The parliament led by the Georgian Dream party has amended the Law on Grants to guarantee budgetary funding for organisations loyal to the government. The amendment paves the way for establishing a state grant management body responsible for distributing these funds. Georgia’s civic sector has long advocated for a transparent and unbiased state funding mechanism. Yet, in the current context of a rapidly deteriorating civil society environment and growing restrictions, this initiative is seen to increase control over the sector, and even establish a parallel civil society, creating a false appearance of cooperation between the state and CSOs.
After limiting foreign funding, critical and independent CSOs face further discrimination in accessing domestic sources of funding
On February 20, the parliament held the third reading of the draft law on amendments to the Law of Georgia on Grants and adopted it with 80 votes, in a fast-track procedure. Under the adopted amendments, the Government will establish a State Grant Management Agency, with authority to issue grants and normative acts and individual administrative-legal acts. The agency will be funded with 20 million GEL (6.8 million EUR) from the state budget and will employ approximately 10 people. This amount is already allocated in the country's 2025 budget.
The decision by the Georgian Dream parliament was preceded by a February 5 statement from one of the party's leaders, Mamuka Mdinaradze, where he also addressed, other restrictive proposals over media and civic sector. Before that, in September 2024, Prime Minister Irakli Kobakhidze announced the grant programme and stated that it would be open only to CSOs registered in the 'Register of Organisations Pursuing the Interests of a Foreign Power".
Provision of state support used to undermine the independence of CSOs or to interfere in their activities
Although the criteria and rules for issuing the grant have yet to be established, Kobakhidze's rhetoric indicates that funds will go only to organisations loyal to the ruling party. Moreover, it is expected that only organisations receiving less than 20% of their funding from abroad or meeting the criteria set by the Foreign Influence Transparency Law and registered in the relevant registry will be eligible for state-issued grants. Likewise, the majority of the civic sector, which opposes the policies of the ruling party, is expected to refrain from participating in this grant programme.
On the other hand, this initiative is intended to support and strengthen loyal organisations, ultimately establishing a “parallel civil society”, similar to the practices of control analysed in Azerbaijan and Belarus, that does not criticise the decisions of those in power. In addition, implementing this initiative will create a facade of cooperation between the parallel civil society and the state, and further stigmatise the other organisations. As a result, the space for dialogue between civil society and the state will be taken over by organisations loyal to the government, further promoting the spread of so-called GoNGO organisations.
This constitutes a violation of the principle of providing state support in a way that ensures CSOs are independent and autonomous from the government.
Emergency funding and support for independent and critical civil society in Georgia is essential
Given the rhetoric of the ruling party, further efforts to restrict the environment in which CSOs operate are expected. The current situation presents the most challenging financial and operational challenges civil society has experienced. Emergency funding and support for independent and critical society in Georgia is essential. In response, civil society must be supported to explore alternative funding sources, such as crowdfunding or support from the private sector, to ensure their activities continue uninterrupted and their work to protect and strengthen democratic values persist.