Georgia Donors' Conference - Welcoming Address 16/06/04

Georgia Donors' Conference - Welcoming Address

Brussels

16 June 2004

Prime Minister,

Chairman of the Supreme Court,

Deputy Speaker,

Ministers,

Ambassadors,

Co-chairs,

Ladies and Gentlemen,

It is my pleasure to welcome you to this donor conference on Georgia co-chaired by the World Bank and the European Commission.

We meet today a little over 7 months after the “Rose Revolution” in Georgia. The elections which followed, earlier this year, sent a strong signal that the people of Georgia wanted a fresh start. They made clear that they want a democratic Georgia based on the rule of law. A Georgia freed from corruption, which paralyses normal economic activity and only increases poverty. The fact that only 6 countries world-wide scored worse than Georgia in Transparency International’s 2003 corruption survey indicates how bad the situation had become.

President Saakashvili and Prime Minister Zhvania and his government represented here today therefore have a strong popular mandate for reform. There are, as a consequence, also very great expectations that things will improve. The stakes are high and the challenges ahead formidable. We have all been impressed with the determination that the new Georgian leaders have shown in starting to tackle the severe problems their country faces. The recently approved IMF programme for Georgia is a recognition of this. The agreement reached last week at the G8 Sea Island Summit on the anti-corruption “compact” for Georgia also demonstrates the widespread support for Georgia’s efforts in this field. Now there is a need to consolidate those early successes and develop a strategy for sustained reform efforts.

Today’s conference gives us an opportunity to learn from the Georgian government about its strategy for the coming three years and to discuss the support the international community can offer Georgia on the basis of the substantial document the government has submitted to the conference.

I believe there is now an opportunity to help build the foundations for a democratic and prosperous Georgia, at peace with itself, able to contribute to strengthening the stability and security of the Southern Caucasus and beyond. Neighbouring countries, of course, also have an important role to play in resolving long-standing conflicts and thus improving the prospects for all concerned.

There is therefore an important responsibility for all of us at this conference. A responsibility for the Georgian government to make good on its commitment to reform. And a responsibility for the international community to help and encourage Georgia along this path.

We cannot afford to await the success of the reforms before offering our support. We should commit ourselves now to assisting Georgia, since the next three years will be crucial in determining the future course of the country. Of course, this support cannot and should not be unconditional. We will wish to monitor carefully the progress Georgia is making and tailor our assistance accordingly. The final responsibility for Georgia’s transformation lies, after all, with its people. We welcome in this respect the government’s stated goal of reducing and ultimately phasing out Georgia’s reliance on external assistance.

The EU, for its part, has stated clearly its commitment to assist Georgia in implementing the political and economic reforms which are so badly needed. The Commission is therefore ready to mobilize significant European Union resources. At today’s conference, the Commission is pleased to be able to pledge over €125 million/$150 million of EC funds to Georgia over the period 2004-2006.Taken together with humanitarian and other assistance, total European Community aid to Georgia for 2004-2006 amounts to €137 million/$164 million. This represents a doubling of EU assistance compared with the previous 3-year period 2001-2003. My Commission colleagues will give you more details during the conference.

We take good note of the declared intention of the Georgian government to pursue closer integration with the European Union. We also welcome its commitment to achieve EU standards through legislative approximation. This is a key aspect of the Partnership and Co-operation Agreement which offers great scope for further deepening EU-Georgia relations.

EU enlargement has moreover brought Georgia closer to the EU. And on Monday in Luxembourg, the EU Council endorsed the recommendation of the Commission and agreed to include Georgia, Armenia and Azerbaijan in the European Neighbourhood Policy. This marks a significant step forward in the EU’s engagement with the South Caucasus region, following the appointment of an EU Special Representative for the region last year. Within the European Neighbourhood Policy, each country will be given the possibility to develop its links with the EU and will be treated on its individual merits. The Policy is based on a commitment to the shared values of democracy, rule of law, good governance and respect for human rights and to the principles of market economy. The progress made by the countries of the Southern Caucasus, including Georgia, in implementing political and economic reforms will be a crucial factor determining the level of the ambition of our relations with each of the three countries.

As another indication of the EU’s strengthened engagement with regard to Georgia, the EU Council further agreed this week to send a rule of law mission to Georgia which will complement EC assistance in this field.

Co-chairs,

Let me conclude my remarks by wishing all participants a fruitful day’s discussions. I am convinced you will emerge from the conference impressed by the strong will of the Georgian government to offer a brighter future for its people and its clear ideas about how to achieve this. I also trust that Prime Minister Zhvania will return to Tbilisi convinced of the importance the international community attaches to a democratic, stable and prosperous Georgia and its readiness to help the Georgian government and people to achieve this goal.