Despite arduous government efforts to reduce regional disparities, population and wealth are very unevenly distributed across Georgia’s territory. The largest city, Tbilisi, is pulling scarce human and financial resources away from other major cities, which in turn compete with smaller towns and villages in their immediate locale. Tbilisi’s population is already more than five times larger than that of Kutaisi, the second largest Georgian city (200,000 people). And while no precise data is available the gap is likely to be growing further.

In principle, there is nothing unusual about this situation. The largest cities around the world offer the most productive environment for economic activity. For one thing, they have the best labor force and a great variety of high-quality suppliers and service providers. Not less importantly, life in the capital implies not only higher productivity and higher wages, but also better access to essential amenities such as schools, healthcare, culture, etc.

Georgia is no exception to this rule except that the gap between Tbilisi and the rest of the country is much larger than the “norm” around the world. With about 1,15 mln. inhabitants, in 2010 Tbilisi produced 47% of Georgia’s total value-added, according to GeoStat, almost twice its share in population (26%).

There are also important negative sides to living in a large city such as higher costs (certainly as far as services and housing prices are concerned), higher levels of pollution, longer daily commutes, more time spent in traffic jams, limited access to environmental amenities, etc. This explains why not all people move to the cities, and some choose to move out of “unlivable” oversized cities to smaller towns or the countryside.

For a variety of reasons governments around the world are trying to implement regional policies that attempt to stem the tide and provide profitable investment and employment opportunities outside the main cities. For instance, Israel offers large subsidies to West Bank settlers in order to change the demography of occupied territories. Switzerland and many other EU countries hand out very large subsidies to farmers for them to look after traditional landscapes and provide recreation services.

Georgia’s regional policies are quite multidimensional. They include the widely publicized construction of the new parliament building in Kutaisi, the creation of special touristic zones along the Black Sea coast, and massive investment in roads and other types of public infrastructure in Adjara, Svaneti, Kakheti, and Samtskhe Javakheti, among others. Yet, the center-periphery gap persists.

THINKING OUT-OF-THE-BOX?

Until recently, the so-called hippodrome area along the Vake-Saburtalo road has been the major sports and recreation area in central Tbilisi. Hundreds of Tbilisi citizens were flocking to this green oasis on a daily basis, jogging or cycling along the mile-long circular track, playing football and rugby, throwing “Flying Khachapuri” (the ex-pat jargon for Frisbee), or just walking their dogs. As no cars were allowed into the territory it was perfectly safe for kids. And, as a matter of fact, this was one of the very few (flat and safe) places in Tbilisi where small kids could learn cycling.

Not any more.

During the last several months, the hippodrome area has become a construction site for a tunnel connecting Saburtalo to the new Mziuri highway. Access roads are being laid on the running/cycling track. Clouds of dust, bulldozers, and heavy trucks welcome desperate joggers. Kids are no longer allowed.

It is not clear what will be the fate of the large green field at the center of the hippodrome as there are no signs explaining the final purpose of the entire construction effort. What is obvious, however, is that regardless of its final goal, the new tunnel will dramatically reduce Tbilisi dwellers’ ability to engage in outdoor sports and recreation activities.

The decision to build the tunnel in the hippodrome area may be perceived by some as an urban planning mistake, yet it may in fact represent an innovative, out-of-the-box idea for a regional policy to bridge the gap between Tbilisi and rest-of-Georgia. Indeed, by eliminating (or reducing the size of) this unique facility, this policy makes Tbilisi less attractive for investors and high-skill workers (in particular expatriate workers) who place great value on outdoor activities. This, in turn, raises the prospect for these workers and related investments to land in Rustavi, Gori, or Lazika.

A policy seeking to make Tbilisi less attractive for people and businesses would complement the ongoing government efforts to develop the periphery. This approach has one important advantage: rather than picking particular “winners”, it would provide a potential boost to all peripheral locations. This is crucial given that Georgia has only one parliament and a limited number of government agencies that could be redeployed while investment and high-skill labor are needed everywhere.