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U.S. Department of State

Background Notes: Georgia, July 1997

Released by the Office of the Special Advisor to the Secretary for the New Independent States

Official Name: Georgia

PROFILE

Geography

Area: 70,000 sq km; slightly larger than South Carolina.
Cities: Capital - Tbilisi (pop 1.3 million 1994)
Terrain: Mostly rugged and mountainous
Climate: Generally moderate; mild on the Black Sea Coast with cold winters in the mountains.

People

Nationality: Noun and adjective-Georgian(s).
Population: 5 million.
Population growth rate: -1.02%
Ethnic groups: Georgian 70.1%, Armenian 8.1%, Russian 6.3%, Azerbaijan 5.7%, Ossetian 3%, Abkhaz 1.8%, other 5%.
Religion: Georgian Orthodox 65%, Muslim 11%, Russian Orthodox 10%, Armenian Apostolic 8%.
Language: Georgian (official), Abkhaz also official language in Abkhazia
Education: Years compulsory-11. Literacy-99%.
Health: Infant mortality rate-22.5 deaths/1,000 live births. Life expectancy-68 years.
Work force: 3.1 million; employment:1.7 million; unemployment may be more than 20%. Industry and construction 31%. Agriculture and forestry 25%, other 44%.

Government

Type: Republic.
Constitution: October 17, 1995.
Branches: Executive-president with State Chancellery. Legislative-unicameral parliament: 232 members. Judicial-supreme court, prosecutor general and local courts.
Subdivisions: 63 districts, including those within the two autonomous republics (Abkhazia and Ajaria ) and seven cities. (1994)
Political parties: Citizens Union of Georgia, National Democratic Party, People's National Democratic Party, United Republican Party, Georgian Popular Front, Georgian Social Democratic Party, All Georgia Revival Union, Greens Party, Agrarian Party, United Communist Party of Georgia Socialist Party and others.
Suffrage: Universal over 18.

Economy

GDP (1996): $3.5 billion (4.5 billion lari).
Per capita income (1995 estimate) $1,080.
GDP growth (1996): 11%.
Natural resources: citrus fruits, tea, wine; nonferrous metals; textiles; chemicals; fuel re-exports.
Industry: steel, aircraft, machine tools, foundry equipment, (automobiles, trucks and tractors,) tower cranes, electric welding equipment, machinery for food packing; electric motors, textiles, shoes, chemicals, wood products, bottled water and wine.
Trade (1996): Exports--$199.4 million; partners Russia, Turkey, Armenia, Azerbaijan; agricultural products; machinery; ferrous and nonferrous metals; textiles, chemicals; fuel re-exports. Imports--$570.8 million; partners Russia, Azerbaijan, Turkey; fuel, grain, machinery.

PEOPLE AND HISTORY

Georgian history is over 2,500 years old, and Georgian is one of the oldest living languages in the world. Tbilisi, located in a picturesque valley divided by the Mtkvari river, is more than 1,500 years old. Much of Georgia's territory was besieged by its Persian and Turkish neighbors along with Arabs and Mongols over the course of the seventh to the eighteenth centuries . After eleven centuries of mixed fortunes of various Georgian kingdoms, including a golden age from the 11^th to 12^th centuries, Georgia turned to Russia for protection. Russia essentially annexed Georgia and exiled the royalty in 1801. Pockets of Georgian resistance to foreign rule continued, and the first Republic of Georgia was established on May 26, 1918 after the collapse of Tsarist Russia. By March 1921, the Tsarist army had reoccupied the country and Georgia became part of the Soviet Union. On April 9, 1991, the Supreme Council of the Republic of Georgia declared independence from the U.S.S.R.

Georgia's Cultural contributions

Georgians are renowned for their hospitality and artistry in dance, theater, music and design.

20^th Century History

Beset by ethnic and civil strife from independence in 1991, Georgia began to stabilize in 1995. The more than 230,000 internally displaced persons present on enormous strain on local politics. Peace in the separatist areas of Abkhazia and south Ossetia, overseen by Russian peacekeepers and international organizations, will continue to be fragile, requiring years of economic development and negotiation to overcome local enmities. Considerable progress has been made in negotiations of the Ossetian-Georgian conflict.

