Georgia

Form of government: Presidential Parliament Democracy

Head of State: President - elected for a term of 5 years.

Branches of government: Parliament - 235 members elected for a term of 4 years; Government - Prime Minister, Ministers, State Ministers - appointed by the Parliament; Independent Judiciary.

Territorial-administrative division: 9 regions (Guria, Imereti, Kakheti, Kvemo Kartli, Mtskheta-Mtianeti, Racha-Lechkhumi and Kvemo Svaneti, Samegrelo and Zemo Svaneti, Samtskhe-Javakheti, Shida Kartli), 9 cities, and 2 autonomous republics.

Current population: 4.6 million.

Capital: Tbilisi, 1.3 million

Area:  69,700 sq. km., bordering on Turkey, Armenia, Russia, and Azerbaijan   

Natural resources: Oil, coal, peat, manganese, gold, silver copper, zinc ores, bentonite clay, mineral water                                                             

Economic Indicators

Consistent and sustainable macroeconomic policies pursued by the Georgian Government have produced positive results as evidenced by strong economic growth trends.

Key Macroeconomic Indicators of Georgia

GDP Structure in 2006

Foreign direct investments made in Georgia in 2006 amounted to $1.147 billion USD. As shown on the following chart the amount of foreign direct investments has increased significantly compared to the previous years.

Main Social-Economic Indicators

 Milestones in Georgia's Transformation to a Market Economy

Georgia was named the year's number one reformer in the World Bank's 2007 "Doing Business Survey," improving its overall ranking from 112 to 37. Georgia also improved from 52nd to 35th place on the Heritage Foundation's 2007 Economic Freedom Index.

 Construction of two new pipelines across Georgia increases its role as a strategic crossroad for hydrocarbon transit in the Caspian region.

Total licenses and permits reduced by 84%, in reforms that eliminated 756 licenses and permits, streamlined procedures, and introduced statutory time limits for government action on applications.

Customs clearance times reduced from 52 to 15 days for imports and from 54 to 13 days for exports as reported by the World Bank's Doing Business 2007 survey. A new Customs regime is producing further reductions.

Fewer taxes and lower rates were introduced by a new Tax Code and further cuts are planned. Continuing modernization of tax and customs administration is reducing compliance costs and increasing revenues.

A new Labor Code, recognized on international indices as one of the world's best, reduces labor costs and increases employer flexibility.

 The number of registered taxpayers almost tripled from 2005 to 2006 after introduction of simplified registration procedures for legal entities and physical persons.

 Electricity availability significantly improved throughout Georgia in 2006. Two years ago 85% of Georgians outside of Tbilisi were without power on any given day. Today, 98% of paying customers outside of Tbilisi have 24/7 power.

Significant decrease in corruption in the public and private sectors made Georgia the World Bank's top anticorruption performer in its 2006 "Anticorruption in Transition-3" (ACT3) report.

Corrupt and incompetent judges were removed from the bench and replaced with appointees drawn from a pool of candidates who have passed an objective written exam.

Complete reform of the police force resulted in a public approval rating of 70% in an April 2006 poll.

Education reform has introduced nationally standardized tests and merit based entrance into institutions of higher education to eliminate corruption.

GEOGRAPHY

The country is situated in the south of the Caucasus region and occupies 69,700 sq.km. Georgia borders with Russia in the north, Azerbaijan in the south-east, Armenia in the south, Turkey in the south-west and the Black Sea in the west.

Georgia is distinguished by its complex and varied relief. The north is dominated by the mountains of the Great Caucasus Range, while Southern Georgia is traversed by the South Georgian Plateau. From the shore of the Black Sea in the west to the Alazani Valley in the east run the inter-mountain lowlands of Georgia. The mountain range Rikoti divides the country into two parts differing in climate: Eastern Georgia and Western Georgia. The highest peak is Shkara (5198m), the lowest place (-1.5m) is the environs of lake Paliastomi in the Kolkheti Lowland. Forests constitute 38% of the country's territory and cover 2.7million hectares (6.6 million acres).

CLIMATE

Almost all climatic zones existing in the world, from the humid subtropical to eternal snow and icy peaks are represented in the comparatively small territory of Georgia, whose location between moderately humid Mediterranean and dry continental Arab-Caspian areas influences its climate. A humid sub-tropical climate dominates in Western Georgia.

In July the average temperature reaches +24  ­­­­- +40 C; in January the average temperature is +100 C. In Eastern Georgia the temperature for the coldest month, January, varies from +30C to -20 C. The average temperature in August, the warmest month, is +230 C - +260 C. In the seaside areas of Western Georgia, mean annual precipitation varies from 1000 to 2800mm (in the mountains).

