USAID Report: Georgia’s CSO Sustainability Index 2022

In October 2023, USAID published a report on Georgia’s Civil Society Organization Sustainability Index 2022, shedding light on the complex dynamics of Georgian civil society work and the challenges they face. The report was produced in partnership with the United Nations Association of Georgia (UNAG), a local partner. [UNAG is a parent organization of Civil.ge]

In 2014 Georgian civil society sector’s combined sustainability score stood at 4.0, the same as in 2021. The CSO Sustainability Index uses a seven-point scale with 1 representing the highest and 7 the lowest level of sustainability.

General Context

The report emphasizes the impact of Russia’s war in Ukraine on Georgia’s domestic and foreign policy, highlighting strong public support for Ukraine and the government ‘policy of restraint’ towards Russia. The report notes that this stance raised doubts about Georgia’s alignment with the EU’s position against Russian aggression and led to concerns about the government’s hostile language towards Ukrainian leadership.

The report also examines the process of Georgia’s EU membership application, the European Council’s recognition of the ‘European Perspective for Georgia,’ and the European Commission’s recommendations for candidate status. It highlights the influx of Ukrainian refugees and Russian citizens into Georgia, which has caused increased political polarization about the country’s political trajectory and Western integration. The report points out that the Russian influx had a notable impact on economic activity in Georgia, while also raising concerns about the country’s level of dependence on Russia.

According to the USAID report, “despite the drive to enter the EU, the state of democracy and civic space in Georgia continued to deteriorate in 2022, reaching a low point in early 2023 when the ruling party introduced the “foreign agent” law—a copy of a repressive Russian law and the most overt attack on civil society and freedom of expression in Georgia to date.” The report notes that the introduction of the Russian law in Georgia led to a significant domestic political crisis, with mass protests in Tbilisi against the initiative, as it raised concerns of a shift towards autocracy. Ultimately, the ruling party withdrew the draft law in March 2023 due to public and international pressure.

The report also addresses the abolishment of the State Inspectorate in January 2022 leading to the establishment of new agencies. It explores the emergence of anti-Western disinformation in Georgia during the Ukraine war, with narratives emphasizing supposed Western conspiracies, the potential of a ‘second front’ in Georgia, and Russian military retaliation. These narratives were actively promoted by various groups, including far-right entities and ruling party leaders.

In 2022, the situation in the occupied regions of Georgia, Abkhazia and South Ossetia, remained tense. Russian disinformation exploited the idea of a ‘second front’ in these regions, stoking fears of a possible Georgian incursion.

Some of the findings regarding on the sustainability of the CSOs

“In spite of the challenging context, overall CSO sustainability remained unchanged in 2022. The legal environment and financial viability both deteriorated slightly during the year, while service provision improved slightly. All other dimensions remained unchanged. Local CSOs remained at the forefront of all major social, political, and economic developments in the country, providing assessments, opinions, services, and solutions to a wide range of clients, and the sector continued to actively advocate for reforms and improvements in human rights, accountable governance, and other key policy areas” report stresses.

The legal environment governing the work of CSOs deteriorated in 2022, setting the stage for even bigger declines in 2023, says the report. Recent changes to the Law on Entrepreneurship require organizations with NNLE status to update their information and, in most cases, to re-register, while the draft law on “agents of foreign influence” threatened to undermine the independent operation and viability of the civil society sector at large. “While CSOs generally find the spirit of the new regulations acceptable, they criticize the government for its complete disregard of public consultations in the process of drafting the law. Given the government’s escalating hostility towards CSOs, some experts also fear that the government may misuse the new regulations to selectively deny registration or re-registration”.

Civil society organizations (CSOs) in Georgia face challenges although the generally operate without government interference. The Law on Assemblies and Demonstrations, which has been criticized for its vagueness, allows for the immediate termination of ongoing assemblies in the event of “massive violations”, without specifying what constitutes such violations. This ambiguity can lead to arbitrary detention and the use of force against protesters.

Financial viability deteriorated slightly in 2022, driven by the declining availability of funding for local CSOs and crippling inflation. In addition, the introduction of the draft “foreign agent” law deepened the distrust between CSOs and the state, making it less likely that CSOs will apply for government funding in the future.

The report says CSOs that although can receive financial support from both local and international donors, financial viability remains a core challenge for Georgian CSOs, regardless of their location or size. “Most CSOs struggle to diversify their sources of income, and many depend on a single donor, which undermines their long-term sustainability,” reads the report.

The financial management and compliance systems of civil society organizations (CSOs) in Georgia vary in quality. Larger and more established CSOs with sufficient resources can afford advanced financial management systems and have experienced, qualified staff. However, recruiting and retaining experienced financial staff, especially for CSOs outside the capital, is challenging. CSOs generally disclose donor information and project priorities but conduct few annual audits.

In 2022, the organizational capacity of civil society organizations (CSOs) in Georgia remained unchanged. Those CSOs based in Tbilisi continued to have an edge in terms of organizational strength, benefiting from greater access to donors, networks, and resources. Local CSOs, driven by their values and commitment to serving their target communities, however faced challenges stemming from donor dependence and project-focused funding. These challenges made it difficult for many, particularly those operating outside the capital, to engage in long-term strategic planning.

Technical advancement continues to be a challenge for CSOs, especially those operating in the regions. Due to the lack of diversified funding opportunities, a very limited number of organizations are able to purchase new equipment on a regular basis. Some organizations struggle to retain office spaces.

CSO advocacy remained unchanged in 2022. CSOs’ participation in decision-making processes both at the central and local government levels is ensured by law. The right to participate includes the ability to lobby, petition, initiate laws, attend parliamentary sessions, and participate in working groups and meetings, among other actions.

However, CSOs continued to face challenges in exercising these rights during the year, including the continuing disinformation and hate campaign against them and the decline in cooperation with the national government. Despite government-imposed barriers to the substantial involvement of civil society in policy making, CSOs continued to influence national discussions and political agendas both locally and nationally.

In contrast to their exclusion of civil society in decision-making on political issues, both the ruling party and the executive branch remained mostly open to productive collaboration with CSOs in non-political areas, such as infrastructure, environment, education, healthcare, and animal rights. Partnerships with local governments are also generally productive only in non-political areas, as the local authorities remain heavily dependent on Tbilisi in their decision-making. Decentralization has been on Georgia’s political agenda for two decades, but without any meaningful success yet.

The public image of the CSO sector in 2022 saw both positive and negative developments, resulting in an overall unchanged perception. CSOs faced constant attacks and disinformation regarding their funding, motives, and alignment with national interests. However, public opposition to the “foreign agent” law demonstrated recognition of CSOs’ contributions to Georgia’s civic life. Local CSOs earned a reputation as reliable international actors, receiving support from allies like the US and EU in the face of domestic attacks.

Media coverage of CSOs primarily focused on political debates, including EU integration and judicial reform. Government-critical media sought CSO commentary on major political processes, while government-friendly outlets engaged in smear and disinformation campaigns against leading civil society groups.

Also Read:

• 10/09/2015 – Georgian CSOs Sustainability Index Unchanged in 2014

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