Despite weeks of massive demonstrations against the "foreign influence" or "foreign agents" law in the Georgian Parliament, the South Caucasus republic recently adopted the draft law during its third and final reading. This legislation mandates that any nongovernmental organization (NGO) or media institution receiving more than 20% of its funding from abroad must register as an "organization that pursues the interests of a foreign power."

The demonstrators have long rejected the controversial draft law, which is supported by the government and has been criticized by the United States and the European Union. Critics of the draft law say that it is inspired by the Russian law on "foreign agents" and aims to silence dissent, and may affect the country’s ambition to join the EU. The government said that this measure aims to force organizations to show greater "transparency" regarding financing.

The opposition also denounced the draft law, describing it as a "Russian law," because Moscow uses similar legislation to suppress independent news media, nonprofit organizations and activists who criticize the Kremlin, while the government says the draft law is necessary to stop what it sees as harmful foreign influence on the country’s politics and to prevent foreign actors. They argue there is no foreign plot to destabilize Georgia, and it is similar to the U.S. legislation passed in the 1930s.

Georgia has long witnessed sharp political polarization between the ruling party, Georgian Dream, and the opposition. These tensions, combined with economic conditions, have fueled popular anger against the draft law. The Georgian economy is suffering from a recession, increasing public dissatisfaction and leading some to believe that the government does not care about their needs.

The "foreign agents" law poses a major challenge to democracy in Georgia. The country’s future depends on how the government deals with this crisis. Its failure to address the demands of the protesters may make it face more unrest and instability, which threatens the country’s future and its European aspirations, and moving forward with the government’s plans. It may lose the support of the West, and an EU spokesperson confirmed that adopting this law would constitute a "serious obstacle" to Georgia’s accession to the union.

This law raises widespread concern among the Georgian people for multiple reasons, including fears of suppressing freedoms. The draft law stipulates the classification of NGOs and media organizations that receive more than 20% of their funding from foreign parties as "foreign agents." Critics of the law believe that this will be used as a way to target independent organizations and restrict freedom of expression.

In addition to concerns about its impact on relations with the West, Georgia, which is striving to join the EU, fears that this law will hinder its progress on the path of European integration. The law is seen as a step toward Russia, which applies similar laws to limit the influence of dissidents or opponents of the Kremlin. The U.S. has previously urged Georgia to "choose between a Kremlin-style law and the aspirations of the people."

Ambiguities, lack of clarity

The new draft law suffers from ambiguity in terminology, and a lack of clarity in the definition of "foreign agents" and the scope of their foreign financing, which raises concerns that it could be used arbitrarily to target any organization or individual that criticizes the government. The EU and the U.S. condemned the draft law, warning of its negative impact on democracy and human rights in Georgia.

Critics argue that the adoption of the law is an attempt by the Georgian government to undermine relations with the West and return the country to the Russian sphere of influence. Russia will likely view the protests, if they continue, as an opportunity to undermine the West’s influence in Georgia, and may try to exploit the situation to increase its influence on the country. It is true that Russia has not issued any official comment on the draft law, but it is believed that it supports it secretly, as it is in line with its efforts to strengthen its influence in the region.

The ongoing conflict is linked to broader geopolitical tensions, as Georgia seeks to balance its relations with Russia and the West. Russia considers Georgia within its sphere of influence, while Georgia seeks to join the EU and NATO. The situation in Georgia remains volatile, and protests may continue with the possibility of tensions rising, especially with the approaching parliamentary elections, as Georgia is going through a sensitive phase, with legislative elections scheduled to be held next October, which are seen as an important test for the current leaders.

It is expected that the country's President Salome Zourabichvili will use her veto power against the law; however, the ruling Georgian Dream party enjoys a strong majority in Parliament, which allows it to pass laws and vote against the presidential veto without the need for the support of any opposition representatives.

The situation is sensitive in Georgia, which oscillates between Russian and European influence. It fought a short war with Russia in 2008, as a result of which it lost the regions of South Ossetia and Abkhazia, which declared themselves independent republics recognized by a limited number of countries and protected by Russia.

It remains to say that what Georgia is witnessing today are indications of the conflict regarding the future direction of the country between those who wish to join the Western system, and those who do not wish to strain the relationship with neighboring Russia. The government considers that there are external interferences behind the protests, and they will increase as the parliamentary elections approach, due to its neutral position on Russia. In light of the war in Ukraine, here lies the importance of the transparency of foreign financing.