US Dedicates Over USD 80 MLN Annually To Support Georgia’s Democratic, Free-Market, Western Orientation - USAID Georgia

Konstantine Kobakhidze, Agriculture Project Management Specialist at USAID Georgia said, USAID began operating in Georgia in 1992. For over 30 years, the American people have provided over USD 1.8 billion in assistance to Georgia through USAID. Building on this successful partnership, the U.S. Government dedicates approximately USD80 million annually to 35 + wide-reaching programs that support Georgia’s democratic, free-market, Western orientation. Konstantine Kobakhidze talked about this while visiting TV-Program Frobes Week.

According to Kobakhidze,USAID supports agriculture because it is the primary source of income for the majority of rural Georgians. Agriculture, particularly export oriented crops, remains an important contributor to Georgia’s GDP. The sector also provides an important safety net for the over 40% of Georgia’s population that live in rural areas. Commercial farming remains underdeveloped in Georgia. Despite agriculture’s large share of employment, Georgia’s fertile soil, and favorable climatic conditions, modern, high-value agriculture has yet to reach its potential contributions to Georgia’s post-independence economic growth.

"Agricultural commodities account for three out of the four biggest exports to Russia. Over 70% of Georgia’s fresh produce and 60% of wine are exported to Russia, making the agricultural sector highly dependent on Russia. Conversely, Georgia remains heavily reliant on imports from Russia and neighboring countries. In 2021, 52.5 percent of total imports came from just three countries: Russia, Ukraine, and Turkey. Georgia’s agricultural sector is a frequent target of politically motivated embargoes by Russia.

This history of economic dependence and retaliation has made export diversification a high priority for the Georgian government. The country has made some progress, with great emphasis placed on finding new markets for wine and other fresh products. Nevertheless, agricultural markets have yet to develop broad resilience to shocks in trade with Russia. Coupled with lingering effects from the COVID-19 pandemic, Russia’s invasion of Ukraine has increased inflationary pressures on the economy, which are highly visible in increased food costs", - he noted.

USAID funds more than 35 + programs to protect Georgia's information space from misinformation, promote a democracy that protects the hard-fought rights of all of Georgia’s people through enhanced citizen responsive governance, and create prosperity and jobs for Georgia’s people so they can best support their families.

Initiatives stimulate economic growth, develop democratic institutions, enhance energy security, mitigate climate change, improve education, and foster the increased inclusion of minority and disadvantaged people in Georgia, including those living across ethnic and geographic boundaries. These goals are especially important given Georgia's strengthening relationship with the European Union (EU) following the 2014 Association Agreement.