Challenges of oligarchic rule in Georgia

Abstract

This article discusses the phenomenon of oligarchic rule; examines and analyzes the causes and characteristics of oligarchic governance in Georgia, the correlation between informal governance and kleptocratic rule, the rise of billionaire businessman Bidzina Ivanishvili, founder of Georgia's ruling party "Georgian Dream," within the country's power structure, as well as the stages and priorities of his subsequent activities. It also addresses the European Parliament's resolution and Transparency International's reports, which identify Bidzina Ivanishvili as the country's sole oligarch with a destructive role in Georgia's politics and economy, the European Commission's report on the "de-oligarchization law," and the response of the ruling party and Bidzina Ivanishvili to these recommendations. In modern Georgia, the main barriers to effective governance traditionally include elite corruption and "state capture." Moreover, while informal governance was previously considered mainly a domestic issue, since 2022, it has gained an international dimension. Georgia’s accession to the European Union now depends, among other factors, on overcoming oligarchic rule. Therefore, in the current political context, only the systematic and in-depth reforms based on the recommendations of the European Commission can facilitate the transformation of oligarchs into ordinary economic players, the "deoligarchization" of the state, and the stability of Georgia’s European course and uninterrupted progress in the EU integration process. The implementation of these processes will only be possible through the deep involvement of the international community and the protection of the Georgian people's votes and will in the 2024 parliamentary elections. At the same time, Georgia's illegitimate government is completely isolated from the free world. Its leaders are not invited to any European countries and cannot participate in any significant international meetings. Additionally, the process of sanctioning regime officials has already begun in certain countries. However, collective EU sanctions against them are being opposed by Hungary and Slovakia, as they traditionally stand against such measures.