LOCAL ECONOMIC DEVELOPMENT PLAN FOR TBILISI ... - LED

Introduction
Tbilisi represents important industrial, social and cultural center of East Europe and
Caucasus region and, at the dawn of the millennium, is becoming one of the most
important transportation links for global energy carriers, information flows and trade
projects.
The construction of the Kars (Turkey)-Tbilisi-Baku (Azerbaijan) 826-kilometer railway will
probably be the most significant project in the entire Caucasus and could bring
tremendous economic dividends to the region and international economy. The railway line
has huge potential to deepen the integration of Turkey, Georgia and Azerbaijan, which, in
turn, will link them more closely with Europe and Asia.
In the Soviet era Tbilisi and Georgia were a part of centrally planned socialist economy.
Transportation system, cooperation networks, trade links were mainly developed within
internal Soviet market. And the country’s contacts with the rest of the world, including
transportation infrastructure, were led through the Soviet Union. Political reasons and
missing appropriate infrastructure not only stopped Georgia from the relations with
partners from outside the USSR but, due to the supremacy of central institutions, also
hindered bilateral contacts between the republics.
As a result of the political changes in the region transportation channels across Northern
Caucasus and Russia are closed.
Presently Georgia and Tbilisi are re-establishing their traditional central role on the route
from Asia to Europe. Not only does it require reconstructing economic and cultural links
but it is also vitally important to invest in transportation sector. Investments in the sea
harbours of Baku and Poti, the airport in Tbilisi and Baku, pipelines from Azerbaijan via
Tbilisi to Turkey, new road and railway connections from Tbilisi to Turkey and Baku will
integrate Georgia and Tbilisi into transit services and help rebuild natural cooperation
bonds.
By January 1, 2006, population of Tbilisi amounted to 1093 thousand, 15.2% of Tbilisi
population is ethnically non-Georgians. The major non-Georgian ethnic groups are
Armenians, Russians, Azeri and Sestinas.
Tbilisi represents multi-functional administrational, industrial and cultural-educational
centre of Georgia.
At the beginning of 2007 Tbilisi significantly expanded its territory incorporating suburban
areas. As a result, more housing and commercial land appeared on the market, which is
of key importance for the growth of Tbilisi metropolitan area.
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