Gross domestic product at 1 January 1999 was 6.849 billion lari.

Per capita annual income at 1 January 1999 was 560 lari, of which 438 lari was in cash and 122 in kind.

The minimum wage (from 4 July 1999) was 20 lari.

Average monthly inflation was 0.85 per cent in 1998. Monthly inflation in December 1998 was 12.1 per cent.

External debt at 1 June 1999 was US$ 1,875.8 million.

Internal debt at 1 January 1999 was 556.9 million lari.

Human rights commissions were set up following the first local elections in the history of independent Georgia, held in many "sakrebulo" (local government bodies) in November 1998.

At the executive level, human rights issues are handled by an office for human rights under the Deputy Secretary of the National Security Council of Georgia (an advisory body attached to the Office of the President of Georgia).

The main instrument for protecting human rights and freedoms is the judiciary, consisting of the ordinary courts (district/municipal and regional courts, the supreme courts of the autonomous republics and the Supreme Court of Georgia) and the Constitutional Court, the body that monitors compliance with the Constitution.

An important role in the Georgian human rights protection system is played by the constitutional institution of the People's Advocate (the ombudsman), which is an independent authority with considerable powers and subordinate only to the law.

3. In the initial report it was stated that the Supreme Court had recommended that ordinary courts should, with immediate effect, apply international human rights standards in their proceedings. Since the International Covenant on Economic, Social and Cultural Rights, on ratification, became a constituent part of Georgia's domestic legislation, parties to legal proceedings are entitled to invoke its provisions. It should be noted, however, that a precedent of this nature has not in practice been set because of the generally low literacy level of the public and their lack of understanding of legal matters.

4. The text of the Constitution of Georgia is appended to this document in English, Russian and Georgian so as to provide a better understanding of the rights and freedoms it guarantees.

5. In May 1998 Georgia became a party to the 1951 Geneva Convention and the 1967 Protocol relating to the Status of Refugees.

6. The question appears to refer to the optional protocol to the International Covenant on Economic, Social and Cultural Rights granting to citizens of States parties the right to appeal to the relevant United Nations bodies when their rights under the Covenant are violated. The position of the Georgian Government on this point is clear: it supports any initiatives to extend and strengthen guarantees of human rights and freedoms, particularly as Georgia is already a party to the equivalent Optional Protocol to the International Covenant on Civil and Political Rights.

8. As for circulation of the Covenant, 1,000 copies of the authentic text were issued in Georgian by the parliamentary authorities and another 1,000 copies were published by an NGO. The President of Georgia in a Decree, has ordered the Ministry of Finance to make provision in the 2000 budget for the publication of various basic human rights instruments, including the Covenant.

10. The task of resolving the conflicts surrounding Abkhazia and South Ossetia remains one of the most thorny problems for the Georgian authorities and people as a whole. Despite Georgia's efforts to give the negotiations a dynamic and constructive turn and its readiness to reach reasonable compromises, intransigence on the part of the leaders of the self-proclaimed republics has so far prevented any real progress towards a political settlement. The greatest stumbling blocks are the political status of Abkhazia and South Ossetia and the repatriation of displaced persons, numbering several hundred thousand, the vast majority of them Georgians.

This deadlock is obviously affecting the economic and social situation of persons living in these areas, the conditions undoubtedly being the worst in Abkhazia. In mid-1999, the State

Statistical Department of Georgia and its equivalent in the Abkhaz Autonomous Republic compiled a publication entitled "The Social and Economic Situation in the Abkhaz Autonomous Republic, 1993-98", from which relevant data are reproduced below.

As a result of ethnic cleansing by the Abkhaz separatist regime, the present population of the region is 160,000 to 200,000, or 30 to 38 per cent of what it was before the conflict began. Abkhazia's economy suffered enormous damage during the military operations, during which thousands of houses, schools, cultural and health centres and other edifices, as well as tea and citrus plantations and orchards, were destroyed. The Ministry of Economy of the Abkhaz Autonomous Republic calculates that the material losses suffered by the economic and social infrastructure of the region between 1992 and 1998 amounted to approximately US$ 10 to 11 billion. Abkhazia has lost its traditional industries and become an insular, self-dependent economic unit with poor external trade links and an economy dominated by agriculture and trade. Industry and the other branches of the economy have disintegrated. There are virtually no agricultural produce processing plants. Up to 30 per cent of the output of the Inguri hydro-electric power station goes to Abkhazia, which can therefore provide its population with 2.2 times more electricity than the rest of Georgia. There are signs of recovery in the wood-processing industry, and wood is being exported, mainly to Turkey.

