Speech_Zurab_Nogaideli_28November05



Speech by HE Zurab Nogaideli,
Prime Minister of Georgia

28 November, 2005

CER/GMF seminar


GEORGIA SINCE THE ROSE REVOLUTION: A STORY REFORM

  • Let me begin my expressing my thanks to the organizers of this event- to the German Marshal Fund - and Mr. Ron Asmus, to Mark Leonard of the Centre for European Reform, and to Mr. Toomas Ilves for agreeing to join me today for this important discussion.
  • In particular, I'd like to thank Mr. Mark Leonard and draw attention to his recent piece, written together with Charles Grant on the EU and Georgia…
  • I believe it is one of the most concise and informative papers written to date - and that it provides a very constructive and thoughtful set of views that can aid policy makers here in Brussels and in Tbilisi.
  • And of course, thank you to all of you - for taking time out of your busy schedule to join us here.
  • As some of you might know, just a few days ago, the people of Georgia celebrated the two year anniversary of our Rose Revolution.
  • And like two years ago, thousands of Georgians came out to stand in front of the Georgian Parliament. But this time they came to stand in celebration and in joy - because of the results that have been achieved, and because of their hope and belief in Georgia's future.
  • For unlike two years ago, Georgia today is a nation transformed.
  • Transformed because it is led by a legitimate, democratic government that has kept its promises to fight corruption, to improve public services, to re-build Georgia's roads and infrastructure - and to turn around its once ruined economy.
  • When I speak of the new hope and joy of the people of Georgia - I prefer to speak about objective statistics and research - not the subjective opinion of politicians.
  • And here I am referring to GDP growth of 9% this year - of a state budget that is five times larger than before the Revolution - of more than 495 km's of new roads - and of an economy no longer burdened by complex taxes, disorganized Customs or thousands of regulations and permits.
  • I also speak about growing and enduring public confidence in the new Georgia - where recent polls conducted by the Gallup Group show that more than 71% of Georgians remain optimistic about their future…
  • Where the leadership of the Government enjoys greater than 70% approval…
  • Where support for Georgia's NATO aspirations run above 75%...
  • And perhaps most importantly, where for the first time in the post independence period, public confidence in Georgia's state institutions is growing - and here I mean in our police where it is above 75% - an unthinkable number in the past, and also in the judiciary, army, prosecutors offices and other areas.

INSTITUTIONALIZING REFORM IN GEORGIA

  • This growing faith in public institutions is perhaps the most important feature of post-Revolutionary Georgia.
  • As we are firmly entering a NEW phase when personal leadership is not driving reforms - but rather, democratic and responsive institutions…
  • Georgia today is a functioning, healthy and stable State due primarily to the institutionalization of democratic governance and reform…
  • I offer here just a few examples - examples that highlight just how profound our commitment has been, and remains - to eliminating corruption and rebuilding our State.

FISCAL REFORM AND THE BUDGET…

  • No more State borrowing
  • Five times growth in size of State budget (use numbers)
  • Growth in tax collection (use numbers)
  • IMF/World Bank relationship ("ownership and partnership")

RENEWED INVESTMENT CLIMATE…

  • IFC/World Bank Study
  • Reorganization of tax administration and reduction in number of taxes and rates.
  • Elimination of 85% of licenses and permits
  • New Customs Code

EDUCATION REFORM…

  • National exams story
  • New school repair story

ENERGY SECTOR REFORM…

  • First year with no shortages…
  • Clean and honest officials/transparency
  • Privatization (boost to economy and anti-corruption)

LOCAL SELF GOVERNANCE AND JUDICIAL REFORM…

  • Priorities for 2005-2006 is to further deepen and broaden democratic reform and democracy's reach in Georgia.

REFORM MATTERS - DEMOCRACY NEEDS RESULTS

  • The reforms that I have just described are important because they prove that democracy can deliver - that democracy CAN and DOES improve people's lives.
  • These reforms show that there is no trade-off between stability and democracy…
  • …But rather, democracy's most important contribution is the establishment of Law and Order - BASED ON RULE OF LAW.
  • Democracy is not chaos.
  • Democracy is the only path to lasting stability - despite what some other neighbors might argue.
  • And Democracy is equal opportunity - so that the energy and strength and creativity of each person can be realized and unleashed in a free and fair manner.

