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The Georgian name of the region is Shida Kartli (Inner Kartli). Although Ossetians have been the ethnic majority for the past few centuries, Georgians consider the region to be a historical feudal province.
With the break up of the Russian Empire, South Ossetia became a part of the Georgian Menshevik Republic, while the north became a part of the Terek Soviet Republic. In April of 1922, following fierce fighting between White Russian and Soviet forces the "South Ossetian Autonomous District" was formed. Formally under rule of Georgia's government, it enjoyed some degree of independence.
In 1989, concerned by rising nationalism in Georgia, the South Ossetians demanded unification with North Ossetia. On 10 November 1989, the South Ossetian Supreme Soviet approved a decision to transform the AO into the South Ossetian ASSR, which would form part of Georgia. A day later, the Georgian parliament revoked the decision. Additionally, the parliament authorized the suppression of newspapers and demonstrations.
Following Georgia's independence in 1991, the Georgian government declared Georgian to be the national language. This caused concern in South Ossetia, which demanded that Ossetian become the language of their state. The Ossetian minority continued to seek greater levels of autonomy, but were faced with increasing nationalist sentiment among the Georgian majority. Violent conflict broke out towards the end of 1991. As a result, a large number of refugees fled the region. In 1992, a ceasefire was negotiated at the initiative of Russian President Boris Yeltsin. The governments of Georgia and South Ossetia reached an agreement to avoid the use of force against one another, and Georgia pledged not to impose sanctions against South Ossetia. A peacekeeping force of Ossets, Russians and Georgians was set up.
Following the Georgian war, South Ossetia has struggled economically. Employment and supplies are scarce. Additionally, Georgia cut off supplies of electricity to the region, which forced the South Ossetian government to run an electric cable through North Ossetia. The majority of the population survives on subsistence farming. Only nine percent of its area is cultivated. Grain, fruit and vines are grown, although only a portion of these are grown under irrigation. Forestry and cattle industries are also maintained. In addition to the entity's economic woes, unclear political perspectives, thousands of refugees, and an illegal drug and arms trade have made the region unstable again in the last few years.