ABSTRACT
This chapter explores the link between the strategic transit function of Georgia and its political and economic security. The strategic importance of South Caucasia was evident to neighboring states long before oil was discovered in the region. Several factors determined the historic role of Georgia as a geographical pivot. Traditional economic ties was energy and railway development in the nineteenth century that brought Georgian lands back from economic oblivion, and within decades made Georgian trade routes some of the most important for oil transport in the world. During World War I, and the Russian Revolution and civil war of 1917-20, the South Caucasian trade corridor became the focus of international rivalry. The Transcaucasian Democratic Federative Republic (TDFR) split into independent states of Georgia, Azerbaijan, and Armenia in May 1918. Russian military pressure on Georgia led to the establishment of an Organization for Security and Co-operation in Europe (OSCE) Border Monitoring Operation (BMO) in Georgia-Russian Federation border areas.
