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Author : A. Frolov
Senior research associate, Ye.M. Primakov Institute of World Economy and International Relations, Russian
Academy of Sciences
THE COLLAPSE of the socialist world late in the 20th century and
the redivision of its territory resulted in the emergence of new inde-
pendent states, some of which are generally recognized while others
are labeled self-proclaimed. But no matter how a new state finds its
way onto the map, there will have been deep historical and cultural
reasons for its coming into being. One of the new states is Abkhazia.
We were dropped off right opposite the hotel where we were booked
in. Abkhazia's hotel industry has fallen into decay after the collapse of
the Soviet Union. There are a lot of ruined buildings, particularly east
of Sukhum, and hotels that have survived aren't being modernized.
It is in Russia's interest to help Abkhazia cease to be a region living on subsidies, get back to its
feet, and become a self-sufficient country that is stable politically and economically without losing
any of its cultural identity.
Apparently because Abkhazia's population is so small, the republic's elite is very considerate,
and this manifests itself in the local political culture. Abkhaz politicians behave in an extremely
civilized way and never use brutal measures against their rivals, which is more than can be said
for the rest of former Soviet lands. Moreover, they usually have some degree of kinship with
one another.
Abkhazia has its own literature, but Russian literature, and Russian art and culture in general, are
venerated as if they were part of the republic's own heritage.
Russians are treated well - they are guests, and they bring an income.
THE COLLAPSE of the Soviet Union was a disaster for Abkhazia. The republic had its own
niche in the Soviet economy. The Soviet Union's collapse effectively put Abkhazia in economic
isolation. Nobody was buying its citruses, and even its wine industry went to the wall.
Abkhazia's budget is subsidized by Russia, but is scantier in per capita terms than its Russian
counterpart.
Obviously, one can't live on that, and people do whatever they can to make some more money,
which includes renting out rooms to vacationers. The tax collection system is inefficient.
What does Abkhazia need above all? A simple answer suggests itself: It needs competent econ-
omists who can think in modern financial and economic terms and suggest a policy that would
enable the Abkhaz economy to meet international standards. And, of course, the republic also
needs a system of training business personnel who know how to use innovative technology and
can work during crises and force majeure circumstances. If Abkhazia doesn't modernize its econ-
omy and make an economic breakthrough, its future will be less than brilliant.
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Abkhazia: A Zone of Alienation or a Zone of Growth?