Georgian President Mikheil Saakashvili conceded his party's defeat Tuesday, setting the stage for the nation's first peaceful, democratic transition through election since the breakup of the Soviet Union.
Victory in the parliamentary elections went to a coalition headed by billionaire businessman Bidzina Ivanishvili, who is set to become the next prime minister.
The result of Monday's election means Georgia will have a multi-party parliament, boosting democracy in the nation, observers said.
The vote also is a reflection of how the people feel about Saakashvili. He took power in 2004 after the Rose Revolution, the name given to widespread protests over disputed parliamentary elections.
Saakashvili is credited with having changed the country by moving toward integration with the West, with steps such as seeking membership in the European Union and NATO. He also revamped the nation's economy, retooling it to reflect a free market system.
But critics said that beneath the surface, his government was dominated by Soviet-style "administrative measures."
Ivanishvili, whose Georgian Dream alliance won a majority of seats in the 150-member parliament, said the new government would seek to mend the country's troubled relations with Russia. The two nations fought a brief but bitter war four years ago over the breakaway region of South Ossetia.
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