The Impact of Labor Emigration on the Demographic and Economic Development of Georgia in the Post-Soviet Period

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.