GeorgiaRegion: Europe & Central Asia
Population: 4,474,404
GNI per capita (US$): 1,350.0
Population growth rate: -0.329% (2007 est)
Religions: Orthodox Christian 83.9%, Muslim 9.9%, Armenian-Gregorian 3.9%, Catholic 0.8%, other 0.8%, none 0.7% (2002 census)
Languages: Georgian 71% (official), Russian 9%, Armenian 7%, Azeri 6%, other 7%
Literacy: 100%
GDP(Parity): $17.88 billion
GDP Growth Rate: 8%
GDP(Per pop.): $3,800
Unemployment: 12%
Current account balance: -$735 million
Current account balance: -$735 million
Debt - external: $2.04 billion
Imports: $3.32 billion (fuels, machinery and parts, transport equipment, grain and other foods, pharmaceuticals)
Exports: $1.761 billion (scrap metal, machinery, chemicals; fuel reexports; citrus fruits, tea, wine)
Exports - partners: Russia 18.1%, Turkey 14.3%, Azerbaijan 9.8%, Turkmenistan 8.9%, Bulgaria 5%, Armenia 4.7%, Ukraine 4.4%, Canada 4.2% (2005)
Exchange rates: lari per US dollar - 1.78 (2006), 1.8127 (2005), 1.9167 (2004), 2.1457 (2003), 2.1957 (2002)
Military expenditures(percent of GDP): 0.59% (2005 est.)
Background: The region of present-day Georgia contained the ancient kingdoms of Colchis and Kartli-Iberia. The area came under Roman influence in the first centuries A.D. and Christianity became the state religion in the 330s. Domination by Persians, Arabs, and Turks was followed by a Georgian golden age (11th-13th centuries) that was cut short by the Mongol invasion of 1236. Subsequently, the Ottoman and Persian empires competed for influence in the region. Georgia was absorbed into the Russian Empire in the 19th century. Independent for three years (1918-1921) following the Russian revolution, it was forcibly incorporated into the USSR until the Soviet Union dissolved in 1991. An attempt by the incumbent Georgian government to manipulate national legislative elections in November 2003 touched off widespread protests that led to the resignation of Eduard SHEVARDNADZE, president since 1995. New elections in early 2004 swept Mikheil SAAKASHVILI into power along with his National Movement party. Progress on market reforms and democratization has been made in the years since independence, but this progress has been complicated by two civil conflicts in the breakaway regions of Abkhazia and South Ossetia. These two territories remain outside the control of the central government and are ruled by de facto, unrecognized governments, supported by Russia. Russian-led peacekeeping operations continue in both regions. The Georgian Government put forward a new peace initiative for the peaceful resolution of the status of South Ossetia in 2005
Climate: Warm and pleasant; Mediterranean-like on Black Sea coast
Terrain: Largely mountainous with Great Caucasus Mountains in the north and Lesser Caucasus Mountains in the south; Kolkhet'is Dablobi (Kolkhida Lowland) opens to the Black Sea in the west; Mtkvari River Basin in the east; good soils in river valley flood plains, foothills of Kolkhida Lowland
Elevation extremes: Lowest point: Black Sea 0 m highest point: Mt'a Shkhara 5,201 m
Economic Overview: Georgia's main economic activities include the cultivation of agricultural products such as grapes, citrus fruits, and hazelnuts; mining of manganese and copper; and output of a small industrial sector producing alcoholic and nonalcoholic beverages, metals, machinery, and chemicals. The country imports the bulk of its energy needs, including natural gas and oil products. It has sizeable but underdeveloped hydropower capacity. Despite the severe damage the economy has suffered due to civil strife, Georgia, with the help of the IMF and World Bank, has made substantial economic gains since 2000, achieving positive GDP growth and curtailing inflation. Georgia had suffered from a chronic failure to collect tax revenues; however, the new government is making progress and has reformed the tax code, improved tax administration, increased tax enforcement, and cracked down on corruption. Due to concerted reform efforts, collection rates have improved considerably to roughly 60%, both in T'bilisi and throughout the regions. In addition, the reinvigorated privatization process has met with success, supplementing government expenditures on infrastructure, defense, and poverty reduction. Despite customs and financial (tax) enforcement improvements, smuggling remains a drain on the economy. Georgia also suffers from energy shortages due to aging and badly maintained infrastructure, as well as poor management. Continued reform in the management of state-owned power entities is essential to successful privatization and onward sustainability in this sector. The country is pinning its hopes for long-term growth on its role as a transit state for pipelines and trade. The construction on the Baku-T'bilisi-Ceyhan oil pipeline and the Baku-T'bilisi-Erzerum gas pipeline have brought much-needed investment and job opportunities. Nevertheless, high energy prices have compounded the pressure on the country's inefficient energy sector. Restructuring the sector and finding energy supply alternatives to Russia remain major challenges.