The above information gives an idea of the Abkhazian population's situation in respect of Covenant rights; it can be regarded as a cause for serious concern. The situation in South Ossetia appears to be slightly less alarming because of the comparatively smaller scale of the damage done, close economic links with North Ossetia (part of the Russian Federation) and continuing contacts with the rest of Georgia, which include trade and economic links. The Government of Georgia, in collaboration with the South Ossetian authorities and with assistance from the local UNDP team, is making an effort to lay the foundations of economic recovery in the region through a two-year rehabilitation programme.

The restoration of Abkhazia's economic potential depends entirely on progress towards a political settlement and resolution of the issue of the repatriation of displaced persons. Only then can the question of lifting the economic embargo imposed against the self-proclaimed republic by decision of the CIS Summit be tackled.

12. The Refugees Act does not apply to Meskhetians, who were forcibly resettled in 1944 and whose legal status has not yet been defined. Legislation and other regulations intended to resolve this matter are being drafted. However, the Meskhetians already enjoy full exercise of the right to education and considerable privileges in that respect.

Under the Education Act, all citizens, including displaced persons, have the right to education on an equal footing. The absolute majority of displaced persons of school age in Georgia are continuing their education. Some of them are studying in ordinary schools offering a general education and others in special schools set up for the children of displaced persons. Under the President's Decree of 25 September 1996, the tenth- and eleventh-grades, for which a charge is normally made, are free for the children of displaced persons.

Measures have been taken in recent years to give effect to the educational rights of the forcibly resettled Meskhetians. For example, a first school has been set up in Ianeti, Samtredia, which has a large concentration of Meskhetians. Special study plans and programmes have been produced for the children, including intensive courses in the Georgian language. Meskhetian pupils, like the children of displaced persons, are as far as possible provided with free textbooks and the other school supplies they need.

Improvement of women's economic independence in market-economy conditions;

Measures to combat increasing poverty among women;

Adoption of legislation giving effect to the rights of women, including the right to work, on a non-discriminatory basis.

Unfortunately, implementation of the National Plan is proceeding very slowly, mainly because of a shortage of budgetary funds since the country lacks the necessary resources. In August 1999, the President of Georgia promulgated the Order on Measures to Strengthen the Rights of Women in Georgia (appended).

14. Georgia's Labour Code prohibits the employment of women in unhealthy and dangerous conditions and in certain kinds of underground work; these various jobs are listed in the relevant legislation. The employment of women for night work is subject to restrictions in that pregnant women and mothers of children under 3 years of age may not work at night or do overtime, while women with children from 3 to 12 years of age are allowed to work overtime only if they agree to do so (arts. 156 and 157). Pregnant women and women with small children also enjoy a large number of privileges under the Labour Code. In general, it may be said that the restrictions on women's work are dictated only by concern for their physical and reproductive health and in order best to protect mothers and children. They are in no way intended to restrict women's opportunities on the labour market and are in the nature of positive discrimination.

In 1997, there were 165,000 unemployed, of whom 44.9 per cent were women. The over-25 age group accounted for 82 per cent.

Figures for the second quarter of 1999 show that there were 267,700 unemployed, with just under 43 per cent of them women. The proportion in the over-25 age bracket had risen to 84 per cent.

Unemployment has to some extent affected all economic sectors, largely as a result of difficulties associated with the transition period. Sociological studies and the figures of State employment agencies indicate that most of the unemployed have a higher education, and that their knowledge and experience are not in demand in the changing labour market. The need to retrain is perceived as a loss of social status in many cases, as most job vacancies are in the services sector or involve manual labour.

16. The draft State employment programme for the period to 2005 has been drawn up and is to be approved in the near future.

18. Wage levels in the public sector are fixed when the State budget is adopted by Parliament, in accordance with the proposals made by the ministries responsible for economic matters. Since the budget is very limited, public-sector wage levels depend directly on the revenue earmarked for the purpose. It should be noted that these budgetary items are in the protected category, so that they cannot legally be reduced no matter how the budget is implemented. The wage level also depends on the number of persons employed in the public sector. In recent years, wage increases in this sector were achieved by improving the efficiency of administrative structures.

19. At the present time, a single wage grid is being drawn up for all categories of public-sector employees. The process is complicated, however, by the need to reform the wage system inherited from the Soviet Union, as well as by recent political infighting and current economic difficulties. Since it was necessary first of all to draft a considerable amount of legislation and ensure the country's internal stability, it was decided initially to introduce a special wage system for persons employed by legislative, law and order and security bodies. Wages for these categories are on average from one and a half times to twice higher than the index for the public sector as a whole.

