Capital Flow Watch

Georgia is a country in the Caucasus region of Eurasia. Situated at the juncture of Western Asia and Eastern Europe, it is bounded to the west by the Black Sea, to the north by Russia, to the south by Turkey and Armenia, and to the east by Azerbaijan. Georgia covers a territory of 69,700 km² and its population is 4.3 million, largely ethnic Georgians.

The history of Georgia can be traced back to the ancient kingdoms of Colchis and Iberia, and it was one of the first countries to adopt Christianity as an official religion, early in the 4th century. During the reign of King David and Queen Tamar in 9th and 11th century, Georgia underwent its golden age and cultural Renaissance. However, numerous Mongol, Persian and Ottoman invasions left Georgia devastated and divided. At the beginning of the 19th century, Georgia was annexed by the Russian Empire after its violation of the Treaty of Georgievsk. After a brief period of independence following the Russian Revolution of 1917, Georgia was invaded by Bolshevik Russia and forcefully incorporated into the Soviet Union in 1922. One of the most important Soviet leaders of Georgian ethnicity was Joseph Stalin.

The Independence of Georgia was restored in 1991. Like many post-communist countries Georgia suffered from the economic crisis and civil unrest during the 1990s. After the bloodless Rose Revolution, however, the new leadership has established efficient government institutions, reformed the economy and guided the country through a period of the fastest economic growth in its history.

Georgia is a representative democracy, organized as a secular, unitary semi-presidential republic; however, the idea to restore the constitutional monarchy is popular in certain circles, most notably in the Georgian Orthodox Church. It is currently a member of the United Nations, the Council of Europe, the World Trade Organization, the Organization of the Black Sea Economic Cooperation, the Community of Democratic Choice, and GUAM Organization for Democracy and Economic Development. The country seeks to join NATO and, in the longer term, accession to the European Union.
In August 2008, Georgia engaged in an armed conflict with Russia and separatist groups from South Ossetia and Abkhazia. In the aftermath of the conflict, Russia recognized the Georgian regions of South Ossetia and Abkhazia as independent states, but at present only Nicaragua, the de facto independent republic of Transnistria, and Venezuela have followed suit. On August 28, 2008, the Parliament of Georgia passed a resolution declaring Abkhazia and South Ossetia “Russian-occupied territories”. [Wikipedia: 2009]