HISTORY

The oldest remains of Homo Erectus in Western Eurasia (approximately 1.8 million years old) recently discovered in Georgia only support the consensus among scholars that humans have inhabited the territory of Georgia since the very dawn of the human race.

Georgians first appear in written history in the 12th century B.C. Archaeological finds and references in ancient sources reveal the brilliance and advancement of early Georgian political and state formations - their amazing urban heritage and cutting-edge metallurgy and goldsmith techniques that date back to the 7th century B.C. and beyond. In the 4th century B.C. a unified kingdom of Georgia - an early example of advanced state organization under one king and the hierarchy of aristocracy, was established. Christianity came to Georgia with its first missionaries and it was declared the state religion as early as 337 A.D.

Early and medieval Christian scholarship, the links with the rest of the Christian world and dynamic exchange with the Islamic world, together with the development of national literature and the political consolidation of the state in the 11th century A.D. culminated in a true renaissance in the 12-13th centuries A.D. This early Georgian renaissance, which preceded its European analogue by several hundred years, was significant and was characterized by magnificent secular art and culture, the flourishing of a romantic- chivalric tradition, breakthroughs in philosophy, and an array of political innovations in society and state organization, including religious and ethnic tolerance, the abolition of the death penalty and a proto-parliament.

The Golden age of Georgia left a magnificent legacy of great cathedrals, brilliant romantic poetry and literature, and the epic poem "The Knight in the Panther's Skin - revered by all Georgians since its creation for its artistic and philosophical virtue, the glorification of the ideals of universal solidarity between humans, and the values of chivalry, honour, compassion and romantic love. This Golden Age was interrupted at its peak by the Mongol Invasion in the 13th century A.D. After that time, the Georgian feudal state entered an era of decline punctuated by short-lived ascents.

In the 19th century, Georgia, on the verge of annihilation by its powerful southern rivals, was annexed by the Russian Empire. A few decades later, Georgian society produced a modernist nationalistic elite which united Georgian society around the dream of the restoration of their once glorious state. In 1918, this dream was fulfilled and the Democratic Republic of Georgia was established.

This courageous democratic experiment was short-lived, as in 1921 Georgia was occupied by Bolshevik Russia. The first years of independence after the dissolution of the USSR were characterized by political instability and civil conflicts. The first wave of reforms initiated in 1995 was only partially successful. Political corruption resulted in economic decline and institutional inefficiency, which led to grave political crisis.

In November 2003, the "Rose Revolution - a mass non-violent public disobedience campaign - forced the government, which had tried to falsify elections, to resign. A new wave of systemic reforms started after the election of the new Government.

PEOPLE AND LIFESTYLE

The social culture and traditions of Georgians are founded on layers of historical experience and a uniquely authentic civilizational core with occidental and oriental influences which came about through centuries of cultural exchange, travel, trade and war. Although, historically, Georgians are enthusiastic innovators and modernizers, at the same time they zealously preserve their unique culture.

The Georgian lifestyle may seem a little old-world decadent. Georgians are hardly converts to the "great truths of economism or believers in an end of history - their cultural world is too rich and their historical memory as a survivor nation too long for this.

Although as a rule creative and hard working, Georgians do not merely  live to work  In their rich social and cultural world, Georgians attach great importance to leisure, investing time in their social networks and families, dressing well and looking good, tasty food, aesthetic perfection, romantic love, chivalric ideals in social relationships, sincere hospitality, and generosity. Although  passionate modernizers, often speak of spirituality and the continuity of their cultural history.

For Georgians, History is not something currently irrelevant but a palpable reality of their continuing collective journey. Georgians revere their historical monuments, glorious kings and queens, national heroes and great artists. They consider themselves to be Europeans, although they have a deep understanding of the East. Personal trust and reputation are indispensable factors when doing business with Georgians.

CUISINE

Georgian cuisine is one of the main attractions for foreigners visiting Georgia. It is famous for its uniqueness and diversity. An experienced traveler may discern some similarities between Georgian, and Middle Eastern and Mediterranean food. However, Georgian cuisine is doubtlessly an authentic gastronomic phenomenon. In fact, every historical province of the country has its own distinct cuisine perfected over centuries.

Georgian food includes all types of meat and fish. The choice of fruits, appetizers and vegetarian meals is even wider - as an ancient settled culture Georgians developed a rich vegetarian menu. The different combinations of a variety of spices, fresh organic food, and the excellence of the cooks, make Georgian food an unforgettable experience.