20. In accordance with the "Basic guidelines on wage resolution, 1996-2000", measures have been drawn up to increase public-sector wages and recommendations have been formulated concerning wages in the private sector. In November 1997, Parliament adopted amendments and addenda to the Labour Code, including a special section on wages and another on the minimum wage. A new edition of the Labour Code is being prepared. In addition, Parliament adopted the Collective Contracts and Agreements Act in December 1997.

21. Against the backdrop of the stabilization process and the development of the necessary legal basis, a certain amount of progress has also been achieved in labour protection matters. However, employers, enterprises, organizations and establishments, irrespective of their legal status and form of ownership, adopt a negative attitude to measures to prevent work-related injuries and accidents, as well as to the provisions of labour legislation and labour protection in general. This makes it very difficult to ensure a safe and healthy working environment, as shown by an analysis of violations revealed by the labour inspectorate and investigations of accidents.

In 1997, 39 work-related industrial accidents occurred, resulting in the death of 29 persons; six of these accidents involved more than one person. In 1998, 49 accidents were recorded, five involving more than one person, and 50 people died. In the same period, 76 people were injured in some way or another.

Labour inspectorates subordinate to the Ministry of Social Security, Labour and Employment and established in conformity with ILO conventions to monitor compliance with labour legislation and labour protection standards, work with all enterprises, plants, organizations and establishments to improve working conditions and safety. The State labour protection system is to be improved by a series of measures, including:

Development of an appropriate series of basic standards;

Organizational improvements and optimization of the State labour inspection system;

Training and certification of production personnel, including managers;

Implementation of a modern statistics recording system, etc.

The Trade Unions Act (art. 5.1) states that trade unions are independent of State bodies, local authorities and political parties and organizations, and are not subordinate or answerable to them except in certain cases as laid down by law. The Association comprises the trade unions of Abkhazia and Ajaria as well as 32 branch trade unions. Member organizations have their own charters and are officially registered.

There are no State trade unions in Georgia.

The Council of the Association of Georgian Trade Unions has adopted a decision on joining the International Confederation of Free Trade Unions (IFCTU), which will consider the Association's application in approximately December 1999.

23. In October 1998, the Parliament of Georgia adopted the Act on the Settlement of Collective Labour Disputes which covers, among other things, the legal aspects of organizing and conducting strikes. The Act applies to all employers and workers and their associations and representative bodies, irrespective of their legal form and type of ownership. Strike organization matters are also covered by the Trade Unions Act.

24. The Association of Georgian Trade Unions and individual trade unions exercise their rights in a practical way on the basis of a social partnership with the executive authorities, local authorities and employers and their associations, by the conclusion of collective contracts and agreements. In January 1999, the President's Order on Assistance in the Exercise of Trade Union Rights came into force, thereby giving effect to the rights of trade unions under the Act and in many cases extending them.

Despite the rights granted to trade unions under the Act, cases arise in practice where investors in newly-established transnational and joint enterprises directly or indirectly hinder the formation of trade unions, ignore existing trade unions or restrict their activities. Trade union representatives are not given the opportunity to participate in the preparation of investment agreements with a view to protecting the labour, economic and social rights of members. Similar cases have been reported at certain enterprises in the business sector. The unions have recourse to the appropriate legal remedies against such violations.

Under the Presidential Order referred to above, the Standing Tripartite Commission on Labour and Socio-Economic Relations was required to draw up, by 1 March 1999, a general agreement between the Government, the employers' association and the Association of Georgian Trade Unions; this has still not been done.

In June 1998, the Constitutional Court ruled that all enforceable enactments adopted by the State authorities in 1992-95 transferring property from trade unions were unlawful and invalid. Consequently, the disputed items, including the Trade Union House of Culture in Tbilisi, the training centre and the Nabeglavi resort complex were ruled to be trade union property. However, the Association of Georgian Trade Unions reports that the State bodies continue to try to encroach on trade union property. In February 1999, the Association applied first to the President and then to the Judicial Council and the Constitutional Court for its rights to be upheld. So far its application has not yielded any practical results.

These benefits became virtually worthless as a result of inflation during the economic crisis and the transition to a market economy, and thus no longer fulfilled their purpose of providing material assistance to families. The lack of financial resources meant that allowances had to be targeted more accurately at a smaller group of beneficiaries. From 1997, the various benefits referred to above were replaced by a single social (family) allowance. Initially, the criteria for eligibility were inability to work and unemployment, but since 1998, inability to work has been the only criterion. There is also a system of one-off assistance to mothers on the birth of their third child. At the local level, there is a system of social assistance to large families, but these benefits have to be defined clearly by law.

