Abstract: One of the best examples, in evolution of the public
procurement, from post-soviet countries are reforms carried out in
Georgia, which brought them close to international standards of
procurement. In Georgia, public procurement legislation started
functioning short after gaining independence. The reform has passed
several stages and came in the form as it is today. It should also be
noted, that countries with economy in transition, including Georgia,
implemented all the reforms in public procurement based on
recommendations and support of World Bank, the United Nations
and other international organizations.
The aim of first adopted law was regulation of the procurement
process of budget-organizations, transparency and creation of
competitive environment for private companies to access state funds
legally. The priorities were identified quite clearly in the wording of
the law, but operation/function of this law could not be reached on its
level, because of some objective and subjective reasons. The high
level of corruption in all levels of governance can be considered as a
main obstacle reason and of course, it is natural, that it had direct
impact on the procurement process, as well as on transparency and
rational use of state funds. These circumstances were the reasons that
reforms in this sphere continued, to improve procurement process, in
particular, the first wave of reforms began after several years. Public
procurement agency carried out reform with World Bank with main
purpose of smartening the procurement legislation and its
harmonization with international treaties and agreements. Also with
the support of World Bank various activities were carried out to raise
awareness of participants involved in procurement system.
Further major changes in the legislation were filed bit later, which
was also directed towards the improvement and smarten of the
procurement process. The third wave of the reform more or less
guaranteed the transparency of the procurement process, which later
became the basis for the rational spending of state funds. The reform
of the procurement system completely changed the procedures.
Carried out reform in Georgia resulted in introducing new
electronic tendering system, which benefit the transparency of the
process, after this became the basis for the further development of a
competitive environment, which become a prerequisite for the state
rational spending. Increased number of supplier organizations
participating in the procurement process resulted in reduction of the
estimated cost and the actual cost.
Assessment of the reforms in Georgia in the field of public
procurement can be concluded, that proper regulation of the sector
and relevant policy may proceed to rational and transparent spending
of the budget from country’s state institutions. Also, the business
sector has the opportunity to work in competitive market conditions
and to make a preliminary analysis, which is a prerequisite for future
strategy and development.