This document outlines Georgia's proposed local self-governance system following decentralization reforms. It proposes a two-tier system with municipalities at the first level and regions at the second level. Municipalities would focus on local services while regions would handle cultural, social and economic development across municipalities. Key elements of the system like representative councils, executive bodies, budgets, and taxation are described. Potential weaknesses and strengths of the self-governance model are also discussed.

1. GEORGIAN DEVELOPMENT RESEARCH INSTITUTE
Concept of Georgia’s Local Self-
governance system
K. Kandelaki, D. Losaberidze, I. Melashvili, T.
Shergelashvili
Tbilisi, 2012

2. Decentralization issues:
 Administrative territorial enragement;
 Distribution of competencies;
 Financial and property issues;
 Formation of self-governance organs (elections) the mode of
actives (structure and regulations
 Forms of state and public supervision
 Public involvement in decision-making.

3. Two level self-governance will be established after the
reform
 The first level of self-governance -
Municipality (town, village/community) – functions:
Providing maximum number of services, maximal inclusion of
the population in managing its residential environment and in
the process of formation.
 The second level of self-governance -
Region (administrative-geographical and united historical-
ethnographic unit) functions –
Carrying out of those obligations the cultural and social-
economical resources of which ones the first level of self-
governance is lacking.

4. Settlements: Self-governance units
The types of settlements:
 Village type settlements
 Town type settlements
Self-governance units:
 Towns
 Village/community – the community is an amalgamation
of one or several village type settlements.

5. Managing organs of self-governing unit
 Representative organ – sakrebulo (council)
 Elected through direct, equal, secret ballots by entire
population; according to the proportional single
transferable vote (STV) for the term of 3 years.
Up to 10 000 population elects Sakrebulo consisting of 15 members
Up to 50 000 population elects Sakrebulo consisting of 21 members
Up to 100 000 population elects Sakrebulo consisting of 25 members
Up to 300 000 population elects Sakrebulo consisting of 35 members
The members and authorities of Sakrebulo except the chairperson and the
secretary perform their duties free of charge

6. Executive organs of local self-governance units
 The executive unit is:
 Gamgeoba (Executive board) – in the
village/community and Mayors office in town
 The chief of the executive unit:
 Gamgebeli(chief of the executive board) and Mayor
in town
 Gamgebeli of village/community and city mayor are
elected according to the rule determined by the law
through direct, equal and secret ballot by the entire
population for the terms determined for Sakrebulo

7. Institutions which ensure public involvement in the self-
governance bodies.
1. In all he settlements of the community the
population elects on the voluntary basis
 Mamasakhlisi (facilitator between the population
and governing bodies)
 Public board (of observers)
2. The town Sakrebulo has the right to divide the town
into the districts. The district bodies are created and
functioning analogues to the community settlement
bodies.

8. Apart form occupied territories in Georgia there are 11
regions and the capital - Tbilisi:
1) Ajara – capital - Batumi;
2) Guria – administrative center - Ozurgedi.
3) Samegrelo – administrative center – Zugdid;
4) Svaneti - administrative center – Mestia;
5) Racha-lechkhumi - administrative center – Ambrolauri;
6) Imereti - administrative center – Kutaisi;
7) Samtkhe-Javakheti - administrative center – Akhaltsikhe;
8) Shida Kartli - administrative center – Gori;
9) Mtianeti - administrative centers – Dusheti or Jinvali;
10) Kvemo Kartli -administrative center – Rustavi or Bolnisi;
11) Kakheti - administrative center – Telavi;
12) Tbilisi

9. The representative body of the regional council
 The board of the region consists of the members
elected for the term of 4 years through the direct,
equal and secret ballot by the entire population
through proportional single transfer vote.
 Up to 200 000 population elects council consisting of
25 members
 From 200 000 up to 100 000 population elects council
consisting of 35 members
 The members of the regional council receive salaries.

10. The executive body of the region –
Administration:
 The executive body of the region is a regional
administration
 The head of the regional administration is a governor of
the administration
Chairperson of the regional council enounces a vacancy for the
position of the governor of the regional administration and creates
special commission for the competition. The half of the members of
this commission are submitted by Georgian government (president)
The competition commission by the decision of the 51% of the
members recommends for the position of governor of the
administration selected candidate (candidates) for further
endorsement to the regional council which takes decision by the
majority of the regional council members.

