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Economy of Georgia (country)

The economy of Georgia is an emerging free market economy. Its gross domestic product fell sharply following the dissolution of the Soviet Union but recovered in the mid-2000s, growing in double digits thanks to the economic and democratic reforms brought by the peaceful Rose Revolution. Georgia continued its economic progress since, "moving from a near-failed state in 2003 to a relatively well-functioning market economy in 2014". In 2007, the World Bank named Georgia the World's number one economic reformer.

Georgia's economy is supported by a relatively free and transparent atmosphere in the country. According to Transparency International's 2018 report, Georgia is the least corrupt nation in the Black Sea region, outperforming all of its immediate neighbors, as well as nearby European Union states. With a mixed news media environment, Georgia is also the only country in its immediate neighborhood where the press is not deemed unfree.

Since 2014, Georgia is part of the European Union's Free Trade Area, with the EU continuing to be the country's largest trading partner, accounting for over a quarter of Georgia's total trade turnover. Following the EU trade pact, 2015 was marked by further increase in bilateral trade, whereas trade with the Commonwealth of Independent States (CIS) decreased precipitously.

History
Before the 20th century Georgia had a largely agrarian economy.

Georgia's modern 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 large industrial sector producing wine, metals, machinery, chemicals, and textiles.

Like many post-Soviet countries, Georgia went through a period of sharp economic decline during the 1990s, partially due to persistent tax evasion. "During that period, international financial institutions played a critical role in Georgia's budgetary calculations. Multilateral and bilateral grants and loans totaled 116.4 million lari in 1997; they totaled 182.8 million lari in 1998."

Economic recovery had been hampered by the separatist disputes in Abkhazia and South Ossetia, resistance to reform on the part of some corrupt and reactionary factions, and the Asian financial crisis of 1997. Under the leadership of President Shevardnadze (in office 1995–2003), the government nonetheless made some progress on basic market reforms: it liberalized all prices and most trade, introduced a stable national currency (the lari), and massively downsized government.

During the late 1990s more than 10,500 small enterprises had been privatized, and although privatization of medium- and large-sized firms had been slow, more than 1,200 medium – and large-sized companies had been set up as joint stock companies. A law and a decree establishing the legal basis and procedures for state property privatization reduced the number of companies controlled by the state.

The United States began assisting Georgia in the process of reform soon after the country gained independence from the Soviet Union. Gradually, the focus shifted from humanitarian to technical and institution-building programs. Provision of legal and technical advisors was complemented by training opportunities for parliamentarians, law enforcement officials, and economic advisers.

Recent macroeconomic performance
Over the last few years, the Georgian economy has been one of the fastest in the FSU. Since 2003's Rose Revolution, the new Government of Georgia implemented broad and comprehensive reforms, that touched every aspect of the country's life. Economic reforms were addressed to liberalization of the economy and provision of sustainable economic growth, based on the private sector development. The establishment of an attractive business environment led to a significant inflow of Foreign Direct Investment in the country, facilitating high economic growth rates.

In 2013, Georgia ranked in the top ten countries in the Emerging Market Energy Security Growth Prosperity Index, according to an article published by CISTRAN Finance news. The index identifies emerging nations that have strong growth potential based on energy reserves and GDP.

Following reforms, Georgia's economy successfully diversified and began showing rapid upward growth, averaging over 10% annual real GDP growth from 2004 to 2007, peaking at 12.3 percent in 2007. Overall, from 2004-2007, the economy of Georgia expanded by 35%.

Georgia's economic liberalization policy demonstrated some resilience to external shocks – war with Russia in 2008 and the global financial crisis. Despite this, in 2008 Georgia economy grew by 2.3%. After contracting in 2009 (−3.8%), the economy recovered soon after, growing 6.3% in 2010 and 7.0% in 2011. The unemployment rate shrunk from 16.9% to 16.3% between 2009 and 2010.

In 2013, the annual inflation rate in Georgia equaled 2.4%. It has been decreased significantly after 11.2% in 2010. Growth of inflation rate was the result of increasing food prices in the world and essential share of the inflation fluctuations came on variability of food prices, as far as the share of food is relatively high in consumer basket of Georgia.

In 2011, IMF estimated current account balance of Georgia was −1.489 BN USD. Georgia has moderate deficits among the European and Transcaucasian Post-Soviet states. The trade with Georgia's major partners continued growing. As an example, in 2016, Georgia exported $87,263.53 worth of products to Armenia, and imported $144,931.92 worth of products from Armenia. Deficits in the current account have been more than offset by strong foreign capital inflows, allowing the Georgian currency to appreciate.

The government has managed to preserve financial stability thanks to the considerable aid provided by the US and international institutions. EBRD analysts believe that substantial international financial support and remittances from workers living abroad will cover the current account deficit in the medium term. IMF positively evaluated the government's economic policy.

Foreign direct investment in Georgia
Large inflows of Foreign direct investment (FDI) have been a driving factor behind a rapid economic growth in Georgia since 2003.

An attractive and liberal investment environment and equal approach to local and foreign investors makes the country an attractive destination for FDI.

Stable economic development, liberal and free market oriented economic policy, 6 taxes only and reduced tax rates, reduced number of licenses and permissions, dramatically simplified administrative procedures, preferential trade regimes with foreign countries, advantageous geographic location, well-developed, integrated and multimodal transport infrastructure, educated, skilled and competitive workforce presents a solid ground for successful business in Georgia. In addition to other advantages, Georgia has Free Industrial Zones, where companies are exempt from all the corporate taxes.

From 2003 to 2011, FDI in Georgia amounted to US$8511.5 million. The highest volume of FDI – 2,015.0 million USD was reached in 2007, with 69.3% yearly growth. High rate of investment was maintained until 2008. In 2007, the EC27 accounted for over 56% of FDI inflows and in 2008 the EC, UAE, and Turkey accounted for nearly 60%. In 2009, FDI inflows were characterized by decreasing trend. The main reasons of decreasing were external shocks – Russian-Georgian war and the influences of global financial crisis.

In the first half of 2017, Armenian Investments to Georgia nearly doubled year-on-year to $5.6 million, while investments from Azerbaijan dropped by 20.3% year-on-year to the overall $224.18 million.

• In 2009–2011 the largest share of FDI felt on Industry sector (31.2) amounted to US$765 million, real estate sector (15.8%) amounting to US$389 million.

The table below shows FDI stock as a percentage of GDP in selected FSU countries. For statistical purposes, FDI is defined as a foreign company owning 10% or more of the ordinary shares of an incorporated firm or its equivalent for an unincorporated firm.

Foreign direct investment in the country of Georgia by year.

Trade

Since 2014, Georgia is part of the European Union's Free Trade Area, with the EU continuing to be the country's largest trading partner, accounting for over a quarter of Georgia's total trade turnover. Following the EU trade pact, 2015 was marked by further increase in bilateral trade, whereas trade with the Russian-led Commonwealth of Independent States (CIS) decreased by 22%.

In 2023, Georgia signed comprehensive economic agreement with UAE, under which two countries established free trade.

