Elene Gotsadze

PHD Candidate
Faculty of Humanities

Iv. Javakhishvili Tbilisi State University

Tbilisi, Georgia

Abstract

Since 1992, the U.S. Government has extended support to the twelve[1] newly independent states (NIS) that emerged after the dissolution of the Soviet Union, aiming to assist their transition toward market-oriented democratic systems. This aid aligns with broader U.S. policy objectives in the region such as promoting security, stability, and economic growth; building positive bilateral ties; and preventing the rise of future threats to American national security. The overall goal of this massive intervention was to address the grey area that arose following the collapse of the Soviet Union. Only in 1992-1996 the U.S. committed substantial resources to this mission, providing over $8.5 billion in grants and $12.9 billion[2] in financing mostly represented the humanitarian assistance to the countries with many existential problems.

In this article I will emphasize on the US support and its role to the newly independent state of Georgia and its crucial role during the transformation period.  U.S. assistance to Georgia from 1990–2020 served not only as humanitarian and development support but also as a key instrument of soft power diplomacy, shaping public perception, political alignment, and strategic partnerships.

The author describes the situation in Georgia in the 1990s, the nature of humanitarian assistance provided by the U.S. government, the mutual interests of the United States and Georgia in building cooperation, the mechanisms and programs involved, and the impact of this assistance. This publication will help scholars, researchers, and practitioners understand the scale of U.S. involvement in the humanitarian, social, and economic sectors of a newly established state, and envision what future development instruments the U.S. government may employ to serve its national interests while strengthening resilience in partner states.

Keywords: U.S.–Georgia relations; U.S; humanitarian diplomacy; Freedom Support Act; Silk Roa; USAID in Georgia; Millennium Challenge Corporation; defense and security cooperation; public health reform; Hepatitis C elimination program; Lugar Research Center.

Introduction

The last decade of the 20th century marked the logical conclusion of the competition between the great powers. On one hand, the dissolution of the Soviet Union was a result of the U.S. government’s consistent foreign and security policy and limited moral and physical resources of USSR; on the other hand, it brought turmoil, civil war, poverty, humanitarian crises, and overwhelming frustration to the territory of the former Soviet Union.

After the dissolution of the Soviet Union, the United States sought to turn a significant challenge into a strategic opportunity. The challenge lay in supporting the transformation of the newly independent states into market-based economies while preventing the emergence of future threats to national security of U.S. The opportunity and interest, however, was to cultivate allies and forge partnerships grounded in mutual respect and shared interests. At the core of this substantial investment, amounting to billions of dollars, was the pursuit of U.S. national interests and the advancement of its strategic priorities.

Interests for long-term reliable cooperation

U.S. interests in Georgia were driven by a pragmatic recognition of the country’s strategic importance. Following the collapse of the Soviet Union, the United States aimed to fill the geopolitical “gray area” in the South Caucasus by fostering a reliable partnership in a region that sits at the crossroads of major global interests. Bordering Russia to the north, Turkey to the west, Iran to the south, and situated along the Black Sea, Georgia made a vital link in the emerging East-West transit corridor known as the “Silk Road,” connecting the Caspian region to Europe.

For U.S. policymakers, Georgia’s role as a transit hub and buffer state was attractive both economically and geopolitically, particularly in countering Russian and Chinese influence and mitigating transnational threats such as organized crime and terrorism. Through sustained engagement and assistance, the U.S. supported Georgia’s democratic development, economic reforms, and civil society, while also enhancing the country’s defense and security systems. Overall, US  aid to Georgia served the dual purpose of advancing U.S. national interests and contributing to regional stability and democratic resilience.

From Georgia’s perspective, cooperation with the United States was vital to safeguarding its sovereignty and advancing national interests. The partnership aimed to secure support for Georgia’s territorial integrity, economic development, and aspirations for European and Euro-Atlantic integration, while also fostering U.S. goodwill, an alignment that positioned Georgia as a credible and influential actor in the region.