26. Under the present procedure, unemployment benefits are payable for only six months, and are restricted to persons who have lost their job through no fault of their own. The amount of the benefit varies according to the period of unemployment. In the first two months, it is 14 lari, or 14.5 per cent of the average subsistence minimum. For the third and fourth months, it drops to 12 lari, or 12.5 per cent of the subsistence minimum, and in the final two months it is 11 lari, or 11.4 per cent of the subsistence minimum. Thus the average unemployment benefit is 12.3 lari, or 12.8 per cent of the subsistence minimum.

28. In our view, it is not quite correct to speak of discrimination on the labour market. The problem is rather one of sharply reduced job opportunities for specialists with a higher education - the majority of whom have traditionally been women in Georgia. The National Plan for the Advancement of Women mentioned above (question 13) provides, among other things, for the establishment of institutional machinery that will take the gender factor into account as much as possible. Following the presidential elections of April 2000 Georgia's political leadership intends to set up, at the executive level, a Department for Women's Affairs, one of whose priorities will be to improve the position of women on the labour market. At present, it is often easier for women to find work than for men. The vacancies in question admittedly tend to be in specific fields, such as the service sector (shop assistants, waitresses, carers for children or the elderly, etc.) or support staff (secretaries, personal assistants, etc). Since the latter type of vacancy tends to be in the business sector, wages can be at least two or three times the national average.

As regards women's participation in decision-making at an executive level, it is worth mentioning what has occurred in the judicial context. One of the results of the reform of the judicial system was that virtually all the country's judges were replaced. The competitive examinations held for the posts in question led for the first time in Georgia's history to female judges outnumbering their male colleagues; this is obviously a most positive development.

29. In June 1996 the President approved the State programme for social protection, vocational training and prevention of crime among juveniles, under which a Juvenile and Youth Crime Board was set up under the Ministry of Internal Affairs to coordinate and supervise the work of the juvenile affairs inspectorates of local internal affairs bodies. The Board is also responsible for organizing juvenile crime prevention measures. In accordance with the above-mentioned State programme a State Commission on Juvenile Affairs has been set up to deal with matters requiring the adoption of measures at the State level. Similar commissions have been established at the local level. An amount of 200,000 lari has been earmarked under the State budget to finance the programme.

The commissions on juvenile affairs attached to local authorities and the juvenile affairs inspectorates cooperate actively, particularly in keeping track of socially disadvantaged, abandoned and homeless children and taking preventive measures. Such children are listed as requiring the application of preventive measures and receive special guidance with the help of psychologists and educational specialists. In the past two years, the juvenile affairs inspectorates have identified 3,073 homeless children, of whom 1,772 were listed - 584 for vagrancy, 478 for begging and 52 for drug abuse. If the children have no parents or guardians, the commissions can, taking account of all circumstances and of the child's best interests, place the child in a closed centre, an open rehabilitation centre or a refuge. In 1998-99, the commissions examined the cases of 896 adolescents and placed 84 juveniles in special centres.

A major role in preventing crime among unsupervised children is played by the reception and assessment centres of the Ministry of Internal Affairs which admit, on a temporary basis, children from three to 18 years of age in need of State help, take steps to return them to their families or send them to institutional care centres, determine why the child broke the law, etc. At present there are two such centres, and a third is to be opened shortly.

A juvenile rehabilitation centre has been opened on the outskirts of Tbilisi to which children who are unprotected or likely to commit offences may be sent at the discretion of the relevant State Commission. This centre has a complete range of educational, leisure, vocational training and work facilities and is at present rehabilitating 65 children. Similar centres are being set up in western Georgia (Kutaisi) and in Adjaria (Batumi).

Tbilisi now also has three open rehabilitation centres known as "children's refuges" where children from disadvantaged families may be placed by joint decision of the Ministry of Internal Affairs, the appropriate State Commission and the NGOs concerned. The refuges are funded by grants from international organizations.

The Ministry of Education has made a sociological study of street children, and the information collected is at present being analysed. Persons working with street children have received training in applied psychology and social work. From time to time the Ministry of Health arranges for the medical examination and treatment of such children.

The National Office for the Prevention of Drug Abuse and Trafficking under the Ministry of Internal Affairs now has a special section responsible for preventing drug problems among juveniles and young adults.

The Ministries of Internal Affairs and Education, together with the coordination centre of the State Commission on Juvenile Affairs, have prepared and submitted to the National Security Council a State programme for the protection, development and integration of juveniles in society during the 2000-2003 period.

