Economics Georgiens

cultivation of dte in Georgien, photo 1907 -

traditionally the wine turns 1915 the economy Georgiens around the tourism at the black sea, the cultivation of Zitrusfrüchten, Weintrauben, dte, the dismantling of manganese and copper as well as the yield of a small industriellen of sector , Metals, machines, chemicals and textiles produced. The country must import the majority of its power requirement, including naturgas and petroleum products. Its only substantial internal energy resources are water power.

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history in the 3. Century v. Chr. Georgien was the weapon waffenschmiede of the antique ones. In the Caucasus mountains gold, silver, copper and iron were diminished. Georgian craftsmen manufactured the swords, with which Greeks and Trojaner fought.

At Soviet times the Georgian one appliedSocialist Soviet republic as with the best living conditions. Western observers called the country Switzerland of the Caucasus. The subtropical climate made a rich harvest possible of agricultural products. Georgien was in the USSR nearly exclusive offerer of Zitrusfrüchten and dte. Georgian wine found strong paragraph.The viticulture surface rose between 1950 and 1985 of 58.000 to 128.000 hectares. Annual wine production amounted to in the middle of the 1980er years 800,000 tons. In the west of the country cattle were bred, in the east of sheep. The tourism flourished. At the coast and in the mountains holiday homes developed andSanatoriums. Well-known holidays places were Sochumi, Gagra, Pizunda, Bordschomi and Bakuriani. After the Second World War the heavy and armaments industry expanded.

A special characteristic of the Georgian economy was the personal Nebenwirtschaft. Half of agricultural production was private. 70% of the total harvestand 30% of the harvest of Zitrusfrüchten were furnished by the non-governmental sector. The productivity of the private sector lay always clearly over that of the national enterprises. Outside indications were a increased density of private motor vehicles in Georgien and the intensive travel activity of Georgian farmers, those their goods by airplane updíe markets of Russian large cities brought.


Hafen von Batumi
port of Batumi

after the dissolution of the Soviet Union suffered Georgien of all Soviet republics the heaviest restaurant collapse. The heavy industry received no more supplies. Airplane parts, military electronics, electric locomotives, computers, trucks, dte, Zitrusfrüchte, wine and manganese did not find customers.Many enterprises were shut down. Production in industry and agriculture decreased/went back. The production volume slipped until 1994 on quarters of the level of 1989. Unemployment in the capital low-read rose to 40%.

In addition a hyperinflation came. 1992 were it about 1.339% annually.To 1995 the consumer prices rose around the 7.000fache. 1993 were introduced as in place rouble a coupon currency. The course fell in only two years of 1.000 Kuponi per US Dollar on two million Kuponi per US Dollar.

Assistance of the west came only 1995 as that International Monetary Funds (IWF) Georgien of credits at height of 206 million US Dollar and Germany at a value of 50 million Marks granted. With support of the IWF and the World Bank in October 1995 the Lari (GEL) was introduced as national currency. It remained stable up to the devaluation 1998 toUS Dollar.

Economic growth remained however weak. Between 1995 and 1997 the production volume rose to approximately 30% of the level at Soviet times, until 2001 reached it about 35%. 51% of the population live today below the poverty border, 13 to 15% of the households even in extreme poverty(Statistics 2001).Professors earn 15 US Dollar in the month, civil war refugees received maximally five US Dollar monthly support. Old-age pensions were not no more paid since beginning 2003.

Until today unresolved is the current supply. Georgien can not cover its requirements of electric current alone and was always dependent on foreign supplies. 1990the supplies of electricity and the supply of the power stations with fuels from Russia, Azerbaijan and Turkmenistan were cut off on several years. The own generation of current sank between 1991 and 1994 from 13.4 billion to three billion kilowatt-hours. In the meantime the current and fuel supplies normalized themselves, but come itbecause of debts with suppliers again and again to disconnections. Georgiens own power stations fail because of modernization and maintenance lacking regularly.

The Baku Tiflis Ceyhan pipeline

the Georgian economy suffers from a large deficit of the state budget. The incomes of the public households amounted to 2001 only 15% of the gross national product. It succeededthe government not to drive the taxes. Corruption and nepotism let funds seep. Constant power failures harm the industry. Georgien translates its hopes for an economic recovery for the development of an international transportation passage by the black sea ports potentiometers and Batumi, a large oil pipeline of the Azerbaijani Baku Low-read after Ceyhan in Turkey, the Baku Tiflis Ceyhan pipeline, as well as those parallel to it running south Caucasus pipeline, the gas to transport is. An increasing trade deficit, the problems of the tax collection, the corruption and separatist conflicts, collude the economical picture. Nevertheless foreign investments would know a higher economic growth stimuli.


