Private Property and Economic Development
The transfer of state-owned assets to private ownership is still a topical issue for Georgia. Although quite big part of the assets was transferred to our citizens in the 1990s and then in 2004-2012, the government still controls much of the country's economy in one way or another. On the other hand, the privatization of the 1990s was unfairly perceived by many people, so continuing this process involves some political risks. Thus, not only the expansion of private property is an important topic, but also a comparison of the effectiveness of different ways for achieving this result. This is especially important during the economic crisis caused by the COVID-19 pandemic, when the economic policies of governments should be focused on increasing the efficiency of the use of existing resources.
The purpose of this document is to illustrate the importance of expanding the area of private property distribution (especially for the Georgian economy) and at the same time to break down the widespread stereotypes about this process.
To achieve this goal, we reviewed existing academic studies and reports from international organizations, studied the results of specific privatizations and reforms, and their impact on both economic growth and the dynamics of individual asset efficiency.
Note: The full document is available only in Georgian.