FROZEN CONFLICTS: SOUTH OSSETIA AND ABKLHAZIA

  • I would like now to turn to the issue of Georgia's conflicts, and in particular, to discuss with you today our comprehensive approach to solving them through exclusively peaceful means.
  • As a democracy, we know that peace is the only path - and as such, it is Georgia's path.
  • Be in it Abkhazia or South Ossetia - our commitment to peace is unwavering.
  • Today, without de-emphasizing or taking anything away from our efforts in Abkhazia, I would like to focus my remarks on South Ossetia.
  • Not because we have forgotten Abkhazia or because we are less focused on Abkhazia - but rather, because we have taken a decision to focus on a step by step approach to conflict resolution.
  • One that is measured, one that is thorough, and one that will be successful.
  • Over the past two years, we have been working diligently and resolutely on building peace in South Ossetia, and I am optimistic and confident that peace is possible!
  • Why am I confident about peace now?
  • Because we are a strong and united government that functions as an accountable and transparent democracy…
  • Because we have a strong mandate from our people…
  • Because on the ground in South Ossetia, there is no ethnic hatred between peoples…
  • Because we have a comprehensive and detailed road map for peace…
  • And because we believe that today, there is a greater international commitment to help make peace a reality.

A FEW WORDS ON THE PLAN…

  • The plan that we are currently working on was launched in 2004 when President Saakashvili addressed the United Nations, laying out a three phase approach to peace…
  • In that speech, the President discussed demilitarization - investment in social infrastructure and the economy - and then, discussions on the final political status of South Ossetia as the path forward to a lasting settlement.
  • Today, those three phases continue to define our approach, and as many of you know, we have continued to refine, develop and add more detail to our peace efforts.
  • Worth mentioning, during that speech the President also stressed the need to enlarge the role of the international community…
  • So that a new negotiation format could be established - one designed to make serious progress and a lasting settlement…because unfortunately, the current format is not able to do that today.
  • A fact recognized by all - if resisted by some.
  • And we are working actively with our partners to bring that about. (Was just in Moscow discussing the issue with our Russian partners…)
  • Nevertheless, we continue our efforts to reach out, including the President's peace address to the Parliamentary Assembly of the Council of Europe last January…
  • The Batumi conference held last summer…
  • And more recently, the detailed peace road map that I shared last month at the OSCE in Vienna.
  • Today's roadmap includes specific steps towards peace…and many of these steps are in fact unilateral, designed to show just how serious and just how committed Georgia is.

Highlights include:

  • A law on restitution guaranteeing the right of all to return.
  • Guarantees for the rights and representation of Ossetians throughout Georgian State institutions (Parliament, Government, Judiciary, etc).
  • Protection of language, culture and history.
  • CBM's in the economy, culture, education, sport, healthcare, etc.
  • Pension distribution.
  • Infrastructure rehabilitation - both from the OSCE needs assessment (currently underway) and from Georgian government unilateral pledges on the village level.
  • Establishment of free economic zones.
  • And rebuilding of trade ties that are legal and benefit all citizens of the region.
  • The key at this stage is to keep talking and to expand the discussions.
  • It is also to engage our Russian partners, and show them that peace is in their direct interest.
  • We need to make them part of the solution - and I think this is possible.
  • I think peace is possible because as I mentioned before…on the people's level…in the villages of South Ossetia, people are not in conflict.
  • There is no ethnic hatred, no painful ethnic divisions.
  • Rather, the people of this region are united in the common aspiration for a better life - for better schools, for new jobs, for the ability to travel and to learn and live in safety.
  • This fact, combined with our firm commitment to peace, gives me great hope - and spurs all of us who are part of the political leadership to do more.
  • And Georgia does plan to do more - in pursuit of peace - and in order to prove that democracy can and democracy will allow all of our citizens to live in safety and prosperity.
  • GEORGIA'S NATO ASPIRATIONS

  • Allow me to now turn to Georgia's aspirations for a closer relationship with, and eventual membership in NATO.
  • As all of you well know, Georgia has stated our hope that we will qualify for MAP in 2006 and be considered for NATO membership at the time when NATO next considers inviting additional members.
  • We recognize this is an ambitious goal, and we recognize that the time table will be set by NATO - not by Georgia.
  • NATO membership is our aspiration, just as it was for so many new democracies before us, because we share the values and goals of the Members of this Alliance.
  • We do not seek NATO membership as some kind of a quick fix for our security situation. We seek Membership because we seek to contribute to Euro-Atlantic security and defend the values which NATO was founded to protect.
  • For Georgia, NATO is a natural security destination for our European democracy. That is why Georgians have served with NATO forces in Kosovo and Afghanistan, and with Coalition forces in Iraq.
  • I want to be perfectly clear. Georgia recognizes that NATO will make its decisions based on performance. We know there is no "political shortcut" to NATO, if we do not perform. Similarly, we expect there will be no "political roadblock" when we do perform.
  • Last year, all Georgians were heartened by Secretary General Scheffer's words when he visited Tbilisi and said: "…NATO has an open door for any nation, including Georgia, who wants to share and defend those same values which have always been at the core of NATO."
  • The hope and fairness represented in that statement is our inspiration. We know we are not ready to walk through that door today. Our goal is to become ready - through hard work and with the support and encouragement of Alliance Members - as soon as possible.

