Wage Differences Across the Republic of Georgia

The GeoStat data page on the Republic of Georgia includes information on the Average Monthly Remuneration in Business Sector by municipality. As Georgia is divided into many municipalities, mapping these data helps reveal the level of economic differentiation across the country (assuming that the data are accurate). As the resulting map shows, income levels in the business sector vary widely across Georgia, with a low of 301 Georgian Lari a month in Shuakhevi in the southwest to a high of 1,814 Lari a month in Bolnisi in the south-center-east. (The current exchange rate is 2.56 Lari to a US dollar).

 

Overall, the geographical patterns found on this map are vague, with high-, middle-, and low-income municipalities scattered across most reaches of the country. But some patterns can be discerned. The area in and around Tbilisi, Georgia’s capital and by far its largest city, is a relatively high-income area, as would be expected. The Black Sea cities of Batumi and Poti also have relatively high levels of (business) income, the former noted for its tourism-based econony and the latter for its port facilities. But Georgia’s other main urban-focused municipalities (Kutaisi, Rustavi, Gori, and Zugdidi) do not rank high. To some extent, this low showing reflects the industrial decline of the post-Soviet period. As the Wikipedia articles on Kutaisi and Rustavi explain:

Kutaisi was a major industrial center before Georgia’s independence on 9 April 1991. Independence was followed by the economic collapse of the country, and, as a result, many inhabitants of Kutaisi have had to work abroad. Small-scale trade prevails among the rest of the population.

The fall of the Soviet Union in 1991 proved disastrous for Rustavi, as it also caused the collapse of the integrated Soviet economy of which the city was a key part. Most of its industrial plants were shut down and 65% of the city’s population became unemployed, with the attendant social problems of high crime and acute poverty that such a situation brings.

In contrast, several primarily rural municipalities have relatively high rankings. Sitting at the top is Bolnisi, an ethnically distinctive area. Its population is primarily Azerbaijani speaking (63%). Its capital, also called Bolnisi, has an unusual ethnic history. Home around 10,000 people, Bolnisi city was established by German (Swabian) immigrants in 1818, who called their new town Yekaterinenfeld. These migrants developed the agrarian and agro-industrial infrastructure of the region, which may contribute to its current prosperity – along with gold mining. As explained in the Wikipedia article:

The main occupations of the colonist Germans were viticulture, horticulture, fruit growing and cattle breeding. At the same time, irrigation, underground drainage and irrigation canals were constructed in Yekaterinenfeld, as well as wine, cognac and cheese factories, and leather and furniture factories. The town’s contemporary economy is mostly agrarian with the notable exceptions of a winery, brewery, and a gold mine in the nearby village of Kazreti.

Several other primarily rural municipalities with relatively levels of business income have strong tourism sectors. These include Mestia in the mountainous northwest, famed for both its natural beauty and its unique architecture. As the Wikipedia article on the town of Mestia notes:

Despite its small size, the townlet was an important centre of Georgian culture for centuries and contains a number of medieval monuments, such as churches and forts, included in a list of UNESCO World Heritage Sites. The townlet is dominated by stone defensive towers of a type seen in Ushguli and Mestia proper (“Svan towers”). A typical Svan fortified dwelling consisted of a tower, an adjacent house (machubi) and some other household structures encircled by a defensive wall.

Kvareli, a high-income municipality in Georgia’s mountainous northeast, also has a number of tourism attractions, and is noted for its wine production. In west-central Georgia, high-income Kharagauli is the gateway to Borjomi-Kharagauli National Park. Nearby Zestafoni, another relatively high-income municipality, is another important wine-producing area, and is also the site of a large ferro-alloy plant that processes manganese ore. The ore is mined in adjacent Chiatura municipality, which also posts relatively high business-income figures.

These are obviously just preliminary observations, based on casual reading. Much more research would have to be conducted to make any conclusive statements. I was also unable to find any possible reasons for the low levels of business income in such municipalities as Vani and Shuakhevi.

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