Tracking Progress - One Reform at a Time

Reform: Capital Market Development (2018-03-12)

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On March 12 2018, the implementation of a capital market development strategy was evaluated during the second phase of ReforMeter. The greatest progress was achieved in the development of legislative frameworks.

According to the Government

Government research revealed that at this stage, 67.7% of the reforms have implemented. In Phase I, this indicator was 51%.

The government’s formal progress (at the input and output level) in the target reform area is measured through a survey covering the following four dimensions:

  1. Institutional Setup
  2. Capacity Building
  3. Infrastructure & Budgeting
  4. Legislation & Regulations

The sets of indicators are designed to track progress on each dimension towards the system envisioned in the reform strategy. They cover all fundamental actions that have to be executed to create an optimal environment that will help achieve all reform objectives. Completion of all actions indicates achievement of the desired policy framework.

The sets of indicators captured by the questionnaires are used to measure distance from the stated reform objective on a scale from 0% (no action has taken place) to 100% (all desired systems are fully implemented, monitored and evaluated).

The questionnaires are filled out twice a year through face-to-face interviews with representatives of all agencies involved in the implementation of a particular reform.

According to the Stakeholders

The stakeholder group evaluated the reforms with a score of 5.00 out of 10. This evaluation is higher than that of the previous phase, in which the reform implementation received a score of 3.85.

Each reform is evaluated, twice per year, by a group of stakeholders – at least 15 individuals not affiliated with the responsible agency, but directly affected by the reform.

The entire group of stakeholders are convened at ISET in order to review the results of the government survey, as well as objective data and information about reform outcomes, which are collected and analysed by the Project Team.

Each member of the group provides an anonymous quantitative assessment of the reform by answering the following questions:

1. What is your assessment of Georgia’s current performance in this area of reform?

2. Is the economic reform agenda progressing as expected?

3. Is the reform likely to deliver adequate results?

The total score for each reform is calculated as a simple average of individual assessments.

The overall assessment of the reform process is automatically provided through the ReforVerdict – a summary score, derived as a weighted average of scores assigned to each reform. The ReforVerdict score is adjusted on a monthly basis, following monthly stakeholder meetings.

  • Giorgi Khishtovani

    Ilia State University

  • Irakli Kirtava

    Galt & Taggart

  • Irakli Mekvabishvili

    EBRD

  • Yaroslava Babych

    ISET

  • Archil Bakuradze

    Crystal MFO

  • Marina Guledani

    CFS Investment Bank

  • Giorgi Tsutskiridze

    Association of Banks of Georgia

  • Vasil Revishvili

    Thales Investments

  • Giorgi Paresishvili

    Georgian Stock Exchange

  • Aieti Kukava

    JSC Alliance Group Holding

  • Efrem Urumashvili

    Nodia, Urumashvili and Partners

  • Mirian Gogiashvili

    Partnership Fund

  • Givi Korinteli

    Investment Fund Green Capital

Outcomes

Objective and quantitative data reflects reform outcomes to be used as a proxy for reform effectiveness.