Georgians are warm and welcoming. Their optimism can be infectious. Pride and confidence spur a belief in unlimited potential. Geopolitical and economic realities temper these Georgian traits but do not diminish or discourage faith in a bright and dynamic Georgian future. In less than three decades Georgia has transformed itself from a Soviet satellite to a rapidly developing economy with liberal democratic principles.
Evidence of Georgia’s Soviet past are abundant. In 1948 the Soviets built a metallurgical plant 30 kilometers south of Tbilisi in Rustavi. The remote location of the plant makes little sense, but nonetheless the plant has been in continuous operation having begun a transition from a state-owned factory to a privately-owned enterprise. A visit to the factory reveals the obvious inefficiencies of the Soviet economy.
In old photos of the plant, one gets a sense of Soviet priorities. Aerial shots show the offices in the foreground, reminiscent of a grand manor or small palace. The interior boasts luxurious marble staircases, reliefs depicting Soviet workers, and stately doors encased in leather.
Today, the once-grand offices of this now privately held steel plant are relatively quiet. A new management team reduced the total staff size to ensure profitability rather than to employ Georgians for the sake of employment. Managers understand the global market and have a vision to transform Rustavi into a world-class plant. The contrast between their free-market vision and their Soviet campus is stark.
Others in the Georgian private sector are also rushing toward modernization, scaling to do business globally, and enjoying success. One significant barrier is the Georgian government, which is wary of Moscow and quick to avoid discord with Russia. “They think it is better to stay still than to advance and risk any trouble with Russia,” said one executive. This is the dilemma for Georgia; does it race toward opportunity as it modernizes, or does it advance too slowly in order to avoid conflict with Russia.
In many ways, Georgia seems a lot like a successful start-up firm in the West. An excellent platform has been constructed but now needs new financing and seasoned economic and political leadership to help it achieve its full potential.
-- Allen R., Cohort 4