30. The long-term "Future of Georgia" programme, proposed by the Children's Federation of Georgia, was approved by a Presidential Order in January 1997. It provides for summer and winter holidays for children of 10 to 14 years of age, and includes special educational and creative programmes to promote the all-round development of the child.

The programme actually began in 1996 with the "Ureki - the town of the future" festival in the Ureki resort, in which more than 5,000 adolescents participated. In the winter of 1997, 1,500 children holidayed in the Borjomi canyon area, and at the Borjomi, Kechkhobi and Bakuriani resorts. In summer of the same year, the Children's Federation, jointly with the Ministry of Education, selected 4,500 adolescents with outstanding scholastic, arts and sports achievements, as well as children from disadvantaged families and families which had lost members in the conflict for Georgia's unity and territorial integrity to spend their holidays at the Ureki resort. The "Future of Georgia" programme arranged a holiday programme for 1,200 teenagers in the Borjomi canyon in February-March 1998. In the summer of 1998, 2,800 children of displaced persons from the Gali region of Abkhazia holidayed at leisure complexes in Borjomi, Tsemi, Bakuriani and Chitakhevi. During that period, Georgians were once more being driven out of the Gali region after attempting to return.

The number of children sent on holiday declined considerably in 1999 because of a shortage of funds. During the summer, holidays were arranged in a Borjomi health resort for 300 children from children's homes and boarding schools. Up to 2,700 adolescents in all enjoyed holidays in Ureki and Borjomi in 1999.

The "Future of Georgia" programme is to end in 2000.

Prices in Georgia were relatively stable up to December 1998, but the devaluation of the lari led to significant price increases. Imported goods were particularly affected, but domestic goods also rose in price. The largest increases were recorded by pasta and vegetable and animal fats (22 to 42 per cent), liquefied gas (58 per cent) and medicines (30 per cent on average). The cost of medical services at the end of 1998 had risen by 11.4 per cent compared to the same period of the previous year.

Prices are now once again relatively stable, but at a higher level, and there are small seasonal fluctuations.

32. According to statistical data, the incomes of both wage earners and the self-employed rose over the period 1996-98. The average monthly income of the former was 40.5 lari in 1996, 50.3 in 1997 and 62.9 in 1998. The corresponding figures for the self-employed were 81.9, 109.3 and 120.1. The income of the self-employed and entrepreneurs, whether or not they use wage labour, has clearly risen more rapidly than that of wage-earners. The absolute income level of the self-employed is almost twice that of wage-earners.

Up to December 1998, income levels were rising not only nominally but in real terms, but then they dropped in real terms (dollar equivalent) according to the official rate. The exchange rate is now stable, but the hard-currency value of the lari has fallen considerably and this has affected the population's real income. The hardest hit are pensioners and public-sector workers because of long delays in the payment of pensions and wages by the State.

33. According to data for December 1998, the subsistence minimum for the average Georgian consumer was 92 lari, a figure which is steadily increasing. Almost all types of statutory benefit vary from 9 to 14 lari and hence represent 10 to 15 per cent of the subsistence minimum. There are some exceptions however. In accordance with the law, the average pension of members of the military, police and security bodies is between 60 and 80 lari; pensions and benefits for Second World War veterans, persons assimilated to them and victims of the repression under Stalin or their children vary from 35 to 45 lari. It should be noted, however, that the budgetary implications of legislative measures make it impossible to pay pensions and benefits on time. In 1998 and 1999, the State built up a considerable pensions backlog totalling tens of millions of lari. This backlog is at present being reduced, as budgetary circumstances permit.

34. The table below shows food supply trends in Georgia by main types of foodstuff for the period 1994-1998. Figures for 1990, the last year before independence, are provided as a benchmark.

Sugar (tonnes)	1990 - 33 821	1994 - 200 000	1995 - 206 000
.	1996 - 19 623	1997 - 19 695	1998 - no data
Meat (tonnes)	1990 - 76 700	1994 - 378 000	1995 - 65 100
.	1996 - 68 000	1997 - 39 000	1998 - 179 000
Whole milk products in milk equivalent (litres)	1990 - 250 000	1994 - 17 800	1995 - 4 400
.	1996 - 4 000	1997 - 5 400	1998 - 6 400
Butter (tonnes)	1990 - 923 000	1994 - 31 200	1995 - 20 600
.	1996 - 16 000	1997 - 887 000	1998 - 263 000
Vegetable oil (tonnes)	1990 - 14 336	1994 - 14 100	1995 - 10 100
.	1996 - 330 000	1997 - 830 000	1998 - 548 000
Bread and bakery products	1990 - 856 000	1994 - 498 000	1995 - 285 000
.	1996 - 255 300	1997 - 198 000	1998 - 171 000

It may be noted that, in general, the population is not experiencing food shortages. Food aid, especially from the Government of the United States (grain and flour) and international organizations is of enormous importance. The main problem is one of providing food that the population can afford, for its purchasing power is inadequate.

