Economic Prosperity Initiative: Sector Assessment Report

In recent years, a democratically elected, forward-looking government has created an empowering, laissez-faire business environment to complement these natural endowments as well as an atmosphere in which business can flourish. Recognizing that this combination of assets and opportunity is rare in the world, the U.S. Government wishes to strengthen, deepen, and institutionalize these developments to ensure continued peace, stability, and democratic political and economic growth. The Economic Prosperity Initiative (EPI) project has conducted sector assessments for agriculture and non-agriculture in Georgia. Through these assessments, the EPI has identified priority sectors for project intervention and several potential value chains for focus within these sectors. The EPI's broad goal is to improve enterprise, industry, and country-level competitiveness by identifying and enhancing the growth rates and productivity of enterprises in the economy, thereby enhancing the economic well-being of workers in the economy. The EPI contract sections require the evaluation of agriculture and non-agriculture sectors, with ICT being one of the sectors evaluated. The teams of value chain analysts began the process of prioritizing economic sectors by their potential in achieving the EPI's goal and meeting various high-level EPI targets. This led to the identification of priority agricultural, non-agricultural, and "cross-cutting" sectors. The team of value chain analysts started with a "long list" of potential sectors for project intervention, developed on the basis of the EPI Scope of Work, proposal-phase research, and meetings with key businesses, the government, and other stakeholders. The list included all major elements of the Georgian economy that could potentially be the focus of EPI. The EPI then assessed each sector on the basis of market growth, skills and capacities, resources and inputs, market constraints, and SME linkages. The sector assessments were conducted through available reports, online data, government statistics, and more than 200 meetings with individuals, businesses, government, and other organizations. The selection of sectors is the first step in identifying and prioritizing those to improve competitiveness within the EPI's mandate. However, the selection of sectors is not enough by itself, and EPI will work with specific product or service providers to make informed, sustainable, high-impact decisions on priority initiatives. The EPI's sector assessments have identified several priority sectors, including agriculture, dairy, fish and sea products, grains, hazelnuts, honey, meat, non-timber forest products, p-crops, tea, vegetable, and wine. The assessments have also identified several potential value chains, including value chains for dairy, fish and sea products, grains, hazelnuts, honey, meat, non-timber forest products, p-crops, tea, vegetable, and vegetable. The EPI will now assess these value chains in greater detail to determine priority value chains that EPI will support Georgia's competitiveness growth. Additional sectors and value chains may be added in the future due to new gains in knowledge in project implementation and opportunities that may arise. The EPI's sector assessments have provided a comprehensive understanding of the Georgian economy and its potential for growth and development. The EPI's sector assessments have identified several key findings, including the potential for growth in the agriculture sector, the need for improved competitiveness in the dairy sector, and the potential for increased exports in the fish and sea products sector. The assessments have also identified several key recommendations, including the need for improved infrastructure in the grains sector, the need for increased investment in the hazelnuts sector, and the need for improved market access in the honey sector. The EPI's sector assessments have provided a comprehensive understanding of the Georgian economy and its potential for growth and development. The assessments have identified several priority sectors and potential value chains, and have provided a framework for EPI to support Georgia's competitiveness growth. The EPI will now work with specific product or service providers to make informed, sustainable, high-impact decisions on priority initiatives.