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"
Archive of Conference dedicated to the Foundation Day
∘ Ramaz Abesadze ∘
PROBLEMS OF STATE REGULATION OF INNOVATIVE ECONOMY FORMATION IN GEORGIA
Summary In order to accelerate the development of innovative economics in developing countries, the state regulation of the relevant processes must be implemented through the State Regulation Mechanism for the formation of innovative economics. Its essence is that it has been based on state regulation of market principles it must promote the acceleration of innovative development of the economy. Formation and management of state regulation mechanism for formation of innovative economy is carried out by regulatory state bodies. The main elements of this mechanism are: legislative and statutory basis of regulation; regulation tools; system of regulation Indices; innovative system infrastructure; system of innovative economy formation measures. For the formation of innovative economics, it is essential to form the most active part of the formal institutions - legislative basis (laws, normative acts, regulations) that are aimed at improving the business environment and the maximum
2017-06-20
PROBLEMS OF STATE REGULATION OF INNOVATIVE ECONOMY FORMATION IN GEORGIA
Summary In order to accelerate the development of innovative economics in developing countries, the state regulation of the relevant processes must be implemented through the State Regulation Mechanism for the formation of innovative economics. Its essence is that it has been based on state regulation of market principles it must promote the acceleration of innovative development of the economy. Formation and management of state regulation mechanism for formation of innovative economy is carried out by regulatory state bodies. The main elements of this mechanism are: legislative and statutory basis of regulation; regulation tools; system of regulation Indices; innovative system infrastructure; system of innovative economy formation measures. For the formation of innovative economics, it is essential to form the most active part of the formal institutions - legislative basis (laws, normative acts, regulations) that are aimed at improving the business environment and the maximum
2017-06-20
∘ Rozeta Asatiani ∘
WELFARE FOR EVERYBODY, WELFARE THROUGH COMPETITION
Summary As a result of the transformation of capitalism, the development of an economic system based on the dominance of private capitalist ownership into a new property has changed the trajectory of the world development. The formation of the socially oriented economy has become an important trend of the development of the modern world and it is recognized a guarantor of forming civil society. This cir- cumstance contributed to bringing moral values to the forefront which left behind hitherto rooted demands, one might say, conditioned by social instinct and rose above them. In market economy, strengthening of social orientation has put forward the study of socio-economic aspects of the welfare. The welfare economics is organically linked with competitive economy, moreover, in modern civilized economy this latter is even recognized as a means of determining the achievement of inclusive welfare. Therefore, today in the world economic literature of topical importance has become global
2017-06-20
WELFARE FOR EVERYBODY, WELFARE THROUGH COMPETITION
Summary As a result of the transformation of capitalism, the development of an economic system based on the dominance of private capitalist ownership into a new property has changed the trajectory of the world development. The formation of the socially oriented economy has become an important trend of the development of the modern world and it is recognized a guarantor of forming civil society. This cir- cumstance contributed to bringing moral values to the forefront which left behind hitherto rooted demands, one might say, conditioned by social instinct and rose above them. In market economy, strengthening of social orientation has put forward the study of socio-economic aspects of the welfare. The welfare economics is organically linked with competitive economy, moreover, in modern civilized economy this latter is even recognized as a means of determining the achievement of inclusive welfare. Therefore, today in the world economic literature of topical importance has become global
2017-06-20
∘ Davit Aslanishvili ∘ Kristine Omadze ∘
GEORGIAS EXTERNAL DEBT STRUCTURE AND THE CHALLENGES OF THE CURRENT SITUATION
Summary The article analyzes Georgia's external debt structure (15.5 billion USD) and payment schedule. Special attention is paid to the private sector external debt that is 11 billion US dollars (including state guarantees) and its share significantly exceeds the amount of state debt. According to the National Bank of Georgia (NBG), despite the large amount of foreign debt in 2012 - 2015, its services did not have any major problem for the Georgian economy. At the same time, the sharp devaluation of the lari took place - from 1 USD = 1.65 GEL, up to 1 USD = 2,45 GEL (as of May 1, 2017). Devaluation reached its maximum in November 2016, when 1 USD was equal to 2,8175 Lari(source: Bloomberg data). According to the NBG's argument, regardless of the large amount of payments as practice shows, the payment is partially (about half) covered by providing goods and services and issuing new bonds (prolongation). The National Bank of Georgia considers that the course of the inflow and
2017-06-20
GEORGIAS EXTERNAL DEBT STRUCTURE AND THE CHALLENGES OF THE CURRENT SITUATION
Summary The article analyzes Georgia's external debt structure (15.5 billion USD) and payment schedule. Special attention is paid to the private sector external debt that is 11 billion US dollars (including state guarantees) and its share significantly exceeds the amount of state debt. According to the National Bank of Georgia (NBG), despite the large amount of foreign debt in 2012 - 2015, its services did not have any major problem for the Georgian economy. At the same time, the sharp devaluation of the lari took place - from 1 USD = 1.65 GEL, up to 1 USD = 2,45 GEL (as of May 1, 2017). Devaluation reached its maximum in November 2016, when 1 USD was equal to 2,8175 Lari(source: Bloomberg data). According to the NBG's argument, regardless of the large amount of payments as practice shows, the payment is partially (about half) covered by providing goods and services and issuing new bonds (prolongation). The National Bank of Georgia considers that the course of the inflow and
2017-06-20
∘ George Berulava ∘
THE INSTITUTIONAL PREREQUISISTES OF THE ECONOMIC DEVELOPMENT PROCESS
Summary The paper considers the role of market institution in the process of economic development. At present stage, the development of the efficient market system implies creation of the incentive structure that will stimulate businesses to invest in innovation and production activities rather than to ‘rent-seeking’ behavior. Such an incentive structure, in turn, is a product of viable institutions guaranteeing property rights, honoring of contracts and payment of credits, lowering of transaction costs and facilitating increase of the effectiveness of the market of production factors. Only under such conditions economic agents receive the possibility and stimuli for innovation, thus creating preconditions for steady economic
2017-06-20
THE INSTITUTIONAL PREREQUISISTES OF THE ECONOMIC DEVELOPMENT PROCESS
Summary The paper considers the role of market institution in the process of economic development. At present stage, the development of the efficient market system implies creation of the incentive structure that will stimulate businesses to invest in innovation and production activities rather than to ‘rent-seeking’ behavior. Such an incentive structure, in turn, is a product of viable institutions guaranteeing property rights, honoring of contracts and payment of credits, lowering of transaction costs and facilitating increase of the effectiveness of the market of production factors. Only under such conditions economic agents receive the possibility and stimuli for innovation, thus creating preconditions for steady economic
2017-06-20
∘ Vakhtang Burduli ∘
PECULIARITIES OF THE TRANSFORMATION OF NATIONAL INNOVATION SYSTEMS IN SOME DEVELOPED COUNTRIES
Summary In modern conditions, sustainable economic development in the country can not be achieved without the existence of an effective national innovation system (NIS) in it. Therefore, Georgia faces the task of forming a full-fledged NIS. In this regard, it is very important to study the experience of building NIS in developed countries (in order to adopt elements acceptable in the conditions of Georgia). The article considers the experience of NIS development in three countries (France, South Korea and Finland). From the experience of France, the following main conclusions can be drawn: 1. The role of the state in regulating economic, in particular innovative development, has been revitalized, and the dirigist traditions characteristic to the Keynesian model of development regulation have revived on a qualitatively new level: the state develops strategies for nationwide and regional development, implements tax incentives for innovative development, has created and uses the
2017-06-20
PECULIARITIES OF THE TRANSFORMATION OF NATIONAL INNOVATION SYSTEMS IN SOME DEVELOPED COUNTRIES
Summary In modern conditions, sustainable economic development in the country can not be achieved without the existence of an effective national innovation system (NIS) in it. Therefore, Georgia faces the task of forming a full-fledged NIS. In this regard, it is very important to study the experience of building NIS in developed countries (in order to adopt elements acceptable in the conditions of Georgia). The article considers the experience of NIS development in three countries (France, South Korea and Finland). From the experience of France, the following main conclusions can be drawn: 1. The role of the state in regulating economic, in particular innovative development, has been revitalized, and the dirigist traditions characteristic to the Keynesian model of development regulation have revived on a qualitatively new level: the state develops strategies for nationwide and regional development, implements tax incentives for innovative development, has created and uses the
2017-06-20
∘ Nataliya Gruschinskaya ∘
ECONOMIC DIPLOMACY OF UKRAINE IN CURRENT GEOPOLITICAL PROCESSES
Summary In the article the question of economic diplomacy features to make foreign policy and economic diplomacy are examples of
2017-06-20
ECONOMIC DIPLOMACY OF UKRAINE IN CURRENT GEOPOLITICAL PROCESSES
Summary In the article the question of economic diplomacy features to make foreign policy and economic diplomacy are examples of
2017-06-20
∘ Valeriy Elizarov ∘
DEMOGRAPHIC CHANGES AS A FACTOR OF SOCIO-ECONOMIC DEVELOPMENT
Summary The article considers the trends formed in Russian population size and structure over last 25 years. The peculiarities of the prospects of population size dynamics up to 2050 are analyzed in details, corresponding to three demographic forecast scenarios (low, medium, and high), as well as the implications of population aging and growth of the demographic load. The Declaration on the Cessation of the Existence of the USSR was adopted on December 26, 1991. The USSR population made up 290.1 million persons in the early 1991. At present the population of the 15 countries on the post-Soviet space makes up about 295 million. After the Soviet Union collapse, Russia experienced the population decline during 20 years. In 1992-2012 the mortality rates exceeded birth rates in the country. 33 million people were born and more than 46 million died during this period. The difference between live births and deaths in Russia amounted to about 13.3 million people. This decline
2017-06-20
DEMOGRAPHIC CHANGES AS A FACTOR OF SOCIO-ECONOMIC DEVELOPMENT
Summary The article considers the trends formed in Russian population size and structure over last 25 years. The peculiarities of the prospects of population size dynamics up to 2050 are analyzed in details, corresponding to three demographic forecast scenarios (low, medium, and high), as well as the implications of population aging and growth of the demographic load. The Declaration on the Cessation of the Existence of the USSR was adopted on December 26, 1991. The USSR population made up 290.1 million persons in the early 1991. At present the population of the 15 countries on the post-Soviet space makes up about 295 million. After the Soviet Union collapse, Russia experienced the population decline during 20 years. In 1992-2012 the mortality rates exceeded birth rates in the country. 33 million people were born and more than 46 million died during this period. The difference between live births and deaths in Russia amounted to about 13.3 million people. This decline
2017-06-20
∘ Nugzar Todua ∘
IMPACT OF FOOD LABELING ON CONSUMER BEHAVIOR
Summary The current study evaluates the development and perspective implication of social marketing interventions for empowering healthy life and well-being of the population in Georgia. The objective of the research is to analyze the impact of food labeling for healthy behavior change of Georgian consumers. The study revealed the strong correlation between awareness and education of consumer on food labeling and healthy behavior changing. One of the important factors of changing healthy behavior is increasing awareness and knowledge in food labeling among the general publics. Despite that Association Agreement with Europe requires implementation of new obligations regarding food security and nutrition policy Georgia faces challenges in this regard. The majority of the consumers are not satisfied with the food labeling in the local market. It is urgent to provide such public health policy, that has the effect of improving the availability, affordability and
2017-06-20
IMPACT OF FOOD LABELING ON CONSUMER BEHAVIOR
Summary The current study evaluates the development and perspective implication of social marketing interventions for empowering healthy life and well-being of the population in Georgia. The objective of the research is to analyze the impact of food labeling for healthy behavior change of Georgian consumers. The study revealed the strong correlation between awareness and education of consumer on food labeling and healthy behavior changing. One of the important factors of changing healthy behavior is increasing awareness and knowledge in food labeling among the general publics. Despite that Association Agreement with Europe requires implementation of new obligations regarding food security and nutrition policy Georgia faces challenges in this regard. The majority of the consumers are not satisfied with the food labeling in the local market. It is urgent to provide such public health policy, that has the effect of improving the availability, affordability and
2017-06-20
∘ Victoriia Kolomiiets ∘
CORRUPTION ABUSES IN THE ECONOMY UKRAINE AND WAYS TO COMBAT WITH THEM
Summary The conducted research made it possible to determine the list of corruption actions and directions of possible abuses in the economy of Ukraine. The levels of abuse in the economy are investigated. The analysis of corruption actions at different levels is carried out, possible positive and negative consequences of corruption actions are revealed. The ways of counteraction to corruption actions and a complex of measures on struggle against corruption in economy are developed. The directions of anti-corruption policy in the economy are suggested. It is proposed to establish at the legislative level for institutions the duty to develop and take measures to prevent corruption. At the legislative level, it was specifically for each employee to determine the degree of responsibility for corruption
2017-06-20
CORRUPTION ABUSES IN THE ECONOMY UKRAINE AND WAYS TO COMBAT WITH THEM
Summary The conducted research made it possible to determine the list of corruption actions and directions of possible abuses in the economy of Ukraine. The levels of abuse in the economy are investigated. The analysis of corruption actions at different levels is carried out, possible positive and negative consequences of corruption actions are revealed. The ways of counteraction to corruption actions and a complex of measures on struggle against corruption in economy are developed. The directions of anti-corruption policy in the economy are suggested. It is proposed to establish at the legislative level for institutions the duty to develop and take measures to prevent corruption. At the legislative level, it was specifically for each employee to determine the degree of responsibility for corruption
