Advancing Economic Progress Through Open Governance: A

Situational Analysis of Public Administration in Georgia

MAILVINA JIBLADZE, GIGA PHARTENADZE

Department of Law and Public Administration

Batumi Shota Rustaveli State University

Address: Rustaveli/Ninoshvili st. 32/35

GEORGIA

Abstract: The article explores how state functions in public administration are essential for advancing societal

welfare and driving economic progress. Since gaining independence, Georgia has strategically pursued various

pathways to stimulate economic growth, placing a strong emphasis on initiatives designed to enhance

management efficiency and mitigate risks effectively. A pivotal component of Georgia's strategy has been its

active engagement in the "Open Government Partnership," which integrates principles of transparency and

accountability deeply into its governance practices. This study examines how open governance principles, such

as accountability, transparency, and citizen involvement, interact with key economic indicators such as gross

domestic product (GDP), foreign direct investment (FDI), and levels of corruption. Using scientific information

gathered from studying this issue, we apply documentary and comparative analysis methods to present our

findings. The study demonstrates that open governance offers significant potential for economic development

in any country, including Georgia.

Key-Words: - Open Governance, - Georgia, - Economic Growth, - Accountability, - Transparency, - Citizen

Engagement

Received: April 13, 2024. Revised: September 19, 2024. Accepted: November 22, 2024. Published: December 31, 2024.

1 Introduction

The Open Government Partnership (OGP), launched

in 2011 by the presidents of the United States and

Brazil, stands as a collaborative initiative aimed at

enhancing governmental transparency and

accountability globally (OGP, 2011). Originally

comprising eight founding nations, including Brazil,

Indonesia, and the United States, the OGP

encourages participating governments to commit to

greater transparency, citizen engagement in

decision-making processes, and the improvement of

public services. A crucial measure of success within

the OGP framework lies in how effectively member

states fulfill these commitments.

Initially centered on executive authorities, the OGP

expanded its scope in 2014 to include legislative

bodies and, subsequently, in 2016, launched a pilot

program involving local authorities (OGP, 2024).

Georgia, a founding member of the OGP, joined in

September 2011 and has since collaborated closely

with civil society to develop and implement

multiple action plans aimed at enhancing

transparency and citizen engagement in governance

(OGP, 2024).

Effective governance, particularly in economic

matters, plays a pivotal role in a country's

development trajectory. Economic progress hinges

on informed governance decisions that foster

transparency and inclusivity. Open governance

represents a departure from traditional top-down

approaches, advocating instead for collaborative

decision-making between the state and civil society.

This approach not only enhances policy

effectiveness but also promotes community-driven

initiatives that contribute to sustainable economic

growth.

This study delves into the concept of open

governance as a cornerstone of economic

development. It seeks to elucidate how open

governance practices, rooted in transparency,

accountability, and citizen participation, facilitate

economic progress. Key objectives include defining

the principles of open governance, exploring the

impact of transparency and accountability on

investor confidence and economic advancement,

and analyzing the pivotal role of citizen

involvement in shaping state policies, particularly in

economic domains.

2 Literature Review

2.1 The Role of Transparency and

Accountability in Economic Growth and FDI

The relationship between transparency,

accountability, foreign direct investment (FDI), and

economic growth has been a topic of extensive

research. Numerous studies have demonstrated that

transparency and accountability play pivotal roles in

enhancing FDI and fostering economic growth,

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particularly in developing and emerging economies.

Economically, countries with strong accountability

and transparency frameworks are more attractive to

foreign investors. This attraction stems from clear

regulatory frameworks and low levels of corruption,

which instill confidence in investors and foster a

conducive environment for business growth and

economic development.

Collier (2007) emphasizes the importance of

governance reforms, including transparency and

accountability, in fostering economic growth and

improving the lives of the bottom billion people. He

argues that effective governance not only reduces

corruption and inefficiencies but also creates an

environment conducive to investment and economic

development. Similarly, Sundaram (2007) provides

insights into how governance reforms can promote

economic development, enhance accountability in

public institutions, and create an enabling

environment for international trade and investment.

His work underscores the critical role of governance

in shaping economic outcomes and fostering

sustainable development practices.

2.2 Citizen Engagement in Economic Policy

Formation

Citizen engagement in economic policy formation

plays a crucial role in democratic governance,

transcending electoral processes to include ongoing

communication between citizens and governments

(Sen, 1999; Putnam, 1993; Ostrom, 1990; Barber,

1984; Fung & Wright, 2003; Hendriks, 2011).

Amartya Sen's capabilities approach underscores

that policies should enhance individuals' capabilities

to lead fulfilling lives, advocating for participatory

processes that align policies with diverse societal

needs (Sen, 1999). Robert D. Putnam's research in

"Making Democracy Work: Civic Traditions in

Modern Italy" explores how civic engagement and

social capital contribute to effective governance and

economic development, illustrating that societies

with active citizen involvement achieve better

economic outcomes (Putnam, 1993). Elinor Ostrom,

in "Governing the Commons," demonstrates how

citizen participation fosters sustainable resource

management and economic stability through

decentralized decision-making (Ostrom, 1990).

