Georgia

Economy:
Over 2.5 million people in Georgia (54 percent of the population) live below the poverty line. Nearly 600,000 are unemployed. Agriculture (particularly the raising of grapes, citrus fruits, and hazelnuts) employs 40 percent of the labor force. Some 20 percent work in manufacturing and mining and 40 percent work in services.

Two civil conflicts in the breakaway regions of Abkhazia and South Ossetia have complicated efforts at market reforms and democratization since independence from the USSR in 1991. 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 and tensions between Georgia and Russia periodically erupt into conflict.

Climate for microfinance:
• The government has pledged to work with FINCA and other MFIs on policies affecting small businesses, since the disastrous decision by the Tbilisi city government in 2004 to close all street-traders in the capital city.
• Small-scale trade and production activities are very important to the Georgian economy, especially in rural areas, because the economy and the formal employment sector do not create sufficient jobs.

FINCA's Georgia program is a testament to our commitment to serving the poor in conflict zones and some of the most desperate places on Earth.

FINCA operates from 22 locations nationwide, providing financial services to poor entrepreneurs even in rural areas, where poverty and the need for working capital are greatest.

Some 10-15 percent of FINCA's clients are internally displaced persons dislocated during the wars in Abkhzaia and South Ossetia. Many have opened small businesses to make a living.