Month: May 2024

On May 1, Fady Asly, Chairman of the Executive Board of the Georgian National Committee of the International Chamber of Commerce, issued an open letter regarding the Foreign Agents Bill, warning that its enactment will stifle civil society and democracy, deter foreign direct investments, and disrupt the flow of international aid into Georgia.

ICC is the institutional representative of 45 million companies in more than 170 countries. According to ICC’s official website, “ICC members help shape ICC policies and, through the national committees alert their countries’ governments to international business concerns.”

According to Asly, CSOs are “crucial for healthy democracy” and constraining their operations by this bill “will lead to less oversight and more corruption, deteriorating the quality of governance.” He contends that adopting this legislation will be perceived as an “authoritarian shift,” damaging Georgia’s image on the international scene.

As for the legislation’s potential impact on the investment environment, the ICC Chair warns that it will deter the Foreign Direct Investments because “labelling NGOs as foreign agents will signal political instability and unpredictability.” He also emphasizes the risks of Georgia becoming subject to sanctions, and embargos.

In the letter, ICC Chair Asly also writes that the law will disrupt the international aid to Georgia, including because the West and international organizations condition their aid on human rights situation.

In addition to that, he also speaks of the legislation’s negative implications for innovation and technology and tourism sectors. Moreover, he argues that “increasing authoritarianism will lead to the emigration of skilled and educated Georgians, especially the youth, who might seek more democratic and open societies to live and work in.”

Fady Asly argues that the bill goes against the Georgian Constitution and and the country’s international obligations, worsens the polarization and hinders the cultural and educational exchange opportunities.

Meanwhile, on April 28, the Business Association of Georgia (BAG) expressed concern that “political processes unfolding in the country” may threaten “a stable and predictable business environment.” With this statement, BAG, which unites and represents many of Georgia’s larger businesses, expressed support for the government as public resistance to the “foreign agents law” is bringing thousands of Georgians to the streets.