Geo-Economic Landscape of the South Caucasus

Thumbnail Image
Journal Title
Journal ISSN
Volume Title
Ivane Javakhishvili Tbilisi state university, Faculty of social and political sciences
The South Caucasus is a prominent region in the global economic system. Its economic potential suggests, that in the world economy system the region will not be a passive consumer at all, but it can contribute to the world economy and the world scientific production potential. This is largely dependent on how its geo-economic landscape will be formed. The purpose of the study is to analyze the actors who influence the formation of the geo-economic landscape of the region. The study is designed to answer two basic questions: 1. What is the geo-economic landscape in the South Caucasus? and 2. Which areas are the most vulnerable in this regard. The work relates to qualitative research. The main methods used, were the Case-Study method, the cartographic and comparative analysis methods. For the analysis of the geo-economic landscape, appropriate indicators were selected. Geo-economics is a unique foreign economic strategy of the state, aimed at achieving specific geopolitical goals of the state. Based on the marked for geoeconomic analysis of the South Caucasus countries (SCC), the following indicators were selected: Participation in global trade; Perception of corruption;Global competitiveness; Foreign direct investment; Economic freedom; The level of education; Innovation; IT development; Militarization of GDP%; Knowledge economy index; Control corruption; Quality management; Foreign trade balance. A separate analysis was conducted to assess the geo-economic activity of governments. For this purpose, a total management quality indicator was used, which includes: Taking into account public opinion and accountability of state bodies; Political stability and lack of violence; Government performance;Quality of legislation; Law supremacy. The formation of an optimal geo-economic landscape of the region is complicated by the fact that the geographical location has taken the SCC hostage to the global geopolitical project of its northern neighbor and not only. The Caucasian factor in the modern system of international relations will long remain in the forefront politically and military-strategically, but only secondary to the economic. And this means that the era of future economic prosperity is an even more remote perspective for the peoples of the region. In the process of the study, problems were found to restrain the geo- economic activity of the region. In particular: Small size of the domestic market SCC; Lack of priorities in the conduct of foreign economic policy; Difficulties associated with the implementation of export products (the emergence of a competitor, the replacement of technology, market saturation); Insufficient development of modern technologies for the production of industrial products; Political instability; Low geo-economic activity of governments, often due to lack of experience; The instability of foreign markets; High level of capital dependence on exports. However, these problems had a different impact on the foreign economic policy of the SCC, who have their own legitimate national benchmarks of external interests. The uniqueness of the economic market of the South Caucasus and economic pragmatism can be considered as the initial model for the formation of the future common geo-economic space. Therefore, the main geo-economic task of the SСC government, in the relations of its neighbors, along with transcontinental economic projects, should be to stimulate business, to encourage trade and business activity. The author has no illusions that the formation of such a space will occur in the near future. However, in the era of globalization of the world economy, processes accelerated, which does not exclude the development of events according to the specified scenario.
South Caucasus, geo-economic landscape, government effectiveness, the quality of governance, European integration, Eurasian Union, სამხრეთ კავკასია, გეოეკონომიკური ლანდშაფტი, მთავრობის ეფექტიანობა, მართვის ხარისხი, ევროინტეგრაცია, ევრაზიული კავშირი