Civil Society: An Overview

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1 CIVIL SOCIETY BRIEFS Georgi Country nd Government Context Georgi is locted in the South Cucsus, mountinous region frmed by the Blck Se nd Cspin Se to the west nd est; by the Russin Federtion to the north; nd by Armeni, Azerbijn, nd Turkey to the south. In 1991, Georgi declred independence, nd in lte 2003, peceful revolution brought President Mikheil Skshvili to power. Georgi s politicl system is semi-presidentil nd highly centrlized. Georgi hs smll open economy, is strtegiclly locted t the crossrods of Europe nd Asi, nd is n importnt node for regionl trde flows. After independence, the country enjoyed double-digit economic growth nd lrge inflows of foreign direct investments thnks to the competitive business environment nd low levels of corruption. However, economic gins of recent yers hve not been enjoyed evenly cross the socil spectrum. In 2009, the incidence of poverty ws 24% mong rurl households nd 17% mong urbn households, compred to 2004 levels of 23% nd 26%, respectively. Georgi hs long trdition s multiethnic stte. The predominnt lnguge is Georgin, but number of other lnguges nd dilects re spoken cross the country. A lck of strong Georgin lnguge skills mong some of the minority ethnic communities in the regions wekens their prticiption in governnce. b The country s popultion, estimted t 4.3 million, hs declined by 1 million (since the lst Soviet census in 1989) due to combintion of externl migrtion, decresing birth rtes, nd child mortlity, lthough the trends of the ltter two hve been slowly reversing since bout c GeoStt. Poverty Indictors by Urbn nd Rurl Ares. Avilble online t =pge&p_id=188&lng=eng b For more informtion on this problem, see csus.org/uplod/publictions/working_pper_46_en.pdf c T. Topuri Reversing Popultion Decline in Georgi. Institute for Wr nd Pece Reporting. 18 Februry. Avilble online t Civil Society: An Overview The roots of Georgi s modern civil society trce bck to the yers following independence in 1991, when hndful of informl, grssroots entities then collectively termed public orgniztions begn to emerge. Some of these, such s the Cucsus Institute for Pece, Democrcy nd Development nd the Civil Society Institute, re leding members of Georgin civil society tody. These informl institutions begn to tke on distinct shpe nd chrcter with the entrnce of western id, especilly vi foundtions, such s the Open Society Georgi Foundtion, Friedrich-Ebert-Stiftung, nd Eursi Foundtion, ll of which begn operting in the country round They brought expertise nd finncil resources nd contributed to mushrooming period 1 for civil society tht witnessed the formliztion of mny orgniztions s they sought legl registrtion, opened bnk ccounts, nd received their first grnts. The influence nd strength of civil society orgniztions (CSOs) ws consolidted in the yers prior to For the first time collectively referred to s nongovernment orgniztions (NGOs), they successfully fought for vrious issues rnging from environmentl protection to humn rights nd txtion. They lso plyed key role in the peceful events of the 2003 Rose Revolution. The high number of NGO leders tht moved into the new government seven out of 11 new ministers cme from the NGO sector is evidence of their influence during the prerevolution period. Civil society entered new stge of development fter 2003, suffering the dul blows of drin of experienced stff into government positions nd simultneous shifting of donor priorities nd funding, s the ltter sought to support the new, reform-minded stte. Wtchdog nd dvoccy NGOs, in prticulr, suffered during this time. Tody, civil society fces yet new period of development. Donors hve recognized the gp left by their post-revolution shift nd some, such s the United Sttes Agency for Interntionl Development, re refocusing substntil finncing