Following a period marked by a devastating civil war and two territorial conflicts, U.S. support represented a pivotal turning point and a vital source of hope for Georgia’s future development and stabilization. Through initiatives promoting democracy, strengthening political and economic institutions, enhancing people to people contact and cultural and educational ties, Georgia consistently benefited from U.S. irreversible support, both bilaterally and multilaterally. With American assistance, the country’s defense and security sectors were modernized with new tools, knowledge, and expertise, significantly enhancing its defense capabilities and achieving interoperability with NATO by 2010. Overall, U.S. assistance played a crucial role in shaping a stable, democratic, and resilient political and economic environment in Georgia, while also supporting the development of a strong civil society.

Georgia to the brink of collapse in 1990-ies

Before the collapse of the Soviet Union, Georgia was considered a moderately developed state, ranking 8th among Soviet republics in terms of Gross Domestic Product (GDP), with an economy valued at approximately $8 billion. However, after the Soviet Union dissolved, Georgia faced internal conflicts over territorial integrity, civil war, and an economic collapse that led to a 21% drop in GDP in 1991 alone. By 1992, Georgia was classified as a “failed state[3],” setting multiple negative records: GDP fell by 44%, inflation reached quadruple digits, and the country ranked first globally in the size of its shadow economy[4].

The severe crisis caused the collapse of Georgia’s socio-economic system. Citizens, trapped in extreme hardship, were unable to access essential medical care due to lack of funds and services. Government spending on healthcare dropped from $95.5 per capita in 1985 to $13 in 1990 and by 1994 it had fallen to just $0.9. As a result, demographic indicators deteriorated significantly: illness rates rose, birth rates fell and the incidence of socially dangerous diseases increased. Between 1990 and 1995, maternal mortality rose from 20.5 to 55.1 per 100,000 live births, while child mortality increased from 20.7 to 28.6.

If you ask to the mid-age Georgian, what Georgia was like in the 1990-s, the answer will likely be the same: no electricity, cities and villages in darkness, long lines for bread, no public transportation, gunshots at nights… The energy sector fell into critical condition during the 1990s. Prior to regaining independence, Georgia operated 45 hydropower plants (with an installed capacity of 2,893 MW) and 2 thermal power stations (with 380 MW). Electricity consumption peaked during the 1980s, but the collapse of the Soviet Union devastated the sector. Georgia’s electricity consumption dropped from a high of 17.4 billion kwh in 1990 to just 7.7 billion kwh in 2002, resulting in a severe energy crisis across the country[5].

According to International Monetary Fund, just three years after declaring independence, Georgia had become one of the world’s poorest countries. In 1991, the average annual income per capita was $5,550; by 1994, it had dropped by 61% to $2,466.

Georgia’s economic catastrophe in the 1990s was the result of numerous overlapping factors: civil war, conflicts over territorial integrity, widespread corruption and crime, lack of experience in governance and market economics, absence of functioning state institutions, hyperinflation, and an energy crisis. This combination brought the country to the brink of collapse. To offer a comparison, the socio-economic situation in Georgia in the early 1990s was comparable to that of Germany after World War II[6].

Early ears of cooperation: humanitarian diplomacy for   trust building operation

U.S. foreign assistance to Georgia began with a focus on humanitarian activities. Just a month after recognizing Georgia’s independence, on January 22, 1992, President George H. W. Bush at an international conference on aid to former Soviet republics announced that the United States would provide $600 million in technical and humanitarian assistance, including for Georgia. Two months later, on March 23, 1992, the U.S. allocated its first package of medical and humanitarian aid specifically for Georgia. This marked the initial engagement of the world’s most powerful nation with newly independent, impoverished, and at the time, a struggling state grappling with the characteristics of a failed state.

On April 23, 1992, diplomatic relations were established between Georgia and the United States. Just a month later, on May 25, U.S. Secretary of State James Baker paid an official visit to Georgia. This visit underscored Washington’s interest in the newly independent state and sent a clear message that Georgia was within the sphere of U.S. geopolitical interest. James Baker, along with other prominent figures, helped establish the Friends of Georgia organization, which played a crucial role in delivering humanitarian assistance to the country. Upon returning to the United States, Secretary Baker facilitated the first and urgent aid to Georgia: President George H. W. Bush sent 100,000 tons of wheat. For a country ravaged by civil war, where people queued for hours just to buy bread, this was invaluable support.

