Georgia’s Likely PM: Territorial Integrity is Top Priority

In one of his first interviews with a foreign correspondent since his nomination as Georgia's new prime minister, Zurab Noghaideli vowed that the country's economic reforms would not be derailed by the unexpected death of former premier Zurab Zhvania. Noghaideli went on to say that promoting Georgia's territorial integrity would be "priority number one" of his government.

President Mikheil Saakashvili nominated Noghaideli, currently Georgia's finance minister, on February 8, five days after Zhvania died in an apparent case of accidental carbon-monoxide poisoning. [For background see the Eurasia Insight archive]. Parliamentary confirmation is virtually assured as pro-presidential MPs enjoy a solid majority.

Noghaideli described Zhvania as a friend and the political mentor to the generation now in charge of Georgia's government, including Saakashvili. Zhvania "had a wide horizon of ideas and abilities," he said. He insisted, however, that the former prime minister's sudden departure would not cause serious damage to economic reforms.

"There is no need [for reform changes]," Noghaideli said. "We have already started strategic planning, looking at a five-to-six month horizon. The process will continue."

The Saakashvili administration -- which came to power in January 2004, following the demise of former President Eduard Shevardnadze's administration during the Rose Revolution in late 2003 – has established a "solid foundation" for economic political reforms, Noghaideli maintained. He indicated that in 2005, the government would seek to strengthen the country's political and economic institutions, so it would be in better position to withstand unforeseen developments, such as Zhvania's death.

“You cannot rely on one individual. We need to install institutions in order to avoid risks,” Noghaideli said. “Zhvania’s death was critical in this regard. ... We should not make the country dependent on individuals.”

In the weeks prior to Zhvania's death, "we discussed [economic reform] issues that we never had before: we strategized, which we could not do before," Noghaideli said. "This solid basis will help me a great deal."

The most pressing need for Georgia is to re-establish the Saakashvili administration's authority in the country's two separatist territories – Abkhazia and South Ossetia, Noghaideli said. [For additional information see the Eurasia Insight archive]. "It is the most important mission of any government in Georgia," he said.

In early 2004, the Georgian government recorded a significant political triumph by restoring its control over another recalcitrant region – Ajaria. [For background see the Eurasia Insight archive]. Both Abkhazia and South Ossetia have offered stiffer resistance to Tbilisi, which has employed both carrots and sticks in its recent reintegration efforts. [For additional information see the Eurasia Insight archive]. Noghaideli indicated that Georgian government policy was being driven by a sense of urgency. At the same time, he said Georgia would shun the use of force to achieve its main political goal.

"We can't sit back and wait for God to put fruit in our hands, and we won't waste time," he said. "We need to remove risks and put our country back in place. We see territorial integrity as a peaceful process and our policy is peace."

Abkhazia's and South Ossetia's separatist ambitions depend heavily on Russia. [For additional information see the Eurasia Insight archive]. Noghaideli indicated that Zhvania's activities had helped ease tension in the often acrimonious Georgian-Russian bilateral relationship. He suggested, though, that ties remained strained. “The picture is more promising now, but unfortunately there has been no political breakthrough, he said.

Noghaideli said his most significant achievement as finance minister in Saakashvili's cabinet was improving the state's revenue collection ability. "We had a significant breakthrough in this regard," he said. "We addressed smuggling, tax evasion and fiscal discipline." He said the state budget in 2004 ended with a "2.5 percent of GDP" surplus.