The Institutions of State-agribusiness Relations in Georgia

This dissertation explores the nature of the institutions of SBRs and the institutional prerequisites for the emergence of strategic SBRs in Georgia. Hence, this research contributes to the academic debates on the role of the institutions of SBRs in the process of state intervention. Furthermore, this dissertation contributes to transition studies, regional studies, institutional economics, developmental studies, and empirical studies of state-led economic activities. The dissertation analyses the nature of SBRs in Georgia through the lens of the New Institutional Economics (NIE). Consequently, the framework of the institutional characteristics of strategic SBRs is formed based on the institutionalist approach to strategic SBRs. This framework is applied to analyse SBRs in three cases of state intervention in the food and agricultural sector of Georgia: Preferential Agrocredit (PA), Plant the Future (PTF), and Co-financing Agro Processing and Storage Enterprises (CAPSE). The PA project seeks to stimulate primary production, food processing, and storage by providing cheap, long-term, preferential loans. The PTF project co-finances investment in primary agricultural production to increase production and export capacity. Finally, the CAPSE project aims to stimulate the food processing industry via provision of grants, preferential credits, and co-financing investments. The key units of study are the formal and informal rules of interaction between the state and agribusinesses and their enforcement mechanisms. The thesis employs a qualitative research strategy for the systematic collection, organisation, and interpretation of the data. Data from 39 interviews, documents on relevant regulations and laws, and the reports from the international organisations are triangulated to address the research question.