Georgian Wine
It has been documented that the roots of its viticulture are between 7000 and 5000 BC, when peoples of South Caucasus discovered that wild grape juice turned into wine when it was left buried through the winter in a shallow pit. This knowledge was nourished by experience, and from 4000 BC Georgians were cultivating grapes and burying clay vessels, kvevri, in which to store their wine ready for serving at perfect ground temperature. When filled with the fermented juice of the harvest, the kvevris are topped with a wooden lid and then covered and sealed with earth. Some may remain entombed for up to 50 years.
This love affair with the grape was given further encouragement by the arrival of Saint Nino in the 4th century. Fleeing Roman persecution in Cappadocia, in what is now central Turkey, and bearing a cross made from vine wood and bound with her own hair. Saint Nino was swept up in the warm embrace of the Georgians, who became early converts to Christianity. Thus the cross and the vine became inextricably linked in the Georgian psyche, and the advent of the new faith served to sanction these ancient vinous practices. For centuries, Georgians drank, and in some areas still drink, their delicious wine from horns and skins specially treated for this purpose. These drinking implements came from their herd animals, as no part of the valued and respected beasts went to waste. The horns were cleaned, boiled and polished, creating a unique, durable and quite stylish drinking vessel. These horns were prized by the merchants and warriors that travelled the fertile valleys of the Caucasus. Today they are still a prized symbol of the historic eras.
Wine vessels of every shape, size and design account for the bulk of earthenware artifacts unearthed by Georgian archaeologists. The Georgian craft of pottery is millennia old. Ancient artifacts attest to the high skill of Georgian craftsmen in whose hands water, clay and fire turned into an object of an exceptional beauty much admired by people. The most impressive of all archaeological finds are kvevri, giant clay vessels in which wine was fermented and stored up. The old ones used to dig them into soil, just as we are doing now. Georgian museums have on display numerous clay vessels of all designations. Some were used to ferment grape juice and to store up wine, such as kvevri, chapi and satskhao, and others were used for drinking, such as khelada, doki, sura, chinchila, deda-khelada, dzhami and marani. For ages, artisans polished their skills to improve these vessels. The secrets of trade passed on from fathers to sons. Modern potters carefully study the ancient craft and decorative patterns and create their own pottery making extensive use of ancient national traditions and using the latest scientific and technological achievements to enrich ancient traditions.
Many of the unearthed silver, gold and bronze artifacts of the 3rd and 2nd millennia BC bare chased imprints of the vine, grape clusters and leaves. On the basis of this evidence it is safe to say that viticulture has a long record in Georgian history. The State Museum of Georgia has on display a cup of high-carat gold set with gems, an ornamented silver pitcher and some other artifacts dated the 2nd millennium BC The museum of history has a cameo depicting Bacchus. Numerous sarcophagi with wine pitchers and ornamented wine cups, found in ancient tombs, are a proof that wine was nothing unusual for Georgians at all times.
