Losing the Ukraine market

The opposition blames President Saakashvili for the disastrous war last August and says he cannot lead Georgia forward because of his antagonistic relationship with Moscow.

Mr Saakashvili, meanwhile, has vowed to serve out his term, which ends in 2013.

The protest was held on 9 April, the 20th anniversary of a deadly anti-Soviet demonstration that galvanised Georgia’s fight for self-determination and led to Georgia declaring its independence two years later.

It was widely believed that the President’s forces would clamp down on the protesters. Fears that civil war would break out again were widespread. That is why work at building sites had come to a standstill – despite a government stimulus package for the construction industry.

Contrary to circumstantial evidence, the International Monetary Fund still believes that the Georgian economy will grow 4 percent this year, having grown 3.5 percent in 2008.

To meet that target, Prime Minister Nika Gilauri launched a USD 1.2 billion stimulus package in January 2009 that emphasises job creation and social welfare protection over defence spending.

One of the stimulus plan’s top priorities is shoring up the ailing construction sector. Accordingly, the government is aiming to create up to 30,000 new jobs by carrying out a variety of infrastructure projects.

Georgian vintners still wait to see evidence of the so-called trickle down effect.