• Steve LeVine covers foreign affairs for Business Week. He previously was correspondent for Central Asia and the Caucasus for The Wall Street Journal and The New York Times for 11 years. His first book, The Oil and the Glory, a history of the former Soviet Union through the lens of oil, was published in October 2007. Putin’s Labyrinth, his new book, profiles Russia through the lives and deaths of six Russians. The updated paperback was released in April 2009.



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    A Blog on Russia, Energy, the Caspian and
    Beyond

    Saturday, November 24, 2007

    Trouble in Tbilisi

    I've been exchanging messages with a friend in Tbilisi, the Georgian capital that until recently was the scene of bloody protests. He predicts political crisis almost regardless of what President Mikheil Saakashvili does.

    Remember that Georgia is the crucial crossing point of the East-West Caspian oil route.

    Why is there nothing for Saakashvili to do? I quote my American friend:

    "Poverty.
    GDP per capital here is $3,900.
    Russia's is $12,100.
    Azerbaijan's is $7,500.
    Armenia's is $5,500.
    Enough said."

    Saakashvili has done much in terms of curbing corruption and attracting foreign investment. But, in my friend's view, Russia's economic embargo has made it impossible to truly dent the country's post-Soviet poverty. "They've sunk to just above Tajikistan, Kyrgyzstan, Turkmenistan maybe, Moldova," he said.

    So Saakashvili's opposition is bound to be in the streets regardless of the results of the snap January presidential elections.

    Photo: Alexander Nitzsche
    Rights: Creative Commons

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    posted by Steve at

    2 Comments:

    Blogger Fred said...

    Sounds right. Does it mean that, unless the EU + Turkey are prepared take up the slack, Georgia needs to find a diplomatic solution to the conflict with Russia? Is (for instance) NATO membership really worth sacrificing the Russian market?

    November 24, 2007 2:14 PM  
    Anonymous Anonymous said...

    Nothing to add to the topic specifically, just wanted to say I'm damn glad to have found this blog.

    more on this later.
    Hammer

    November 24, 2007 6:17 PM  

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