GEORGIA

GENERAL DATA
Area: 69,700 thousand square kilometers
Population: 4,730,900 (83.8% Georgian, 6.5% Azeri, 5.7%, Armenian, 1.5% Russian, 2.5% others)
Capital: Tbilisi
President: Mr. Mikheil Saakashvili
Religion: Orthodox Christianity (82%)
Gross domestic product based on purchasing-power-parity (PPP) per capita GDP: $4,863

GOVERNMENT

Georgia is a democratic semi-presidential republic, with the President as the head of state, and Prime Minister as the head of government. The executive branch of power is made up of the President and the Cabinet of Georgia. The Cabinet is composed of ministers, headed by the Prime Minister, and appointed by the President. Notably, the ministers of defense and interior are not members of the Cabinet and are subordinated directly to the President of Georgia.

Mikheil Saakashvili is the current President of Georgia after winning 53.47% of the vote in the 2008 election. Lado Gurgenidze has been Prime Minister since November 22, 2007. Legislative authority is vested in the Parliament of Georgia. It is unicameral and has 150 members, known as deputies, from which 75 members are proportional representatives and 75 are elected through single-member district plurality system, representing their constituencies. Members of parliament are elected for 5 five-year term. Five parties and electoral blocs had representatives elected to the parliament in the 2008 elections: the United National Movement (governing party), the Electoral Bloc The Joint Opposition, the Christian-Democrats, the Labour Party and Republican Party.

Despite considerable progress made since the Rose revolution Georgia is still not a full-fledged democracy. Political system remains in the process of transition, with frequent adjustments to the balance of power between the President and Parliament, and proposals ranging from transforming the country into parliamentary republic to re-establishing the monarchy. Observers note the deficit of trust in relations between the Government and the opposition. Different opinions exist regarding the degree of political freedom in Georgia. President Saakashvili believes that the country is essentially free, many opposition leaders claim that Georgia is a dictatorship, and Freedom House puts Georgia in the group of partly free countries, along with countries like Turkey and Bosnia.

Georgia maintains good relations with its direct neighbours Armenia, Azerbaijan and Turkey and participates actively in regional organizations, such as the Black Sea Economic Council and the GUAM. Georgia also maintains political, economic and military relations with Japan, South Korea, Israel, Ukraine and many other countries. The growing US and European Union influence in Georgia, notably through proposed EU and NATO membership, the US Train and Equip military assistance program and the construction of the Baku-Tbilisi-Ceyhan pipeline, have frequently strained Tbilisi's relations with Moscow. Georgia's decision to boost its presence in the coalition forces in Iraq was an important initiative.

Georgia is currently working to become a full member of NATO. In August 2004, the Individual Partnership Action Plan of Georgia was submitted officially to NATO. On October 29, 2004, the North Atlantic Council of NATO approved the Individual Partnership Action Plan (IPAP) of Georgia and Georgia moved on to the second stage of Euro-Atlantic Integration. In 2005, by the decision of the President of Georgia, a state commission was set up to implement the Individual Partnership Action Plan, which presents an interdepartmental group headed by the Prime Minister. The Commission was tasked with coordinating and controlling the implementation of the Individual Partnership Action Plan.

On February 14, 2005, the agreement on the appointment of Partnership for Peace (PfP) liaison officer between Georgia and the North Atlantic Treaty Organization came into force, whereby a liaison officer for the South Caucasus was assigned to Georgia. On March 2, 2005, the agreement was signed on the provision of the host nation support to and transit of NATO forces and NATO personnel. On March 6-9, 2006, the IPAP implementation interim assessment team arrived in Tbilisi. On April 13, 2006, the discussion of the assessment report on implementation of the Individual Partnership Action Plan was held at NATO Headquarters, within 26+1 format. In 2006, the Georgian parliament voted unanimously for the bill which calls for integration of Georgia into NATO. The majority of Georgians and politicians in Georgia support the push for NATO membership. Currently, it is expected that Georgia will join NATO in 2009.

