There Could Be No Investment Without Investors

THE FIRST FOREIGN REPRESENTATIVE TO GEORGIA -
MR. ITSIK MOSHE BELIEVES IN THE FUTURE OF GEORGIA
GEORGIAN TIMES

In 1990s, one of the Israeli leading newspapers wrote: "a man, who led the World Jewish Agency for Israel in the former soviet space resigned… The Government believes that this is a great loss for the ALIAH and Israel as well". The name of this man is well-known for the Georgian society, as Georgia was the first country of the Soviet block, where he started opening first Jewish representations. Years passed and he emerged as a President of Israel - Georgia Chamber of Business.

On a superficial glance his biography is full of paradoxes and controversies: to begin with the most "pro-Israeli" Georgian Jew nowadays carries out his activity in Georgia that is strange, considering his longstanding disapproval of such working directions like Russian, Georgian or other. On the other hand, he carries out his professional mission in Georgia and defends interests of both countries – Israel and Georgia.

First action, which he organized at the age of 15, was also first one throughout Israel to put forth demands of regaining Israeli territories in Judea and Samaria, which continues to be a highly contentious issue in the Israeli-Palestinian conflict. Later, Mr. Itsik Moshe was the head of the Students' Union and chaired foreign relations in the World Student's Organization. Two congresses of historic importance were organized under him: in 1988, the World Congress of Jewish Youth, where he invited leaders of Soviet Students' Unions, and the First Congress of Jewish Leaders, held in the USSR, which was strictly forbidden by the ruling regime.

Since 1989, he established 5 representations of the World Jewish Organizations in different Republics of former Soviet Union; over the last few years held the position of General Director in Moscow, Russia. Israeli press described him as "an architect of bringing 500.000 Jews to Israel".

Below the GT offers interview with Mr. Itsik Moshe, the President of Israel - Georgia Chamber of Business.

GT: What is the focus of Israeli companies represented in Georgia?
A: The spectrum of these companies is quite wide; they are engaged in the field of construction, manufacturing, insurance, tourism infrastructure, real estate, etc. Many of them are successfully developing their businesses, being the leaders in their respective sectors.

GT: What would be the recommendations of the Israel - Georgia Chamber of Business regarding business development in Georgia?
A: First recommendation to the Georgian partner: he/she is the face of Georgia while dealing with the foreign investor. This fact concerns everything. Approaches and attitudes in today's Georgia must be similar to those of 50s in Israel.
While analyzing the reasons of unsuccessful business it becomes clear, that the parameter of a partner is the foremost and largest section.
As regards the future and prospects of economic developments in Georgia...
By launching the projects of world importance, the country has already acquired international significance and it is recognized to be one of the key states linking Europe with Asia. Nevertheless, this potential needs to be managed and developed in a right direction. I strongly believe, that much like Israel, Georgian economy also is unimaginable without investments. The fact, however, is that the Eastern Europe is more open for investors and only Israel has invested 10 billion USD there. I see, that the new Government is doing its best to recover the tainted image of investment climate in Georgia. My hope stems from the tough fight of new Georgian administration against crime and crack down on corruption. Georgia has to study carefully real picture of relations with the foreign countries and its potential in these terms. Only after that it can set priorities and concrete objectives… All the projects existing to date were leading nowhere. It is particularly true about absurd economic relations with Israel. It is precisely bilaterally made mistakes, which reduced the mentioned potential to 5%.
One more principally important position that I have regarding the development of Georgian economy is: initiatives should come from Georgians. Foreign support is essential, but this is only incentive and the beginning of UPGRADE. In reply to the question "what should we do", I've got very trivial answer: "we must do".
Currently, there are 1 million Georgians abroad. Majority of them says: "I have become different; I know what should be done; I would invest if things were changing". The answer is very simple: they should come back and everything will be changed. Big shifts are possible only through doing and not saying. This was precisely what we called "Zionism" – return of Jews to their home, Israel.

