For Tbilisi's part, Shevardnadze sees the advantages of entering the global market and privatizing fully - essentially Georgian sovereignty - yet pockets of instability, such as the pro-Russian, separatist areas of Abkhzia and South Ossetia near the northern border with Russia, help dissuade investors and organizations such as the World Bank and International Monetary Fund. A weaker Georgian economy strengthens Russia's standing in the region.

Shevardnadze needs the Westernizing influence to split himself further from Russia and to make the idea of Russian troops stepping foot on Georgian soil completely unacceptable. The more Western money there is in Georgia, the more difficult it will be for Russia to do this. So, an economic Cold War of sorts is now being played out in the region as the U.S. and Russia obliquely, and not so obliquely, compete with one another for the right to develop the former Soviet republics centered on, at least for now, Georgia.

Matthew Riemer drafted this report.

[The Power and Interest News Report (PINR) is an analysis-based publication that seeks to, as objectively as possible, provide insight into various conflicts, regions and points of interest around the globe. PINR approaches a subject based upon the powers and interests involved, leaving the moral judgments to the reader. PINR seeks to inform rather than persuade; it is currently a project of YellowTimes.org. This report may be reproduced, reprinted or broadcast provided that any such reproduction identifies the original source, http://www.YellowTimes.org

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