Revenue oriented economy
By Messenger staff
Friday, December 12Experts describe the Georgian economy as “revenue oriented.” In 2006 such revenues were money transfers (worth USD 800 million) direct investments (USD 1.1 billion) grants (USD 187 million) privatization proceeds (USD 312 million) and approximately USD 100 million deriving from the use of our transit pipelines. This pattern continued through 2007 and this year prior to the August events.
It is estimated that approximately 1 million Georgian adults live abroad and money transfers mostly come from these people, who thus sustain their families. Approximately 600,000 Georgians live in Russia, the rest in different European countries, CIS countries and the USA.
Of these sources of income one is now limited, i.e. income from privatization, as since the Rose Revolution most of the important assets have already been sold. The extent of international donor assistance, which now promises to be a significant budget factor, depends much on the strategic interests of donor countries.