On November 13, 2013, ISET hosted a presentation of the preliminary results of “Support in Economic Policy Analysis Using CGE Modeling in Georgia,” an ISET Policy Institute project that started in December 2012 with the financial and technical support of GIZ’s Private Sector Development Program South Caucasus.

The purpose of this report is to take stock of the existing regionally disaggregated data and to identify disparities between the regions of Georgia. Few similar studies exist, with the major exceptions being the Diagnostic Report by the Task Force for Regional Development in Georgia (2009) and the Georgia Urbanization Review by the World Bank (2013).

As you can see, and contrary to widespread perceptions, there is no significant augmentation of the urban areas' population in Georgia in the last two decades or so.

In the globalized world of today, increasing national competitiveness has become an important policy target for any country. While engaging in mutually beneficial trade, technological and cultural exchanges, countries find themselves in a race for scarce mobile resources such as financial capital and talent.

While there are differences between regions, most of the systematic regional disparities can be explained by differences in urbanization rates across the regions; namely, relatively more urbanized regions tend to have a higher per capita gross value added, a more diverse and sophisticated economic structure, and a better developed infrastructure.