Georgia, a country in the South Caucasus region, borders Russia, Turkey, Azerbaijan and Armenia. Major structural reforms mark its recent history since its independence from the Soviet Union in 1991. The country’s transition to a free-market economy allowed for persistent growth between 2010 and 2015 and a considerable reduction in poverty rates. However, being poor in Georgia means facing an uncertain future, the invasion of Ukraine and the impact of COVID-19, which are risks undermining the progress made by the country in recent years.

The government aims to reduce poverty despite harsh circumstances by combining targeted social assistance, fiscal policy measures and collaboration with the United Nations (U.N.) to eradicate extreme poverty as part of the 2030 Sustainable Development Goals (SDGs). Specific attention is paid to vulnerable population segments, such as women and children.

Poverty in Georgia

In 2022, Georgia’s poverty headcount ratio reached 15.6% of its population at the national poverty line, its lowest in history. As a middle-upper-income country, Georgia has made huge strides in reducing its poverty rate in recent years. The nation, however, faces some structural deficiencies. The World Bank reports that limited high-quality job creation persists. At the same time, a third of the population still relies on low-productivity agriculture for income.

Education in Georgia

Part of these structural issues stems from the state of education in Georgia. As a country, Georgia spends less than countries with similar Gross domestic product (GDP) on education. The United Nations Children’s Fund (UNICEF) pointed out that on top of low spending, bad resource allocation and low quality of teaching impair students’ ability to reach their full potential.

This is particularly true for students from rural and poor backgrounds, where completing upper secondary school is reported at 50% for rural students and 43% for students from poor backgrounds. Being poor in Georgia or from a rural area of the country means fewer chances of income growth through education. Thus, it is ostracizing already marginalized population segments from education-led social mobility.

Women and Poverty

Being poor in Georgia is not a condition equal across both sexes. Although poverty rates are similar among men and women, other sets of factors render women much more vulnerable to precarious situations. A U.N. report pointed out the large share of women who perform unpaid household work. About 49% of women cite unpaid care work as the principal reason for not having formal employment. This lack of revenue, specifically for poor women, exacerbates extreme risks of poverty as dependent upon the husband’s income.

Moreover, lack of formal work experience often leads to precarious job situations with a 14.7% hourly pay gap between men and women. In all, households headed by women are 20% more likely to face absolute poverty compared to male-headed households. This gender disparity also affects future generations; as the U.N. points out, children of poor households are more likely to remain in poverty; thus, gendered poverty undermines poverty reduction efforts.

SDGs 2030 and Georgia

Georgia, in 2015, committed to implementing the 2030 SDGs, setting 95 national targets to reach the 17 SDGs. Starting in 2015, Georgia identified its national strategy with the joint help of the U.N., producing numerous reports on the country’s growth and sectoral weaknesses. In particular, reports pointed out the prevalence of rural-to-urban income inequalities and the importance of social assistance to vulnerable population segments. These reports allowed targeted initiatives to accomplish SDG 1 on reducing extreme poverty.

For instance, in collaboration with the United Nations Development Programme (UNDP) and the European Union (EU), Georgia has implemented national strategies to render small to medium-sized businesses more sustainable and productive in rural areas. One of these success stories comes in the tea production area. The EU’s Innovative Action for Private Sector Competitiveness in Georgia, implemented with the help of the UNDP, has invested up to €5.7 million (approximately $6 million) in sustainable tea culture in the northern part of the country. This initiative has helped Georgian tea companies export to countries like Germany, growing income in rural parts of the country.

CARE International, an NGO working in Georgia

CARE International began its work in Georgia in 1992, supporting economic growth and civil society development amid the Soviet Union’s collapse. In 2008, CARE played a crucial role in supporting displaced persons as armed conflicts broke out in the region. The organization has since tailored its involvement to economic growth and implementing the 2030 SDGs in Georgia.

It emphasizes women’s empowerment in leadership and economic opportunities and support for rural households at risk of falling or already below the poverty line. CARE International has successfully reached 24,233 people, 57% of whom are women. The organization estimates its direct impact on implementing the 2030 SDGs since 2015 to have reached more than 100,000 people, reducing the likelihood of being poor in Georgia.

Looking Ahead

Georgia’s dedication to fighting poverty has shown encouraging results in the last decade. Although a range of structural issues related to education or women’s rights remain salient, the government’s commitment to improving the country’s population’s living standards sets it on the right track.

In December 2023, following an application to enter the EU, Georgia was granted candidate status, meaning the country meets the requirements and is eligible. This strengthening of EU relationships has prompted numerous cooperations in areas such as health care and economic partnership. With the ongoing process, Georgia’s decision to apply for EU membership is already bearing its fruits and helping eradicate extreme poverty.

– Felix Stephens
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