Georgia. A Brief Survey of Macroeconomic Problems and Policies

Introduction

Despite the remarkable progress Georgia continues to face serious economic difficulties. As part of the Soviet Union the country benefited from artificially low fuel import prices and from artificially high prices of many of the products exported to the other Republics. The withdrawal of these benefits rendered useless much of the Georgia's industrial capacity. New investment is needed to recover the lost ground and to grow. But the favorable institutional setting notwithstanding, there are severe barriers to private economic activity.