Kakha Bendukidze
Encyclopedia
Kakha Bendukidze (born April 20, 1956 in Tbilisi
, USSR) is a Georgia
n politician and businessman.
After the Rose Revolution
, he served as Georgia
n Minister of Economy (June–December 2004), Minister for Reform Coordination (December 2004 - January 2008) and Head of the Chancellery of Government of Georgia
(February 2008 - February 2009).
in 1977 and from the Postgraduate School of the Moscow State University
in 1980. From 1981 to 1985, he worked for the Institute of Biology and Physiology of Microorganisms in Puschino. From 1985 to 1988, he worked as the head of the Laboratory for Molecular Genetics at Institute of Biotechnology.
, Bendukidze organized a small business called Bioprocess. In 1993, during the Voucher privatization
, campaign he bought stock in Uralmash
. Bendukidze became a board member, and later, Director-General of this company. After merging Uralmash
with Izhora Plants in 1996, he became Chairman and CEO (Director-General) of the merged company, Objedinennie Mashinostroitelnie Zavody (OMZ). Bendukidze had raised to becoming one of Russia's top twenty oligarch
s, and an influential voice on economic policy.
By 2004 Vladimir Putin
's regime tightened its grip on strategic industries. According to Boris Berezovsky:Bendukidze does not belong to Putin‟s circle of friends and he understood sooner than everyone else that everything would be taken away from him... Bendukidze by far hasn‟t exhausted his potential but right now the Russian authorities do not need such talented people.. Thus, he decided to move to his native Georgia. In March 2004, he left the position of Chairman of the OMZ and later sold his interest in the company. On June 2, 2004, he became Minister for Economics of Georgia.
victory. After having been appointed Minister of Economy in the new Saakashvili cabiner for a semester, since December 14, 2004 to January 31, 2008, he was State Minister on reforms coordination, coordinating government efforts to liberalize the economy.
The Economist said of Bendukidze: "Mr Bendukidze made his name and fortune as an industrialist in neighboring Russia, putting together the country's biggest heavy-engineering group, OMZ, before returning to his native Georgia in June of this year with a mandate to reverse more than a decade of post-Soviet decay. He insists that he was taken by surprise when Georgia's president, Mikhail Saakashvili, and prime minister, Zurab Zhvania, nobbled him for a chat in the course of a private visit he made to Tbilisi in May, and then offered him a ministerial job the same evening. But having said yes, he is cracking ahead, doing everything that businessmen must dream of making governments do. He says that Georgia should be ready to sell 'everything that can be sold, except its conscience, and that is just the start.'"
He is known as a committed libertarian
and strong supporter of market economy
, deregulation
and privatization
, stating that the Georgian government should sell everything except its honor. During 2004-2007, under his leadership, Georgia became the top-reforming country in the world, according to the World Bank's Doing Business report. In particular, Georgia jumped from 137 to 18 on the ease of doing business scale, ahead of Germany and France.
Since the weakening of the democratic credentials of the Saakashvili government after the police crackdown of the 2007 protests
, the government has put the stress on his successful economic reforms. Bendukidze was pivotal in the libertarian reforms launched under Saakashvili, including one of the least restrictive labour codes, the lowest flat income tax rates (12%) and some of the loweest customs rates worldwide, along with the drastic reductiopn of necessary licenses and permits for business.
In the January 2008 cabinet
reshuffle, he became Head of the State Chancellery. During his tenure, he was considered one of the most influential Georgian politicians, although he was also much hated by opposition in the administration. He was criticized for repealing anti-monopoly legislation and introducing a controversial labor code. The opposition accused him of trying to sell off each of Georgia’s strategic assets, such as sea ports, entire railway system, gas supply network, forests, etc. Many of those assets went to Russian businessmen. He appeared to promote a pro-western political orientation but a Russian-oriented economy. Moreover, he appears to be promoting an economic model of reforms incompatible with Georgia's eventual integration with the European Union
Bendukidze is notorious for insulting language. At a cabinet meeting, he called Energy Minister Nika Gilauri (the current Prime Minister) an imbecile
On February 7, 2009 he was removed as Head of the State Chancellery, which David Kereslidze took over on February 17. Bendukidze has since then returned to private business, building up a European School of Business in Tblisi.
Tbilisi
Tbilisi is the capital and the largest city of Georgia, lying on the banks of the Mt'k'vari River. The name is derived from an early Georgian form T'pilisi and it was officially known as Tiflis until 1936...