As of 2015, in the order of magnitude, Georgia's main exports were: copper ores and concentrates, ferroalloys, hazelnut, medications, nitrogen fertilizers, wine, crude oil, mineral water, non-denatured ethanol and spirits.

In 2015, Georgia's main imports, in the order of magnitude, were: oil products, vehicles, hydrocarbons, copper ores and concentrates, mobile phones and other wireless phones, wheat, cigarettes, iron tubes and pipes, structures and parts of structures of iron.

In 2019, Georgian exports to Armenia grew by 2% compared to the previous year, while imports decreased by 7%. Georgia exported 98.3 million $ worth of products to Armenia (4% of total exports), and imported 46.9 million $ (1% of total imports) in 2019.

International money transfers
Money transferred from abroad to Georgia in 2019 amounted to USD 1.73 billion, according to figures released by Georgia's central bank. Money transfers from Russia, which has been the largest source of remittances for Georgia for many years already, stood at USD 428.89 million in 2019.

Among other largest sources of remittances for Georgia are: Greece with USD 192.56 million in 2019, Italy – USD 239.17 million; the United States – USD 178.41 million; Ukraine – USD 47.3 million; Spain – USD 30.9 million; Turkey – USD 94.85 million; Kazakhstan – USD 26.63 million; the UK – USD 16.89 million; Israel – USD 162.55 million; Azerbaijan – USD 22.17 million; Germany – USD 49.81 million; France – USD 26.37 million; Canada – USD 14.21 million.

Institutional reforms
Under the Saakashvili administration, Georgia undertook a number of profound institutional reforms aimed at modernizing the economy and improving the business climate. Kakha Bendukidze (1956–2014) was one of the most notable team members during his governance, coordinating the Ministry of Economical Reforms of Georgia. Implemented institutional reforms created an effective, professional and transparent public sector, motivated to protect the principles of democracy. Due to the economic deregulation policy, number of state regulated spheres sharply decreased, as well as regulation procedures were simplified.

Georgia succeeded in fighting against corruption, that was one of the main obstacles for development. The success of Georgia is recognized by different rating agencies. According to the Transparency International, Georgia is the top country in the post-Soviet region in terms of fighting corruption. According to the Corruption Perception Index published by Transparency International, Georgia ranked 50th in 2014 (up from 113rd in 2004). "Global Corruption Barometer 2010" ranks Georgia the first among world countries in the term of decreasing corruption level. According to International Finance Corporation Business Perception Survey 2012, only 0.11% of surveyed (1 respondent out of 920) named corruption as a problem in relations with public organizations.

Georgia has the most liberal tax jurisdiction in Europe. The number of taxes is decreased from 21 to only 6, tax rates were reduced also. In addition, significant procedural and institutional reforms were implemented – simplified system of tax disputes was established, tax administration system was streamlined and most of the taxes currently are paid on-line.

Due to the customs reform, customs procedures were dramatically simplified. Customs tariffs reform significantly simplified and sharply reduced the costs connected to the foreign trade. The number of import tariffs was abolished on approximately 90% of products and only 3 tariff rates exist instead of the previous 16. Currently, 86% of tariff lines are duty-free compared to 26% in 2005. Modern Customs Clearance Zones were established and customs clearness procedures could be made starting from 15 minutes only.

Modernization of the system of licenses and permits resulted in decrease in the number of licenses and permits and simplification of related administrative procedures.

Privatization of state property – Starting from 2004, provision of a transparent privatization policy was one of the important reforms of the Government of Georgia, that was addressed to denationalization of the remained state property in order to attract foreign investments, increase and develop the private sector and effective use of country's resources.

Liberal labour legislation simplified the relations between employers and employees. As a result of the reform, ”Heritage Foundation” and other analytical centers named Georgian Labour Code as one of the most liberal in the world because it significantly reduced hiring and firing expenses.

Georgia offers the most simplified procedures for registration of business, property, for getting different documentations via “One-Stop-Shops”, where the most procedures could be done on-line. Doing Business 2012 report (WB) places Georgia 16th in terms of Ease of Doing Business index (up from 112 in 2006), naming Georgia as the top reformer amongst the 174 countries over the last 5 years. Georgia is amongst the leaders in other ratings, namely, registering property – first place; Dealing Construction Permits – 4th place, starting a Business – 7th place; Getting Credits – 8th place.

Licensing regulation
Due to the reform of the system of licenses and permits, the number of licenses and permits was reduced by 90%. Currently, licenses and permits are only used in the production of highly risky goods and services; also usage of natural resources and specific activities. The procedures of issuing licenses and permits were significantly simplified, the “One-Stop Shop” and “Silence is Consent” principles were introduced which implies that if a person is not notified with argumentation rejection about the issuance of license in limited framework, the license is considered as issued from the relevant body.

The procedures for getting a construction permit was dramatically simplified, and it requires just 3 procedures. The time for getting the construction permits was sharply reduced. According to Doing Business 2012 (WB) Georgia is the best performer in the Eastern Europe and Central Asia (ECA) region and places on 4-th position in the world. The number of procedures and days, the cost (% of income per capita) is much lower, than in ECA region and OECD countries.

Things have changed after the new Law on Issuance of Licenses and permits was introduced in 2005. The approval process for building a warehouse in Georgia is now more efficient than in all EU countries except Denmark.

Tax collection
Since January, 2011 the new Tax Code came into force. It unifies the old Tax and Customs Codes. The new Tax Code increased confidence towards the Georgian tax system and enhanced trust in the Georgian tax authorities, by improving communication between taxpayers and the tax authorities, by protecting the taxpayers’ rights, by making administration more efficient, and by harmonizing the Georgian laws with the best international tax practices and EU directives.

Only 6 taxes exist in Georgia with law tax rates: Income Tax (personal income tax) 20%; Profit Tax (corporate tax) – 15%; Value Added Tax – 18%; Excise – varies; Property Tax up to 1% of the self-assessed value of property; Customs Tax – 0%; 5%; 12%. In addition, significant procedural and institutional reforms were performed, simplified tax dispute settlement, streamlined tax administration decreased the time and cost of paying taxes. Georgia made paying taxes easier for firms by simplifying the reporting for value added tax and introducing electronic filling and payment of taxes.

The number of import tariffs was abolished on approximately 90% of products and only 3 tariff rates (0%, 5%, 12%) exist instead of the previous 16. Georgia sets Import Taxes on only several kinds of agricultural and manufactured goods. In addition, there are no quantitative restrictions (quotas) on imports and exports.

Labour regulation
With unemployment around 16% and many jobs in the informal sector, Georgia undertook a far-reaching reform of labour regulation. The new Labour Code was adopted on 17 December 2010. The new law eases restrictions on the duration of term contracts and the number of overtime hours, and discards the premium required for overtime work. It also eliminates the requirement to notify and get permission from the labour union to fire a redundant worker. The new law provides for 1 month's severance pay at least, replacing complex rules under which required notice periods depended on seniority and the manager had to write long explanations to labor unions and the relevant ministry. In general, new regulations make the Georgian labor market much more flexible.

