Georgia's economy: post-revolutionary development and post-war difficulties

Abstract

The article discusses the problems of the successes and the failures of Georgia's post-revolutionary economic development. Amongst the positive results, the significant increase of national budget revenues and the overcoming of the energy crises should be emphasized, both of which were achieved by the fight against domestic internal corruption. At the same time, mistakes in terms of both the building of a democratic state and economic policy were made. Making the judiciary an appendage to the General Prosecutor's Office and the executive branch, the government's control of the media and its defiance of property rights, including extra-judicial decisions to demolish privately owned residential houses, are among the most serious errors of Georgia's post-revolutionary development. Despite its anti-Russian rhetoric, the new government has openly welcomed Russian investments into Georgia's economy. After the Russian aggression and under the impact of the global financial crisis, Georgia finds itself in a more complicated situation. International financial aid of US$4.55 billion, which was pledged at the international donors' conference held in Brussels in October 2008 for the reconstruction of post-war Georgia, may enable the country to avoid the banking and currency crisis.