, USSR) is a Georgia
Georgia (country)
Georgia is a sovereign state in the Caucasus region of Eurasia. Located at the crossroads of Western Asia and Eastern Europe, it is bounded to the west by the Black Sea, to the north by Russia, to the southwest by Turkey, to the south by Armenia, and to the southeast by Azerbaijan. The capital of...
n politician and businessman.
After the Rose Revolution
Rose Revolution
The "Revolution of Roses" was a change of power in Georgia in November 2003, which took place after having widespread protests over the disputed parliamentary elections...
, he served as Georgia
Georgia (country)
Georgia is a sovereign state in the Caucasus region of Eurasia. Located at the crossroads of Western Asia and Eastern Europe, it is bounded to the west by the Black Sea, to the north by Russia, to the southwest by Turkey, to the south by Armenia, and to the southeast by Azerbaijan. The capital of...
n Minister of Economy (June–December 2004), Minister for Reform Coordination (December 2004 - January 2008) and Head of the Chancellery of Government of Georgia
Cabinet of Georgia
The Cabinet of Georgia is an executive council of government ministers in Georgia. It is headed by the Prime Minister of Georgia. In the cases of utmost importance, the meetings may be led by the President of Georgia . The first Cabinet of Georgia was formed by Noe Zhordania in the Democratic...
(February 2008 - February 2009).
Studies
Bendukidze graduated from the Department of Biology of Tbilisi State UniversityTbilisi State University
Ivane Javakhishvili Tbilisi State University , better known as Tbilisi State University , is a university established on 8 February 1918 in Tbilisi, Georgia. TSU is the oldest university in the whole Caucasus region...
in 1977 and from the Postgraduate School of the Moscow State University
Moscow State University
Lomonosov Moscow State University , previously known as Lomonosov University or MSU , is the largest university in Russia. Founded in 1755, it also claims to be one of the oldest university in Russia and to have the tallest educational building in the world. Its current rector is Viktor Sadovnichiy...
in 1980. From 1981 to 1985, he worked for the Institute of Biology and Physiology of Microorganisms in Puschino. From 1985 to 1988, he worked as the head of the Laboratory for Molecular Genetics at Institute of Biotechnology.
Businessman in Russia
With the onset of PerestroikaPerestroika
Perestroika was a political movement within the Communist Party of the Soviet Union during 1980s, widely associated with the Soviet leader Mikhail Gorbachev...
, Bendukidze organized a small business called Bioprocess. In 1993, during the Voucher privatization
Voucher privatization
Voucher privatization is a privatization method where citizens are given or can inexpensively buy a book of vouchers that represent potential shares in any state-owned company...
, campaign he bought stock in Uralmash
Uralmash
Uralmash is a heavy machine production facility of the Russian engineering corporation OMZ. The facility is located in Yekaterinburg, Russia. The surrounding residential area where workers live is also called Uralmash....
. Bendukidze became a board member, and later, Director-General of this company. After merging Uralmash
Uralmash
Uralmash is a heavy machine production facility of the Russian engineering corporation OMZ. The facility is located in Yekaterinburg, Russia. The surrounding residential area where workers live is also called Uralmash....
with Izhora Plants in 1996, he became Chairman and CEO (Director-General) of the merged company, Objedinennie Mashinostroitelnie Zavody (OMZ). Bendukidze had raised to becoming one of Russia's top twenty oligarch
Oligarch
Oligarch may refer to:* A member of an oligarchy, a form of government* Business oligarch* Russian oligarch...
s, and an influential voice on economic policy.
By 2004 Vladimir Putin
Vladimir Putin
Vladimir Vladimirovich Putin served as the second President of the Russian Federation and is the current Prime Minister of Russia, as well as chairman of United Russia and Chairman of the Council of Ministers of the Union of Russia and Belarus. He became acting President on 31 December 1999, when...
's regime tightened its grip on strategic industries. According to Boris Berezovsky:Bendukidze does not belong to Putin‟s circle of friends and he understood sooner than everyone else that everything would be taken away from him... Bendukidze by far hasn‟t exhausted his potential but right now the Russian authorities do not need such talented people.. Thus, he decided to move to his native Georgia. In March 2004, he left the position of Chairman of the OMZ and later sold his interest in the company. On June 2, 2004, he became Minister for Economics of Georgia.
