Opinion Editorial

Deputy Secretary of Commerce John J. Sullivan
Opinion Editorial, Resonansi, Tbilisi, Georgia
“America is Committed to Georgia’s Success Today and Tomorrow”

Throughout his Administration, President Bush has clearly expressed his strong support for a free and democratic Georgia. After violence in August threatened the stability of this great nation, the United States stood in solidarity with the Georgian people and immediately provided more than $50 million in emergency relief, including aid delivered via air flights and through the Port of Poti.

As Georgia rebuilds its infrastructure, the United States government and American businesses are also working to strengthen the economy. In September, President Bush directed the Secretary of Commerce to assist U.S. firms interested in trade and investment in Georgia and dispatch a trade mission to Tbilisi. We are honored to fulfill that commitment with our visit.

This week, more than 130 companies will convene at the U.S.-Georgia Business Summit to learn more about investment opportunities and a wide range of industries in Georgia, including: food processing, real estate development, tourism, chemical and fertilizer manufacturing and energy. Their participation demonstrates their strong confidence Georgia’s bright future.

Under President Saakashvili’s leadership, Georgia has moved toward greater democracy, openness and acceptance of free markets. This has clearly been paying off for the Georgian people. With a 12 percent growth rate last year, Georgia was one of the fastest growing economies in the world. It has been one of the best places to start and grow a business, ranking 15th in the newly released Ease of Doing Business study by the World Bank.

We are committed to doing more to ensure that Georgia remains a shining example of freedom and economic growth.

Last month, President Bush announced a multi-year economic support package for Georgia. The first phase includes $570 million, which will be made available before the end of 2008. It is targeted toward three broad areas: humanitarian assistance; reconstruction of infrastructure and facilities and support for Georgia’s economic stabilization and growth.

Today, the Overseas Private Investment Corporation (OPIC) will announce more than $176 million in economic assistance. Jobs and housing are critical elements to the success of Georgia’s economy and many of the projects announced today are in these sectors. The projects include:

• A risk sharing agreement with Citibank, which will then provide financial resources to TBC Bank to make mortgage loans;
• Similar loans to the Bank of Georgia for expansion of their economy mortgage lending program, co-financed with WorldBusiness Capital of Connecticut;
• A loan to SB Iberia, a joint venture between Iberia Real Estate and Bank of Georgia for the development of an apartment building for moderate income residents;
• A number of projects developed by GMT, including the development of business and residential buildings, as well as the expansion of a dairy; and
• Financing for the completion of the Hyatt Tbilisi.

These projects will stimulate increased employment for Georgia and also expand the availability of affordable housing.

Additionally, the Department of Commerce is planning several projects to develop trade partnerships that will increase economic growth throughout Georgia. The Department’s efforts to increase ties with Georgian companies and support exchange, training and development programs will deliver valuable rewards to the Georgian people.

The Department is also working to improve the business climate in Georgia for investors by expanding the Bilateral Investment Treaty and chancing the Generalized System of Preferences. We are confident that these important measures will encourage Americans to purchase Georgian products.

This is a pivotal time in Georgian history. As our two countries continue to work together, it is more important than ever that we remember the ideals of the Rose Revolution: freedom, democracy, free expression and free markets. Commitment to these ideals will always ensure the best future for citizens of both nations.