ONCE UPON A TIME THERE WAS GRANT
By. Sophico Sichinava
New words and expressions have come in speech after independence was declared in Georgia (declared independence).
One of them was grant. This word is often associated with a present. Grant is a usual economic category, economic phenomenon when one country finances particular spheres and processes of another one. Naturally enough, there arises a question: why does a certain western country enter another country in the scheme of inner financial distribution and why does it grant this country particular some of money?
If we take into consideration the fact that there is nothing gratuitous in life, we will understand that grants are issued on certain conditions, too. In order to clear out this question, we must answer another one – where are sources of grants as economic-political phenomenon and what are its tasks and aims. Secondly, what is the main motive of obtaining a grant? Is it because a person is a Georgian citizen and has some business in the country or just because he is a talented man? The third question is the most unclear and unacceptable – why does a Citizens’ Union deal with allocation of grants?
I think the President is interested in grants. He tells donors not to issue grants until a grant law is passed. It is not accidental. If these grants were spent for right purposes, the President would not speak so publicly about them. We do not say whether Shevarnadze likes the way grants were spent, but we mean that grants are not spent for the planned purpose. Based on the materials of journalist anticorruption research organization, more than 2,5 billions of grants and credit have been realized in Georgia for the last eight years of which 40% fall at the share of grants. 80% of this 40% have been taken by Saakashvili wing.
Of course, if grant were a present, it would be called a present. The matter is that it can hardly be called a present. It is an amount of money designed for the performance of this or that job. As a rule, grants are issued on international scales as well as within a country. A scientist can invent a preparation; a certain firm may take an interest in the in-depth research of this sphere and issue him a grant. Analogically, a government of a certain country that is interested in the non-spread of high-technology weapons, can choose to finance physicists and chemists of other countries, f.e., Russia. The total volume of such grants amounts to 300 million US dollars in Russian economy. America gives Russia 300 million dollars of which 150 million dollars goes on nuclear personnel. The USA pay them salaries to prevent them from selling their knowledge to Iran. The rest 150 millions are designed for the maintenance of American nuclear technics and technology. Otherwise, it would be difficult to imagine maintenance of this technics and technlogy because weapon might get into the hands of strategic enemy of America that threatens its oil and, of course, economy. It can cause redistribution of world economic balance against America. The above-mentioned is an elementary truth. Proceeding from this, grant is not a present. It is a purposeful financing meant for a particular country and for people of these countries who perform particular job. It is important to answer to the question – what job does it imply?
The procedure of obtaining a grant is not also a clear one. A person must submit a project in order to receive a grant. If the project is approved, a particular amount of money will be assigned for its implementation. It is difficult to imagine that one could elaborate a good project while another person could write a bad project. The society wishes to know what being a good project means, what use it brings to the country and what bad projects failed to do for the country. One can build a whole theory around this question – one should be a physicist or chemist in order to have the chance to receive a grant. Strange as it is, grants were obtained by unknown and untalented people. What is the principle of this differentiation when one printed and electronic media receives a grant and the other does not? Naturally enough, the West finances private structures, i.e. private market mechanism. Yet, why is not it available to simple businessmen? There are popular funds; most of them are closed now. They make useful business – free press and Internet. No one argues about it. Why does it happen so that movement of a great stream of grants in Georgia depends on the desires of several people? Representative of one of non-government organization “Association of young financiers and businessmen” said that no matter how good the project of a non-government organization is, 90% issue of grant depends on the recommendations of influential non-government organization or political force. Many of them keep part of this grant, but it is a separate topic for conversation.
It is very difficult to look into the philosophy of grants. For instance, grant is issued to a researcher or a scientist in Russia, but in Georgia 90% of grants is issued to Georgian citizens. We imply isotope institute and other similar establishments that fortunately receive some assistance from the West. Today, they function and bring a serious export potential to the country. These cases are not numerous. However, we imply the great wave of grants that would make quite a big book. Information about these grants is not available to the public. Can anyone answer the question – what use did they bring to the country other than defending someone’s interests.
One says that he is very qualified; he knows foreign language and receives a salary of 4 thousand dollars per month. Yet, they did nothing special and useful for the country. Despite it, he thinks he has the right to speak to a certain 170 GEL official with a haughty, arrogant air because this official takes bribes in the country where people’s pension is 14 GEL and salary is 25 GEL. Yet, there are also many highly qualified specialists among them.
