Will an asymmetrical system of fiscal decentralisation resolve the conflicts in the republic of Georgia?

This paper discusses the problems regarding the decentralisation of a formerly communist country. In Georgia, the first steps towards decentralisation failed, since the transition process led to a power vacuum that escalated in bloody conflicts and secessionist movements. The status of Abkhazia and South Ossetia is still unclear and the intra-state tensions remain unsolved. This may be one of the reasons why the most recent attempts of decentralisation are rather hesitant. It is far from clear whether decentralisation in response to regional tensions would increase instability or political stability. We identify the limited autonomy at the local and regional levels as a major obstacle and challenge for the further reform process.