the avoidance of double taxation and investment protection agreements with dozens of countries have been concluded.
Visa liberalization:
– Cancellation of the visa regime for citizens of almost 100 countries (all countries with GDP per d / d more than 10 thousand USD), incl. EU, Turkey, Israel, Japan, Canada, USA, Switzerland.
– Significant simplification of reception of entry visas for citizens of other countries.
– Legalization of dual citizenship.
Privatization:
The main method is monetary privatization.
Implementation of privatization and introduction of long-term lease contracts with the right to resell them to such facilities as:
– Agricultural, urban and industrial land;
– Fish, forest and water resources;
– Navy;
– Seaports and airports;
– Coal mines;
– Plants of heavy industry;
– Real estate, including hospitals, some educational and sports facilities, and more.
– water supply
– The main objects of power generation and distribution, gas distribution companies;
– Landline.
Reform of licensing and issuance of permits for opening a business:
– Liquidation of a complex system of obtaining licenses and permits for one activity or another and its replacement on the system of “one window”.
– Implementation of the principle of “Silence – a sign of agreement”.
– Reducing the list of licensed activities – by 85%.
– An exhaustive list of licenses and permissions; It is impossible to introduce new licenses / permits by other regulatory acts.
– Decreasing the number of co-ordinating and supervisory bodies.
– Reduction of the authorized capital in 2006 and its complete cancellation in 2007
– Reduction of terms for registration of a new enterprise of any type in the tax office up to 1 day – instant registration (upon filing an application).
– Ability to use electronic signature.
– Procedures for state and tax business registration are combined and simplified.
– The number of mandatory documents and required time has decreased significantly.
Electricity reform:
– Rehabilitation of infrastructure.
– Significant increase in fees (from 30% to 95%).
– Improvement of state technical regulation.
– Deregulation of new productions.
– Cancellation of wholesale tariffs regulation.
– Removing restrictions on private investment.
– Switch to private supply and private electricity supply.
– Transition to long-term contracts.
– Transition to electricity supply according to 24/7 principle.
– Diversification of imports of electricity.
– The transition from systematic electricity outages in 2003 to net exports of electricity in 2008 to all four neighboring countries and Eastern Europe in 2011.
Gas sector reform:
– Cancellation of wholesale tariff regulation.
– Complete deregulation in the case of the construction of a new transport and distribution network.
– Cancellation of state subsidies for the gas sector.
– Diversification of gas imports.
Education reform:
– Voucher financing with the right to choose schools and universities, including private ones. The size of the voucher for tuition in a university depends on the results of the EDI: at the highest points, the state grant is 100% covered by the tuition fees. The cost of studying in public universities is unified.
– The introduction of centralized examinations (Single State Examination) for entry-level universities and computer-adoptive tests.
– Schools and universities have a legal status of public law, they are autonomous entities and carry out their own financial activities.
– The schools are managed by the Board of Trustees, which chooses a school principal.
– Teacher certification based on English proficiency and computer literacy.
– Raise salaries of teachers depending on the results of certification.
– Increase in the number of private schools (8% of pupils study in private schools).
– Teaching English language from the first class with the involvement of native speakers (more than 1000 teachers).
– Provision of all first-graders by computers (netbooks).
– A special fund was created to finance the education of children who came to the best educational institutions abroad.
Healthcare reform:
– Refusal to finance and subsidize infrastructure (hospitals). The system of state financing of patients, instead of institutes, was introduced.
– Privatization.
– Transfer to health care financing through insurance.
– The transition from large public hospitals to private hospitals located so that up to 90% of the population is 30 minutes away from the hospital.
Social welfare reform:
– Non-indexed and unfunded pension system (universal budget).
– Monetization of social benefits.
– The size of the minimum pension increased from 14 lari ($ 6.5) in 2003 to 100 lari ($ 60) in 2011.
– Creating a detection program requires state aid with clear criteria.
– Targeted social assistance
• 420,000 people are beneficiaries of targeted monetization of social assistance;
• 1 million people receive free health insurance.
Military reform:
– Transfer to a contract professional army.
– Approaching NATO standards.
– Training of Georgian soldiers according to NATO standards.
– Traversal of Georgian troops in Iraq and Afghanistan.