The Georgian government is committed to economic reform in cooperation with the IMF and World Bank, and stakes much of its future on the revival of the ancient Silk Road - as the Eurasian Corridor, using Georgia's geography as a bridge for transit of goods between Europe and Asia.

GOVERNMENT

Georgia has been a democratic republic since the presidential elections and constitutional referendum of October 1995. The President is elected for a term of 5 years; his constitutional successor is the Chairman of the Parliament.

The Georgian state is highly centralized, except for the autonomous regions of Abkhazia and Ajaria, which are to be given special autonomous status once Georgia's territorial integrity is restored. Those regions were subjects of special autonomies during Soviet rule and the legacy of that influence remains. Local elections have not yet taken place in either area.

Principal Government Officials

President-Eduard A. Shevardnadze
State Minister-Niko Lekishvili
Chairman of the Security Council-Nugzan Sajaia
Chairman of Parliament-Zurab Zhvania
Foreign Minister-Irakli Menagharishvili
Ambassador to the United States-Tedo Japaridze

Georgia maintains an embassy in the United States at Suite 424, 1511 K Street, N.W., Washington, D.C. 20005

Political Conditions

Since surviving an assassination attempt in August 1995 by reactionary forces opposed to reform, President Shevardnadze has consolidated his leadership and moved ahead with an ambitious and courageous reform agenda. Elections on November 5, 1995,described as the freest and fairest in the Caucasus or Central Asia, gave him the presidency and a resulted in a progressive parliament led by sophisticated reformers.

Georgia's location, nestled between the Black Sea, Russia and Turkey, gives it strategic importance far beyond its size. It is developing as the gateway from the Black Seas to the Caucasus and the larger Caspian region, but also serves as a buffer between Russia and Turkey. Georgia has a long and close relationship with Russia, but is reaching out to its other neighbors and looking to the West in search of alternatives and opportunities. It signed a cooperation agreement with the EU, participates in the Partnership for Peace, and is encouraging foreign investment.

The Abkhaz separatist dispute absorbs much of the government's attention. While a cease-fire is in effect, more than 230,000 internally displaced persons (IDP's) who were driven from their homes during the conflict, constitute a vocal lobby. The government has offered the region considerable autonomy in order to encourage a settlement which would allow the IDPs, the majority of whom are ethnic Georgians from the Gali region, to return home, but the Abkhaz insist on virtual independence.

Currently, Russian peacekeepers, under the authority of the Commonwealth of Independent States, are stationed in Abkhazia, along with UN observers, but both groups have recently had to restrict their activities due to increased land-mine sowing and guerrilla activity. Russian-led negotiations have not resulted in movement toward a settlement, and the Georgians have recently appealed to the Western powers to become more directly involved in the process. Working with France, UK, Germany, and Russia and through the UN and the OSCE, the U.S. continues to encourage a comprehensive settlement consistent with Georgian independence, sovereignty and territorial integrity. In the meantime, the UN observer force and other organizations are quietly encouraging grassroots cooperative and confidence-building measures in the region. As a result, 20,000 IDP's have returned to the Gali area.

The parliament has instituted wide-ranging political reforms supportive of higher human rights standards, but problems persist, largely as a result of the unwillingness of certain law enforcement and criminal justice officials to support constitutionally mandated changes. Mistreatment of detainees is a significant and continuing problem, as is corruption within certain state agencies and monopolies.

Political Parties

Citizens Union of Georgia is not a party in the American sense but an amalgam of groups/individuals who support President Eduard Shevardnadze.

The National Democratic Party represents the opposition in parliament. The Revival Union Party is a vehicle for political representation in Tbilisi of the Ajarian region. The Abkhaz faction remains vocal and influential in pushing for resolution of the Abkhaz conflict.

ECONOMY

Georgia's economic recovery has been hampered by the separatist disputes in Abkhazia and South Ossetia, a presistently weak economic infrastructure, and resistance to reform on the part of some corrupt and reactionary factions. Under President Shevardnadze's leadership, the government has nonetheless guided the economy to impressive gains-- slashing inflation, meeting almost all IMF targets and qualifying for economic structural adjustment facility credit status, introducing a stable national currency (the lari), introducing free-market pricing of bread products, preparing for membership in the World Trade Organization, signing agreements which allow for development of a pipeline to transport Caspian oil across Georgia to the Black Sea, and passing laws on commercial banking, land and tax reform.