2017-06-20
∘ Alfred Kuratashvili ∘
WORLDVIEW AND POLITICAL-LEGAL FOUNDATIONS OF INNOVATIVE SOCIAL-ECONOMIC DEVELOPMENT OF THE SOCIETY AND THE STATE
Summary In scientific work, the author's fundamentally new worldview and political-legal foundations of innovative, socially targeted social-economic development of society and the state are proposed. Particular attention in scientific work is drawn to the fact that without economic development – there can not be social development, which is beyond doubt. At the same time, special attention is paid to the fact that economic development – can not itself mean social development, and it can not automatically serve social development. In particular, in scientific work it is noted that if, for example, an increase in the state budget is considered an indicator of economic development, this can not always be an indicator of social development in society and in the state, and, sometimes, even on the contrary (?!). It is important to note here that although the increase in the state budget is undoubtedly an important indicator of economic development, but if the increase in
2017-06-20
WORLDVIEW AND POLITICAL-LEGAL FOUNDATIONS OF INNOVATIVE SOCIAL-ECONOMIC DEVELOPMENT OF THE SOCIETY AND THE STATE
Summary In scientific work, the author's fundamentally new worldview and political-legal foundations of innovative, socially targeted social-economic development of society and the state are proposed. Particular attention in scientific work is drawn to the fact that without economic development – there can not be social development, which is beyond doubt. At the same time, special attention is paid to the fact that economic development – can not itself mean social development, and it can not automatically serve social development. In particular, in scientific work it is noted that if, for example, an increase in the state budget is considered an indicator of economic development, this can not always be an indicator of social development in society and in the state, and, sometimes, even on the contrary (?!). It is important to note here that although the increase in the state budget is undoubtedly an important indicator of economic development, but if the increase in
2017-06-20
∘ Elguja Mekvabishvili ∘
STRUCTURAL CHANGES IN ECONOMY IN TERMS OF CRISIS THEORY
Summary The work describes the nature of world economy’s structural changes in the epoch of globalization. The main focus is made on developing the financial sector at a very fast pace and turning it into the main driving force of economic growth. Characterized the contradictions, that accompany this process and indicated that the mechanism for solving the resistance between the real and financial sectors of the modern economy is the economic crisis. It contains both - destructive and constructive elements and is a necessary condition for the recovery of the economic
2017-06-20
STRUCTURAL CHANGES IN ECONOMY IN TERMS OF CRISIS THEORY
Summary The work describes the nature of world economy’s structural changes in the epoch of globalization. The main focus is made on developing the financial sector at a very fast pace and turning it into the main driving force of economic growth. Characterized the contradictions, that accompany this process and indicated that the mechanism for solving the resistance between the real and financial sectors of the modern economy is the economic crisis. It contains both - destructive and constructive elements and is a necessary condition for the recovery of the economic
2017-06-20
∘ Nugzar Paichadze ∘
QUASI-FIXED COSTS ON WORK AS THE FACTOR OF MARKET FORMATION AND FUNCTIONING
Summary This work is performed in relation to the issues of quasi-fixed costs influence on market formation and functioning of working forces. On the basis of critical analysis of scientific literature existed about the given problems, are considered such actual issues as: the essence and types of labor quasi-fixed costs; its nature and the factors determining its size; labor quasi-fixed costs in relation to newcomers’ hiring and training and when hiring the newcomer workers, some types of discrimination concerning this costs. There are given the author’s point of view over this topic. At the end of the article, on the basis of scientific study of the issues concerning the labor quasi-fixed costs being in force at Georgian organizations and brief critical analysis of the organization’s leading employee’s
2017-06-20
QUASI-FIXED COSTS ON WORK AS THE FACTOR OF MARKET FORMATION AND FUNCTIONING
Summary This work is performed in relation to the issues of quasi-fixed costs influence on market formation and functioning of working forces. On the basis of critical analysis of scientific literature existed about the given problems, are considered such actual issues as: the essence and types of labor quasi-fixed costs; its nature and the factors determining its size; labor quasi-fixed costs in relation to newcomers’ hiring and training and when hiring the newcomer workers, some types of discrimination concerning this costs. There are given the author’s point of view over this topic. At the end of the article, on the basis of scientific study of the issues concerning the labor quasi-fixed costs being in force at Georgian organizations and brief critical analysis of the organization’s leading employee’s
2017-06-20
∘ Vladimer Papava ∘
RETROECONOMICS AND BANKRUPTCY
Summary A necroeconomy, or a “dead economy,” in its essence, is the supply of goods manufactured using outdated technology for which (goods) there is no demand due to their low quality (or absence thereof) and/or high production costs but where demand is artificially generated by the government. This ugly economic phenomenon was identified for the purposes of the post-Communist economy since the elimination of competition under the conditions of a command economy wiped out the economic interest to upgrade the technological base in many sectors of the economy (generally, with the exception of the military-industrial complex). Due to the fact that the restriction of competition is a precondition for the creation of a necroeconomy, it can be concluded that the phenomenon of the necroeconomy is present wherever enterprises with technologically obsolete equipment operate solely at the expense of government support. One example of this can be found in the India of
2017-06-20
RETROECONOMICS AND BANKRUPTCY
Summary A necroeconomy, or a “dead economy,” in its essence, is the supply of goods manufactured using outdated technology for which (goods) there is no demand due to their low quality (or absence thereof) and/or high production costs but where demand is artificially generated by the government. This ugly economic phenomenon was identified for the purposes of the post-Communist economy since the elimination of competition under the conditions of a command economy wiped out the economic interest to upgrade the technological base in many sectors of the economy (generally, with the exception of the military-industrial complex). Due to the fact that the restriction of competition is a precondition for the creation of a necroeconomy, it can be concluded that the phenomenon of the necroeconomy is present wherever enterprises with technologically obsolete equipment operate solely at the expense of government support. One example of this can be found in the India of
2017-06-20
∘ Marina Radieva ∘
ANTI-CORRUPTION LEGISLATION OF UKRAINE WITHIN THE CONTEXT OF TERRITJRIAL REFORM
Annotation.Anti-corruption legislation of Ukraine is reflected in the 17 main legal acts. Reforming of the legislation started with adoption of Law of Ukraine «On principles of prevention and countering of corruption in Ukraine». At the moment, the basic legal act in Ukraine is Law of Ukraine «On Prevention of Corruption». Law defines legal and organizational basis of the system of preventing corruption in Ukraine, the content and the implementation of preventive anti-corruption mechanisms, rules to eliminate the consequences of corruption. The main objectives of the Law are: harmonization of Ukrainian legislation with international norms and legal standards, the definition of a common approach to the understanding of the nature of corruption, the varieties of corruption activities, legislative regulation of legal liability for corruption. Key words: anti-corruption policy, Law of Ukraine, National Agency for Prevention of Corruption, corruption, corruption
2017-06-20
ANTI-CORRUPTION LEGISLATION OF UKRAINE WITHIN THE CONTEXT OF TERRITJRIAL REFORM
Annotation.Anti-corruption legislation of Ukraine is reflected in the 17 main legal acts. Reforming of the legislation started with adoption of Law of Ukraine «On principles of prevention and countering of corruption in Ukraine». At the moment, the basic legal act in Ukraine is Law of Ukraine «On Prevention of Corruption». Law defines legal and organizational basis of the system of preventing corruption in Ukraine, the content and the implementation of preventive anti-corruption mechanisms, rules to eliminate the consequences of corruption. The main objectives of the Law are: harmonization of Ukrainian legislation with international norms and legal standards, the definition of a common approach to the understanding of the nature of corruption, the varieties of corruption activities, legislative regulation of legal liability for corruption. Key words: anti-corruption policy, Law of Ukraine, National Agency for Prevention of Corruption, corruption, corruption
2017-06-20
∘ Avtandil Silagadze ∘
FROM THE HISTORY OF GEORGIAN ECONOMIC THINKING
Summary The feudal age in Georgia gave way to multiple economic thoughts that are still significant these days. This article covers one of those thoughts - The Code of Laws of Beka and Agbuga (XIII-XIV cc.) published in Georgian, which, first of all, is dedicated to the issues of regional governance. According to the author, a number of ideas expressed in the Code precede the creation of the School of Mercantilism. The Code is an important historical source for market economy researchers, because it determined several essential issues of the economy in general, and agriculture, industry and financial-credit relations, in particular. The Code includes several noteworthy opinions concerning the possibility to hire a labour force and labour remuneration, which to some extent was an innovation for the thinking of that
2017-06-20
FROM THE HISTORY OF GEORGIAN ECONOMIC THINKING
Summary The feudal age in Georgia gave way to multiple economic thoughts that are still significant these days. This article covers one of those thoughts - The Code of Laws of Beka and Agbuga (XIII-XIV cc.) published in Georgian, which, first of all, is dedicated to the issues of regional governance. According to the author, a number of ideas expressed in the Code precede the creation of the School of Mercantilism. The Code is an important historical source for market economy researchers, because it determined several essential issues of the economy in general, and agriculture, industry and financial-credit relations, in particular. The Code includes several noteworthy opinions concerning the possibility to hire a labour force and labour remuneration, which to some extent was an innovation for the thinking of that
2017-06-20
∘ Magbat Spanov ∘ Kuralai Nurgalieva ∘
SELF-EMPLOYMENT: AS A FACTOR OF ECONOMIC GROWTH
Summary This article provides a study of a conglomerate of various groups of self-employed population in two regions of Kazakhstan, including urban and rural areas, by regions and spheres of activity, for the possibility of comparing the indicators of the development or underdevelopment of the socioeconomic system of the Republic of Kazakhstan with the global trends of the evaluation of self-employed people. A set of measures is proposed to reduce the number of self-employed people and their inclusion in the economic activities of the
2017-06-20
SELF-EMPLOYMENT: AS A FACTOR OF ECONOMIC GROWTH
Summary This article provides a study of a conglomerate of various groups of self-employed population in two regions of Kazakhstan, including urban and rural areas, by regions and spheres of activity, for the possibility of comparing the indicators of the development or underdevelopment of the socioeconomic system of the Republic of Kazakhstan with the global trends of the evaluation of self-employed people. A set of measures is proposed to reduce the number of self-employed people and their inclusion in the economic activities of the
2017-06-20
∘ Olesya Stroeva ∘ Innara Lyapina ∘ Elena Sibirskaya ∘
NATIONAL INNOVATION ECONOMY: DEVELOPMENT PERSPECTIVES
Summary The article touches upon the most actual topic for today, dedicated to the prospects of development of the national innovation economy. The authors present the evolution of approaches to the formation of the national innovation system; the National Technological Initiative and its main aspects of implementation are described in detail. ent of the socioeconomic system of the Republic of Kazakhstan with the global trends of the evaluation of self-employed people. A set of measures is proposed to reduce the number of self-employed people and their inclusion in the economic activities of the
2017-06-20
NATIONAL INNOVATION ECONOMY: DEVELOPMENT PERSPECTIVES
Summary The article touches upon the most actual topic for today, dedicated to the prospects of development of the national innovation economy. The authors present the evolution of approaches to the formation of the national innovation system; the National Technological Initiative and its main aspects of implementation are described in detail. ent of the socioeconomic system of the Republic of Kazakhstan with the global trends of the evaluation of self-employed people. A set of measures is proposed to reduce the number of self-employed people and their inclusion in the economic activities of the
2017-06-20
∘ Avtandil Sulaberidze ∘
FORMULATION OF SECOND DEMOGRAPHIC DIVIDENDS ON THE BACKGROUND OF EU AND POSTCOMUNIST COUNTRIES IN GEORGIA
Summary Compared to global demographic situations, significance of Georgia is that in terms of population accounting, Georgia is similar to developed countries and in terms of outer migration is similar to less developed countries for 2016 January 1 number of population of Georgia compared to 1999 reduced by 1730 (↓31.7%) and is – 3720.4. Population reduced in cities as well as in villages but reduction of population mostly affected villages, its population reduced by 33.9%, while in case of cities it reduced by 28.9%. Every year number of depopulated villages increases. Only after 2002 until 2014 more than 60 village of Georgia was depopulated and it got 223. Demographic aging in Georgia occurred as far as 1959, during “baby boom” when part of the population over age 65 was 7.7% of whole population. With this official indicator life expectancy age 72.7 was equal to current age – 73.0, and it means that, this indicator was characterized by stagnation in
2017-06-20
FORMULATION OF SECOND DEMOGRAPHIC DIVIDENDS ON THE BACKGROUND OF EU AND POSTCOMUNIST COUNTRIES IN GEORGIA
Summary Compared to global demographic situations, significance of Georgia is that in terms of population accounting, Georgia is similar to developed countries and in terms of outer migration is similar to less developed countries for 2016 January 1 number of population of Georgia compared to 1999 reduced by 1730 (↓31.7%) and is – 3720.4. Population reduced in cities as well as in villages but reduction of population mostly affected villages, its population reduced by 33.9%, while in case of cities it reduced by 28.9%. Every year number of depopulated villages increases. Only after 2002 until 2014 more than 60 village of Georgia was depopulated and it got 223. Demographic aging in Georgia occurred as far as 1959, during “baby boom” when part of the population over age 65 was 7.7% of whole population. With this official indicator life expectancy age 72.7 was equal to current age – 73.0, and it means that, this indicator was characterized by stagnation in
2017-06-20
∘ Teimuraz Shengelia ∘
ORGANIZATIONAL TRUST, AS FACTOR OF SOCIAL CAPITAL, AND ITS INFLUENCE ON THE MOTIVATION OF INTERNATIONAL COMPANY
