Government and Economy have gone to support the military. Railroads, highways, and bridges have been destroyed. Hundreds of thousands of lives have been lost. Agriculture, industry, and services have been seriously disrupted by the turmoil. Organized crime, attributed to a Georgian Mafia, has sapped many of the country’s financial resources. Corruption seems to have reached its way into all aspects of Georgia’s economy and government. During recent years, the public has become increasingly impatient over the government’s inability to stop the widespread corruption. Georgia also has been slow in making the transition from a centrally planned to free market economy. Under Soviet control, agriculture was collectivized and people did not own and work their own land. Industry also was government owned and controlled. There were very few incentives for hard work or individual initiative under the stifling Communist system. The transfer of land, industries, and businesses from government to private ownership is painstakingly difficult and time-consuming. Changing from a socialistic welfare state to an open, highly competitive, free market economy is also a very difficult transition for many people to make. Finally, Georgia’s relationship with Russia has changed. During its seven decades under Soviet dominance, Georgia played an important role in the U.S.S.R.’s economy. With its subtropical climate, it was able to provide a variety of warm weather crops to the some 250 million people living in colder lands north of the Caucasus. Warm weather and beautiful scenery combine to make Georgia one of the Soviet Union’s most attractive tourist destinations. The Soviets also developed a number of industries in its republics south of the Caucasus. After the Soviet collapse, the centralized economy and market eroded as well. As yet, freer market policies and a democratic government have not been able to establish a solid foundation and infrastructure for economic growth.
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