The World Bank tries to pre-empt economic crisis in Georgia

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NEWS RELEASE
Contacts:
In Washington: Michael Jones (+1-202) 473 2588
Mjones2@worldbank.org
In Tbilisi: Inga Paichadze, (99532) 91 30 96 / 91 26 59
ipaichadze@worldbank.org


World Bank Statement on Georgia

WASHINGTON, August 21, 2008 -- The following is a statement made by Theodore Ahlers, World Bank acting vice president for Europe and Central Asia today in Washington:

"At the invitation of the Georgian government, a World Bank economic assessment team will leave for Tbilisi tomorrow. The World Bank remains committed to improving people’s lives in Georgia, and will continue with its ongoing support to economic reform and development in the country.

In the coming days we will work with the Georgian government to assess the economic impact of recent events and to recommend policy measures directed at fostering growth and protecting against poverty.

Georgia has strong economic fundamentals, the result of a committed reform program and prudent fiscal management by the government. These factors will help the economy to weather the impact of the conflict. The economy is, however, dependant on external investment, and growth is likely to be temporarily dampened as investors adopt a wait and see attitude.

The World Bank is in close discussions with the government on measures to minimize the impact of disruptions on peoples’ lives. At the government's request the Bank will assist the authorities in assessing the toll of the damage and reconstruction needs with international partners and other stakeholders through a follow up mission.

In this task, the Bank will focus on the infrastructure, environment, and agriculture sectors and on the needs of the internally displaced population. It will also assist the authorities in setting up a multi-donor trust fund for reconstruction investment to ensure a speedy recovery from the conflict and to ease the suffering of all of its victims.

The World Bank notes with grave concern the reports of forest fires in the Borjomi area of Georgia.

As a long-standing international partner which has been supporting improved environmental and forestry management throughout the South Caucasus region, the World Bank sincerely hopes that arrangements can be made urgently to facilitate access to the area of the necessary equipment and other resources to bring these fires under control as soon as possible.

The Bank will remain in close consultation with the authorities as needs evolve and will respond flexibly and speedily with policy advice and financing in the present difficult circumstances facing the Georgian people."

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