Coupled with the fact that Georgia also reduced the social security contributions paid on wages by businesses from 31% to 20% in 2005, and abolished them entirely starting January 2008, these changes make Georgia the sixth-easiest place to employ workers globally.

Judicial procedure
Reducing corruption in the courts was one of the chief priorities of the new government. Since 2004, when the Saakashvili administration came in, seven judges have been detained for taking bribes and 15 brought before the criminal courts. In 2005 alone, the judicial disciplinary council reviewed cases against 99 judges, about 40% of the judiciary, and 12 judges were dismissed. At the same time, judges’ salaries were increased fourfold, to reduce dependence on bribe money.

According to Global Property Guide index, Georgia currently holds 40 points out of 100. That stands for "The court system is highly inefficient, and delays are so long that they deter the use of the court system. Corruption is present, and the judiciary is influenced by other branches of government. Expropriation is possible."

Unemployment
Unemployment has been a persistent problem in Georgia ever since the country gained independence in 1991. According to National Statistics Office (Georgia) unemployment rate stood at 16.9% in 2013 and it has been decreased at 16.4% in 2023.

Nearly a half of Georgia's population lives in rural areas, where low-intensity self-sufficient farming provides the principal source of livelihood. Georgian statistics service puts individual persons into the category of self-employed workers. As of 2007 416,900 persons were listed as self-employed in agriculture. For large families, heads of households are typically described as "individual entrepreneurs", members of the family that help to cultivate land are classified as "unpaid family business workers". The use of this methodology produces relatively low unemployment rates for rural areas rather in urban areas and in Tbilisi. Neighbouring countries show somewhat similar results. For example, Armenia in 2015 had 18.26% unemployment rate, which is 532.644 people.

Energy
In recent years Georgia has fully deregulated its electricity sector, and now there is free and open access to the market.

Georgia has a sizable hydroelectric capacity, a factor that has become an increasingly important component of its energy supplies and policies. The country's topography and abundance of hydro resources give it serious potential to dominate hydroelectric markets in the Caucasus region. The Georgian Ministry of Energy estimates that there are around 26,000 rivers within Georgian territory, with approximately 300 of those rivers being significant in terms of energy production. The Ministry also claims that current projects for hydroelectric power plants total around US$2.4 billion. Alexander Khetaguri, the former Georgian Minister of Energy, proposed new hydroelectric projects worth well over 22,000 megawatts of capacity, which would cost over US$40 billion and would be privately funded. These projects alone would transform Georgia into the world's second-largest hydropower producer.

In 2007, Georgia generated 8.34 billion kilowatt-hours of electricity while consuming 8.15 billion kWh. Most of Georgia's electricity generation comes from hydroelectric facilities. In 2005, the country generated 6.17 billion kWh of hydropower, or 86% of total electricity generation. In 2006, rapid growth in hydroelectricity output (by 27%) was matched by equally strong growth in thermal electricity (by 28%). Since then, the share of hydropower has grown even bigger, when Inguri power plant reached full capacity in November 2007. In addition to state-owned Inguri, which has an installed capacity of 1,300 megawatts, Georgia's hydroelectric infrastructure consists of many small private plants.

In recent years, Georgia became a major exporter of electricity in the region, exporting 1.3 billion KWh in 2010. Hydropower stations of Georgia produce 80-85% of the electricity utilized within the country, the remaining 15-20% is produced by thermal power stations. According to Ministry of Energy and Natural Resources, so far, Georgia has been exploiting only 18% of its hydro resource potential.

Georgia's reliance on hydropower leaves the country vulnerable to climatic fluctuations, which requires imports to meet seasonal shortages, but also opens the possibility of exports during wetter conditions. Georgia still has the potential to increase hydro-generated power, through refurbishing existing facilities, as well as constructing new hydropower plants.

One of the more difficult realities facing many of the former Soviet republics was the loss of Soviet-subsidized fuel and utility transfers. Prior to 2004, Georgia's transmission network was in critical condition, with electricity blackouts being common throughout the country. In response to mounting pressures, the Georgian government initiated a series of legislative reforms in 1998 and 1999 to begin to develop the power sector and electricity markets. While measures were taken to unbundle and liberalize the energy sector, a new law was drafted and Georgia's independent regulatory authority, the Georgian National Energy Regulatory Commission (GNERC), was formed. In addition to providing government subsidies, the GNERC was able to increase the prices of electricity and natural gas in Georgia to buffer the costs of recovery from the state's reform process. Following these reforms, distribution has been increasingly more reliable, approaching consistent 24-hour-a-day services. Investments in infrastructure have been made as well. Currently, a privately owned Energo-Pro Georgia, controls 62.5% of the electricity distribution market.

Georgia has transmission lines that connect its power grid to Russia, Turkey, Armenia and Azerbaijan. In July 2008, Georgia began exporting electricity to Russia through the Kavkasioni power line. Later in 2009, Georgian Energy Minister Alexander Khetaguri incited scandal for a business deal struck with the Russian energy company, Inter RAO, to jointly manage the Georgian Inguri hydropower plant for 10 years. Khetaguri's proposal would entail a cash flow of around US$9 million into Georgia for use of the plant. Tensions ran high, however, as the Inguri hydropower plant provides nearly 40 to 50 percent of the country's electricity and is located at the administrative border of the secessionist Abkhazia region.

Georgian Natural gas consumption stood at 1.8 billion cubic meters in 2007. Natural gas used to be supplied to Georgia by Russia. In recent years, however, Georgia has been able to eliminate its dependency on imports from Russia, thanks to increased hydroelectricity production, and the availability of natural gas sources from Azerbaijan. In addition, all Russian gas exports to Armenia pass through the Georgian pipeline system. Georgia takes 10% of that gas as a transit fee.

Georgia is a partner country of the EU INOGATE energy programme, which has four key topics: enhancing energy security, convergence of member state energy markets on the basis of EU internal energy market principles, supporting sustainable energy development, and attracting investment for energy projects of common and regional interest.

Agriculture
Currently, about 55% of the total labor force is employed in agriculture, though much of this is subsistence farming.

Georgian agricultural production is beginning to recover following the devastation caused by the civil unrest and the necessary restructuring following the breakup of the Soviet Union. Livestock production is beginning to rebound, although it continues to be confronted by minor and sporadic disease outbreaks. Domestic grain production is increasing, and the government invests in improvement of infrastructure improvements to ensure appropriate distribution and revenues to farmers. Tea, hazelnut and citrus production have suffered greatly as a result of the conflict in Abkhazia, a crucial area for planting the latter crops.

Approximately 7% of the Georgian GDP (2011) is generated by the agrarian sector.

Viticulture and winemaking are the most important fields of Georgia's agriculture. Over 450 species of local vine are bred in Georgia, and the country is considered as one of the oldest places of producing top-quality wines in the world. Russia was traditionally the biggest export market for Georgian wine. This, however, changed in 2006, when Russia banned imports of wine and mineral water from Georgia, preceded by statements of Georgian governmental officials about low quality requirements of the Russian market. Since then Georgian wine producers have struggled to maintain output and break into new markets.