IPAP

  • Over the last 18 months in our Individual Partnership Action Plan with NATO, Georgia has made significant progress in conjunction with NATO, and NATO members have given us invaluable advice.
  • We have set up a State Commission and six separate working groups to coordinate and implement our IPAP tasks in individual Working Group Action Plans.
  • As each of you know, inter-agency coordination is often difficult to establish and I am personally pleased that NATO has recognized our progress in this field.
  • NATO has also recognized our progress in regional security cooperation, counter-terrorism, judicial reform, passage of human rights and anti-corruption legislation, intelligence cooperation, scientific cooperation, civil emergency planning, public awareness of NATO and the peaceful resolution of conflicts.
  • Much remains to be done in all of these fields but Georgia and NATO agree that we have moved forward, and that we continue to move forward in meeting our IPAP goals.
  • Georgia has also made progress in a number of defense, security and military reforms.
  • Our defense sector is under civilian control and we have dedicated resources to modernize our armed forces including appropriate funding levels in line with NATO standards - and here I mean 3% of GDP in 2005 and 2006 - and an obligation in the future to dedicate 2% of GDP.
  • We have completed the key building blocks for our ongoing defense review, including our National Security Concept, our National Military Strategy, our Threat Assessment, and our Personnel Inventory.
  • And we have moved to address NATO concerns about transparency in procurement - concerns shared by our Parliament and our civil society - by providing information about expenditures and moving to close the Army Development Fund.

OVERCOMING OUR CHALLENGES

  • Noting our accomplishments is, we know, not enough. There are shortcomings as well in our defense reforms.
  • And we appreciate our NATO partners identifying these shortcomings as we work to turn them around.
  • Let me address the two deficiencies that we see as most immediate.
  • First, we have taken NATO's advice to go slower and get it right in our Strategic Defense Review (SDR). This is a very rigorous and complex process…that we understand even some NATO-member countries have still not undertaken. We take the SDR very seriously and we will complete it next spring.
  • Second, we know we have more to do in modernizing our command structures. We are making our general staff more effective in planning, making our General Staff more "joint," and separating the operations function from the General Staff to a new Land Forces Headquarters.
  • This fundamental re-shaping is not easy and it will not happen overnight. But it will happen - and is happening right now.
  • We recognize how important it is to have a coherent SDR product that is based on our now-completed threat assessment, national security concept and military strategy.
  • The SDR will guide our force planning, procurement, training and doctrine development for the future.
  • And will address our unique security environment in a manner that meets NATO standards for strategic planning and meets Georgia's needs for defense in the future.
  • Thinking about the challenges posed by Georgia's integration into NATO structures, let me acknowledge how much we value the support NATO has provided Georgia in our historic journey.
  • For that, we are deeply grateful.
  • We know many countries have worked very hard to transform their militaries, their defense ministries, and their societies to qualify for NATO membership in last decade.
  • For that, we are deeply respectful.
  • Today, there are three NATO members on the Black Sea. With our continued hard work - we hope to increase that number before the end of the decade.
  • Georgia believes that a greater NATO presence on the shores of the Black Sea will enhance regional security.
  • We believe a greater NATO presence in this vital region will enable us to meet new threats and better defend our shared values.
  • And we believe it will enhance the security of the entire Euro-Atlantic community of democracies in this young century.

European Neighborhood Policy and Action Plan

  • Before finishing my remarks, let me also turn to Georgia's relations with the EU and express my support for the discussions soon to take place on the establishment of an Action Plan between Georgia and the EU.
  • This Action Plan - part of the EU's New Neighborhood Policy represents an important step forward in deepening Georgia's relations with the EU, and bringing us closer together.
  • I am optimistic about the direction that our relations are taking and want to say frankly that we understand that a strong relationship is one based on close cooperation - and above all - shared values.
  • Because Georgia is a European nation - in culture, history, and national identity, I am confident that our relationship can only grow closer.
  • Georgia's Action Plan will focus on the creation of a 5 plus 2 format.
  • Under the terms of the Action Plan, Georgia and the EU plan to deepen our cooperation in rule of law; security issues; the EU's four freedoms (ease of movement of goods, services, capital and visa policies); infrastructure and communication and education reform.
  • In addition, we will work together towards the peaceful resolution of conflicts; environmental protection; and regional cooperation.
  • Taken together - I believe that this Action Plan represents an excellent basis for Georgia and the EU to deepen our partnership and deepen our ties.


CONCLUSION

  • I would like to thank all of you today - for your interest in Georgia, and for your support to Georgia.
  • I hope I have not spoken too much…
  • But I also hope that my presentation has shed some light for you on what is happening in my country…
  • A country that has for many millennia been a part of Europe…
  • And one that is now undergoing a dynamic democratic transformation, that is once again bringing us back to our European family.