Benjamin Barber's "Strong Democracy:

Participatory Politics for a New Age" advocates for

direct citizen participation in economic policy

formulation, arguing that inclusive decision-making

processes strengthen democratic legitimacy and

governance effectiveness (Barber, 1984). Archon

Fung and Erik Olin Wright, in "Deepening

Democracy: Institutional Innovations in Empowered

Participatory Governance," discuss institutional

mechanisms that empower citizens in democratic

decision-making, including economic policy

formulation (Fung & Wright, 2003). Carolyn M.

Hendriks' research on "The Politics of Public

Deliberation: Citizen Engagement and Interest

Advocacy" explores how public deliberation shapes

economic policies that reflect community

preferences and values, emphasizing the role of

deliberative democracy in enhancing policy

responsiveness and public trust (Hendriks, 2011).

2.3 The Impact of Transparency and

Accountability on Trust for Investment

The trust that develops among people encompasses

all significant aspects of public life, including

current pressing issues like the economy and its key

focus on direct foreign investments. Trust is

influenced by numerous factors, such as political

and economic stability, the effective operation of

state institutions, adherence to the rule of law, a

well-functioning and independent judicial system,

low levels of corruption, and more. In countries

where foreign direct investments are substantial, this

can be attributed to various factors. Generally, it

reflects good governance and adherence to

fundamental principles of the rule of law, such as

accountability and transparency, which in turn

enhance trust.

Global experience across various sectors and

stakeholders shows that open government and open

data positively impact economic growth and job

creation. Utilizing these resources can help achieve

goals like decent work, sustainable economic

growth, and promoting policies that support job

creation and business growth. Transparent economic

policies are crucial for foreign investors for several

reasons. Firstly, a lack of transparency increases

business costs, as companies must navigate the

absence of information that should be provided by

relevant government departments and institutions.

2.4 Combating Corruption Through

Transparency and Accountability

Corruption is another crucial factor that can

undermine foreign direct investment and economic

growth (Freckleton et al., 2012). The interplay

between transparency, accountability, and the

reduction of corruption has been extensively studied

and recognized as crucial for fostering trust,

promoting good governance, and ensuring equitable

socio-economic development (Reichert & Sorek,

2019; Rose-Ackerman, 1999; Transparency

International, 2019). By holding individuals and

institutions accountable for their actions and

decisions, and by fostering transparency in

processes and information dissemination, societies

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can effectively deter corrupt practices and cultivate

environments conducive to integrity and fairness.

Accountability mechanisms, such as robust

reporting systems and clear mandates for public

officials, act as powerful deterrents against corrupt

practices. When individuals know their actions are

subject to scrutiny and potential consequences, the

inclination towards engaging in corrupt activities

diminishes significantly (Open Society Foundations,

2020). Moreover, transparency in decision-making

processes and public access to information play

pivotal roles in building trust between citizens and

government institutions (Transparency International,

2020). When stakeholders can observe and

understand how decisions are made and resources

allocated, they are more likely to perceive

governmental actions as fair and legitimate, thereby

bolstering public confidence and support.

Transparent public procurement processes and

budgetary allocations enhance the efficient

allocation of resources. By minimizing opportunities

for rent-seeking and embezzlement, accountability

measures ensure that resources are distributed based

on merit and public interest rather than personal

gain, ultimately promoting effective resource

management and equitable distribution (Hallerberg

& Scartascini, 2020; World Bank, 2017).

Furthermore, the combination of accountability and

transparency nurtures a culture of ethical behavior

within organizations and institutions (Trevino &

Nelson, 2016; Maesschalck & Dekker, 2017).

Leaders and employees are incentivized to uphold

high standards of conduct and integrity, knowing

that their actions are subject to public scrutiny and

accountability measures.

Transparency also empowers civil society

organizations, media, and watchdog groups to hold

governments and corporations accountable. Access

to information enables these groups to advocate for

policy reforms, expose wrongdoing, and mobilize

public opinion against corruption, thereby

contributing to a more accountable and democratic

society. Many authors (Mungiu-Pippidi, 2015;

Githongo, 2005; Johnston, 2005; Pope, 2000;

Kaplan, 2001) argue that transparency is a

cornerstone of good governance, essential for

combating corruption, promoting accountability,

and fostering economic development across various

sectors and contexts. However, their works also

exhibit differences in focus and emphasis. Mungiu-

Pippidi emphasizes broader societal developments

in controlling corruption and the role of

transparency in fostering good governance across

different countries. Githongo focuses on specific

case studies, such as Kenya, and personal

experiences as a whistleblower, illustrating practical

challenges and outcomes of transparency efforts.

Johnston explores corruption syndromes in relation

to wealth, power, and democracy, examining

systemic issues and the interplay between

transparency, accountability, and governance. Pope

provides a comprehensive guide to transparency

measures and their implementation by civil society

and international organizations like Transparency

International. Kaplan discusses transparency in the

corporate context, particularly within the tech

industry, highlighting implications for business

ethics and corporate governance.

