The collapse of the Soviet Union was followed by several waves of privatization in Georgia; however the number of SOEs, even after years, remained high. The activities of state-owned companies are not transparent, which increases the risks of corruption and misappropriation of the state property. The information regarding the staff and salaries/bonuses is unavailable, as well as the obtaining the business-plans of these companies and the assessment of plan fulfillment is not easily possible. Finally, the effectiveness of their activities directly reflects on the budget and therefore is the burden to the taxpayers, which increases the requirement of these companies’ accountability to the public.
The paper discusses the state-owned enterprises in Georgia and their efficiency in terms of development.