Annotation.Conception of the social capital is based on the phenomenon of confidence. On the basis of ethical and philosophical analysis of the category of confidence it can be convincingly said that without this category development of the society is impossible only by the economic mechanisms. The present study, on the basis of theoretical-methodological, regressive analysis of categories of the social capital and confidence, establishes those empiric relations, which exist between these two categories. Key words:social capital, motivation, methodology of measuring, corporations, efficiency. Introduction The scientists have determined that a level of the unterpersonal and organizational confidence positively influences motivation of the company employees. Volume of confidence accumulated by the social system is its basic capital. Confidence, as a component part of the corporative culture, in the modern competitive economy is a far greater problem than
2017-06-20
ORGANIZATIONAL TRUST, AS FACTOR OF SOCIAL CAPITAL, AND ITS INFLUENCE ON THE MOTIVATION OF INTERNATIONAL COMPANY
Annotation.Conception of the social capital is based on the phenomenon of confidence. On the basis of ethical and philosophical analysis of the category of confidence it can be convincingly said that without this category development of the society is impossible only by the economic mechanisms. The present study, on the basis of theoretical-methodological, regressive analysis of categories of the social capital and confidence, establishes those empiric relations, which exist between these two categories. Key words:social capital, motivation, methodology of measuring, corporations, efficiency. Introduction The scientists have determined that a level of the unterpersonal and organizational confidence positively influences motivation of the company employees. Volume of confidence accumulated by the social system is its basic capital. Confidence, as a component part of the corporative culture, in the modern competitive economy is a far greater problem than
2017-06-20
∘ Mikheil Chikviladze ∘
RADICAL CHANGES IN THE TAX LEGISLATION AND STATE BUDGET
Summary Effective functioning of economic system in any country highly depends on precise organization of tax system, therefore it is important to create essential conditions for development of tax base through correcting tax rates, that will compliment to increasing of agricultural activities, attracting of investments, raising employment rate etc. The state should create additional incentives for increasing financial resources. During determining reasonable tax rates, it is necessary to follow optimum, which assumes replenishment of the budget income and remaining portion of income to taxpayers, that will enable them to expand the scale of production and create new
2017-06-20
RADICAL CHANGES IN THE TAX LEGISLATION AND STATE BUDGET
Summary Effective functioning of economic system in any country highly depends on precise organization of tax system, therefore it is important to create essential conditions for development of tax base through correcting tax rates, that will compliment to increasing of agricultural activities, attracting of investments, raising employment rate etc. The state should create additional incentives for increasing financial resources. During determining reasonable tax rates, it is necessary to follow optimum, which assumes replenishment of the budget income and remaining portion of income to taxpayers, that will enable them to expand the scale of production and create new
2017-06-20
∘ Eter Kharaisvili ∘ Ekaterine Zviadadze ∘
PRIORITIES FOR FOOD SECURITY AND SUSTAINABLE DEVELOPMENT OF AGRICULTURAL SECTOR IN GEORGIA
Summary The paper evaluates the role of food security and sustainable development of agricultural sector in improving welfare of the population. Production parameters in agriculture in Georgia and the indicators of self-sufficiency of key agricultural products are analyzed and based on the comparative analysis of these figures and corresponding European data the problems of food security are discussed. Based on the research and expert interviews, the problems facing food security and sustainable development of agricultural sector are identified; in particular, these are low level of agricultural development, small-scale farming, high prices on agricultural products, high inflation rate, undesirable ratio of export and import of agricultural products, low investments, and weak political and budgetary support for the agricultural sector. Conclusions are made regarding the problems identified and recommendations are suggested.
2017-06-20
PRIORITIES FOR FOOD SECURITY AND SUSTAINABLE DEVELOPMENT OF AGRICULTURAL SECTOR IN GEORGIA
Summary The paper evaluates the role of food security and sustainable development of agricultural sector in improving welfare of the population. Production parameters in agriculture in Georgia and the indicators of self-sufficiency of key agricultural products are analyzed and based on the comparative analysis of these figures and corresponding European data the problems of food security are discussed. Based on the research and expert interviews, the problems facing food security and sustainable development of agricultural sector are identified; in particular, these are low level of agricultural development, small-scale farming, high prices on agricultural products, high inflation rate, undesirable ratio of export and import of agricultural products, low investments, and weak political and budgetary support for the agricultural sector. Conclusions are made regarding the problems identified and recommendations are suggested.
2017-06-20
∘ Nanuli Arevadze ∘
NATIONAL INNOVATION SYSTEMS OF SINGAPURE AND MALAYSIA
Summary The article analyzes peculiarities and development stages of national innovation systems formation of Singapure and Malaysia implemented on the basis of large-scale attraction of state, private sector and foreign capital. It is shown that close cooperation between state bodies, public sector and scientific circles and significant state investment in science made possible quick innovative development. The analysis of comparative data showed the advantage of national innovation system of Singapure over its `great neighbor“. ral sector. Conclusions are made regarding the problems identified and recommendations are suggested.
2017-06-20
NATIONAL INNOVATION SYSTEMS OF SINGAPURE AND MALAYSIA
Summary The article analyzes peculiarities and development stages of national innovation systems formation of Singapure and Malaysia implemented on the basis of large-scale attraction of state, private sector and foreign capital. It is shown that close cooperation between state bodies, public sector and scientific circles and significant state investment in science made possible quick innovative development. The analysis of comparative data showed the advantage of national innovation system of Singapure over its `great neighbor“. ral sector. Conclusions are made regarding the problems identified and recommendations are suggested.
2017-06-20
∘ George Bregvadze ∘
THE INNOVATION POLICY OF TURKEY
Summary It is discussed an innovative policy of Turkey, it is shown analyzes of results and method of approaches, which Turkey has reached with new innovative policy development and implementation le analyzes peculiarities and development stages of national innovation systems formation of Singapure and Malaysia implemented on the basis of large-scale attraction of state, private sector and foreign capital. It is shown that close cooperation between state bodies, public sector and scientific circles and significant state investment in science made possible quick innovative development. The analysis of comparative data showed the advantage of national innovation system of Singapure over its `great neighbor“. ral sector. Conclusions are made regarding the problems identified and recommendations are suggested.
2017-06-20
THE INNOVATION POLICY OF TURKEY
Summary It is discussed an innovative policy of Turkey, it is shown analyzes of results and method of approaches, which Turkey has reached with new innovative policy development and implementation le analyzes peculiarities and development stages of national innovation systems formation of Singapure and Malaysia implemented on the basis of large-scale attraction of state, private sector and foreign capital. It is shown that close cooperation between state bodies, public sector and scientific circles and significant state investment in science made possible quick innovative development. The analysis of comparative data showed the advantage of national innovation system of Singapure over its `great neighbor“. ral sector. Conclusions are made regarding the problems identified and recommendations are suggested.
2017-06-20
∘ Nata Davlasheridze ∘
SOME ASPECTS OF REGIONAL INNOVATIVE DEVELOPMENT
Summary At the present stage one of the main conditions for economic progress is the development of a regional innovation system and the development of a corresponding regional innovation policy. The paper discusses topical issues of regional innovation policy, trying to find the most rational solutions that could ensure not only expanding budgetary support for R & D in both fundamental and applied research, but also to take a number of concrete measures and actions designed to intensify the process of transformation of new knowledge into commercial innovative products and technologies. In particular, it is noted that in the US the regional technology clusters are a critical component of innovation policy and the most important driver of economic growth. The innovative policy in Russia is also of interest, which is built taking into account the innovation policy of the United States. It is noted that despite the difference in innovation policy in different countries, it has a
2017-06-20
SOME ASPECTS OF REGIONAL INNOVATIVE DEVELOPMENT
Summary At the present stage one of the main conditions for economic progress is the development of a regional innovation system and the development of a corresponding regional innovation policy. The paper discusses topical issues of regional innovation policy, trying to find the most rational solutions that could ensure not only expanding budgetary support for R & D in both fundamental and applied research, but also to take a number of concrete measures and actions designed to intensify the process of transformation of new knowledge into commercial innovative products and technologies. In particular, it is noted that in the US the regional technology clusters are a critical component of innovation policy and the most important driver of economic growth. The innovative policy in Russia is also of interest, which is built taking into account the innovation policy of the United States. It is noted that despite the difference in innovation policy in different countries, it has a
2017-06-20
∘ Lina Datunashvili ∘
THE ROLE OF THE EU IN THE DEVELOPMENT OF INNOVATIVE SYSTEMS
Summary The article covers the possibilities and challenges brought by globalization to the EU countries in modern conditions of development of the world economy that are trying to achieve leadership positions by implementing innovations in different fields of economy. The essence of the innovative system, the importance and the need for the formation and development of these systems in the countries of the EU contributed to the ongoing processes in the world, such as: rapid growth of the modern economy, increased relationship between capital and labor market, the formation and use of knowledge and technologies, most importantly, the production of competitive goods and its export. The article examines four national models of the national innovative system, taking into account the national peculiarities and economic potential, such as: 1. "Euro Atlantic" (EU countries: Germany, France, Italy, Finland, Great Britain and others); 2. "East Asian" (Japan, Taiwan, Hong Kong, South Korea
2017-06-20
THE ROLE OF THE EU IN THE DEVELOPMENT OF INNOVATIVE SYSTEMS
Summary The article covers the possibilities and challenges brought by globalization to the EU countries in modern conditions of development of the world economy that are trying to achieve leadership positions by implementing innovations in different fields of economy. The essence of the innovative system, the importance and the need for the formation and development of these systems in the countries of the EU contributed to the ongoing processes in the world, such as: rapid growth of the modern economy, increased relationship between capital and labor market, the formation and use of knowledge and technologies, most importantly, the production of competitive goods and its export. The article examines four national models of the national innovative system, taking into account the national peculiarities and economic potential, such as: 1. "Euro Atlantic" (EU countries: Germany, France, Italy, Finland, Great Britain and others); 2. "East Asian" (Japan, Taiwan, Hong Kong, South Korea
2017-06-20
∘ Lia Dvalishvili ∘
GLOBALIZATION OF SCIENCE AND INNOVATIONS
Summary Science as a sphere of creative activity always was global but only in the second part of XX century it became a production field of new knowledge and technologies. There are mentioned initial scientific researches, which laid down the foundation for modern innovation. There are noted innovations that have been created according to the use of scientific knowledge. The challenges of scientific-technical progress and necessary conditions for their solution are given in the article. The article emphasizes the vital necessity of innovations and the increase of costs in science. Recommendations to implement long-run innovation policy to use widely ecologically pure, technically safe technologies are
2017-06-20
GLOBALIZATION OF SCIENCE AND INNOVATIONS
Summary Science as a sphere of creative activity always was global but only in the second part of XX century it became a production field of new knowledge and technologies. There are mentioned initial scientific researches, which laid down the foundation for modern innovation. There are noted innovations that have been created according to the use of scientific knowledge. The challenges of scientific-technical progress and necessary conditions for their solution are given in the article. The article emphasizes the vital necessity of innovations and the increase of costs in science. Recommendations to implement long-run innovation policy to use widely ecologically pure, technically safe technologies are
2017-06-20
∘ Sohrab Isaev ∘
THE PROBLEMS OF THE FORMATION OF NATIONAL INNOVATION SYSTEM
Summary In the article analyzes the current situation of innovation activity in Azerbaijan Republic. Described problems of the formation national innovation system and measures of organizational, economic and institutional nature. Finally are proposed to improve the strategy for enhancing technological and innovation activities in the
2017-06-20
THE PROBLEMS OF THE FORMATION OF NATIONAL INNOVATION SYSTEM
Summary In the article analyzes the current situation of innovation activity in Azerbaijan Republic. Described problems of the formation national innovation system and measures of organizational, economic and institutional nature. Finally are proposed to improve the strategy for enhancing technological and innovation activities in the
2017-06-20
∘ Eter Kakulia ∘ Nana Bibilashvili ∘
SMALL BUSINESS: THE FACTOR OF INNOVATIVE DEVELOPMENT OF THE ECONOMY
Summary The advantages of small businesses are discussed with respect to large and medium business. This preference features makes it an innovative factor. It is about the types of an innovative, small organization. Small business as an act of self-awareness in innovations. The advantages of small business in the field of innovation are outlined. It concerns the issues of small business, large enterprises (corporations), scientific institutions and educational institutions in the field of CSMS. The reasons for the effectiveness of small business efficiency are investigated. The innovative structure of the economy is summed up briefly, listed and characterized by their types. The innovative features of small business are highlighted, the areas where small innovative business is more represented. The article discusses the work done in the direction of the development of innovative economy and knowledge economy, in particular, on small and medium business strategy and importance