2 Most of the country s strongest NGOs re bsed in the cpitl, nd only hndful of NGOs hve estblished networks of brnch offices in other mjor cities...the number of donor-supported progrms in Tbilisi is 2.5 times higher thn those supported in ll the regions combined. on dvoccy nd wtchdog orgniztions. Think tnks, nother type of CSO, hve built strong expertise nd influence in the res of security nd geopolitics, but they lck strong voice on mtters of economic development. The sector hs not fully recovered from the brin drin of While pproximtely 10,000 NGOs re registered in the country, most of them re not ctive. 2 NGOs my lso pply for chrity sttus, enbling them to ccept tx-deductible dontions. There re only 62 orgniztions in the online chrity registry of the Ministry of Finnce. Most of the country s strongest NGOs re bsed in the cpitl, nd only hndful of NGOs hve estblished networks of brnch offices in other mjor cities. These NGOs include the Georgin Young Lwyers Assocition nd Chrity Humnitrin Center Abkhzeti. Yet the number of CSOs tht effectively operte outside of the cpitl city is still limited, 3 nd the number of AFP ImgeForum

3 AFP ImgeForum donor-supported progrms in Tbilisi is 2.5 times higher thn those supported in ll the regions combined. 4 The orgniztionl cpcity of CSOs in Georgi remins problemtic. Most NGOs operting outside of the cpitl do not hve the humn nd finncil resources necessry to improve opertionl effectiveness. A number of NGOs benefited from the $4.5 billion pledged by donors to Georgi fter the 2008 wr with the Russin Federtion, but with focus on internlly displced persons nd the Gori region (neighboring South Osseti), the funding did not enble NGOs to focus on their primry missions in other fields. 5 NGO finncing is one of the biggest obstcles to the sector s independence nd sustinbility. It is no coincidence tht the mjor trends in NGO development described erlier correspond to trends in donor finncing. A 2010 study noted tht 95% of the finncing tht CSOs receive in Georgi comes from foreign donors, 6 lthough nother study in the sme yer documented more diversity of finncing sources, with 25% of funding rised through domestic sources, such s membership fees, individul nd business dontions, contrcts from the stte, nd entrepreneuril ctivities. The number of incomegenerting inititives lso grew from 2005 to 2010 compred with the previous 5 yers. 7 Chritble nd philnthropic contributions from individuls nd businesses typiclly go stright to beneficiries or to the Georgin Orthodox Church, while no CSOs in Georgi re ble to rise meningful sums from membership bse or constituency. A 2010 study of 287 CSOs nd community-bsed orgniztions in Georgi showed tht the level of institutionl development in the most developed ctegory of CSOs incresed substntilly compred to Other recent studies hve noted tht CSOs hve firly strong humn resources, despite the brin drin mentioned erlier; tht they hve strong linkges cross orgniztions both within their sector nd outside it ( type of bridging socil cpitl tht is seen to hve the most importnt benefits for development, s compred to the nrrow bonding cross like-minded individuls

4 AFP ImgeForum A 2010 study of 287 CSOs nd community-bsed orgniztions in Georgi showed tht the level of institutionl development in the most developed ctegory of CSOs incresed substntilly compred to nd orgniztions); nd tht they re chrcterized by strong sense of socil responsibility. 9 Some interntionl compnies operting in Georgi, such s BP, hve mde contributions to NGOs, mostly in res specific to their opertions nd in line with commitments mde through interntionl lending fcilities (e.g., environmentl inititives), but this is the exception more thn the rule. Trust mong businesses in the NGO sector is low, perhps due to combintion of the polrized stte of civil society, lck of knowledge bout the sector, nd tx frmework tht does little to stimulte corporte dontions. 10

