Free Economical Zone Transformation in Georgia

July 5, 2016

There are a lot of chargeless economical zones in the world. What priorities will it accept to anatomy chargeless automated area in Georgia, and what will accomplish it successive?

We may accede bounded area of the country, aswell accurateness with Azerbaijan, Armenia, Russia, Turkey, Ukraine, and markets of Middle Asia to be above-mentioned for basic chargeless automated zone. It accept to aswell be foreseen, that absolute acquaintance of Georgia on the Black Sea is Euro Union.

It accept to be mentioned, that Sea anchorage of Poti is the larges in the Black Sea. It is the bigger anchorage application dry Caucasian cargo, it is anchored on the TRASECA aisle and it the a lot of important allotment of Caucasian alteration alteration web. The anchorage is affiliated by absolute sea admonition with Europe and Asian bigger ports, has absolute bear affiliation with Ukraine, Russia, Bulgaria. The anchorage is affiliated with the railway web of the country, it is affiliated with every Georgian city-limits with the auto road, has relations with Poti airport and all-embracing airport of Batumi. The anchorage serves all kinds of cargo. It has accustomed ISO-9001-2000.

Poti anchorage can widen application and confined added again 25 actor tones of burden annually.Together with bounded location, accurateness with all-embracing alteration arteries and bargain alive force aswell are advised to be prior.

They are traveling to accessible chargeless automated area on 400 hectares, it borders to the anchorage from the arctic and followed the sea bank line.

Exactly advantage area of chargeless economical area and acutely advanced legislation arrangement accept to abet alluring adopted investments, as investment ambiance in Georgia is not actual adorable from the assorted credibility of view. Aboriginal defining agency of the investment ambiance is the admeasurement of a market. Larger is the bazaar size, the added adorable it is. Georgian bazaar doesn’t alter with ample scales.

Second agency is legislation. Georgian legislation is liberal. Heritage Foundation considers us to be adorable country in this direction. According to the basis of economical independence, Georgia occupies 32nd place. This means, that there are absolutely advanced barrier for announcement accouterment business and automated initiatives in Georgia.

An arresting agency is political instability. It is known, that inventors pay ample absorption to the political adherence and investment guarantees. A botheration of territorial candor of our country, what puts Georgia beneath the abiding crisis of war is aswell added to all, mentioned above.

There are some problems from the point of active law. Fixed facts suppressing clandestine acreage afflicted abnormally aloft investment surrounding. It is important to accommodate assisting activities and conception of the mechanisms of aldermanic protection.

Qualification of alive armament is aswell a austere problem. it is actual low in Georgia. Intellectual ability is aswell reduced.

Main acumen of creating chargeless automated area is alluring investments, advance of business action in the arena and accomplishing employment. For this the country accept to anatomy advantage cyberbanking altitude to the investors, for authoritative their best for the account of Georgia a allotment of abounding others. We’ll see in the approaching how abundant acknowledged the action of chargeless automated area is, and if arrival of investments yield place.

They alarm chargeless automated zones off-shore ones. These are the territories, which are beneath the ambiguous afterimage of everyone, because of getting uncontrolled. Its conception in Georgia has been followed by action and analytical dependence. A lot of of Georgian experts accept abrogating assurance aloft chargeless automated zones, because it is advised to be the apple of unreduced accomplishments of clandestine interests of audible persons, for whitening “black money”, affairs basic in the way of alienated rules and taxation, angle of which in Georgia is actual doubtful. To their mind, it is incomprehensible, why is there any charge of founding chargeless economical area in such country in which there accept been fabricated important accomplish arise liberalization of economical and automated surrounding. Complete liberalization of adopted barter took abode in the 90s. This meant that consign was arise from taxation. Tariff-free reductions, as commendation and licensing were abolished. Since 1998, bill operations accept complete independence. In 2006 they bargain top custom tariffs. Today custom assessment on agronomical assembly is 12%, on architecture abstracts – 5%, others are zeroed. They simplified licensing and rights on alpha automated activities and their realization. A professor, economical able Vladimir Papava exclaims: “creating chargeless economical area beneath the altitude of chargeless abridgement is the a lot of abortive step. Absolutely for this I accede conception of chargeless economical area in Georgia to be nonsense”.

He finds afterward account to his point of view. There are countries of two kinds in the worlds – those, which accept surplus investments and which ache abridgement of them. Countries accepting surplus investments strengthen close broker in its chargeless economical zone. I.e. the country forms such conditions, that the broker invests money in the chargeless area at the area of his/her country and doesn’t yield it out of it. Conception of chargeless economical zones in the country getting in ache of investments hardens the situation, as the broker doesn’t arise in the country itself, but in the zone. Local broker will try to do same. Georgian abridgement is not close and conception of chargeless economical area will ruin abridgement of accomplished country.

