The most important problem that Georgia has is  a real lack of territorial integrity. The territories of South Ossetia and Abkhazia continue to stay out of the control of the central government, which makes them in reality self-governed entities. Since the Rose Revolution in Georgia, this country has been building a democratic system, trying to introduce numerous political reforms. Georgia also shows an interest in EU integration and in becoming a NATO member.

The difficult economic situation is related to restrictions on Georgian exports, which in turn has a negative influence on the political situation. Georgia is a country with a large percentage of population living below the poverty line. In a great majority they are refugees, victims of territorial conflicts.

Polish development assistance initiatives carried out in Georgia include:

• improving institutional performance at the central and local level (including technical support in the field of penitentiary system reforms, and support for parliament and police);
• planning and managing of economic development processes;
• reintegration into the civil society of former soldiers and employees dismissed from the ministries of interior, defence and justice;
• agriculture;
• environmental protection;
• energy security;

In 2006, Polish co-operation with Georgia included among others: support for civil society institutions, strengthening of the Euro-Atlantic integration, improving the functioning of local and central administration, providing technical support for penitentiary system reforms, and offering assistance in the field of agriculture and environmental protection.

In 2006, the following development projects, among others, were implemented in Georgia:

Agro-tourism at the Kists in the Pankisi Gorge

Development of tourism in Georgia contributes to greater economic development in this country. Pankisi, a region in north-eastern Georgia, due to its complicated economic and ethnic situation requires special assistance. A series of seminars and workshops on building and running agro-tourism hotels was provided, including information on how NGOs function and how to manage them. In addition, a workshop about methods of fundraising was conducted in Poland for representatives of Kists (an ethnic group living in the Pankisi Gorge) interested in commencing agro-tourism activity. During the training sessions participants became aware of the significance of their cultural heritage and the natural values of the Pankisi region.

During a study visit to Poland, 10 representatives of NGOs and local government from the city of Khashuri, familiarised themselves with the work of Polish local self-governments that have introduced norms of transparency and effectiveness in their service to the local community. The visit gave them a chance to elaborate basic guidelines of the communication system between the authorities of Khashuri and its population, including: a website, public service office, service sheets and a terminal with free access to the Internet. Subsequently, the partners consulted and monitored the implementation of the above mentioned solutions.

An improvement in management is necessary for a more efficient administration in Georgia. Local Economic Professional Association prepared for about 40 representatives of Georgian local self-government entities a Course on Strategic Management of Cities. This study visit, together with practical workshops, offered participants an opportunity to acquire knowledge about the instruments of strategic management used in some Polish cities (Borne Sulimowo, Bydgoszcz, Poznan, Solec Kujawski). At the end of the project a draft of a training syllabus was elaborated and workshops for coaches (alumni of the course) were organised, so that they can share their knowledge and experience with self-government representatives in Georgia.

In 2008, PLN 4.5 million was allocated for the development assistance provided to Georgia.