Transforming the Georgian Boonies into Places of New Age Technology

Over the past 14 years, the impact agriculture has on Georgia’s GDP  has gone down from 65.86% to 13.72%.  In Georgia the percent of Agriculture generating GDP was above that of Lower, middle income nations; however, in 2006 it went below, and continues to fall.  Georgia’s strength in agriculture declined as Georgia gained its independence and under went a civil war.  Prior to this time, Georgia exported in agricultural products to the Soviet Union, but that connection was lost in 1991.  According to World Bank, “Outputs fell by 70% and exports by 90%, the worst decline suffered by any transition economy.”

Georgia has a lot of resources including natural resources such as fertile land and the ability to farm a diverse stock of fruits, vegetables, and animals.  Georgia, however,  incurred a lot of damage when Abkhazia and South Ossetia tried to secede from in August 2008. The World Bank has helped Georgia’s government financially by providing credit lines for business expansion to those in agriculture.  Many of the small businesses were at a point where they were going to have to stop production because the expenses were too high.  With the lines of credit these farmers were able to purchase new equipment and bring their farms ins to the age of new technology.  This touches on the idea that technology is an important part of an organization, and can lead to its strength or demise.

Already farms have been able to increase their supply and therefore take on more workers.  This contradicts the scare that more technology means that less employees are needed.  The farmers seem to have found the balance between the use of technology and the use of people as workers.  Also, the way funding is set up reminds me of  organizations as hierarchical systems (Scott & Davis pg 97-98).  The World Bank has given money to the Georgian government who in turn distributes funds to various size agricultural producers.  The money has been given to help Georgian agriculture, which is separated into smaller systems of farms.  This hierarchy is very important because it shows how Agriculture can be impacted at different levels.

Georgia started out with a strong influence of agriculture on its economy; however, that all changed when it gained its independence in 1991.  Recent years had been tragic for agriculture as the new nation saw the structure of its agriculture industry fall apart because of its previous reliance on the Soviet Union.   The new age technology that has been provided to farmers in Georgia thanks to credit lines from World Bank, has allowed Georgia to take steps towards building up its economy.  Georgia has so many agricultural resources available, and it has finally been given hope for being able to take advantage of its resources and improve the strength of agriculture within its economy.

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2 Responses

  1. It’s great to hear that Georgian farmers have been able to balance the introduction of advanced machinery with manual labor. I’ve learned about countless examples of similar instances in poor African countries where new technology leaves many farm workers jobless. The small business farmers will have to be aware of the inevitable costs that come with machinery upkeep and fuel though.

  2. You bring up a good point about the cost of upkeep. I believe the plan counts on upkeep not being required until business gets back on its feet a bit. Although, one positive of the upkeep that will be required is that the money that the farmers are earning will be put back into the economy again, therefore, supporting more jobs in the local community.

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