This paper assesses how firm the foundations are of the revised Georgian state which appeared to be emerging at the end of 1995. It investigates the political institutions and structures on which President Shevardnadze bases his power. It also examines the main problems he faces, including the influence of Russia in Georgian internal affairs, the impact of economic transformation and investment prospects, ethno-regional tensions, and the task of restoring Georgian jurisdiction in Abkhazia and South Ossetia.