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.

The paper investigates the peculiarities of the models of economic development of Georgia and Russia. Taking into account the catch-up effect, the paper shows adjusted economic growth indicators of these countries during the post-Soviet period. Due to the presence of necroeconomy in both countries, the so-called “post-Soviet post-industrialism” is analyzed. It has been shown that both in Georgia and Russia, essentially identical consumer models of development of poor countries have established. In order to transfer to an innovative model of economic development, it is essential to stimulate the interest of the private sector of the economy.

Georgia is one of the United States' closest partners among the states that gained their independence after the USSR collapsed in 1991. With a history of strong economic aid and security cooperation, the United States has deepened its strategic partnership with Georgia since Russia's 2008 invasion of Georgia and 2014 invasion of Ukraine. U.S. policy expressly supports Georgia's sovereignty and territorial integrity within its internationally recognized borders, and Georgia is a leading recipient of U.S. aid to Europe and Eurasia. Many observers consider Georgia to be one of the most democratic states in the post-Soviet region, even as the country faces ongoing governance challenges. The center-left Georgian Dream-Democratic Georgia party (GD) holds a dominant political position, with about 70% of seats in parliament. Although Georgia faces high rates of poverty and underemployment, its economy has performed better since 2017 than it did in the previous four years.

Nations and international organizations are increasingly using sanctions as a means to achieve their foreign policy aims. However, sanctions are ineffective if they are executed without a clear strategy responsive to the nature and changing behavior of the target. In The Art of Sanctions, Richard Nephew offers a much-needed practical framework for planning and applying sanctions that focuses not just on the initial sanctions strategy but also, crucially, on how to calibrate along the way and how to decide when sanctions have achieved maximum effectiveness. Nephew—a leader in the design and implementation of sanctions on Iran—develops guidelines for interpreting targets’ responses to sanctions based on two critical factors: pain and resolve. The efficacy of sanctions lies in the application of pain against a target, but targets may have significant resolve to resist, tolerate, or overcome this pain. Understanding the interplay of pain and resolve is central to using sanctions both successfully and humanely. With attention to these two key variables, and to how they change over the course of a sanctions regime, policy makers can pinpoint when diplomatic intervention is likely to succeed or when escalation is necessary. Focusing on lessons learned from sanctions on both Iran and Iraq, Nephew provides policymakers with practical guidance on how to measure and respond to pain and resolve in the service of strong and successful sanctions regimes.

Although "democracy promotion" has become a popular term for policy makers and scholars, democratization is rarely a smooth or linear transition. While some countries quickly democratize, others lag behind despite a long period of democracy promotion activities. Furthermore, while democracy promotion itself has been widely studied, there is a paucity of literature available assessing the outcome or the impact of democracy promotion. This book investigates democracy promotion by the European Union and the United States of America, and seeks to uncover why intensive democracy promotion has resulted in limited democratic progress. Exploring case studies of Armenia, Azerbaijan, and Georgia, this book examines the conditions in which democracy promotion is more likely to result in democratic transformation. In addition, it introduces the concept of the "democracy blocker," a powerful authoritarian regional actor that is capable of blocking democratization in other countries. This book will be of interest to students and scholars of Political Science, Democracy, Democratization, EU Studies, US Politics, Comparative Politics, and Foreign Policy.

This US report argues that Russia's economic crisis presents an opportunity to deepen American and European economic ties with Russia and integrate the country more firmly in the international system, something that could, over time, bring Russian and Western interests closer together.