Financial Crime World

Georgia Struggles with Financial Inclusion and Crime

A new World Bank project aims to tackle financial inclusion and crime in Georgia, a country that has made significant strides in implementing business environment reforms. The project, funded by the European Union and implemented by the World Bank, will run until 2022.

Challenges Facing Georgia

Georgia has been praised for its first-generation business environment and financial sector reforms over the past decade, according to international ranking surveys. However, second-generation reforms aimed at supporting small and medium-sized enterprises (SMEs) and scaling up local currency finance remain a challenge.

Objectives of the Project

The project aims to strengthen key elements and lay the foundations for enhancing financial inclusion and accountability in Georgia. Specifically, it will:

  • Support the development of capital markets
  • Develop insurance markets and responsible financial inclusion frameworks
  • Promote better corporate governance and reporting
  • Improve market awareness for fixed income products
  • Expand the insurance market through new product introductions
  • Establish a strategic framework for responsible finance

Expected Outcomes

The project is expected to yield several outcomes, including:

  • Modernized capital market legal frameworks
  • Enhanced trading oversight
  • Improved market awareness for fixed income products
  • Increased transparency and accountability in state-owned enterprises

Focus Areas

The project will focus on improving financial infrastructure, accounting frameworks for SMEs, and public accountability of state-owned enterprises. Additionally, it will:

  • Enhance accounting education and quality control measures
  • Develop strategic frameworks for responsible finance
  • Support the development of capital markets and insurance markets

Broader Effort

The World Bank Group’s Country Partnership Strategy for 2018-2020 and the EU’s Single Support Framework (SSF) 2017-2020 for Georgia support this project, which is part of a broader effort to promote financial inclusion and combat crime in the region.