Georgia lifted visa requirements for citizens of the Russian Federation on February 29; one day after Georgian President Mikheil Saakashvili announced the initiative in his annual state of the nation address in the Georgian Parliament. Whereas the abolishment of the visa regime was the most striking point of president’s speech, a notable part was also dedicated to a development plan envisaging improvements in social and security policies.

According to Saakashvili, the plan presented for the years 2012-2015 involves five aspects: employment, agriculture, healthcare, democratic reforms and security, and aim at ensuring a more equal distribution of the country’s economic progress in recent years. To this end, the government foresees a continuation of infrastructure development projects, rehabilitation of irrigation and the drainage systems. According to the plan, GEL 1,000 vouchers will be allocated for citizens willing to acquire a new profession; 20,000 people will receive free English language and computer skills training courses; twelve “centers of mechanization” will be created to consult farmers; 40 medical centers and hospitals will be built and far more people will gain access to healthcare in the envisioned period. In addition, from January 2013, each family will receive a GEL 1,000 and GEL 2,000 onetime allowance for their third and fourth newborn children respectively.

In reference to democratic reforms, Saakashvili mentioned the introduction of a jury system last year that strengthened the independence of judiciary. He also emphasized the significance of the upcoming parliamentary elections. “[Elections] are a very important test for us and it is a matter of principle to make these elections the freest, the most transparent and the most democratic ever held in Georgia,” he said. Although the new electoral code had already been passed by the parliament, Saakashvili acknowledged that disagreements still persist and declared a readiness to continue dialogue with the opposition on this matter.

Regarding security and foreign policy, the President stressed that Georgian ties with western allies have improved and suggested additional steps to bolster this achievement. “While deepening our close ties with the West, we are at the same time interested in improving relations with Russia” he added and aired a visa-free travel rules initiative for Russian citizens aiming to boost the economic ties with Russia. “Let every Russian businessman know that they can come to Georgia, invest in Georgia, make business in Georgia,” he said.

In response to Saakashvili’s initiative, the Kremlin offered not only reciprocation of visa-free rules but also a resumption of diplomatic relations that were cut during the 2008 August war. However, in return, Moscow required that Tbilisi reworks the Georgian law on occupied territories, which outlaws the entrance into breakaway Abkhazia and South Ossetia from any territory not under Georgian control. Violations of the law entail a fine or a jail term between two and four years. “This [provision] applies to all those who have at least once visited Abkhazia and South Ossetia” since 2008, Russia’s Foreign Ministry stated on March 2 and called for a revision of the law as a prerequisite for renewed diplomatic ties.

The Georgian Foreign Ministry responded on March 3 that Moscow had set “politicized preconditions” to avoid a reciprocation of the visa-free rules with Georgia. Further, it is unacceptable for Georgia to resume diplomatic relations with Moscow unless the latter starts a process of de-occupation, but Tbilisi is ready “to hold a dialogue with Russia anytime.”

Before the initiative went into force, Russian citizens were able to obtain a visa upon arrival in Georgia, with the exception of residents of the North Caucasus who are allowed 90-day visa-free travel since October 2010. Thus, even before the visa-free rules, Russian citizens could cross the country without complicated legal procedures. The unilateral decision to remove visa requirements might thus not make much difference in this regard. Still, it does serve as a counter argument against domestic and international opponents who blame Saakashvili for a lack of political will to normalize relations with Russia. Moreover, from the standpoint of the Georgian government, Georgia’s unilateral move unveiled that the Kremlin’s stated willingness to restore humanitarian ties with Georgia appeared to be only rhetoric.

While the abolishment of visa requirements for Russian citizens and declaration of new social projects were the main messages of Saakashvili’s 2012 state of the nation address, other interesting points include a change in the presentations of problems the country is facing. Unlike in previous annual addresses, the president acknowledged that the unequal distribution of wealth within the country impedes the development process. Also, Saakashvili left his post-presidency plans without comment, steering clear of a direct answer to whether he plans to become Prime Minister after his final presidential term expires next year.