11. Rights and obligations of the self-governance
unit
 Exclusive rights and obligations
 Delegated rights and obligations

12. General rights and obligations of the local self-governance unit and
regional governing bodies

 Drafting of the budget, its discussion, adoption, introducing
amendments, execution, control, reporting and evaluation.
 Introducing local taxes and duties as well as introducing special
benefits
 Taking loans from other budgets, physical or legal entities issuing
local securities and lotteries.
 Creation of Social-economic programs of local self-governing
unit
 Establishing special tariffs for services provided within the frames
of the rights of self-governing unit

13.  Possession, managing and selling of the property in the
ownership of the self-governing unit
 Creation, reorganization and liquidation of enterprises,
institutions and organizations
 Carrying out and participating in the international
economic, social and cultural projects
 Concluding agreements with other self-governing units
on different cooperation
 Participation in local national regional and international
association.
 Conducting state purchase activities envisaged by the
legislation.

14. Exclusive rights and obligations of the managing bodies
of the local-self governance unit
 Pre-school education
 Ambulatories, primary medical assistance, hospitals
and family medicine of the local significance
 Cultural monuments and cultural objects of the local
significance, managing of natural resources of local
significance as well as management of water and land
protection, local forest, land and sanitary protection.
 Maintaining public transport and motorways of local
significance

15. •Additional local programs for social assistance
•Control on urban planning and construction
•Utilizing garbage from the public places and
residential areas. Preventive measures for
cleaning procedures
•Sewage system, providing with drinking water,
melioration on the territory of particular self-
governance, keeping everything tidy
•Seminaries
•Fire protection measures

16. Exclusive rights and obligation of the regional governing body
 Orphanages/ schools for socially venerable layers of the
population
 Hospitals of regional significance
 Keeping medical statistics
 Cultural and sports objects of regional significance
 Protection of water and plant of the region as well as of forests,
collection and utilizing the garbage, recycling and utilizing
sewage, protecting natural and water resources of water
significance
 Melioration of the region
 Maintaining roads and public transport circulation between the
self-governance units
 Regional planning

17. Division of tax revenues between the different governance levels
Center •VAT
•Excise
•Import duty
•Tax on profit (50% of profit share)
Region •on profit (50% of profit share)
•Income tax (not more than 5%of the taxation tariff (when
tariff is 20% income tax)
Local self- •property tax(local tax)
governance •Income tax (not more than 15%of the taxation tariff (when
tariff is 20% income tax)
Local self-governance as well as regional governance should be able to
regulate income tax(shared tax) tariff for local self-governance - lower margin
7.5% upper margin 15%, region - lower margin 2.5% upper margin 5%,

18. Inter government transfers and other revenues
 Equalizing grant
 Targeted transfer for financing delegated rights
 Capital transfer for the increase of non finance(in kind) assets
 Special transfer
Other revenues
•Duties on natural resources
•Duties on granting rights
•Revenues and dividends from the enterprises of public ownership
•Revenues received from collecting penalties and providing services

19.  The amount allotted for caring out exclusive rights and obligations
should be not less than 50% of total expenditure of the budget for
the self-governance unit /region
 The sum received from selling of the public ownership property
should be fully transferred into the state, regional or municipal
budget depending on the fact who is the owner
 The loan taken for the public needs under the supervision of the
Ministry of Finances from the physical and legal entities, by the
regional/self-governing unit of the governing body.
 Administrative expenses of the governing bodies of the regional
self-governance unit should not exceed 20% of the budgetary
expenditures
 In the state budget the special attention should be dedicated to the
mountainous regions of Georgia which is envisaged by the Georgian
legislation

20. The forms of state supervision
 Legal supervision
 State supervision concerning exclusive rights and
obligations is limited only by checking of compliance of
these tasks with the legislation. The body for the legal
supervision is the Georgian Minister of Justice


 Sectoral supervision
 State sectoral supervision envisages supervision of
executing contents and quality of the task. Responsible
for the supervision is the body (primarily appropriate
ministries) which delegated its rights.

21. Weak points
 The process of formation of the new unit could be
complicated
 The process of reformation could take much time
 There is a probability of increased local corruption
 The problem of the qualification of the public servant
 The process of distribution and execution of rights and
duties between the different levels of the governing
bodies
 Technical-druidical problem while the distribution
process between the levels of the governing bodies
 Kind of a threat of polarization of the regional elected
bodies

22. Strong points – self-governance:
 Growth of public information control and participation;
transparency of government activities, development of
civil society
 Arranging of social economic problems of the
minorities with their own participation
 Development of quality of services and local
infrastructure
 Facilitation of development of mid-size, bigger towns
and regional centers
 Better consideration of the interest of mountainous
regions
 Today it is easier to move in to the who level self-
governance

23. Strong points – region:
 To maintain political and economical bans with the
autonomies - it is better the existence of regions
 Social-economical unity of the historical regions
 To carry out functions of the self-governance which
need bigger unit than the municipality
 Development of the regional centers and emerging of
developed group of the towns