2017-06-20
SMALL BUSINESS: THE FACTOR OF INNOVATIVE DEVELOPMENT OF THE ECONOMY
Summary The advantages of small businesses are discussed with respect to large and medium business. This preference features makes it an innovative factor. It is about the types of an innovative, small organization. Small business as an act of self-awareness in innovations. The advantages of small business in the field of innovation are outlined. It concerns the issues of small business, large enterprises (corporations), scientific institutions and educational institutions in the field of CSMS. The reasons for the effectiveness of small business efficiency are investigated. The innovative structure of the economy is summed up briefly, listed and characterized by their types. The innovative features of small business are highlighted, the areas where small innovative business is more represented. The article discusses the work done in the direction of the development of innovative economy and knowledge economy, in particular, on small and medium business strategy and importance
2017-06-20
∘ Ketevan Kitsmarishvili ∘
PROGRESSIVE INDUSTRIAL TECHNOLOGIES
Summary Technology is a description of industrial procedures and instructions of their execution, technological standards (time limit), schedules and maps. From the standpoint of some researchers, technology is an activity resulting achievement of set objective and after that the operand is changed. But from the standpoints of others, it is the method of realization through breaking up complex procedure, when certain elements are united in the system of related procedures and operations; totality of knowledge about the means and methods of organization of social procedures or those actions itself through which are achieved set
2017-06-20
PROGRESSIVE INDUSTRIAL TECHNOLOGIES
Summary Technology is a description of industrial procedures and instructions of their execution, technological standards (time limit), schedules and maps. From the standpoint of some researchers, technology is an activity resulting achievement of set objective and after that the operand is changed. But from the standpoints of others, it is the method of realization through breaking up complex procedure, when certain elements are united in the system of related procedures and operations; totality of knowledge about the means and methods of organization of social procedures or those actions itself through which are achieved set
2017-06-20
∘ Irine Mamaladze ∘ Maia Kapanadze ∘
RESTRUCTURING OF A FIRM IN THE CONDITIONS OF MARKET ECONOMY
Summary The main aim of any firm in market economy is profit maximization. It constantly strengthens a role of multinational corporations in the world market. As concerns mixed economy, here the main reason is increase of competitiveness of a production, firm and the whole economy. Competitive advantages of firms provide not reusable maximum profit, but optimum income in an average and long-term outlook. Only that firm has a chance to save the made production, which has more competitive advantages and not the firm that has maximum yield. In such conditions adjusting to new conditions of operation becomes the main task of restructuring, also transformation of the firm into such a flexible system that will soon be able to adjust environmental
2017-06-20
RESTRUCTURING OF A FIRM IN THE CONDITIONS OF MARKET ECONOMY
Summary The main aim of any firm in market economy is profit maximization. It constantly strengthens a role of multinational corporations in the world market. As concerns mixed economy, here the main reason is increase of competitiveness of a production, firm and the whole economy. Competitive advantages of firms provide not reusable maximum profit, but optimum income in an average and long-term outlook. Only that firm has a chance to save the made production, which has more competitive advantages and not the firm that has maximum yield. In such conditions adjusting to new conditions of operation becomes the main task of restructuring, also transformation of the firm into such a flexible system that will soon be able to adjust environmental
2017-06-20
∘ Irine Mamaladze ∘ Alexander Khvedeliani ∘
THE ROLE OF VENTURE CAPITAL IN THE INNOVATIVE ECONOMY
Summary The major global trend of modern society formation is the transition from raw materials and industrial economy to the "new economy", sometimes called the “knowledge based economy”. The innovative economy is based on intellectual resources, scientific and information technologies. Georgia has repeatedly stated about the transition to innovative path of our economic development. But the simple announcement will not give us an expected outcome. Discovery of system innovations in the structure of production factors will result in a certain imbalance in the existing system and require the reviewing of factors combinations, searching for their optimal mix, and possibly determine the creation of new and complex factors that are in line with the modern stage of market development. One of the complex factors that have resulted from synergies of existing factors is a venture capital that, together with innovative direction, considers the enhanced risks of economic
2017-06-20
THE ROLE OF VENTURE CAPITAL IN THE INNOVATIVE ECONOMY
Summary The major global trend of modern society formation is the transition from raw materials and industrial economy to the "new economy", sometimes called the “knowledge based economy”. The innovative economy is based on intellectual resources, scientific and information technologies. Georgia has repeatedly stated about the transition to innovative path of our economic development. But the simple announcement will not give us an expected outcome. Discovery of system innovations in the structure of production factors will result in a certain imbalance in the existing system and require the reviewing of factors combinations, searching for their optimal mix, and possibly determine the creation of new and complex factors that are in line with the modern stage of market development. One of the complex factors that have resulted from synergies of existing factors is a venture capital that, together with innovative direction, considers the enhanced risks of economic
2017-06-20
∘ Ioseb Masurashvili ∘ Aleksandre Mikeladze ∘
TECHNOLOGY TRANSFER AGREEMENTS AND THEIR GOALS IN INTERNATIONAL BUSINESS
Summary Technology transfer agreement can not be considered as an exception, if any one of competing economic agents is deprived of the possibility, to form the price of the product by their own discretion, which does not include the case of imposition of the maximum price or advice of the price, with respect of economic agents; can not also be considered as an exceptional case, when any competing economic agents has no the possibility of conducting research and development work, except for the cases when such restriction provides the protection of licensed
2017-06-20
TECHNOLOGY TRANSFER AGREEMENTS AND THEIR GOALS IN INTERNATIONAL BUSINESS
Summary Technology transfer agreement can not be considered as an exception, if any one of competing economic agents is deprived of the possibility, to form the price of the product by their own discretion, which does not include the case of imposition of the maximum price or advice of the price, with respect of economic agents; can not also be considered as an exceptional case, when any competing economic agents has no the possibility of conducting research and development work, except for the cases when such restriction provides the protection of licensed
2017-06-20
∘ Medea Melashvili ∘
HEALTHCARE INNOVATIVE PROJECTS THE NECESSITY OF INTRODUCTION
Summary Health Care is one of the most important areas in the field of service that should always remain in the forefront of the state's primary interests. Because the health of the population is the most valuable economic resource and since its defense is the primary task and the basis of state policy, the health care system funding should be a priority for the state. Today, three different forms of arrangement of health care sector are allocated: 1. State system (Great Britain, Greece, Denmark, Ireland, Italy, Sweden, Portugal, Norway and others); 2. Insurance system (Germany, France, Holland, Austria, Belgium, Switzerland, Japan and others); 3. Private (Paid) System (USA). In our country today is functioning so-called Insurance system. Since 2013, universal health care program has been launched in Georgia. According to the official information, 2 882 238 citizens were insured within 2 years of the universal healthcare program, and 358 166 527 GEL was allocated from the state
2017-06-20
HEALTHCARE INNOVATIVE PROJECTS THE NECESSITY OF INTRODUCTION
Summary Health Care is one of the most important areas in the field of service that should always remain in the forefront of the state's primary interests. Because the health of the population is the most valuable economic resource and since its defense is the primary task and the basis of state policy, the health care system funding should be a priority for the state. Today, three different forms of arrangement of health care sector are allocated: 1. State system (Great Britain, Greece, Denmark, Ireland, Italy, Sweden, Portugal, Norway and others); 2. Insurance system (Germany, France, Holland, Austria, Belgium, Switzerland, Japan and others); 3. Private (Paid) System (USA). In our country today is functioning so-called Insurance system. Since 2013, universal health care program has been launched in Georgia. According to the official information, 2 882 238 citizens were insured within 2 years of the universal healthcare program, and 358 166 527 GEL was allocated from the state
2017-06-20
∘ Iza Natelauri ∘
SOCIAL INNOVATIONS IN EU COUNTRIES: EXPERIENCE AND FOREIGN ECONOMIC ASPECTS
Summary Presented work is dedicated to innovative projects in health care, employment, education, environmental protection, that is social innovations on the example of EU countries (Germany, Denmark, Greece and etc.). It is emphasized as local individual and global social novelties and innovations. Against the background of globalization it is analyzed the role of foreign economic in the issue of activation of social
2017-06-20
SOCIAL INNOVATIONS IN EU COUNTRIES: EXPERIENCE AND FOREIGN ECONOMIC ASPECTS
Summary Presented work is dedicated to innovative projects in health care, employment, education, environmental protection, that is social innovations on the example of EU countries (Germany, Denmark, Greece and etc.). It is emphasized as local individual and global social novelties and innovations. Against the background of globalization it is analyzed the role of foreign economic in the issue of activation of social
2017-06-20
∘ Ilia (Aziko) Sisvadze ∘
OPTIMIZATION OF MONETARY POLICY: METHODOLOGICAL PROBLEMS
Summary The purpose of the work is to determine the optimal border of monetary policy for which its contradictory results - the growth rate of national income will be maximal and the inflation caused by the losses is minimal. In the theoretical, mathematical and marketing analysis methods, the functional attitudes of these results were analyzed in the scale of cheap money policy, the results of which were confirmed by the seeking optimum. The results of the research are practical as well as theoretical for developing the optimal monetary policy of the National
2017-06-20
OPTIMIZATION OF MONETARY POLICY: METHODOLOGICAL PROBLEMS
Summary The purpose of the work is to determine the optimal border of monetary policy for which its contradictory results - the growth rate of national income will be maximal and the inflation caused by the losses is minimal. In the theoretical, mathematical and marketing analysis methods, the functional attitudes of these results were analyzed in the scale of cheap money policy, the results of which were confirmed by the seeking optimum. The results of the research are practical as well as theoretical for developing the optimal monetary policy of the National
2017-06-20
∘ Tengiz Kavtaradze ∘
FUNCTIONING OF TECHNOLOGIES IN USA INNOVATIVE AGRICULTURE SYSTEMS AND GENERALIZATION OF THEIR EXPERIENCE IN GEORGIA
Summary The work studies the functioning of tecnoparks, in US innovative agriculture systems as an innovative infrastructure facility and their utility in Georgia. In this terms the first thing in the work is to talk about a strong reserve of the increase in meat production in the US and German Federal Republic, such as the removal of pig in the early 2-3 days and the generalization of their experiences in Georgia. For the first time a proposal is offered for the increase of livestock feeding, to prepare food waste processing factories near large cities in Georgia like the US and other developed countries. The expediency of the production of sugar as liquid sugar for the food industry is
2017-06-20
FUNCTIONING OF TECHNOLOGIES IN USA INNOVATIVE AGRICULTURE SYSTEMS AND GENERALIZATION OF THEIR EXPERIENCE IN GEORGIA
Summary The work studies the functioning of tecnoparks, in US innovative agriculture systems as an innovative infrastructure facility and their utility in Georgia. In this terms the first thing in the work is to talk about a strong reserve of the increase in meat production in the US and German Federal Republic, such as the removal of pig in the early 2-3 days and the generalization of their experiences in Georgia. For the first time a proposal is offered for the increase of livestock feeding, to prepare food waste processing factories near large cities in Georgia like the US and other developed countries. The expediency of the production of sugar as liquid sugar for the food industry is
2017-06-20
∘ Nunu Kistauri ∘
THE SIGNIFICANCE OF DEVELOPMENT OF INNOVATIVE-INVESTMENT POLICY IN GEORGIA
Summary For the development of country's economy is the most important role belongs to the formation of innovative-investment process. To stimulate innovative-investment activity is better to be implemented by the state. The experience of economically successful countries, who have achieved sustainable economic growth due to intensification of innovative activities and are presented in the world market in the form of innovative products, technologies and services, shows that the rates of development is determined by means of the of innovative activity organization and its supporting methods. To do this, one of the effective mechanisms is Public-Private Partnership Institute (“PPP”), “PPP” in the innovative field is institutional and organizational alliance between business and the state (state scientific organizations, scientific educational organizations, private businesses) to implement the innovative projects. “Public-Private Partnership”
2017-06-20
THE SIGNIFICANCE OF DEVELOPMENT OF INNOVATIVE-INVESTMENT POLICY IN GEORGIA
Summary For the development of country's economy is the most important role belongs to the formation of innovative-investment process. To stimulate innovative-investment activity is better to be implemented by the state. The experience of economically successful countries, who have achieved sustainable economic growth due to intensification of innovative activities and are presented in the world market in the form of innovative products, technologies and services, shows that the rates of development is determined by means of the of innovative activity organization and its supporting methods. To do this, one of the effective mechanisms is Public-Private Partnership Institute (“PPP”), “PPP” in the innovative field is institutional and organizational alliance between business and the state (state scientific organizations, scientific educational organizations, private businesses) to implement the innovative projects. “Public-Private Partnership”
2017-06-20
∘ Mzia Shelia ∘
STUDY OF THE ISSUE OF INTERGENERATIONAL TRANSFERS IN GEORGIA
Summary The study of the issue of intergenerational transfers at a macro level in Georgia has begun mainly since 1970s. Its needwas caused by considerable demographic changes, in particular, the demographic aging occurring in the population of Georgia. In that period, the country had already become demographically aged, with the share of its inhabitants aged 60 and over amounting to 12,5%. In the post-Soviet period, the process of study of this issue became more active, especially after the year 2000. The system of social protection established during the period of demographic growth required modernizationunder the conditions of market economy. Respectively, the issue of pension age was actively discussed as it was planned to move from the solidarity (distributive) pension system to the cumulative pension system; however, no large-scale scientific research of this issue was performed. Recommendations with respect to changes to the system of pension provision were drafted based only
