Renewed fighting in neighboring Chechnya (Russia) in late 1999 generated concerns that the conflict would spill over into Georgia. Several thousand Chechen refugees moved into Georgia's Pankisi Gorge in late 1999, adding to the refugee/internally displaced population. The Abkhaz separatist dispute also continues to absorb much of the government's attention. While a cease-fire is in effect, about 300,000 internally displaced persons (IDPs) who were driven from their homes during the conflict constitute a vocal lobby. The government has offered the region considerable autonomy in order to encourage a settlement, which would allow the IDPs, the majority of whom are ethnic Georgians from the Gali region, to return home, but the Abkhaz insist on independence.

Currently, Russian peacekeepers, under the authority of the Commonwealth of Independent States, are stationed in Abkhazia, along with UN observers. Their activities are hampered by land mines and guerrilla activity. Years of negotiations have not resulted in movement toward a settlement. Working with France, the United Kingdom, Germany, and Russia and through the United Nations and the Organization for Security and Cooperation in Europe (OSCE), the United States continues to encourage a comprehensive settlement consistent with Georgian independence, sovereignty, and territorial integrity. The UN Observer Mission in Georgia (UNOMIG) and other organizations continue to encourage grassroots cooperative and confidence-building measures in the region.

The parliament has instituted wide-ranging political reforms supportive of higher human rights standards, including religious freedoms enshrined in the constitution.