On a cold November night in 2003, tens of thousands of Georgians danced in the streets of Tbilisi as firebrand politician Mikheil Saakashvili vowed their small nation was set for momentous change.

But as Georgians prepare to mark the fifth anniversary of the `Rose Revolution` on Sunday, those changes have turned out to be far from what they had hoped.

In those heady days, Georgians believed they were on a path towards prosperity, an end to more than a decade of civil strife and closer ties with the West, eventually leading to membership in NATO and the European Union.

But five years on Georgia`s future is in limbo, the country reeling from a devastating war with Russia, many disillusioned with the revolution`s leaders and the chances of boosting ties with the West increasingly in doubt.

`Some people in Georgia still believe that the five years since the Rose Revolution have been a success, but most Georgians are disappointed,` Tbilisi-based political analyst Archil Gegeshidze said.

`The expectations of the Rose Revolution have not been fulfilled, both in terms of strengthening democracy and joining NATO and the EU.`

For weeks in November 2003, tens of thousands of Georgians rallied in Tbilisi to denounce rigged parliamentary elections won by allies of then-president Eduard Shevardnadze.

When the first session of the new parliament was held, protesters led by Saakashvili stormed the building with roses in their hands, giving the revolution its name. A day later, Shevardnadze resigned.

Saakashvili, then only 36, was elected president and immediately began ambitious reforms.

He tackled corruption, notably by disbanding the graft-ridden traffic police, quadrupled the state budget and attracted record levels of foreign investment.

He also rejected traditional ally Russia and built close ties with Western governments, in particular the United States. US President George W. Bush hailed Georgia as a `beacon of democracy` during a 2005 visit to Tbilisi.

In Saakashvili`s first four years as president, Georgia`s economy grew at a rapid rate, hitting 12 percent growth in 2007. Poverty and crime rates fell substantially.

`Georgia was indisputably a failing state five years ago,` said Giorgi Kandelaki, a lawmaker with Saakashvili`s United National Movement. `In a short period of time there have been enormous and remarkable changes.`

But many have also turned against Saakashvili, accusing him of forgetting the poor in his rush to make economic reforms and of becoming increasingly authoritarian.

In the autumn of 2007, the tables turned and tens of thousands of protesters took to the streets to demand his resignation.

When riot police used water cannons, rubber bullets and tear gas to disperse the protesters, Saakashvili declared a state of emergency and called a snap presidential vote.

Saakashvili won the election in a first round, but the opposition denounced the vote as a fraud and his image was badly tarnished.

`In terms of the quality of democracy, Georgia today is in a worse situation than before the revolution,` said Nino Burjanadze, a key leader of the revolution who broke from Saakashvili earlier this year and will found a new opposition party on Sunday.

`Of course external factors and foreign threats had an extremely negative impact, but the main problem is that the authorities were dizzy with success and lost touch with reality,` she said.

A few months after the unrest, NATO members at a summit in Bucharest refused to put Georgia on a clear path to membership, citing concerns over democracy as a major factor.

Then, in August, Georgia launched an attack on the rebel region of South Ossetia that would have disastrous consequences.

Moscow, which long backed South Ossetia, sent troops to repel the attack, routed Georgia`s small US-trained army and occupied swathes of the country.

Russia`s subsequent recognition of South Ossetia and another separatist province, Abkhazia, as independent states has made Georgia`s goal of regaining control of the rebel regions all but impossible.

The war also set Georgia back in its efforts to build closer ties with the West. Despite promises of substantial aid and condemnation of Russia`s actions, Western leaders have given only lukewarm support to Saakashvili.

Earlier this month, the EU agreed to resume frozen talks on a new strategic pact with Russia over strong Georgian objections.

Western politicians, media and rights groups have also raised concerns over Georgia`s conduct during the war, with some accusing it of having targetted civilians.

`There is complete uncertainty now over Georgia`s European and Euro-Atlantic prospects,` Gegeshidze said. `The country today is completely disoriented and international confidence in Georgia is at an historic low.`