At today’s press conference Liberty Institute presented set of proposals regarding new Law on Local Self-Government currently discussed in parliament. The proposals include increase of size and population of a self-governing entity, definition of weight, division of governance system and functions and formation of stable financing system.

Liberty Institute’s Giorgi Meladze noted that population of a self-governing entity should be 45-50 thousand—a figure optimal for economic efficiency and infrastructure projects implementation. “According to number of research carried out by international NGOs, one can speak about economic efficiency only if number of population exceeds 45,000. He also added that increase of self-governing entities strength would facilitate advancing of democratic reforms.

According to the model proposed by Liberty Institute, local self-government should consist of one level where competencies will be sharply divided by representative body, the sakrebulo and the executive.

“The law should be clear about competencies that fall under jurisdiction of the central government and those who are subject to local government jurisdiction,” Akaki Minashvili noted.

For increasing efficiency of local self government, education sector, problems of unemployment, law enforcement and number of other competencies should go to local government.

The real decentralization is impossible without effective financing system. According to Liberty Institute’s model, up to 40% of tax revenues should be allocated to discretion of local governments. In such case, local budgeting will not be dependent on decisions of concrete bureaucrats and would increase stability in the field.

“Local governing entities should be strong enough to feel independent from central authorities,” Meladze concluded.