The existing literature underscores the vital

importance of transparency, accountability, and

strong institutions in attracting foreign direct

investment and fostering sustainable economic

growth, particularly in developing and emerging

economies (Omoolorun & Abilogun, 2017; Nam et

al., 2020; Raeskyesa & Suryandaru, 2020;

Freckleton et al., 2012). By prioritizing these key

principles, countries can create an environment that

is attractive to foreign investors, promotes the

creation of new businesses and jobs, and ultimately

drives long-term economic prosperity.

3 Methodology

The existing literature on open governance and its

influence on the economy is extensive and growing,

highlighting the importance of transparency,

accountability, and citizen engagement in fostering

economic growth and attracting FDI. However,

there is a need for more empirical research to

quantify the specific economic impacts of open

governance initiatives.

In the framework of our work, we employed a

mixed-methods approach to conduct our analysis,

combining both qualitative and quantitative methods

to comprehensively evaluate the impact of OGP

commitments on economic performance. Through

the document analysis method, we conducted a

thorough review of Georgia's OGP action plans and

commitments to identify those that had a direct or

indirect influence on economic indicators such as

GDP growth, foreign direct investment (FDI)

inflows, and overall economic development. This

methodology allowed us to demonstrate not only the

tangible economic benefits of implementing

transparency and accountability measures but also to

identify specific commitments that had the most

significant economic impact and provide

recommendations for enhancing the effectiveness of

OGP commitments to maximize their positive

economic effects.

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In the Data Collection phase, we collected data on

key economic indicators, including GDP growth,

FDI inflows, and the Corruption Perceptions Index,

for the last 10 years. Additionally, we gathered

economic data such as employment rates, business

registration statistics, and trade volumes to provide a

more comprehensive view of economic

performance. We also utilized the Qualitative

Analysis method and conducted interviews with key

stakeholders, including government officials and

civil society representatives involved in open

governance in Ajara region, namely in the supreme

council of autonomous republic of Ajara. These

interviews provided deeper insights into the context

and perceived impact of the OGP commitments.

Qualitative data were analyzed to understand the

mechanisms through which these commitments

influence economic performance and to capture

stakeholder perspectives on the effectiveness of the

initiatives.

4 Overview of the Action Plans of

Georgia

4.1 OGP Georgia Action Plan for 2012-

2013

Several completed commitments from Georgia's

2012-2013 OGP action plan hold significant

economic potential. According to the Independent

Reporting Mechanism (IRM) report for this action

plan, a total of 12 commitments were evaluated, out

of which three commitments were completed.

The completed commitments have had varying

impacts on foreign direct investment (FDI), gross

domestic product (GDP), the economy, and

corruption in Georgia. Notably, the commitments

related to "Transparent Party Financing"

(Commitment 3.4), "Homegrown Concept of E-

procurement" (Commitment 4.1), and "Citizens and

Justice" (Commitment 3.3) had transformative

potential impacts and were fully implemented.

Commitment 3.4, "Transparent Party Financing,"

deters corruption by ensuring transparency in

political party funding, thereby increasing investor

confidence and potentially boosting FDI.

Commitment 4.1, the "Homegrown Concept of E-

procurement," improved public procurement

transparency by developing e-portals, which

stakeholders see as a key step in preventing

corruption and enhancing economic stability and

growth through reduced corruption and increased

efficiency in public spending. Although the

"Citizens and Justice" commitment was completed,

it was not considered consistent with the core values

of the Open Government Partnership (OGP), as

stakeholders felt it did not align well with the goals

of transparency.

However, several critical commitments remain

unfulfilled, impacting economic development. For

instance, Commitment 3.1 aimed at launching

Ichange.ge and Data.gov.ge to provide transparent

public information access and online request

capabilities, but these platforms were only partially

completed (Completion Status: Not Started). The

failure stemmed from improper planning, lack of a

defined implementation timeline, insufficient

resources, and a shortage of qualified staff, limiting

public access to crucial government information and

hindering informed decision-making and public

trust in governance processes. If successfully

implemented, these platforms could significantly

enhance transparency and accountability, thereby

improving the business climate and potentially

attracting more foreign direct investment (FDI).

Transparent governance and accessible information

are critical factors that investors consider when

evaluating new markets, as they reduce perceived

risks and increase confidence in the regulatory

environment.

Similarly, Commitment 3.2, the Platform for

Participating in the Legislative Process, faced

implementation limitations despite significant civil

society support, restricting citizen engagement in

law-making processes (Completion Status:

Limited). Enhanced citizen participation in

legislative processes can lead to more inclusive and

responsive policies that support economic growth

and social development. Countries with robust

mechanisms for citizen involvement tend to exhibit

stronger governance frameworks and more stable

economic environments, which are attractive to

investors seeking long-term opportunities.

4.2 OGP Georgia Action Plan for 2014-

2015

In the evaluation of Georgia's 2014-2015 OGP

action plan, 29 commitments were made, with 18

completed, 4 substantially fulfilled, and 7 showing

limited progress. None remained unstarted, and 5

commitments carried over to the subsequent action

plan.

