rably between 1998 and 2000, and consequently inequality and poverty increased as measured by any of several methodologies increased (see Table 2.1.1). Growth was affected by a number of shocks, including the 1998 Russian crisis, severe droughts in 1998 and 2000, and the increase in the price of energy imports in 2000. These problems were compounded by internal and external political instability. Growth recovered in 2001-02, leading to a slight reduction in overall poverty.
Table 2.1.1. Change in poverty in Georgia between 1997 and 2002
Poverty Headcount (% of population)
Poverty definitions (lines)
1997
1998
1999
2000
2001
2002 a/
Official minimum
46.6
50.5
53.0
52.5
52.0
51.3 b/
Urban
46.7
53.3
60.4
56.6
54.3
53.7
Rural
46.4
47.1
44.6
48.0
49.6
48.8
US $ 4.30 per capita/day at PPP c/
13.6
19.8
23.2
23.0
22.8
21.7
Recommended poverty line (baseline)
13.6
19.8
23.2
23.0
22.8
21.7
Urban
13.8
22.2
27.4
24.6
24.1
22.6
