Background:  The region of present-day Georgia contained the ancient kingdoms of Colchis and Kartli-Iberia. The area came under Roman influence in the first centuries A.D. and Christianity became the state religion in the 330s. Domination by Persians, Arabs, and Turks was followed by a Georgian golden age (11th-13th centuries) that was cut short by the Mongol invasion of 1236. Subsequently, the Ottoman and Persian empires competed for influence in the region. Georgia was absorbed into the Russian Empire in the 19th century. Independent for three years (1918-1921) following the Russian revolution, it was forcibly incorporated into the USSR until the Soviet Union dissolved in 1991. An attempt by the incumbent Georgian government to manipulate national legislative elections in November 2003 touched off widespread protests that led to the resignation of Eduard SHEVARDNADZE, president since 1995. New elections in early 2004 swept Mikheil SAAKASHVILI into power along with his National Movement party. Progress on market reforms and democratization has been made in the years since independence, but this progress has been complicated by two civil conflicts in the breakaway regions of Abkhazia and South Ossetia. These two territories remain outside the control of the central government and are ruled by de facto, unrecognized governments, supported by Russia. Russian-led peacekeeping operations continue in both regions. The Georgian Government put forward a new peace initiative for the peaceful resolution of the status of South Ossetia in 2005.

Location:  Southwestern Asia, bordering the Black Sea, between Turkey and Russia

Geographic coordinates:  42 00 N, 43 30 E

Area:  total: 69,700 sq km
land: 69,700 sq km
water: 0 sq km

Climate:  warm and pleasant; Mediterranean-like on Black Sea coast

Natural resources:  forests, hydropower, manganese deposits, iron ore, copper, minor coal and oil deposits; coastal climate and soils allow for important tea and citrus growth

Population:  4,646,003 (July 2007 est.)

Ethnic groups:  Georgian 83.8%, Azeri 6.5%, Armenian 5.7%, Russian 1.5%, other 2.5% (2002 census)

Religions:  Orthodox Christian 83.9%, Muslim 9.9%, Armenian-Gregorian 3.9%, Catholic 0.8%, other 0.8%, none 0.7% (2002 census)

Languages:  Georgian 71% (official), Russian 9%, Armenian 7%, Azeri 6%, other 7%
note: Abkhaz is the official language in Abkhazia

Capital name:  T'bilisi
geographic coordinates: 41 43 N, 44 47 E
time difference: UTC+4 (9 hours ahead of Washington, DC during Standard Time)

Administrative divisions:  9 regions (mkharebi, singular - mkhare), 9 cities (k'alak'ebi, singular - k'alak'i), and 2 autonomous republics (avtomnoy respubliki, singular - avtom respublika)
regions: Guria, Imereti, Kakheti, Kvemo Kartli, Mtskheta-Mtianeti, Racha-Lechkhumi and Kvemo Svaneti, Samegrelo and Zemo Svaneti, Samtskhe-Javakheti, Shida Kartli
cities: Chiat'ura, Gori, K'ut'aisi, P'ot'i, Rust'avi, Tbilisi, Tqibuli, Tsqaltubo, Zugdidi
autonomous republics: Abkhazia or Ap'khazet'is Avtonomiuri Respublika (Sokhumi), Ajaria or Acharis Avtonomiuri Respublika (Bat'umi)
note: the administrative centers of the two autonomous republics are shown in parentheses

National holiday:  Independence Day, 26 May (1918); note - 26 May 1918 was the date of independence from Soviet Russia, 9 April 1991 was the date of independence from the Soviet Union

Flag description:  white rectangle, in its central portion a red cross connecting all four sides of the flag; in each of the four corners is a small red bolnur-katskhuri cross; the five-cross flag appears to date back to the 14th century

Political parties and leaders:  Burjanadze-Democrats [Nino BURJANADZE]; Georgian People's Front [Nodar NATADZE]; Georgian United Communist Party or UCPG [Panteleimon GIORGADZE]; Georgia's Way Party [Salome ZOURABICHVILI]; Greens [Giorgi GACHECHILADZE]; Industry Will Save Georgia (Industrialists) or IWSG [Georgi TOPADZE]; Labor Party [Shalva NATELASHVILI]; National Democratic Party or NDP [Bachuki KARDAVA]; National Movement Democratic Front [Mikheil SAAKASHVILI] (bloc composed of National Movement and Burjanadze-Democrats); National Movement [Mikheil SAAKASHVILI]; New Rights [David GAMKRELIDZE]; Republican Party [David USUPASHVILI]; Rightist Opposition [David GAMKRELIDZE] (bloc composed of Industrialists and New Right Party); Socialist Party or SPG [Irakli MINDELI]; Traditionalists [Akaki ASATIANI]; Union of National Forces-Conservatives [Koba DAVITASHVILI and Zviad DZIDZIGURI]

Economy - overview:  Georgia's main economic activities include the cultivation of agricultural products such as grapes, citrus fruits, and hazelnuts; mining of manganese and copper; and output of a small industrial sector producing alcoholic and nonalcoholic beverages, metals, machinery, and chemicals. The country imports the bulk of its energy needs, including natural gas and oil products. It has sizeable but underdeveloped hydropower capacity. Despite the severe damage the economy has suffered due to civil strife, Georgia, with the help of the IMF and World Bank, has made substantial economic gains since 2000, achieving positive GDP growth and curtailing inflation. Georgia had suffered from a chronic failure to collect tax revenues; however, the new government is making progress and has reformed the tax code, improved tax administration, increased tax enforcement, and cracked down on corruption. Due to concerted reform efforts, collection rates have improved considerably to roughly 60%, both in T'bilisi and throughout the regions. In addition, the reinvigorated privatization process has met with success, supplementing government expenditures on infrastructure, defense, and poverty reduction. Despite customs and financial (tax) enforcement improvements, smuggling remains a drain on the economy. Georgia also suffers from energy shortages due to aging and badly maintained infrastructure, as well as poor management. Continued reform in the management of state-owned power entities is essential to successful privatization and onward sustainability in this sector. The country is pinning its hopes for long-term growth on its role as a transit state for pipelines and trade. The construction on the Baku-T'bilisi-Ceyhan oil pipeline and the Baku-T'bilisi-Erzerum gas pipeline have brought much-needed investment and job opportunities. Nevertheless, high energy prices have compounded the pressure on the country's inefficient energy sector. Restructuring the sector and finding energy supply alternatives to Russia remain major challenges.