2017-06-20
STUDY OF THE ISSUE OF INTERGENERATIONAL TRANSFERS IN GEORGIA
Summary The study of the issue of intergenerational transfers at a macro level in Georgia has begun mainly since 1970s. Its needwas caused by considerable demographic changes, in particular, the demographic aging occurring in the population of Georgia. In that period, the country had already become demographically aged, with the share of its inhabitants aged 60 and over amounting to 12,5%. In the post-Soviet period, the process of study of this issue became more active, especially after the year 2000. The system of social protection established during the period of demographic growth required modernizationunder the conditions of market economy. Respectively, the issue of pension age was actively discussed as it was planned to move from the solidarity (distributive) pension system to the cumulative pension system; however, no large-scale scientific research of this issue was performed. Recommendations with respect to changes to the system of pension provision were drafted based only
2017-06-20
∘ Mikheil Chikviladze ∘ Tamar Atanelishvili ∘ Nodar Silagadze ∘
HISTORICAL ASPECTS OF STATE FINANCIAL CONTROL IN GEORGIA
Summary This article covers some aspects of establishment and functioning of the financial control body. In particular, the following issues are discussed: Short-term experience in functioning of the “State Controller” in the Democratic Republic of Georgia (1918-1921); some aspects of the Chamber of Control and its successor State Audit Office in post-Soviet period. According to the findings of the research, at the first stage, the independent control institute could not function fully due to forceful “sovietization” of Georgia; the scopes of activities of the Control Institute which began functioning in the beginning of the 1990s has systematically been expanding and it is integrated with international profiling organizations; recently, this Institute has undergone reforms which led to the establishment of the State Audit Office with reformed functions. Its legal base mainly meets modern requirements and the ”Institute” is an important supporting
2017-06-20
HISTORICAL ASPECTS OF STATE FINANCIAL CONTROL IN GEORGIA
Summary This article covers some aspects of establishment and functioning of the financial control body. In particular, the following issues are discussed: Short-term experience in functioning of the “State Controller” in the Democratic Republic of Georgia (1918-1921); some aspects of the Chamber of Control and its successor State Audit Office in post-Soviet period. According to the findings of the research, at the first stage, the independent control institute could not function fully due to forceful “sovietization” of Georgia; the scopes of activities of the Control Institute which began functioning in the beginning of the 1990s has systematically been expanding and it is integrated with international profiling organizations; recently, this Institute has undergone reforms which led to the establishment of the State Audit Office with reformed functions. Its legal base mainly meets modern requirements and the ”Institute” is an important supporting
2017-06-20
∘ Tina Chkheidze ∘ Ketevan Kveladze ∘
PORTUGUESE EXAMPLE OF INNOVATIVE DEVELOPMENT
Summary The article deals with the situation in of Portugal an innovative development as of one of the EU member states. Portugal does not possess nanotechnologies, but dominates in the introduction and development of technologies. It is shown that the measures taken by Portugal for the development of nanotechnology represent the country as progressive enough not only in Europe, but throughout the world. The course taken for Portugal's innovation development and the resulting out comes indicate the correct strategy for economic development selected by the country, whose 80% of population was quite illiterate forty years ago. Portugal underwent a tight economic restructuring economic policy and in three years (covering external debt) overcame financial crisis and refused creditors for new
2017-06-20
PORTUGUESE EXAMPLE OF INNOVATIVE DEVELOPMENT
Summary The article deals with the situation in of Portugal an innovative development as of one of the EU member states. Portugal does not possess nanotechnologies, but dominates in the introduction and development of technologies. It is shown that the measures taken by Portugal for the development of nanotechnology represent the country as progressive enough not only in Europe, but throughout the world. The course taken for Portugal's innovation development and the resulting out comes indicate the correct strategy for economic development selected by the country, whose 80% of population was quite illiterate forty years ago. Portugal underwent a tight economic restructuring economic policy and in three years (covering external debt) overcame financial crisis and refused creditors for new
2017-06-20
∘ Marine Tsutskiridze ∘
INFLUENCE OF INNOVATION SYSTEM ON THE EUROINTEGRATION PROCESSES OF DEVELOPMENT OF ENTERPRENEURSHIP
Summary The article discuses the aspects of the development of Entrepreneurship and its Eurointegration process; analysis actual issues of enterprise integration in the conditions of Enterpreneurial system formation. Where are given the characteristic of Innovation system, of its sectors and managerial aspects and its influencing on the Eurointegration
2017-06-20
INFLUENCE OF INNOVATION SYSTEM ON THE EUROINTEGRATION PROCESSES OF DEVELOPMENT OF ENTERPRENEURSHIP
Summary The article discuses the aspects of the development of Entrepreneurship and its Eurointegration process; analysis actual issues of enterprise integration in the conditions of Enterpreneurial system formation. Where are given the characteristic of Innovation system, of its sectors and managerial aspects and its influencing on the Eurointegration
2017-06-20
∘ Tsitsino Dzotsenidze ∘ Ana Kiriakidi ∘
GEO-ECONOMICS’ RELATION WITH EVOLUTIONARY THEORY, CULTURAL DIMENSION AND REALPOLITICS
Summary Success in international business is largely a matter of understanding and managing cultural differences. Neoclassical economics makes another wrong assumption here, with respect to what scientists call validity. It frequently assumes that an experiment done in one culture can be replicated with the same result in another culture. That is very often so; in many cases the result will not even be valid outside one particular social group. Culture matters, not just for the competitive advantage of nations, but for the performance of all organizations. “Cultural differences are the number one reason why companies fail overseas. The reasons we continue to make mistakes seem to be because our existing theories about cultures and “otherness” are misleading, and because we are forced to think within the bounds of what is politically correct. One example is our need to analyze situations according to the “us and them” dichotomy. Since we are separate
2017-06-20
GEO-ECONOMICS’ RELATION WITH EVOLUTIONARY THEORY, CULTURAL DIMENSION AND REALPOLITICS
Summary Success in international business is largely a matter of understanding and managing cultural differences. Neoclassical economics makes another wrong assumption here, with respect to what scientists call validity. It frequently assumes that an experiment done in one culture can be replicated with the same result in another culture. That is very often so; in many cases the result will not even be valid outside one particular social group. Culture matters, not just for the competitive advantage of nations, but for the performance of all organizations. “Cultural differences are the number one reason why companies fail overseas. The reasons we continue to make mistakes seem to be because our existing theories about cultures and “otherness” are misleading, and because we are forced to think within the bounds of what is politically correct. One example is our need to analyze situations according to the “us and them” dichotomy. Since we are separate
2017-06-20
∘ Maia Chania ∘
THE PRIORITIES OF GEORGIAN ECONOMIC DEVELOPMENT IN CONDITIONS OF GLOBALIZATION
Summary Economic globalization is one of the three main dimensions of globalization commonly found in academic literature, with the two other being political globalization and cultural globalization, as well as the general term of globalization.Economic globalization is the increasing economic integration and interdependence of national, regional, and local economies across the world through an intensification of cross-border movement of goods, services, technologies and capital. Whereas globalization is a broad set of processes concerning multiple networks of economic, political, and cultural interchange, contemporary economic globalization is propelled by the rapid growing significance of information in all types of productive activities and marketization, and by developments in science and technology. Economic globalization primarily comprises the globalization of production, finance, markets, technology, organizational regimes, institutions, corporations and labor. While
2017-06-20
THE PRIORITIES OF GEORGIAN ECONOMIC DEVELOPMENT IN CONDITIONS OF GLOBALIZATION
Summary Economic globalization is one of the three main dimensions of globalization commonly found in academic literature, with the two other being political globalization and cultural globalization, as well as the general term of globalization.Economic globalization is the increasing economic integration and interdependence of national, regional, and local economies across the world through an intensification of cross-border movement of goods, services, technologies and capital. Whereas globalization is a broad set of processes concerning multiple networks of economic, political, and cultural interchange, contemporary economic globalization is propelled by the rapid growing significance of information in all types of productive activities and marketization, and by developments in science and technology. Economic globalization primarily comprises the globalization of production, finance, markets, technology, organizational regimes, institutions, corporations and labor. While
2017-06-20
∘ Tamila Arnania-Kepuladze ∘ Giorgi Kepuladze ∘
ECONOMIC INEQUALITY AND POVERTY IN THE INDIVIDUAL AND GLOBAL CONTEXT
Summary The modern society faces many social, economic, political and other problems the most important of which are socio-economic inequality and poverty. The socio-economic inequality of human beings and nations has always been and remains to be a problem that is common to all countries and thus has a global character. Socio-economic inequality and poverty are one of the most important and ever-present problems in the modern world. An elimination of poverty is one of the biggest challenges of nowadays’ reality. Among the seven global risks that the world will face to the nearest ten years, The Global Risks Report 2017 (Davos, January 11, 2017) mentions economic inequality and social stratification. This paper offers to consider poverty from two positions: in the individualcontext (or micro-level position) and global context (or macro- and meso- level position). Proceeding from global context of poverty, the answers to the next questions should be done: Why some
2017-06-20
ECONOMIC INEQUALITY AND POVERTY IN THE INDIVIDUAL AND GLOBAL CONTEXT
Summary The modern society faces many social, economic, political and other problems the most important of which are socio-economic inequality and poverty. The socio-economic inequality of human beings and nations has always been and remains to be a problem that is common to all countries and thus has a global character. Socio-economic inequality and poverty are one of the most important and ever-present problems in the modern world. An elimination of poverty is one of the biggest challenges of nowadays’ reality. Among the seven global risks that the world will face to the nearest ten years, The Global Risks Report 2017 (Davos, January 11, 2017) mentions economic inequality and social stratification. This paper offers to consider poverty from two positions: in the individualcontext (or micro-level position) and global context (or macro- and meso- level position). Proceeding from global context of poverty, the answers to the next questions should be done: Why some
2017-06-20
∘ Izteleu Bibatirova ∘ Kuralai Nurgalieva ∘
THE FACTORS FOR THE IMPLEMENTATION OF THE CONCEPT OF "SUSTAINABLE DEVELOPMENT" IN KAZAKHSTAN
Summary This article examines important factors for the implementation of the concept of "Sustainable Development" in Kazakhstan. These factors include the quality of human capital and the development of the innovation sphere. Their special role and their impact on the country's ecological and economic system are underlined. Using the statistical material, the level of their development in Kazakhstan is shown. The article is intended for a wide range of readers, as well as for those, who are interested in studying the concept of "Sustainable
2017-06-20
THE FACTORS FOR THE IMPLEMENTATION OF THE CONCEPT OF "SUSTAINABLE DEVELOPMENT" IN KAZAKHSTAN
Summary This article examines important factors for the implementation of the concept of "Sustainable Development" in Kazakhstan. These factors include the quality of human capital and the development of the innovation sphere. Their special role and their impact on the country's ecological and economic system are underlined. Using the statistical material, the level of their development in Kazakhstan is shown. The article is intended for a wide range of readers, as well as for those, who are interested in studying the concept of "Sustainable
2017-06-20
∘ Tamaz Gamsakhurdia ∘ Teimuraz Pestvenidze ∘
EFFECTIVE USE OF COUNTRY RESOURCES REQUIRES PROPER MANAGEMENT
Summary The paper deals with the improvement of the economic potential of the country and the improvement of the welfare of the workers on the correct economic policy of the government. It also shows that policy development is connected with the legislative and executive authorities of the country, highly qualified and experienced staff working in this field, that should take care of making highly effective decision, reform and its control. The officials of all branches of the government should be interested in solving the citizens’ problems of their country. The government must focus on progressive technologies, innovations, reforms, and all those innovations that are necessary for the well-being of the country's population. The paper concludes historical facts about how our ancestors took care about developing the country and the welfare of the population in the distant feudal era. It also deals with the correct assessment of natural resources and their rational and
2017-06-20
EFFECTIVE USE OF COUNTRY RESOURCES REQUIRES PROPER MANAGEMENT
Summary The paper deals with the improvement of the economic potential of the country and the improvement of the welfare of the workers on the correct economic policy of the government. It also shows that policy development is connected with the legislative and executive authorities of the country, highly qualified and experienced staff working in this field, that should take care of making highly effective decision, reform and its control. The officials of all branches of the government should be interested in solving the citizens’ problems of their country. The government must focus on progressive technologies, innovations, reforms, and all those innovations that are necessary for the well-being of the country's population. The paper concludes historical facts about how our ancestors took care about developing the country and the welfare of the population in the distant feudal era. It also deals with the correct assessment of natural resources and their rational and
2017-06-20
∘ Simon Gelashvili ∘ Giorgi Mikeladze ∘
ECONOMETRIC AND STATISTICAL MODELS OF INVESTMENT AND POSSIBILITIES OF THEIR EMPIRICAL REALIZATION ON EXAMPLE OF GEORGIA
