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Strengthen Social Protection in Georgia

Project

  • Social protection and decent work

  • Health

Adam Jones - Flickr
Adam Jones - Flickr
Project start date
Status

Closed

Project end date
Financing amount (Euro)
1M€
Country and region
Georgia

The project aims to support the State actors in Georgia to tackle social issues and deliver better social protection services.

Due to the Covid-19 pandemic, the Georgian economy has contracted by 4.9% in 2020 and the most vulnerable have been hit the hardest due to a dramatic decrease in household income. After a steady decline in poverty and extreme poverty over the past decade, the Covid pandemic has pushed the poverty rate up from 19.7 to 21.3 percent in 2020 according to National Statistics Office of Georgia (GeoStat) figures.

The situation is lingering and is challenging the different socio-economic successes of the past decade:

• introduction of targeted social assistance (TSA) and subsequent decrease in poverty,
• development of family and childcare services,
• creation of the universal healthcare programme,
• introduction of a mandatory contributory pension scheme for formal workers,
• increase of pensions and benefits for mountain residents,
• increase in the universal old-age pension and disability pensions and social services,
• creation of the Employment Agency and the Internally Displaced Persons and Eco-Migrant Agency.

In 2021, poverty rate is expected to rise to 2013-figures and the incidence of extreme poverty in the population could more than double to 7.4%.

The biggest part of the 3.5 billion GEL of the 2020 Anti-crisis Plan (30%) was allocated to direct assistance to citizens: people who have lost their jobs and have not earned a salary, socially vulnerable families, and people living with disability and their household, assistance for children, and subsidiaries for utilities during winter months. It is expected that 1.1 billion GEL will be allocated for the anti-crisis plan in 2021, with social support amounting to 545 million GEL.

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