Viticulture in Georgia today
Georgia ranks 4th in grape production in the former Soviet Union behind Russia, Ukraine, and Moldova, though Georgian wines have always been the most highly prized. Recently Georgian wines have begun to be widely imitated and counterfeited. Reportedly, as much as 90% of Georgian wines sold in Russia now are bogus. There is virtually no protection of Georgian wine names. Moscow markets have Georgian wines with names like Kindzmarauli produced in cities throughout Russia. In the EU, the USA and Canada, one may be assured that the Georgian wines being sold are indeed from the Republic of Georgia and have been certified as being the genuine & authentic product.
Growing conditions
When it comes to wine-making, Georgia is blessed. Extremes of weather are unusual: summers tend to be short-sleeve sunny, and winters mild and frost-free. Natural springs abound, and the Caucasian Mountain streams drain mineral-rich water into the valleys. Georgia's moderate climate and moist air, influenced by the Black Sea, provide the best conditions for vine cultivating.
This love affair with the grape was given further encouragement by the arrival of Saint Nino in the 4th century. Fleeing Roman persecution in Cappadocia, in what is now central Turkey, and bearing a cross made from vine wood and bound with her own hair. Saint Nino was swept up in the warm embrace of the Georgians, who became early converts to Christianity. Thus the cross and the vine became inextricably linked in the Georgian psyche, and the advent of the new faith served to sanction these ancient vinous practices. For centuries, Georgians drank, and in some areas still drink, their delicious wine from horns and skins specially treated for this purpose. These drinking implements came from their herd animals, as no part of the valued and respected beasts went to waste. The horns were cleaned, boiled and polished, creating a unique, durable and quite stylish drinking vessel. These horns were prized by the merchants and warriors that travelled the fertile valleys of the Caucasus. Today they are still a prized symbol of the historic eras.
Wine vessels of every shape, size and design account for the bulk of earthenware artifacts unearthed by Georgian archaeologists. The Georgian craft of pottery is millennia old. Ancient artifacts attest to the high skill of Georgian craftsmen in whose hands water, clay and fire turned into an object of an exceptional beauty much admired by people. The most impressive of all archaeological finds are kvevri, giant clay vessels in which wine was fermented and stored up. The old ones used to dig them into soil, just as we are doing now. Georgian museums have on display numerous clay vessels of all designations. Some were used to ferment grape juice and to store up wine, such as kvevri, chapi and satskhao, and others were used for drinking, such as khelada, doki, sura, chinchila, deda-khelada, dzhami and marani. For ages, artisans polished their skills to improve these vessels. The secrets of trade passed on from fathers to sons. Modern potters carefully study the ancient craft and decorative patterns and create their own pottery making extensive use of ancient national traditions and using the latest scientific and technological achievements to enrich ancient traditions.
Many of the unearthed silver, gold and bronze artifacts of the 3rd and 2nd millennia BC bare chased imprints of the vine, grape clusters and leaves. On the basis of this evidence it is safe to say that viticulture has a long record in Georgian history. The State Museum of Georgia has on display a cup of high-carat gold set with gems, an ornamented silver pitcher and some other artifacts dated the 2nd millennium BC The museum of history has a cameo depicting Bacchus. Numerous sarcophagi with wine pitchers and ornamented wine cups, found in ancient tombs, are a proof that wine was nothing unusual for Georgians at all times.
Viticulture in Georgia today
Georgia ranks 4th in grape production in the former Soviet Union behind Russia, Ukraine, and Moldova, though Georgian wines have always been the most highly prized. Recently Georgian wines have begun to be widely imitated and counterfeited. Reportedly, as much as 90% of Georgian wines sold in Russia now are bogus. There is virtually no protection of Georgian wine names. Moscow markets have Georgian wines with names like Kindzmarauli produced in cities throughout Russia. In the EU, the USA and Canada, one may be assured that the Georgian wines being sold are indeed from the Republic of Georgia and have been certified as being the genuine & authentic product.
