Environmental Performance Reviews: Georgia

First Review

image of Environmental Performance Reviews: Georgia

Environmental Performance Reviews promote sustainable development throughout Europe. They present detailed studies on environmental position of each country and examine the framework for environmental policy and management.



Mining, industry and environment

In the 1980s, Georgia’s industrial sector accounted for 65% of gross domestic product (GDP). The situation changed dramatically in 1991, when Georgia started a difficult transition from a centrally planned to a market economy. The decline in industrial production reached its critical level between 1990-1995, when the average GDP growth rate plummeted from 0.5% to –26.9%. In 2000, industrial output accounted for 10% of GDP, whereas agriculture, trade and services accounted for the main share (figure 9.1). The mining sector also experienced a sharp decline. In the early 1990s, this sector accounted for 10% of GDP; currently this figure is reduced to only 2%. The problems faced by Georgia’s industrial and mining sectors are attributed to a combination of factors such as inefficient management, lack of investment in the modernization of enterprises, the energy crisis, the disruption of economic ties between the former Soviet republics, and civil war.


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