Georgia Enforces Law on the Development of Mountainous Regions

On July 31st a newly adopted law on the Development of Mountainous Regions, which hopes to give people poverty reducing benefits if they live in the highlands in Georgia, as well as incentives for businesses and budget support to economic and social development, came into force.

Tax exemptions for selected companies operating in mountainous areas, higher salaries for teachers and medical staff, improved social benefits for local residents and increased social assistance for pensioners are all a part of the new law. More opportunities and support for infrastructure and business development in the highlands are also under the law.

“The new Law establishes objective criteria for classifying mountainous areas and settlements. It provides important and substantial social, economic and business benefits, together with a guarantee of annual funds from the national budget reserved for mountain development,” said Tengiz Shergelashvili, Deputy Minister of Regional Development and Infrastructure of Georgia.

The selection of mountainous settlements that qualify for privileges and support will be undertaken by the National Council on Mountainous Regions, to be formed by the Prime Minister of Georgia. They will propose the list of settlements and present it to the Government for approval based on the criteria specified by the new law. The funds will be provided by the national budget through the specially designed Mountainous Areas Development Fund.

Georgia’s PM, Irakli Gharibashvili, stated that the Government’s task is to keep people in the mountains.

"We did not have any laws on mountains and mountainous regions were completely abandoned. Our government's promise was an adoption of a law on the mountain. The new law includes a number of social benefits, including an increase of pensions and also allowances for teachers. Doing business will be completely free. Our main task is to keep people in mountainous regions. This is our main wealth and capital, and we need to keep it" he said.

The draft law was prepared by the Government of Georgia with the Ministry of Regional Development and Infrastructure leading. Support was provided by the Swiss Cooperation Office for the South Caucasus, Austrian Development Cooperation and the United Nations Development Programme (UNDP).

Shombi Sharp, head of the UNDP in Georgia noted “Drawing on international experience, the new Law presents an important opportunity to help reduce poverty and improve the quality of life in the mountainous areas through enhanced human and economic development.”

Photo: David Moskowitz, three men from the village of Iprali work in concert cutting wild hay in a high elevation meadow in the Sveneti region of the Republic of Georgia.

03 August 2015 14:30