BBC Business Correspondent Joe Lynam: Don’t Burn Old Bridges, Just Build New Ones

Exclusive Interview

You have the rule of law, infrastructure and human resources, if you continue on this path, in 15 years Georgia will be the leader of the forecasted Caucasus – Joe Lynam, the Chief Business Correspondent of BBC, at the Silk Road Forum in Tbilisi this week.

Lynam visited Tbilisi in the frames of 2019 Tbilisi Silk Road Forum, where he led one of the panels. After, he talked to Georgian media about Georgia’s competitiveness, affordability and attractiveness. He also mentioned the positive international standing of Georgia in the component of ‘Ease of Doing Business’, (World Economic Forum) which is very appealing for investors and helps to earn their trust.

“These types of ratings are a good example. People need assurances to invest. They need to know the rule of law. They have to know if they enter into a dispute, the courts will be just. This is very important for international business. That is the reason investors are entering Georgia. You have rule of law, you have the infrastructure and human capital. If you continue on this path, in 15 years Georgia will be the leader of Caucasus.” he stated. “The Silk Road initiative could be the start of a major transformation for this country. One that makes this country wealthy and a home to its young people.” Lynam said in his opening statement.”

GEORGIA TODAY sat down with him to find out more of his thoughts.

With China and the US embroiled in a trade war, how do you think it might affect Georgia, a country that wants to attract as much investment as possible from both destinations?

Georgia should never take sides. The Prime Minister of Georgia should invite President Trump and XiJing Pi to Tbilisi to have a big discussion; they're going to Chile for the next few weeks and Georgia should be on that map. It should be seen as the new Reykjavik, the new Helsinki, the new Vienna; the ‘we will meet between Asia and the West and be together.’

Do you think we have that luxury considering Georgia’s special relationship with the United States?

Well, you also have a special relationship with China; you signed a free trade agreement recently.

But the US is still considered our main strategic partner in terms of NATO membership and so on.

And yet America is not very constructive towards NATO at this moment. The current president has shown no loyalty to NATO; has created a trade war. It's very important that China and America come together and to do that there will have to be some agreement because it will force the world into a recession.

How does the Russian factor change that equation?

You know the Russians better than anybody. It looks like China and Russia are getting a little bit closer, that's the problem. This is why you should not put all your eggs in the USA basket. We need to get a good relationship with Russia. It's tough when they are sitting in Abkhazia and Ossetia as they are; it is very tough. I don't know how to revise that. The basic perspective is we need to be nice to as many countries as possible as picking sides is not a good idea if you're a small open economy.

Some prominent experts advise that it would be better to stay clear from trade with and economic dependence on Russia, because it can be used as leverage.

I'd refer back to my own example here. When Ireland joined the European economic community, we knew back in 1973 that 60% of Irish trade went to one country, to the UK, now it is 12%. What you do is not burn any bridges with Britain or in your case with Russia; you continue on one bridge and add small bridges and that means travel and that means quality, always offer quality and rule of law. Look at another example, where a tiny country like Israel is now a very successful country surrounded by enemies. It can be done.

Can an independent country like Georgia actually have any long-term plans when if we look at situation from a realpolitik perspective, we don't really know whether tomorrow Russia might invade?

I don't know the answer to that. I just think that Russia wants to control its new neighbors, wants them to be dependent on them. Ask Ukraine, ask Moldova, ask those countries; it wants to create dependencies and it would be a mistake to be dependent on any one country. So if you can get your gas from somewhere else, I know it's more expensive, you get your gas from Azerbaijan and I know you're developing a lot of hydroelectric plants. There’s a lot of sunshine here in Georgia, some solar panels can make you independent. This is what's going to happen in the next 20 years; fossil fuels will go down, renewables will go up; you guys have sunshine nine months a year, 10 months a year, you can do something. We could even go wave power from the Black Sea. You're in a good position- remember Azerbaijan is landlocked.

What’s your insight on the Anaklia Deep Sea Port? It’s a much debated topic nowadays, with the consortium and the government seeming at odds as to how to proceed.

I know that having sea access is very important. I know Azerbaijan would love to have access to the sea. So, you make your ports open and free and cheap, and these countries will have to come in to your country to do business. It worked for Singapore, it worked for so many other countries. You make it easy to do business; make sure that Georgia doesn't burn any bridges, only building new ones. Look at how Ireland did it from the 70s: a very, very poor country and now the second richest in Europe.

By Vazha Tavberidze