35. Steps have been taken to speed up the process of leasing land under the Land for Farming (Leasing) Act and the related presidential decree. As a result of the measures taken in connection with the land reform, 825,000 hectares, namely, 36.4 per cent of the remaining 2,276,500 hectares of State-owned land earmarked for the purpose, had been leased out as at 1 April 1999. A total of 322,200 hectares had been leased by 44,200 individuals and 502,800 hectares by 5,000 bodies corporate. Nationally, 1,442,500 hectares remained unleased, including land in Abkhazia and South Ossetia, where land reform had not taken place.

Certain factors slowed the implementation of leasing. Many regions are dragging their feet over issues of land leasing, and almost everywhere there have been cases where leasing agreements have been cancelled because the conditions were not fulfilled. Rent collection has become a problem and only slightly over 2 million lari have been collected nationally. The absence of a land register in many regions has made it difficult to assess the quality of land put up for lease and hence to fix rents for various categories of land. The tax legislation on the subject also needs to be improved. Completing registration of unused land is a priority.

Some land has been transferred free of charge to the citizens of Georgia under the Land Ownership Act by the Presidential Order on urgent measures for the initial registration of agricultural land ownership rights and issue of registration certificates to the citizens of Georgia (No. 327 of 16 May 1999) and various normative acts (decisions of the Cabinet of Ministers for the period 1992-1995).

Land reform commissions have been set up in villages, regions and cities to register permanent residents. The commissions have used existing land inventories and established discrete standards in respect of all specific cases. The land has been distributed accordingly and a million families have received title deeds which constitute proof of ownership of the land.

Figures indicating the main types of agricultural produce grown during the 1994-1998 period are presented below. For purposes of comparison, corresponding figures are given for 1990, the last year of the Soviet period in Georgia.

These figures reveal that definite progress has been made, albeit slowly, over the past five years in most areas of agricultural production, and indicate that Georgian agriculture is gradually moving out of crisis and that further growth may be anticipated.

36. In accordance with the December 1998 Order of the President of Georgia on the procedures for selecting and financing State-targeted programmes (programme proposals), 10 State-targeted programmes, some of them sectoral, were submitted to the Ministry of Finance for approval in 1999. A further 27 programmes were proposed to the Ministry of the Economy for inclusion in the indicative plan for 2000. Owing to the lack of funds, none of the sectoral programmes in the initial report were approved. Priority in approving programme proposals was accorded to types of agricultural production traditional to Georgia (tea and grapes), breeding programmes, etc.

37. Intensive work is under way on the restitution act, which will define the procedure for returning illegally confiscated property to refugees and displaced persons. The act will initially cover the property of Ossetians who left Georgia as a result of the Georgian-Ossetian conflict. It will not cover Abkhazia and South Ossetia until they are returned to the de facto jurisdiction of Georgia.

38. In 1998, four new apartment blocks, with a total living space of 20,400 square metres, or 38 per cent more than in the previous year, were opened in Tbilisi. Investment by the State amounted to 7.9 million lari, of which 76 per cent was from the central budget. Private builders invested 9.1 million lari and built 352 homes, with a total living space of 42,600 square metres, in various parts of Georgia, with the exception of Abkhazia and South Ossetia.

The situation of those who lost their homes as a result of being forced to leave the conflict zones has not improved since the initial report was submitted: the repatriation of displaced persons has still not begun because of the obstructive attitude of the authorities in the self-proclaimed republics of Abkhazia and South Ossetia.

40. As stated in the initial report, the reorganization of Georgia's health service began in 1995 in the light of new organizational principles governing public health care, based on sound economic relations and free of political influence or ideological restrictions. Its reform has now resulted in the creation of a qualitatively new model for the organization and management of the health service which takes into account both international experience and the particular situation of Georgia. We would certainly not claim that the reform is problem-free, since many people cannot afford to pay for treatment under the new scheme, but it is clear that progress has been made. For example, in 1999, the budgetary appropriation for all types of public health programmes (central, municipal and departmental) was 92 million lari (approximately US$ 48 million), or 17 lari per head of population (approximately nine dollars) for the year. This is not a large amount, but the corresponding figure for 1993-1994 was less than 40 cents.

