This paper was prepared by a team led by Mr. Neuhaus, and comprised Ms. Brukoff and Mr. Billmeier (all MCD), Mr. Almekinders (PDR), and Mr. Hajdenberg (FAD), with contributions from the rest of the Georgia team and Mr. Nicholas (World Bank).
A recent growth-accounting analysis indicates that recent higher rates of growth have not been underpinned by commensurate increases in labor and total factor productivity. See “Georgia: Medium and Long-Term Growth Prospects,” Appendix VI of the staff report for the Article IV consultation (IMF Country Report No. 03/346).
See, for example, W. Maliszewski’s paper, “Modeling Inflation in Georgia” (IMF Working Paper 03/212).
Although the previous administration was responsible for drafting the EDPRP, its consultations with civil society were extensive; thus, it remains representative of a fairly broad social consensus.
Estimates by international donors suggest that an increase in revenue in the order of 4 percent of GDP would be feasible over the medium term by combating tax evasion, particularly of fuel excises and import duties, which currently yield revenue far below potential.