Internal migration is an important demographic process that negatively affects a country›s demographic balance. It can be both voluntary and forced. In the first case, the migration of people from the village to the city is due to socio- economic reasons. In the second case, people are forced to leave their homes and move during natural disasters and conflicts (eco-migrants and displaced persons). The problem can be considered in a regional context and highlight a number of trends that are relevant for the Autonomous Republic of Adjara. The reduction of the population of regions is importance for ensuring demographic security, both for using the potential of economic development and for the population in the regions adjacent to the state border. Since the internal migration flows are large, this can lead to an increase in labor flows from the regions. In addition, in the case of vulnerable groups, such as displaced persons and eco-migrants who live in different municipalities, additional problems arise in terms of integration resettlement. According to experts, the control of internal migration processes was practically destroyed in the post- Soviet period. The movement of the population within the country is no longer controlled; accordingly, the issue is less studied in the scientific direction. Management of internal population flows caused by armed conflict, socio-economic and environmental problems requires more attention from the state. It is especially important to develop and implement policies that encourage the use of accumulated human and financial resources for sustainable development, which will allow local residents to stay in their places of residence. This will affect not only urbanization / emigration trends, but also general macroeconomic indicators, income levels and living standards.

Migration processes of high mountains and population growth of cities have led to depopulation in mountainous regions, rising unemployment in the city and a had a decrease in agricultural products, ultimately provoke external migration processes. These problems are typical not only for Georgia but also for the postSoviet countries and are relevant in the global context. The purpose of the study was to identify and analyse the effects of the short-term tax privileges for the mountainous regions of Georgia. The paper is dedicated to research and quantitative analysis of the impact of tax and social benefits on improving demographic conditions and regulating internal migration processes, both in the short and long-term perspective. The research methodology was based on the statistical processing of the survey results. For quantitative research, we used a structured questionnaire, which was developed by face-to-face interviews. Approximately 500 respondents were interviewed in 79 villages of 11 communities of Khulo, the Adjara Autonomous Republic, Georgia. The study revealed that by regulating tax and social benefits, it is possible to partially manage the internal migration processes of the mountainous region in the short run, while in the long run, a complex approach to the issue is important. In the mountainous parts, tax, social and other benefits will have a positive economic effect in the short term. Increasing the amount of income for individuals and legal entities is one way to stimulate the rural economy.