Wages and productivity levels differ across countries. For instance, in 2011 the average yearly income in the US was about $53 000, whilst the same indicator was $250 in Madagascar.
At least on paper, Georgia has all it takes to be a successful agricultural producer: a favorable tax environment, mild climate, long growing season, inexpensive labor force, and abundant water resources.
As Harry S Truman once noted – “It's a recession when your neighbor loses his job; it's a depression when you lose your own”. While Georgia was able to grow its economy, this growth did not trickle all the way down.
Despite spectacular growth performance during the past several years (averaging more than 6% since 2005), Georgia remains a poor country. In 2011, Georgia’s GDP per capita reached USD 3,215, just below the average for small island states in the Pacific and just above Guatemala.
After the break-up of the Soviet Union, Georgia went through a process of civil war and economic collapse. Official estimates suggest that Georgia’s GDP shrunk by more than 70% between 1990 and1994.