BASIC INFORMATION

Full Country Name:�Georgia


Country Profile:

Area: 69,700 sq km
Population: 4.4 million
Capital City: Tbilisi (population: 1.5 million)
People: 71% Georgian (including subgroups of Svanetians, Mingrelians, Ajars), 7.7% Armenian, 6.5% Russian, 6% Azeri, 3% Ossete, 1.8% Abkhaz
Languages: Georgian 71% (official), Russian 9%, Armenian 7%, Azeri 6%, other 7% note: Abkhaz (official in Abkhazia)
Religion(s): Georgian Orthodox 65%, Muslim 11%, Russian Orthodox 10%, Armenian Apostolic 8%, unknown 6%
Currency: Lari
Major political parties: National Movement(currently in power), New Rights, Labour, Industry will save Georgia, Republican's, Democratic Front, Georgia's Way.
Government: Republic
Head of State: President Mikheil Saakashvili
Prime Minister: Zurab Noghaideli
Foreign Minister: Gela Bezhuashvili
Membership of international groupings/organisations: BSEC, CCC, CoE, CE (guest), CIS, EAPC, EBRD, ECE, FAO, IAEA, IBRD, ICAO, IDA, IFAD, IFC, IFRCS, ILO, IMF, IMO, Inmarsat, Interpol, IOC, IOM (observer), ISO (correspondent), ITU, OPCW, OSCE, PFP, UN, UNCTAD, UNESCO, UNIDO, UPU, WHO, WIPO, WMO, WToO, WTrO (applicant)

GEOGRAPHY

Location: South-western Asia, bordering the Black Sea, between Turkey and Russia
Geographic co-ordinates: 42 00 N, 43 30 E
Area:
total: 69,700 sq km
land: 69,700 sq km
water: 0 sq km
Land boundaries:
total: 1,461 km
border countries: Armenia 164 km, Azerbaijan 322 km, Russia 723 km, Turkey 252 km
Coastline: 310 km
Maritime claims: NA
Climate: warm and pleasant; Mediterranean-like on Black Sea coast
Terrain: largely mountainous with Great Caucasus Mountains in the north and Lesser Caucasus Mountains in the south; Kolkhet'is Dablobi (Kolkhida Lowland) opens to the Black Sea in the west; Mtkvari River Basin in the east; good soils in river valley flood plains, foothills of Kolkhida Lowland.
Elevation extremes:
lowest point: Black Sea 0 m
highest point: Mt'a Mqinvartsveri (Gora Kazbek) 5,048 m
Natural resources: forests, hydropower, manganese deposits, iron ore, copper, minor coal and oil deposits; coastal climate and soils allow tea and citrus to grow
Land use:
arable land: 9%
permanent crops: 4%
permanent pastures: 25%
forests and woodland: 34%
other: 28% (1993 est.)
Irrigated land: 4,000 sq km (1993 est.)
Natural hazards: earthquakes

HISTORY

's recorded history spans over 4,000 years. was well known to both the ancient Romans and Greeks and featured in the Greek legend of Jason and the Argonauts, who travelled there in search of the Golden Fleece. Much of early history was linked to the struggle between Rome and (), and later the Ottoman and Mongolian empires. The Georgians converted to Christianity in 337 AD.

's long line of kings and queens helped shape modern . King David the Builder and his daughter Queen Tamar the Great are amongst the most famous. In 1122 AD King David made Tbilisi ’s capital and the reign of Queen Tamar was known as the golden era – the peak of Georgia’s cultural and military strength.

On January 8, 1801, Tsar Paul I of signed a decree on the incorporation of within the Russian Empire. During the civil war which followed the Russian Revolution of October 1917, several outlying Russian territories declared independence. established the independent Democratic Republic of Georgiaon May 26, 1918. It was recognised by Soviet Russia (Treaty of Moscow (1920)) and the major Western powers in 1921. In February 1921 the Red Army invaded and after a short war occupied the country. The Georgian government was forced to flee. Guerrilla resistance between 1921-1924 was followed by a large-scale though unsuccessful uprising in August 1924.

