Transformation of South Caucasus Countries During 25 Years of Independence

Abstract

More than 25 years have passed since countries of the South Caucasus gained independence. During this time, they underwent a serious transformation, their geopolitical and economic significance, as well as the relationship with the outside world has changed. The countries of the South Caucasus are small and their role in the world economy is negligible. However, because of the important geopolitical location, they attract the attention of many major powers and thus external factors play an important role in their development.The purpose of this work is to study the peculiarities of the transition of countries of the South Caucasus from the socialist system to the capitalist, to identify the problems of this transformation and to show the ways of their solution, and to determine the influence of regional and non-regional countries on the economic development of these countries.The paper analyzes the trends in the economic development of the countries of the South Caucasus, the features of their transformation, the degree of economic interdependence and the possibilities for deepening cooperation, shows the structural features and international competitiveness of national economies, the prospects for economic development of these countries, taking into account external factors, the possibilities of globalization and modern geo-economic conditions.