Financial Inclusion and Crime on the Rise in Georgia, Experts Warn

Georgia’s pursuit of economic growth is being hindered by its high crime rate and lack of financial inclusion. According to experts, these two issues are interconnected, with financial exclusion leaving many Georgians vulnerable to criminal activity.

The Consequences of Financial Exclusion

Despite efforts by the government to promote financial inclusion, a significant portion of the population remains outside the formal banking system. This has created an environment in which illegal activities can thrive. Criminals exploit those who lack access to legitimate financial services, taking advantage of their vulnerability.

A Breeding Ground for Crime

“The lack of financial inclusion is a breeding ground for crime,” said Tamar Kobakhidze, a leading expert on the issue. “When people are forced to rely on informal networks and unregulated markets, they become more susceptible to exploitation by criminal organizations.”

The Georgian Context

Georgia’s location at the crossroads of Europe and Asia makes it an attractive hub for organized crime groups. This increases the urgency for addressing both financial inclusion and crime.

A Comprehensive Approach Required

“The authorities need to take a proactive approach to addressing both financial inclusion and crime,” Kobakhidze emphasized. “This requires a comprehensive strategy that involves not only improving access to financial services but also strengthening law enforcement and judicial institutions.”

Government Efforts and the Road Ahead

The Georgian government has begun to take steps in the right direction, introducing reforms aimed at promoting financial sector diversification and deepening. However, experts warn that more needs to be done to address the root causes of financial exclusion and to combat the growing crime problem.

Collaboration is Key

“The ongoing dialogue between authorities, civil society, and international organizations is crucial in this regard,” Kobakhidze said. “We need to work together to design and implement reforms that will foster a more inclusive and stable financial sector.”