On May 4, 1992, two planes carrying medical supplies and three planes loaded with food aid arrived in Georgia. Shortly after, the U.S. allocated $4 million worth of humanitarian aid designated for “victims of conflicts in the Caucasus region.” The goal was to provide internally displaced persons (IDPs) with medical and other social support services.

In the early years of independence, Georgian citizens lacked access to essential medical services. Between 1991 and 1993, over 40,000 citizens in Georgia were insulin-dependent diabetics. The situation was particularly dire for more than 300 diabetic children under the age of 14. Due to the severe economic crisis, the state was unable to procure Insulin, which would have meant death for tens of thousands of people. To address this critical problem, Georgian head of state Eduard Shevardnadze personally contacted  to U.S. Secretary of State James Baker. The response was swift: on June 21, 1992, as part of a medical and humanitarian mission, Georgia received 194,000 vials of insulin and 500,000 syringes. Between 1992 and 1994, Georgia received nearly $15 million worth of Humulin Insulin from the United States, saving the lives of tens of thousands.

Total humanitarian assistance to Georgia from 1992 to 1996, as of September 30, 1996, amounted to $208.47 million:

  • In 1992 – 37.49 million
  • In 1993 – 58.83 million
  • In 1994 – 25.24 million
  • In 1995 – 44.64 million[7]

Following the establishment of diplomatic ties, the number of humanitarian missions by U.S. governmental and non-governmental organizations increased. The United States supported Georgia’s accession to international organizations, including the International Monetary Fund and the World Bank. In 1992, the United States Agency for International Development-USAID began operating in Georgia, primarily coordinating non-military international assistance.

The year 1995 marked the first fiscal year in the history of independent Georgia when the economy grew by 2.6%. That same year, the national currency, the Georgian Lari, was introduced; a new monetary policy was implemented, and for the first time a complete state budget was adopted. Hyperinflation dropped to 57% in 1995 and further declined to 7.2% by 1997. The exchange rate of the Georgian Lari remained stable against the U.S. Dollar. Between 1996 and 1997, Georgia’s exports increased by 57%. In 1997, the country attracted $243 million in foreign direct investment, compared to just $4 million in 1996.

The end of civil war and territorial conflicts, the introduction of a new monetary system, the establishment of state institutions, the formation of a centralized government, and strong international support undoubtfully led by the United States provided Georgia with an opportunity for development. In 1996–1997, the economy grew by an average of 10% annually, marking the first time in the history of independent Georgia that GDP recorded double-digit growth.

Humanitarian assistance marked the beginning of the U.S.-Georgia relationship. This initial stage can be described as a phase of humanitarian diplomacy, during which both sides built mutual trust and began to understand one another.

Main criteria for determining the amount of US assistance to the partner nation

When the United States government was deciding whether to provide aid to a former Soviet country, it had to consider not just how much that country needed help, but also how well the country was performing in key areas, such as:

  • Building a democracy
  • Respecting human rights
  • Creating a market-based economy
  • Following international laws
  • Promoting peace and environmental protection

In other words, aid wasn’t just based on need or will, it was also a reward for positive behavior in areas the U.S. valued. In this context, it is important to touch upon the Freedom Support Act (FSA)[8], enacted in 1992. It was a significant piece of U.S. legislation that aimed to assist the newly independent states (NIS) of the former Soviet Union after its dissolution. It was part of the broader U.S. foreign and security policy to support the transition of these countries towards democratic governance, free-market economies, and integration into the international community. FSA sought to help the NIS with political, economic, and humanitarian challenges in the aftermath of the Soviet Union’s collapse.

To analyze U.S. assistance to Georgia it is important to consider Section 201 of the Freedom Support Act, which amended the Foreign Assistance Act of 1961, specifically Section 498A. This amendment introduced a crucial requirement for the U.S. President when determining whether to provide aid to former Soviet states. Beyond assessing a country’s need for assistance, the President must evaluate its progress in areas such as democracy, human rights, economic reforms, and adherence to key principles like good governance and responsible international behavior. Therefore, U.S. aid decisions are not solely based on poverty or economic hardship, but also on the country’s commitment to democratic values and positive global conduct.

