SOCIAL INFRASTRUCTURE DEVELOPMENT OF TBILISI IN THE CONDITIONS OF MARKET RELATIONS

OTAR GABEDAVA

The crisis of 90-ieth in political and economic life of Georgia has left a deep trace in the development of branches of social infrastructure in cities as well as in Tbilisi.

Here are the following reasons of crisis in social infrastructure branches: change of property forms that led to destruction of existing industrial relations and, thus, it became impossible to form new ones in a rough-and-ready fashion; radical change of monetary policy – hyperinflation of Russian rouble and coupon followed by a sharp deceleration of real budget revenues and, therefore, decline of branches of municipal economy; chaos in the state management of economic subjects; civil war; complete disorder in the protection of principal means of branches and other material values; economic instability in the country, etc.
We think it purposeful to consider trends of the development of some branches for late five years in order to be able to understand the situation of social infrastructure of Tbilisi.
Housing plays a special role in the development of social infrastructure. Its present-day situation and perspectives are important for the analysis and forecast of population’s social position.
In fact, no dwelling houses were built in Georgia and, especially, in Tbilisi in 1991-1993. The performance figure of the functioning of housing branch fell to minimum.
Dynamics of the development of housing in Tbilisi for 1999-2000 reveals the fact that in 1990 the total square of dwelling houses was 19,5 mln. sq. m. In 2000 it was 20 mln. sq. m., i.e. this figure is characterised by upward trend. At the same time, we should note that, in fact, there was no growth of floor space in 1990-1999. The growth was observed in 1999-2000.
As for the improvement of Tbilisi housing stock, its index number fell as compared with that of 1990. For instance, the ratio of water supply of housing stock fell from 94,9% to 93,8%. Sewerage improvement fell from 94,8% to 93,8%.
The gasification index of housing has grown. During the analysed period, it increased from 73,5% to 77,9%. This was, mainly, caused by an increase of electricity tariff, disorganisation of central heating system and hot-water supply, which caused population to use cheap electricity.
Thus, the above-mentioned trend led to decreased ratio of the provision of housing stock with electric range. This figure fell from 20,4% to 19,7% during the mentioned period.
Housing stock in Tbilisi and, especially, old part of the city is in a very poor state with many houses being in an emergency state and having to be pulled down. The situation has deteriorated even more after earthquake in 25 April 2002. After the earthquake, many houses were not fit for accommodation. The total damage was more than 120 mln. US dollars.
We should note that inner engineering services, particularly, sewerage network and water supply system were damaged due to lack of financing. This led to frequent water leakage that damages buildings.
There are two ways of saving housing in Tbilisi: increase of house building rates and significant improvement of present housing stock.
Due to heavy economic situation of Georgia and limited budget funds, in 1995-2000 funds of local budget were, mainly, assigned for restoration of houses and housing stock abolished after January and December 1991-1992 as well as for other disaster zones.
On account of low budget revenues of the country, in 1991-1992 it was impossible to finance further construction of dwelling houses meant for providing population, members of building societies and contract drivers with accommodation, not to mention completion of earlier building sites.
The further growth of housing stock by means of an increased number of newly erected houses has been financed by private investors, and it was characterised by quick rates. A clear example of it are increased investments in house building from 17,3 mln. GEL in 1995 to 63,1 mln. GEL in 2001.
Public utilities acquire a special role in the formation and development of market relations. As far as we know, polarisation and division of population into the rich and poor has become more evident in the mentioned period. At the same time, economic and financial state of enterprises and organisations is in a deep crisis. As a result of it, incomes of public utilities branches fell sharply. Yet, it is difficult to imagine functioning of a city without their work. If work of public utilities stops for even a few days, this may entail catastrophe in the city. Therefore, the branch fulfils a vitally important function.
Proceeding from the above-mentioned, during the transition to market relations local authorities (municipality, city executive board) should solve a problem of providing branches of public utilities with financing and gradually develop a strategy of staged release of financing connected with exploitation of public utilities branches as well as create economic and legal framework for the improvement of qualitative indices of housing and communal service of population. There is a heavy situation in water supply system and sewerage in Tbilisi. Namely, there are frequent emergencies and damage of networks. As a result of it, a great amount of drinking water is lost. As meters are not installed in a whole number of enterprises and houses, water is treated irresponsibly. Systems of secondary and reused water are not used either.
The analysis of water supply branch reveals that compared with 1995 the length of water supply increased (from 1937,7 km. to 1951 km) in 2000. Water supply is limited for all consumers. As a result of it, compared with 1995 such indices as sewage leakage and amount of water per capita decreased in 2000.