The Government expects to significantly reduce the country's deficit by nearly xx% in 1997. President Shevardnadze recently announced that tax revenues have risen dramatically, and recent tax reform, encouraged by the IMF, should lead to further increases. Despite this fact, the tax collection rate is the lowest in all the new independent states. The international financial institutions continue to play a critical role in Georgian's budgetary calculations.

There has been strong progress on structural reform. All prices and most trade have been liberalized, legal framework reform is on schedule, and massive government downsizing is underway. While over 6,300 small enterprises have been privatized, privatization of medium- and large-sized firms has been slow. Recently a law and decree establishing the legal basis and procedures for state property privatization were adopted. This will reduce the number of companies controlled by the state. Georgia's transportation and communications infrastructure remain in very poor condition due to the lack of investment, and the energy sector has been described as the worst in the Caucasus and eastern Europe.

To encourage and support the reform process, the U.S. is joining other donors in shifting the focus of assistance from humanitarian to technical and institution-building programs. Provision of legal and technical advisors is complemented by training opportunities for parliamentarians, law enforcement officials and economic advisers. The U.S. is increasingly willing to impose conditions on assistance in order to encourage improved performance on key issues and privatization of key sectors, including energy. Georgia continues to depend on humanitarian aid, which is increasingly targeted to most-needy groups.

Georgia is reaching out to the international community. A member of the CIS, it also participates actively in the Partnership for Peace. In April, Georgia signed a partnership and cooperation agreement with the EU. France, Germany and the UK all have embassies in Tbilisi, and Germany is a significant donor.

Agriculture

Georgian agricultural production is beginning to recover following the devastation caused by the civil war and the restructuring necessary following the breakup of the Soviet Union. Livestock is beginning to rebound, although it faces periodic outbreaks of disease. Domestic grain production is increasing, and will require sustained political and infrastructure improvements to ensure appropriate distribution and return to farmers. Tea, hazelnut, and citrus production have suffered greatly as a result of the ethnic cleansing and landmine-sowing in Abkhazia, an especially fertile area.

While approximately 80% of the Georgian economy is agricultural, crops spoil in the field because farmers either cannot get their produce to market or must pay costs which drive market prices above those for imported goods. In concert with European assistance, Georgia has taken steps to control the quality of and appropriately market its natural spring water. Georgian viniculture, well supported during Soviet times, is internationally acclaimed and has absorbed some new technologies and financing since 1994.

FOREIGN RELATIONS

Georgia is a member of the UN, the OSCE and the CIS. It is an observer in the Council of Europe

DEFENSE

Following the defeat of the disparate Georgian militias in Abkhazia in September 1993, Georgia began the process of building a modern army. Substantial progress has been made, including the creation of a single military force under a unified command structure, answerable to elected civilian officials. However, there is no professional NCO corps and few trained junior officers. The enlisted personnel are conscripts unable to evade military service. Total strength is estimated at 12,000-15,000. The forces are plagued by desertion problems, poor discipline, and equipment shortages. The military has little transport, supply, and or communications capability. The Georgians are actively participating in the Partnership for Peace (PFP) and other military exchange programs. The U.S. provides Georgia with bilateral security assistance, including through the International Military Education and Training (IMET) program. Evolving U.S.-Georgia partnerships include programs by the Georgia (U.S.) National Guard, visits by a Coast Guard cutter to Georgia, and a Georgian delegation hosted by the U.S. Coast Guard.

U.S.-GEORGIA RELATIONS

U.S.-Georgia relations have been and continue to be excellent. Georgian leaders note that U.S. humanitarian assistance was critical to Georgia's recovery from civil war and economic difficulties following independence. U.S. assistance currently is targeted to support Georgia's economic and political reform program, with emphasis on institution-building. The U.S. is working with the parliament as it drafts laws and establishes procedures and standards consistent with the country's 1995 constitution. The U.S. is also intensifying its support for Georgia's economic reform program.

