Opinion: 'If Georgia faces international isolation, middle class will leave, and handful of elites will become even wealthier'
Georgian economist warns of possible isolation
Former head of the National Bank of Georgia, Giorgi Kadagidze, stated on Palitra News that if the country faces international isolation, the middle class will leave, and a handful of elites will become even wealthier.
According to him, international partners do not want sanctions to affect the country as a whole or harm ordinary people.
Giorgi Kadagidze:
“Overall, for our international partners—the US and others—it would be much simpler to bankrupt all of Georgia. From an administrative standpoint, that would be far easier than imposing individual sanctions. But they don’t do that. All their statements begin with the words, ‘We support the Georgian people’s aspiration toward a Euro-Atlantic course.’
International partners do not want sanctions against the country. They aim to minimize harm to ordinary people so that the effects of sanctions are minimal for them, while the group responsible for torture and human rights violations is directly punished and held accountable.
Some may think the sanctions are being implemented too slowly. However, dozens of individuals have already been sanctioned, and partner countries are acting very cautiously to avoid impacting the entire sector.
There are only three banks—two American and one European—through which Georgia is connected to the global financial system. If these three banks issued a directive or made a joint statement, saying, ‘Reclassify Georgia as a high-risk zone,’ then currency transactions would stop the very next day, internet subscriptions would be blocked, and transactions would take weeks. Ultimately, this would affect the country’s economic turnover, economic activity, and consequently, the incomes and livelihoods of its residents.”
“If anything separates Georgia from total autocracy today, it is critical media. If anything distinguishes us from backward dictatorships today, it is that people, thanks to critical media, understand what is happening, where, and how. At the same time, all critical media are facing financial difficulties [due to the adoption of the ‘foreign agent’ law],” says Giorgi Kadagidze.
He believes that Georgia’s two largest banks—TBC and Bank of Georgia—should support critical media in this challenging situation.
Kadagidze is convinced that the only way to resolve the current political crisis is through new parliamentary elections:
“This is the only de-escalation mechanism for modern Europe and the modern world. It is a method proven by the civilized world to prevent a deep political crisis from escalating into an economic collapse, which could be in store for us.”
Georgian economist warns of possible isolation
