Summary 

Regardless of the reforms carried out by the central government over the years in local self-government, the situation is still difficult and the necessity of  significant reforms is still on the agenda. Observing the past years has shown us, that divergence still remains as main issue between the central and the local authorities. There are also many problems such as: inadequacy of troublesome issues in property and finances, local government and local business sector inefficiency during the cooperation, as well as low involvement of citizens in solving local issues, the lack of local innovative views that create important problems when attracting domestic and foreign investments in local self-government. Although local government financial independence is guaranteed by the Constitution and other laws, there is still a lot to do in the way of local self-government in order  to gain  budget-financial independence. Local self-government has been given different types of financial resources from the central budget for fulfilling their powers, which are in the range of 8-10% of the state budget. In this regard, there are important problems in local self-government of Georgia and it is necessary to introduce European experience in these areas. The central government is obliged to share the experience of foreign developed countries in the management of municipalities and adopt such laws that will definitely facilitate the rapid economic development of local self-government.

World practice demonstrates that if socio-economic development of local self-government does not occur, this will create crucial problems for the development of economy of the country. The necessity of development of local self-governments is especially at this stage on the agenda as Georgia has signed an Association Agreement with the European Union, which imposes certain obligations to our country. Only quick reforms and the high quality involvement of local citizens will provide efficient and quick solving of existing problems.