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About Georgia
Georgia is a small, picturesque country roughly the size of South
Carolina in the South Caucasus, situated on the east coast of the
Black Sea, bordering Turkey to the south and Russia to the north.
Georgia declared independence in 1991 at the disintegration of the
Soviet Union and is still struggling to rebuild from the collapse.
In 2004, Georgia ranked 97th out of 177 countries on the United
Nations Development Program Human Development Index.
Georgia has a long, proud history and culture dating back almost
2,500 years, infusing Georgians with a deep sense of national pride
and honor. The second-oldest Christian country, Georgia has its
own ancient alphabet and language, and boasts a rich culture steeped
in traditions of familial bonds, hospitality, food and drink, and
the arts; Georgians are renowned for their hospitality and original
national folk dance.
In the fourteen years since independence, the country has endured
civil strife and endemic corruption that has left the economy in
ruins and the people in poverty: a full 61% live below the poverty
line, and most tellingly, 23% have migrated abroad.
In the fall of 2003, Georgians began to recoup for lost time when
the peaceful protests of the Rose Revolution ousted disgraced President
Shevardnadze and ushered in the new reform-minded administration
of President Mikheil Saakashvili. These events clearly have accelerated
Georgia’s democratic transition, yet much remains to be done
before democracy can be said to have taken a firm hold. Nevertheless,
the new government’s commitment to reform and to tackle corruption
has increased confidence in the economic management of the country,
resulting in large loans by bilateral and multilateral donors. The
administration’s highly publicized crackdown on high-level
corruption has not only succeeded in attracting loans, but also
has increased revenue collection by an astounding 42% in 2004 versus
the same time frame in 2003. This has allowed the government to
make some small social improvements such as increasing pensions
and paying salaries in full and on time.
Despite many significant gains since the Rose Revolution, much
remains to be accomplished in Georgia’s transition to a democracy
and free market economy. Several factors stand in the way of economic
growth including: weak capacity of major job sectors to compete
in the export market, badly managed state-owned enterprises including
the railway and port, little to no access to finance for small and
medium sized enterprises, and a lack of market oriented skills among
entrepreneurs. Additionally, territorial conflicts, corruption,
non-transparency in the administration of taxes and customs fees,
dilapidated infrastructure, and non-reliable energy supply all act
as barriers to attracting foreign direct investment. On the social
front, the government’s expenditure of around just 1% of GDP
on public health and education places any economic or political
gains at risk.
USAID has provided nearly $774 million in humanitarian and development
aid to Georgia since assistance began in 1992. Our objectives in
Georgia are focused on building democracy, promoting regional stability,
and fostering economic growth and health services. In the next four
years, USAID programs aim to foster new attitudes and values that
encourage citizens to be responsible and accountable for their country.
The $55.5 million 2005 budget will greatly support Georgia’s
reinvigorated transition. Our four long-term objectives in the country
center on: economic growth, energy sector reform, democracy and
governance, and social and health services development. |
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Capital: Tbilisi
Population: 4,693,892 (2004 est.)
GDP: $12.18 billion
GDP real growth rate: 5.5%
GDP per capita (purchasing power parity):
$2,500
Population below national poverty line: 54%
Inflation rate: 4.8%
Ethnic Groups: Georgian 70.1%, Armenian 8.1%, Russian 6.3%, Azeri
5.7%, Ossetian 3%, Abkhaz 1.8%, other 5%
Religion: Georgian orthodox 65%, Muslim 11%, Russian Orthodox 10%,
Armenian apostolic 8%, unknown 6%
Official Language: Georgian
President: Mikheil Saakashvili
Prime Minister: Zurab Noghaideli
Ambassador to the U.S.: Levan Mikeladze
Statistics from the CIA World Factbook at:
http://www.cia.gov/
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