Country report: Georgia

     Georgia has had a transition to a market-oriented economy, changing the main social and economic trends. In addition, civil war and internal conflicts have led to an economic crisis in the republic.
Large enterprises have closed, while manufacturing, production and extraction of natural resources such as manganese have also slowed down or stopped. As a result, the level of unemployment has reached 75% in many areas.

     Research centres and scientific institutions have been unable to ensure adequate wages for their employees, and many academics receive wages of as little as $20 a month. These people, although employed, can be regarded as poor.

     There is an increasing polarisation in society, with a widening gap between the rich and the poor. Around 60% of the country’s population currently lives in poverty.

     In many areas, the country is dependent on foreign humanitarian aid.

     The lack of infrastructure is also a problem. The situation is further complicated by large numbers of refugees that increase the number of unemployed and poor people.

      At the time of transition, women living in the countryside became heads of families and got actively involved in small business development in order to financially support their families. However, they lacked experience and capital. Moreover, the system of legislation did not support their efforts. Finally, corruption is a major problem for Georgia.