In 1936, became the Georgian Soviet Socialist Republic. During World War II, contributed almost 700,000 fighters to the Red Army, half of whom were killed. Stalin's successful appeal for patriotic unity eclipsed Georgian nationalism during the war and diffused it in the years following. On March 9, 1956, hundreds of Georgian students were killed when they demonstrated against Khrushchev. Towards the end of the late 1980s there were increasingly violent clashes between the Communist authorities, the resurgent Georgian nationalist movement and nationalist movements in 's minority-populated regions (notably South Ossetia). On April 9, 1989, Soviet interior troops were used to break up a peaceful demonstration outside the modern day Parliament building in Tbilisi. Twenty Georgians were killed and hundreds wounded. The event radicalised Georgian politics, prompting many - even some Georgian communists - to conclude that independence was preferable to continued Soviet rule.

Post-communist , 1990 – 2003

On October 28, 1990, opposition pressure resulted in open, multiparty and democratic parliamentary elections. These were won by the "Round Table" coalition headed Zviad Gamsakhurdia, who became the head of the Supreme Council of the Republic of Georgia. On March 31, 1991, Gamsakhurdia organised a referendum on independence, which was approved by 98.9% of the votes. Formal independence from the Soviet Union was declared on April 9, 1991.

Gamsakhurdia (deceased 1994) was elected president on May 26, 1991 with 86% of the vote. He was subsequently widely criticised for what was perceived to be an erratic and authoritarian style of government, with nationalists and reformists joining forces in an uneasy anti-Gamsakhurdia coalition. The situation came to a head on December 22, 1991, when armed opposition groups launched a violent military coup d'etat, which led to Gamsakhurdia to flee . The new government invited Eduard Shevardnadze, formerly Soviet Foreign Minister under Gobachev, to become the head of a State Council - in effect, president - in March 1992.

POLITICS

A powerful coalition of reformists headed by Mikheil Saakashvili, Nino Burjanadze and Zurab Zhvania formed to oppose Shevardnadze's government in the November 2, 2003 parliamentary elections. The elections were widely regarded as rigged. In response, the opposition organised massive demonstrations in the streets of Tbilisi. After two tense weeks, Shevadnadze resigned on November 23, 2003, and was replaced as president on an interim basis by Burjanadze. These events became known as the Rose Revolution.

On January 4, 2004 Mikheil Saakashvili won the Presidential Elections with 96% of the votes cast. Constitutional amendments were put through Parliament in February strengthening the powers of the President to dismiss Parliament and creating the post of Prime Minister. Zhvania was appointed as Prime Minister and Burjanadze Speaker of Parliament. Following the death of Zhvania in 2005, Zurab Noghaideli became Prime Minister.

With continuing Russian political and economic support to separatist governments in Abkhazia and South Ossetia, Russia/Georgia relations remain tense. Russian troops have a role as peacekeepers in the conflict regions. The conflicts remain unresolved and Saakashvili's public pledge to restore ’s territorial integrity remains a source of tension with the separatist regions and .

Despite a clear record of results President Saakashvili is still under pressure to continue delivering his far reaching agenda of reforms. Both Western Governments and international NGOs have concerns over the human rights situation (particularly in the penitentiary system), unemployment, judicial reform, corruption, and the continuing tension over territorial integrity.

INTERNAL DISPUTES

Territorial integrity remains President Saakashvili's main goal. On taking office he made it clear that the reintegration process should be completed rapidly.

Ajara. Relations between the Georgian government and semi-separatist Ajarian leader Aslan Abashidze deteriorated rapidly in 2004, with Abashidze rejecting Saakashvili's demands for the Tbilisi government to extend its power in Ajaria. Saakashvili's ultimatums eventually forced Abashidze to resign and flee for Moscow in 2004, and Ajara is now a fully integrated part of .

Abkhazia. In February 1992, the provisional Georgian Military Council announced ’s return to its 1921 constitution. The Abkhaz Supreme Soviet was concerned that Abkhazia’s status was not adequately taken into consideration and so a draft treaty outlining plans on federal relations was sent to Tbilisi. Tbilisi did not respond and in July 1992 the Abkhaz Parliament reinstated the 1925 Abkhaz Constitution.

