Summary 

The reality in a certain region of Georgia is an important indicator of the economic, political or social strength of the country. Therefore, proper analysis and problem solving is an important issue. The regions of Georgia face significant challenges, their development opportunities are quite different, and as a result the population is unequally settled. The majority of the population lives in municipal centres and areas where the level of economic activity is relatively high. An analysis of foreign investment, economic activity, GDP, per capita income and other economic indicators reveals that the index of socio-economic well-being of the population is substantially higher than the resident of the region.

The gap of inequality between the regions of Georgia is growing from year to year. Most of the foreign investment and start-up companies in the country still are in the centre, and the region depends on state funding, which is insufficient. Local budget revenues are filled with 19% of paid VAT. There is no economic activity - the budget cannot be filled, therefore the periphery remains undeveloped. The country's regional development policy, in a broad sense, should be seen as an integral part of the development policy. The development of regions means the development not only of this region, but of the country in general, so that prosperity not to be fragmented and not to happen unequal settlement of the population on the basis of everyday problems, or moreover, due to ethnic diversity, social problems not to pose a threat to the territorial integrity of the country.

Rebuilding worn-out infrastructure networks is crucial to alleviating poverty and improving living conditions of the population. For regional development, first of all, it is necessary to study the potential, in which region what can be done, which agricultural crop to grow or to create an industrial direction will be profitable. The optimal location of the productive forces, the regional structuring of the economy should be studied. Every city and region should have its own economic function. As a result of the analysis of investment opportunities, the state should determine the investment priorities in the regions and stimulate their investment there with tax remissions.  An individual preferential package should be developed for each region and investor. Pursuing similar policies in different regions will lead to employment of the population of the region, increase of added value and consequently local budgets, which will be directly related to solving infrastructural, social and municipal problems and improving the quality of life. To ensure the development of agriculture, the state must stimulate the unification of lands in cooperatives. The vast majority of the population should be employed in the non-agricultural sector in regional centres, and agriculture produced by large farmers will go beyond personal needs, meet local market needs and also enable exports.