Georgian President Eduard Shevardnadze acted March 20 to prevent adoption of a parliamentary measure raising minimum salaries in the country. The fact that Shevardnadze had to effectively veto the measure underscores his own political weakness, and the ineffectiveness of the supposed pro-presidential party in parliament.
Opposition parties had pushed for a rise in the minimum wage since late 2002. On February 28, parliament approved a measure that mandated a 500 percent rise in the minimum wage, from abut 20 laris, (just over $9) to 115 laris (almost $53). On March 20, Shevardnadze returned the measure to parliament for further discussion. He also proposed that implementation of the minimum wage hike be postponed until June 2005, the Prime News agency reported.
In recent weeks, Shevardnadze and his allies in the pro-presidential Citizens Union of Georgia (CUG) parliamentary faction tried in vain to overturn or otherwise frustrate implementation of the minimum wage hike. They maintained such a large rise was unfeasible given Georgia's present economic conditions.
One government minister characterized the parliament's minimum wage move as "economically illiterate." Meanwhile, Shevardnadze warned March 3 that higher payrolls "might trigger irreversible and uncontrollable
Jaba Devdariani is a founding director of the United Nations Association of Georgia (www.una.org.ge) and Research Director of the UNAs program for applied research.
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