On 14 August 1992 Georgian armed forces entered the Gali region of Abkhazia, ostensibly to rescue thirteen government hostages and secure the rail line to . However, the troops advanced towards Sukhumi and attacked Abkhaz government buildings. From summer 1992 to summer 1993, Georgian troops controlled much of Abkhazia, including Sukhumi, while fighting continued, causing great civilian hardship. On 27 July 1993, mediated an agreement in Sochi for a cease-fire and the phased demilitarisation of Abkhazia. However, on 16 September Abkhaz troops broke the cease-fire and opened an all-front surprise offensive from Gudauta, north of Sukhumi, with support from North Caucasus volunteers. After eleven days of intense fighting, they controlled almost all Abkhazia, with the exception of the upper gorge of the Kodori river. Most ethnic Georgians fled. Georgian authorities state – with the backing of several OSCE declarations – that this was the result of ethnic cleansing by Abkhaz forces.

The May 1994 Moscow Agreement, which formally ended the military conflict. was signed under UN auspices. The Moscow Agreement, facilitated by provided for a ceasefire, separation of forces and the deployment of the CIS Peacekeeping Force (CIS PKF). In June 1994, the entirely Russian CIS PKF deployed in the conflict zone and their mandate has never been modified. The Moscow Agreement also provides for UN monitoring, known as the UN Observer Mission to Georgia (UNOMIG) and currently there are 121 international military observers. UNOMIG is responsible for monitoring and verifying the observance of the successive ceasefires, observing the operation of the CIS peacekeeping force and to contribute to conditions conducive to the safe and orderly return of refugees and displaced persons. The UN also chairs high-level negotiations between the Georgians and the Abkhaz within the “Geneva Process”.

The UN peace process is supported by the Friends of the Secretary-General (FOSG), and consists of , US, , , and . There has been little progress on agreeing the outlines of a comprehensive political settlement based on a possible division of constitutional competences between Georgia and Abkhazia. Progress on the return of refugees and improving the security environment has also been slow.

Although some Georgian internally displaced persons (IDPs) from the conflict have returned to Gali district, an estimated 2000,000 IDPs remain in temporary accommodation, awaiting a political settlement that would guarantee their safety. The Georgian Government has often linked any political negotiation with the return of IDPs ensuring that they remain a poignant reminder of the unresolved conflicts.

In 2006 the Georgian Government reaffirmed their control of the upper Kodori valley (also known as upper Abkhazia) and installed the local Georgian government which had been exiled during the 1992/3 campaign. The Government has pledged to redevelop the area under its control and has built schools, hospitals and entertainment facilities.

South Ossetia. South Ossetia was granted the status of an autonomous region (oblast) in the Georgian Soviet Socialist Republic in 1923. In spring 1992, fighting escalated, between Georgian and Ossetian forces. Yeltsin and Shevardnadze signed a ceasefire agreement in Sochi on 24 June 1992. The devastation resulting from the war included over 1,000 dead, 100 missing, extensive destruction of homes and infrastructure, and many refugees and IDPs being forced to flee their homes.

A 15 km zone of conflict (radiating from the centre of Tskhinvali) was established. On the ground, the authorities of the former oblast maintained control over the districts of Tskhinvali, Java, Znauri, and parts of Akhalgori. The Tbilisi central government controlled the rest of Akhalgori and several ethnic Georgian villages in the Tskhinvali district.

The Sochi Agreement also set up the Joint Control Commission (JCC), a quadrilateral body with Georgian, Russian, North and South Ossetian representatives, plus participation from the Organisation for Security and Co-operation in Europe (OSCE). The JCC was created to supervise the observance of the agreement, draft and implement conflict settlement measures, promote dialogue and political settlement, devise and carry out measures to facilitate refugee and IDP return, solve problems related to economic reconstruction in the zone of conflict, and monitor human rights. In practice, the JCC's work has tended to focus on three main issues, each with a working group: military and security matters, economic rehabilitation of the zone of conflict, and establishing conditions for the return of refugees and IDPs.

A Joint Peacekeeping Force (JPKF) was estabished in 1992made up from a battalion (around 500 men) from North Ossetia, Russia and Georgia. The JPKF is mandated to restore peace and maintain law and order in the zone of conflict and security corridor, as well as in districts and villages not in the zone of conflict. It also monitors provisions of the ceasefire agreement . A Russian major-general is in overall command of the JPKF.

