Georgia The Underground Economy

Georgia Country Studies index

Georgia - The Underground Economy

The underground economy

Economic statistics for Georgia are difficult to evaluate for both the Soviet era and the post-Soviet period, primarily because of the country's large underground economy. Traditional Georgian familial and clan relations have intensified the economic corruption that infused the entire communist system. Local elites in the communist party joined with underground speculators and entrepreneurs to form an economic mafia. Repeated efforts to eradicate this phenomenon, including an aggressive effort by Shevardnadze in the early 1970s, apparently had little impact. In the postcommunist period, struggles for economic control among competing mafias have been an important part of the political conflict plaguing Georgia.

You can read more regarding this subject on the following websites:

Economic Issues No. 30 -- Hiding in the Shadows : The
Where The World's Shadow Economies Are Firmly - Forbes
How To Prosper In The Underground Economy PDF Download
Estimating the Size and Structure of the Underground

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