On the First-Generation Post-Communist Reforms of Georgia's Economy: A Retrospective Analysis

Abstract

This article reviews the first-generation post-Communist reforms of Georgia’s economy. It points out the mistakes made during the reform of post-Communist Georgia’s economy and identifies the reasons for the failure of Shock Therapy in post-Communist Georgia based on an analysis of the successful economic reforms carried out in Poland. It focuses special attention on how the mistakes were corrected, thus leading to the Minimum Shock with Maximum Therapy program that proved favorable for Georgia’s economy.

Keywords: post-Communist reforms, Georgia's economy, minimum shock with maximum therapy program

JEL Classification: P21, P24, P26, P26, P26