Over centuries, Georgia, as a geopolitical interest for Russia, has been going through the conflicts, wars, and embargos, which have had a huge effect and impact on economic developments of the country. The purpose of this seminar paper is to present and analyse reliable sources and data, which clearly support and as well challenge the argument stated and think about solutions for the international economic relations between two countries.
I consider as well very crucial, to see it from different perspectives, to critically identify and measure the facts and the rules which were disobeyed, free trade which has been “governed” by state governments and violated – forgetting the wills and about the well-being of the inhabitants, therefore acting against the initial role of state government, forgetting the responsibilities towards the people living there.
Main purpose of this topic is to deeply understand economic difficulties Georgia has been coming across for a long period of time, and what a big role Russia has played in it. I will be discussing and showing the arguments how much the “21st century’s economic relations rules” are disobeyed and disrespected.
I will be talking about International Rankings of Georgia, how much the country has advanced since years, showing it in comparison with Russia and other European countries.
Wine plays one of the most important roles in the economy of Georgia in case of exports and trading, by banning Georgian wine in Russia, Georgian economy faced a lot of difficulties. Even though, Russia was the number one in exporting Georgian Wine, and Georgia was importing a lot of products from Russia, businesses resumed several times, completely against the free trade and purely for political reasons. Why does it happen so? What is the idea behind it? The most important issues will be briefly but thoroughly discussed in my seminar paper, assuming the reasons and solutions.
The topic of corruption in Georgia and Russia, comparing the two and how much Georgia achieved even considering the obstacles it has been facing.
Russia forcing Georgia to join Eurasian Union – possible threats, how much illogical it is for Georgia to join, and what kind of development it can have in case of becoming a member of European Union in comparison with Eurasian Union.
One of the most obvious facts will be discussed how much Russia has changed Georgian economic development and possible future threats Georgia is already facing.
Table of Contents
1. Introduction
2. Russo-Georgian War 7th August 2008
3. A trade war against Georgia?!
3.1. Imports and exports between Russia and Georgia and the big economic dependency of Georgia on Russia
4. International Rankings of Georgia
5. The State … The Market
6. Eurasian Union
7. Conclusion
8. Bibliography
Objectives & Core Topics
This paper examines the complex economic relationship between Georgia and Russia, specifically focusing on how geopolitical tensions and conflicts have hindered Georgia's economic development. The central research aim is to analyze the impact of trade embargos, the war in 2008, and the ongoing political pressure from Russia on Georgia's quest for economic independence and integration with European markets.
- Historical and contemporary economic dependency of Georgia on Russia
- The impact of the 2008 Russo-Georgian War on national GDP and unemployment
- Analysis of trade barriers, specifically the embargo on wine and mineral water
- Georgia's progress in international rankings regarding corruption and governance
- Comparative analysis: European Union vs. Eurasian Union
Excerpt from the book
3. A trade war against Georgia?!
Georgian and Russian experts discussed the issue of a trade war in Geneva. Since Georgia started having good trading relations with EU, Russia decided to start a trade war against the free trade, exclaiming “cheap products from EU” would infiltrate the Russian market (since Georgia has signed the ratification agreement with European Union) and that therefore they would need to “take defensive steps”.
Back in 2006 Russia had banned the Georgian imports, right after Georgia’s security services arrested four Russian spies and publicly released video recordings of their conversations with other agents about the locations and movements of Georgian military units.
That time, president of Russia Vladimir Putin decided to take revenge and imposed a complete embargo on Georgian exports- wine and mineral water and other fruits and vegetables (all the data stated can be found under “Global Research and Analysis”, for details please see referenced number 11). The reason why it was so tragic for Georgia, was because Russia was number one exporter of our local products. Wine and mineral water Borjomi are well-known internationally and are the main products out of what Georgian economy is built on.
Chapter Summary
1. Introduction: Outlines the geopolitical tension between Russia and Georgia and the research objective to analyze the economic impact of these strained relations.
2. Russo-Georgian War 7th August 2008: Investigates the devastating impact of the 2008 war on Georgia’s economy, illustrated by sharp declines in GDP and rising unemployment.
3. A trade war against Georgia?!: Examines how political disputes have been translated into economic weaponization, specifically through trade embargoes on key goods.
3.1. Imports and exports between Russia and Georgia and the big economic dependency of Georgia on Russia: Provides statistical analysis of trade volumes and the vulnerability caused by Georgia's reliance on the Russian market.
4. International Rankings of Georgia: Highlights Georgia's significant improvements in governance, transparency, and corruption control compared to previous years.
5. The State … The Market: Discusses the differing economic philosophies, contrasting Russian mercantilist approaches with the necessity for free market principles.
6. Eurasian Union: Critically evaluates the potential consequences of Georgia joining the Eurasian Union versus the benefits of aligning with the European Union.
7. Conclusion: Summarizes the need for a stable, independent path for Georgia and emphasizes the importance of political consensus and reform.
8. Bibliography: Lists the academic sources, reports, and data sets utilized for the analysis.
Keywords
Georgia, Russia, Russo-Georgian War, Trade War, Economic Dependency, GDP Growth, Embargo, Corruption, European Union, Eurasian Union, International Rankings, Political Pressure, Free Trade, Reform, Geopolitics.
Frequently Asked Questions
What is the primary focus of this research paper?
The paper focuses on the economic relationship between Georgia and Russia, analyzing how historical conflicts and geopolitical interests have shaped Georgia's economic development and trade policies.
What are the central themes discussed in the work?
Key themes include the impact of the 2008 war, the weaponization of trade through embargoes, the role of corruption, and the strategic choice between European integration and the Eurasian Union.
What is the core research objective?
The aim is to identify the economic difficulties Georgia has faced due to Russian influence and to assess how "21st-century economic rules" are disregarded in these bilateral relations.
Which methodology is employed in this study?
The paper relies on a qualitative and quantitative analysis of reliable sources, including international economic data, GDP trends, and index rankings to support its arguments.
What topics are covered in the main body of the text?
The main body covers the 2008 war, trade barriers, dependency statistics, international rankings, the role of the state in the market, and the comparison between the EU and the Eurasian Union.
Which keywords best characterize this work?
The work is characterized by terms such as geopolitics, economic dependency, trade embargo, corruption, European integration, and national reform.
How did the 2008 war specifically affect Georgia's GDP?
The paper illustrates that the war caused a dramatic decrease in real GDP growth, leading to negative percentages and a significant spike in unemployment rates in the following period.
Why does the author consider the trade embargo on wine and mineral water significant?
The embargo is viewed as a political tool that targeted key sectors of the Georgian economy where the country held a comparative advantage, thereby causing disproportionate harm to the nation's inhabitants.
What is the significance of the "International Rankings" mentioned?
The rankings are used to demonstrate that despite external pressures and historical obstacles, Georgia has achieved remarkable progress in reducing corruption and improving its administrative efficiency.
What is the author's conclusion regarding Georgia's future alignment?
The author argues that aligning with the European Union is a more logical path for achieving sustainable economic growth and civil rights, describing the alternative of the Eurasian Union as less beneficial.
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- Nino Khachiashvili (Autor:in), 2015, Russia blocking economic development of Georgia, München, GRIN Verlag, https://www.grin.com/document/356314
