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Georgia: Conditions in the Soviet System
Country Study > Chapter 6 > The Economy > Conditions in the Soviet System

CONDITIONS IN THE SOVIET SYSTEM


Georgian nationalists contended that Georgia's role in the "division of labor" among Soviet republics was unfairly assigned and that other republics, especially Russia, benefited from the terms of trade set by Moscow. Georgian manganese, for example, went to Soviet steel plants at an extremely low price, and Georgian agricultural goods also sold at very low prices in other republics. At the same time, Georgia paid high prices for machinery and equipment purchased elsewhere in the Soviet Union and in Eastern Europe. Despite Georgia's popularity as a tourist destination, the republic reaped few benefits because most hardcurrency earnings from tourism went to Moscow and because Soviet tourists paid little for their state-sponsored "vacation packages." Georgia, however, benefited from energy prices that were far below world market levels.

Despite the ambiguities of official statistics, all evidence indicates that after 1989 Georgia experienced a disastrous drop in industrial output, real income, consumption, capital investment, and virtually every other economic indicator. For example, official statistics showed a decline in national income of 34 percent in 1992 from 1985 levels.

Data as of March 1994




Last Updated: March 1994


Editor's Note: Country Studies included here were published between 1988 and 1998. The Country study for Georgia was first published in 1994. Where available, the data has been updated through 2008. The date at the bottom of each section will indicate the time period of the data. Information on some countries may no longer be up to date. See the "Research Completed" date at the beginning of each study on the Title Page or the "Data as of" date at the end of each section of text. This information is included due to its comprehensiveness and for historical purposes.

Note that current information from the CIA World Factbook, U.S. Department of State Background Notes, Australia's Department of Foreign Affairs and Trade Country Briefs, the UK's Foreign and Commonwealth Office's Country Profiles, and the World Bank can be found on Factba.se.

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