In the FY 1996 annual report on U.S. Government Assistance and Cooperative Activities with the New Independent States of the Former Soviet Union, prepared by the Office of the Coordinator of U.S. Assistance to the NIS, the U.S. Assistance Criteria for Georgia is outlined. According to Section 498A(a), U.S. aid eligibility is based on a country’s progress in key areas. Between 1992 and 1996, Georgia demonstrated notable improvements, including:

  1. Democratic Reform: Adopted a new constitution (1995), held presidential and parliamentary elections (except in two separatist regions), and committed to local elections.
  2. Economic Reform: Stabilized inflation, introduced a national currency, liberalized trade, and passed key financial laws. The IMF approved a $246M reform loan.
  3. Human Rights: Improvement in some areas, such as freedom of religion and emigration, though issues remain regarding prison conditions, press freedom, and due process.
  4. Peaceful Conflict Resolution: Committed to peaceful settlements in its breakaway regions Abkhazia and South Ossetia through UN and OSCE processes.
  5. International Obligations: Respected arms control treaties sought border control independence and did not engage in WMD proliferation.
  6. Environmental Policy: Established a Ministry of Environment, engaged in regional cooperation and empowered environmental NGOs.
  7. Counterterrorism: Did not support international terrorism and supported global counterterrorism efforts.
  8. Soviet Debt: Agreed to let Russia assume its share of the Soviet debt in return for its share of assets (“zero option”).
  9. POW/MIA[9] Cooperation: Committed to assisting U.S. efforts to investigate Cold War-era POW/MIA cases.
  10. Cuba Policy: Did not support Cuba’s communist regime[10].

The report also includes a checklist for grounds of ineligibility under section 498A(b) for Georgia:

  1. Human Rights Violations: The U.S. President has not determined that Georgia engages in gross human rights violations. While most rights are respected, issues with detainee treatment persist. The government has prosecuted offenders and is pursuing law enforcement reforms.
  2. Arms Control Obligations: Georgia has met its arms control responsibilities and has been a cooperative participant in arms control agreements, despite minor early challenges.
  3. WMD[11]-Related Transfers: No evidence exists that Georgia has knowingly transferred missile or WMD-related technology in violation of international norms.
  4. Legal Prohibitions: Georgia is not barred from receiving assistance under the relevant sections of the Foreign Assistance Act or chemical and biological weapons laws.
  5. Trade with Cuba: Georgia does not engage in nonmarket trade with the Cuban government or provide assistance to Cuba.

From Humanitarian diplomacy to the comprehensive aid package – full scale technical assistance


             As mutual trust grew in 1992-1996, both the scale and scope of U.S. aid expanded, prompting the need to institutionalize foreign assistance and establish a corresponding legal framework. On July 31, 1992, the first bilateral agreement between the Republic of Georgia and the United States was signed in Tbilisi to facilitate humanitarian and technical economic assistance. The agreement aimed to ensure the provision of such assistance to the Georgian people and regulated the following key areas:

  1. Tax and customs exemptions,
  2. Status of personnel,
  3. Inspection and audit procedures, and
  4. Use of assistance.

Cooperation between Georgia and the United States deepened further during President Bill Clinton’s presidency (1993–2001), when official memoranda were signed to strengthen U.S.-Georgia relations and bilateral trade. Starting in 1994, Georgia began implementing bold reforms. The United States offered a plan to help the country overcome its current crisis and implement financial and economic reforms. The plan included reducing government spending, abolishing inefficient state organizations, optimizing the state bureaucracy and budget, and introducing market economy principles. It was during this period that U.S. humanitarian aid transformed into technical assistance.