The process of establishing central and local institutional structures for the State health system is now complete. The State Health Care Fund has been converted into the State Medical Insurance Company. More than 1,500 medical establishments have become self-financing and general medical and pharmaceutical establishments have been licensed. State standards for the diagnosis and treatment of up to 2,000 different diseases have been developed and introduced and are updated annually.

The transition to programmed management has made it possible to identify priority areas and the minimal level of public health care required (the basic package), which is financed by the State under central and municipal programmes. The size of the basic package will increase as the economic situation improves. In 1995, it comprised 11 programmes and by 1998 the State was financing 36 programmes which provided different types of medical services to over 3 million patients.

This year has seen the beginning of the State outpatient programme, designed to finance 680 rural outpatient centres providing free care to over 2 million people.

These are the main features of the public health-care system, which includes a large number of measures for improving health, encouraging a healthy lifestyle and raising public awareness of disease prevention. Steps need to be taken to reform the hygiene standards and sanitary inspection service.

Circumstances call for the adoption of certain clearly unpopular measures, including efficiency programmes for medical establishments and their staff. In reality, these involve downsizing by means of licensing, certification, privatization and consolidation of establishments.

The success of the medical staff certification process is closely linked with the question of improving medical training. Many measures have already been taken: a minimum core requirement has been developed for higher and secondary medical training and the certification and accreditation of educational establishments will be carried out accordingly; residency programmes have been set up for the main medical specializations; 400 young doctors in various fields have been sent for training to universities in Western Europe and the United States, etc.

Over 500 health-care establishments have already been privatized, and as a result the State budget is 2,875,000 lari to the good. This has paved the way for free competition among medical establishments with different forms of ownership as part of a unified system with equal State regulation for all. Privatization of the pharmacy network helped overcome medicine shortages. However, under the Medicines and Pharmacies Act, State machinery regulating maximum prices for essential medicines will have to be created to ensure that they remain affordable to all.

A grants system for financing scientific research has been introduced in order to improve the funding of medical science. At the same time, Georgian researchers are actively collaborating with foreign partners and more and more grants are received every year.

The medical industry is gradually recovering. The first stage of a pharmaceutical plant with world-class output has already been commissioned, and US$ 12 million have been earmarked for the second stage. Plans are complete for a disposable syringe factory, also to be funded by foreign investment.

The report entitled The State of Public Health in Georgia was published for the first time in 1998, during which the Strategic Plan for the Implementation of National Health Care Policy, 2000-2009 was drawn up. The financial assistance received from IMF, the World Bank, WHO, the European Union and the Governments of the United States, the United Kingdom, Germany, the Netherlands, Sweden and Japan plays a particularly important role in funding the reforms being carried out.

41. Figures on the number and type of medical establishments in Georgia, 1996-1998, are presented below.

.	1996	1997	1998
Hospitals	264	287	272
Outpatient clinics within hospitals	111	115	114
Specialized clinics	82	83	81
Independent health centres providing care at home and for outpatients	840	829	859
Independent dental establishments	51	51	56
First-aid stations	33	47	53
Midwifery stations	479	386	512
Independent first aid stations	5	24	25
Blood transfusion stations	5	6	6
Infant centres	3	3	2
Medical centres	-	22	27

The figures for medical personnel, the figures for 1996-1998, are as follows. The number of doctors was 19,062 in 1996, 21,706 in 1997 and 20,824 in 1998. The number of intermediate medical staff was 29,978 in 1996, 29,775 in 1997 and 28,642 in 1998. The most common specializations among doctors are general practice, paediatrics, dentistry and gynaecology.

The draft budget for 2000 includes an education appropriation of 52,200,000 lari. This sum comprises funding only for establishments financed by the central budget.

Schools offering a general education are funded by local (city and region) budgets, which contain the relevant budgetary headings.

43. The activities of non-State educational establishments are regulated by the Education Act and the Act on the licensing of entrepreneurial activities. They are allowed to function only if they are officially accredited by the Ministry of Education and comply with State educational standards and programmes. If non-State educational institutions accept a State order they are funded under the State budget in accordance with the law.

44. In 1996/97, 5,831 pupils or 0.82 per cent of the total school population dropped out. This total included 848 in grades one to four; 2,586 in grades five to nine; and 2,397 in grades 10 and 11.

In 1997/98, 5,372 children dropped out, the corresponding grade breakdown being 930; 2,543; and 1,899, or 0.75 per cent of the total school population.

