TheWeekInCongress

TheWeekInCongress.com

Georgia flag

GEORGIA

The region of present-day Georgia contained the ancient kingdoms of Colchis and Kartli-Iberia. The area came under Roman influence in the first centuries AD and Christianity became the state religion in the 330s. Domination by Persians, Arabs, and Turks was followed by a Georgian golden age (11th to the 13th centuries) that was cut short by the Mongol invasion of 1236. Subsequently, the Ottoman and Persian empires competed for influence in the region. Georgia was absorbed into the Russian Empire in the 19th century. Independent for three years (1918-1921) following the Russian revolution, it was forcibly incorporated into the USSR until the Soviet Union dissolved in 1991. Despite myriad problems, some progress on market reforms and democratization has been made since then. An attempt by the government to manipulate legislative elections in November 2003 touched off widespread protests that led to the resignation of Eduard SHEVARDNADZE, president since 1995. New elections in early 2004 swept Mikheil SAAKASHVILI into power along with his National Movement Party.

LOCATION

Southwestern Asia, bordering the Black Sea, between Turkey and Russia. Slightly smaller than South Carolina

POPULATION

4,693,892 (July 2004 est.) Georgian 70.1%, Armenian 8.1%, Russian 6.3%, Azeri 5.7%, Ossetian 3%, Abkhaz 1.8%, other 5% Georgian Orthodox 65%, Muslim 11%, Russian Orthodox 10%, Armenian Apostolic 8%, unknown 6%. 260,000 (displaced from Abkhazia and South Ossetia) (2004)

NATURAL RESOURCES

Forests, hydropower, manganese deposits, iron ore, copper, minor coal and oil deposits; coastal climate and soils allow for important tea and citrus growth

NATURAL CHALLENGES

Earthquakes. air pollution, particularly in Rust'avi; heavy pollution of Mtkvari River and the Black Sea; inadequate supplies of potable water; soil pollution from toxic chemicals

ECONOMICS

Georgia's main economic activities include the cultivation of agricultural products such as citrus fruits, tea, hazelnuts, and grapes; mining of manganese and copper; and output of a small industrial sector producing alcoholic and nonalcoholic beverages, metals, machinery, and chemicals. The country imports the bulk of its energy needs, including natural gas and oil products. Its only sizable internal energy resource is hydropower. Despite the severe damage the economy has suffered due to civil strife, Georgia, with the help of the IMF and World Bank, has made substantial economic gains since 1995, achieving positive GDP growth and curtailing inflation. However, the Georgian Government suffers from limited resources due to a chronic failure to collect tax revenues. Georgia also suffers from energy shortages; it privatized the T'bilisi distribution network in 1998, but collection rates are low, making the venture unprofitable. The country is pinning its hopes for long-term growth on its role as a transit state for pipelines and trade. The start of construction on the Baku-T'bilisi-Ceyhan oil pipeline and the Baku-T'bilisi-Erzerum gas pipeline will bring much-needed investment and job opportunities.

Revenues: $603.5 million
Expenditures: $700.5 million, including capital expenditures of NA (2003 est.)

INDUSTRY

Steel, aircraft, machine tools, electrical appliances, mining (manganese and copper), chemicals, wood products, wine

Debt - external:
$1.8 billion (2002)

Economic aid - recipient:
ODA $150 million (2000 est.)

Internet hosts:
5,160 (2004)

Internet users:
150,500 (2003)

CONFLICTS

About a third of the boundary with Russia remains undelimited, and none of it demarcated, with several small, strategic segments remaining in dispute; OSCE observers monitor volatile areas such as the Pankisi Gorge in the Akhmeti region and the Argun Gorge in Abkhazia; Meshkheti Turks scattered throughout the former Soviet Union seek to return to Georgia; boundary with Armenia remains undemarcated; ethnic Armenian groups in Javakheti region of Georgia seek greater autonomy from the Georgian government; Azerbaijan protests Georgian construction at the Red Bridge crossing and several other small segments of boundary, which remain unresolved until delimitation

OTHER CONSIDERATIONS
Limited cultivation of cannabis and opium poppy, mostly for domestic consumption; used as transshipment point for opiates via Central Asia to Western Europe and Russia.

(Images and data: US CIA January 2005)