Market Liberalization and Georgia’s De Facto Industrial Policy

Abstract Since independence, Georgia’s government has been implementing reforms seeking to eradicate corruption and attain market liberalization. It has not officially deployed an industrial policy promoting specific sectors. In recognizing unsuccessful economic performances, the government has been pursuing de facto industrial policy since the mid-2010s. This article explains Georgia’s economic development strategy, which can be characterized as pursuing pro-market reform, liberalization, and lacking an official industrial policy. This study then explains the consequent economic performances by analyzing each major sector. Finally, this article presents the policy implications derived from Georgia’s experience of market liberalization.