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Georgia

Georgian province

Georgian province

© Sylvie Vozková

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After the fall of the Soviet Union, the majority of countries formerly under its rule experienced a major economic downfall. Almost immediately it became clear that the small Georgian economy would not be effective in the new circumstances due to its former full dependant on Russia. Economic stability was significantly damaged by growing clientelism, corruption and a high level of gray area economics. The emerging civil war in Abkhazia and South Osetta ruined any chance of a quick solution to the problem, and a significant part of the population emigrated. According to unofficial statistics, in the period from 1991 to 2005 one-fifth of the population fled the country, searching for a better life. In 1991 Georgia had a population of five million people, and it is believed that one million of these people have left the country. Most of the emigrants are now living in Russia and Turkey, while some have moved to Europe and the United States. Part of the money these immigrants earn abroad is sent to their families in Georgia. Unfortunately, this presents a significant portion of, and often the only income, for a large part of the population still living in Georgia.
 
After the change of government in 2003 some positive reforms against the gray economy and corruption were introduced, but the government has not managed to resolve serious problems like unemployment and low wages. A teacher’s salary is about forty USD per month, while the pensioners live on a little over fifteen USD monthly. This income cannot cover life expenditures, as prices for food and utilities are the same as in western countries.
 
People in Need has been present in Georgia since the second half of 2005. PIN is running a project called “Prevention of Illegal Migration and Aid for Regions in Need.” The program is engaged in two sectors: social awareness building, which tries to increase the knowledge about the risks of illegal migration and trafficking, and the second part of the program engages in development and sources of livelihood. In the surroundings of the city Tkibuli (eastern section of Imeretie), PIN is implementing projects needed for the improvement of the economic situation of the citizens and the overall stability of the regions.
 
GEORGIA
 
  • Location: Caucasus
  • Neighboring countries: Russia, Azerbaijan, Armenia, Turkey
  • Capital: Tbilisi
  • Area: 69 700 km2
  • Population: 4 661 473 (2006)
  • Main Ethnic Groups: Georgians 70 %, Armenian 8 %, Russian 6,3 %, Azerbaijani 5,7 %, Ossetian 3 %, Abkhazian 1,8 %
  • Religion: Georgian Orthodox 37 %, Muslim 11 %, Church of Armeina 6 %, Orthodox 2,8 %
  • Median age: 37,7 (2006)
  • Birth rate: 10,41 (2006)
  • Infant mortality rate: 17,97 (2006)
  • Median life expectancy at birth: 76,09 (2006)
  • Literacy rate: 100 % (2004) ♂ 100 % ♀ 100 %
  • GDP in spending strength: 15,55 billon USD (2005)
  • GDP per capita in spending strength: 3 300 USD (2005)
  • GDP growth rate: 7 % (2005)
  • Unemployment rate: 12.6 % (2004)
  • Percentage of the population living below the poverty level: 54 % (2001)

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