In FY 1996, U.S. Government assistance programs and cooperative activities conducted in the NIS, including in Georgia, supported three basic goals:  
1) to promote democratic institution-building, the rule of law and the establishment of a civil society;  
2) to help establish open and competitive market economies and expand opportunities for trade and investment;    
3) to enhance U.S., NIS and international security through cooperative threat reduction and nonproliferation efforts[12]. 

The annual report evaluated programs and activities made substantial progress towards these three goals in FY 1996. In FY 1996, the U.S. Government provided $121.2 million in assistance to Georgia, with $65.5 million (53%) allocated for technical assistance and $55.7 million (47%) for humanitarian aid. This included $42.34 million in privately donated humanitarian commodities, mainly medicines. Over the year, U.S. assistance shifted from humanitarian aid to development support, focusing more on democracy and governance programs to strengthen Georgia’s economic and political reforms.        
Political and Economic Overview: In FY 1996, Georgia made significant political and economic reforms. The government, led by President Eduard Shevardnadze, controlled inflation and reinforced the national currency, meeting IMF and World Bank targets. Progress was made in the court system and police organizations, with a focus on rule-of-law issues. Shevardnadze aimed to develop new leadership and make reforms irreversible. However, corruption remained a major problem and public confidence was low. While tax collection improved, citizens remained skeptical of government use of funds. Despite rescheduling a portion of its $1 billion foreign debt, Georgia’s poor credit rating hindered economic growth. On a positive note, international investment increased, with the Georgia Pipeline Company and U.S. agribusinesses expanding operations and several corporations planning to enter the market in 1997.

Eurasia Foundation: In FY 1996, the Eurasia Foundation’s grant program in Georgia concentrated on supporting local initiatives and NGOs working on democracy development, environmental concerns, and economic reforms, with a special emphasis on independent media. The Foundation’s thorough vetting process for grant proposals remained a benchmark for other grant programs in Georgia, making it one of the most effective methods for providing targeted assistance.

Democracy Programs: In FY 1996, U.S. democracy programs in Georgia included various exchanges and initiatives aimed at strengthening democratic institutions. The USIA (US Information Agency) sent Georgian officials to the U.S. for programs on civil-military relations, the legislative process, and democracy building. The Democracy Fund supported projects on law, media, and NGO development. The National Democratic Institute (NDI) played a vital role in monitoring elections and promoting political pluralism. The American Bar Association’s CEELI program helped strengthen Georgia’s legal system, while USAID-funded Internews trained, journalists and supported independent media. Internet access for parliamentarians and NGOs was expanded to enhance public participation. Additionally, the Center for Economic Policy and Reform (CEPAR) worked on improving Georgia’s economic framework and regulatory system, while a U.S. Treasury Department advisor assisted with budgeting processes. Training programs like the Institute for Public Administration (IPA) helped prepare Georgian professionals for public sector roles.

Energy Sector: In FY 1996, U.S. energy-sector reform programs in Georgia focused on improving the electric power and oil/gas sectors. USAID-supported Burns and Roe Enterprises provided technical assistance to Georgia’s electric power sector, helping secure a $60 million World Bank loan. USAID also assisted in drafting new laws for the electric sector, aiming for privatization and the creation of an independent regulatory body. In the oil and gas sector, USAID supported the establishment of the Georgia International Oil Company (GIOC) and facilitated key pipeline negotiations. USAID also provided legal and technical assistance to improve the GIOC’s operations and helped restructure Georgia’s oil and gas sector.

In humanitarian aid, USAID and the International Organization for Migration (IOM) worked to build Georgia’s capacity in refugee management and international aid coordination. Additionally, the USDA provided food assistance, including wheat to support the privatization of Georgia’s bread-making sector and implemented a fuel oil program to ensure energy supply to critical facilities.

Farmer to farmer programs: The USAID Farmer-to-Farmer Program, managed in Georgia by Agricultural Cooperative Development International (ACDI), sent 20 U.S. volunteers to Georgia in FY 1996 to share their agricultural expertise with Georgian counterparts.           

