64IT’S CALLED DEVELOPMENTIn 2002 I moved into an apartment next to the MarjanishviliTheater in the Tbilisi neighborhood of Plekhanov. The stretchbetween my flat and the metro was a wall to wall shanty townof kiosks that sold everything from contraband cigarettes toshoe repair to instant passport photos. People also sold trinkets,books and produce along the sidewalks or from the trunks oftheir jalopies. The locality was a bustling little bazaar. Thenone day in 2004, most all the kiosks disappeared. More soonfollowed, diluting Plekhanov’s chaotic atmosphere, although theneighborhood still retained its Asiatic flavor. But in 2011, thecity began a sudden, massive renovation process along the mainstretch of Agmashenebli. Today, the stretch looks like anothercity entirely.The phenomenal amount of development in <strong>Georgia</strong> in thepast several years is nothing short of mind blowing. The checklistof accomplishments is impressive: the make-overs of Signahgi,Mestia and Batumi and improvements in Tbilisi, Zugdidi, Telaviand Kutaisi; resurfaced streets and a new highway in-the-making;new airports in Tbilisi, Batumi and Mestia - the list goes on. Theruling party modestly said that the nation was responsible, buteverybody knows that what we see is a result of the work theUnited National Movement put into the county. But what wedon’t see is just how the government was able to produce theseachievements. Much of the improvements we see today has comeat the expense of private owners who have had to relinquish theirproperties in the name of progress. In this regard, the nation hasbeen responsible for these changesThe process of property redistribution started in the ShidaKartli region of <strong>Georgia</strong> when Irakli Okruashvili was appointedits governor 256 . Although President Saakashvili had promised tostrengthen the inviolability of private property in his pre-election256 „People’s” Market Is Being Sold out. http://www.humanrights.ge/ http://www.humanrights.ge/index.php?a=main&pid=6722&lang=eng Accessed14/11/2012
campaign, the most significant enterprises in Shida Kartli weregiven to the local government. In reality, the state was confiscatingproperty, but since no formal law on de-privatization existed, thestate could do this as long as the property in question was “a gift.”A classic example of this is the story of Jemal Tsiklauri, whoowned Liakhvi Market in Gori, the regional seat of Shida Kartli.A local man complained he had been cheated by a butcher whohad charged him for 10 kilos of meat, but had given him 9. TheDeputy Governor, Mikheil Tsiklauri, showed up and confiscatedthe scale and demanded on television that criminal charges befiled against Tsiklauri. Then the regional tax office slapped acharge on Tsiklauri for evading 287,120 GEL of taxes between2002- 2004. 257 Tsiklauri was jailed for tax fraud in March 2004.Although an investigation by the Ministry of Justice foundTsiklauri had evaded 37,000 GEL, not the 287,120 GEL Goriauthorities charged, he says he paid the Gori Prosecutor Office58,000 GEL, yet he remained in jail. 258 His lawyer, VakhtangTskhomelidze, claims that Kareli, who by this time was governor,visited Tsiklauri in jail and demanded he hand over his business,which was valued at 228,000 GEL. In September, 2004, Tsiklauripleaded guilty and agreed to transfer his property and paid a 2,000GEL penalty fee in addition to the 58,000 he had already paid. 259Similar cases were reported regarding Gorkoni Ltd., whichgave 22% of its shares to the regional authorities 260 , as did theGori central stadium, which was valued at 56,425 GEL. Perhapsthe less subtle example of “re-privatization” reportedly happenedto Nodar Maisuradze, a history professor at Tskhinvali StateUniversity. He leased 230 hectares of land and grew wheat with27 other families. Right before harvest, Giorgi Kereselidze, a257 Jemal Tsiklauri case. Public Defender of <strong>Georgia</strong> http://www.ombudsman.ge/index.php?page=1001&lang=1&id=808 Accessed 14/11/2012258 Ibid259 Ibid260 Minister’s Friend - A Studio Monitor Investigation. Available at http://www.youtube.com/watch?v=8xDdy5M2WrI Accessed 05/12/201265
- Page 5 and 6:
INTRODUCTIONOne day shopping with m
- Page 7 and 8:
closely affiliated to Eduard Shevar
- Page 10 and 11:
news to the Autonomous Republic of
- Page 12 and 13:
If the authorities had wanted, they
- Page 14 and 15:
Tbilisi Mayor Gigi Ugulava, who was
- Page 16 and 17: Kakhi Beqauri and Eldar Mdinaradze.
- Page 18 and 19: oadcasting 39 but sold the frequenc
- Page 20 and 21: He went on to say that later that d
- Page 22 and 23: with Russia, which sent the nation
- Page 24 and 25: Irakli Okruashvili case in Septembe
- Page 26 and 27: them in the street. They took trans
- Page 28 and 29: Maestro contends the dishes were pa
- Page 30 and 31: In the meantime, Chikovani has rema
- Page 32 and 33: General Media arrived in early 2011
- Page 34 and 35: merger of the Caucasus Network, Geo
- Page 36 and 37: In cases when the owner of a busine
- Page 38 and 39: the shares and LLC Investico Allian
- Page 40 and 41: 38WHO OWNED OUTDOOR ADVERTISING?Whe
- Page 42 and 43: The latest Civil registry entry has
- Page 44 and 45: On September 12, 2011, JSC Adprojec
- Page 46 and 47: ut we are only partly correct. The
- Page 48 and 49: estaurants to confiscate documents
- Page 50 and 51: Delta Holding, the football (soccer
- Page 52 and 53: A PHARMACEUTICAL OLIGOPOLY“Why ar
- Page 54 and 55: to construct manufacturing sites an
- Page 56 and 57: A loan from the European Bank for R
- Page 58 and 59: People’s Pharmacy, a small pharma
- Page 60 and 61: the large import/distributors and r
- Page 62 and 63: that the decrease could be their sh
- Page 64 and 65: Kvadimax, Enozid H, Musitroli, Amta
- Page 68 and 69: uling party leader in the region wa
- Page 70 and 71: Federation. The Georgian prosecutor
- Page 72 and 73: went to Argilstone Investment and 4
- Page 74 and 75: (10%). 290 Like Lemise, Interplast
- Page 76 and 77: then buying it back from that group
- Page 78 and 79: elonged to Kapital Vostok, a Swiss
- Page 80 and 81: a fantasy settlement just south of
- Page 82 and 83: made quite a profit, as Sairme is i
- Page 84 and 85: and the Tbilisi Development Fund, t
- Page 86 and 87: land from the Fund along Aghmashene
- Page 88 and 89: On December 24th, the economy minis
- Page 90 and 91: had never been properly notified. 3
- Page 92 and 93: In 2009, Stanton was renamed GeoPro
- Page 94 and 95: Tkibuli is a derelict post-Soviet i
- Page 96 and 97: POSTSCRIPTWhen Georgians went to th
- Page 98 and 99: While Rustavi 2 was passing through
- Page 100 and 101: On October 5, Maestro TV and Global
- Page 102: and further reasons why foreign inv