Georgia’s Macroeconomic Situation Before and After the Rose Revolution

The fall of 2003 appeared to be a turning point in the history of independent Georgia: during November 22--23, Georgia witnessed a Rose Revolution. This event was caused by the harmful social consequences of a number of negative factors, including economic ones. Relatively high level of corruption in the Georgian government stalled reforms in almost all spheres of public life, leading inter alia to serious macroeconomic problems. This article demonstrates that the main macroeconomic component of the Rose Revolution (late fall of 2003) was the budget crisis. The postrevolutionary government is wishes to show the people positive outcomes of the revolution as soon as possible, but this will not be easy to achieve in the face of ongoing imperfect tax legislation--the background of the budget crisis.