The successful completion of commitments such as

Commitment 1A (implementing travel insurance

services), 1B (implementing state property

registration services), and Commitment 3 (creating

JUSTdrive for PSH services) signifies a significant

step towards enhancing Georgia's economic

landscape. These initiatives streamline public

service delivery, reducing bureaucratic

inefficiencies, and enhancing transparency.

Improved efficiency in property registration

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(Commitment 1B) and service accessibility can

attract Foreign Direct Investment (FDI) by creating

a more favorable business environment. Digital

platforms like JUSTdrive (Commitment 3) and the

Citizen's Portal not only stimulate GDP growth by

boosting productivity but also mitigate corruption

risks through transparent, accountable processes.

Other commitments focus on improving local

service delivery and community engagement, such

as Commitment 6A (Development of Community

Centers in Georgia) and Commitment 7

(Transformation of Public Libraries for Regional

Development). These efforts enhance regional

development and economic growth by providing

better access to information and services, thereby

supporting GDP growth through improved local

governance and service efficiency.

Additionally, commitments like Commitment 11

(Georgia's OGP Forum) enhance civic participation

by improving coordination and consultation

mechanisms with civil society organizations

(CSOs), fostering a more transparent and

accountable governance environment. Initiatives

like Commitment 14 (Public Officials' Asset

Declarations Monitoring System) increase

accountability and transparency in the public

service, reducing corruption and improving the

investment climate.

Commitments aimed at enhancing governance

transparency, such as Commitment 15 (Proactive

Publishing of Surveillance Data) and Commitment

16 (Special Needs Accessibility to Ministry of

Interior's Webpage), improve accessibility to

essential government information, indirectly

supporting economic development by fostering

public trust and engagement. These efforts

contribute to a more informed and active citizenry,

thereby promoting economic stability and growth.

Commitments focusing on transparency in public

procurement (Commitment 20), digital preservation

of documents (Commitment 22), and improving

efficiency and transparency in public finance

management (Commitment 25) create a stable fiscal

environment conducive to economic growth and

investment. Initiatives like Commitment 26

(Develop Alternative Channels to Connect to "112")

and Commitment 27 (Interactive Statistics and

Crime Mapping) improve community safety and

trust, further supporting economic stability and

growth.

The substantial completion of commitments such as

Commitment 6B (Implementation of Electronic

Services for Tourists), Commitment 9 (Open Data

Portal Development), Commitment 14 (Public

Officials' Asset Declarations Monitoring System),

and Commitment 26 (Develop Alternative Channels

to Connect to "112") marks a significant

advancement for Georgia's economic landscape.

Commitment 6B enhances tourism services through

electronic platforms, boosting efficiency and visitor

accessibility. Commitment 9's Open Data Portal

enhances transparency and supports informed

decision-making. Commitment 14 strengthens

accountability in public service, reducing corruption

risks. Commitment 26 improves emergency

response systems, enhancing public safety and

fostering economic stability.

The limited completion of commitments such as

Commitment 4 (Economic Sanctions and Licensing

Monitoring System), Commitment 5 (Economic

Feasibility Studies Database), Commitment 8

(Improving Accessibility of Justice Services),

Commitment 10 (Accessible Information on Natural

Disaster Risk Reduction), Commitment 12

(Transparent and Accountable Implementation of

Education Programs), Commitment 22 (Digital

Preservation System: e-Archive), and Commitment

27 (Interactive Statistics and Crime Mapping)

reflects challenges in enhancing Georgia's

governance and economic landscape. Commitment

4 aims to monitor economic sanctions and licensing,

crucial for regulatory transparency and investor

confidence, but faces implementation hurdles.

Commitment 5's Economic Feasibility Studies

Database could support informed decision-making

in business investments but has seen limited

progress. Commitment 8 seeks to improve justice

service accessibility, vital for legal certainty and

economic activity, yet faces implementation

complexities. Commitment 10's accessibility to

natural disaster risk information is crucial for

resilience and development planning but lacks

sufficient operationalization. Commitment 12 aims

to ensure transparency in education program

implementation but has encountered implementation

challenges. Commitment 22's Digital Preservation

System for e-Archive could enhance historical data

access for governance and research but faces

resource constraints. Commitment 27 aims to

improve crime statistics transparency, crucial for

public safety and policy-making, but has seen

limited operational impact.

In conclusion, Georgia's second OGP action plan

has played a crucial role in promoting economic

development through strengthened governance and

transparency efforts. The successful completion of

several commitments has streamlined public

services, enhanced transparency, and attracted

foreign investment, contributing positively to

economic growth. However, challenges remain

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evident with commitments that have shown limited

progress, particularly in areas such as economic

sanctions monitoring, justice service accessibility,

and digital preservation.

4.3 OGP Georgia Action Plan for 2016-

2017

Georgia's OGP Action Plan includes a range of

completed commitments aimed at enhancing

governance transparency and citizen engagement.

Commitment 1 focused on adapting the Tbilisi

Public Service Hall (PSH) for the visually impaired,

successfully improving accessibility and setting a

precedent for further branch adaptations.

