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Georgia

Beyond oil score(out of 100 points) 40.0
Index ranking(out of 26 countries ranked) 16
Overall status*  
General Economic Framework  
Political Framework  
Society and Future Skills  
(Beyond) oil related factors  


Georgia is an alien in the beyond oil ranking – the country covers a mere 15% of its oil consumption from domestic resources. However, we have included Georgia because of its interesting geostrategic location in the Caucasus. This gives the country a high potential for being a transit country for future oil pipelines leading westward from the oil fields around Azerbaijani capital Baku.

Positive Signs but geographic uncertainties

Georgia is suffering from similar problems as most former republics of the Soviet Union: lack of investments, corruption, declining standards in health and education. In addition, the Georgian government under president Saakashvili is facing the emblematic problems of the Caucasian region: only some 80% of Georgia’s borderline with Russia have been finally fixed, leaving out some strategically important segments. Moreover, the boundary with Armenia remains undemarkated. Regions like Abkhazia or the border section with Azerbaijan remain volatile.
On the other hand, the general economic outlook for Georgia appears to be rather positive. The Baku-T'bilisi-Ceyhan oil pipeline and the Baku-T'bilisi-Erzerum gas pipeline might be a starting point for the long-needed foreign investment in the country.

Beyond Oil Summary

Recent infrastructure projects like the construction of the country’s first high speed trunk road strating in Tiblisi or the recent agreement with Turkey to share Georgia’s Batumi airport in Georgia’s Black sea coast do make us fairly optimistic for the country’s long-term future.

  Indicates high preparedness   Indicates deficits but potential for development   Indicates unfavourable preconditions.
 
     
   
 
 
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