The FINANCIAL — “The Netherlands might still be one of the bigger investor countries in Georgia in 2013. It would be dependent on the perception of Georgia being a politically and economically stable country. I have noticed that many companies are at the moment waiting to see how the domestic situation in Georgia will develop this year,” Pieter Jan Langenberg, Ambassador of the Kingdom of the Netherlands to Georgia, told The FINANCIAL.
Ambassador Langenberg considers political and economic stability to be the main factor in boosting investor interest. “The deep and comprehensive free trade agreement being negotiated with the EU will certainly help, by harmonizing your legislation with the EU, but it will not work without proper implementation,” said Mr. Langenberg.
Q. Before the October 2012 parliamentary elections, international organizations largely approved of the reforms being carried out in Georgia. Since the change in power however, many complaints have surfaced regarding unfairness and pressure from the previous administration. Has there been any difference in your views?
A. Generally speaking, the international community has welcomed publicly most of the electoral reforms implemented by the former government. At the same time there was always criticism too, e.g. about the way the State Audit Office was operating in early 2012, or media access (must-carry/must-offer legislation) or perceived pressure by administrative resources. This was communicated in different ways, not always by public channels but quite often by silent diplomacy as well. At the same time the Netherlands thought it was constructive to finance projects together with the Council of Europe and Netherlands Institute of Multiparty Democracy in which, e.g., the Central Election Commission was supported by training, parallel vote tabulation financed, and a website by NIMD supported – www. partiebi.ge. Last but not least, the Dutch Embassy staff members were contributing by monitoring the elections themselves.
Q. The Netherlands is among the list of countries who invested the largest volume of FDI in Georgia in 2012. What is the perspective for 2013? By how much percent should a decrease in Netherland’s FDI be expected?
A. It is saying something that you think that foreign investments will slow down. The Netherlands might still be one of the bigger investor countries in 2013. It would be dependent on the perception of Georgia being a politically and economically stable country. I have noticed that many companies are at the moment waiting to see how the domestic situation in Georgia will develop this year. It is also important for Georgia to honour its ongoing financial legal obligations: some Dutch companies have mentioned delays in payments, which – if true – would have a negative impact on foreign willingness to do business here and to invest.
Besides, there are a number of economic instruments available by the Dutch Government to stimulate private and public investments in Georgia. A good example is the ORIO programme (www.orio.nl) that the Government may make use of for large infrastructural projects in the field of irrigation. The Embassy is also there to help small and medium-sized companies in finding suitable partners through its match-making facility (www.agentschap.nl/en/programmas-regelingen/matchmaking-facility-mmf) and PUM consultancy (www.pum.nl). I really think it is useful to make good use of it.
Q. Which business sectors should be considered the most attractive for Dutch investors in Georgia?
A. As Holland is a superpower in the area of agriculture and food production, and the Government is giving it priority, it certainly would be on the top of my list. The Embassy is in the process of organizing a trade mission of Dutch agricultural companies to Georgia for the end of the year.
We organised last December the Days of Dutch Architecture, I think that everybody knows Kutaisi Airport designed by Dutch architects from UNStudio. We will organize Days of Water shortly (22-23 May) too, having the necessary experience in water management, coastal protection, irrigation. Everybody also knows Poti harbour, where Boskalis was responsible for the breakwater structures. Last but not least, we can help Georgia to improve its sports infrastructure with UEFA Super Cup and the European Youth Olympic Festival coming up.
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The Netherlands has always supported the territorial integration and sovereignty of Georgia.
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Q. Russian is threatening many of its political and trade partners because of their position regarding Georgia’s possible membership to NATO. Russia said it will be opposing this process. Do you think that there are other ways for Georgia to ensure its security and territorial integrity without joining NATO?
A. First of all every nation should be entitled to make their own policy choices as far as political alignments are concerned. Other countries should not interfere in this process. Georgia is currently securing its territorial integrity without being a NATO or EU member. Personally I think that by developing your country economically and democratically, and by approximating EU and NATO standards more and more, your security will increase in an equivalent way as well.
Q. Six months have passed since the October elections. How would you evaluate the new government in regard to meeting the promises they originally made to the people?
A. It seems to me that the new government is very conscious of the high expectations raised when being elected. The Government always indicates that it wants to be realistic in its promises. We have the first 100 days behind us, and the first judgment might be made by the electorate in the upcoming by-elections, but the October presidential elections will be more indicative. I think that the Prime Minister’s answer to the EPP letter from a number of MEPs was illustrative in what has already been accomplished and what not yet.
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