Commitment 11 saw the launch of

budgetmonitor.ge by the State Audit Office (SAO),

significantly increasing access to financial

information and citizen participation in audit

processes. Commitment 13 involved the publication

of disaggregated phone-tap data by the Supreme

Court, promoting transparency despite limited

public use due to security concerns. Commitment 14

established local crime prevention councils by the

Prosecutor’s Office, enhancing local engagement

and coordination on crime prevention, albeit with

limited public awareness. Commitment 18 involved

the adoption of a Transparency and Integrity

Strategy by the Ministry of Regional Development

and Infrastructure (MRDI), setting sectoral anti-

corruption standards with moderate coverage on

procurement transparency. Commitment 21

introduced electronic submission of enterprise

reports by the Georgian National Energy and Water

Supply Regulatory Commission (GNERC),

streamlining data accessibility and systematization.

These efforts collectively highlight Georgia's

commitment to advancing OGP values through

targeted reforms in governance and public service

delivery.

4.4 OGP Georgia Action Plan for 2018-

2020

In Georgia's Action Plan for 2018-2019 under the

Open Government Partnership (OGP), the

commitments were structured around several core

priorities aimed at transforming governance and

enhancing public service delivery. The plan

emphasized leveraging technology and transparency

to improve accountability and citizen engagement

across different facets of government operations.

In the action plan, most commitments faced

limitations or were not completed within the

designated timeframe. Only a few commitments

(commitment 1: Improve Public Services for All;

commitment 7: Public Monitoring of Sustainable

Development Goals (SDGs); commitment 8:

Develop Legislative Acts Based on Citizen

Engagement and Data Analysis; commitment 9:

Publish court decisions in a unified database and

create a retrieval system; commitment 17: Improve

the open data collection and publishing process in

Akhaltsikhe and Kutaisi municipalities;

commitment 19: Introduce institutionalized

participatory budgeting in Batumi City;

commitment 23: System to assess services and

citizens’ satisfaction in Ozurgeti Municipality) saw

substantial or complete implementation,

highlighting challenges related to technical,

financial, and procedural aspects.

Firstly, a significant focus was placed on enhancing

public services through innovative platforms and

electronic systems. This included initiatives like

developing a citizen engagement platform to foster

interaction between citizens and government, and

introducing electronic services to streamline access

to state services. These efforts were geared towards

making public services more efficient, accessible,

and responsive to citizen needs.

Secondly, strengthening integrity in the public

sector was a pivotal objective. Commitments under

this theme aimed at bolstering anti-corruption

measures and improving transparency. This

involved implementing mechanisms to monitor

progress towards Sustainable Development Goals

(SDGs), developing legislative acts based on data

analysis and citizen input, and enhancing

transparency in the operations of state-owned

enterprises. These initiatives sought to build trust in

government institutions and ensure accountability in

governance processes.

Thirdly, efforts were directed towards improving the

management of public resources. Commitments

focused on increasing citizen participation in

overseeing public finances, particularly through

tools like the Budget Monitor platform.

Additionally, there were initiatives to enhance

transparency and efficiency in public procurement

processes through the adoption of electronic

innovations and adherence to international

standards.

Furthermore, the Action Plan aimed at promoting

corporate responsibility by establishing unified

standards for managing state-owned enterprises and

enhancing transparency in their operations. These

measures were intended to ensure that these entities

operated with integrity and efficiency, aligned with

international best practices.

Lastly, the commitment to create a safe environment

was underscored by initiatives such as the proactive

publication of statistical data and inspection results

by the Ministry of Internal Affairs. Additionally, an

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electronic platform was developed to facilitate

compliance with environmental assessment

requirements, enhancing public participation and

transparency in decision-making processes related

to environmental issues.

Overall, Georgia's Action Plan for 2018-2019 under

the OGP articulated a comprehensive strategy to

advance e-governance, transparency, and citizen

engagement. It aimed not only to modernize public

service delivery but also to strengthen democratic

processes and promote sustainable development

through accountable and transparent governance

practices.

From 2012 to 2019, the commitments undertaken in

the four action plans demonstrate continuous

progress in enhancing the transparency of state

agencies, improving public services, managing

resources, and ensuring security. Each action plan

builds on the efforts and achievements of the

previous ones, creating a cumulative positive impact

on the activities of state agencies. For instance, the

establishment of the House of Justice in the 2012-

2013 action plan laid the groundwork for digital

governance improvements. This foundation allowed

for the introduction of e-petition systems and e-

procurement platforms in the 2014-2015 action

plan, which evolved into more sophisticated public

engagement platforms and anti-corruption measures

in the 2018-2019 action plan. This methodical and

strategic approach underscores a deliberate and

thoughtful approach to governance.

5 Promoting transparency,

Accountability and Citizen

participation in economic development

in Georgia

The Government of Georgia acknowledges the

pivotal role of information and communication

technologies (ICT) and electronic services in

modern governance, as demonstrated through the

implementation of 24 commitments outlined in the

second action plan for 2014-2015. These

commitments primarily focus on two key priorities:

establishing an electronic government system and

enhancing the strategy for managing public

finances. Platforms such as the electronic state

treasury management system (eTreasury), electronic

budget planning system (eBudget), state debt and

investment project management system (eDMS),

and electronic auction system (eAuction) were

developed as part of these initiatives. A robust

public finance system, supported by stable and

predictable regulatory frameworks, enhances

investor confidence, making it more attractive for

investment.