Principal U.S. Officials

Ambassador-William Courtney
Deputy chief of Mission-Lawrence Kerr (Martin Adams - designate)
Political/Economic/Commericial Affairs-Molly O'Neal
Public Affairs-Omie Kerr (Victoria Sloan - designate)
Defense Attache-Maj. James Howcroft

The U.S. embassy in Georgia is located at 25 Antoneli Street, Tbilisi 380026, telephone 995-32-98-99-67, fax 995-32-93-37-59.

TRAVEL AND BUSINESS INFORMATION

The U.S. Department of State's Consular Information Program provides Travel Warnings and Consular Information Sheets. Travel Warnings are issued when the State Department recommends that Americans avoid travel to a certain country. Consular Information Sheets exist for all countries and include information on immigration practices, currency regulations, health conditions, areas of instability, crime and security, political disturbances, and the addresses of the U.S. posts in the country. Public Announcements are issued as a means to disseminate information quickly about terrorist threats and other relatively short-term conditions overseas which pose significant risks to the security of American travelers. Free copies of this information are available by calling the Bureau of Consular Affairs at 202-647-5225 or via the fax-on-demand system: 202-647-3000. Travel Warnings and Consular Information Sheets also are available on the Consular Affairs Internet home page: http://travel.state.gov and the Consular Affairs Bulletin Board (CABB). To access CABB, dial the modem number: (301-946-4400 (it will accommodate up to 33,600 bps), set terminal communications program to N-8-1 (no parity, 8 bits, 1 stop bit); and terminal emulation to VT100. The login is travel and the password is info (Note: Lower case is required). The CABB also carries international security information from the Overseas Security Advisory Council and Department's Bureau of Diplomatic Security. Consular Affairs Trips for Travelers publication series, which contain information on obtaining passports and planning a safe trip abroad, can be purchased from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 371954, Pittsburgh, PA 15250-7954; telephone: 202-512-1800; fax 202-512-2250.

Emergency information concerning Americans traveling abroad may be obtained from the Office of Overseas Citizens Services at (202) 647-5225. For after-hours emergencies, Sundays and holidays, call 202-647-4000.

Passport Services information can be obtained by calling the 24-hour, 7-day a week automated system ($.35 per minute) or live operators 8 a.m. to 8 p.m. (EST) Monday-Friday ($1.05 per minute). The number is 1-900-225-5674 (TDD: 1-900-225-7778). Major credit card users (for a flat rate of $4.95) may call 1-888-362-8668 (TDD: 1-888-498-3648)

Travelers can check the latest health information with the U.S. Centers for Disease Control and Prevention in Atlanta, Georgia. A hotline at (404) 332-4559 gives the most recent health advisories, immunization recommendations or requirements, and advice on food and drinking water safety for regions and countries. A booklet entitled Health Information for International Travel (HHS publication number CDC-95-8280) is available from the U.S. Government Printing Office, Washington, DC 20402, tel. (202) 512-1800.

Information on travel conditions, visa requirements, currency and customs regulations, legal holidays, and other items of interest to travelers also may be obtained before your departure from a country's embassy and/or consulates in the U.S. (for this country, see "Principal Government Officials" listing in this publication).

U.S. citizens who are long-term visitors or traveling in dangerous areas, are encouraged to register at the U.S. embassy upon arrival in a country (see "Principal U.S. Embassy Officials" listing in this publication). This may help family members contact you in case of an emergency.

Further Electronic Information:

Department of State Foreign Affairs Network. Available on the Internet, DOSFAN provides timely, global access to official U.S. foreign policy information. Updated daily, DOSFAN includes Background Notes; Dispatch, the official magazine of U.S. foreign policy; country commercial guies; daily press briefings; directories of key officers of foreign service posts; etc. DOSFAN's World Wide Web site is at U.S. State Department Home Page.

U.S. Foreign Affairs on CD-ROM (USFAC). Published on a semi-annual basis by the U.S. Department of State, USFAC archives information on the Department of State Foreign Affairs Network, and includes an array of official foreign policy information from 1990 to the present. Contact the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 371954, Pittsburgh, PA 15250-7954. To order, call (202) 512-1800 or fax (202) 512-2250.

National Trade Data Bank (NTDB). Operated by the U.S. Department of Commerce, the NTDB contains a wealth of trade-related information. It is available on the Internet (www.stat-usa.gov) and on CD-ROM. Call the NTDB Help-Line at (202) 482-1986 for more information.

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