Due to shortage of funds for current and big repair, technical situation of existing rectifiers and networks of sewerage collectors is difficult, which is a reason of the inefficient work of such rectifiers. Many local rectifiers in the area of some enterprises do not function at all. The development of sewerage is behind that of water supply.
According to statistics, the index of energy consumption grew (from 1040,2 mln. klw. to 1750 mln. klw) as compared with that of 1995.
Yet, where before natural gas was supplied to 100% of flats in 1995, i.e. 290a7 thousands of flats , in 2000 gas was supplied only to 67,9 thousands of flats.
Municipal improvement is in a very difficult situation, too. Hard surface of the city was badly damaged due to lack of financing and therefore, non-completion of works. Floodlight is in disorder, which indicates at the necessity of serious capital investments. Work of the green peas service has significantly decreased, which will, in the long run, have a negative impact on the macroclimate of the city.
The branch of sanitary cleaning of the city is in a difficult situation, too. Despite the fact that modern dust-cards were purchased, maintenance logistics of the branch is on a very low level. In fact, mechanised cleaning of streets is not performed. Streets are not watered, as there are not enough special cars.
Household wastes are thrown to dust holes, which does not meet elementary requirements of environmental protection. Modern technological processes should be introduced in health service of the city. With this purpose, it is necessary to build refuse-processing factory in the suburbs.
The principal transportation means in Tbilisi are the Underground, buses, trams, trolley buses and taxis. The efficiency of transport system is stipulated by the situation of transport infrastructure and rolling stock. In fact, both of them require significant reorganisation and improvement from the organisational point of view. Bad road cover is, first of all, characteristic of transport infrastructure. Disrepair of transportation means and their misuse are a poignant problem for city transport.
In 1999-2001, auto transport and the Underground partly changed roles (in 1990 buses transported 243,2 mln. people, the underground transported 183,4 mln. people. In 2000 this index made up 91,5 and 105,4 mln. people). Yet, the general tendency was not broken. The majority of passengers travelled by buses (in 1990 up to 84% and 90,4% in 2000). Compared with 1995, in 2000 there was an increase in the number of passengers travelling in all kinds of transport except the Underground. In this period, the number of passengers travelling by bus (mainly, by microbuses) has grown much (approximately 2,1 times).
Transition from centralised methods of trade management to market regulation and system of free price formation, cardinal reorganisations have changed wholesale trade as well as forms and methods of retail trade. Added to this was a significant deterioration of living standards caused by unemployment. As a result of it, a completely new market was formed with moral principles of market economy and its negative phenomena.
The physical volume of trade increased much in 1995-2000 (rate of average annual growth is 135%). High rates of production volume are, first of all, stipulated by a very low volume of return of retail trade in 1995. Besides, we should also point at stabilisation of social-political situation of the country in the analysed period, a significant growth of non-public sector in trade, comparative improvement of organisational forms of trade and a sharp increase of foreign import. Besides, purchasing ability of population has slightly grown.
In the analysed period, the index of public catering service has changed unequally reaching its highest point in 1995-1996 (51,3 and 57,6 mln. GEL). In 1997 and 1998, it fell sharply (by 76,3%) and increased in the subsequent period by 176,3% in 1999-2000.
In 1998-2000, the volume of hotel service in Tbilisi was characterised by a downward trend (with decrease of 29,6%). Presently, the international significance of Georgia increases more and more due to the geographic location of the country. True, a number of visitors did not increase significantly on account of the present political, economic and criminal situation. Yet, the situation did not deteriorate so much as to become grounds for the decrease of the mentioned service. A clear example of it is a great number of new private hotels in Tbilisi. We even have all grounds to suppose that the real volume of hotel service is often concealed.
The local government and self-government of Tbilisi promote the functioning of infant schools and comprehensive schools by means of financing.
By 2000, 195 public establishments (nursery schools) provided pre-school education in Tbilisi. Compared with 1995, their number reduced by 40 (17%).
The number of places for children in such schools is 34,0 thousands, up from 29,2 thousands in 1995. We imply an average growth of places for children per one school that totalled 124 in 1995 and increased by 174 (40,3%) in 2000.
Given the changeable number of children, infant schools are often not filled with children. In fact, in 1995, of 100 places in infant schools 84 were occupied. In 1996 it was 86, 58 in 1997, 67 in 1998 and 68 in 1999.
The mentioned situation was caused by the functioning of many private nursery schools in Tbilisi with better conditions than in public schools. Therefore, rich and middle layers of society take their children to these nursery schools. There are not many children in public nursery schools where even minimal requirements are not met.
