A small army of western advisers in the country is helping Georgians make the transition to democracy and a market economy. MacPhee's assignment has been to keep track of what advisers from different agencies are doing. He said he brings the advisers together to give them an overall picture of how the economy is performing and advises them on what strategies the international community there should follow in terms of helping the country. He said he's also trying to help the process by establishing meaningful economic indicators. We try to find indicators like electricity consumption or agricultural production to get more accurate measures.
Agriculture is by far the biggest sector even though Georgia is mainly mountains.
MacPhee said the long-term prospects for the country are good because of its strategic location and an educated younger generation that understands what needs to be done. Blessed with a subtropical climate, the towering Caucasus Mountains and a rich cultural heritage, Georgia also has great potential for tourism. But, he said, it's going to take a while to overcome the fears and suspicions of the Soviet era to establish the confidence in public institutions that is taken for granted in the West. For example, after nearly seven years of independence, Georgia is only part-way through privatizing land ownership, and without land as collateral farmers can't get loans to improve their operations. Bankruptcy laws have been passed, but judges inherited from the Soviet court system won't enforce them, so banks are reluctant to lend to businesses.