Industry of Georgia

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Also known as: Sakartvelo, Sakartvelos Respublika

The fuel and power foundation developed in Georgia has served as the base for industrialization. Dozens of hydroelectric stations, including the Rioni and Sokhumi plants, as well as many stations powered by coal and natural gas, have been constructed. All are now combined into a single power system, an organic part of the Transcaucasian system.

The coal industry is one of the oldest mineral extraction industries, centered on the restructured Tqibuli mines. Deposits found in Tqvarchʿeli and Akhaltsʿikhe have increased production.

Manganese and nonmetallic minerals ranging from talc to marble supply various industries throughout the countries of the former Soviet Union. The Rustʿavi metallurgical plant, located near the capital, produced its first steel in 1956. There are markets for its laminated sheet iron and seamless pipe products in Russia, Ukraine, and elsewhere. Zestapʿoni is the second major metallurgical center.

The machine-building industry produces a diverse range of products, from electric railway locomotives, heavy vehicles, and earth-moving equipment to lathes and precision instruments. Specialized products include tea-gathering machines and antihail devices for the country’s plantations. Production is centered in the major cities.

The chemical industry of Georgia produces mineral fertilizers, synthetic materials and fibres, and pharmaceutical products. The building industry, using local raw materials, supplies the country with cement, slate, and many prefabricated reinforced-concrete structures and parts.

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Commonly used manufactured goods were previously imported in large part from the republics of the former Soviet Union, but a ramified system of light industries set up in major consumption areas in Georgia now produces cotton, wool, and silk fabrics, as well as items of clothing.

Products of the food industry include tea and table and dessert wines. Brandy and champagne production is also well developed. Other food-industry activities include dairying and canning.

Trade

Georgia’s chief exports include metals, fertilizers, and nuts. Fuels, machinery, foodstuffs, and pharmaceuticals are among the chief imports. Georgia’s trade relations involve both the import and export of vehicles as well. Its biggest trading partners include Turkey, Russia, and China, but Georgia also conducts significant trade with its neighbors in the Caucasus region as well as with eastern Europe.

Transportation

Georgia has a dense transportation system. Most freight is carried by truck, but railways are important. Tbilisi is connected by rail with both Sokhumi and Batʿumi on the Black Sea and Baku on the Caspian.

An oil pipeline connects Batʿumi with Baku, Azerbaijan; two natural gas pipelines run from Baku to Tbilisi and then turn north to Russia. The seaports of Batʿumi, Potʿi, and Sokhumi are of major economic importance for the whole of Transcaucasia. The country’s international airport is at Tbilisi.

Government and society

Constitutional framework

In 1992 Georgia—which had been operating under a Soviet-era constitution from 1978—reinstated its 1921 pre-Soviet constitution. A constitutional commission was formed in 1992 to draft a new constitution, and, after a protracted dispute over the extent of the authority to be accorded the executive, a new document was adopted in 1995.

Georgia is a unitary multiparty republic. Under the 1995 constitution the president was given extensive powers, but those were significantly reduced by constitutional amendments enacted in 2013 that expanded the role of the prime minister and the cabinet. Up through the presidential election of 2018, the president was elected to a maximum of two five-year terms by direct universal suffrage. Beginning in December 2024, the president will be elected by an electoral college of 300 lawmakers and representatives. The legislature is an elected parliament whose members serve four-year terms. The judicial system includes district and city courts and a Supreme Court.

Political process

The Communist Party of Georgia, controlled by the Communist Party of the Soviet Union, was until the 1980s the only political party. With the increase in nationalist sentiment and the reforms of the Soviet leader Mikhail Gorbachev, many diverse political groups emerged. In the years after independence, major political organizations included the Citizens’ Union of Georgia (CUG), an alliance formed by the Georgian president Eduard Shevardnadze, and the reformist National Democratic Party. The United National Movement (UNM), formed in 2001 by the populist former minister Mikheil Saakashvili, rose to prominence after the Rose Revolution in 2003. It was opposed in 2012 by the Georgian Dream (GD) coalition formed by the billionaire businessman Bidzina Ivanishvili.

Security

In the early years of independence, Georgia’s armed forces were divided, but they were gradually becoming unified by the mid-1990s. The primary state military organization is the National Guard; paramilitary groups also are present. A two-year period of military service is compulsory for adult men, though draft evasion is widespread. Substantial numbers of Russian troops remain on Georgian territory.

The Ministry of Internal Affairs oversees the regular police force. Crime rates in Georgia increased after independence because of the social dislocations resulting from the conflicts in Abkhazia and South Ossetia, a lack of civil authority in parts of the country, and regional instability caused by the war in Nagorno-Karabakh.

Georgia became a member of the United Nations in 1992 and joined the Commonwealth of Independent States (CIS) in 1993; following hostilities with Russia in August 2008, Georgia withdrew from the CIS a year later. The country has enjoyed a close relationship with the North Atlantic Treaty Organization (NATO), especially after 2008, but it has not been offered membership.

Education

The level of education is relatively high. Tbilisi University was founded in 1918; the Academy of Sciences (founded 1941) is made up of several scientific institutions, which conduct research throughout the republic. Georgia has an extensive library system.

Health and welfare

Payments from public funds provide free education, medical services, pension grants, and stipend payments and free or reduced-cost accommodation in rest homes and sanatoriums, as well as holiday pay and the maintenance of kindergartens and day nurseries. Georgia ranks high in the level of medical services, and relative to other former Soviet republics its population has low incidences of tuberculosis and cancer. The republic is famed as a health center, a reputation stemming from the numerous therapeutic mineral springs, the sunny climate of the Black Sea coast, the pure air of the mountain regions, and a wide range of resorts. The Tsqaltubo baths, with warm radon water treatment for arthritis sufferers, are especially noted.