Reforms in Georgia, with its entrenched corruption, lack of competitive industries, poor work ethic, worn-out Soviet-era infrastructure, and widespread poverty, has been considered difficult, especially in the face of a deep economic crisis and security threats, including ones from Russia.
Agriculture is a leading occupation in Georgia, whose warmer districts produce large quantities of tea and citrus fruits; tobacco, wine grapes, rice, and mulberry trees (for silk) are also grown. Sheep, pigs, and poultry are raised. Georgia is rich in minerals also. Georgia had a large and varied industrial sector. Its chief manufactures included transport equipment, electric motors, machine tools, iron and steel, railroad and mining equipment, chemicals, textiles, wine, and building materials, but many industries collapsed after independence.
Challenges: For Georgian economy to progress there are myriad internal and external challenges. Russia has been accusing Georgia of sheltering terrorists from the rebellious region of Chechnya, a charge Georgia has denied. Georgia has complained of Russian support for separatist elements in the border area of Abkhazia, over which the central government in Tbilisi has little control. Georgians want Russia to withdraw two Soviet-era military bases it maintains on their territory and to end support for two separatist regions
Although Georgia has abundant hydroelectric energy, it must import the bulk of its fuel due to previous faulty privatization policies and other circumstances. "Moscow also controls the vital electric and natural gas grids, acquired by state-controlled Russian companies RAO UES and Gazprom in 2003. Similar to the relationship between the U.S. And Central American economies, close to 1 million Georgians are repatriating their earnings to their homeland to the tune of up to one-fourth of Georgian GDP. Russia also uses the visa-free travel scheme from Georgia to encourage Abkhaz and Adjaran separatism" ('Our Challenge in Georgia' A17).
The new regime is struggling to attract honest, competent and educated people to the government, deliver pensions, salaries and other social safety payments on time and restarting economic growth and foreign investment amid deep economic crisis. The government is also encouraging economic reform, institution building, and anti-corruption measures through ongoing privatization and deregulation
The State Department should foster anew economic relationship with the Georgian government. Washington should expand cooperation with Georgia on providing security for Baku-Tbilisi-Ceyhan oil and gas Main Export Pipeline.
Comparison
Elections in transitional countries are often scheduled by the authoritarian ruler and rigged to ensure reelection of the ruling party. These types of elections raise a different set of challenges. Democrats facing the prospect of a stolen election turn to the United States and Europe for help in somehow making the election fair as is the case with Georgia & Azerbaijan. Washington particularly ensured stability in the Caucasus as essential to its longtime projects of pipelines stretching from the Caspian to the Mediterranean through Azerbaijan, Georgia and Turkey. The project was specially became important for the economic progress of the country."The gas coming ashore from the Shah Deniz field will be processed at the Sangachal terminal before being piped along the new Baku-Tbilisi-Erzerum 686km pipeline to Turkey with off-takes in both Azerbaijan and Georgia. Georgia and Turkey stand to earn substantial revenues through transit fees and royalties. Azerbaijan's President Ilham Aliyev says he expects the major oil and gas fields and pipelines...
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