Country Report Georgia March 2011

Outlook for 2011-12: South Ossetia and Abkhazia

Prospects for the reintegration into Georgia of the breakaway provinces of Abkhazia and South Ossetia, which were already remote before the conflict with Russia in 2008, have vanished. In August 2008, shortly after hostilities ended, Russia recognised the independence of Abkhazia and South Ossetia. Although so far Nicaragua, Venezuela and Nauru are the only other countries to have recognised the two provinces' independence, Russia's decision appears to be irrevocable. Russia will accelerate the process of integration of the provinces' military, economic and administrative structures, especially those of South Ossetia, with its own. Georgia is trying to counteract Russian influence in these areas, and has launched a state strategy aimed at providing social assistance and improving economic links between Georgia and the breakaway provinces. However, the government's poor relations with the de facto authorities in the territories will make implementing the plan difficult. The government will also continue to lobby the international community to help to restore Georgian territorial integrity. Tensions between the breakaway provinces and Georgia will remain high through the forecast period.

© 2011 The Economist lntelligence Unit Ltd. All rights reserved
Whilst every effort has been taken to verify the accuracy of this information, The Economist lntelligence Unit Ltd. cannot accept any responsibility or liability for reliance by any person on this information
IMPRINT