Summary Investment is an important indicator of a country's economy. It not only enables the creation and maintenance of capital, but also is an essential source of economic growth. The paper reviews Base models and their modified types of investment’s five differentmodels (Investments Autoregressive, Tobin’s q, Neoclassical, Monetary, Naive and Flexible accelerator models). The paper estimates pros and cons of each investment’s model. The article includes critical analysis of the results of Richard Kopcke’s research on example of USA and possibilities for their use on Georgian economy. The paper discusses examples of the possible problems for the future research on Georgian economy’s example and the alternative methods to solve
2017-06-20
ECONOMETRIC AND STATISTICAL MODELS OF INVESTMENT AND POSSIBILITIES OF THEIR EMPIRICAL REALIZATION ON EXAMPLE OF GEORGIA
Summary Investment is an important indicator of a country's economy. It not only enables the creation and maintenance of capital, but also is an essential source of economic growth. The paper reviews Base models and their modified types of investment’s five differentmodels (Investments Autoregressive, Tobin’s q, Neoclassical, Monetary, Naive and Flexible accelerator models). The paper estimates pros and cons of each investment’s model. The article includes critical analysis of the results of Richard Kopcke’s research on example of USA and possibilities for their use on Georgian economy. The paper discusses examples of the possible problems for the future research on Georgian economy’s example and the alternative methods to solve
2017-06-20
∘ Tsitsino Tetrauli ∘
THE REASONS AND FORMS OF ECONOMIC FLUCTUATIONS
Summary The paper deals with the reasons and forms of economic fluctuations. The nature and peculiarities of economic cycles, their impact on the development of macroeconomics are analyzed. The economic cycle phases are
2017-06-20
THE REASONS AND FORMS OF ECONOMIC FLUCTUATIONS
Summary The paper deals with the reasons and forms of economic fluctuations. The nature and peculiarities of economic cycles, their impact on the development of macroeconomics are analyzed. The economic cycle phases are
2017-06-20
∘ Lia Totladze ∘ Mamuka Khuskivadze ∘
CONSUMER CONFIDENCE INDICATOR ASONE OF LEADING ECONOMIC INDICATOR
Annotation.Consumer confidence indices exemplify the potential contribution of the psychological dimension in economic science. Consumer confidence indicator under cognitive expression influence on economy. Its agenda is focused on understanding the role of the consumer in the transition economy and on analysis of consumer confidence index dynamic in Georgia. The objective of research is to investigate the relationship between consumers' expectations about the future of the economy and economic growth. In other words is there relationship between psychological aspects and economy, is there influence consumer confidence index on aggregative economic indicator such economic growth. Changes in consumer confidence help to explain real economic variables and be the useful in helping to forecast the real economy. Keywords: Consumer confidence indicator, forecasting, leading economic indicators. Business cycle theories found their way into the economic theories at the
2017-06-20
CONSUMER CONFIDENCE INDICATOR ASONE OF LEADING ECONOMIC INDICATOR
Annotation.Consumer confidence indices exemplify the potential contribution of the psychological dimension in economic science. Consumer confidence indicator under cognitive expression influence on economy. Its agenda is focused on understanding the role of the consumer in the transition economy and on analysis of consumer confidence index dynamic in Georgia. The objective of research is to investigate the relationship between consumers' expectations about the future of the economy and economic growth. In other words is there relationship between psychological aspects and economy, is there influence consumer confidence index on aggregative economic indicator such economic growth. Changes in consumer confidence help to explain real economic variables and be the useful in helping to forecast the real economy. Keywords: Consumer confidence indicator, forecasting, leading economic indicators. Business cycle theories found their way into the economic theories at the
2017-06-20
∘ Murman Kvaratskhelia ∘
POVERTY REDUCTION – THE MAIN CHALLENGE OF GEORGIAS ECONOMY
Summary The article reviews the most urgent challenges of market economy - unemployment problems in postcommunist Georgia. It analyzes the causes and the main factors that have contributed to the development of those extraordinary trends that are characteristic to modern stage of economic development. The article also discusses the system of poverty and poverty indexes in the society. The author emphasizes the challenges of rural population, most of which are not statistically included in the category of
2017-06-20
POVERTY REDUCTION – THE MAIN CHALLENGE OF GEORGIAS ECONOMY
Summary The article reviews the most urgent challenges of market economy - unemployment problems in postcommunist Georgia. It analyzes the causes and the main factors that have contributed to the development of those extraordinary trends that are characteristic to modern stage of economic development. The article also discusses the system of poverty and poverty indexes in the society. The author emphasizes the challenges of rural population, most of which are not statistically included in the category of
2017-06-20
∘ Leila Mamulashvili ∘ Maka Sosanidze ∘
MACROECONOMIC POLICY AS AN IMPORTANT GUIDELINE FOR GOVERNING ECONOMIC BEHAVIOR
Summary Flexiblemacroeconomic policy is an important factor for maintaining macroeconomic stability and economic growth.Its significance lies in the fact that it deals with all spheres of public life, and macroeconomic indicators clearly show where and how they should be aimed at improving the welfare of human resources. Macroeconomic policies are the government's economic measures adopted in this area, actions and goals of the system, objectives and interests of economic processes giving directions, economic behavior and controlling them to influence. Macroeconomic policy includes two main levers of economic management: fiscal (budget and finance) and monetary (money-credit). Fiscal policy is the main tool of economic stability. Wrong fiscal policy can lead to serious negative consequences for the national economy. Except fiscal and monetary tools which gain pure economic character, other factors also effect on the formation of the macroeconomic
2017-06-20
MACROECONOMIC POLICY AS AN IMPORTANT GUIDELINE FOR GOVERNING ECONOMIC BEHAVIOR
Summary Flexiblemacroeconomic policy is an important factor for maintaining macroeconomic stability and economic growth.Its significance lies in the fact that it deals with all spheres of public life, and macroeconomic indicators clearly show where and how they should be aimed at improving the welfare of human resources. Macroeconomic policies are the government's economic measures adopted in this area, actions and goals of the system, objectives and interests of economic processes giving directions, economic behavior and controlling them to influence. Macroeconomic policy includes two main levers of economic management: fiscal (budget and finance) and monetary (money-credit). Fiscal policy is the main tool of economic stability. Wrong fiscal policy can lead to serious negative consequences for the national economy. Except fiscal and monetary tools which gain pure economic character, other factors also effect on the formation of the macroeconomic
2017-06-20
∘ Murad Mikeladze ∘ Ilyas Ciloglu ∘
THE CURRENT ISSUES OF ECONOMIC DEVELOPMENT UNDER GLOBALIZATION
Summary In the given work we elaborate on current global issues based on existing facts and relevant data. Globalization is a positive phenomenon in international economics in general, however, it can be used in a negative ways as well, such as offshore zones that are frequently used for inappropriate goals for a particular country/society. In the same manner, interconnectedness between countries has grown as a result of globalization when economic factors may be used as a tool of political influence. As the current tendencies show, a country which adopts inappropriate policies on an international scale, will eventually pay the price in economic terms.
2017-06-20
THE CURRENT ISSUES OF ECONOMIC DEVELOPMENT UNDER GLOBALIZATION
Summary In the given work we elaborate on current global issues based on existing facts and relevant data. Globalization is a positive phenomenon in international economics in general, however, it can be used in a negative ways as well, such as offshore zones that are frequently used for inappropriate goals for a particular country/society. In the same manner, interconnectedness between countries has grown as a result of globalization when economic factors may be used as a tool of political influence. As the current tendencies show, a country which adopts inappropriate policies on an international scale, will eventually pay the price in economic terms.
2017-06-20
∘ Zurab Nozadze ∘
THE IMPACT OF ECONOMIC AND FINANCIAL CRISIS ON ENVIRONMENT
Summary The article deals with the causes of impact of financial and economic crisis on environment, special recommendations and measures are envisaged for the improvement of exiting situation using widely the innovation directions innature managing. as a tool of political influence. As the current tendencies show, a country which adopts inappropriate policies on an international scale, will eventually pay the price in economic terms.
2017-06-20
THE IMPACT OF ECONOMIC AND FINANCIAL CRISIS ON ENVIRONMENT
Summary The article deals with the causes of impact of financial and economic crisis on environment, special recommendations and measures are envisaged for the improvement of exiting situation using widely the innovation directions innature managing. as a tool of political influence. As the current tendencies show, a country which adopts inappropriate policies on an international scale, will eventually pay the price in economic terms.
2017-06-20
∘ Volodymyr Polivanov ∘ Andrii Oliinyk ∘
CURRENCY AND EXCHANGE RATE POLICY TRANSFORMATION OF UKRAINE IN COOPERATION WITH THE IMF
Summary For the last years Ukraine has experienced macroeconomic misbalances caused with inefficiency of economy and uncompetitive choices in exchange rate policy. A 2014-2015 crisis highlighted all sides of country`s disadvantages in the international community. It stems from institutional aspects, like absence of monetary, financial discipline, corruption of authorities to economic and currency policy, like exchange rate inflexibility, current account deficits. According to the Ukraine-IMF Memorandums of Economic and Financial Policies, Ukraine take steps forward exchange rate flexibility and inflation targeting. Although IMF’s decisions are market-determined and aimed to financial stabilization through flexible devaluation, monetary restriction, inflation managing, it is hard to consider that this program achieved an undeniable success in Ukraine. Following this issue, the article evaluates the problems of the Ukraine-IMF collaboration in currency and exchange rate policy
2017-06-20
CURRENCY AND EXCHANGE RATE POLICY TRANSFORMATION OF UKRAINE IN COOPERATION WITH THE IMF
Summary For the last years Ukraine has experienced macroeconomic misbalances caused with inefficiency of economy and uncompetitive choices in exchange rate policy. A 2014-2015 crisis highlighted all sides of country`s disadvantages in the international community. It stems from institutional aspects, like absence of monetary, financial discipline, corruption of authorities to economic and currency policy, like exchange rate inflexibility, current account deficits. According to the Ukraine-IMF Memorandums of Economic and Financial Policies, Ukraine take steps forward exchange rate flexibility and inflation targeting. Although IMF’s decisions are market-determined and aimed to financial stabilization through flexible devaluation, monetary restriction, inflation managing, it is hard to consider that this program achieved an undeniable success in Ukraine. Following this issue, the article evaluates the problems of the Ukraine-IMF collaboration in currency and exchange rate policy
2017-06-20
∘ Ramaz Putkaradze ∘
EUROPEAN FREE TRADE ASSOCIATION (EFTA) AND GEORGIA
Summary There is lack of studies of European Free Trade Association (EFTA) in Georgian economic literature. The present paper studies historical aspects of this association, its member states and their role, as well as trade and economic cooperation between EFTA and Georgia. The European Free Trade Association is a free trade organization between four European countries: Iceland, Liechtenstein, Norway and Switzerland. The main goal of the organization is to encourage trade relations and economic integration between the member states. There are no custom taxes between the member states but foreign trade tariffs with third countries are maintained. EFTA was one of the reasons why its founding countries did not want or could not join the European Union. In the frames of the free trade agreement gradual abolition of the trade tariffs on manufactured goods was intended, however, foreign trade tariffs were not abolished. The member states thought that such integration would allow them to
2017-06-20
EUROPEAN FREE TRADE ASSOCIATION (EFTA) AND GEORGIA
Summary There is lack of studies of European Free Trade Association (EFTA) in Georgian economic literature. The present paper studies historical aspects of this association, its member states and their role, as well as trade and economic cooperation between EFTA and Georgia. The European Free Trade Association is a free trade organization between four European countries: Iceland, Liechtenstein, Norway and Switzerland. The main goal of the organization is to encourage trade relations and economic integration between the member states. There are no custom taxes between the member states but foreign trade tariffs with third countries are maintained. EFTA was one of the reasons why its founding countries did not want or could not join the European Union. In the frames of the free trade agreement gradual abolition of the trade tariffs on manufactured goods was intended, however, foreign trade tariffs were not abolished. The member states thought that such integration would allow them to
2017-06-20
∘ Anna Chechel ∘ Svetlana Verytelnyk ∘
THE PRINCIPAL DIRECTIONS OF DECENTRALIZATION IN UKRAINE
Annotation. The article researches the issue of decentralization of power in Ukraine. Key areas of regulation as regional and local development, forming of local communities, fiscal decentralization, and distribution of powers between the executive and local governments have been determined. The main concerns to achieve the aim are: lack of financial independence of communities, non-completeness of reforms in the areas of health, education, culture, the difficulty of implementing proprietary rights of community on municipal property. To eliminate defined issues in the article the measures have been proposed that will form self-sufficient local communities that will contribute to the development of economic potential. Keywords: decentralization of power, regional and local development, self-sufficient local communities The reform on the organization of local authorities and local government on the principles of decentralization is the most important area of systemic change of the
2017-06-20
THE PRINCIPAL DIRECTIONS OF DECENTRALIZATION IN UKRAINE
Annotation. The article researches the issue of decentralization of power in Ukraine. Key areas of regulation as regional and local development, forming of local communities, fiscal decentralization, and distribution of powers between the executive and local governments have been determined. The main concerns to achieve the aim are: lack of financial independence of communities, non-completeness of reforms in the areas of health, education, culture, the difficulty of implementing proprietary rights of community on municipal property. To eliminate defined issues in the article the measures have been proposed that will form self-sufficient local communities that will contribute to the development of economic potential. Keywords: decentralization of power, regional and local development, self-sufficient local communities The reform on the organization of local authorities and local government on the principles of decentralization is the most important area of systemic change of the
2017-06-20
∘ Malkhaz Chikobava ∘
THE GLOBAL ECONOMIC CRISIS AND ALTERNATIVE MONEY
