The (Non) Reform of the Georgian Pension System, 1991-2011: A Brief History and UpdateUpdate

This study reviews the factors that played a major role in the development of theold-age pension system in Georgia, 1991-2009 and identifies three main stages in thisprocess. Fiscal constraints and international technical assistance were the main factors behindreform initiatives undertaken before 2003 and during the first attempts to change the system.Political factors and liberal economic ideology influenced the patterns of pension policydevelopment in the period 2004 – 2008, while the negative economic outcomes surroundingthe Russian-Georgian War and Global Financial Crisis, along with decreasing politicallegitimacy, are thought to be major obstacles for comprehensive pension reform at present.The main lesson drawn by this study concerning the post 2012 – 2013 election-cycle pensioninitiatives is that decisive steps should be taken based on hard evidence, rather thanideological conviction.