Georgia is a country that emerged as an independent country on the international arena 30 years ago. Following the fall of the USSR, the country finally got its desired wish - various reforms have been executed but still, there needs to be done more for the state to become an accomplished state.
Almost 20% of Georgia is occupied by Russia and its aggression remains a grave threat. In addition, all the attempts for the country to embark on a pro-Western path seem to lack something.
Investment culture in Georgia does not enjoy much popularity and while there are quite a decent number of people involved in investing, it is not really a considerable amount. In this article, we will talk about the main reasons Georgia is so odd with investment.
Lack in financial education
When we talk about investing and in particular trading - does not matter if it is stock or Forex financial education is necessary. If we take a look at the statistics and general picture among citizens financial literacy and understanding financial terms is on a low level. If you were to ask an ordinary citizen what is direct quote in forex, spread, leverage, or pip most of them will have no answer on that. Yes you might encounter people who will tell you they have a degree in finances in the economy but for the most part that is not a real indicator of education.
Mentality and a general mindset of Georgians are very different from the ones in Europe and the United States. Generally, Georgian citizens are not fond of taking risks when it comes to money, and in trading when you are willing to earn some money you should risk something. You may end up losing all of your money but that is a part of an investment. A major part of Georgians are afraid of losing their money.
If you compare it to other European countries, they have this determination to achieve their goals even if at some point they lose their money. Losses are inevitable - but it is up to a trader how he or she will recover from this.
People take trading as a side hustle for the most part, and they think of investing only when they have amassed a certain amount of money. Georgia does not boast of having a very “rich” society. Most of people barely make ends meet. Salaries are not very high, thus the economic situation plays a huge role for the reluctance of Georgian people. You might argue that even with a low amount of money it is possible to make thousands, but that does not always work that way.
Lack of literature
Good books on investing and trading are unavailable in the Georgian language. If you want to acquire the necessary information and terms you should look for the ones in English. Yet, some websites emerged in recent years, focusing on Forex trading, though they are not comprehensive and have not updated for a very long time. While English is slowly becoming a second language for citizens, it is quite difficult to read financial literature in a foreign language.