We may recall that the Lazika city project has been proposed by the Saakashvili administration to accelerate the process of urbanization. A new city was suggested as a means of absorbing surplus rural population and thus paving the way for land consolidation and greater productivity in agriculture.
In his blog post “The puzzle of agricultural productivity in Georgia and Armenia”, Adam Pellillo raises the following question.
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.
Starting from October 15, Georgian consumers have to pay about 5-10 tetri more for one loaf of bread. Many large producers increased their prices.
While more than half of all jobs in Georgia are in the agricultural sector, agriculture’s share of value-added to GDP was only 11 percent in 2007 (World Bank).