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Social conditions in South Ossetia remain harsh

By M. Alkhazashvili

(Translated by Diana Dundua)
Friday, December 14
Residents of the breakaway region of South Ossetia continue to suffer severe economic hardship, according to the newspaper Versia.

The newspaper’s estimates put the total 2007 budget revenue for the de facto secessionist capital of Tskhinvali at USD 3.9 million, up from USD 1.7 million in 2003, and the region’s GDP at USD 15 million, with average yearly wages amounting to USD 250.

Reliable measures of the region’s economy are notoriously difficult to come by; Versia did not specify how it arrived at its numbers.

The secessionist conflict of the early 1990s left the local economy in tatters. South Ossetian residents survive largely through subsistence farming and smuggling.

Since the Ergneti market, a major hub of black market activity, was shut down by Tbilisi in June 2004 at the order of former president Mikheil Saakashvili, the region has continued to struggle economically.