Georgia’s Strategic Path: Economic Integration as a Strategic Pathway

Abstract

Abstract Since achieving independence from the Soviet Union in 1991, the Republic of Georgia has balanced its aspirations to Westernize with its pre-existing and continuing bonds with Russia. Much of the research looking at this dynamic has focused on security and political issues; this article instead focuses on the economic sphere and examines whether Georgia’s economic ties with Europe and Russia have created closer strategic relations. To determine if Georgia is pursuing economic integration with the European Union (EU) and Russia, the article draws on economic data from the National Statistics Office of Georgia on exports, imports, foreign direct investment (FDI), and tourism. It examines the academic literature on Georgia’s strategy of political integration with the EU and its policy of “normalization” with Russia since 2012. Trade and investment have increased with Europe, while tourism from Russia increased substantially between 2015 and 2019. Still, the article finds that Georgia’s economic relations have not created strategic integration with either polity.