Georgia is located on the southern side of the Caucasian Mountains between the Black and
Caspian seas in the South-Caucasian region. Most of the 70,000 sq. km area of the country is
mountainous. Georgia is bordered on the north and northeast by Russia, on the southeast by
Azerbaijan, on the south by Armenia and Turkey, and on the west by the Black Sea. In earlier
times, Georgia was an important part of "the Great Silk Road" and in many ways continues to be
a bridge between East and West. The people of Georgia have a long and rich cultural history.
Georgia was among the first countries to convert to Christianity (in 330 A.D). The Georgian
language, with its unique alphabet (one of the fourteen different alphabets in the world), is one of
the oldest living languages. The majority of the population (more than 80%) is constituted of
ethnic Georgians. The population estimate for Georgia was recently reported by population
census of 2002 to be 4.4 million inhabitants (not including Abkhazia and Tskhinvali region,
territories where Georgian authorities in fact do not extent.); slightly more than a half of the
Georgian population resides in urban areas.
Georgia declared its independence in April 1991. After the break-up up from the Soviet
Union Georgia entered a time of major socio-economic crisis associated with the transition from
the planned to market economy. Transformation of health system in the country started in 1994
and aimed at the decentralization of health care and the development of a health insurance
system. But in the conditions of global poverty of citizens and permanent deficit of State Budget
the health care reforms have had mixed results and health sector in Georgia has not received
adequate resources to provide basic standard of care. Within the context of the transition to a
market economy, the medical institutions are gradually switching over to self-financing. The
results have been a health care system that continues to crumble. Georgia, which has been
classified as falling within the lower group within the middle-income countries, shows public
expenditure levels on health care well bellow those seen in North Africa. On average, even lowincome
countries fare better.
At the national level, the health system is directed by the Ministry of Health (recently fused
with the Ministry of Social Affairs and Ministry of Labor into an unique Ministry), which sets the
budget for health care programs, coordinates services and is responsible for health policy. Local
health care is administered by local authorities and Ministry of Health through regional public
health services. Health services are provided through three types of health care facilities: a) a
primary health care network, represent by various ambulatories in rural areas and public
policlinics and women's consultation clinics in urban areas; b) a secondary health care network,
consisting of rural, central district, and municipal hospitals; and c) tertiary health care system
delivered specialized municipal and republican level hospitals, policlinics and research institutes.