GT: Why "Chamber Business" and not Chamber Commerce and how the Chamber is lobbying the activities of Jewish businessmen in Georgia?
A: Bi-national Chamber of Business is a new word in the world business and diplomacy. This is a non-governmental, non-profit organization that is becoming increasingly popular in the economic and diplomatic relations worldwide. De facto - it is Chamber of Commerce, but de jure - it is Chamber of Business. By the moment of establishing this institution, a word "commerce" carried a negative connotation in Georgia. That's why we replaced it with 'business'.
Investors, coming from Israel, we call Israeli businessmen, as Jew can come from the US as well. Nonetheless, it doesn't mean, that we support only Israeli business establishment. According to unverified data - 50% of investors and representatives in the CIS countries are Jews from various countries.
Now to get back to the core of the question: a key objective of the Chamber of Business is practical development of Georgian and Israeli relations. From the day of establishment, the Chamber aimed at attracting investments to Georgia and assisting foreign investors. It is a common reality, that Israeli businessmen frequently faced failure in Georgia. We believe, that mostly the underlying reason was lack of knowledge of business cultures, business norms, investment climate, legislative basis and general situation existing in the country.
Israel-Georgia Chamber of Business, which closely cooperates with the Israeli Embassy, undertakes the responsibility of guiding any newcomer businessman or company through these issues.
Only by e-mail alone we answer hundreds of questions, provide consultations to the interested individuals. We have rendered a full package of services to the tens of Israeli companies: market studies, sociological researches, organization of any level meetings, etc.
We have conducted 6 business conferences in Israel and USA. We have won 5 court trials defending our partner companies, that encountered difficulties due to the hard investment climate in Georgia.
Administration of the Chamber has published 36 articles in Israeli and Georgian press regarding various burning issues.
I'd like to stress once more that the Chamber is non-profit organization and we provide all above listed services free of charge.

GT: When did you start cooperation with the Georgian Government?
A: Our cooperation goes back to 1980s, when I arrived in the Soviet Union as a representative of the World Jewish Organizations. Georgia was the first country in the former USSR to open the door to the World Jewish Organizations like the Jewish Agency for Israel and many others. Jewish people will never forget Georgian hospitability. Besides, out of all post-Soviet Republics, Georgia was the first country to host the 1st Congress of Jewish Organizations.
It has made an indelible mark on the impression of Jewish people, that Mr. Tengiz Sigua, the Prime-Minister under Zviad Gamsakhurdia's Government, managed to prepare an air corridor in just one night during the war in Abkhazia to evacuate 200 Jews and send them to their country.
Cooperation with the World Jewish Communities was very effective at the time, when Georgia's Foreign Minister was George Khoshtaria.
It has to be underlined, that on the initiative of Chamber of Business the first Representation of Tourism and Resorts of Georgia was opened in Israel. Chamber of Business participated in creation of an inter-governmental framework agreement in tourism field, that envisages transferring Israeli model of tourism development in Georgia.
Under the support of Israel - Georgia Chamber of Business and Israeli Embassy, Israeli TV Company shot two films about Georgia.
Chamber of Business played a key role in establishing close cooperation with Tbilisi and Tel -Aviv Municipalities.
During Mikhail Saakashvili's visit to the US the Georgian President met with the "Conference of Presidents", Presidium of the World Jewish Community Leaders. Throughout 2600 years of friendship, connection of the Georgian and Jewish people was taken as granted. Today, for the first time in history these relations will turn into close cooperation with the World Jewish Community.
The "Conference of Presidents" is a Presidium of the World Jewish Organizations Leaders and represents one of the strongest and most influential groups in the Unites States, that often lobbies the interests of Israeli Government when it comes to relations with the US administration.
Initiator and organizer of the meeting was Israel-Georgia Chamber of Business.
We should consider the importance of this meeting from several angles. (The meeting was important for several reasons). Firstly, this is a formation of a triangle between Georgia, Israel and the World Jewish Community. Secondly, the international coverage of the unique relations between Georgia and Jewish nations, And thirdly, cooperation with the "Conference of Presidents", that naturally means cooperation with the strongest financial group in the US. The meeting produced the first practical step, in particular, the President of Georgia invited a delegation of Conference of Presidents to Georgia. The delegation will familiarize itself with Georgia and with potential of future cooperation with this country.
The meeting in the US has received much repercussions and much coverage in the Jewish Internet publications and press. Leaders of "Conference of Presidents" who often meet with the heads of the leading countries, expressed delight with the meeting with Georgia's President and stressed, that Georgia led by a young, vigorous, western-educated leader has every chance to achieve prosperity.

