At a forum with businesspeople, Saakashvili vowed to facilitate free trade between Georgia and Turkey so that Georgian manufacturers could sell their wares in Turkey and Turkish construction companies could take advantage of the construction boom in Georgia. Saakashvili has repeatedly looked to his neighbors - Turkey and, at times, even Russia - to help increase Georgia's presence in foreign markets.



On November 21, 2007, Georgia and Turkey signed a free trade agreement. In 2006, Turkey represented over 10% of Georgia's total investment. Georgia has also sought to improve trade with other countries, especial western markets now that the Russian market is closed to Georgian exporters. No free trade agreement has been reached between Georgia and the European Union, although Prime Minister Lado Gurgenidze promised progress in negotiations in 2008. The government announced in December 2007 that a new free trade zone would be created in the port of Poti; according to a new law passed in 2007, Georgia can create as many as three free trade zones: the port of Batumi as well as Tbilisi International Airport are also likely future locations




Education reform was part and parcel of the government's campaign against corruption and efforts to boost work force skills. The introduction of the first national university entrance exams on July 12, 2005 was intended as a realization of earlier promises to stamp out bribery in the education system and also, in itself, a key promise for the future -- that Georgia would adhere to European standards for its education system.



Just over half of the 32,000 students who took Georgia's first university entrance exams made the cut. The process was later hailed by Saakashvili as a sign that for the first time "knowledge alone" was enough to gain enrollment in a higher education institution. According to the pro-government NGO Liberty Institute, corruption within the university system had resulted in millions of dollars in bribes and a whole generation of ill-prepared professionals with "bought" diplomas. International organizations and public opinion within Georgia largely welcomed the reforms, though severe problems nevertheless persist within the university system, including curriculum development, Internet access and teacher training.




Saakashvili came to power with the promise to end corruption and the influence of the Georgian mafia, the so called thieves-in-law. In a speech to university students, he pledged to send a new bill to parliament that will "starve organized crime of oxygen" and make it illegal to even claim allegiance to the mafia.



The government's fight against corruption has been hailed as a stunning success. A recent poll supports the government's claims that bribery has ceased to be a problem. According to the International Republican Institute's 2007 Georgian Public Opinion survey, 97 percent of respondents said they had not paid a bribe in the last month. The poll's findings were consistent with similar surveys from the past three years. The president's fight against organized crime has had more mixed results: in 2006 riot police beat and killed several inmates in a Tbilisi prison allegedly for trying to break out during a mafia-organized attempt to take over the facility. Human rights groups criticized the government's response.

Another product of the government's "battle" against crime and the mafia was the creation of the patrol police. In 2004 the government fired all police officers, replacing them after one month with its new patrol police units. While the patrol police have come under public criticism for several cases of unwarranted use of force, public support for the patrol police has been high. The 2006 murder of banker Sandro Girgvliani was the first time the public supported the opposition's complaints against the reformed police force.




In a welcoming speech for visiting US President George W. Bush, Saakashvili vowed to remove the Russian military presence from Georgia by closing the two remaining Soviet-era military bases at Batumi in western Georgia and Akhalkalaki in southern Georgia. He also promised to change the role of Russian peacekeeping forces.



On November 13, 2007, the Russian military officially handed over the last remaining base in Georgia, completing the withdrawal one year earlier than envisioned by a 2005 agreement. However, the Saakashvili government had less success changing the make up of the peacekeeping forces. In October 2007, the parliament declared "illegal" the Russian-dominated Commonwealth of Independent States peacekeeping forces in Abkhazia and South Ossetia; however, the Georgian government does not have the mandate to unilaterally remove them. The country is also still grappling with embargoes introduced by Russia in 2005-2006 against citrus fruits, wine and mineral water, among Georgia's biggest exports.




At an emergency cabinet meeting, Saakashvili vowed to end the country's chronic energy problems - and break its dependence on Russian gas and oil - during his presidency. Georgia has battled with limited gas and electricity supplies since the break up of the Soviet Union - and the war with separatists in Abkhazia - robbed the country of its pre-Soviet energy supplies.



Using a mixture of privatization and privatization revenues, the government has unloaded most of its energy assets and largely provided the country with electricity 24 hours a day, with rare exceptions. Brief, periodic outages do, however, still occur in neighborhoods of Tbilisi and in the regions, normally due to breakdowns in the energy infrastructure.

Georgia's gas supply has continued to be an issue. While Tbilisi has actively sought other sources of gas, primarily from Azerbaijan via the South Caucasus Pipeline, as of 2007 it still depends heavily on Russian gas. According to the latest figures available, Georgia imports 71 percent of its gas needs from Russia and the remainder from Azerbaijan. The prices charged have increased dramatically; as of late 2007, $230 per thousand cubic meters, the highest in the region.

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