Since 2003 the Georgian Government has maintained pressure on the Tskhinvali regime to reintegrate with . In 2004, mounted a limited, unsuccessful operation to restore territorial integrity. The current Georgian peace plan focuses on demilitarising the conflict zone and economic development ahead of a final political settlement. To support this approach the OSCE launched a 10 million Euro economic reconstruction project (to which the is contributing).

ECONOMY

GDP: US$ 16bn GDP per head: $1,430. Annual Growth: 7%. Inflation: 6-10% Exchange Rate: 1 $ = 1.79 Gel and 1 �= 3.10 Gel (March 2007). Major Industries: Agriculture (wine and water), financial service and construction. Major Trading Partners: CIS countries, (but see below) and .

was hit badly by the Russian financial crisis of August 1998 and it took the country a long time to start recovering. Since 2003 the economy has grown rapidly. Agriculture is the largest sector of economy, accounting for 21% of total GDP, although several other industries have high growth rate, including construction (33%), financial services (20%), communication (19%), hotels & restaurants (17%). The construction of the Baku-Tbilisi-Ceyhan (BTC) oil pipeline has also helped boost the economy.

Traditionally has exported most of its goods throughout the Former Soviet Union and to , however the recent deterioration in relationships with (the main market) has seen a halting of the export of most agricultural goods including wine and mineral water on health grounds. This has led to a rapid attempt to diversify markets that has included trade missions to and throughout the EU.

The IMF and World Bank along with the EU and US are the main donors for . The IMF programme went off-track in 2003, as the Georgian authorities failed to comply with the requirements set out by the fund. The IMF approved a new three year arrangement under the poverty reduction and growth Facilitation (PRGF) and Georgia will be able to withdraw up to $144 million from the IMF. The World Bank reduced its three-year assistance plan for in 2003, but is reassessing its country assistance strategy. It is likely to continue to come under the Economic Development and Poverty Reduction Programme (EDPRP) framework designed by together with international organisations and donors in 2003. This programme is the first such plan for , setting out the main objectives and identifying priorities for the country until 2015.

Tackling corruption and reforming the Tax codes have been major achievements. Tax revenues continue to rise following a more systematic collection system. As a result is becoming increasingly interesting to investors. There remain some concerns over the arbitration process, but this is being addressed as part of an overall judicial reform programme.

The Paris Club creditors agreed on 21 July 2004 to a restructuring of 's external debt.

INTERNATIONAL RELATIONS

’s Relations with Neighbours

President Saakashvili visited Moscow early in 2004, on his first official state visit. Since then 's relationship with has deteriorated rapidly. The relationship plummeted in 2006 following accusations of Russian involvement in shutting off gas supplies prompting concern over the political and financial cost of Russian energy supplies. Later banned Georgian and Moldavian wine and mineral water. The low point followed Tbilisi's public humiliation of suspected Russian spies that saw a backlash against Georgians in Moscow leading to mass deportations from . Relations remain tense.

Relations with the International Community<

NATO. 's foreign policy aims are to integrate into Euro-Atlantic structures. joined the Partnership for Peace (PfP) on 23 March 1994 and presented its Individual Partnership Action Plan (IPAP) at the Istanbul Summit in 2004. was successfully granted Intensified Dialogue (ID) at the NATO Foreign Ministerial meeting in New York in September 2006.

continues to support the coalition forces in , with a contribution of 850 troops which is set to increase. also has peacekeeping troops in Kosovo and has committed to send troops to .

EU. A Partnership and Co-operation Agreement (PCA) between the EU and Georgia was signed on 22 April 1996. The PCA, which entered into force on 1 July 1999, governs political, economic and trade relations between the parties and lays a basis for social, financial, scientific, technological and cultural co-operation. The Presidents of Georgia, and the Prime Minister of Azerbaijan (President Aliev was unable to travel due to ill health), met with EU Foreign Ministers on 22 June 1999 in to mark the entry into force of the PCAs. The first Co-operation Council meeting was held in October 1999. has now become a member of the ENP and has longer-term aspirations to EU membership. In November 2006 the ENP Action Plan was signed in Brussels committing to a number of significant reforms.

The EC Mission in Tbilisi (UK's EC contribution is 16%) focus on TACIS (Technical Assistance for the Commonwealth of Independent States) support mainly in the form of policy advice, institution building, training and the design of legal and regulatory frameworks.

Relations with the are strong. On 9-10 May, 2005, President George Bush visited .