Georgia: Paying the price of integrity

Georgia’s ill-fated attempt to prevent the secession of South Ossetia and Abkhazia is set to cost the country billions of dollars, but financial backing from western Europe and the US should help to ensure that the country’s economy remains one of the most open and business-friendly of the states that were formerly part of the Soviet Union.

Georgia lost to Russia militarily but in public relations terms the country has come out on top and looks set to receive substantial overseas funding to help pay the $1 billion repair bill for damage to its civilian infrastructure. On the economic front, the achievements since the Rose Revolution in 2003, which brought pro-western president Mikheil Saak’ashvili into power, have been impressive. Foreign direct investment has quadrupled to $2 billion and GDP per capita has doubled to $2,315.

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