In Russia, he was a strong opponent of government intervention in the economy, a view that put him at odds with President Vladimir Putin.

Under Bendukidze, OMZ became one of Russia's largest heavy engineering companies and he was one of the top twenty business leaders with an influential voice on economic policy.

Bendukidze returned to Georgia after the Rose Revolution victory, having been appointed Minister of Economy in the new Saakashvili cabinet.

Since 14 December 2004 to 31 January 2008, he was State Minister for Reform Co-ordination, coordinating government efforts to liberalize the economy.

He insists that he was taken by surprise when Georgia's president, Mikhail Saakashvili, and Prime Minister, Zurab Zhvania, nobbled him for a chat in the course of a private visit he made to Tbilisi in May, and then offered him a ministerial job the same evening.

He was known as a committed libertarian[8] and strong supporter of market economy, deregulation and privatization, stating that the Georgian government should sell everything except its honor.

During this time, he worked closely with Simeon Djankov and Leszek Balcerowicz on the design of customs and tax administrations' reforms, as well as on opening up visa-free travel.

The opposition accused him of trying to sell off each of Georgia's strategic assets; such as sea ports, entire railway system, gas supply network, forests, etc.

In February 2009 Bendukidze retired from the public service to focus on tertiary education in Georgia, through the Knowledge Fund – a non-profit, charitable organization, founded by Bendukidze in 2007 to set up and support the Free University of Tbilisi and Agricultural University of Georgia.

The main task of the Advisory Board is to provide efficient proposals on the implementation of reforms in Ukraine based on the international experience.

[12] Bendukidze died on the 13 November 2014 in the InterContinental Hotel on Park Lane in London, after undergoing a stent heart surgery in Zurich a week prior.