The impact of labor emigration on the demographic and economic development of Georgia in the post-Soviet period

Type Report
Title The impact of labor emigration on the demographic and economic development of Georgia in the post-Soviet period
Author(s)
Publication (Day/Month/Year) 2012
Publisher CARIM-East
URL http://cadmus.eui.eu/bitstream/handle/1814/24872/CARIM-East_RR-2012-29.pdf?sequence=1&isAllowed=y
Abstract
The deep economic, political, social and cultural crisis faced by Georgia in the post-Soviet period
negatively affected the territorial mobility of the population. A catastrophic reduction in the
resources required for demographic growth led to sub-replacement fertility. At this point, emigration
processes of extremely unnatural intensity, including labour migration, became of the greatest
importance. The authors stipulate that a reduction in the negative impact of labor migration on the
demographic situation will result in a switch from sub-replacement to replacement level fertility. In
the post-Soviet period the Georgian economy collapsed, standards of living deteriorated and many
people went to work abroad. Despite the numerous difficulties associated with emigration, its
impact on the economy of Georgia was multilateral. Remittances sent by labour migrants to their
home country are an important source of poverty reduction for Georgia. Their impact on small
business development is positive. In Georgia, the unemployment rate has fallen and there have been
positive structural changes in the balance of labour demand and supply. As discussed in the present
paper, the harmonization of economic and migration policy includes many important reforms,
including the facilitation of the migrants’ return.

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