Grant recipients do not usually declare the purpose of receiving a grant, though the answer is simple enough – they receive grants for particular information. The information is so disembodied that it does not contain anything in clear form. When a certain country takes an interest in some region of another country, it starts to study this country – traditions, customs, territory, population, demography, perspectives, economic potential, etc. The best way of finding and processing this information is grant. Where before this work was done by Marco Polo and Miklukho Maklai, now it is performed by the starving population our country. They will provide any information to the parties concerned for 100-200 dollars. Opponents may say – there is nothing bad in it that our foreign partners will learn truth about us. There would be nothing bad in it if the matter would be confined to the provision of information only. There would be nothing bad if someone would take an interest in cartography and would appropriate funds for this purpose. Yet, the work is not only confined to the provision of information. People who do this work do not, probably, have national conscience or national way of thinking. Europe united, but France remained France, Germany remained Germany, etc. Issues of national economy, national business, businessmen, safety of national economy are retreating to the background. It is difficult to find a difference between these people and Komsomol members that grew up in Russia. Today, they grow up in another environment. Cosmopolitan interests are more important for them than national ones.
Struggle between cosmopolitism and nationalism was called globalization process. It started in 18-19th centuries when the process of creation and formation of serious transport infrastructure and transport corporations interests began. It is a new way of colonization – not by force, but by economy. It is common knowledge that any strong western country that wishes to invade a small country tries to take control of energetics that s the ridge of safety afterwards transport and education. Most of the grants were received in this sphere. After taking control of these spheres, western countries will turn us into puppets. Naturally enough, there is no place for Georgia in the world policy where struggle of dinosaurs is going on. What is Georgia? It is the place, territory where a pipeline passes. However, its interests are hardly considered. The ideal situation is when these interests coincide.
Has anyone wondered why, at least, small part of million dollar grants in Georgia was not designed for the recovery of “real sphere”. They support foreign investors with the same funds. If they took care of Georgia, they would build, at least, one cannery factory for 20 millions and would support agriculture. We do not speak of launching Kutaisi plant where production of imported cars “Sony” is well organized. There is a development project as f.e. “Serma” . It was called Georgian Marshal’s plan, but it is not sufficient. Lectures and seminars, consultancy and consulting holds a great part in the grants. It would be better to send this sum to the independent centralized fund whose leaders would be western experts They would govern economy under the principle KFW fund works in Germany. Education is financed in these countries. Students are financed during the period of study. After they begin work, the money is returned to the fund and is used for financing other students. It is unclear why grants are issued in accordance with the consumer principle in our country?
Mate Melia (expert of Macro Micro Economics) – a population growing up in our country will serve as a foothold for someone. Georgia has not yet recovered after the Russian colonization and does not know where it dashes. There is the only way – western market valuables, democracy and close ties with the West. Yet, we must take into consideration our national conception, economic, politic, educational, and cultural one. Nothing stands in the way of globalization because it is a way of dialectic, historical development. We mean the way of preserving our original face in the globalization process. Naturally enough, no one refuses grants, but the process of obtaining a grant must become more open and transparent one. It must not serve anyone’s political interests; instead it must serve interests of development of the country and society. Georgian economy resembles a cow that has been milked for 8 months: its udder has dried, but we continue to squeeze milk out of the cow. Yet, there is another way out – in reproducibility and real injections. Therefore, grants play an important role in this sphere. Similar to an economic phenomenon, grant represents financing. We must learn from the biter experience now. There should be some mechanism in the grants law that would determine the way of issuing grants through the mediation of a special independent bureau, but not a close organ.
Approximately a month ago a grants and humanitarian aid law was submitted to the Parliament. This law was prepared by the ministry of finance.
Shalva Natelashvili (leader of Leibourist party) – The notion of bribe in inner law is similar in meaning to the word grant in international practice. It is used for quickening the globalization process in order to deprive state of sovereignty, weaken its economy, traditions, religion, culture, and science. Million dollars worth scientific inventions are sold for nothing. The owner of the grant tries to pursue his own policy with a particular group no matter whether it is a government or non-government grant. Grant is dangerous from the viewpoint of several sides, legal and political ones. It often serves as a means of “black” money laundering. Under the foreign laws, grant is not liable to taxes. Politician forms a non-government organization under his own roof and receives a grant. You can not find faults with politician de-jure, but they continues to receive money in this way. The classic example of it is Citizens’ Union. Those who received solid grants can justly be called political descent, fifth column in Georgia.
There is Friedrich Ebert fund that represents a branch of social-democratic party of Germany. It is financed by budget and aims at the support and development of left-wing parties. Four years ago I met representative of this fund in Bonn. They promised us to open the fund in Georgia. They fulfilled their promise and appointed a certain lady chief of the fund. This fund and leadership has obeyed the orders of Citizens’Union. They ignored left parties. When in 1996 Saakashvii passed a grants law, I remember his making a loud statement that this law will signify a process of recovery in Georgia and that we will receive money for helping thousands of poor people. The law has not envisaged for any control mechanism on purpose. There has not also been mentioned the necessity of single state register to enable each citizen to obtain information about who received grants and what purposes they were used for. All this sum was used by Citizens’ Union. It is difficult to blame it of corruption because these funds were not taken from budget. However, they received much more funds in the form of grants.