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Liechtenstein does very well as an independent state with one of the highest standards of living in the world with half the people of South Ossetia. Bermuda, also autonomous for all practical purposes, does just as well with about 40,000. There are even smaller Caribbean and South Pacific states
Notwithstanding an independent South Ossetia is unthinkable. It is already a major focus of international crime as the territory has for some years been in a disputed limbo with smuggling a major industry. Neither Georgia nor Russia nor the UK, EU or US can want an indeendent South Ossetia. Either it is part of Georgia - the present legal position - or part of Russia. If the latter the nation state of Georgia is so severely compromised that it is hard to see how it can survive. Geography is cruel.
The solution recognised by international law is that South Ossetia remains a part of Georgia, and special problems are sorted out within that legal framework.