Georgiens economic recovery became by devastating civil wars around the Staatsmacht, which obstructs regions Abchasien and Südossetien, a persistently weak infrastructure, reform resistance on the part of corrupt and reactionary groups as well as the Russian and asiatic economic crisis. With credits of the International Monetary Fund and the World Bankthe Georgian government brought the economy since 1995 to new growth: The inflation knew diminished, the goals set by the world currency rear reached and a stable national currency, which Lari are introduced. The release of the bread price, the preparation of the second stage for the connection and the world trade organization (World Trade Organization), the conclusion of the contract over the oil pipeline of Baku over low-read after Ceyhan at the Mediterranean let for further growth hope. But the effects of the economic crisis of Russia and Asia made a line by the calculation.

Georgiens economics made progress with the structural reforms. Everything Prices and the largest part of the trade were liberalisiert, cut for that influence of the state, further law reforms stand on the agenda. More than 10,500 small enterprises were denationalized and more than 1,200 middle and larger enterprises into corporations were converted. The privatisation of companies in government propertyone continues to advance, one controls however more exactly in the meantime.

Because of being missing investments Georgiens is transport and communication infrastructure in a very bad condition. Telecommunications is partially denationalized, partially further in national hand.

Georgiens energy sector is in a critical state. Shortening the energy supplies have in thatPopulation large displeasure causes. 1998 began to denationalize the government the energy distribution and power production. In the meantime the energy market is to a large extent in Russian hand. The Russian energy enterprise Itera possesses participations of the majority at eleven Georgian gas works, under it that the capital, TbilGazi. In May 2003 Georgien agreed upon andthe Russian company Gazprom a strategic partnership. Afterwards Gazprom is to recondition the Georgian pipeline system and develop and for it control of the gas distribution of Georgiens to receive. In August 2003 the Russian enterprise acquired RAO Unified Energy of system 75% of the portions on the Tifliser of electricity enterprise Telasi,the Russian Evraz getting thing in March 2005 the hydro-electric power plant Wartsiche.

Georgiens foreign debts amounted to 2003 1.7 billion US Dollar. 40% of the money came from the World Bank, the international currency rear (IWF) and the European bank for reconstruction and development. Further 60% became inbilateral contracts borrowed by states of the GUS, above all Turkmenistan.

In order to encourage and support the reform process, the European giver countries and the USA informed themselves to shift the auxiliary emphasis about humanitarian projects on technical and programs for the development from institutions to. ThoseDelegation of legal and technical advisors is supplemented by advanced training for parliamentarians, law officers and economic advisers. Georgien depends however also further on humanitarian assistance, that is intended for needy humans.

Wine production in Georgien

agricultural production recovers slow from devastations of the civil war andthe structural changes as a result of breaking the Soviet Union. Cattle production experiences a resurgence, even if it is periodically illness-weakened. Domestic grain production rises, requires however lasting political and infrastructural improvements, in order to secure an appropriate distribution and profit for the farmers. Dte, Haselnüsse and Zitrusfrüchteproduktionby the conflict in Abchasien, an enormously fruitful area, enormously suffered. With Zitrusfrüchten the production volume still is on only 12% of the level 1989 ago, with dte even on 5%.

Although about 30% of the Georgian economy are agriculturally coined/shaped, spoils on the fieldsthe harvest, because the farmers can to bring or to costs pay not have their products either not on the market, which drive the market prices over those from imported goods. With the help of the European union Georgien undertook steps, around the quality and the marketing of its traditional To improve sources of mineral water. In the country more than 2,400 mineral waters give, from which approximately 500 admits are. The water from the health resort Bordschomi became since 1995 the export hit to Russia, Europe and the USA.

The Georgian wine production, which decreased/went back into the 1990er to 100.000 tons,since 1994 investors tightened and with modern technology one equipped. The wine wine cellars found connection to the international level and could their paragraph in the last years again increase. Largest customer of Georgian wine is Russia (import: 27,3 million US Dollar in the year 2003), followed of that Ukraine (3.7 million US Dollar) and the USA (1.58 million US Dollar). The European union had officially not recognized Georgian wine until 2003 (import: 327,000 US Dollar in the year 2003). Since February 2004 Georgian wines without restrictions can be imported into the European union.