In 2011 Georgia sold wine in total amount of 54 mln USD in 48 countries and alcoholic beverages in total amount of 68 mln USD in 32 countries. Vines and alcoholic beverages are in the top 10 export commodity's list with 2,5% and 3.1% share respectively. According to National Wine Agency of Georgia, export of Georgian wine is increasing. 2011 wine export is 109% higher than 2007 exports. According to 2012 information, Georgia trades wine with 43 countries, selling over 23 million bottles. Biggest export partners for Georgia in wine industry are Ukraine (47.3% of wine export), Kazakhstan (18.9%) and Belarus (6.9%). In 2011 export of vines, mineral waters and alcoholic beverages exceeded export of all years after 2006. Georgia is rich with spring waters and production of mineral waters is one of the main spheres of industry. Export of mineral waters in 2011 amounted to 48 mln USD in 35 countries. Share of mineral water in total export is 2.1%. Food processing industry is developing to align with the primary agricultural production and export of processed products is increasing year by year. Export of nuts constituted about 6% of Georgian export (2011) and is among 10 top export commodity list with total amount of 130 mln USD. Nuts was exported in 53 countries.

Rural population as a percentage of total population in Georgia was 48.2% in 2011 and decreased to 46.3% in 2014.

In 2018, in addition to smaller productions of other agricultural products, Georgia had produced:
 * 259 thousand tons of grape;
 * 237 thousand tons of potato;
 * 194 thousand tons of maize;
 * 107 thousand tons of wheat;
 * 82 thousand tons of apple;
 * 62 thousand tons of tangerine;
 * 57 thousand tons of barley;
 * 57 thousand tons of watermelon;
 * 51 thousand tons of tomato;
 * 33 thousand tons of cucumber;
 * 27 thousand tons of peach.

Tourism
Tourism in Georgia is one of the fastest growing sectors of the local economy, which has high potential for further development. During recent years the number of visitors to Georgia increased significantly contributing to the growth of other tourism related sectors. In 2011, more, about 3 million visitors visited Georgia 40 percent more, than in 2010. To foster the development of the tourism sector the Government of Georgia invests heavily in the development of the transportation and basic infrastructure, renovation and development of tourism destinations, which is a stimulus for the private investment generation. In 2011, total output of tourism related services production increased by 77% compared to 2006 and constituted 7.1% of total output of economy. In 2018 tourism generated 3.4 billion dollars in tax revenue for Georgia.

The following table shows the monthly average for incoming tourists in Georgia by citizenship and number of visits (in thousands).

According to data from Georgia's National Tourism Administration, TASS reported that Armenia is third on the list of countries with the most visits from citizens in 2021. Turkey leads the pack in terms of trips made by visitors to Georgia last year, with 326 thousand, 2.7% fewer than in the previous year. With more than 212 thousand tourist visitors, 2.1% more than in 2020, Russia comes in second. Georgia received over 1.8 million international visits in total in 2021, an increase of 7.7% from the previous year.

Logistics
Georgia is one of the key members in international TRACECA programme due to its important geographical and political location. Since it is situated right in between of Europe and Asia, the country is supposed to become a busy transitional hub of a modern Silk Road in the near future. On March 11 of 2015, Georgian media declared that the Chinese and Georgian companies have reached an agreement in Beijing concerning the developing of the deep-water port at Anaklia, which existence is crucial for the TRACECA route. The port will be constructed on a plot of over 1,000 hectares and have access to a deep sea canyon. US-Based SSA Marine was later finally chosen to Invest in and Operate Container Terminal of Anaklia Deep Sea Port in Georgia by signing an agreement with Anaklia Development Consortium on 1 August 2017.

First train containing 82 containers and 41 platforms came from China to Baku, Azerbaijan on July 28. It is planned to launch a first carriage using this way through Georgia to Istanbul in September 2015. Baku–Tbilisi–Kars railway became operational on October 30, 2017.

Re-exportation of vehicles which is one of the income sources for Georgia has lowered much during 2014–2015 stagnation, most noticeably to Azerbaijan: it became 5.1 times less (on 10 337 cars) comparing to the previous year.

Finance
Like most other post-soviet countries, Georgia's finance sector is dominated by banks. As of 2015, there were 21 commercial banks, of which 5 large banks controlled most of financial assets. There are some major challenges facing the banking sector. For instance, banks play a limited role in financing the real economy and in investing in activities that are required to stabilize the country's persistent trade.

Companies
In 2022, the sector with the highest number of companies registered in Georgia is Manufacturing with 3,905 companies, followed by Services and Wholesale Trade with 2,934 and 1,036 companies respectively.

Human Development Index of Georgia
Human Development Index is a composite statistic of life expectancy, education, and income indices used to rank countries into four tiers of human development. Georgia's HDI value for 2017 is 0.780— in the high human development category—positioning it at 70 out of 189 countries and territories. The rank is shared with Antigua and Barbuda. Between 2000 and 2017, Georgia's HDI value increased from 0.673 to 0.780, an increase of 15.9 percent or average annual increase of about 0.9 percent. Between 1990 and 2017, Georgia's life expectancy at birth increased by 3.1 years, mean years of schooling increased by 1.1 years and expected years of schooling increased by 2.6 years, also Georgia's GNI per capita increased by about 21.0%. However, it is misleading to compare values and rankings with those of previously published reports, because the underlying data and methods have changed over time.

license: Creative Commons - Attribution Share-Alike - https://creativecommons.org/licenses/by-sa/4.0/

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Telecommunications in Georgia (country)

Telecommunications in Georgia include radio, television, fixed and mobile telephones, and the Internet.

Radio and television

 * Radio broadcast stations: AM 7, FM 12, shortwave 4 (1998). There are 35 FM stations in the country, as of 2021.
 * Radios: 3.02 million (1997).
 * Television broadcast stations: 25 (plus repeaters) (2011).
 * Televisions: 2.57 million (1997).

Cellular Networks

 * Calling code: +995
 * Mobile Phone subscribers: 4,955,272 million lines (April 2021)

There are three cellular telephone networks: MagtiCom LTD, Silknet JSC, and Cellfie Mobile (Formerly known as Beeline). The cellular network market counts more than 4,955,272 active customers in total.

Coverage extends to over 98% of the populated territory as of 2010; In urban areas there are 20 telephones per 100 people and in rural areas 4 telephones per 100 people.

In 2020, the Georgian National Communications Commission announced its plans to introduce Mobile virtual network operators in 2021. The first MVNO in the country, Hallo, launched in Q4 of 2022 and it is based on Silknet's infrastructure. Tele 1 (also marketed as Tele One) is going to launch soon. It is not yet clear which operator's infrastructure the company will use. Tele 1 has already started operating in the country partially, but its services (video and audio calling) are available only through their apps as of now (VoIP).

The Georgian National Communications Commission has announced an auction for the 5G spectrum. It will be held in August 2023 and most of the lots come with a requirement for MNOs to start talks with MVNOs, which means they will not be able to keep their infrastructure closed off if they want to buy licenses for specific 5G frequencies.

