The FINANCIAL -- A member of the “Georgian Dream”, Ilia Tsulaia, in his speech before the Parliament of Georgia stated: “We have quite weak regulations of business control and Georgia is one of the world’s leading nations in that regard.”
FactCheck verified the accuracy of Ilia Tsulaia’s statement based on indexes of the Economic Freedom and Global Competitiveness as well as Doing Business ranking.
According to Heritage Foundation’s report, Georgia occupies 13th place among the countries with free economies in the world, whilst it is number five in Europe, which is a high ranking position and indicates that the country’s economy is mostly free. For more clarity, in the same ranking Armenia is 33rd, Turkey is 60th, Azerbaijan is 68th. Russia is 111th and Ukraine is 166th.
Heritage Foundation measures economic freedom of the countries based on four benchmarks, including regulatory efficiency. The latter is further composed by three sub-categories and assesses the countries’ performance in terms of business freedom, labour freedom and monetary freedom. Of 186 nations in the world, Georgia is ranked 16th in terms of business freedom criterion (87.2 points out of 100 points), 25th in terms of labour freedom (75.9 points out of 100 points) and 96th in terms of monetary freedom (78.2 points out of 100 points).
Georgia holds 59th position in the Global Competitiveness ranking. One of the ranking’s criteria is a burden of government regulation in a given country. Of 138 countries, Georgia is ranked 8th in that component. In terms of government regulatory burden Azerbaijan is ranked 17th, Armenia is ranked 42nd, Turkey is ranked 71st, Ukraine is ranked 74th and Russia is ranked 103rd.
Of 190 countries in the World Bank’s Doing Business ranking Georgia occupies 16th position, which shall also be considered as a good performance. The ranking assesses ease of doing business (three phases: starting a business, management of business and close of business) for entrepreneurs based on 11 components under the existing government regulations. Georgia is ranked third after Macedonia and Latvia in Europe and Central Asia Region. In the same ranking, Armenia occupies 38th position, Russia 40th, Azerbaijan 68th, Turkey 69th and Ukraine 80th.
FactCheck used Economic Freedom and Global Competitiveness indexes, as well as Doing Business ranking to verify the accuracy of Ilia Tsulaia’s statement. All three report illustrate that Georgia has less than average business regulatory burden is ranked as one of the world’s leading country in that regard.
Based on the undertaken analysis, FactCheck concludes that Ilia Tsulaia’s statement is TRUE.