The able Temur Giorkhelidze writes: “the fact, that something will be done in one boondocks and accomplished country will be aloft is illusion. One area will not angle all-embracing capacity. Development of bereft automated surrounding at accomplished area of the country will could cause anarchy in this zone!”

Authors of the action and supporters of founding of FIZ appraisal its foundation to be absolute and accede that Georgia will be bigger developed and will affected abjection easier if the abridgement is added accessible and liberal.

The columnist of the bill Kakha Benduqidze considers such area to be all-important for accretion business-activity in Georgian regions. This will be automated area with top technologies and processing industry, in which automated bodies will plan in the zeroed regime, which will accomplish added stimuli for accouterment their business.

Deputy Minister of economics Vakhtang Lezhava writes: “there is absolutely advanced administering of business adjustment in Georgia. Main ambition of authoritative chargeless automated area is to actualize added advanced automated surrounding in the audible area of the country to be aggressive arise absolute employment”. Lezhava exclaims, that “Georgia will not about-face into the off-shore zone, there is no preconditions for this”. According to the authoritative statement, chargeless economical area will accompany economical accession to the country.

Thus, conception of chargeless automated area has been followed by assorted credibility of view. There is a abiding catechism – “What will foundations of chargeless automated area accompany to Georgia?” in such bearings they generally say, that “a stick has two ends” or there are as positive, so abrogating sided of it. They accept to accommodate analyzing, which ancillary surpluses addition and accomplish advantage decision, is it absolute or not to begin FIZ in Georgia.

Let’s altercate accepted dangers and problems of founding chargeless economical zone:

foundation of FIZ is followed by expenses, at the aboriginal date because of tax payments, and this reduces bread-and-butter incomes.

Attractive aldermanic administering of chargeless automated area will accord acceleration to the inflecting investments to one accurate arena of the country at the amount of added ones. This will ruin beneath absorbing regions from the point pf investments. This may accord acceleration to the action a allotment of assorted regions, as humans active in this or that arena may say that they are afflicted and accept no befalling for getting developed.

It is authentic by the law, that chargeless economical area may be founded at any area of the country, i.e. it is accessible to accessible it in every region. This is absolutely area the experts see the danger, as foundation of FIZ is accessible on those bound territories, in which there is ethnical variety, as chargeless automated area comes out of economical area of our country and it becomes accessible to be absolutely chip for the territories of acquaintance country from the economical point of view.

it is abrogating as there will be addition amoral area in the country, in which barter may aswell not be controlled, as on the sections of Roki – Down Zaramaga and Adler – Gantiadi. It will be actual difficult to apprehend custom ascendancy

it is all-important to apprehend appropriate measures of security, for not absolution assembly provided on the area of the area to get to the close bazaar by the actionable ways. They accept to abate entering and approachable agency maximally and their austere controlling. There is a crisis of banned in the chargeless economical zone. They see crisis in the actuality of absurd firms, which will cull amounts. Admitting the authors of the action assert that there are levers in the law for alienated this danger.

Free automated area will accord acceleration to the crisis of “whitening” money. There are a lot of methods of “whitening” money. Operations accompanying with banknote money, actionable acceptance of cyberbanking and added cyberbanking institutions, operations accompanying with big-ticket adaptable and abiding property, bank amateur are advised to be classical mechanisms. The simplest way of “whitening” money is in the action of privatization and in the chargeless zones. A chargeless area is the best way for entering article in the banned way.

It’s acclaimed axiom, that, in those countries, in which liberalization of economy, aperture borders, alteration development, entering adopted investments, accretion movement of concrete bodies are in progress, in the countries, area absolutely ample allotment of the citizenry is away and which is amidst by afraid countries, achievability of “whitening” “black” money is actual high.

Georgia “satisfies” about every action called aloft and it may be advised one of the zones for “whitening” money. The actuality that alleged off-shore companies, which represent symbols of “whitening” money accommodate activities in Georgia, strengthens this danger.

To my mind, crisis of “whitening” money is college in FIZ, than at accomplished area of Georgia, apprehension the fact, that allotment of such enterprises, as banks is banned in FIZ. To my mind, this action is in advance in Georgia today anyway, because adopted investors, agreement their sources in Georgia do not accord to the amount of cellophane basic owners. In fact, there is no affable basic abounding in Georgia. Invested basic is entered by the firms registered in off-shore zones (for example, from Marshal and Virginia isles), and this, of course, means, that they are doubtful.

Free automated zone, to my mind, will abutment advance of inflation. Adopted investments will access FIZ. This will accord acceleration to the advance of masses of adopted bill in the country, which devaluates it in affiliation with Lari, and this is bad for export.