Growing conditions
When it comes to wine-making, Georgia is blessed. Extremes of weather are unusual: summers tend to be short-sleeve sunny, and winters mild and frost-free. Natural springs abound, and the Caucasian Mountain streams drain mineral-rich water into the valleys. Georgia's moderate climate and moist air, influenced by the Black Sea, provide the best conditions for vine cultivating.
The Russian wine embargo
The 2006 Russian import ban of Moldovan and Georgian wines began in late-March 2006 and created a diplomatic conflict between the Republic of Moldova and Georgia on the one hand and Russia on the other. Most wines consumed in Russia come from either Moldova or Georgia and wine trade with Russia is responsible for 80-90% of the total wine exports in both countries.[1]
The Chief sanitary inspector of Russia Gennadiy Onishchenko claimed that heavy metals and pesticides had been found in Georgian and Moldovan wines and that they were "falsified alcoholic products" labeled as wines. The Russian Consumer Agency claimed that it had examined 21 sorts of Georgian wine sold in Moscow and concluded that 85.7% did not comply with established requirements. Pesticides were supposedly discovered in 60% samples of Moldovan and 44% samples of Georgian wine.[2] However, the Moldovan side claimed that no proof was ever provided by the Russian side and that dozens of countries across the world imported Moldovan wines and none reported any problems. Moldova argued that the ban amounted to economic blackmail.[3].
Nevertheless in May 2005, Georgian Defense Minister Irakli Okruashvili admitted that "many wine producers exported falsified wine to Russia".[1] He later explained his position by declaring that those wine producers "were able to export wine there which would never be sold, for example, in Europe because even if you export – excuse me for this expression – feces to Russia it can be sold there".[2] In the aftermath of this statement, no less than seven Georgian wineries were closed down after the government revision revealed that they had produced falsified wine for Russian exports.[3], [4].
The ban on wine imports came at a time when Russian amongst worsening relations between the countries. The differences involved the Rose Revolution and pro-NATO/pro-EU moves in Georgia and a divergence of the Russian and Moldovan positions regarding the future of Transnistria. A year earlier, the Russian Duma had demanded a ban on Moldovan wine imports, because Moldova was considered an "enemy" of Russia and pursued "anti-Russian policies".[4]
EU's external relations commissioner, Benita Ferrero-Waldner stated that the EU was worried about what she called an "embargo" against Moldova, but the EU couldn't take any measures since Russia was not a member of the World Trade Organization.[5] The president of NATO Parliamentary Assembly Pierre Lellouche also said, on May 5, he was deeply concerned about the Russian ban on Georgian products. [6]
From 5 May to May 6, 2006, the Russian government also banned the import of Borjomi (ru:Боржоми, ge:ბორჯომი) and Nabeglavi (ru:Набеглави, ge:ნაბეღლავი,) two popular brands of Georgian mineral water.[7]. The government claimed that it was a health hazard since it failed to meet water purity standards. The Georgian government responded by stating that the action was an expansion of the wine embargo [8] and a part of a political campaign to punish the country for pro-Western policies, a claim President Mikheil Saakashvili of Georgia reiterated at the Conference on Common Vision for Common Neighborhood held in Vilnius, Lithuania, from May 1 to 4, and attended also by the presidents of the three Baltic states, Poland, Ukraine, Moldova, Romania, Bulgaria and the United States Vice-President Richard Cheney [9].
