GEORGIA - GEORGIE

His Excellency Nikoloz Lekishvili, Prime Minister of the Republic of Georgia

On behalf of the Georgian Government, permit me to express deep gratitude to the administration of FAO for its political, economic, humanitarian, technical and moral support and its assistance to Georgia when we were experiencing serious crises.

I also would like to extend President Edward Shevardnadze's warmest regards and best wishes to all participants. This is also to convey his deepest regret for not being able to participate in the present forum of such global significance.

Despite the grave consequences of the conflicts in Abkhazia and Tskhinvali region, as well as recent civil wars, in the course of the last year Georgia has managed to head along an innovative path of development. A new Constitution has been adopted, parliamentary and presidential elections have been held which, according to unanimous international experts' estimates, were free and fair. The economy in the country is on the way to gradual and stable development. Crucial economic reforms are being implemented with the assistance of international and European financial institutions which have already resulted, first of all, in practical stability of the national currency during the whole year since their introduction. Overall liberalization of consumer prices has taken place and, as a result, a state price regulation system was ultimately abandoned, affecting bread - the most important food product. The state monopoly on foreign trade has been abolished and favourable conditions for foreign investments are being created.

Georgia has established good relations with all neighbouring countries which, along with political and economic rehabilitation, allows our country to be an important stabilizing factor and to play the role of a transit country in a region of such major importance as the Caucasus. In this respect, our major project as a transit communications corridor for Eurasia, which is already underway, takes on paramount importance. This year Georgia and the European Union have signed an agreement of partnership and cooperation. Georgia was granted special guest status at the Parliamentary Assembly of the Council of Europe and this is another manifestation of Georgia's commitment to setting up democratic institutions, protecting individual liberties and human rights.

Georgia aims to bring its local legislative system into full accordance with international standards. In a relatively short period of time the country has adopted laws regulating manufacturing, foreign investments and reforms in the spheres of banking and taxation.

Agriculture is undergoing tangible reform as well. Georgian farming traditions are some of the oldest in the whole world but nevertheless Georgia was literally saved, thanks to the help of FAO, donor countries and other related international organizations when the country faced catastrophically hard times. We strongly believe that the present forum will open up new vistas for Georgia and other countries with transitional economies towards the elimination of food shortages and to help to supply healthier foods to their peoples.

Despite the obvious positive changes I have just mentioned, Georgia presently faces an extremely serious problem in food supplies to its population - 800 000 people in fact are on the verge of hunger. Three hundred thousand refugees from Abkhazia, living without homes and devoid of basic living conditions, are an additional burden to this already dire situation. As a result, gross agricultural production in 1995 as compared to 1990 dropped by 75 percent. This is why Georgia had to declare food self-sufficiency a priority area of agricultural policy to be implemented through its market-based institutions.

Georgia is not rich in arable land. The country occupies 69.7 Km² and only 44 percent, equal to 3 million hectares of this land, is used for agricultural purposes. There is only 0.6 hectares of agricultural land per capita, of which only 0.16 hectares is arable. There are all types of soils and all sorts of climates in Georgia. The country can produce various food products for domestic as well as export purposes. Present capacities of agriculture, food producing and processing enterprises are sufficient for processing all of the foods produced in the country. As a result of the economic policy carried out over the past few years, industrial enterprises were basically geared towards end-product processing. Georgia in fact used to be the main exporter of tea, citrus, fruits, wine, vegetables and other products for the former Soviet Republics. At present Georgia does not produce any of the agricultural products that can serve as staples for the country's economic development strategy and this also points to the specific nature of its agrarian-industrial sector. The possibilities that we have for diversifying production obviously reflect a great need for economic cooperation with countries around the world and for participating actively in foreign trade.

The reforms currently underway have speeded up the establishment of various forms of ownership and methods of land management. The process of privatization of manufacturing enterprises is also underway. Now manufacturers are the sole parties who come up with production policies, structure and capacities and who are responsible for the end product.

The reforms in Georgia have a sound legislative basis and laws on ownership of agricultural land, on leasing of agricultural land, and on agricultural enterprises have already been adopted.

Since 1992, the Georgian Government has given 678 thousand hectares, 23 percent of the total land of the country, free of charge to its population. This process will come to a close in March 1997 and, by its completion, the private sector will own 870 thousand hectares which amounts to 29.5 percent of the total agricultural land in the country.

Private ownership of land is now supported by law and this has created a favourable legislative background for foreign investments, the training of individual farmers, the setting up of cooperatives and other forms of management, forms of land lease, etc. The process of voluntary membership in farmers' unions and associations is underway. Farmers tend to set up credit unions for full-scale mobilization of credit resources which ultimately facilitate the formation of a credit market which is one of the major components of economic development.

The private sector is the cornerstone of agricultural production. In 1995 it produced 60% of the country's wheat, 79 percent of its vegetables, 65 percent of its sunflowers, 78 percent of potatoes, 50 percent of essential oils, 82 percent of its beef, 90 percent of its milk and 80 percent of its eggs. The process of privatization of processing enterprises is also in its final phase.

Land irrigation and drainage remain serious problems in our country. The western part of Georgia constantly requires drainage whilst the eastern part, with its continental climate, constantly requires irrigation works. Restructuring of both the irrigation and drainage systems requires huge capital investments. It is impossible to do so without international assistance. This will dramatically increase crop yields and will also create new areas for agricultural activities.

Estimates by experts and analyses of the socio-political situation in Georgia testify to the fact that, despite big changes and positive tendencies in the agriculture sector, far-reaching measures should be undertaken for its revitalization, otherwise the country will continue to remain dependent for foodstuffs on the industrialized nations.

I would like to mention, with gratitude, the 1995 Elite Wheat Seed Supply project carried out by FAO. A similar project is being administered this year as well. An anti-locust project is being developed but unfortunately this is not enough. Implementation of wider-scale projects aimed at the restoration of irrigation and drainage systems is necessary to restore the seed supply industry and to fight pests and crop diseases.

In today's world, not only hunger itself but even the fear of it should be eliminated. Such an attitude could provide us with a solemn guarantee for peace on our planet. I strongly believe that the results of the present forum will be another step taken in this positive direction, and we are deeply confident that the United Nations and other international organizations will support Georgia which is well on its way to building a democratic society.