The tourism Georgiens liesstill at the soil. The civil war and the conflict in the neighbouring Chechnya many tourists deterred, the traditional skiing areas to visit health resorts and nature parks in the Caucasus and at the black sea. Came to Soviet times if annually about 1.6 million tourist to Georgien, then there was 1999only 350.000. Above all good-earning Russian tourists travel in the meantime to Western European holidays goals.2005 registered Georgien again an easy rise of the tourists. Above all Armenians and the Ukrainer were interested in inexpensive holidays places in the Georgian black sea coast.

new economic policy

president Mikhail Saakaschwilitried to bring to Georgien with an economic liberalisation growth course. At the 1. June 2004 he appointed the Russian entrepreneur Kacha Bendukidse the minister of economics. Bendukidse calls its position ultra liberal. The Soviet mentality in the economy he announced the fight. It wants itselfbegin in Georgien for a Deregulierung of the economy, comprehensive privatisations, a reduction of the taxations of enterprises and a fast economic growth.

In June 2004 the government submitted new tax laws, which plan an abolishment of twelve taxes and a reduction of the income taxes. Later it designated one montha list of 372 state enterprises and - properties, which are to be sold between 2004 and 2006, among them the national coin, the Georgian Telekom, which international airport low-read, the ports potentiometers and Batumi, the aircraft plants Tbilaviamscheni and the metallurgical iron and steel factory Rustawi. Establishments of an enterprise were simplified clearly, as the number of the activities subject to approval of 909 to 159 reduces, which were shortened costs of operatingconditioned notices lowered as well as the time and costs for the registration by property.

First successes are visible. The tax receipts Georgiens have themselves between March 2004and October 2005 more than doubles. After one in September 2005 Georgien occupied published annual report of the World Bank with restaurant economics the first place in the GUS and the second place world-wide.


  • gross national product - Kaufkraftparität: 14,45 billion US Dollar (2004)
  • gross national product - material rate of growth:9.5% (2004)
  • gross national product - per head: Kaufkraftparität - 3,100 US Dollar (2004)
  • gross national product - composition after sector: Agriculture: 20.5%, industry: 22.6%, service: 56.9% (2004)
  • population below the poverty border: 54% (2001)
  • inflation rate (consumer prices): 5.5% (2004)
  • Arbeitskräftepotenzial: 2,1 million (2001)
  • workers - after occupation: Industry 20%, agriculture 40%,Service 40% (1999)
  • unemployment ratio: 17% (2001)
  • budget: Incomes: 671,7 million US Dollar, expenditures: 804,7 million US Dollar, including expenditures on capital assets (2004)
  • agriculture products: Zitrusfrüchte, Weintrauben, dte, Haselnüsse, vegetable, cattle
  • industry: Steel, airplanes, machine tools, electrical devices, mining industry (manganese, copper), chemicals, wood products, wine
  • industrial production Wachtstumsrate: 3% (2000)
  • electricity production: 6,732 billion a KW/H(2002)
  • Electricity consumption: 6,811 billion a KW/H (2002)
  • electricity export: 300 million a KW/H (2002)
  • electricity import: 850 million a KW/H (2002)
  • exports: 904,4 million US Dollar (2004)
  • exports - economic goods: Scrap metal, machines, chemicals, fuel re-exportation, Zitrusfrüchte, dte, wine
  • export partner: Turkey 28.1%, Russia 9.7%, Spain 7.9%, Turkmenistan 7.5%, the USA 7.1%, Armenia 5.3%, Greece 5% (2004)
  • imported goods: 1,806 billion US Dollar (2004)
  • imported goods - economic goods: Fuel, machine equipment and spare parts, grain and other food, pharmaceuticals
  • import partners: The USA 14.8%, Turkey 13.6%, Russia 11%, Germany 7.5%, Great Britain 6.5%, Azerbaijan 6.2%, Ukraine 5.3%, Italy 4.1% (2004)
  • foreign debts: 1,8 billion US Dollar (2002)
  • economic aid -Receiver: 150 million US Dollar (2000)
  • currency: 1 Lari (GEL) = 100 Tetri
  • rate of exchange: Lari for 1 US Dollar - 1.9167 (2004), 2.1457 (2003), 2.1957 (2002), 2.073 (2001), 1.9762 (2000), 2.0245 (1999)
  • financial year: Calendar year

between 1992 and 2000 lay the portion of the public expenditures for


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