History of socio-economic development of the Republic of South Ossetia in 1992-2020

The presented work examines the socio-economic development of the de facto state of the post-Soviet space South Ossetia in the period from 1992 to 2020. Within the framework of the proposed periodization of the socio-economic development of the Republic, the transition from the “survival economy” to “sluggish development” is reflected in historical retrospect. The consequences of the initial military escalation with the parent state rendered the socio-economic conditions of South Ossetia critical, in which illicit trade emerged as fundamental for the Republic’s survival. The attainment of the status of a partially recognized state in the second phase, beginning in 2008, did not facilitate the establishment and implementation of a structured policy for socio-economic development within the country. This was primarily attributed to a high level of corruption and ineffective distribution of Russian subsidies. The persistent hyper-dependence on external assistance for budget revenues, paired with geopolitical aspirations to integrate with the Russian Federation, led South Ossetia into a state of effective economic dependency.