In the beginning of 1970-71, 209 comprehensive schools with 169,1 thousands of students functioned in Tbilisi. In 1995, the number of schools rose by 15 (7,2%), but a number of students decreased by 14,5 thousands (8,6%). In 2000-2001, 216 comprehensive schools functioned in the capital city (by 3,3% more as compared with 1970) with 161,0 thousands of students that is 4,1% more than in 1995 and 5% less than in 1970 whereas the Tbilisi population grew approximately by 460 people.
The number of students per 1000 of population indicates at the negative social situation. According to this calculation, in 1970, 190 students of each 1000 of Tbilisi population went to schools, which is, approximately, by 38% less than 30 years ago.
The mentioned tendency is indicative of unfavourable demographic and social situation in the capital city.
We should say that the most radical changes were made in healthcare in transition period.
Nowadays, budget financing is replaced by programme financing in healthcare.
This means that a particular sum of money will be allotted from budget for the financing of particular programme. For instance, under 2001 budget, Tbilisi Sakrebulo allotted 10084,6 thousands GEL for the financing of municipal programme. The sum is distributed in accordance with different programmes.
Presently, 74 stationary institutions, 123 polyclinics, 16 health centres with 9294 medical personnel function in the capital city. At the same time, a number of private medical establishments has grown significantly in Tbilisi. The ratio of their service makes up 10-15%. However, the general public cannot afford medical treatment in such establishments. On account of it, municipal medical programme was launched. This programme envisaging for 70-80% service has not yet been implemented due to lack of financing.
Number of berths in Tbilisi stationary establishments has lately reduced on account of low level of load factor. Tuberculosis clinics are among the most populated ones, which indicates at hard living conditions.
We think that health reform failed to solve elementary problems. For instance, population lacks social service like free first aid and stationary medical aid.
From economic point of view, given the present level of revenues, 70-80% of patients can hardly afford to pay for this or that medical service. However, in case patients pay for the service, a professional doctor’s salary is 5% less. Thus, salary of medical staff is below the average limit. As a result of the reform, both parties (patient and doctor) are discontent.
There is a difficult situation in the sphere of culture. Management of culture – a lower organisation at Tbilisi Municipality – performs co-ordinating and controlling functions in such sites of cultural sphere as nine museums, eight theatres, 24 music schools, five art and one painting school, one high school of art, library association (with 58 libraries), I. Sukhishvili choreographic studio school, two ensembles, S. Zakaria college of traditional and modern art, four cultural and holiday parks.
The following statistics indicates at downward trend of cultural sites in Tbilisi. The number of theatres has lately fallen down from 14 to 8 (approximately 43%); that of museums fell from 14 to 9. 58 of 126 libraries function nowadays.
By 2001, 4792 people received budget financing in the sphere of culture in Tbilisi of which 5,12% were employed in music and art schools, 11% in theatres, 7,2% in libraries, 2,7% in museums, 4,4% in musical and cultural centres, etc.
The material and technical base of cultural and educational establishments has lately deteriorated due to limited financial funds of Tbilisi budget. It was impossible to repair buildings eonoauo of small financing.
Economic and financial crisis of the country has adversely affected sport sphere in Tbilisi. As a result of insufficient financing, a great part of sport bases turned out to be in a hard situation. State of human resources has deteriorated; qualified sportsmen and coaches have either shifted to another sphere or gone abroad. The sports department of the capital city manages 29 sport schools with 15 sportsmen and 1500 coaches. Tbilisi sport network comprises approximately up to 50 kinds of sport among them more than three tenth of them are not Olympic kinds of sport. Yet, our sportsmen have managed to receive world recognition in many of the sport kinds (f.e. rugby, chess, fighting, rock-climbing).
We consider it necessary to pay more attention to reorganisation of sport sphere in our city and settle problem of financing big repair of sport bases and sport inventory as the present amortised base does not meet modern requirements.
Being located in the frontier of Europe and Asia and serving as a transport corridor for the country, Georgia has always been a favourable place for the development of tourism. There are different kinds of climates here. It has rich cultural inheritance, good resorts and architectural monuments. The level of tourism in Tbilisi has significantly decreased due to latest events. The development of the branch has been impeded by acceleration of criminal situation in the country.
The strategy of sport city service and tourism of Tbilisi municipality is aimed at an active inclusion into the process of the development of international tourism. Tourism sites are being reconstructed, modernised and repaired with the purpose of developing investment offers. An investment register of tourist sites in Tbilisi as well as tourism guides, cards, travel booklets, etc. are developed in order to make it possible for Georgia to take part in travel exhibitions and fairs. The mentioned service lacks necessary financial means for performing these works.
Thus, according to the analysis of the branches of social infrastructure, there is a very difficult situation in transition period. Material bases of all branches of social infrastructure are in a very difficult situation, and great means are required for their restoration.