The New Rights Stand for Tax Liberalization, pro-US Policy, Against Political Violence
Interview with David Gamkrelidze
Civil Georgia met with David Gamkrelidze, one of the leaders of the New Rights Party to discuss the pre-election plans and vision of this organization. Mr. Gamkrelidze commented on the economic plans of his party, saying the New Rights emphasize economic growth over promises for the improved welfare.
Mr. Gamkrelidze argued only healthy economy can deliver increased budgetary revenues, which should, in turn, give way for improved social conditions. The New Rights are also planning to unveil their version of improved taxation legislation in May this year.
On the foreign policy side, Mr. Gamkrelidze expressed his full support to the US position regarding Iraq, and said Georgia and the countries of the region are threatened by Saddam Hussein’s “despotic regime.”
Commenting the flare up of the political violence, the leader of the New Rights said he plans to actively cooperate with other opposition parties to achieve free and fair elections that will not be conducted under the threat of violence. He also said, the government is “putting up the show” when consulting the non-governmental organizations to improve the election legislation. A text of the interview follows:
Q: What is your party’s take on social issues?
A: Improvement of the social situation is a very complex issue. It would be very incorrect for any political party to declare that it would solve the social problems immediately after coming to power. Solution of the social problems is directly connected with increase in budget revenues, and this requires a number of reforms in many spheres, including economy, state administration, taxation, and education.
The defense and security sphere is also very important in this view. It is pointless to talk about some serious investment in our economy, unless we provide very firm security guarantees. We cannot achieve serious economic progress until there is a risk that the country might be bombed any day, or a foreign businessman is attacked, or internal conflict could emerge.
Concerning economic development in particular, I think that the private property must be a supreme and inviolable right. An economy, based on free competition, is the only right choice for successful economic development.
Free competition is not just an abstract idea. While the laws do not function and corruption flourishes, we cannot talk about competition or elimination of shadow economy. Today, share of the shadow economy in Georgia exceeds 80%, because this suits the governmental forces or any other person who is supposed to be fighting against it.
But only a fight against corruption will not bring us results, unless an entrepreneur is given incentive not to use double accounting and pay all the taxes. This [development of incentives] will not happen unless we liberalize the taxation. By liberalization I mean simplification of procedures for starting up a business, as well as tax reduction and simplification of the Tax Code.
Q: When you speak of the liberalized tax regime, do you foresee a preferential treatment for the local businesspeople?
A: I do not say that a foreign investor should have special rights or privileges. I know the foreign business very well and have my own experience of entrepreneurship. I have been running an insurance company for 10 years and had many contacts with foreign partners. I strongly believe that we must focus on our own resources, local investors, who make up the layer of the small and medium enterprises in our economy.
And that is where we need better administration. The state racketeering must be reduced, not to speak about the need to curb the criminals. To clean up the country from the criminals, to stop the state racketeering and make entrepreneurship a safe business, we must optimize the governmental structures, reduce and decentralize them and, most importantly, create a new bureaucracy, in the best meaning of this word.
This new bureaucracy shall not have financial or social problems, so that a governmental employee won’t have to be involved in corruption and will be motivated to do his or her job with dedication. The bureaucracy must not depend on political changes. It must not matter for the bureaucracy which political force is in power. This requires reduction of number of the governmental employees.
Only after solving all these problems, we would be able to talk about significant increase in budget revenues, healthy and transparent economy and start working for the better future.
We are not a political force that urges the government to undertake the social responsibilities. This would be a second stage of the policy we want to implement.
Q: Do you have particular suggestions regarding liberalization of the Tax Code?
A: Yes, but I do not want to present them prematurely. In the beginning of May we will have a major party summit and approve the party’s election program, which will reflect all our proposals in the details, including exact size of taxes and the [vision of] the entire taxation system. All our ideas are aimed at improving the business environment and stimulating the taxpayers to pay their taxes.
Q: What is your opinion on the US Administration’s policy towards Iraq? How hard it was for our president to openly express support to the US and to which extent you see Georgia involved in the war against Iraq?
A: After September 11, Americans realized that there is no place in the world completely immune from the terrorists or the weapons of mass destruction. The United States is the only country, which has sufficient military and economic power to fight this threat. Many other countries either are not capable of fighting or simply do not want to.
Hence, I completely share the concerns of the Americans and fully support Washington’s course towards Iraq. I also understand very well concerns of the US regarding uncontrolled places in the world, including our Pankisi gorge. Tskhinvali and Abkhazia are also uncontrolled regions, with perfect environments for terrorist activities.
It is imperative to realize that Hussein, Bin-Laden or other alike are a threat not only for America but for the rest of the world too. Iraq is much more dangerous for its neighbors, such Georgia and Europe.
Although our party criticizes President Shevardnadze’s policy, I must state that support to the United States was the only right decision, while many other countries, such as France, Germany and Russia were against the war. They not only did not support the US, but also tried to hinder attempts of the Americans to disarm Saddam Hussein.
Considering all this resistance, I think our support is important for the US, despite our very limited capabilities.
Georgia must do its best to support the US, whether it would be use or our airspace or airfields or something else. By this we must prove that we can be reliable partners and do so not only because America is our friend, but also because we too are against Hussein’s and other despotic regimes.
I cannot tell how useful our bases could be, but nevertheless we must be prepared to provide any necessary assistance. It is up to the Pentagon to decide whether or not our bases would be used.
Q: How would you comment on recent increase of the political violence in the country? How dangerous such situation could be on the eve of the upcoming parliamentary elections?
A: The most problematic issue, which I have emphasized during my visit to Washington D.C. last December, is that we need firm democratic institutions to steer the country out of the crisis. Effective economic development is possible only in a democracy.
The elections will be the biggest test for our democracy. It will not be an exaggeration to say that results of these elections will have a historic importance for us, because this would be the first step towards post-Shevardnadze era in Georgia. These elections will define our future for many years ahead.
At the same time, the President and his administration are extremely unpopular. Thus free and fair elections will likely sign a political death warrant to this government, the Citizens Union and all other parties in the ‘orbit’ of this government. And these people do not want to give up their power, money and influence.
That is why they use force, crime, arms or even the official structures to intimidate and blackmail the opposition, to discredit it and to divide it. It is a fact that the “power ministries”, such as the Interior Ministry, primary tasked to fight crime, have become a tool of political pressure.
If we do not force the society to realize the threat, the government will make everybody believe that assault on a political party or beating a member of the Parliament is allowed. The government might make the whole political spectrum look like a group of criminals and convince the foreign partners that the only force in Georgia, which might ensure stability is the current government. Ultimately all this would lead to falsified elections, and the West will not object. By these violent and unjust actions the government will be able to maintain the power.
All the meetings [of the government officials] with the non-governmental organizations to improve the election system are just put up for the show. In fact the government wants to compose the Central Election Commission with people, who would allow the result of the elections to be drawn up at the State Chancellery [President’s administration] even before the elections take place.
In such case our party will not have other choice but to organize peaceful street meetings and manifestations, because it would be pointless for a party not only to participate in the elections, conducted in violence, but to exist at all.
Therefore we are conducting active negotiations with the National-Democratic Institute of the United States together with other opposition parties, with purpose to eradicate political violence with joint efforts. These consultations do not mean that we will form an election block with other party. We are going to participate in the elections independently. But the opposition is uniting around the one common goal – fair and democratic elections without violence.