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Georgia Country Profile

Frontpage » Country Profiles » Europe & Central Asia » Georgia » Corruption Levels » Land Administration

Land Administration

Individual Corruption

According to Transparency International's Global Corruption Report 2010, approximately nine out of every ten responding households reported that they have not paid a bribe to land services in 2009, indicating that corruption is not a major problem within the land departments for citizens.

Business Corruption

Foreign companies should note that the lack of professionalism of Georgian courts as well as its favouritism of local companies and public officials has created doubts about how well private property will be protected. According to the World Economic Forum Global Competitiveness Report 2011-2012, top management business executives indicate that Georgia performs relatively poorly in relation to other countries concerning property rights.

Political Corruption

According to the World Bank & IFC Doing Business: Reformers' Club Case Studies 2007, prior to 2004, land administration was marred by corruption and incompetent personnel. Under the Saakashvili government, land administration has seen drastic changes. The Law on State Registry was passed in June 2004, resulting in the firing of old management and the closing of old land departments. A new agency with a new mandate was established. To reduce the incentive for accepting bribes, the staff was downsized and given substantially higher salaries. Today, the land registration procedure is simple, inexpensive and uses a central registry.

According to Global Integrity 2008, two government officials were arrested in July 2008, in connection with alleged corruption. Reportedly they had received USD 350,000 from Tamaz Machaladze in order to buy a state-owned property at a very low price next to the Rustavi-Tbilisi Highway. According to the US Department of State 2009, each official later received a five year conditional sentence, while Machaladze received a three year conditional sentence.

Frequency

The World Bank & IFC: Doing Business 2012:
- It takes 1 procedure and 2 days to register property, costs 0.1% of the property value.

World Economic Forum: The Global Competitiveness Report 2011-2012:
- Business executives give the protection of property rights in Georgia, including financial assets, a score of 3.2 on a 7-point scale (1 'very weak' and 7 'very strong').

Transparency International: Global Corruption Barometer 2010:
- 90.6% of the households surveyed reported that they have not paid a bribe to land services in 2009, while the rest preferred not to answer.

EBRD & World Bank: BEEPS Georgia 2008:
- 24% of the companies surveyed identify access to land as a 'major problem' to doing business in Georiga, while 7% identify it as a 'very severe problem'.