Due to a lack of investment, Georgia's transportation and communication infrastructure remains in very poor condition. Parliament has set an agenda to start the privatization of the telecommunications industry, although there is still resistance to the plan and Parliament needs to draft implementing legislation. Georgia's electrical energy sector is in critical condition. Shortages of electricity have resulted in public unrest. In 1998, Georgia began to privatize its energy distribution system and expects to privatize its energy generation system by 2000.
Privatization is the only means to generate the capital needed to rehabilitate the sector.
To encourage and support the reform process, the U.S. is joining other donors in shifting the focus of assistance from humanitarian to technical and institution-building programs. Provision of legal and technical advisors is complemented by training opportunities for parliamentarians, law enforcement officials, and economic advisors. The U.S. is increasingly willing to impose conditions on assistance in order to encourage improved performance on key issues and privatization of key sectors, including energy. Georgia continues to depend on humanitarian aid, which is increasingly targeted to most-needy groups. Georgian agricultural production is beginning to recover following the devastation caused by the civil unrest and the restructuring necessary following the breakup of the Soviet Union.