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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.
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In his blog post “The puzzle of agricultural productivity in Georgia and Armenia”, Adam Pellillo raises the following question.
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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.
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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.
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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).