Georgia: Local Economic Development (LED)
In order to address regional disparities in Georgia, this local economic development project will foster effective collaboration between local and national actors, including those from the public, private, and civil society sectors to develop market systems in specific value chains. The project builds on earlier major Swiss engagement to support decentralization, and will stimulate the generation of additional income and job opportunities, while promoting inclusive and sustainable growth in local communities.
| Country/region | Topic | Period | Budget |
|---|---|---|---|
|
Georgia |
Employment & economic development Governance
Rural development
Employment creation Decentralisation |
01.06.2022
- 30.11.2026 |
CHF 3’840’000
|
- Capacities and market linkages of local entrepreneurs are enhanced for improving their competitiveness
- Local entrepreneurs engage in knowledge exchange and consultation mechanisms among LED system actors
- Capacities of local actors (municipalities, private sector, local media, CSOs, academia) are enhanced to promote the economic attractiveness of the targeted localities
- National stakeholders enhance collaboration with local entities
- HELVETAS Swiss Intercooperation
- Other international or foreign NGO North
- Consortium Helvetas / Wins (selected through an open tender procedure)
-
Sector according to the OECD Developement Assistance Commitiee categorisation OTHER MULTISECTOR
OTHER SOCIAL INFRASTRUCTURE AND SERVICES
GOVERNMENT AND CIVIL SOCIETY
Sub-Sector according to the OECD Developement Assistance Commitiee categorisation Rural development
Employment policy and administrative management
Decentralisation and support to subnational government (incl. accountability)
Cross-cutting topics The project supports partner organisation improvements as a priority
Aid Type Mandate with fiduciary funds
Mandate without fiduciary fund
Technical assistance inclusive experts
Project number 7F10923
| Background | Georgia enjoyed a robust post-pandemic economic recovery and vigorous economic growth in 2021-23. It contributed to general poverty reduction, however due to existing regional disparities and income inequalities, rural poverty remains considerably higher. Government tried to address regional disparities through decentralization, regional and sectoral development reforms. But due to the top-down modality of reforms implementation and limited public-private collaboration, rural-urban disparities remain as a critical challenge. It results in increasing labor migration from rural areas. Agriculture, tourism, construction and logistics are identified as potential sectors for local economic development. Application of inclusive, innovative and sustainable practices are key for reducing rural poverty. |
| Objectives | Men and women in targeted municipalities leverage opportunities from inclusive local economic development, improving their income and quality of life. |
| Target groups |
End beneficiaries will be local SMEs, entrepreneurs (women and men) with enhanced capacities and market linkages, also persons with new or better employment. Direct beneficiaries will be the government and non-government meso organizations, business associations, targeted LSGs and the national LED Core Group. Indirect beneficiaries will be large private enterprises, commercial banks with enhanced corporate social responsibilities, as well as universities that foster innovation, entrepreneurship, and community engagement. |
| Medium-term outcomes |
Outcome 1: Local entrepreneurs (women and men) apply innovative business approaches. Outcome 2: Local governments increase the economic attractiveness of the targeted localities. Outcome 3: National stakeholders improve their responsiveness to the needs of entrepreneurs in their localities. |
| Results |
Expected results: Results from previous phases: During Inception Phase comparative advantages were identified in the pilot municipalities through the application of participatory appraisal methods (PACA, LED Café). Priority value chains and municipalities were selected. Collaboration and joint innovative funding mechanisms were tested between the LED Core Group and the local LED actors. |
| Directorate/federal office responsible |
SDC |
| Project partners |
Contract partner International or foreign NGO Swiss Non-profit Organisation |
| Coordination with other projects and actors | Close coordination will be established with SDC financed projects (ALCP2 and Rural SME Development), as well as other projects of economic governance and local development financed by the EU Delegation, USAID, GIZ. |
| Budget | Current phase Swiss budget CHF 3’840’000 Swiss disbursement to date CHF 1’656’401 Total project since first phase Swiss budget CHF 660’000 |
| Project phases | Phase 1 01.06.2022 - 30.11.2026 (Current phase) |
