this time, the government implemented tax reforms and liberalized the economy.
These measures resulted in significant foreign investment, including investments
from neighboring Russia and Kazakhstan. Georgia’s strategic position makes the country an important route for the oil and gas pipelines connecting the Caspian Sea with
the West—one of which is the strategic Baku-Tbilisi-Ceyhan (BTC) pipeline. 1 The
country’s unemployment rate is high (12.6 percent), with more than a million Georgians living outside the country.
Georgia has demonstrated a clear commitment to reform its economic and regulatory environment by enhancing transparency and efficiency as a means to improve
the business climate. These reforms have positioned the country among the world
leaders in the ‘‘ease of doing business’’ index prepared by the World Bank. 2 Georgia
has also surpassed other CIS countries by obtaining the highest level of compliance
with international standards with regard to its telecommunications sector. 3
In August 2008, Georgia and Russia were embroiled in an armed conflict in South
Ossetia (a semi-autonomous breakaway region bordering Russia). Georgia’s strained
relations with Russia have important economic and political consequences for the
country’s future.
Internet Infrastructure
In 2007, the government initiated a liberalization of the radio and television industry.
This effort resulted in an increase in the number of independent newspapers and cable
TV channels, several dozen of which now operate in the country. The state retains controlling interest in a number of key television stations, which has led to some criticism
from international observers. Such criticism was especially apparent following the government’s decision to revoke the license of Imedi—a major private TV channel which
KEY INDICATORS
GDP per capita, PPP (constant 2005 international dollars)
4,403
Life expectancy at birth (years)
71
Literacy rate (percent of people age 15þ)
100
Human development index (out of 179)
93
Rule of law (out of 211)
120
Voice and accountability (out of 209)
120
Democracy index (out of 167)
104 (Hybrid Regime)
Digital opportunity index (out of 181)
88
Internet users (percent of population)
7.8
Source by indicator: World Bank 2009a, World Bank 2009a, World Bank 2009a, UNDP 2008, World
Bank 2009b, World Bank 2009b, Economist Intelligence Unit 2008, ITU 2007, Miniwatts Marketing
Group 2009.
174
Georgia
These measures resulted in significant foreign investment, including investments
from neighboring Russia and Kazakhstan. Georgia’s strategic position makes the country an important route for the oil and gas pipelines connecting the Caspian Sea with
the West—one of which is the strategic Baku-Tbilisi-Ceyhan (BTC) pipeline. 1 The
country’s unemployment rate is high (12.6 percent), with more than a million Georgians living outside the country.
Georgia has demonstrated a clear commitment to reform its economic and regulatory environment by enhancing transparency and efficiency as a means to improve
the business climate. These reforms have positioned the country among the world
leaders in the ‘‘ease of doing business’’ index prepared by the World Bank. 2 Georgia
has also surpassed other CIS countries by obtaining the highest level of compliance
with international standards with regard to its telecommunications sector. 3
In August 2008, Georgia and Russia were embroiled in an armed conflict in South
Ossetia (a semi-autonomous breakaway region bordering Russia). Georgia’s strained
relations with Russia have important economic and political consequences for the
country’s future.
Internet Infrastructure
In 2007, the government initiated a liberalization of the radio and television industry.
This effort resulted in an increase in the number of independent newspapers and cable
TV channels, several dozen of which now operate in the country. The state retains controlling interest in a number of key television stations, which has led to some criticism
from international observers. Such criticism was especially apparent following the government’s decision to revoke the license of Imedi—a major private TV channel which
KEY INDICATORS
GDP per capita, PPP (constant 2005 international dollars)
4,403
Life expectancy at birth (years)
71
Literacy rate (percent of people age 15þ)
100
Human development index (out of 179)
93
Rule of law (out of 211)
120
Voice and accountability (out of 209)
120
Democracy index (out of 167)
104 (Hybrid Regime)
Digital opportunity index (out of 181)
88
Internet users (percent of population)
7.8
Source by indicator: World Bank 2009a, World Bank 2009a, World Bank 2009a, UNDP 2008, World
Bank 2009b, World Bank 2009b, Economist Intelligence Unit 2008, ITU 2007, Miniwatts Marketing
Group 2009.
174
Georgia