Both policy-oriented and pure academic literature have not paid much attention to the interconnectedness of brain drain and meritocracy and the impact of globalization on national capacity for evolutionary transition in post-Soviet countries. The proposed research aims to examine the nature of brain drain in Georgia and its impact on the country’s economic competitiveness through focusing on the way in which lack of meritocracy contributes to brain drain and undermines Georgia’s potential for transformation into knowledge based economy. The study will attempt to contribute to modernization theory, and by using an example of Georgia, it will provide diagnostic analysis and policy recommendations on reversing brain drain.