From Technical assistance to the Strategic Partnership

After decade of extremely close cooperation, In the 2000s Georgia emerged as the largest recipient of U.S. assistance per capita in the Eurasian region, a reflection of the significant support the country received from the United States during this period. This surge in assistance was largely driven by Georgia’s strategic geopolitical position, its role as a key partner in the U.S. efforts to promote stability and democracy in the post-Soviet space, and its alignment with Western values and goals.

Nevertheless, the September 11, 2001 Terrorist attack against the United States prompted renewed debate about the scope and priorities of the US interests globally. “The democracy promotion debate is centered around the idea that expanding democracy worldwide is somehow good for the United States. The best-known explanation for  why democratization is good for the United States is the theory of the democratic peace. This theory holds that no two democratic countries have ever gone to war with each other, therefore increasing the number of democratic countries would reduce the possibilities for war in different parts of the globe. After September 11, 2001 the democratic peace position was expanded so that building democracy was considered an important against terrorism,” – writes Linkoln A. Mitchell in his book “ Uncertain Democracy: US Foreign Policy and Georgia’s Rose Revolution” (pg. 22).

After the Rose Revolution in 2003, which brought pro-Western reforms and a commitment to democratic governance, the U.S. further increased its aid to Georgia to support political, economic, and military reforms. Assistance provided covered a wide range of sectors, including economic development, governance, rule of law, education, healthcare, infrastructure, agriculture, and military cooperation. This level of U.S. support was not only aimed at helping Georgia transition from a post-Soviet economy but also at strengthening its ties with the West, particularly with NATO and the European Union. The assistance was critical in Georgia’s efforts to modernize its economy, combat corruption and build democratic institutions, while also addressing the challenges posed by separatist regions like Abkhazia and South Ossetia, which remained sources of tension throughout the decade.

In addition to economic aid, military assistance played a key role in enhancing Georgia’s defense capabilities, particularly as the country became more involved in international peacekeeping missions, such as its participation in the U.S.-led coalition in Iraq. This partnership further deepened Georgia’s strategic relationship with the U.S. and solidified its position as a key U.S. ally in the Caucasus region.

Thus, Georgia’s status as the largest recipient of U.S. assistance per capita was a testament to the strong bilateral relationship between the two countries, underscoring the U.S. commitment to supporting Georgia’s democratic and economic reforms, as well as its aspirations to integrate more closely with Western institutions.

Following the 2008 Russia-Georgia war, the United States advanced its relationship with Georgia to a significantly higher level, formalizing a strategic partnership. On January 9, 2009, the U.S.-Georgia Strategic Partnership Charter was signed, founded on shared values and mutual interests. Given the complex political and economic context in Georgia prior to the agreement, this decision marked a pivotal moment in the nation’s foreign policy, reinforcing its strategic alignment with the United States[13].

The Charter became the principal framework for comprehensive and multifaceted cooperation between the two nations from 2009 to 2024. The areas of collaboration outlined in the Charter encompassed four key domains: democracy and governance; security and defense; economics, trade, and energy; and people-to-people relations and cultural exchanges.

The Charter’s provisions reflected the underlying principles of strategic cooperation, emphasizing the mutual support for Georgia’s sovereignty, independence, territorial integrity, and the inviolability of its borders. It also prioritized the promotion of democratic governance and stability in the region.

The agreement symbolized the United States’ steadfast and all-encompassing commitment to Georgia’s development and security. The designation of a “strategic partner” conferred on status that extended beyond traditional alliances, signifying a more profound and expansive framework for collaboration.

Despite the success of the Strategic Partnership Charter over the course of 15 years (2009-2024), the United States suspended its strategic partnership with Georgia in response to the decision by the “Georgian Dream” ruling party to cease the country’s EU accession process. This development marked a significant shift in the trajectory of U.S.-Georgia relations.

To achieve predefined objectives, the United States employs various mechanisms for delivering foreign assistance in partner countries. Since U.S. aid became a regular occurrence in Georgia, the primary agency responsible for implementing the programs was the United States Agency for International Development (USAID). Between 1992 and 2020, the U.S. provided $1.8 billion in assistance to Georgia through USAID, with annual aid amounts reaching $40 million. This assistance was directed towards improving both central and local governance systems, as well as supporting agriculture, infrastructure, energy, civil society, and media development. While USAID served as the main coordinator of American aid package, the United States also provided assistance through other agencies, including the Departments of Defense, Treasury, Education, Commerce, Agriculture, as well as the Millennium Challenge Corporation, the Peace Corps, and other organizations.

