Georgia sacked Economic Development Minister Lasha Zhvania on Friday as the volatile former Soviet republic struggles with the economic downturn and investor flight. "I am not happy with his work. He must leave his post today," Prime Minister Nika Gilauri told reporters.
"The economic development ministry did not do enough to attract investment and even to create the conditions for current investors," he said. Under the balance of power in the Georgian government, the Economic Development Minister does not play the key role in economic policy, which is largely in Gilauri's hands.
The Georgian economy is forecast to contract by 1.5 percent this year due to plummeting foreign direct investment after a five-day war with Russia last August, months of opposition street protests and the effects of the global crisis. The first quarter of this year saw a 76.8 percent drop in FDI to $124.7 million compared with the same period last year, with the banking sector hardest hit.