Summary In the article we are talking only about this aspect of experience, like the creation of alternative money. Today, more and more often we hear such new words as "crypto-currency", "digital money", "virtual currency", "electronic money", "bitcoins", "electronic wallets", "block money", "alternative money", "Network money ", etc. A few years ago a very narrow circle of people used such a lexicon - mathematicians, programmers, specialists in payment and communication systems, cryptographers from banks and special services. New crypto-tools are called "currency", "money". However, this is an obvious exaggeration. The main function of any money is a "measure of value," with the help of money, prices for goods, services, assets, labor, etc. are determined. Even modern official currencies do not perform this function well, because the world has a paper-money standard, and currency rates "walk". Similarly, it is doubtful that the crypto-currency would perform such a monetary
2017-06-20
THE GLOBAL ECONOMIC CRISIS AND ALTERNATIVE MONEY
Summary In the article we are talking only about this aspect of experience, like the creation of alternative money. Today, more and more often we hear such new words as "crypto-currency", "digital money", "virtual currency", "electronic money", "bitcoins", "electronic wallets", "block money", "alternative money", "Network money ", etc. A few years ago a very narrow circle of people used such a lexicon - mathematicians, programmers, specialists in payment and communication systems, cryptographers from banks and special services. New crypto-tools are called "currency", "money". However, this is an obvious exaggeration. The main function of any money is a "measure of value," with the help of money, prices for goods, services, assets, labor, etc. are determined. Even modern official currencies do not perform this function well, because the world has a paper-money standard, and currency rates "walk". Similarly, it is doubtful that the crypto-currency would perform such a monetary
2017-06-20
∘ Giorgi Kharshiladze ∘
GLOBALIZATION AND ECONOMY OF GEORGIA: PERSPECTIVE, MAIN CHALLENGES
Summary Economic globalization is one of the three main dimensions of globalization commonly found in academic literature, with the two other being political globalization and cultural globalization. Economic globalization is the increasing economic integration and independence of national, regional and local economies across the world through an intensification of cross-border movement of goods, services, technologies and capital. Whereas globalization is a broad set of processes concerning multiple networks of economic, political and cultural interchange, contemporary economic globalization is propelled by the rapid growing significance of information in all types of productive activities and by developments in science and technology. Nowadays, in the world exists a new trend, which is reflected in the fact that is formatted new competitive situation, is tightened types of competitive struggles. According to this, countries must have adequate policy for economic development,
2017-06-20
GLOBALIZATION AND ECONOMY OF GEORGIA: PERSPECTIVE, MAIN CHALLENGES
Summary Economic globalization is one of the three main dimensions of globalization commonly found in academic literature, with the two other being political globalization and cultural globalization. Economic globalization is the increasing economic integration and independence of national, regional and local economies across the world through an intensification of cross-border movement of goods, services, technologies and capital. Whereas globalization is a broad set of processes concerning multiple networks of economic, political and cultural interchange, contemporary economic globalization is propelled by the rapid growing significance of information in all types of productive activities and by developments in science and technology. Nowadays, in the world exists a new trend, which is reflected in the fact that is formatted new competitive situation, is tightened types of competitive struggles. According to this, countries must have adequate policy for economic development,
2017-06-20
∘ Khatuna Berishvili ∘
SOCIAL RESPONSIBILITY OF BUSINESS IN THE COUNTRIES OF SOCIO-DEMOCRATIC MODEL
Summary A circle of the countries, which share the conception of policy of business social responsibility, keep permanently widening. It is also clear that within the world scale economically developing countries intensively join economically developed countries, which have a long history of arrangements of corporation political responsibility. For the society the business social responsibility is more a political image of an integration social state and of a new type labor market with concealed segmentation. The present article discusses political peculiarities of business political responsibility in the countries of socio-democratic model. To share this experience is of great importance for
2017-06-20
SOCIAL RESPONSIBILITY OF BUSINESS IN THE COUNTRIES OF SOCIO-DEMOCRATIC MODEL
Summary A circle of the countries, which share the conception of policy of business social responsibility, keep permanently widening. It is also clear that within the world scale economically developing countries intensively join economically developed countries, which have a long history of arrangements of corporation political responsibility. For the society the business social responsibility is more a political image of an integration social state and of a new type labor market with concealed segmentation. The present article discusses political peculiarities of business political responsibility in the countries of socio-democratic model. To share this experience is of great importance for
2017-06-20
∘ Madona Gelashvili ∘
INVESTMENT DECISION AS A SOCIAL EVENT
Summary Investment activities in the country and economic development of the country are in proportional relationship. Therefore, the state should pay great attention to the issues of implementation of investment policies. Main goal of our work is gaining in-depth understanding of the state investment politics and formulate our vision of improvement of investment policies and intensification of investment activities. For the purpose of improvement of investment policies of the country the following is necessary: reasonable allocation of investments by industries, sectors, economic priorities; ensuring proper direction of the investment cycle; activation of the investment processes; as well as interlinking of investment and innovation processes
2017-06-20
INVESTMENT DECISION AS A SOCIAL EVENT
Summary Investment activities in the country and economic development of the country are in proportional relationship. Therefore, the state should pay great attention to the issues of implementation of investment policies. Main goal of our work is gaining in-depth understanding of the state investment politics and formulate our vision of improvement of investment policies and intensification of investment activities. For the purpose of improvement of investment policies of the country the following is necessary: reasonable allocation of investments by industries, sectors, economic priorities; ensuring proper direction of the investment cycle; activation of the investment processes; as well as interlinking of investment and innovation processes
2017-06-20
∘ Rusudan Gogokhia ∘
SOME SIMPLE APPROACHES TO GENERATE NEW IDEAS IN THE WORKPLACE
Summary Some simple approaches to generate new ideas in the workplace - innovation excellence good ideas just happen. Everyone has the potential to be creative. It is not connected to the innate intelligence we all possess. It is in the way we live, work and enjoy.Creativity is a random act of awareness, which pops out of nowhere and always turns into a raw or an unrefined thing into something beautiful, real and of great value.Creativity is the act of turning new and imaginative ideas into reality. Wikipedia on Creativity says that Creativity is a phenomenon whereby something new or somehow valuable is formed. The created item is usually
2017-06-20
SOME SIMPLE APPROACHES TO GENERATE NEW IDEAS IN THE WORKPLACE
Summary Some simple approaches to generate new ideas in the workplace - innovation excellence good ideas just happen. Everyone has the potential to be creative. It is not connected to the innate intelligence we all possess. It is in the way we live, work and enjoy.Creativity is a random act of awareness, which pops out of nowhere and always turns into a raw or an unrefined thing into something beautiful, real and of great value.Creativity is the act of turning new and imaginative ideas into reality. Wikipedia on Creativity says that Creativity is a phenomenon whereby something new or somehow valuable is formed. The created item is usually
2017-06-20
∘ Volodymyr Kutsenko ∘
METHODOLOGY FOR EVALUATION OF SUSTAINABLE ENTERPRISE DEVELOPMENT
Summary The article presents the methodology (spiritually philosophical sense) for evaluation of sustainable enterprise development (SED). SED defining direction is determined - the spiritual and moral culture of the individual and collective which influences all types of economic activity, sustainable (life-giving) development and its long-term security. Cultural-historical, unprecedented spiritual and material experience in household development starting with the world-famous heritage of our architects –Tripoli culture, the Golden Age of the Christian KievanRus, showed the whole world that a stable improvement in the quality of life and harmonious development of society is possible only based on the spiritual and moral principles of workers' unification and livelihoods. Therefore, many researchers left out-of-site the criteria of a truly leading component of sustainable development, i.e. spiritual and moral development of the work collective, which is the key to
2017-06-20
METHODOLOGY FOR EVALUATION OF SUSTAINABLE ENTERPRISE DEVELOPMENT
Summary The article presents the methodology (spiritually philosophical sense) for evaluation of sustainable enterprise development (SED). SED defining direction is determined - the spiritual and moral culture of the individual and collective which influences all types of economic activity, sustainable (life-giving) development and its long-term security. Cultural-historical, unprecedented spiritual and material experience in household development starting with the world-famous heritage of our architects –Tripoli culture, the Golden Age of the Christian KievanRus, showed the whole world that a stable improvement in the quality of life and harmonious development of society is possible only based on the spiritual and moral principles of workers' unification and livelihoods. Therefore, many researchers left out-of-site the criteria of a truly leading component of sustainable development, i.e. spiritual and moral development of the work collective, which is the key to
2017-06-20
∘ Elena Fomina ∘ Elena Ziza ∘
ECONOMIC BEHAVIOR OF BUSINESS ENTITIES UNDER THE CONDITIONS OF ECONOMIC SYSTEM TRANSFORMATION
Summary The article deals with the socio-economic behavior of business entities. It is indicated that economic behavior is a goal-oriented activity of an economic entity, regulated by the criterion of maximizing profits. The study is based on elucidating the behavioral characteristics of key micro-level entities, the producer and the consumer, the employer and the employee, taking into account the government influence on them. Economic behavior involves obtaining various benefits, maximizing utility from the use and recombination of economic resources. It was found out that economic behavior is characterized by such signs as rationality of activity, pragmatic motivation, relations of social and economic exchange. Rationality is reviewed as an empirical adequacy, reasonableness, meaningfulness of decision-making about the action under the existing conditions. Rationality of socio-economic behavior is formed under the relevant institutions influence, it structuring and guiding. The
2017-06-20
ECONOMIC BEHAVIOR OF BUSINESS ENTITIES UNDER THE CONDITIONS OF ECONOMIC SYSTEM TRANSFORMATION
Summary The article deals with the socio-economic behavior of business entities. It is indicated that economic behavior is a goal-oriented activity of an economic entity, regulated by the criterion of maximizing profits. The study is based on elucidating the behavioral characteristics of key micro-level entities, the producer and the consumer, the employer and the employee, taking into account the government influence on them. Economic behavior involves obtaining various benefits, maximizing utility from the use and recombination of economic resources. It was found out that economic behavior is characterized by such signs as rationality of activity, pragmatic motivation, relations of social and economic exchange. Rationality is reviewed as an empirical adequacy, reasonableness, meaningfulness of decision-making about the action under the existing conditions. Rationality of socio-economic behavior is formed under the relevant institutions influence, it structuring and guiding. The
2017-06-20
∘ Fati Shengelia ∘
THE ROLE OF STRATEGIC MANAGEMENT IN COMPANY’S ACTIVITY
Summary Strategic Management is one of the most important „hard skills“ in business management. Strategic management is the continuous planning, monitoring, analysis and assessment of all that is necessary for an organization to meet its goals and objectives. Strategic management involves the formulation and implementation of the major goals and initiatives taken by a company’s top management on behalf of owners, based on consideration of resources and assessment of the internal and external environments in which the organization competes. The strategic management process is more than just a set of rules to follow. It is a philosophical approach to business. The five stages of the process are goal-setting, analysis, strategy formation, strategy implementation and strategy
2017-06-20
THE ROLE OF STRATEGIC MANAGEMENT IN COMPANY’S ACTIVITY
Summary Strategic Management is one of the most important „hard skills“ in business management. Strategic management is the continuous planning, monitoring, analysis and assessment of all that is necessary for an organization to meet its goals and objectives. Strategic management involves the formulation and implementation of the major goals and initiatives taken by a company’s top management on behalf of owners, based on consideration of resources and assessment of the internal and external environments in which the organization competes. The strategic management process is more than just a set of rules to follow. It is a philosophical approach to business. The five stages of the process are goal-setting, analysis, strategy formation, strategy implementation and strategy
2017-06-20
∘ Manana Kharkheli ∘
EFFECTIVE MANAGEMENT OF CONFLICTS IN ORGANIZATIONS
Summary The paper deals with issues related to effective management of conflicts. In the research process, we set goal to find out what is conflict, what are the views of the conflict in the modern world, how goes process of conflict and what is important to take care of this process, paper also discusses the necessary steps for effective management of conflicts and develops recommendation. According to our research there is not one definition of conflict, which includes and can explain all aspects of what really means conflict, if we summer many scientific definitions, conflict is a process, in which struggles interest of its parts and it can be related to: faith, values, needs and resources. Also, as in conflict process are taking part people, who have different attitudes and stereotypes, conflict can be based on wrong interpretation. The cause of conflict can be based on structural, personal and resource grounds. Also, cause of conflict can be non effective communication. Despite
2017-06-20
EFFECTIVE MANAGEMENT OF CONFLICTS IN ORGANIZATIONS
Summary The paper deals with issues related to effective management of conflicts. In the research process, we set goal to find out what is conflict, what are the views of the conflict in the modern world, how goes process of conflict and what is important to take care of this process, paper also discusses the necessary steps for effective management of conflicts and develops recommendation. According to our research there is not one definition of conflict, which includes and can explain all aspects of what really means conflict, if we summer many scientific definitions, conflict is a process, in which struggles interest of its parts and it can be related to: faith, values, needs and resources. Also, as in conflict process are taking part people, who have different attitudes and stereotypes, conflict can be based on wrong interpretation. The cause of conflict can be based on structural, personal and resource grounds. Also, cause of conflict can be non effective communication. Despite
