Ex-post evaluation of AFD policy-based loans in Georgia

The evaluation covers AFD support through PBL (policy-based loans) to Georgia’s social welfare policies since 2016, in two main phases: i) a non-targeted multisectoral budget support programme, co-financed with the World Bank and providing technical assistance to support the pension reform and the creation of a dedicated agency; ii) a three-year Health and Social Welfare PBL, structured around three pillars related to social welfare reform, later extended to include a dedicated COVID-19 component. Technical Assistance (TA) for both PBLs was provided through Expertise France.

The two PBLs intervened at different stages of the policy reform process. One intervened at a mature stage (pensions) and the other at a relatively early stage (e.g., disability and mental health) and in an area lacking policy consensus (IDPs). Under the pensions PBL, AFD support under the PBL, and especially operational TA provided by national and international experts made an important contribution to getting the Agency up and running in a short time. On the social welfare PBL, high-level strategic dialogue on what direction to take was not needed (policy course was largely set); hence, most policy dialogue was of a practical or operational, not strategic, nature. Technical policy dialogue made concrete contributions to, e.g., elaborating the mental health strategy, promoting the bio-psycho-social approach to disability classification, and advocating for the needs-based approach to support for IDPs, piloting disability, performing mental health surveys for IDPs.

PBLs have proven in Georgia to be a valuable tool to create opportunities for dialogue on specific policy issues, mostly at tactical rather than strategic level, identify needs for TA and support the implementation of reforms in the areas of pensions and social welfare.