Georgia (country)

Georgia (Template:Lang-ka transliterated as Sakartvelo) is a country to the southeast of Continental Europe at the east coast of the Black Sea, most of which is located in the South Caucasus, while a portion of the territory lies in the North Caucasus. It shares borders with Russia in the north and Turkey, Armenia, and Azerbaijan in the south.

Georgia is a unitary, emerging liberal democratic nation-state with an ancient historical and cultural heritage. Georgian civilization stretches back for more than three thousand years of history with a unique literary and artistic heritage. Culturally, historically, and politically Georgia is considered part of Europe; however, the official geographic classification of the country varies according to different sources. Sometimes Georgia is considered a transcontinental nation.

The English name Georgia is a transliteration of the classical term (Template:Lang-el) according to archaeological research, the Greek and Aramaic alphabets were used for the purposes of commerce before officially adopting the Georgian alphabet during the reign of King Pharnavaz I of Iberia. In 327, Christianity was declared the official state religion in the ancient Georgian Kingdom of Iberia, making Georgia the second oldest country after Armenia (301) to declare Christianity as her official state religion. The Bible was translated into Georgian in the 5th century.

Geographically, Georgia is diverse and its natural resources are abundant. The mixture of Alpine zone in the Caucasus mountains and the subtropical Black Sea coast of western Georgia attracts many tourists, because the country is considered both an excellent ski resort and an excellent sea resort. Georgia has one of the oldest wine-making traditions in the world. Georgian wine is characterized as naturally semi-sweet and very competitive with French, Spanish and other Western European wines and is well-known around the world, especially in Eastern Europe. Georgia has been called the birthplace of wine, due to archaeological findings which indicate wine production back to 5000 BC.

Economy

Archaeological research demonstrates that Georgia has been involved in commerce with the majority of the world's historical empires. Throughout Georgia's history agriculture and tourism have been principal economic sectors, due to the country's climate and topography. For much of the 20th century, Georgia's economy was governed by the Soviet command model. Since the fall of the USSR in 1991, Georgia has seen major structural reform designed to transition to a free market economy. In 2006 Georgia's real GDP growth rate reached 8.8%, making Georgia one of the fastest growing economies in Eastern Europe. The World Bank dubbed Georgia "the number one economic reformer in the world" because it has in one year improved from rank 112th to 37th in terms of ease of doing business.

2006 estimates place Georgia's GDP (adjusted for purchasing power parity) at US$17.79 billion. Georgia's economy is becoming more dependent on services (now representing 54.8% of GDP), moving away from agricultural sector (17.7%). After the Kremlin banned imports of Georgian wine to Russia, one of Georgia's biggest trading partners, and severed financial links, the Georgian lari's rate of inflation spiked to 10% in 2006. However, the high inflation rate was offset in part by a high investment rate (30% of 2006 GDP) and the country maintained a solid credit in international market securities.

According to Ilia Chavchavadze, the founder of the National Bank, in order to increase wealth of the country, there must be economic freedom. Georgia is becoming more integrated into the global trading network: its 2006 imports and exports account for 10% and 18% of GDP respectively. Georgia's main imports are natural gas, oil products, machinery and parts, and transport equipment. However, the country also has sizable internal energy hydropower resources. In 2004, the Georgian Parliament voted to introduce a flat income tax pegged at 12%, which significantly increased tax collection, thereby reducing the government's formerly large budget deficits. Experts estimate that Georgia has in the past few years significantly reduced corruption, because Transparency International places Georgia at joint number 99th in the world in its 2006 Corruption Perceptions Index (with number 1 being considered the least corrupt nation). This is a significant improvement on Georgia's 2005 Corruption Perceptions Index, where Georgia was rated joint 130th.