Georgia
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                          Country Partnership Strategy FY2014-2017

                                           Chair Summary ∗

                                             May 8, 2014

       Executive Directors discussed the joint IBRD/IDA/IFC Country Partnership Strategy
(CPS) for Georgia for the period FY2014-2017.

        Directors noted that the CPS reflects an appropriate response to the Government’s Socio-
Economic Development Strategy. They commended its over-arching focus on achieving faster,
more inclusive and sustainable growth, while seeking a greater focus on social outcomes.
Directors also noted that the CPS is aligned with the country’s own development framework and
the World Bank Group (WBG) strategic goals. Directors remarked on the strong growth achieved
by Georgia during 2004-2013, as well as the more recent progress on reducing poverty and
boosting shared prosperity achieved since 2010. Directors welcomed the smooth political
transition in Georgia and the reform program that has been undertaken to date.

        Directors appreciated the CPS’s focus on two principal objectives. The first, strengthening
public service delivery to promote inclusive growth is especially important given the more recent
progress on reducing poverty and boosting shared prosperity. The second, enabling the private
sector to take the lead on job creation, was also considered critical. Directors stressed the need for
employment creation, coordinated support to SMEs, and a program that addresses important
constraints in the legal framework, finance, infrastructure, technology and skills. They recognized
the need for regional integration and transformational projects which would help Georgia become
a regional logistics and transit hub. Directors also encouraged engagements in low-carbon power
generation and low-emissions public transport. They emphasized the importance of efforts to
develop the education and agriculture sectors. Directors urged further progress on addressing
gender inequality in education and employment as well as the challenge of integrating displaced
persons. They looked forward to the integration of gender-disaggregated results measurement in
future projects.

       Directors noted that Georgia is expected to graduate from IDA and encouraged staff to
pursue opportunities to leverage increased financial resources to smooth the transition to IBRD
from IDA. Finally, Directors supported efforts taken on deepening a unified WBG approach and
encouraged staff to continue this coordination internally, as well as with other donors.




*This summary is not an approved record.