The positive impact of these commitments on

investment inflows is evidenced by the significant

increase in foreign direct investments (FDI) during

the action plan period.

The steady increase in investment inflows is

facilitated by the implementation of commitments

outlined in the subsequent third action plan for

2016-2017. These commitments include

Commitment 14, aimed at enhancing citizen

participation in public finance oversight (public

audit), and Commitment 15, focusing on electronic

innovations to enhance transparency and efficiency

in public procurement. The former seeks to bolster

transparency and accountability in public

administration by involving citizens in the public

audit process, thereby promoting efficient and

economical allocation of budgetary resources. The

latter commitment introduces greater flexibility in

the state procurement process for consumers,

purchasing organizations, and business sector

representatives. Specifically, it consolidates tender-

related information into a single platform and

provides access to annual state procurement plans.

Consequently, by improving transparency, fostering

competition, and expanding business opportunities,

these commitments indirectly contribute to

attracting foreign investment and stimulating

economic growth.

Diagram 1: Foreignd direct investments 2011-2023

Source: National Statistical Service of Georgia

It's also important to note that Commitment 14

includes mechanisms to more effectively identify

and address corruption cases. Specifically, citizen

engagement in monitoring public finances makes it

harder to overlook corrupt practices, ultimately

contributing to a reduction in corruption.

Statistics indicate that during the fulfillment period

of this commitment, Georgia significantly improved

its standing in combating corruption. According to

the Corruption Perception Index, where 100 points

indicate the lowest and 0 points the highest

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corruption levels, Georgia improved its score by 5

points and moved up 4 places in 2016.

In terms of commitments aimed at reducing

corruption, it is noteworthy to mention Commitment

9: Implementation of a system for monitoring the

property status declarations of officials. This

commitment directly targets the prevention of

corrupt practices by enhancing transparency and

holding public officials accountable for their assets.

Diagram 2: Corruption Perception Index - Results of

Georgia 2012-2023

Source: International Tranparency (10)

Over the last decade, the trend indicates a decline in

Georgia's Corruption Perception Index (CPI). In

2023, Georgia's score worsened by 3 points

compared to previous years, totaling 53 points.

Consequently, it now ranks 49th among 180

countries, down from its previous position at 41st.

The decline in scores post-2020, or stagnation,

partly stems from the absence of an action plan. The

fourth action plan for 2018-2019, which had its

implementation extended until 2020, cannot be

attributed to the global coronavirus pandemic. This

is because the action plan was originally scheduled

to conclude by December 2019, and the first case of

COVID-19 in Georgia was recorded in March 2020.

From the diagram, it is evident that Georgia

obtained higher corruption perception scores in

2016 and 2018 than in the subsequent years. This

discrepancy suggests that the fourth action plan

(2018-2020) may have lacked specific commitments

aimed at systematically addressing and preventing

corruption.

Consequently, disregarding principles of open

government across various domains will likely have

a detrimental impact on the country's rating in this

area.

Georgia's positive reputation can also be attributed

to specific commitments within the third 2016-2017

Action Plan, which include:

Commitment 3: Implementing an e-licensing system

for natural resources to enhance transparency in

resource management. This initiative is crucial for

attracting foreign investment, particularly in

industries such as mining and energy, by providing

clear regulations and streamlined processes for

licensing.

Commitment 4: Establishing a spatial data web

portal for the energy sector. This platform facilitates

easier access to comprehensive information about

energy infrastructure, thereby increasing investor

confidence in the sector's stability and potential for

growth.

Commitment 5: Creating an innovation ecosystem

through infrastructure development, training

programs, and improved technology access in

regional areas. This commitment aims to attract

foreign investors interested in supporting or

participating in innovative and technology-driven

enterprises.

Commitment 19: Developing a guide for economic

agents to navigate and comply with competition

laws more effectively. This initiative enhances

transparency and predictability in Georgia's business

environment, which is essential for foreign investors

assessing market opportunities and competition

dynamics.

Commitment 20: Implementing a commercial

service quality control program led by the National

Energy and Water Regulatory Commission of

Georgia. This program focuses on improving

service standards and transparency in utility sectors,

crucial factors for attracting foreign investment in

utilities and related industries.

Commitment 21: Introducing an electronic reporting

platform for companies regulated by Georgia's

National Energy and Water Regulatory

Commission. This platform enhances transparency

and accessibility of information within regulated

industries, thereby increasing investor confidence in

regulatory compliance and operational transparency.

As depicted in the diagram, during the period of

2018-2019, Georgia's score increased while its

ranking position decreased. The failure to sustain

these improvements can be attributed, in part, to the

focus of the existing action plan on enhancing

obligations from the 2016-2017 period. Specifically:

Commitment 4: The Ministry of Economy and

Sustainable Development of Georgia committed to

creating an interactive platform for economic

governance. This platform aimed to maximize

public and private sector involvement in economic

policy development, enhance decision-making

effectiveness, increase process transparency, and

improve business environment predictability. This

Place 51 55 51 48 44 46 53 44 45 45 41 49

Point 52 49 52 52 57 56 58 56 56 55 56 53

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commitment significantly bolstered the potential for

enhancing Georgia's Corruption Perception Index

(CPI) score by enabling the private sector to provide

pertinent information crucial for fostering a

favorable business environment.