Georgian politician
Bendukidze returned to Georgia after the Rose RevolutionRose Revolution
The "Revolution of Roses" was a change of power in Georgia in November 2003, which took place after having widespread protests over the disputed parliamentary elections...
victory. After having been appointed Minister of Economy in the new Saakashvili cabiner for a semester, since December 14, 2004 to January 31, 2008, he was State Minister on reforms coordination, coordinating government efforts to liberalize the economy.
The Economist said of Bendukidze: "Mr Bendukidze made his name and fortune as an industrialist in neighboring Russia, putting together the country's biggest heavy-engineering group, OMZ, before returning to his native Georgia in June of this year with a mandate to reverse more than a decade of post-Soviet decay. He insists that he was taken by surprise when Georgia's president, Mikhail Saakashvili, and prime minister, Zurab Zhvania, nobbled him for a chat in the course of a private visit he made to Tbilisi in May, and then offered him a ministerial job the same evening. But having said yes, he is cracking ahead, doing everything that businessmen must dream of making governments do. He says that Georgia should be ready to sell 'everything that can be sold, except its conscience, and that is just the start.'"
He is known as a committed libertarian
Libertarianism
Libertarianism, in the strictest sense, is the political philosophy that holds individual liberty as the basic moral principle of society. In the broadest sense, it is any political philosophy which approximates this view...
and strong supporter of market economy
Market economy
A market economy is an economy in which the prices of goods and services are determined in a free price system. This is often contrasted with a state-directed or planned economy. Market economies can range from hypothetically pure laissez-faire variants to an assortment of real-world mixed...
, deregulation
Deregulation
Deregulation is the removal or simplification of government rules and regulations that constrain the operation of market forces.Deregulation is the removal or simplification of government rules and regulations that constrain the operation of market forces.Deregulation is the removal or...
and privatization
Privatization
Privatization is the incidence or process of transferring ownership of a business, enterprise, agency or public service from the public sector to the private sector or to private non-profit organizations...
, stating that the Georgian government should sell everything except its honor. During 2004-2007, under his leadership, Georgia became the top-reforming country in the world, according to the World Bank's Doing Business report. In particular, Georgia jumped from 137 to 18 on the ease of doing business scale, ahead of Germany and France.
Since the weakening of the democratic credentials of the Saakashvili government after the police crackdown of the 2007 protests
2007 Georgian demonstrations
The 2007 Georgian demonstrations were a series of anti-government protests in Georgia. The demonstrations peaked on November 2, 2007, when 50,000-100,000 rallied in downtown Tbilisi, capital of Georgia. People protested against the allegedly corrupt government of president Mikheil Saakashvili...
, the government has put the stress on his successful economic reforms. Bendukidze was pivotal in the libertarian reforms launched under Saakashvili, including one of the least restrictive labour codes, the lowest flat income tax rates (12%) and some of the loweest customs rates worldwide, along with the drastic reductiopn of necessary licenses and permits for business.
In the January 2008 cabinet
Cabinet of Georgia
The Cabinet of Georgia is an executive council of government ministers in Georgia. It is headed by the Prime Minister of Georgia. In the cases of utmost importance, the meetings may be led by the President of Georgia . The first Cabinet of Georgia was formed by Noe Zhordania in the Democratic...
reshuffle, he became Head of the State Chancellery. During his tenure, he was considered one of the most influential Georgian politicians, although he was also much hated by opposition in the administration. He was criticized for repealing anti-monopoly legislation and introducing a controversial labor code. The opposition accused him of trying to sell off each of Georgia’s strategic assets, such as sea ports, entire railway system, gas supply network, forests, etc. Many of those assets went to Russian businessmen. He appeared to promote a pro-western political orientation but a Russian-oriented economy. Moreover, he appears to be promoting an economic model of reforms incompatible with Georgia's eventual integration with the European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
Bendukidze is notorious for insulting language. At a cabinet meeting, he called Energy Minister Nika Gilauri (the current Prime Minister) an imbecile
Imbecile
Imbecile is a term for moderate to severe mental retardation, as well as for a type of criminal. It arises from the Latin word imbecillus, meaning weak, or weak-minded. "Imbecile" was once applied to people with an IQ of 26-50, between "moron" and "idiot" .The term was further refined into mental...
On February 7, 2009 he was removed as Head of the State Chancellery, which David Kereslidze took over on February 17. Bendukidze has since then returned to private business, building up a European School of Business in Tblisi.