1. TRANSPARENCY INTERNATIONAL GEORGIA 20 OCTOBER 2009 ONE YEAR AFTER BRUSSELS DONOR CONFERENCE

2. PLEDGED AID (1) TOTAL AMOUNT 4.55 BLD USD – 1,000 USD PER PERSON 38 COUNTRIES AND 15 INSTITUTIONS 95% PLEDGED BY 13 DONORS – 7 COUNTRIES AND 6 INSTITUTIONS

3. PLEDGED AID (2) BIGGEST COUNTRY DONOR US – 1 BLN USD BIGGEST INSTITUTION DONOR – EBRD 927 MLN USD MORE THAN ½ LOANS - CONCESSIONAL

4. PLEDGED AID (3) SPENDING PRIORITIES: DIRECT BUDGET SUPPORT ENERGY ROADS MUNICIPAL INFRASTRUCTURE IDPS SOCIAL ASSISTANCE AGRICULTURE ENVIRONMENT BANKING SECTOR

5. PLEDGED AID (4) COMMITTED IN 2008: 795 MLN USD 403 MLN USD DIRECT BUDGET SUPPORT MORE THAN HALF GRANTS COMMITTED IN 2009: OVER 1.850 MLN USD 143 MLN USD DIRECT BUDGET SUPPORT 2/3 LOANS

6. PLEDGED AID (5) US FUNDING: 250 MLN USD DIRECT BUDGET SUPPORT 60 MLN USD MCC (REGIONAL ROAD) 13 MLN USD (GAS STORAGE FACILITY) 26 MLN USD (REG. INFRASTRUCTURE) 100 MLN USD (STABILIZATION/RECONSTR) 1 MLN USD MCC (ADMINISTRATIVE) 53.3 MLN USD (ECONOMIC SUPPORT) 242 MLN USD (ECONOMY, PEACE, GOVERN) 176 MLN USD OPIC (BUSINESS SUPPORT)

7. POSITIVE DEVELOPMENTS (1) ESSENTIAL SUPPORT: POLITICAL, FISCAL AND ECONOMIC (FDI DROP TO 20%) 53% ALREADY COMMITTED FUNDING HELPED TO MAINTAIN ECONOMIC ACTIVITY, REDUCE BUDGET DEFICIT, PAY SALARIES/PENSIONS, STRENGTHEN BANKING SECTOR

8. POSITIVE DEVELOPMENTS (2) TRANSPARENT AID BREAKDOWN (MINISTRY OF FINANCE DATABASES POSTED ON INTERNET) COOPERATION WITH THE MINISTRY OF FINANCE (REGULAR MEETINGS WITH GEORGIAN NGOS) TRANSPARENT MUNICIPAL DEVELOPMENT FUND PROJECTS BREAKDOWN (ONE OF THE CHIEF IMPLEMENTORS)

9. POSITIVE DEVELOPMENTS (3) SOME GOVERNMENT AGENCIES RESPONDING TO CRITICISM NGOS AND MEDIA MONITORING AID IDP ASSISTANCE MORE COMPREHENSIVE AND LONG-TERM

10. CONCERNS TO DATE (1) DOMINANCE OF POLITICS (OPPOSITION REFUSAL TO ENGAGE IN THE ANTI-CRISIS COUNCIL ACTIVITIES) WEAK DEMOCRACY LACK OF POLITICAL CONDITIONS LACK OF PARTICIPATORY PROCESS OF AID DISTRIBUTION DECISION-MAKING

11. CONCERNS TO DATE (2) POOR PUBLIC KNOWLEDGE OF AND UNDERSTANDING OF SPENDING PRIORITIES SPEEDY PROCESS AND INSUFFICIENT PLANNING WEAK OVERSIGHT INSTITUTIONS AID NOT ALWAYS TIED TO CAPACITY BUILDING

12. CONCERNS TO DATE (3) NOT ENOUGH EMPHASIS ON QUALITY AND IMPACT ASSESSMENT INSUFFICIENT SUPPORT OF NGO MONITORING EFFORTS LACK OF SUFFICIENT DONOR TRANSPARENCY

13. CONCERNS TO DATE (4) TWO-WAY COMMUNICATION PROGRESS ASSESSMENT AND GOVERNMENT ACCOUNTABILITY FORMALIZED PROCESS

14. RECOMMENDATIONS (1) POLITICAL CONDITIONS: MEASURABLE AND PUBLIC TRANSPARENCY OF FUNDING DECISION- MAKING / CLEAR JUSTIFICATION COMPREHENSIVE ANALYSIS OF IMPLEMENTING AGENCIES AND OVERSIGHT MECHANISMS

15. RECOMMENDATIONS (2) BETTER PLANNING AND COMMUNICATION MORE EMPHASIS ON QUALITY ASSESSMENT SUPPORTING MONITORING ACTIVITIES INSTITUTIONALIZATION OF TRANSPARENCY AND ACCOUNTABILITY MECHANISMS BETTER DONOR TRANSPARENCY