Commitment 11: This commitment aimed at

increasing citizen participation in public finance

oversight. It transformed the innovative analytical

web platform "budget monitoring" into an

interactive platform where audit results were

presented in easily understandable formats for

public scrutiny, aligning with the principles of

transparency and accountability.

Commitment 13: Focused on e-innovations to

enhance transparency in public procurement, this

initiative involved the Public Procurement Agency,

supported by the World Bank, the Department for

International Development, and the Open Data

Partnership. Together, they aimed to implement the

Open Contracting Data Standard (OCDS), ensuring

the publication of open and structured data at all

stages of the procurement process—from planning

to execution. This commitment aimed to increase

transparency, thereby contributing to efforts to

combat corruption.

These commitments underscore Georgia's efforts to

improve governance transparency, enhance public

participation in oversight processes, and ensure

openness in procurement practices. However,

sustaining and building upon these initiatives is

crucial for Georgia to continue progressing in

transparency and governance effectiveness,

ultimately enhancing its global ranking in corruption

perception indices.

It is also noteworthy to mention the 2024-2025

action plan for the current year, which notably

reduces the number of commitments compared to

previous action plans. There could be several

reasons for this reduction. The key commitments

outlined in the current plan which effects on

economy are as follows:

Commitment 1 focuses on enhancing the current

standard for requesting and proactively publishing

public information in electronic form. The

commitment primarily emphasizes the active

publication of information while also prioritizing the

training and qualification enhancement of

responsible personnel. This training aims to

facilitate effective communication with the public,

ensuring increased accessibility to public

information across critical domains such as energy

projects, mineral extraction, government decisions,

and court rulings.

Commitment 4 aims to ensure transparency and

inclusion within Georgia's extractive industries

sector. This commitment underscores the

significance of various mineral resources in driving

the country's economic growth. By adhering to the

principles of the Extractive Industries Transparency

Initiative (EITI), Georgia enhances mechanisms for

accountability and transparency. Furthermore, it

facilitates the examination of the economic impact

of natural resource extraction both nationally and

locally.

Our hypothesis gains further support from the

positive correlation observed between GDP and

economic growth indicators and open governance.

Specifically, in the first action plan (2012-2013),

where commitments were largely partially fulfilled,

there was a noticeable decline in GDP. Conversely,

commitments initiated in the first action plan and

carried forward into the second action plan (2014-

2015) contributed to an improvement in this

indicator. Subsequently, GDP continued to rise in

2017, which can also be attributed to the fulfillment

of these obligations. The significant GDP decrease

in 2020, besides the pandemic impact, can also be

attributed to the absence of comprehensive action

plans during that period.

Diagram 3: GDP and economic growth - in Georgia

2012-2023

Diagram 4: Number of newly registered business entities

(in thousands) and Level of employment (in percentage)

in Georgia 2012-2013

-2,00%

0,00%

2,00%

4,00%

6,00%

8,00%

10,00%

12,00%

10.000

20.000

30.000

40.000

50.000

60.000

70.000

80.000

90.000

GDP

Economy Growth

0,0

20,0

40,0

60,0

80,0

100,0

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Finally, our study of the action plans reveals that

commitments implemented during 2016-2017 have

created an optimal environment for attracting

investments and reducing corruption. These

commitments align closely with our hypothesis that

principles of open government significantly

influence a country's economic and political

landscape. In contrast, subsequent action plans, such

as the 2017-2018 plan, showed some improvement

in fulfilling obligations from the previous plan,

leading to a slight increase in ratings. However, the

current action plan lacks innovative measures that

could introduce new opportunities to further reduce

state corruption, enhance transparency, and drive

additional economic progress.

6 Enhancing Governance Through

Open Government Partnership:

Insights from Georgia

In our research, we determined the number of

interviews needed to ensure data saturation,

targeting 25-35 interviews across key stakeholder

groups. This included 8-10 interviews with

government officials, 6-8 with civil society

organization representatives, 4-6 with experts in

transparency and economic development, 4-6 with

private sector representatives, and 3-5 with citizens

and beneficiaries. This distribution allowed us to

capture diverse perspectives while maintaining

flexibility based on emerging insights.

The survey for government officials gathered

insights into their roles in implementing OGP

commitments, the impact on their departments,

citizen engagement, implementation challenges,

successes, and the influence on employment. Civil

Society Organization Representatives were asked

about their contributions to the OGP process,

impacts on monitoring and advocacy, challenges

faced, collaboration with the government, and

suggested improvements.

Private Sector Representatives were questioned

about their interactions with OGP initiatives, the

benefits and challenges experienced, perceptions of

OGP’s impact on the investment climate, and

suggestions for enhancing private sector

engagement. Citizens and Beneficiaries were asked

if they had personally benefited from OGP

initiatives, their ratings of government transparency

and decision-making, and their perceptions of

government accountability.