George W. Bush became the first sitting U.S. president to visit the country. The street leading to Tbilisi International Airport has since been dubbed George W. Bush Avenue. From the European commission website: President Saakashvili views membership of the EU and NATO as a long term priority. As he does not want Georgia to become an arena of Russia-US confrontation he seeks to maintain close relations with the United States and European Union, at the same time underlining his ambitions to advance co-operation with Russia. On October 2, 2006, Georgian and the European Union signed a joint statement on the agreed text of the Georgia-European Union Action Plan within the European Neighbourhood Policy (ENP). The Action Plan was formally approved at the EU-Georgia Cooperation Council session on November 14, 2006 in Brussels.

On February 2, 2007, Georgia officially became the most recent regional member of the Asian Development Bank. They currently hold 12,081 shares in the bank, 0.341 percent of the total.

ECONOMY

Archaeological research demonstrates that Georgia has been involved in commerce with many lands and empires since the ancient times, largely due its location on the Black Sea and later on the historical Silk Road. Gold, silver, copper and iron have been mined in the Caucasus Mountains. Wine making is a very old tradition. Throughout Georgia's modern history agriculture and tourism have been principal economic sectors, due to the country's climate and topography. For much of the 20th century, Georgia's economy was within the Soviet model of command economy. Since the fall of the USSR in 1991, Georgia embarked on a major structural reform designed to transition to a free market economy. However, as with all other post-Soviet states, Georgia faced a severe economic collapse. The civil war and military conflicts in South Ossetia and Abkhazia aggravated the crisis. The agriculture and industry output diminished. By 1994 the gross domestic product had shrunk to a quarter of that of 1989.

The first financial help from the West came in 1995, when the World Bank and International Monetary Fund granted Georgia a credit of USD 206 million and Germany granted DM 50 million. As of 2001 54% of the population lived below the national poverty line but by 2006 poverty decreased to 34%. In 2005 average monthly income of a household was GEL 347 (about 200 USD). Since early 2000s visible positive developments have been observed in the economy of Georgia. In 2007 Georgia's real GDP growth rate reached 12%, making Georgia one of the fastest growing economies in Eastern Europe. The World Bank dubbed Georgia "the number one economic reformer in the world" because it has in one year improved from rank 112th to 18th in terms of ease of doing business. However, the country has high unemployment rate of 12.6% and has fairly low median income compared to European countries. IMF 2007 estimates place Georgia's nominal GDP at US$10.3 billion. Georgia's economy is becoming more devoted to services (now representing 65% of GDP), moving away from agricultural sector ( 10.9%).

The 2006 ban on imports of Georgian wine to Russia, one of Georgia's biggest trading partners, and break of financial links was described by the IMF Mission as an "external shock", In addition, Russia increased the price of gas for Georgia. This was followed by the spike in the Georgian lari's rate of inflation. The National Bank of Georgia stated that the inflation was mainly triggered by external reasons, including Russia’s economic embargo. The Georgian authorities expected that the current account deficit the embargo would cause in 2007 would be financed by "higher foreign exchange proceeds generated by the large inflow of foreign direct investment" and an increase in tourist revenues. The country has also maintained a solid credit in international market securities. Georgia is becoming more integrated into the global trading network: its 2006 imports and exports account for 10% and 18% of GDP respectively. Georgia's main imports are natural gas, oil products, machinery and parts, and transport equipment. Since coming to power Saakashvili administration accomplished a series of reforms aimed at impoving tax collection. Among other things a flat income tax was introduced in 2004 As a result budget revenues have increased fourfold and once large budget deficit has turned into surplus.

Georgia is developing into an international transport corridor through Batumi and Poti ports, an oil pipeline from Baku through Tbilisi to Ceyhan, the Baku-Tbilisi-Ceyhan pipeline (BTC) and a parallel gas pipeline, the South Caucasus Pipeline. Tourism is an increasingly significant part of the Georgian economy. About a million tourists brought US$313 million to the country in 2006. According to the government, there are 103 resorts in different climatic zones in Georgia. Tourist attractions include more than 2000 mineral springs, over 12,000 historical and cultural monuments, four of which are recognised as UNESCO World Heritage Sites (Bagrati Cathedral in Kutaisi and Gelati Monastery, historical monuments of Mtskheta, and Upper Svaneti).

