Georgia has considerable deposits of metal (for instance, manganese, copper, and gold) and non-metal resources, however, our current regulations do not encourage investment while at the same time failing to generate significant fiscal revenues.

Although the mining sector of Georgia only accounts for a small share of GDP, around one quarter of Georgia’s total exports are related to mining activities. Increased use of Georgia’s natural resources thus has the potential to benefit the economic development of the country as well as to contribute to public finances.

After the collapse of the Soviet Union in 1991, the newly independent state underwent serious turmoil, including civil war, deteriorated governance, depreciation of critical infrastructure, and endemic corruption. But after the Rose Revolution in 2003, the country began to implement major political and economic reforms

Since the Rose Revolution, pro-Western Georgian politicians strive to lead their country into the apparent safe haven of the NATO defense collective. So far membership seems far off, causing disappointment among many Georgians and affirming those who preferred less integration in the Western geopolitical bloc. The continuing debate as to whether or not Georgia should assume full membership in the alliance may be obfuscating the reality that the present relationship with the alliance is the most ideal for Georgia.

The objective of this study was to assess the economy wide indirect benefits of investments in the East West Highway (EWH). This study has used a computable general equilibrium (CGE) model, which simulates indirect benefits associated with the completion of the upgraded road corridor.