Government officials found that OGP commitments

improved departmental processes, resource

management, and transparency. Initiatives like e-

procurement reduced corruption and boosted public

trust. Platforms like budgetmonitor.ge allowed

citizen engagement with financial data, though

broader awareness is needed. Challenges included

limited resources, technical expertise, and resistance

to change. Successes included the eTreasury system,

which increased efficiency. Views on employment

impact were mixed, with some noting better job

opportunities and others pointing to job losses due

to automation.

CSOs emphasized their role in advocacy,

monitoring, and feedback on OGP commitments.

They facilitated citizen-government dialogues and

increased public awareness. They ensured

accountability by monitoring government actions

and advocating for transparency. Challenges

included limited information access, government

pushback, and funding issues. Collaboration varied,

with some positive partnerships and others

struggling with communication. Recommendations

included better access to data, increased funding,

and improved collaboration with the government.

Private sector representatives saw improved

business environments from transparent

procurement and reduced corruption. Benefits

included increased trust and more predictable

business conditions. Challenges involved navigating

new systems and bureaucratic hurdles. The

investment climate improved with more

transparency attracting investors. Recommendations

included simplifying procedures, involving the

private sector in policy discussions, and ensuring

transparency in business-related government

activities.

Citizens and beneficiaries reported mixed

experiences with OGP initiatives. Some noted

personal benefits, such as improved access to public

services and increased government transparency.

Ratings of government transparency and decision-

making were generally positive, though there were

calls for greater accountability. Challenges included

limited awareness of OGP initiatives and the need

for more effective communication from the

government. Overall, citizens felt that while

progress had been made, there was still room for

improvement in how the government engages with

and serves the public.

In sum, our findings underscore the importance of

OGP initiatives in enhancing governance

transparency, fostering citizen engagement, and

improving the business climate in Georgia. Moving

forward, addressing identified challenges and

implementing stakeholder-recommended

improvements will be crucial to sustaining these

gains and fostering inclusive economic growth and

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development through transparent and accountable

governance practices.

7 Conclusion

The paper explores how citizens' age influences

their role in policy formation. It examines Georgia's

Open Government Partnership (OGP) Action Plans,

highlighting key commitments, particularly in

combating corruption. The impact of these

initiatives on enhancing foreign investor confidence

and the broader economic benefits of improved

information processing are discussed. The paper

provides evidence that these efforts were

particularly effective in 2016-2017, contributing to a

significant reduction in corruption levels and an

increase in foreign direct investments.

It also was found that the commitments carried out

in the 2016-2017 action plans fostered a favorable

environment for attracting investments and reducing

corruption. This aligns with the hypothesis that open

government principles significantly influence the

country's economic and political landscape.

Going forward, it is crucial for Georgia to keep

prioritizing initiatives that boost transparency,

accountability, and citizen participation to

encourage sustainable economic growth and

reinforce democratic governance.

There are numerous recommendations to help

Georgia achieve economic progress, but the

following types should be systematically

implemented:

It is crucial to understand the role of citizens, as

they are the primary stakeholders of the

recommendations. Citizens are the main source of

government legitimacy. Without a clear

understanding of their responsibilities to the

country, principles like transparency and

accountability cannot be upheld. As public

awareness increases, citizens will be better

informed, giving them the leverage to influence

decisions that are more tailored to their needs. This

increased involvement in policy formation will

positively impact the daily lives of all citizens.

The state needs to conduct thorough research—this

recommendation primarily involves examining the

practices of open government member states and

analyzing the commitments outlined in their action

plans, which have economically strengthened those

countries.

Attention should be directed towards supporting

state-led initiatives. It's crucial that state

management reflects the interests of society. The

state needs to provide more backing for initiatives

that enhance citizen involvement, transparency, and

accountability, turning these into routine and

widespread practices. This will also lead to more

open processes.

The use of technologies is recommended to make

information more easily accessible, particularly for

those who are interested. The government should

present information in a straightforward and

understandable language for all parties, utilizing

various technologies. Additionally, information

should be actively updated.

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Volume 4, 2024

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Malvina Jibladze focused on the document analysis

and qualitative research, particularly reviewing

Georgia’s OGP commitments to identify those with

a direct influence on economic indicators such as

GDP growth and FDI inflows. Her work included

interviewing key stakeholders, such as government

officials and civil society representatives in the

Ajara region, to gain insights into the effectiveness

of OGP initiatives.

Giga Phartenadze took the lead in the quantitative

analysis, collecting and analyzing key economic

data, including GDP growth rates, employment

statistics, and FDI trends over the past decade.

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Volume 4, 2024

Contribution of Individual Authors to the

Creation of a Scientific Article (Ghostwriting

Policy)

Sources of Funding for Research Presented in a

Scientific Article or Scientific Article Itself

No funding was received for conducting this study.

Conflict of Interest

The authors have no conflicts of interest to declare

that are relevant to the content of this article.

Creative Commons Attribution License 4.0

(Attribution 4.0 International, CC BY 4.0)

This article is published under the terms of the

Creative Commons Attribution License 4.0

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