GT: What about the charity activity of Chamber of Business?
A: Georgian culture is our 'weakness'. Over the last 15 years, 10 CD were released under the support of Chamber of Business or other Israeli Representations that I headed. We conducted a promotion campaign for Georgian art representatives in Israel, France and the US. A number of concerts and actions were held to popularize Georgian and Jewish cultures in both countries.
We will finalize the latest charity project for the nearest future. We are issuing a CD that collects famous Hebrew songs performed by the Georgian singers. The CD is dedicated to the 15th anniversary of establishment of Israeli companies and the World Jewish Representations in Georgia. The album is titled "From Georgia With Love".
The support rendered by Chamber of Business to Georgian art professionals serves as a jumping-off-ground to take a leap in their career and pave the way to Israel.

GT: Are there any specific projects currently underway in the Chamber of Business?
A: The Chamber of Business does not implement the projects. Instead, it connects and encourages the two parties will to launch common undertakings. Our hope is, that our activity in this direction will gain a momentum in the nearest future. We are witnessing an upsurge of interest in Georgia. As for some more specific projects, we are mapping out a plan of cooperation with our government and are considering expansion of our activities in future.

GT: Does the Chamber of Business have introduced project about media development?
A: Given the line of Chamber of Business activities, we cannot score success without the help of media, especially now, when there is an absolute necessity to conduct a campaign, to create a conducive environment for investors. Similar processes took place in Israel about 20 years ago, thus this problems are familiar to me.
We closely cooperate with media outlets, that provide a thorough coverage of some specific projects and conduct it's marketing.
We are planning to conduct a PR campaign under the banner "There could be no investment without investors". This campaign aims at attaching positive meaning to the word 'investment' and helping people to percept the word 'investor' and their 'friend'.

GT: Given your experience of living with Georgians, as a foreigner who knows Georgia better than many other foreigners, how would you characterize the Georgian people?
A: Proud like an Irishman, dressed like an Italian, lazy as a French, educated like a Jew, manipulator like an Israeli, leaving in the country with economics like that of African countries, and having the lifestyle of a rich Sheikh..."

GT: What do you think should be done to enhance Georgia's cooperation with foreign countries?
A: Too little... My experience as a representative prompts me to say that "smart/good Ambassadors in both countries" would be quite enough. Though diplomacy does not approve "initiatives", many positive steps have been made in the world diplomacy due to unlawful initiative of envoys.
Foreign Ambassadors to Georgia and Georgia's Ambassadors to foreign countries should do that.
One more detail up to the point: Georgia brooks no "mediocre" in intellectual aspect.
Finally, 2 good envoys on both sides guarantee best relations.
I have made too many pieces of advice in my answers, but as "a pioneer and the oldest envoy", I can say, that by the present socio-economic level of the country, Georgia's Ambassador in each country could be a person, who could attract at least 4 investors to Georgia every year, and the Honorable Consul – a person, who could attract at least 3 big investors every year.
I believe in the future of Georgia as the new stage begins together with the new generation of "European minds and Asian hearts" that makes unbelievable combination, which guarantees the perspective future to Georgia.