As tensions heighten with Russia, the Government of Georgia is considering withdrawing from the Commonwealth of Independent States (CIS), a bloc of several post-Soviet countries, a membership of which is largely unpopular within Georgia. Saakashvili said on May 2 that the government would review whether the country was benefiting from being a CIS member[10]
Neither the Georgian or Moldovan wines, nor the Borjomi or Nabeglavi mineral waters have been banned nor restricted in any other country besides Russia [11]. Some Russian experts have also criticized the Russian ban on "Borjomi". [12]
The Chief sanitary inspector of Russia Gennadiy Onishchenko claimed that heavy metals and pesticides had been found in Georgian and Moldovan wines and that they were "falsified alcoholic products" labeled as wines. The Russian Consumer Agency claimed that it had examined 21 sorts of Georgian wine sold in Moscow and concluded that 85.7% did not comply with established requirements. Pesticides were supposedly discovered in 60% samples of Moldovan and 44% samples of Georgian wine.[2] However, the Moldovan side claimed that no proof was ever provided by the Russian side and that dozens of countries across the world imported Moldovan wines and none reported any problems. Moldova argued that the ban amounted to economic blackmail.[3].
Nevertheless in May 2005, Georgian Defense Minister Irakli Okruashvili admitted that "many wine producers exported falsified wine to Russia".[1] He later explained his position by declaring that those wine producers "were able to export wine there which would never be sold, for example, in Europe because even if you export – excuse me for this expression – feces to Russia it can be sold there".[2] In the aftermath of this statement, no less than seven Georgian wineries were closed down after the government revision revealed that they had produced falsified wine for Russian exports.[3], [4].
The ban on wine imports came at a time when Russian amongst worsening relations between the countries. The differences involved the Rose Revolution and pro-NATO/pro-EU moves in Georgia and a divergence of the Russian and Moldovan positions regarding the future of Transnistria. A year earlier, the Russian Duma had demanded a ban on Moldovan wine imports, because Moldova was considered an "enemy" of Russia and pursued "anti-Russian policies".[4]
EU's external relations commissioner, Benita Ferrero-Waldner stated that the EU was worried about what she called an "embargo" against Moldova, but the EU couldn't take any measures since Russia was not a member of the World Trade Organization.[5] The president of NATO Parliamentary Assembly Pierre Lellouche also said, on May 5, he was deeply concerned about the Russian ban on Georgian products. [6]
From 5 May to May 6, 2006, the Russian government also banned the import of Borjomi (ru:Боржоми, ge:ბორჯომი) and Nabeglavi (ru:Набеглави, ge:ნაბეღლავი,) two popular brands of Georgian mineral water.[7]. The government claimed that it was a health hazard since it failed to meet water purity standards. The Georgian government responded by stating that the action was an expansion of the wine embargo [8] and a part of a political campaign to punish the country for pro-Western policies, a claim President Mikheil Saakashvili of Georgia reiterated at the Conference on Common Vision for Common Neighborhood held in Vilnius, Lithuania, from May 1 to 4, and attended also by the presidents of the three Baltic states, Poland, Ukraine, Moldova, Romania, Bulgaria and the United States Vice-President Richard Cheney [9].
As tensions heighten with Russia, the Government of Georgia is considering withdrawing from the Commonwealth of Independent States (CIS), a bloc of several post-Soviet countries, a membership of which is largely unpopular within Georgia. Saakashvili said on May 2 that the government would review whether the country was benefiting from being a CIS member[10]
Neither the Georgian or Moldovan wines, nor the Borjomi or Nabeglavi mineral waters have been banned nor restricted in any other country besides Russia [11]. Some Russian experts have also criticized the Russian ban on "Borjomi". [12]
SOURCES
Georgia in Wiki
http://en.wikipedia.org/wiki/Georgia_(country)
CIA factbook on Georgia
https://www.cia.gov/cia/publications/factbook/geos/gg.html
Georgian wine on Wiki
http://en.wikipedia.org/wiki/Georgian_wine
An extensive overview of Georgia's wine-making history & it's desire to export large quantities of it's best wines overseas
http://wine-pages.com/features/georgia.htm
In-depth consideration of the 2006 Russian ban and implications for the Georgian economy
http://en.wikipedia.org/wiki/2006_Russian_ban_of_Moldovan_and_Georgian_wines
Doing business in Georgia
http://www.doingbusiness.org/ExploreEconomies/?economyid=74
