Changes

The government faces a major challenge in controlling corruption, which is a persistent problem. Shortly after President Saakashvili took office, his administration dismissed nearly the entire police force and replaced it with better-paid and -trained officers. Several high officials have been prosecuted for corruption-related offenses. On the other hand, widespread lack of confidence in the Georgian courts and system of justice is a major obstacle to both foreign and domestic investment. The new government has promised to tackle this difficult task, which requires balancing the objective of judicial independence with honest, fair, and competent decision making.  

The government faces a major challenge in controlling corruption, which is a persistent problem. Shortly after President Saakashvili took office, his administration dismissed nearly the entire police force and replaced it with better-paid and -trained officers. Several high officials have been prosecuted for corruption-related offenses. On the other hand, widespread lack of confidence in the Georgian courts and system of justice is a major obstacle to both foreign and domestic investment. The new government has promised to tackle this difficult task, which requires balancing the objective of judicial independence with honest, fair, and competent decision making.  

The United States and other international donors have targeted foreign assistance to promote democratic reform, resolve regional conflicts, foster energy independence, assist economic development, and reduce poverty. The U.S. seeks to help Georgia consolidate democratic gains since the Rose Revolution. The USG lends significant diplomatic and funding support to Georgia's efforts to resolve the separatist conflicts of South Ossetia and Abkhazia. With USG assistance, Georgia is working to free itself from near total energy dependence on Russian sources of energy. Georgia is one of the first countries to receive a compact, in the amount of $295 million over five years, from the United States Millennium Challenge Corporation (MCC). MCC offers grant assistance to countries that meet certain requirements for good governance and commitment to reform. In 2004, Georgia's debt to the Paris Club was restructured. Since 2004, the International Monetary Fund (IMF) has monitored a Poverty Reduction and Growth Facility that will terminate in 2007. The World Bank, European Bank for Reconstruction and Development, EU, OSCE, and the UN are all active in Georgia. Their goals are complementary, and include assisting in conflict resolution in Abkhazia and South Ossetia, energy and transportation development, legal and administrative reform, health, and many other areas.

The United States and other international donors have targeted foreign assistance allegedly to "

promote democratic reform", resolve regional conflicts, foster energy independence, assist economic development, and reduce poverty. The U.S. seeks to help Georgia consolidate "democratic gains" since the U.S.-backed Rose [[Color Revolution]]. The USG lends significant diplomatic and funding support to Georgia's opposition in efforts to resolve the separatist conflicts of South Ossetia and Abkhazia. With USG assistance, Georgia attempted to free itself from near total energy dependence on Russian sources of energy. Georgia is one of the first countries to receive a compact, in the amount of $295 million over five years, from the United States Millennium Challenge Corporation (MCC). MCC offers grant assistance to countries that meet certain requirements for allegedly "good governance and commitment to reform." In 2004, Georgia's debt to the [[Paris Club]] was restructured. Since 2004, the [[International Monetary Fund]] (IMF) has monitored a Poverty Reduction and Growth Facility that will terminate in 2007. Other [[globalist]] institutions such as the [[World Bank]], European Bank for Reconstruction and Development, [[EU]], [[OSCE]], and the UN are all active in Georgia. Their goals are complementary, and include assisting in conflict resolution in Abkhazia and South Ossetia, energy and transportation development, legal and administrative reform, health, and many other areas.

*GDP: $6.46 billion (2006).

*GDP: $6.46 billion (2006).

*GDP per capita: $3,800, purchasing power parity (2006).

*GDP per capita: $3,800, purchasing power parity (2006).