What outcomes has the continuous support of the United States yielded for Georgia over the course of 30 years?

The steadfast and consistent support of the United States has proven to be a pivotal factor in the context of Georgia’s fragile democracy and week state institutions to supporting Georgia’s territorial integrity and sovereignty. Through active diplomatic and material assistance, the United States played a key role in helping Georgia maintain its non-recognition policy in the face of Russian attempts to gain international recognition for the “independence” of the occupied regions of South Ossetia and Abkhazia.

In the domain of defense and security, U.S. support was indispensable for the development and strengthening of Georgia’s armed forces and fragile security apparatus. Over the span of three decades, U.S. assistance, including funding for institutional development, training, and the equipping of the Georgian armed forces, exceeded $2 billion. As a result of this sustained support, Georgia’s armed forces were able to enhance their operational readiness and adaptability to contemporary security challenges, a capacity that has been consistently demonstrated through their participation in international peacekeeping missions in Iraq and Afghanistan.

The United States also played a central role in fostering economic reforms and stimulating economic growth within Georgia. Presently, Georgia benefits from the U.S. Generalized System of Preferences (GSP), which permits the duty-free export of over 3,500 types of Georgian products to the U.S. market. The eligibility for this preferential treatment is contingent upon the product’s origin being Georgia, thereby providing a significant economic incentive for Georgia’s export sector.

In the health sector, the acute crisis of the early 1990s necessitated a comprehensive reform of the public health system. U.S. development assistance was instrumental in facilitating this transformation. With American support, Georgia embarked on a large-scale reorganization of its healthcare system aimed at establishing a modern public health infrastructure. U.S. assistance concentrated on a variety of areas, including the planning and implementation of primary and hospital healthcare reforms, the enhancement of medical education and the pharmaceutical sector, the upgrading of medical staff qualifications, the equipping of hospitals, and the addressing of critical infrastructural gaps.

Managing the COVID-19 pandemic in Georgia would have been virtually unfeasible without the Lugar Research Center for Public Health, which was established with U.S. funding and support. This facility, alongside the U.S.-backed National Center for Disease Control and Public Health (NCDC)[14], proved essential in Georgia’s pandemic response.

Additionally, the United States supported the highly impactful Hepatitis C elimination program, launched on April 21, 2015. This initiative, spearheaded by the Ministry of Internally Displaced Persons from the Occupied Territories, Labor, Health, and Social Affairs of Georgia, with support from the U.S. Centers for Disease Control and Prevention (CDC) and pharmaceutical company Gilead, had an estimated monetary value of $12-15 billion. The program benefited 80,000 individuals, with 57,000 individuals being fully cured. Through this initiative, the issue of Hepatitis C was effectively removed from Georgia’s public health agenda[15].

In terms of democratic development, the U.S. has long been a crucial partner in supporting civil society, promoting media freedom, and strengthening democratic institutions. This support was critical to Georgia’s democratic transformation. Moreover, U.S. assistance was invaluable in enhancing the public sector, as well as in the design and implementation of public administration reforms.

In the education sector, U.S. support contributed to the construction and renovation of schools, the retraining of teachers, and the implementation of various educational programs, including exchange programs. Additionally, U.S. assistance was pivotal in the restoration of cultural heritage sites, churches, and libraries.

According to a report by the U.S. Congressional Research Center (CRC), between 1992 and 2020, Georgia received a total of $4.35 billion in various forms of assistance from the United States. This amount makes Georgia the leading recipient of U.S. assistance among European and Eurasian countries. The American assistance program was comprehensive in nature, beginning with humanitarian aid and evolving into a multifaceted partnership focused on the full-scale reconstruction of the country. As a result, U.S. support has made substantial contributions to the development of nearly every sector of Georgian society.

