Russia blocking economic development of Georgia

Seminar paper from the year 2015 in the subject Economics - International Economic Relations, grade: 1,3, Karlshochschule International University, language: English, abstract: Over centuries, Georgia, as a geopolitical interest for Russia, has been going through the conflicts, wars, and embargos, which have had a huge effect and impact on economic developments of the country. The purpose of this seminar paper is to present and analyse reliable sources and data, which clearly support and as well challenge the argument stated and think about solutions for the international economic relations between two countries. I consider as well very crucial, to see it from different perspectives, to critically identify and measure the facts and the rules which were disobeyed, free trade which has been “governed” by state governments and violated – forgetting the wills and about the well-being of the inhabitants, therefore acting against the initial role of state government, forgetting the responsibilities towards the people living there. Main purpose of this topic is to deeply understand economic difficulties Georgia has been coming across for a long period of time, and what a big role Russia has played in it. I will be discussing and showing the arguments how much the “21st century’s economic relations rules” are disobeyed and disrespected. I will be talking about International Rankings of Georgia, how much the country has advanced since years, showing it in comparison with Russia and other European countries. Wine plays one of the most important roles in the economy of Georgia in case of exports and trading, by banning Georgian wine in Russia, Georgian economy faced a lot of difficulties. Even though, Russia was the number one in exporting Georgian Wine, and Georgia was importing a lot of products from Russia, businesses resumed several times, completely against the free trade and purely for political reasons. Why does it happen so? What is the idea behind it? The most important issues will be briefly but thoroughly discussed in my seminar paper, assuming the reasons and solutions. The topic of corruption in Georgia and Russia, comparing the two and how much Georgia achieved even considering the obstacles it has been facing. Russia forcing Georgia to join Eurasian Union – possible threats, how much illogical it is for Georgia to join, and what kind of development it can have in case of becoming a member of European Union in comparison with Eurasian Union. One of the most obvious facts will be discussed how much Russia has changed Georgian economic development and possible future threats Georgia is already facing.