Financial analyst Giga Bedineishvili has sharply criticized the government’s plan to create a state-owned company for road maintenance, calling the initiative “a catastrophe” and warning that it reflects a shift toward state capitalism.
The government is preparing legislation to establish a new public company that would take over road maintenance functions currently carried out by private contractors through tenders. Officials argue the move will improve efficiency and allow faster response to infrastructure needs, with an estimated annual budget of around 30 million GEL.
Bedineishvili, however, argues that transferring such functions from the private sector to a state entity distorts competition and weakens the business environment. He claims the policy effectively displaces private firms from the market, describing it as a textbook case of “crowding out” in the economy.
He also suggested that beyond ideological mistakes, such initiatives may carry systemic risks, including potential avenues for opaque decision-making. According to him, expanding state involvement in commercial activity risks further shrinking the role of private enterprise in Georgia’s economy.
