South Ossetia

The Republic of South Ossetia (Ossetian: Республикæ Хуссар Ирыстон, Respublikae Xussar Iryston; Russian: Республика Южная Осетия, Respublika Yuzhnaya Osetiya; Georgian: სამხრეთი ოსეთია, Samkhreti Osetia) is a de facto independent republic within Georgia. Although it has declared its independence, its separation from Georgia has not been recognized by any other country. Georgia itself refuses to recognise South Ossetia as a distinct entity; the government calls it by the ancient name of Samachablo or, more recently, Tskhinvali region (after the republic's capital). South Ossetia is formally part of the Georgian region of Shida Kartli.

Economy

Following a war with Georgia in the 1990s, South Ossetia has struggled economically. Employment and supplies are scarce. Additionally, Georgia cut off supplies of electricity to the region, which forced the South Ossetian government to run an electric cable through North Ossetia. The majority of the population survives on subsistence farming. In addition to its economic problems, unclear political perspectives, thousands of refugees, and an illegal drug and arms trade have made the region unstable again in the last few years. Virtually the only significant economic asset that South Ossetia possesses is control of the Roki Tunnel that links Russia and Georgia, from which the South Ossetian government reportedly obtains as much as a third of its budget by the expedient of levying customs duties on freight traffic.

Related Topics:
1990s - Drug - Arms trade

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