Georgia's economic development after its gain of independence

In 1991, Georgia declared independence, along with the dissolution of the Soviet Union of Socialist Republics. It has transited from a closed-center planning economy to a market economy which lasted 70 years. With Georgia's declaring independence, a system based on an independant democratic state and a market economy were needed to be built. This process was contradictory and difficult. In Georgia, systematic mistakes were made, especially during the first phase of economic reforms. The purpose of this study is to examine all economic models implemented after independence. The transition from Socialism to market economy was a very comprehensive and fraternant process for Georgia. Neoclassical transition strategies had been implemented in Georgia to initiate reforms. Therefore, in this study, the success of the applicable economic modems as well as the causes of the errors are investigated. As the study shows, as a consequence of wrong strategies, the Georgian economy had a difficult time. The disintegration of the SSCB uncovered a new situation in Georgia which affected Georgian's social and economic system and a number of political changes took place. The post-independence economic crisis destroyed many areas of the economy. During the SSCB period, Georgia had a high level of prosperity, and with the disintegration, the economy experienced a major crisis. In the early 1990, inflation and unemployment increased, while agricultural and industrial products were reduced in production. After independence, Georgia had passed at least two stages of development. In the first phase, the country had tried to overcome the negative consequences of the economy as a result of the collapse of the SSCB. The collapse of the Soviet system led to the loss of many co-operation, the closure of businesses caused the deterioration of GDP, declining of living standards and increasing of unemployment. Stage two covers reforms that were carried out after 2003. The reforms covered the restructuring of administrative and public offices and the structural development of the economic system. This study aims at examining, discussing and shedding light on the economic models of the Republic of Georgia that have been applied since 1990s. According to the findings, foreign direct investments and international trade have had a significant influence on the economic growth of Georgia. Within the framework of the research, the economic relations between Georgia and Turkey have been examined and the ways it impacts the country's economy have been addressed. Ongoing projects between Georgia and Turkey play a significant role in the economic development of Georgia. The purpose of this study is to research the economic development of Georgia, which has a significant geopolitical position due to its region, and to make a contribution to literature. It is clear that the thesis will contribute to Georgia's Turkish literature for future research in social sciences. Key Words: Georgian Economy in Transition Process, Macroeconomic Stabilisation in Georgia, Transition Economics, Neoclassical Model, Reforms