Israel - Georgian Chamber of Business Serves as a Guide for Investors

Interview with
President of Israel-Georgian Chamber of Business
By Lali Javakhia

The GT's Lali Javakhia has interviewed Mr. Itsik Moshe, President of Israeli - Georgian Chamber of Business, in regard with a Week of Georgian Jews held in Georgia last week.

GT: What is your assessment of a Week of Georgian Jews?
A: Any public action, naturally, is a positive and interesting event. This week also carried emotional and nostalgic sense. However, I think that the theme of nostalgy has been already duly covered and highlighted. Nowadays, there are more serious issues we have to deal with. I mean poor economic and diplomatic relations between Georgia and Israel. Much is to be done in this direction.

GT: You have always represented Governmental and International Organizations and not Georgian Jews political unions. How can you explain that, and, what is your view of the present relations between both countries?
A: Today, when the borders are open and Jews from Georgia as well as from other countries return back to their historical Motherland, every Jew seeks Israelisation and integration into the Israeli society. This is a policy of the Israeli Government as well as the Georgian Government's to bring Georgians back to Georgia. From my viewpoint, in that situation the so-called Diasporas in their essence run counter to the aim of the Israelization of Georgian Jews and downsize from the relations between the two countries to the relations between Georgia and Georgian Jews. Today, as never before, we have a historical chance in both countries to make the relations between Georgians and Georgian Jews grow into the relationship between Georgia and the State of Israel. Public diplomacy in this case should be a tool to achieve this goal and not a goal itself.

I believe, that we don't use even a minimum of the potential for successful relations. Both Israel and Georgia should examine, shape and outline their stances and demands to one another and then implement a coherent policy through its diplomatic missions.

GT: Media has already started talking about the diplomatic scandal with Israel?
A: Any country has the right to demand from another State to respect the interests of the country to which it posts its diplomatic envoy. But what is happening today is quite logical and the given problem causes to the nearest past. Let me keep my criticism of Israel for Israeli media. As for the Georgian side, diplomacy with Israel did not go much beyond visits by Georgian Government officials to the families of Georgian Jews in Israel. Within those years, Israeli investors tied up over 10 billion dollars in 'less friendly' countries of Eastern Europe. Diplomatic representatives definitely shape the scales of economic relations and are capable of activating untapped potential. If Georgian Ambassador to Israel carries out its activity just to communicate with the Georgian Jews there, it should better recall such Ambassador back to his country and save money for the country's budget. The duty of the Ambassador is to attract at least one investor per month to the country of the mission. There is higher opportunity to do so today as Georgia's new Government has got a fantastically positive image in Israel and in the West. Let's use this period not for tourist excursions, but for real truly effective work.

GT: What is Georgia's experience in economic cooperation with Israel and what has been carrying out to promote these economic relations?
A: Ex-Minister of Economy of Georgia together with the Government of Georgia has appointed me on the position of Minister's Advisor in the field of investment. I had the honor to accompany Georgian President during his visits to three countries: the US, Israel and Turkey. In all three countries I organized meetings between the President of Georgia and the potential investors. Those meetings proved that 60 percent of investors were ready to come to Georgia for future cooperation. We have to grab this opportunity and bring it into reality. From our experience, we have noticed that nowadays the number of potential investors interested in Georgia is higher that it was during last four years altogether. If anyone has got illusions that serious investor will come to Georgia and will invest here immediately - I can say that he just is not acquainted with the given field. A lot of work should be done and many visits are necessary to communicate with investors. The visit of the President of Georgia has already produced results. Several groups of investors brought by Israel-Georgia Chamber of Business now are intending to make investments of 100 million dollars to Georgia.

GT: What has changed in relations with foreign investors after they frequently visit Georgia?
A: Foreign investors used to seek out Georgian partners and foreign management recently. But this kind of relations could not succeed because of the discrepancies in business culture and caused a failure in most cases. Today, a foreign businessman starts up a business without a local partner and with Georgian management. This form has proven to be more successful. Besides, a Western-educated and experienced generation has emerged in Georgia, which successfully performs this function.

GT: What is the main challenge today faced by a foreign investor in Georgia?
A: Georgia's economy is moving from a corruption-entrenched system to free rails. The process began not long ago and we are now in the transition period. Having no opportunity to find the right address in proper structures or a relevant project could be recognized as the main challenge today for a potential investor. This is quite characteristic to a country being in transition period and, hopefully, everything will be settled in the short run. But before, Israeli - Georgian Chamber of Business will be functioning as a guide for foreign investors.