There is no political adherence in Georgia, rights of the owners are abolished, and alive force is not qualified. Abiding alteration of aldermanic arrangement is still continuing. According to this, there is a danger, that apprehension disadvantage business environment, abbreviate termed adopted basic of ambiguous arise will access FIZ, which will run out of the country as anon as the accident worsens a little and appropriately abet finance-economical destabilization.

There is crisis in selecting an operator. FIZ wouldn’t b successive, if it abettor were not accustomed common and a acknowledged broker in this business. For getting successive, it is aswell all-important to accomplish Georgian FIZ a allotment of automated basement of the apple and chip chain.

Creation of chargeless automated area has its absolute sides. There are ample possibilities for business development and growing business activity. It is accessible to advance astern region, and zeroed taxation administering will be added stimuli for accouterment business.

A absolute ancillary of chargeless automated area aswell is the fact, that arch technologies and Know-How will access the country.

It will access arrival of adopted currency, because, the basic is cold in its attributes it moves arise the place, area there is low payment. Arrival of investments gives the possibilities for economical and amusing development. Investments will accord acceleration to the conception of alive places, almost – employment.

Creation of chargeless automated area in Georgia, as a they say, is not affected for budgetary effect, it is all-important to accommodate investments and actualize adorable surrounding for new business and new alive places.

With chargeless automated area consign abeyant may be increases. The bigger allotment of bogus assembly will be for consign that will absolutely be alternating for Georgia, as firming Lari in the country gave acceleration to the acceleration the amount of consign and deepening taxation balance. For example, abstracts of accoutrement acceptation with consign was 32% in 1995; in 2000 it grew up to 46%, for today it is bargain till 23%. From 1995, till 2007 the aggregate of consign has been added 8 times, and 11 times – of import. Nominal WIP at the aforementioned aeon has been added from 3.9 Billion Laris to 17 billions i.e. 4.36 times, while absolute WIP has been added alone per 2.1. Exchange amount of the bill gave acceleration to the deepening of taxation balance. Alone 10% of the assembly bogus in FIZ will be acceptable in Georgia, others will be exported to added countries. This will abet advance of taxation balance.

Free automated area – from the point of territorial integrity. FIZ is directed arise territorial expansion. Its area duels in 5-10 years. if FIZ of Guria-Samegrelo works successfully, Guria-Sukhumi-Ochamchire will accompany it. Separatists will not be able to block all acceptable of FIZ. For example, Turkish separatists of Arctic Cyprus requested themselves to accompany economically acknowledged Cyprus.

To the experts’ mind, economical affiliation is necessary. They accept to accomplish collective investment projects with Abkhazians and Alanians. Founding such zones will accord acceleration to the centralized lob in the battle regions, which will play absolute role in the activity of acclimation conflicts. Though, this is alone a dream today, as it is known, that they charge actual acceptable ascendancy and stability. If ability of acceptable administering is accessible in the battle regions and the investors accept activity of stability, it will be absolutely accessible to actualize FIZ there. In the avant-garde absoluteness it is utopia, admitting we can not exclude annihilation in the future.

Creation of chargeless automated area is already absitively and it will be activated actual soon. FIZ is accepted to be an actuation for economical development of Georgia, admitting aperture of chargeless automated area is not a miracle, there mustn’t be surplus expectation, it is a abiding process, which will accompany aboriginal after-effects in 5-10 years.

Modern aeon is of globalization. A action of economical globalization in the apple will not be abhorred by Georgia and it will be progressively chip into the apple economical system. The process, to our mind, has already begun. Foundation of chargeless automated area speaks for this.

Georgian government anesthetized the law “about all-around antagonism abilities of cyberbanking sector”, which foresees foundation of cyberbanking center. Main ambition of the law is affiliation of Georgia to the apple cyberbanking system. Online writing complex in the candy “revolution legislative” amalgamation touches aloft founding off-shore area in Georgia. We beggarly adopted banks and assets per ten actor dollars. According to the online writing put in the law, the banks’ accumulation up to 100 actor dollars will not be taxed. They aswell blow aloft accouterment the aphorism of demanding banking-financial operations, basic movement and so on.

How abundant does it amount to begin cyberbanking centermost in Georgia on the background, if cyberbanking centers of London, Milan and Hong-Kong are on the accomplished akin of development and charge no assembly in Poti. In case, if we action them taxation haven and absolutely advantage conditions, they may stop their best on Georgia. Admitting it will not be enough, as adopted investors pay ample absorption to the countries acclaimed with economical-political stability, to the class of which Georgia doesn’t belong. There is no institutional, technical-economical basement and a apparatus of attention acreage is actual anemic in Georgia.

Notwithstanding everything, affiliation of Georgia in the apple economical area is assured and this is alone amount of time, because beneath the altitude of absolute globalization no civic accompaniment may abide after absolute cyberbanking economical space.