In view of the constituency relationship, stimulating good economic governance has been a priority in the support of the Netherlands to Georgia from the beginning. The Multi Annual Strategic Plan (MASP) as well as further elaboration of the Embassy’s strategies point towards a need for a gradual shift of emphasis from good economic governance into good economic and good political governance.

n the current MASP (for the years 2006 – 2009) the following priority areas have been chosen for bilateral assistance to Georgia:

1. Strengthening international rule of law and respect for Human Rights
2. Promoting security and stability, effective humanitarian relief and good governance
3. More prosperity, less poverty

Under these priority areas, ODA assistance is provided to the following activities.

Ad. 1. Strengthened international rule of law and respect for Human Rights

In 2006, the Embassy supported the IOM in their effort to combat trafficking and to create sustainable information systems within NGOs dealing with trafficking issues.

Title	Implementing body	Project period	Project costs
Support to the Reform of the Juvenile Justice System in Georgia	Unicef	July 2007-July 2010	903.614 USD
Prevention of trafficking human beings, phase 2	IOM	2004 - 2006	278.000 USD

The Embassy anticipates financing activities in this particular area of the rule of law and judiciary sector from 2007 onwards.

Ad. 2 Promoting security and stability, effective humanitarian relief and good governance

The focus of support has been on promoting good governance (with a particular emphasis on Public Finance Management) and security and stability. 

2.1. Public Finance Management

The Netherlands – in close cooperation with the WB, DfID and SIDA – has been involved in the support to Public Finance Management institutions and policies of the Georgian government.  In 2006, a pooled fund was established by which the resources of all 5 partners (donors and government) were bundled to provide technical assistance focusing on building capacity with key stakeholders in the public sector. The main objective of this particular project is to enhance governance through the strengthening of institutional capacities of the key agencies within the public sector in order for these agencies to effectively and efficiently use public resources as well as to improve accountability in the use of public resources.

Key components are:

1. MTEF and Budget Management;
2. Treasury Reform and Budget Execution;
3. Human Resources Management Information System and
4. Public Accountability and Oversight of Public Financial Management (support to the Chamber of Control).

Title	Implementing body	Project period	Project costs
Strengthening the Georgian  Parliament in public Finance Management Issues	East West Parliamentary Practice Project	July 2005 – October 2006	335.000 USD
Support to the Anti Corruption Strategy (GEPAC)	Council of Europe	Sept 2007 – August 2009	700.000 EUR
Support to Public Sector Financial Management Reform Project	Pooled financing with WB, DfID, SIDA and the Ministry of Finance	2006 -2010	1.800.000 EUR

2.2. Security & Stability

Ad. 3. More prosperity, less poverty

In 2007, the Netherlands has co-financed the Poverty Reduction Support Operation (PRSO-III) of the World Bank with an amount of  € 2.500.000.

This programme aims to improve:

1. the financial accountability and effectiveness of the public sector;
2. electricity and gas supplies;
3. the enabling environment to further develop the private sector and
4. social services with a particular emphasis on health and education.