Georgia: Second Development Policy Operation

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The Second Development Policy Operation (DPO 2) Program is the second in a series of three programmatic development policy operations intended to support the Government of Georgia's policy reform program to: (i) mitigate the impact of the economic downturn in the short-term; and (ii) facilitate recovery and prepare Georgia for post-crisis growth in the medium-term. In addition to a satisfactory macroeconomic and fiscal framework, the main policy areas supported are: (i) improving the efficiency and effectiveness of public finances; (ii) improving the effectiveness of the social safety net; and (iii) improving external competitiveness. The DPO-2 is supporting an orderly transition in the focus of the authorities from immediate mitigating measures toward preparing the conditions for post-crisis growth. Toward addressing the dual challenges facing Georgia, the DPO program supports a satisfactory macroeconomic and fiscal framework and key reforms in three policy areas.