5 Umbrell nd Coordinting Bodies There re lmost no nongovernment orgniztion (NGO) directories, umbrell orgniztions, or self-regulting bodies of civil society in Georgi. A Code of Conduct ws signed by 30 NGOs in 2004, but it hs not been mintined; nd copy of this document or ny reference to it mong NGO publictions is nowhere to be found. One recent effort my chnge this sitution: in November 2010, the Europen Union lunched the Estern Prtnership Civil Society Pltform. Chired by the Georgin Young Lwyers Assocition nd consisting of nerly 100 ntionl NGOs, the Pltform ims to promote the development of civil society orgniztions (CSOs), coopertion mong them, [nd] their dilogue with public uthorities. b E. Urushdze. Forthcoming Spring Georgi Ntionl Integrity System Assessment. Trnsprency Interntionl Georgi. b Europen Union Delegtion to Georgi. Concept Note of the Georgin Ntionl Pltform. Avilble online t georgi/civil_society/news_events/georgin_civil_society_pltform _estblished_en.htm, documents/civil_society_librry/np_concept.doc Weknesses in Georgi s civil society cn be trced, in prt, to the reltively short period in which the sector hs been ctive nd to the stte of socioeconomic reltions estblished under Soviet rule. In fct, the Soviet stte itself took the led in orgnizing socil experiences outside of privte life through compulsory prticiption in vrious youth, professionl, nd other groups. Spontneous, grssroots citizen inititives were discourged nd seen s thret to the stte s control over society. This did not wholly prevent the formtion of civil society, but it explins why it is consistently wek in post-soviet contexts. Despite strong politicl wreness demonstrted through reltively high voter turnout rtes nd frequent peceful protests, 11 civic prticiption in Georgi is not prticulrly high. Distrust in forml institutions (including NGOs) is widespred, nd the strong role of socil networks bsed on fmily ties, rther thn perceived shred vlues cross groups, is persistent. 12 In 2007 survey, 96% of Georgins sid they hd not been to meeting of club or civic orgniztion in the lst 6 months, nd 92% hd not engged in volunteer work over AFP ImgeForum

6 AFP ImgeForum the sme period. Ninety percent hd not mde ny chritble contributions. 13 CSOs themselves cite lck of public interest in their ctivities s one of their most cute problems. The decrese in NGO revenues from membership fees in the period (from 30% to 13%) my be n indictor of this lck of support bse. 14 But there re positive signs s well. According to one ssessment, Georgi s customs, multi-ethnic citizenry, diverse sub-ethnic cultures, trdition of high eductionl chievement, the trditionl optimism of the popultion nd the cpcity of its people to dpt to new relity increse the chnces for success. 15 In November 2010, the Europen Union lunched the Estern Prtnership Civil Society Pltform chired by the Georgin Young Lwyers Assocition nd consisting of nerly 100 ntionl NGOs.

7 The Legl Frmework for Civil Society The Georgin Civil Code llows for only two types of legl entities: commercil nd noncommercil. Nongovernment orgniztions (NGOs) fll into the ltter ctegory. The Civil Code lso llows for the opertion of unregistered civil society orgniztions. b NGO registrtion is simple nd inexpensive. The registrtion fee is GEL100 ($57) nd, under the lw, registrtion should be completed within 1 dy. c In 2010, registrtion responsibility shifted from the Ministry of Finnce to the Ntionl Agency of Public Registry of the Ministry of Justice. Georgin Civil Code. b E. Urushdze. Forthcoming Spring Georgi Ntionl Integrity System Assessment. Trnsprency Interntionl Georgi. c Article 31.1.t. of the Georgin Lw on Public Registry. Government Civil Society Reltions The mjority of the reltionships between CSOs nd the government exist t the level of informtion shring but do not extend further, lthough this is chnging. In 2010, income generted by CSOs from the stte incresed to 22% compred to 14% in A 2010 report noted more positive trend, tht CSOs re still engged in n extensive dilogue with the government. Given existing chllenges, the government lso tries to broden existing forms of dilogue. 16 Government perceptions of the nonprofit sector re mixed, nd enggement is d hoc. Few NGOs hve the cpcity to conduct professionl, rigorous policy nlysis of complex issues nd to dvocte for chnge bsed on reserch. Advoccy is most often successful when NGOs hve the bcking of interntionl donors. Some reports indicte tht NGO dvoccy efforts re more effective t the locl government level. 17 Tx Tretment of CSOs Endnotes 1 Vzh Slmdze, Director, Civil Society Institute. Interview by Citlin Ryn, 15 Februry 2011, Tbilisi, Georgi. 2 United Sttes Agency for Interntionl Development (USAID) The 2009 NGO Sustinbility Index for Centrl nd Estern Europe nd Eursi. Bureu for Europe nd Eursi, Office of Democrcy, Governnce nd Socil Trnsition. June. p Avilble online t _eursi/dem_gov/ngoindex/2009/complete_document.pdf 3 USAID p Center for Strtegic Reserch nd Development Civil Society Orgniztions in Georgi Dynmics nd Trends of Development (English summry). Avilble online t lictions&pge=detls&grnt_id=9&id=91&lng=eng 5 USAID p USAID p See Endnote 4. 8 See Endnote 4. 9 Cucsus Institute for Pece, Democrcy nd Development CIVICUS: Civil Society Index Policy Action Brief. p. 5. Avilble online t csi_phse2/georgi%20pb%20finl.pdf 10 USAID p There is conflicting informtion on voter turnout. This link ( shows tht voter turnout in Georgi is ctully decresing substntilly. However, it my be unfir to compre 2008 with prior yers when interntionl observers reported tht prior elections were likely rigged nd turnout numbers inflted. In 2008 (the most recent elections), voter turnout ws 53%. 12 A. Porsughyn Obstcles nd Opportunities for Civil Society Development in the South Cucsus. Development nd Trnsition. United Ntions Development Progrmme. Avilble online t Article.35+M5255f840e60.0.html 13 H. Gutbrod Compring Civic Prticiption: Cucsus Dt Socil Science in the Cucsus. Cucsus Reserch Resource Centers. October. Avilble online t compring-civic-prticiption-cucsus.html 14 See Endnote See Endnote See Endnote USAID pp With the introduction of new tx code in 2011, NGOs re vlue-dded tx (VAT)-exempt on ll income erned through grnts. Employees re subject to the sme income tx rtes (20%) s employees of privte firms. (Prior to 2010, employees of noncommercil entities pid only 12%, while privte sector employees pid 18%, lthough the former tx code foresw the end of this preferentil sttus by 2011.) Article 81 of the Georgin Tx Code. For more informtion on ADB s work in Georgi, visit