GEOGRAPHY

Georgia is in the South Caucasus region of Eurasia, straddling Western Asia and Eastern Europe. Georgia's northern border with Russia roughly runs along the crest of the Greater Caucasus mountain range – a commonly reckoned boundary between Europe and Asia. In Philip Johan von Strahlenberg's 1730 definition of Europe, which was used by the Russian Tsars and which first set the Urals as the eastern border of the continent, the continental border was drawn from the Kuma-Manych Depression to the Caspian Sea, including Georgia (and the whole of the Caucasus) in Asia.

Mountains are the dominant geographic feature of Georgia. The Likhi Range divides the country into eastern and western halves. Historically, the western portion of Georgia was known as Colchis while the eastern plateau was called Iberia. Due to a complex geographic setting, mountains also isolate the northern region of Svaneti from the rest of Georgia. The Greater Caucasus Mountain Range separates Georgia from the North Caucasian Republics of Russia. The main roads through the mountain range into Russian territory lead through the Roki Tunnel between South and North Ossetia and the Darial Gorge (in the Georgian region of Khevi). The Roki Tunnel was vital for the Russian military in the 2008 South Ossetia War.

The southern portion of the country is bounded by the Lesser Caucasus Mountains. The Greater Caucasus Mountain Range is much higher in elevation than the Lesser Caucasus Mountains, with the highest peaks rising more than 5,000 meters (16,400 ft) above sea level. The highest mountain in Georgia is Mount Shkhara at 5,201 meters (17,059 ft), and the second highest is Mount Janga (Jangi-Tau) at 5,051 meters (16,572 ft) above sea level. Other prominent peaks include Kazbegi (Kazbek) at 5,047 meters (16,554 ft), Tetnuldi (4,974 m./16,319ft.), Shota Rustaveli (4,960 m./16,273ft.), Mt. Ushba (4,710 m./15,453ft.), and Ailama (4,525 m./14,842ft.). Out of the abovementioned peaks, only Kazbegi is of volcanic origin. The region between Kazbegi and Shkhara (a distance of about 200 km. along the Main Caucasus Range) is dominated by numerous glaciers. Out of the 2,100 glaciers that exist in the Caucasus today, approximately 30% are located within Georgia.

The term, Lesser Caucasus Mountains is often used to describe the mountainous (highland) areas of southern Georgia that are connected to the Greater Caucasus Mountain Range by the Likhi Range. The area can be split into two separate sub-regions; the Lesser Caucasus Mountains, which run parallel to the Greater Caucasus Range, and the Southern Georgia Volcanic Highland, which lies immediately to the south of the Lesser Caucasus Mountains. The overall region can be characterized as being made up of various, interconnected mountain ranges (largely of volcanic origin) and plateaus that do not exceed 3,400 meters (approximately 11,000 ft) in elevation. Prominent features of the area include the Javakheti Volcanic Plateau, lakes, including Tabatskuri and Paravani, as well as mineral water and hot springs. The Southern Georgia Volcanic Highland is a young and unstable geologic region with high seismic activity and has experienced some of the most significant earthquakes that have been recorded in Georgia.

The Voronya Cave (aka Krubera-Voronia Cave) is the deepest known cave in the world. It is located in the Arabika Massif of the Gagra Range, in Abkhazia. In 2001, a Russian–Ukrainian team had set the world depth record for a cave at 1,710 metres. In 2004, the penetrated depth was increased on each of three expeditions, when a Ukrainian team crossed the 2000-meter mark for the first time in the history of speleology. In October 2005, an unexplored part was found by the CAVEX team, further increasing the known depth of the cave. This expedition confirmed the known depth of the cave at 2,140 (± 9) metres.

Two major rivers in Georgia are the Rioni and the Mtkvari.