Fixed Telephony, Internet and IP Television

 * Internet Service Providers: at least 10 ISPs.
 * Fixed Internet Subscribers: 977,6 thousand lines (April 2021)
 * Internet Protocol television Subscribers: 551 thousand lines (April 2021)
 * Fixed Phone Subscribers: 830,222 lines in use (2009), 366,250 lines in use (April 2021)
 * Top-level domain: .ge

The fixed telephony, internet and IP television in Georgia is mainly operated by MAGTICOM, Silknet and New Net, all of which controlled 90% of the market in 2018. By the end of 2008, there were 618,000 fixed telephone users in Georgia. In urban areas there are 20 telephones per 100 people, and in rural areas there are four telephones per 100 people.

Additionally, Datahouse Global LLC, Geonet LLC, Inexphone LLC, and Myphone LLC are providing VoIP-based fixed telephony services over the country.

Fiber-optic lines connect the major cities and Georgia and Bulgaria are connected with fiber-optic line between Poti and Varna (Bulgaria). The home internet provider industry in Georgia is heavily monopolized by 2 major competitors: Silknet and MAGTICOM. There are other smaller, more obscure providers as well, but these two are the most popular and have the biggest nationwide coverage. Both companies offer TV and mobile packages that can be combined with home internet as well.

Internet censorship and surveillance
Listed as engaged in selective Internet filtering in the political and conflict/security areas and as no evidence of filtering in the social and Internet tools areas by the OpenNet Initiative (ONI) in November 2010.

Access to Internet content in Georgia is largely unrestricted as the legal constitutional framework, developed after the 2003 Rose Revolution, established a series of provisions that should, in theory, curtail any attempts by the state to censor the Internet. At the same time, these legal instruments have not been sufficient to prevent limited filtering on corporate and educational networks. Georgia's dependence on international connectivity makes it vulnerable to upstream filtering, evident in the March 2008 blocking of YouTube by Türk Telekom.

On March 14, 2016, access to YouTube was restricted nationwide. This restriction of access was to presumably prevent Georgian citizens from accessing a video which threatened a number of journalists and opposition figures with the exposure of covertly recorded video tapes of sex acts. YouTube access went down throughout Georgia until the threatening video was removed from the internet.

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Transport in Georgia (country)

For Soviet transportation, see Transport in the Soviet Union.

Railways

total: 1,683 km in common carrier service; does not include industrial lines broad gauge: 1,583 km of gauge (1993) narrow gauge: 100 km of gauge.

City with metro system: Tbilisi (see Tbilisi Metro).

 * In April 2005, an agreement was signed to build a railway from Turkey through Georgia to Azerbaijan (see Kars Baku Tbilisi railway line). The line under construction is using Standard gauge until Akhalkalaki. There will be axle change station for wagons to proceed with broad gauge to Baku.
 * In August 2007, Georgia handed over the management rights of the state-owned Georgian Railway company to the U.K.-based company Parkfield Investment for 89 years.

Railway links with adjacent countries

 * 🇷🇺 Russia - yes - - via the breakaway Autonomous Republic of Abkhazia - closed for political reasons.
 * 🇦🇿 Azerbaijan - yes -.
 * 🇦🇲 Armenia - yes
 * 🇹🇷 Turkey - yes - break-of-gauge with through (Standard Gauge).

2007

 * February 7 - agreement signed for Kars-Tbilisi-Baku railway

Towns served by rail

 * Poti - port
 * Batumi - port
 * Kutaisi
 * Akhaltsike

Highways
The total length of the road network is approximately 21000 km kilometers (2020 ), divided over roughly 1600 km of international trunk roads, 7000 km of domestic main roads and some 12400 km local roads. Only a limited number of kilometers are express roads or motorways which are in good condition. The quality of the other roads varies greatly.

Motorways
Georgia has a limited multilane expressroad/motorway system, that is under development. In 2021 these sections are: Additionally, the S2 highway has 32 km limited access two-lane freeway (Kobuleti Bypass).
 * S1 highway Mukhatgverdi (Tbilisi West) - Surami 113 km
 * S1 highway Argveta - Samtredia 58 km
 * S4 highway Ponichala (Tbilisi) - Rustavi 9 km
 * S12 highway Japana - Lanchkhuti 14 km

Pipelines
Crude oil 370 km; refined products 300 km; natural gas 440 km (1992)

Black Sea Ports and harbors
Batumi, Poti, Sokhumi, Kulevi Oil Terminal

Merchant marine
total: 17 ships (with a volume of or over) totaling / ships by type: cargo ship 10, chemical tanker 1, petroleum tanker 6 (1999 est.)

Airports

28 (1994 est.) In February 2007 a brand new, modern and fully equipped international Airport was inaugurated in Tbilisi.
 * Tbilisi - Shota Rustaveli Airport
 * Batumi - Alexander Kartveli Airport
 * Kutaisi - David The Builder Airport
 * Mestia - Queen Tamar Airport
 * Ambrolauri - Ambrolauri Airport
 * Poti - Poti International Airport

Airports - with paved runways
total: 14 over 3,047 m: 1 2,438 to 3,047 m: 7 1,524 to 2,437 m: 4 914 to 1,523 m: 1 under 914 m: 1 (1994 est.)

Airports - with unpaved runways
total: 14 over 3,047 m: 1 2,438 to 3,047 m: 1 1,524 to 2,437 m: 1 914 to 1,523 m: 5 under 914 m: 6 (1994 est.)

title: Transport in Georgia (country)


text:
Defence Forces of Georgia

The Defence Forces of Georgia (საქართველოს თავდაცვის ძალები), or Georgian Defence Forces (GDF), are the combined military forces of Georgia, tasked with the defence of the nation's independence, sovereignty, and territorial integrity. They consist of the Land Force, Air Force, National Guard, and Special Operations Forces. The Defence Forces are under overall leadership of the Minister of Defence of Georgia and directly headed by the Chief of Defence Forces.

The first regular military was established in the first Georgian Republic in 1918 and was in existence until after the republic's overthrow by the invading Soviet Russian forces in 1921. The modern Georgian military were founded in accordance with the government decree of 24 April 1991. 30 April, the day when the first conscripts were called up for military service in 1991, has been celebrated as the day of the Georgian military forces.

The Georgian military have fought in the civil war and separatist conflicts in the 1990s and the Russo-Georgian War of 2008 as well as major international military missions such as in Iraq and Afghanistan. Georgia was one of the first former Soviet republics to join the NATO Partnership for Peace program in 1994 and Individual Partnership Action Plan (IPAP) in 2004 and has sought to bring its military in line with the NATO standards.

Establishment and early years
On 20 December 1990, President Zviad Gamsakhurdia ordered the creation of what is now the Defence Forces. In January 1991, Soviet President Mikhail Gorbachev and Supreme Soviet Chairman Anatoly Lukyanov, demanded that Gamsakhurdia to stop the creation of the National Guard. The first military parade of the National Guard was held at Boris Paichadze Stadium on 30 April 1991, where for the first time in 70 years, Georgians swore allegiance to the Georgian people. This day is today commemorated as Defence Forces Day.

