Georgia Country Brief
Introduction/overview
Georgia is a relatively small country covering 69,700 square kilometres, lying on the southern foothills of the Greater Caucasus mountain range, and on the south-eastern shores of the Black Sea. It is bordered by Russia to the north, Turkey to the south-west, Armenia to the south and Azerbaijan to the south-east. Approximately 84 per cent of Georgia's 4.7 million people are ethnic Georgians, with Armenian, Russian and Azeri and Abkhaz populations also present. The capital of Georgia is Tbilisi, which has a population of close to 1.2 million.
Georgia's national day, known as Independence Day, is celebrated on 26 May.
Political overview
Georgia declared independence on 9 April 1991, shortly before the collapse of the Soviet Union. The Georgian political system is a presidential republic. The Parliament consists of a unicameral Republican Council (commonly referred to as Parliament) with 235 seats. Members are elected by popular vote for a four-year term. The last parliamentary election was held in 2004, following the 2003 ‘Rose Revolution’, and resulted in an overall majority for the National Movement–Democratic bloc. The National Movement was led by Mikhail Saakashvili; the Democrats bloc by Zurab Zhvania and the current Speaker of the Parliament, Ms Nino Burjanadze. There are numerous factions and parties, each of which holds a small number of seats.
Mr Mikhail Saakashvili, the current President, won a second term by direct popular vote on 5 January 2008 with 53.5 per cent of ballots cast. The Presidential election was brought forward from late 2008 as a result of large-scale opposition-led demonstrations in Tbilisi in November 2007. The protests prompted President Saakashvili to declare a state of emergency on 7 November (lifted 16 November). Parliamentary elections are also scheduled for this year.
The current Prime Minister, Mr Lado Gurgenidze is a former Chairman of the Supervisory Board of the Bank of Georgia. Mr Gurgenidze was appointed on 22 November 2007 as part of President Saakashvili’s efforts to progress economic reform.
Shortly after independence, Georgia became a member of the United Nations (UN) and the International Monetary Fund (IMF) in 1992 and the European Bank for Reconstruction and Development (EBRD) in 1994. Georgia joined the Council of Europe in 1999 and the World Trade Organisation (WTO) in 2000. Georgia is a member of the Commonwealth of Independent States (CIS).
Economic overview
Georgia's economy has traditionally revolved around Black Sea tourism; cultivation of citrus fruits, tea, and grapes; mining of manganese and copper; and the output of a small industrial sector producing wine, metals, machinery, chemicals and textiles.
Turkey is currently Georgia's largest trading partner, but Russia is still critically important for Georgia's energy needs (natural gas and oil). Despite this, Georgia is well-positioned on the route of new energy pipelines taking Caspian Sea oil and gas resources from Azerbaijan into Western Europe. GDP is forecast to grow at 11 per cent for 2007, based largely on new transit revenues for Caspian Sea oil and gas flowing through the BTC (Baku-Tbilisi-Ceyhan) oil pipeline opened in July 2006.
The World Bank’s ‘Doing Business 2008’ report regards Georgia as one of the world’s top economic reformers in terms of making it easier to do business. However, the Government has implemented only the simpler parts of its reform agenda and Georgia still needs to focus on attracting more foreign investment to develop its manufacturing sector and diversify its export base. Georgia also needs to deal more effectively with corruption, although there has been progress under the Saakashvili government.
Bilateral relationship
Although Australia immediately recognised the independence of the eleven founding members of the Commonwealth of Independent States (CIS), Australia's recognition of Georgia was slightly delayed due to the outbreak of civil war. Australia recognised Georgia's independence on 29 March 1992.
Georgia maintains a Consulate-General in New South Wales. The Consulate-General has jurisdiction throughout Australia.
According to the 2006 census, 385 people identifying themselves as Georgian live in Australia, although the broader Australian-Georgian community is estimated to be much higher. The majority of the Australian-Georgian community lives in New South Wales, followed by Victoria.
Georgia’s deputy Minister for Agriculture led a delegation visit to Australia in February 2007. In early 2004, the Georgian State Dance Company toured Australia, giving performances in more than 30 metropolitan and regional centres. In October 2003, the Georgian national rugby team visited Australia to participate in the Rugby World Cup 2003 tournament.
Bilateral economic and trade relationship
Australia's trade and investment relationship with Georgia is modest. In 2006-2007, total two-way trade was worth A$8.2 million. Australian exports were worth A$4.1 million, down from A$7.5 million in the previous financial year. Imports from Georgia were also worth around A$4.1 million. Butter accounted for about half of Australia’s exports to Georgia, while goods vehicles made up the bulk of imports.
Trade successes
A small number of Australian mining companies have pursued exploration opportunities in Georgia, but to date results have been modest.
Several Australian suppliers of mining technology and services are doing business in Georgia.
A continuing opportunity exists for Australian companies to supply software and services for mapping geological surveys and resource holdings, including providing infrastructure for public management and tendering of these resources.
Australian companies have explored opportunities in Georgia as diverse as architecture and technology and services for Georgia’s renowned wine industry.
Success to date has been limited.
Last updated: 18/06/2008