This report examines Georgia's efforts to democratize and bolster its free market economy, while surmounting separatism, Russian economic sanctions, and other problems. U.S. policy and assistance are discussed. Basic facts and biographical information are provided. Related products include CRS Report RL33453, Armenia, Azerbaijan, and Georgia: Political Developments and Implications for U.S. Interests, by Jim Nichol.

The United States recognized the independence of Armenia, Azerbaijan, and Georgia when the former Soviet Union broke up at the end of 1991. The United States has fostered these states' ties with the West in part to end their dependence on Russia for trade, security, and other relations. This report discusses the relationships between the United States and each of these three nations, as well as these three nations' political and economic conditions. The report also discusses key related issues in the second session of the 111th Congress, including Armenia's independence and economic development, Azerbaijan's energy development, and Georgia's recovery from Russian's August 2008 military incursion.