The new military was mainly manned by volunteers as well as ethnically Georgian officers who were serving in Soviet Army at the time. The transfer of former Transcaucasian Military District facilities, weapons and formations located in Georgia, which began in early 1992, lasted until 1997. On 30 April 1992, an agreement was signed on the transfer of military units and facilities by the heads of the defence ministries of the Russian Federation and Georgia. According to it, Georgia received the following formations:

During the Georgian Civil War, units waged war with supporters of the ousted Gamsakhurdia. The Georgian Armed Forces also took part in the 1991–1992 South Ossetia War and the War in Abkhazia (1992–1993), losing both, after which Georgia lost control over most of the territory of these republics.
 * 10th Armoured Division (without 403rd Motorized Rifle Regiment) – Akhaltsikhe
 * 6th Fortified Area – Akhaltsikhe
 * 8th Fortified Area

21st century
The Georgia Train and Equip Program (GTEP) training was conducted using U.S. Special Operations Forces and U.S. Marine Corps forces from May 2002 to May 2004. During this time approximately 2,600 Georgian soldiers, including a headquarters staff element and 5 tactical units, received training. Another assistance program, the Georgia Security and Stability Operations Program (Georgia SSOP), was launched in January 2005 as a continuation of the (GTEP) of 2002–2004. Georgian contingents were involved in the Kosovo Force and continue to participate in the operations in Iraq and Afghanistan.

The DFG have been extensively reformed in the recent years to meet Georgia's aspirations to join NATO and for better response to the existing challenges such as the ongoing tensions in the unresolved separatist conflict areas in Abkhazia and South Ossetia as well as to the threats of global terrorism. Georgia also views a large-scale foreign invasion and the spillover of conflicts from Russia's North Caucasus as the worst potential near- and long-term scenarios, respectively.

On 8 August 2008 the Georgian military conducted an operation in Georgia's breakaway region South Ossetia (see 2008 South Ossetia War) in response to separatist attacks. The operation led to an armed conflict with forces from the Russian Federation and resulted in the defeat and expulsion of Georgian forces from South Ossetia and Abkhazia. Following the military operations, Russia recognized independence of the regions.

The military budget of Georgia increased more than 50 times over the period from 2002 (US$18 mln.) to 2007 (US$17000 mln.), reaching over 7% of Georgia's GDP. Currently the budget is 5000mln USD (145.5 Billion GEL).

Russo-Georgian War
In August 2008, following a series of fierce clashes in South Ossetia, Georgia attempted to re-take the separatist territory by force. In the resulting military conflict with Russia, Georgia was driven out of South Ossetia and Abkhazia, and lost parts of its military capabilities. Russian forces sank four Georgian naval vessels in the port of Poti and hauled away nine rigid-hull inflatable boats. Georgia Land Forces lost approximately 30 T-72's, 6 BMP's, 2 BTR's and around 10 artillery pieces of all types in combat. The Russians also captured 5 intact BMP's, approximately 5 artillery pieces, BUK SAM system and OSA SAM system. The Georgian Air Force lost three AN-2's, 2 Mi-24's and 1 Mi-14 on the ground. Ministry of Internal Affairs of Georgia lost 2 Hermes 450 reconnaissance drones and 1 Otokar Cobra APC. The Russian military lost more military equipment in combat than Georgia.

Reconstruction
Georgia immediately began a process of re-armament after the war. The conflict was immediately followed by a replenishment program of the gaps in the single GAF arms components with an additional massive re-equipment and modernization program. Two Georgian naval vessels sunk in Poti were raised and returned to service. The Georgian Navy's remaining operational units were merged into the Coast Guard, which received training in search and seizure tactics from the United States. Ukraine supplied Georgia with 30 BTR-70 armored personnel carriers, 2 BUK SAM system batteries and 6 OSA mobile SAM systems. Israel supplied Georgia with 13 Wolf APC's and SPYDER-SR SAM systems and many types of firearms. The U.S. supplied Georgia with many types of infantry equipment to Georgia such as infantry personal protection equipment, firearms, APC's and anti tank missiles. Georgia has also received MANPADs and radars from France. NATO militaries also often train with Georgian military and have annual military drills in Georgia. Georgia also rebuilt its damaged military bases and constructed more military barracks. By late 2010 the Georgian military had reached a strength greater than pre-war levels and, after completing the reforms, decisively reduced military spending. Beginning in 2010, Georgia started to produce its own line of APC's, IFV's, infantry personal protection equipment, small arms and mortars.

Structure
The Defence Forces of Georgia consist of four branches: Land Forces, Air Force, National Guard, and Special Operations Forces.

The overall command is exercised by the Chief of Defence Forces, who is aided by the General Staff of the Defence Forces. The Defence Forces are further organized into several structural units:
 * Eastern Command
 * Western Command
 * Air and Air Defence Command
 * Special Operations Forces
 * Military Training and Education Command
 * Army Logistics Command
 * National Guard
 * Military Police
 * Department of Military Intelligence

In wartime, several other bodies fall under the control of the Defence Forces additionally. These are:
 * Border Police of Georgia, a subordinate agency of the Ministry of Internal Affairs of Georgia
 * Department of Special Operations - Public Security Forces, a subunit of the Ministry of Internal Affairs of Georgia
 * Department for Protection of Strategic Pipelines, a subunit of the Ministry of Internal Affairs of Georgia
 * Department for Protection of Strategic Infrastructure, a subunit of the Ministry of Internal Affairs of Georgia
 * National Defence Academy of Georgia, a legal entity under the Ministry of Defence
 * Military Hospital of the Ministry of Defence
 * Cybersecurity Bureau, a legal entity under the Ministry of Defence
 * Data Exchange Agency, a legal entity under the Ministry of Justice of Georgia.

The Eastern Command and its Western counterpart are two main regional operational groupings, respectively, for eastern and western Georgia. They were created in the 2010s in order to have two autonomous territorial commands, with their own military staffs, logistical and administrative resources.

Branches
The Land Forces form the largest component of the DFG responsible for providing land defence against any threat to the nation's sovereignty and territorial integrity, supporting Border Police in border protection and civil authorities in counter-terrorist operations as well as providing units for NATO-led and coalition operations abroad. They are organized into infantry brigades, artillery and other supporting capacities operating at a battalion level.

The Special Operations Forces are responsible for conducting special reconnaissance, unconventional warfare and counter-terrorism operations. The Georgian National Guard organizes and trains reservists in the peacetime and mobilizes them during a crisis or wartime.

Ground arms
The structure of the Georgian Land Forces is based on brigade and battalion-sized military units. The main force consists of four infantry, one special operations, two artillery, one air defence brigades and several independent battalions. Georgian brigades have a total manpower of 3,000 each excluding non-combat personnel. The overall strength of the land forces in 2013 was 37,825 (excluding active reserve), from which 21 were high-ranking officers, 6,166 officers and sergeants, 28,477 corporals and privates, 125 cadets and 388 civilians. Accordingly, to reach NATO structures and higher standards the brigades were downsized to optimal as well as the 5th brigade disbanded, also to increase the percentage of spending on arms acquirement, which was previously 2%, to 6% of the military budget. The goal is to reach at least 15% until 2020. The ground forces are equipped with a variety of weapons and vehicles. Special forces operate independently under MOD direction.

