Georgia has experienced approximately 5% economic growth from 2005 to 2022, despite facing significant challenges such as separatist conflicts, a civil war, and the 2008 financial crisis. Recognized as 'the World's Number One Reformer' in 2007, the country has a population of 3.7 million and a GDP comparable to that of Cambodia. However, Georgia is grappling with a brain drain issue, with an annual migration increase of 0.4% [36c0fa30].
To address these challenges, economists Dani Rodrik and Joseph E. Stiglitz advocate for a three-pronged economic strategy that emphasizes the importance of education and the development of the financial sector. Additionally, Tyler Cowen suggests a shift towards service-export industries as a means to bolster the economy. The proposed strategy outlines fundamental complications and distinct solutions necessary for Georgia's economic advancement [36c0fa30].
Historical examples from East Asia underscore the necessity of government support in industrialization efforts. The paper calls for attracting international banks to Georgia, highlighting the importance of political stability and investment in higher education to foster a conducive environment for economic growth [36c0fa30].