45. According to data from the State Department of Statistics, 53 per cent of schools offering a general education in Georgia are in need of major repairs and 17 per cent are falling apart. There are 401 schools which lay on a second shift, attended by 78,000 pupils, and 18 schools even have a third shift, attended by 1,004 pupils.

It is still difficult to ensure that pupils have textbooks because many parents cannot afford them at a cost of three to six lari each. Other school supplies are also quite expensive. The fact that this year the Ministry of Education managed to provide every child starting school with a primer out of State funds is an encouraging development but does not solve the problem as a whole.

The budgetary funds received by schools are inadequate for them to purchase school supplies and teaching materials in sufficient quantities. The problem of receiving funds from central sources for heating schools in winter has still not been resolved.

46. Figures for September 1998 reveal that the salaries of certified teachers at schools offering a general education and specialized secondary and vocational educational establishments were 38.5 lari for grade III teachers, 45.5 lari for grade II teachers, 52.5 lari for grade I teachers and 70.5 lari for the highest grade teachers. The salaries of uncertified teachers in the 1997/98 school year were 35 lari for those with a general secondary education (category III), 36 lari for those with a secondary specialized education (category X), 37 lari for those with a higher education (category XI), 38 lari for those at step II (category XII), 39 lari for those at step I (category XIII), and 41 lari for those at the highest step (category XIV).

The salaries of teachers in higher education are as follows. A head of department is paid 66 lari if a professor, 60 lari if he is a Doctor of Sciences and 47 lari if he has no higher degree. The salary of a departmental professor is 60 lari if he is a Doctor of Sciences and 47 if he is a Candidate of Sciences. A departmental assistant professor receives 47 lari if he is a Doctor of Sciences, 41 if he is a Candidate of Sciences and 39 if he has no higher degree. A senior teacher receives 38 lari if he is a Candidate of Sciences and 37 if he has no higher degree. A teaching assistant receives 37 lari if he is a Candidate of Sciences and 36 if he has no higher degree. A trainee teacher receives 35 lari.

48. The Libraries of Georgia Act was adopted in 1996, the Culture Act in 1997 and the Protection of the Cultural Heritage Act and the Theatres of Georgia Act in 1999. Draft legislation on the import and export of items of cultural value and on the museums of Georgia has been drawn up and transmitted to the Council of Europe for assessment. A bill on education in the arts is being prepared.

49. Current regulations on royalty rates and payment procedures for the creation, public performance or other use of literary and art works are clearly out of date and need to be thoroughly revised in the light of present conditions. The same is true of the entire copyright protection system, particularly in the case of pirated artistic works, films and video recordings. For example, the video market in Georgia consists mostly of unlicensed copies, which is an obvious copyright violation.

50. Georgia's Ministry of Culture, as an executive body, is making every effort to promote the cultural development of ethnic minorities, and considerable progress has been made in this respect.

Abkhazian, Armenian, Ossetian and Russian State theatres as well as Azerbaijani and Russian folk (amateur) theatres are active in Georgia. The Shota Rustaveli State Theatre and Cinema Institute is training a targeted group of students to form the core of a future Azerbaijani State theatre in Tbilisi.

Georgia has many museums devoted to outstanding cultural figures, including Mirza Fatali Akhundov, D. Gulia (Sukhumi), Djalil Mamedkulizade, Vladimir Maiakovskii, Nariman Narimanov, Vahan Teryan, Konstantin Simonov and Kosta Khetagurov (Tskhinvali). Tbilisi also has an Alexander Pushkin memorial house and a Lesya Ukrainka museum-library.

Tbilisi also boasts a Russian cultural centre, Russian-Georgian and Azerbaijani-Georgian cultural centres and the Caucasian House cultural centre. Almost all of Georgia's libraries contain literature in ethnic minority languages.

Generations of audiences have enjoyed the performances of Abkhazian, Armenian, Assyrian, Azerbaijani, German, Greek, Jewish, Lithuanian and Ossetian song and dance groups. Some of the most successful of the many amateur groups are the Ionat Shel Shalom (Doves of Peace) Jewish children's dance group, which won an international competition; the Aik Greek youth song and dance group, the Saiat-Nova vocal and instrumental group and the Kurdish and Assyrian groups.

A highly successful Jewish book festival was recently held in Georgia.

However, all of the above is not a reason for complacency. The Georgian Ministry of Culture is pursuing active and close collaboration with ethnic minority associations, societies and cultural centres. A special Minorities Commission has been set up under the Minister of Culture, and within the Ministry itself, headed by a deputy minister of culture, there is a service dealing directly with specific problems connected with the cultural development of ethnic minorities in Georgia.