The Georgian Land Force consists of following primary combat formations (incomplete):

Force composition

 * HQ, Land Forces Command (Tbilisi)
 * Central Command Point
 * Georgian Defense Forces Eastern Command flag (2018).png Operational Command East
 * 1st Infantry Brigade (Tbilisi)
 * 11th Light Infantry Battalion
 * 12th Light Infantry Battalion - NRF
 * 13th Light Infantry Battalion
 * 14th Mixed Armored Battalion
 * Artillery Battalion
 * Logistics Battalion
 * Reconnaissance Company
 * Engineer Company
 * Signal Company
 * 4th Mechanized Infantry Brigade (Vaziani)
 * 41st Mechanized Infantry Battalion
 * 43rd Mechanized Infantry Battalion
 * 42nd Mixed Armored Battalion
 * 44th Artillery Battalion
 * Logistics Battalion
 * Reconnaissance Company
 * Engineer Company
 * Signal Company
 * 5th Artillery Brigade (Vaziani)
 * 51st Artillery Battalion
 * 52nd Artillery Battalion
 * 53rd Security Battalion
 * Air Defence Company
 * Special Operations Battalion
 * Ranger Battalion
 * Combat Engineer Battalion
 * Georgian Defense Forces Western Command flag (2018).png Operational Command West
 * 2nd Infantry Brigade (Senaki)
 * 21st Light Infantry Battalion
 * 22nd Light Infantry Battalion
 * 23rd Light Infantry Battalion
 * 21st Mixed Armored Battalion
 * Artillery Battalion
 * Logistics Battalion
 * Reconnaissance Company
 * Engineer Company
 * Signal Company
 * 3rd Infantry Brigade (The Mamelukes) (Kutaisi)
 * 31st Light Infantry Battalion
 * 32nd Light Infantry Battalion
 * 33rd Mixed Armored Battalion
 * 34th Artillery Battalion
 * Logistics Battalion
 * Reconnaissance Company
 * Engineer Company
 * Signal Company
 * 6th Artillery Brigade (Khoni)
 * 61st Artillery Battalion
 * 62nd Artillery Battalion
 * 63rd Security Battalion
 * Air Defence Company
 * Naval Special Operations Company
 * Combat Engineer Battalion
 * Medical Company
 * Separate Communications Company

Separate Elements

 * Georgian Air Force and Air Defense Command flag (2018).png Aviation and Air-Defence Command
 * Georgian Defense Forces Army Logistics Command flag (2018).png Army Logistics Command
 * Georgian Defense Forces Military Training and Education Command flag (2018).png Training and Education Command
 * Engineer Brigade
 * Separate Reconnaissance Battalion (Kobuleti)
 * Separate Medical Battalion (Saguramo)
 * Separate Signal Battalion
 * Separate Logistics Battalion

In 2011 the Georgian high command decided to divide its military forces into two main operational units; the Eastern and Western Operational Groups. The aim was to create two independently acting military districts which would consist of forces in accordance to the strategic value of their deployment areas yet being balanced in their type of equipment. In case of war each group will be able to coordinate its operations independently from high command, having its own logistical and administrative reserves.

Special Operations Forces
The Special Operations Forces of the Defence Forces of Georgia were established to conduct unconventional warfare and the full spectrum of special operation missions. They also serve in supporting capacity for regular military forces, primarily in the areas of education and training.

Georgian special forces became first active in 1999 as part of KFOR. Georgian commandos participated in the Iraq War from 2003 until the complete withdrawal of the Georgian contingent in 2008 due to an escalation of hostilities in South Ossetia. According to independent accounts, a number of Georgian operatives were also deployed prior in Afghanistan to aide US Special Forces in hunting down Taliban leaders. Georgian officials have stated that a group of servicemen were deployed in Afghanistan for medical purposes.

Air Force
The Georgian Air Force (Georgian: საქართველოს საჰაერო ძალები, sak'art'velos sahaero dzalebi) is the air force of the Defence Forces of Georgia. It was established as part of the Georgian Armed Forces in 1992 and merged into Army Air Section in 2010. As part of reforms in the Georgian military, the Air Force was reestablished as a separate branch of the Defence Forces in 2016. Under the leadership of Georgian Minister of Defence Irakli Garibashvili the Air Force was re-prioritized and aircraft owned by the Georgian Air Force are being modernized and re-serviced after they were left abandoned for 4 years. The Minister of Defence also announced plans to acquire strike drones to increase Georgia's combat readiness.

Georgian Coast Guard (Former Naval Force)
The Georgian Navy was abolished in 2009 and was incorporated into the Coast Guard, which is not structurally part of the Defence Forces, but rather it is a subunit of the Border Guard of Georgia, which is under the control of Ministry of Internal Affairs of Georgia. The Coast Guard of Georgia is responsible for maintenance of the sovereignty of the country and for protection of internal territorial waters and economic zones. The headquarters and a principal Coast Guard base are located at the Black Sea port of Poti.

The other, smaller Coast Guard base is in Batumi. Besides the naval force, the navy also includes a Special Counter-terrorist Detachment force. Georgia is also one of the founding members and a participant of the Black Sea Naval Co-operation Task Group. Before the war with Russia, the Georgian navy had 19 naval vessels. Four of them were sunk during the conflict, and nine rigid-hull inflatables were captured by Russia. The Georgians raised and returned to service two of the sunken vessels, and partially replaced their losses with Turkish-built patrol/fast attack boats.

National Guard of Georgia
The National Guard of Georgia was established on 20 December 1990 and was manned mainly by volunteers. It represents the first Georgian armed formation, which became the base of the foundation for modern Defence Forces of Georgia. The Guard actively participated in the conflicts that occurred in Georgian territory (Samachablo, Abkhazia).

The National Guard used to consist of 20,554 personnel, but has now been reduced to 550.

 * 1) Support civil government in crisis situations (natural, technological, ecological);
 * 2) Register mobilization resources, study and deliver;
 * 3) Convene, select and man of citizens on the basis of the agreement, for the units, subunits and bases of the Defence Forces;
 * 4) Provide ceremonial activity support;
 * 5) Assisting in training the Reserve Forces.

Army Reserve and Territorial Defence Forces
The Army Reserve is a professional reserve force consisting of former regular army personnel only. Due to the amount of experience, the Reserve personnel would be drawn from to replace losses in the ranks of regular formations, but will if needed operate in the vanguard of a combined mechanized group or an infantry assault.

The Territorial Defence Forces were established for immediate readiness of the population in crisis events, such as war. Its main goals would be the fortification and defence of all populated and strategically important areas as well as providing quick aid or security for evacuation operations in case of natural catastrophes.

Other than the active army reserve which consists of only ex military personnel, the Territorial Defence Forces are rather sparsely prepared for complex military operations. It instead provides more comfort for the regular forces in case of war, by acting as an additional logistical arm and leaving the actual combat to the regular forces. With the land forces and reserve army engaged in direct action, the Defence Force's most important task would be to construct trenches, bunkers and obstacles around strategically important areas and position themselves on systematically formed defensive lines. Mobilization capacity is around 140,000 troops and is reasonably large.

