Economic development of the municipalities (outside capital) is one of the key sustainable development challenges in Georgia. The capital city of Tbilisi, while accounting for nearly 1/3 of the country’s population generates 53% of GDP and keeps expanding, whereas the municipalities, with few exceptions, are losing population and suffering from high incidence of poverty, unemployment, and slow and weak economic development.

Remittances constitute one of the most important external income sources for Georgian households, accounting for more than 10 percent of GDP in recent years. Large-scale emigration to countries such as Russia, Italy, Greece, Germany, and the United States has made remittance inflows a central component of household livelihoods, particularly for vulnerable and lower-income groups.

Economic development of the municipalities (outside capital) is one of the key sustainable development challenges in Georgia. The capital city of Tbilisi, while accounting for nearly 1/3 of the country’s population generates 50% of GDP and keeps expanding, whereas the municipalities, with few exceptions, are losing population and suffering from high incidence of poverty, unemployment, and slow and weak economic development.

The Government of Georgia (GoG) started the process of institutionalizing RIA as an integral part of policymaking almost a decade ago. These efforts culminated with the realization of Ordinance No. 35, Tbilisi, 17 January 2020 (“ordinance” from here on).

When Ukrainian President Victor Yanukovich decided not to sign the association agreement with the European Union and instead opted for a Russian package of long-term economic support, many Ukrainians perceived this not to be a purely economic decision. Rather, they feared this to be a renunciation of Western cultural and political values, and – to put it mildly – were not happy about this development.