კონფერენცია

∘ Murman Kvaratskhelia ∘
POVERTY AND EMPLOYMENT PROBLEMS IN GEORGIA

Summary

The economic crisis in Georgia has become a systemic character. Its outcome contributes to the polarization of the living standards of some of the population. One of the serious challenges of manifestation of this is the problems of poverty and employment.

In the country there is an unusual situation. The economic growth of the country can not cope with the unemployment problem. Georgia, which is a transitional country, has about 8% of the population, or 300,000 people living in unemployment mode. The fact is that the number of self-employed people in our country is much higher compared to other countries. Every person living in rural areas is considered self-employed. But their revenues are unstable and low.

So, for example, if we compare EU countries, 85% are employed there. While the remaining 15% belong to the self-employed category. Statistical data in Georgia shows an anti-trend. In particular, the number of hised employees is 32% and self-employed - 68%. Also, according to statistical data, one million people are employed in Georgia. Out of these, 48% of the agricultural sectors are producing 9% of the country's gross domestic product. Of course, it is clear that this sector has a lower culture of labor.

The average wage level is characterized by low rates. Georgia is in the 8th place with the former allied republican data. From former Soviet republics, the average wage level is the highest in Estonia, the lowest in Tajikistan. The average wage level in Estonia is 8.5 times higher than in Tajikistan and is three times higher than in Georgia. However, the average wage rate in Georgia is 75% higher compared to countries with similar economic potential.

In December 2016, the minimum wage rate of the population was GEL 162. That is about 70 dollars. And in October 2017, it increased to 174 GEL, or about $ 75. The share of foodstuff expenditures in the minimum wage is 70%, in the US 6.4%, in Singapore 6,7%, 8,7% in Switzerland and 9,9% in Austria.

At present, the share of the population below the absolute poverty line is 22.3% or 792 000 in the country. In 2012, 42,5% of Georgian population and in 2014 32,2% − belong to the poorest category.

As a result of this, new layers of new riches and new poor people appeared in the country. Obviously, social polarization has become irreversible.

In our opinion, it is necessary to create solid and safe development programs for a more modern economy in addition with the existing ones, for a long period.

Ivane Javakhishvili Tbilisi State University Paata Gugushvili Institute of Economics International Scientific C O N F E R E N C E S "ECONOMY – XXI CENTURY"

E ISSN 2587 - 4691	∘ Murman Kvaratskhelia ∘ POVERTY AND EMPLOYMENT PROBLEMS IN GEORGIA Summary The economic crisis in Georgia has become a systemic character. Its outcome contributes to the polarization of the living standards of some of the population. One of the serious challenges of manifestation of this is the problems of poverty and employment. In the country there is an unusual situation. The economic growth of the country can not cope with the unemployment problem. Georgia, which is a transitional country, has about 8% of the population, or 300,000 people living in unemployment mode. The fact is that the number of self-employed people in our country is much higher compared to other countries. Every person living in rural areas is considered self-employed. But their revenues are unstable and low. So, for example, if we compare EU countries, 85% are employed there. While the remaining 15% belong to the self-employed category. Statistical data in Georgia shows an anti-trend. In particular, the number of hised employees is 32% and self-employed - 68%. Also, according to statistical data, one million people are employed in Georgia. Out of these, 48% of the agricultural sectors are producing 9% of the country's gross domestic product. Of course, it is clear that this sector has a lower culture of labor. The average wage level is characterized by low rates. Georgia is in the 8th place with the former allied republican data. From former Soviet republics, the average wage level is the highest in Estonia, the lowest in Tajikistan. The average wage level in Estonia is 8.5 times higher than in Tajikistan and is three times higher than in Georgia. However, the average wage rate in Georgia is 75% higher compared to countries with similar economic potential. In December 2016, the minimum wage rate of the population was GEL 162. That is about 70 dollars. And in October 2017, it increased to 174 GEL, or about $ 75. The share of foodstuff expenditures in the minimum wage is 70%, in the US 6.4%, in Singapore 6,7%, 8,7% in Switzerland and 9,9% in Austria. At present, the share of the population below the absolute poverty line is 22.3% or 792 000 in the country. In 2012, 42,5% of Georgian population and in 2014 32,2% − belong to the poorest category. As a result of this, new layers of new riches and new poor people appeared in the country. Obviously, social polarization has become irreversible. In our opinion, it is necessary to create solid and safe development programs for a more modern economy in addition with the existing ones, for a long period.