Second Programmatic Inclusive Growth DPO

closed

Closed

The second Inclusive Growth Development Policy Operation (DPO2) in Georgia will support the government in its efforts to improve public service delivery and strengthen fiscal oversight. The first generation reforms, which started a decade back, have helped Georgia improve its business environment, achieve sustained growth rates and maintain low inflation. However, important socioeconomic vulnerabilities persist, including as a result of recent external shocks, under which growth performance and the macro-fiscal stance have deteriorated. Against this backdrop, further improvements in the living standards of Georgians will require investments in human capital, enhanced private sector competitiveness, and fiscal, social and environmental sustainability. Some of these objectives will be supported by this operation through reforms in fiscal management and the delivery of social services. The policy actions are anchored in the Country Partnership Strategy (CPS) for 2014-17, and are consistent with the government’s own development strategy. The main development challenge faced by the country is achieving more inclusive growth, which will be supported by strengthened fiscal management and improved public service delivery. Achieving inclusive growth will require investment in human capital, and providing a solid and stable macro-fiscal framework that supports private sector activity and competitiveness. Strengthened public service delivery will help build human capital while macro-fiscal stability will make Georgia more attractive for private sector activity. Reform efforts supported by this operation have been grouped in two pillars. Pillar one supports greater fiscal oversight of public institutions (particularly, state-owned enterprises), and improvements in budgeting and the framework for civil services. Pillar two supports improvements in the coverage and quality of social services, and monitoring of outcomes. Reforms supported by this operation will help both in inclusion and inclusive growth. While private sector development, which is being supported by another DPO series in Georgia, will help create more jobs, this DPO series will help build human capital and support macroeconomic stability and effective policy making.

FY17 - Education,FY17 - Health,FY17 - Public Administration,FY17 - Social Protection

World Bank Group

Project

Government, Education