8 Definition nd Objectives of Civil Society Collbortion Civil society is very importnt stkeholder in the opertions of the Asin Development Bnk (ADB) nd its borrowers nd clients. It is distinct from the government nd the privte sector nd consists of diverse rnge of individuls, groups, nd nonprofit orgniztions. They operte round shred interests, purposes, nd vlues with vrying degree of formlity nd encompss diverse rnge from informl unorgnized community groups to lrge interntionl lbor union orgniztions. Of prticulr relevnce to ADB re nongovernment orgniztions, community-bsed orgniztions nd people s orgniztions, foundtions, professionl ssocitions, reserch institutes nd universities, lbor unions, mss orgniztions, socil movements, nd colitions nd networks of civil society orgniztions (CSOs) nd umbrell orgniztions. ADB recognizes CSOs s development ctors in their own right whose efforts complement those of governments nd the privte sector, nd who ply significnt role in development in Asi nd the Pcific. ADB hs long trdition of intercting with CSOs in different contexts, through policy- nd country strtegy-level consulttion, nd in designing, implementing, nd monitoring projects. In 2008, ADB lunched Strtegy 2020, which rticultes the orgniztion s future direction nd vision until b Above ll, Strtegy 2020 presents three complementry strtegic gends to guide ADB opertions: inclusive economic growth, environmentlly sustinble growth, nd regionl integrtion. These gends reflect the recognition tht it is not only the pce of growth, but lso the pttern of growth, tht mtters in reducing poverty in the region. In this new strtegic context, prtnerships with rnge of orgniztions, including CSOs, will become centrl to plnning, finncing, implementing, nd evluting ADB projects. ADB. Forthcoming. Strengthening Prticiption for Development Results. Mnil. b ADB Strtegy 2020: The Long-Term Strtegic Frmework of the Asin Development Bnk, Mnil. Georgi Resident Mission 12th Floor, JSC Crtu Group Building 39A Chvchvdze Avenue, 0162 Tbilisi, Georgi Tel /20/21 Fx In this publiction, $ refers to US dollrs. Publiction Stock No. ARM November 2011

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