Conclusion:

Following the recognition of Georgia’s sovereignty, U.S. support proved to be a decisive factor in the country’s development and state-building process. Over the course of three decades, bilateral cooperation was anchored in mutual understanding, shared democratic values, and strategic respect. According to the U.S. Congressional Research Service (CRS), from 1992 to 2025, Georgia received approximately $6.5 billion in assistance from the United States, making it one of the leading recipients of U.S. aid in Europe and Eurasia. What began as humanitarian assistance gradually transformed into a comprehensive and enduring strategic partnership, facilitating Georgia’s post-Soviet reconstruction and significantly contributing to the development of nearly all sectors, including governance, defense, economic reform, public health, and civil society.

Georgia’s accelerated transformation since 1995 can be directly attributed to the effectiveness of U.S. aid diplomacy. For thirty years, this assistance was not only continuous but also transformative. It is difficult to envision how a small nation situated at the crossroads of competing geopolitical interests could have endured and progressed without such unwavering support. A shift in U.S. foreign policy priorities, particularly the reduction or withdrawal of key development instruments such as USAID, poses a serious risk, not only to Georgia’s democratic resilience and statehood but also to the long-standing strategic relationship between the two nations.

Furthermore, in the context of ongoing information warfare aimed at discrediting Western values and undermining Euro-Atlantic orientation in Georgia, the withdrawal of U.S. assistance would likely have severe psychological and political repercussions. Such a development could be exploited by strategic adversaries, most notably Russia and, increasingly, China, to amplify anti-Western sentiment and erode public confidence in democratic institutions. The perception of abandonment by a long-standing and trusted partner may lead to widespread disillusionment, with the United States potentially being framed as an unreliable ally. The dissolution of this historically robust partnership would not only jeopardize the substantial progress achieved over the past three decades but could also create a strategic vacuum, swiftly filled by geopolitical adversaries such as Russia and China, potentially undermining both regional stability and U.S. interests in the South Caucasus.

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U.S. Embassy in Georgia. (n.d.). Center for Disease Control. https://ge.usembassy.gov/ka/center-for-disease-control-ka

[1] Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kirgizstan, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine, Uzbekistan

[2] US Government Assistance to and Cooperative Activities with the new Independent States, FY 1996 Annual Report, Office of the Coordinator of US Assistance to NIS

[3] A country in which, due to conflict, ineffective governance, or state collapse, the central government is unable to exercise effective control and provide essential services to a significant portion of its territory.

[4]  Economic history of independent Georgia: 32 years in numbers. https://bm.ge/news/damoukidebeli-saqartvelos-ekonomikuri-istoria–32-weli-ricxvebshi/134939

[5]Review of Georgia’s energy sector, Economic Governance Program of USAID, 2023 წ.
https://eprc.ge/wp-content/uploads/2023/12/sakharthvelos-energetikisa-da-energodamokidebulebis-mimokhilva.pdf

[6] Economic history of independent Georgia, Beso Namchavidze https://forbes.ge/damoukidebeli-saqarthvel/

[7] US Government Assistance to and Cooperative Activities with the new Independent States, FY 1996 Annual Report, Office of the Coordinator of US Assistance to NIS

[8] US Government Assistance to and Cooperative Activities with the new Independent States, FY 1996 Annual Report, Office of the Coordinator of US Assistance to NIS

[9] Prisoners of War and Missing in Action

[10] US Government Assistance to and Cooperative Activities with the new Independent States, FY 1996 Annual Report, Office of the Coordinator of US Assistance to NIS

[11] Weapon of Mass Destruction

[12] US Government Assistance to and Cooperative Activities with the new Independent States, FY 1996 Annual Report, Office of the Coordinator of US Assistance to NIS

[13] U.S. Relations With Georgia – United States Department of State 
სტრატეგიული პარტნიორობის ქარტია  https://mfa.gov.ge/bilateral-relations/en

[14] https://ge.usembassy.gov/ka/center-for-disease-control-ka/

[15] https://test.ncdc.ge/Handlers/GetFile.ashx?ID=1f84e4b1-0c82-4e4e-b425-efb98a94b389

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