Georgia’s substantial score improvement in 2011 is encouraging for future reforms in the country. Successful political reforms and significant economic recovery boosted the state’s legitimacy. The country is improving across the board, demonstrating a steady recovery from political and economic setbacks in 2008 and 2009, and increasing its ability to attract foreign investment. However, the country still faces a number of challenges, including separatist movements, corruption, widespread poverty, shaky relations with Russia, and a large number of IDPs. Political tensions also remain a concern, as elites become increasingly split between supporters and opponents of President Saakashvili. The quality of the next elections will be crucial to determining Georgia’s continued improvement.

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Indicator Scores

	Position													Total Score
2011	46 (177)	5.8	7.5	8.0	5.5	6.9	6.0	8.4	6.0	6.9	7.9	9.0	8.5	86.4
2010	37 (177)	6.2	7.8	8.4	5.8	7.2	6.5	9.0	6.4	9.3	8.0	9.1	8.7	90.4
2009	33 (177)	6.4	8.3	8.5	6.0	7.5	6.0	9.0	6.3	7.5	7.9	8.9	9.5	91.8
2008	56 (177)	6.3	6.8	8.1	5.7	6.9	5.4	8.4	5.9	5.9	7.7	8.3	8.4	83.8
2011	58 (177)	6.3	6.8	7.6	5.7	7.0	5.7	7.9	6.1	5.4	7.8	7.8	8.2	82.3

Core Five State Institutions

	Leadership	Military	Police	Judiciary	Civil Service
2011	moderate	moderate	weak	moderate	moderate

Basic Information

Context

A former Soviet Republic, Georgia declared its independence in 1991. Shortly after, conflicts in the separatist regions of South Ossetia and Abkhazia; these conflicts have yet to be fully resolved. In 2003, protests following attempts to manipulate a legislative election forced then-President Shervardnadze to resign. Mikheil Saakashvili and his National Movement party assumed power after elections in 2004. Tensions with Russia increased during this period. Frustrations with delayed corruption reforms led to protests in 2007 that placed additional pressure on the country. In 2008, Georgian military action against separatists in South Ossetia prompted a Russian military response that spread into large parts of Georgia and escalated into a full-blown conflict. Anti-Saakashvili protests renewed in early 2009, with opposition supporters demanding that the president resign. Amid mounting pressure to resign, parliament approved constitutional changes in late 2010 to transfer some presidential powers to the prime minister and parliament.

Social Indicators

Already under pressure, Georgia’s social indicators spiked following the 2008 conflict with Russia. Threats to the country’s food security include droughts, soil salinity, and environmental damage from the use of chemicals like DDT.

Recent Improvements and Pressures

• Georgia’s Demographic Pressures score improved significantly this year, reflecting improved agricultural yields and the return of displaced workers.
• The Refugees and IDPs score improved as those displaced during the 2008 conflict continue to be relocated.
• The Group Grievance score decreased by 0.4 points, as violence ceased between separatists regions and the rest of Georgia remained stable two years out from the conflict.
• Georgia’s Human Flight score also improved as more Georgians returned to areas affected in the conflict.

Economic Indicators

Important contributors to Georgia’s economy include agricultural and industrial exports, foreign investment, and remittances. After stagnating during the global economic downturn, the country rebounded in 2010. Successful deregulation reforms have resulted in the country’s 12-place ranking in the World Bank’s Doing Business Report. However, Georgia’s economic growth remains dependent on external energy sources.

Recent Improvements and Pressures

• The Uneven Development score decreased, reflecting recent reforms to reduce regulation, taxes, and corruption.
• Georgia’s Poverty and Decline indicator improved significantly, demonstrating 2010’s economic recovery.

Political/Military Indicators

Despite a series of reforms enacted since 2004, the government continues to struggle to gain widespread support among Georgians. Protests in 2007 and 2009 have reflected growing frustration with President Saakashvili’s government and apparent delays in pushing through reforms. In addition, the government’s inability to repel Russian forces without external assistance embarrassed the nation and continues to cost Saakashvili politically.

Recent Improvements and Pressures

• The Legitimacy of the State score improved 0.6 points as Parliament shifted power away from the presidency.
• The Public Services score also improved due to continued reconstruction of infrastructure destroyed in the 2008 conflict.
• Georgia’s Security Apparatus score has been nearly constant for 3 years, reflecting ongoing concerns regarding attacks against protestors and refusals to investigate abuses.
• The Factionalized Elites score remains extremely high at 9.0, despite recent constitutional reforms. Opposition leaders continue to exert pressure on Saakashvili to resign.
• The External Intervention score decreased as foreign humanitarian aid decreased. However, external humanitarian assistance is still needed to support the remaining refugee population in the country.

Latest Update: 2011-07-06 Kristen Blandford

Image: Stock

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