As the year 2023 comes to an end, it is time to look back at the achievements and challenges of Georgia, a small but resilient country in the South Caucasus. In this article, we will review some of the key events and trends that shaped Georgia’s domestic and foreign policy, as well as the prospects and opportunities for the future.
Georgia’s Democratic Development: Progress and Problems
One of the main achievements of Georgia in 2023 was the successful completion of the electoral reform process, which resulted in a more proportional and representative parliament. The reform was initiated by the ruling Georgian Dream party, which agreed to lower the electoral threshold from 5% to 1%, and to increase the number of proportional seats from 120 to 150. The reform was welcomed by the opposition parties, civil society, and the international community, as a sign of political maturity and compromise.
However, the reform also brought some challenges and controversies, such as the distribution of the remaining 10 majoritarian seats, the allocation of state funding for political parties, and the formation of the new government. The opposition accused the ruling party of manipulating the system to maintain its dominance, while the ruling party accused the opposition of being irresponsible and divisive. The political polarization and mistrust hampered the dialogue and cooperation between the different political forces, and created a tense and unstable environment.
Georgia’s Economic Recovery: Opportunities and Risks
Another major achievement of Georgia in 2023 was the economic recovery from the COVID-19 pandemic, which hit the country hard in 2020 and 2021. According to the National Statistics Office of Georgia, the economy grew by 5.9% in November, compared to the same month of the previous year. The main drivers of the growth were the sectors of trade, tourism, construction, and manufacturing. The government also implemented various stimulus measures, such as tax relief, social assistance, and infrastructure projects, to support the businesses and households affected by the crisis.
However, the economic recovery also faced some risks and challenges, such as the high inflation rate, the depreciation of the national currency, the external debt burden, and the vulnerability to external shocks. The inflation rate reached 12.9% in November, exceeding the target of 6% set by the National Bank of Georgia. The main causes of the inflation were the rising prices of food, fuel, and imported goods, as well as the increased demand due to the reopening of the economy. The depreciation of the Georgian Lari, which lost about 20% of its value against the US dollar in 2023, also contributed to the inflation and the debt burden. The external debt of Georgia reached 130% of GDP in November, posing a threat to the fiscal sustainability and the financial stability of the country.
Georgia’s Foreign Policy: Achievements and Challenges
One of the most important achievements of Georgia in 2023 was the attainment of the EU candidate status, which marked a significant milestone in the country’s European integration process. The EU recognized Georgia’s progress in implementing the reforms and fulfilling the criteria required for the candidacy, such as the rule of law, democracy, human rights, and market economy. The EU also expressed its support for Georgia’s sovereignty and territorial integrity, and condemned the illegal actions of Russia and its occupation regimes in Abkhazia and South Ossetia.
However, the EU candidate status also brought some challenges and expectations for Georgia, such as the need to accelerate and deepen the reforms, to enhance the public awareness and support for the EU integration, and to cope with the external pressures and threats from Russia and its proxies. Russia intensified its aggression and annexation of Georgia’s occupied territories, by transferring the ownership of the Bichvinta resort in Abkhazia to the Russian state, and by conducting military exercises and provocations near the administrative boundary lines. Russia also tried to undermine Georgia’s EU integration by spreading disinformation and propaganda, and by supporting the anti-Western and pro-Russian forces in the region.
Georgia’s Future: Hopes and Fears
As Georgia enters the year 2024, it faces a mix of hopes and fears for its future. On the one hand, Georgia has a lot of potential and opportunities to continue its democratic and economic development, and to advance its European and Euro-Atlantic aspirations. Georgia has a young and educated population, a vibrant civil society, a strategic location, and a rich cultural and natural heritage. Georgia also enjoys the support and solidarity of its Western partners and allies, who share its values and interests.
On the other hand, Georgia also faces a lot of challenges and threats to its security and stability, and to its national identity and unity. Georgia has to deal with the unresolved conflicts and the occupation of its territories, the political polarization and the social discontent, the economic difficulties and the social inequalities, and the external interference and the hybrid warfare. Georgia also has to cope with the changing and uncertain regional and global environment, which poses new risks and challenges for its foreign policy and its international role.
In conclusion, Georgia has a lot to be proud of and a lot to work on in the coming year. Georgia has to reflect on its past achievements and mistakes, to reminisce on its historical and cultural legacy, and to apprehend its present realities and future possibilities. Georgia has to be pragmatic and rational, but also visionary and ambitious, in pursuing its national interests and its common goals.
