From Caucasus: An Introduction, by Thomas de Waal (Oxford U. Press, 2010), Kindle Loc. 638-643, 826-852:
The different parts of Georgia only came together in the nineteenth century with Russian rule, the coming of the railways, and a generation of patriotic intellectuals keen to foster a new national consciousness. The churches of the Golden Age, the rediscovery of ancient manuscripts, and the poetry of Shota Rustaveli were important cultural treasures in this process of national reinvention and discovery. The dilemma has been that anyone seeking to forge, or reforge, a “Georgian national identity” does so at the risk of suppressing the country’s great natural diversity. President Mikheil Saakashvili has faced this challenge as he has sought to build a modern Georgian state out of the country weakened by centrifugal tendencies he inherited in 2004.
Tiflis (officially called by its Georgian name Tbilisi only in the twentieth century) had long been the largest city in the region. When King David IV reconquered the town from the Arabs in 1122, he invited Armenian traders and artisans to settle there, and they became its largest community. For centuries the Armenians ran the city, as Georgians tended to be either rural nobility or peasantry. After the Russian takeover in 1801, Tiflis became the seat of imperial rule. In the 1840s, Prince Vorontsov finally cleared away the last ruins of the 1795 Iranian assault and transformed the main part of the city into a European-style capital. He laid out a new central boulevard that became the main artery of the city.
The first theatre and public library were built; newspapers were opened. The viceroy invited an Italian opera company to come and perform Rossini, Bellini, and Donizetti and was pleased to hear them instead of the “semi-barbarous sounds of Persian music” that had filled the town a few years earlier.
In 1899, Tiflis had 172,000 inhabitants. Armenians were just over a third of the population; Georgians and Russians each formed a quarter. The remainder included Ossetians, Azerbaijani “Tatars,” Persians, Greeks, Poles, Germans, and Jews. Caucasian towns were not melting pots, and each community had separate places of worship, different holidays, and special trades. The Armenians dominated business, trade, and municipal government, running the hotels, restaurants, cafes and taverns, wineshops and caravanserais. Wardrop said the Armenians were called “Shylocks” and like the Jews were disliked by other ethnic groups for their alleged sharp practices: “A local proverb says ‘A Greek will cheat three Jews, but an Armenian will cheat three Greeks.’” This kind of racial stereotyping caused tensions between Armenians and Georgians but generally did not spill over into street violence.
The same was not true in the other major city of the Caucasus, Baku. Here, social and political tensions eventually caused mass bloodshed. Situated on a peninsular overlooking the Caspian Sea, Baku was a small ancient desert fortress, home to a powerful dynasty, the Shirvanshahs, in the Middle Ages. The commercial exploitation of its oil wells in the 1870s changed it virtually overnight into the world’s foremost oil city. In 1883, the British writer Charles Marvin noted, “what was ten years ago a sleepy Persian town is to-day a thriving city. There is more building activity visible at Baku than in any other place in the Russian Empire.” Old houses were being pulled down while the “wretched booths of the Persians were being replaced by spacious Russian shops.” As in Tiflis, Armenians had a leading role in both business and municipal government, while tens of thousands of Muslim peasants, many from Iran, immigrated to earn a wage in the oil fields.
The third main urban center of the region, the Black Sea city of Batum (called by its Georgian name Batumi after 1936), became the Caucasus’s window on the world after the Russian takeover in 1878. Within a generation, it had a string of foreign consulates and a British yacht club and cricket pitch. Again, this all depended on Baku oil, sent to Batum first by railway and then through the world’s first oil pipeline. It was refined in a factory built by the Rothschilds—to which the young Stalin set fire in 1903. Like Baku, although smaller (its population in 1897 was twenty-eight thousand), it was a place of commerce and intrigue.