EKONOMISTI
The international scientific and analytical, reviewed, printing and electronic journal of Paata Gugushvili Institute of Economics of Ivane Javakhishvili Tbilisi State University
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Journal number 4 ∘
Ilia Janiashvili ∘
The Middle Corridor and the Management of Georgias Potential Expanded Summary The article provides a comprehensive analysis of the Middle Corridor (also known as the Trans-Caspian International Transport Route) and its growing strategic importance in the wake of major global shifts, particularly the Russia-Ukraine war. It positions Georgia as a pivotal nation within this new geopolitical and economic landscape. The paper begins by contextualizing the need for new trade routes. Global supply chains, already strained by the COVID-19 pandemic, were further disrupted by the 2022 Russia-Ukraine conflict. Western sanctions against Russia rendered the traditional "Northern Route" connecting China and Europe less viable and more risky. This created a powerful impetus to develop alternative pathways, thrusting the Middle Corridor—a key component of China\\'s Belt and Road Initiative (BRI)—into the spotlight. The corridor is a multimodal transport network designed to connect Asia to Europe through Central Asia, the Caspian Sea, the South Caucasus (specifically Azerbaijan and Georgia), and Turkey, thereby bypassing Russia entirely. This route promises to significantly reduce transit times, potentially cutting the journey from China to Europe to as few as 12 days, compared to 19 days via the Northern Route and 35-45 days by sea. Georgia\\'s geographical location between the Black and Caspian Seas makes it an indispensable link in the corridor. The article highlights several crucial infrastructure projects that underpin Georgia\\'s role: the Baku-Tbilisi-Kars (BTK) Railway , which creates a seamless rail link from the Caspian to the Mediterranean region; the Anaklia Deep-Sea Port , which aims to create a major logistics hub on the Black Sea; and the Black Sea Submarine Electricity Cable, an ambitious energy project designed to connect the South Caucasus\\'s power grid with Europe\\'s. This positions Georgia not just as a transit country for goods, but also as a potential producer and exporter of electricity. A significant portion of the article is dedicated to Georgia\\'s vast and largely untapped potential in renewable energy. While currently dependent on fossil fuel imports, the country possesses substantial natural resources. According to the National Renewable Energy Action Plan, Georgia has significant potential in hydropower (estimated at 15,000 MW), wind power (estimated at 1,500 MW), solar power (with 250-280 sunny days per year in many regions), and geothermal energy. By developing these resources, Georgia can achieve energy independence and become a key supplier of green energy to Europe, adding a crucial layer to its strategic importance. The success of the Middle Corridor is not merely a matter of logistics; it is deeply intertwined with geopolitics and faces significant hurdles. The United States and the European Union strongly support the corridor as it aligns with their strategic goals of reducing Russia\\'s influence and diversifying their supply chains. However, the scale of investment required is immense, with the EBRD estimating that $19-21 billion is needed for infrastructure upgrades. Furthermore, the corridor traverses a historically volatile region, making regional security and stability an "operational necessity" for the route\\'s viability. In conclusion, the Middle Corridor represents a historic opportunity for Georgia to transform its economy and solidify its role as a key regional hub for transport, logistics, and energy. By pursuing a balanced foreign policy and investing strategically in infrastructure and renewables, Georgia can leverage its position to attract investment, stimulate economic growth, and enhance its security. The project\\'s success, however, will depend on a concerted, collaborative effort from all participating nations and international partners to overcome the substantial financial and security challenges. Keywords: Middle Corridor, Belt and Road Initiative (BRI), Georgia, Geopolitics, Logistics, Renewable Energy, Economic Devepment. |