Georgia’s vision was to increase competitiveness and to become a regional hub for trade, investment and logistics through the liberalization of business regulation, the elimination of red tape and increased attractiveness to investment.
Tax reform: only 6 flat and low taxes instead of the previous 21 progressive tax rates, increasing the tax-revenue-to-GDP ratio from 7% in 2003 to 24% in 2012 (a 12-fold increase in nominal terms)
Easing the regulatory burden on businesses by abolishing 85% of licenses and permits required to conduct business activities
Substantially reforming and liberalizing the labour code, achieving the highest labour freedom worldwide (2008 Heritage Foundation Index of Economic Freedom).
Creating a world-class, ’one-stop’ customs system where standard customs procedures are completed in as little as 15 minutes
Adopting the so-called ’Liberty Act’ to lock in liberal reforms and make them irreversible, e.g. by requiring a popular referendum in case of tax increase
Some of the most notable figures are:
average GDP growth pre-crisis
GDP per capita increase
average FDI/GDP ratio pre-crisis