On October 1, 2012 the Georgian
Dream coalition won in the parliamentary elections in Georgia which received a
majority sufficient to staff the government and carry out complete control over the country.
The coalition promised
the de-politicization of state structures, the release of the private sector
from state pressure, more democracy, transparency and more economic growth.
The most recent was a
promise to hold parliamentary elections in 2020 with a fully proportional voting system that would guarantee more equitable
distribution of forces in parliament.
However, all these
promises remained promises, moreover, the situation has not improved but even worsened compared with 2012.
10 major failures of the
“Georgian Dream” coalition:
1. The increase in poverty
According to the UN
Children's Fund, 69% of the population is poor, 24% are close to the poverty
line, and only 7% can be classified as middle class. It’s worth mentioning that the head of the “Georgian Dream” Bidzina
Ivanishvili dismissed Prime Minister Giorgi Kvirikashvili because of these data.
However, the dismissal of head of government has not changed anything
- poverty in Georgia continues to grow.
2. A sharp depreciation
of the national currency.
In 2012, the lari stood
at GEL 1,65 per dollar, since 2014 a permanent devaluation has begun, as a
result of which the rate reached 2, 85 as of today.
3. The external debt growth
According to the Ministry
of Finance, in 2012-2019 the country's external debt grew by $ 4.8 billion and keeps
growing - in 2020 the government is set to borrow another GEL 2.8 billion and
the public debt will reach GEL 22,7 billion that is 46, 8% of GDP.
4. A decline in foreign investment
As for the 3rd quarter of 2019, foreign direct
investment amounted to $ 908 million against $ 1.04 billion in the same period of
5. The rise in inflation
In 2012, Georgia’s inflation
amounted to 1, 40%, after the change of power in 2013 it reached 2, 40%, in
2017 - 6, 7%, in 2019 - already 7%.
5. The health system
At the end of 2019, the
Ministry of Health decided to introduce uniform treatment tariffs within the
state insurance program. Representatives of the clinics protested against this
decision for two reasons - in their
opinion, the tariffs were low, secondly, different clinics treat the same
diseases using different methods and the
cost cannot be the same.
The reform sharply decreased the
clinics revenue, led to dismissals and lower salaries and the refusal to carry
out the planned operations.
7. Tight lending regulations
The lending restrictions
imposed by the National Bank on obtaining loans entered into force starting
January 1, 2019 , as a result, mortgage
lending decreased by 40%, and the construction sector - by 4, 6%.
8. The rise in fuel price
In 2012, the average petrol
price was GEL 2, 26, in 2019 - GEL 2,77.
Over the past
5 years, international oil prices have decreased by 48% compared to 2012,
however, prices in Georgia are rising mainly due to the lari devaluation and
the increase in excise taxes by more than 2-fold in 2017.
9. Deterioration in
According to the PISA
2018 survey, among 79 countries included in the list, Georgia holds positions next to
Panama, Indonesia, Morocco, Libya, Kosovo, the Philippines and the Dominican
10. Migration growth
In 2018, 98 935 people
left Georgia that is 15, 8% more than in 2017. Of these, 86% are of working age
- from 15 to 64 years.