The TDF reservist is comparably poorly equipped for modern warfare. It is rumored that Georgia possess thousands of firearms of all types and infantry personal protection equipment inherited from the Soviet Union which could be used by reservists. Georgia also possess few dozen T-55 tanks that are in storage that could be used by the reservist forces.

International cooperation
The Georgian Defence Forces frequently have large scale military drills involving heavy armor and parachute units with their NATO counterparts on Georgian soil to increase interoperability.

Peacekeeping missions
About 200 Georgian troops were deployed in the Kosovo (KFOR) in 1999–2008, 70 were deployed in Iraq (OIF) in 2003 and 50 in Afghanistan in 2004 (ISAF). From 2004 in Iraq were 300 Georgian troops. From 2005 approximately 850 troops were serving under Coalition Command (OIF and UNAMI). In July 2007 Georgia sent an extra 1,400 troops to Iraq; that brought the total number of troops in Iraq to 2,000. About 300 of these troops were assigned to Taskforce Petro and stationed at COP Cleary outside the town of Wahida near Salman Pak, Iraq. On 8 August 2008 Georgia announced it will withdraw 1,000 troops from Iraq due to rising hostilities with Russia. Their preparedness and training skills are evaluated on highest level by international experts. The entire Iraq contingent has been airlifted back to Georgia.

Hence, owing to participation in international peacekeeping missions the military members are able to obtain practical experience and to show readiness to cooperate with NATO and with other partner countries' forces.

Currently there are more than 1,570 Georgian combat troops deployed in Helmand, Afghanistan where Georgia has thus far suffered 22 deaths and over a hundred injuries. In September 2012, Georgia stated that it would continue its contributions in Afghanistan following the 2014 NATO withdrawal.

In November 2012, Georgia had doubled the number of troops deployed to fight with Nato-led forces in Afghanistan to over 1,500. Georgia has 1,570 troops serving there, making the small Caucasus country of 4.5 million people the largest non-Nato contributor to the Afghanistan mission.

Since 2014 Georgia has contributed 140 troops to the EUFOR RCA peacekeeping mission in the Central African Republic, Georgia also contributes its military units to Resolute Support Mission in Afghanistan.

Commanders
The Chief of General Staff is the highest-ranking officer in the military, heading the General Staff and being the ex officio Deputy Chief of the Defence Forces, who is the commander of the Defence Forces, being appointed by the Minister of Defence. The senior enlisted advisor of the Georigan military is the Sergeant Major of the Georgian Defence Forces (საქართველოს შეიარაღებული ძალების სერჟანტი მაიორი), currently Sergeant Major Koba Tsirekidze (appointed on 11 April 2016).

Military industry
Georgia has a long history of weapon production tracing back to ancient times. The modern arms industry began during the Soviet era. In 1941 Georgia became one of the most important Soviet weapon manufacturing states during the Second World War. It was responsible for providing the Soviet Army with all types of aircraft and ammunition. Tbilisi Aircraft Manufacturing's role didn't change after the war. Up until 1990 Georgia was producing various types of fighter aircraft, most notably the Su-25 since it was produced almost exclusively in Georgia, unmanned areal vehicles, missiles, satellite components and orbital satellites. The company lost most of its functionality and production capability when the Soviet Union dissolved, yet was not abandoned. In the late 1990s Georgia's JSC RMP and later the newly established Ministry of Defence section "Delta" started to work on the development of ballistic equipment using their own ingredients. The advanced research unit had successfully developed a variety of personal protection gear, such as bomb disposal suits and level I-IV body armour using classified mixtures of domestic resource. These projects never went beyond some prototypes, mainly due to poor attention and financing from the government.

With foreign support primarily from the United States since 2005, Georgia became able to start building a solid industrial base for the military. From 2001 to 2007, Delta experimented with unmanned aerial vehicles and modified parts for helicopters and Su-25 aircraft until it got involved in the modification of Georgia's T-72 tank fleet. In 2009–10, with enough experience and expertise and the assistance of designer Zviad Tsikolia, Delta created its first prototype of an armored personnel carrier, the Didgori. Early tests were highly successful so that its first production line started already in 2011. Two versions would initially serve in the armed forces in 2012, followed by different modifications from 2013 on. The Lazika is Delta's attempt to manufacture a suitable modular infantry fighting vehicle created for multiple tasks. Delta considers the Lazika as one of the best vehicles of its class bearing armour technology similar to that of Israel. The remotely operated systems are locally produced as well. Due to "misdirected financing" and heavy interfering of former government officials, project Lazika was temporarily cancelled in late 2012, also due to "sabotage" and shortcomings in its armour research, but then later continued in early 2013 when a newly elected government took charge.

As of 2007 Georgia has been domestically producing uniforms for its military personnel. Other main production lines include various types of artillery systems such as MLRS, mortars and corresponding ammunition, anti-tank weapons and devices, full uniform sets for ceremonies and for all service branches, including boots, hats, assault vests, pouches, and backpacks. New kind of ballistic vests and helmets have been developed and produced for military service since 2013. The Georgian production uses techniques based on know-how from aerospace research whose methods differ slightly yet significantly from foreign ones. In 2018 plans were announced for decisive expansions in manufacturing capabilities. With assistance from the United States and Israel, a weapon manufacturing plant was established for the development and production of AR-15 based firearms.

title: Defence Forces of Georgia


text:
Foreign relations of Georgia

Georgia's location, nestled between the Black Sea, Russia, and Turkey, renders it strategically important. It is developing as the gateway from the Black Sea to the Caucasus and the larger Caspian region, but also serves as a buffer between Russia and Turkey. Georgia has a long and tumultuous relationship with Russia, but it is reaching out to its other neighbours and looking to the West in search of alternatives and opportunities. It signed a partnership and cooperation agreement with the European Union, participates in the Partnership for Peace, and encourages foreign investment. France, Germany, South Korea, the United Kingdom, and the United States all have embassies in Tbilisi. Georgia in 2004-2008 sought to become a member of NATO, but did not succeed in the face of strong Russian opposition.

Georgia is a member of the United Nations, the Council of Europe, and the OSCE. Because of its strategic location, Georgia is in both the Russian and American spheres of influence, however Georgia's relationship with Russia is at its lowest point since 1921 due to controversies regarding espionage and the Russo-Georgian War. As a result, Georgia broke off diplomatic relations with Russia and has left the Commonwealth of Independent States.

Diplomatic relations
List of countries which Georgia maintains diplomatic relations with:

Overview
Georgia has established relations with 185 countries and the Order of Malta. Georgia has terminated its diplomatic relations with Russia, Nicaragua  and Syria.

Georgia has not yet established diplomatic relations with:
 * Venezuela, Nauru
 * Bhutan, Cook Islands, Niue
 * Sahrawi Arab Democratic Republic and the rest of states with limited recognition.

title: Foreign relations of Georgia