Georgian Foundation for Strategic and International Studies Center for Applied Economic Studies Reforming of the Post-Soviet Georgia’s Economy in 1991-2011 GFSIS Center for Applied Economic Studies Research Paper—03.2013 By Vladimer Papava Senior Fellow, Director of the Center for Applied Economic Studies, Georgian Foundation for Strategic and International Studies (GFSIS), 3a, Shio Chitadze Street, Tbilisi, 0108, Republic of Georgia, Phone: (+995 32) 247-35-55 Fax: (+995 32) 298-52-65 E-mail:
[email protected] www.gfsis.org www.papava.info 1 Reforming of the Post-Soviet Georgia’s Economy in 1991-2011 Vladimer Papava Abstract: Similarly to other post-Communist countries Georgia also embarked transition from a command economy to a market economy. The Georgian experience of reforming its economy should be considered interesting as the country succeeded in overcoming the hyperinflation and the economic downturn was followed with the economic growth. Successes in economic reforms were followed by stagnation, which was particularly exacerbated by the increased scale of corruption. The economic reforms, which were carried out after the ―Rose Revolution,‖ are especially interesting. Along with successful reforms of neo-liberal nature, neo-Bolshevik actions became apparent as the Government started openly infringing property rights. Keywords: economic reforms, economic development, transition to a market economy, ―Rose Revolution,‖ post-Soviet Georgia JEL Classification: P20, P21, P26, P31, P33 2 Introduction Georgia is a one of the most ancient country in the world (e.g., Lang, 1966; Metreveli, 1995), which has already made an exclusively right choice—to tie up its future with Europe, with the West (Rondeli, 2001).