2017-06-20
∘ Givi Bedianashvili ∘
INSTITUTION CONCEPT FOR CULTURE IN CONTEXT OF STATES SOCIO-ECONOMIC DEVELOPMENT
Annotation. The research discusses the culture as a concept of informal instituteis introduced. The quantitative characteristics of culture have beenused to investigate the ratio of these indices for Georgia compared with the same indicators of the EU and various world states. Depending on the informal nature of the culture institute, it is noted that the long-term mechanism of culture transformation should be considered together with the institutionalizationprocess as a whole. Within the problem of the institutionalization it is of great importance to ensure the regular ratio of formal and informal institutes in the development of the country’s socio-economic institutional structure. The directions of long-term transformation of cultural values have been identified. Key Words:globalization, European integration, culture, informal institute, cultural dimensions Introduction In modern conditions, it is extremely important for Georgia, on the one hand, due to the
2017-06-20
INSTITUTION CONCEPT FOR CULTURE IN CONTEXT OF STATES SOCIO-ECONOMIC DEVELOPMENT
Annotation. The research discusses the culture as a concept of informal instituteis introduced. The quantitative characteristics of culture have beenused to investigate the ratio of these indices for Georgia compared with the same indicators of the EU and various world states. Depending on the informal nature of the culture institute, it is noted that the long-term mechanism of culture transformation should be considered together with the institutionalizationprocess as a whole. Within the problem of the institutionalization it is of great importance to ensure the regular ratio of formal and informal institutes in the development of the country’s socio-economic institutional structure. The directions of long-term transformation of cultural values have been identified. Key Words:globalization, European integration, culture, informal institute, cultural dimensions Introduction In modern conditions, it is extremely important for Georgia, on the one hand, due to the
2017-06-20
∘ Nana Benidze ∘ Jambul Bitsadze ∘
SUPPLY AND DEMAND IN INSURANCE
Summary The objectives of insurance marketing are: to provide profitable work in constantly changing conditions; Ensuring the competitiveness of the company in order to comply with the interests of customers, maintaining the public image of the insurer; Maximum satisfaction of customers' requests for the volume, structure and quality of services provided by the insurance company, which creates the conditions for the sustainability of business relations; Complex solution of commercial, organizational and social problems of the collective of the insurance company. As a method of managing the activities of insurance companies, marketing has been widely and fruitfully applied by Western insurers since the early 1960s. Marketing in insurance can be defined as the actions by which services reach customers. Analyzing the material, we can draw the following main conclusions: Currently, marketing has become one of the most modern methods of managing the activities of enterprises and
2017-06-20
SUPPLY AND DEMAND IN INSURANCE
Summary The objectives of insurance marketing are: to provide profitable work in constantly changing conditions; Ensuring the competitiveness of the company in order to comply with the interests of customers, maintaining the public image of the insurer; Maximum satisfaction of customers' requests for the volume, structure and quality of services provided by the insurance company, which creates the conditions for the sustainability of business relations; Complex solution of commercial, organizational and social problems of the collective of the insurance company. As a method of managing the activities of insurance companies, marketing has been widely and fruitfully applied by Western insurers since the early 1960s. Marketing in insurance can be defined as the actions by which services reach customers. Analyzing the material, we can draw the following main conclusions: Currently, marketing has become one of the most modern methods of managing the activities of enterprises and
2017-06-20
∘ Khatuna Todua ∘
THEANALYSIS OF THE PENSION SYSTEM REFORM IN GEORGIA
Summary The pension reform, in its essence, is a large-scaled project, which stands out with its high social importance, therefore a significant public and political interest is paid to it The pension reform, planned in Georgia, supposes the transition to a mixed pension model, which means providing pensions by budgeting funds on the one hand, and by saving schemes, on the other hand. According to the new system, the amount of pension provision is determined by amount of sum which is collected by person during his labor activity. In addition there will exist the social pension which will be covered by budget and it will be given to any citizen, regardless of his incomes, work experience etc. The social pension will be based on living minimum and it will satisfy the primitive needs of pensioners. Such a mixed model is regarded as optimal as it has more ability to diversify risks and also to respond to the
2017-06-20
THEANALYSIS OF THE PENSION SYSTEM REFORM IN GEORGIA
Summary The pension reform, in its essence, is a large-scaled project, which stands out with its high social importance, therefore a significant public and political interest is paid to it The pension reform, planned in Georgia, supposes the transition to a mixed pension model, which means providing pensions by budgeting funds on the one hand, and by saving schemes, on the other hand. According to the new system, the amount of pension provision is determined by amount of sum which is collected by person during his labor activity. In addition there will exist the social pension which will be covered by budget and it will be given to any citizen, regardless of his incomes, work experience etc. The social pension will be based on living minimum and it will satisfy the primitive needs of pensioners. Such a mixed model is regarded as optimal as it has more ability to diversify risks and also to respond to the
2017-06-20
∘ Khatuna Todua ∘
GEORGIAN PENSION SYSTEM – THE EXISTING REALITY AND THE MAIN CHALLENGES
Summary The perfection of pension system is a matter of major importance in the light of ongoing reforms in Georgia. The necessity of implementation of pension reform is dictated by a political and economic expediency, current pension system model is not in compliance with an existing reality, most likely it will significantly hamper the economic development of country in the future and also it will deepen the resisting acute social problems. That's why the radical pension reform is necessary in Georgia. Many developed and developing economies are modifying their pension systems nowadays, and this is extremely important reforms, because pensions risks are increasing through the time and the governments will have to take care on more citizen's pension. The goal of reforms is to address more effectively the issues of retirement income adequacy, financial sustainability of fiscal budgets and demographic trends in the
2017-06-20
GEORGIAN PENSION SYSTEM – THE EXISTING REALITY AND THE MAIN CHALLENGES
Summary The perfection of pension system is a matter of major importance in the light of ongoing reforms in Georgia. The necessity of implementation of pension reform is dictated by a political and economic expediency, current pension system model is not in compliance with an existing reality, most likely it will significantly hamper the economic development of country in the future and also it will deepen the resisting acute social problems. That's why the radical pension reform is necessary in Georgia. Many developed and developing economies are modifying their pension systems nowadays, and this is extremely important reforms, because pensions risks are increasing through the time and the governments will have to take care on more citizen's pension. The goal of reforms is to address more effectively the issues of retirement income adequacy, financial sustainability of fiscal budgets and demographic trends in the
2017-06-20
∘ Lasha Kelikhashvili ∘
EDUCATION AS THE CAUSATIVE FACTOR OF SOCIAL INEQUALITY
Summary Social inequality and its reasons is very actual for economic science. There is not country with market economy and absolutely equal society but income and wealth is distributed more unequally in some societies than in another. While this problem is more actual in some countries, decreasing it is one of the key issue for policymakers in every country and Georgia is not an exemption. Economic theory indicates several factors causing inequality. Main factor is the unequal allocation of resources among the society members. This research focuses on social inequality as the problem causing the slowing down of economic growth. For this purpose, the level of the social inequality is considered as the function of human capital. The first goal of the research is to define the situation in Georgia in terms of social inequality and human capital relative to East European countries. Another goal of the research is to measure the relationship between social inequality and human capital,
2017-06-20
EDUCATION AS THE CAUSATIVE FACTOR OF SOCIAL INEQUALITY
Summary Social inequality and its reasons is very actual for economic science. There is not country with market economy and absolutely equal society but income and wealth is distributed more unequally in some societies than in another. While this problem is more actual in some countries, decreasing it is one of the key issue for policymakers in every country and Georgia is not an exemption. Economic theory indicates several factors causing inequality. Main factor is the unequal allocation of resources among the society members. This research focuses on social inequality as the problem causing the slowing down of economic growth. For this purpose, the level of the social inequality is considered as the function of human capital. The first goal of the research is to define the situation in Georgia in terms of social inequality and human capital relative to East European countries. Another goal of the research is to measure the relationship between social inequality and human capital,
2017-06-20
∘ Nana Kirvalidze ∘ Maia Jebashvili ∘
BEER PRODUCTION IN GEORGIA
Summary The article touches upon the subject of the importance of beer production factories based in Georgia. More specifically are the dynamics of beer production assortment structure, cost price and setting, as well as export and import tendencies, number of factories, number of employees and their pay. The authors note that there are no factories that produce raw and supplementary materials and that the local beer factories need to require the materials from outside the country. The produce that local breweries produce is competive and completely meet the requirements of the local demand. The consumers say that local beer is competitive and is of a high quality. The authors also touch upon the subject of protectionism necessary to local
2017-06-20
BEER PRODUCTION IN GEORGIA
Summary The article touches upon the subject of the importance of beer production factories based in Georgia. More specifically are the dynamics of beer production assortment structure, cost price and setting, as well as export and import tendencies, number of factories, number of employees and their pay. The authors note that there are no factories that produce raw and supplementary materials and that the local beer factories need to require the materials from outside the country. The produce that local breweries produce is competive and completely meet the requirements of the local demand. The consumers say that local beer is competitive and is of a high quality. The authors also touch upon the subject of protectionism necessary to local
2017-06-20
∘ Tamar Lazariashvili ∘
WINE MARKET DEVELOPMENT OPPORTUNITIES IN GEORGIA
Summary The paper discusses wine market development indicators, analyzes producing opportunities of wine in Georgia, studies competitive advantage in this sector, evaluates the role of government in development of this sector. The research underlines factors, which have an influence on wine demand and concludes that for Georgia wine is the part of traditions and historical identity. Economic development of Georgian regions, especially Kakheti, depends on the production and export of wine. Production of high quality wine is efficient for medium and large scale production. The paper discusses international markets of wine. There are recommended different activities to promote the positioning of Georgian wine on the international markets, for instance, promoting business development, providing stable macroeconomic environment, controlling activities for quality and safety, protecting the name of Georgian wine, implementing economic policy to attract investors, monitoring business,
2017-06-20
WINE MARKET DEVELOPMENT OPPORTUNITIES IN GEORGIA
Summary The paper discusses wine market development indicators, analyzes producing opportunities of wine in Georgia, studies competitive advantage in this sector, evaluates the role of government in development of this sector. The research underlines factors, which have an influence on wine demand and concludes that for Georgia wine is the part of traditions and historical identity. Economic development of Georgian regions, especially Kakheti, depends on the production and export of wine. Production of high quality wine is efficient for medium and large scale production. The paper discusses international markets of wine. There are recommended different activities to promote the positioning of Georgian wine on the international markets, for instance, promoting business development, providing stable macroeconomic environment, controlling activities for quality and safety, protecting the name of Georgian wine, implementing economic policy to attract investors, monitoring business,
2017-06-20
∘ Dali Sologhashvili ∘ Natalia Saghareishvili ∘
THE SHORTCOMINGS OF PROGRAM BUDGETING IN LOCAL SELF-GOVERNING UNITS
Summary The program budget is an alternative to the traditional structure of the budget and the advantage is that it is oriented towards the outcome of the planning process. The expenditures in it are divided by specific programs, and the cause-effectual linkages between the financial resources and the results obtained in the particular event are more visible. Program budget is defined by the OECD's definition of "budgeting that connects resources and measurable results". According to the United States Supreme Audit Agency (U.S General Accounting Office), "results-oriented budgeting means integrating information into the budgeting process." Program Budget - this is a plan on how resources should be used in the current fiscal year. The budget is the decision-making base and at the same time reporting weapons about how these decisions were made. The main advantage of the program budget is compared to the traditional, organizational structure budget that the program budget allows the
2017-06-20
THE SHORTCOMINGS OF PROGRAM BUDGETING IN LOCAL SELF-GOVERNING UNITS
Summary The program budget is an alternative to the traditional structure of the budget and the advantage is that it is oriented towards the outcome of the planning process. The expenditures in it are divided by specific programs, and the cause-effectual linkages between the financial resources and the results obtained in the particular event are more visible. Program budget is defined by the OECD's definition of "budgeting that connects resources and measurable results". According to the United States Supreme Audit Agency (U.S General Accounting Office), "results-oriented budgeting means integrating information into the budgeting process." Program Budget - this is a plan on how resources should be used in the current fiscal year. The budget is the decision-making base and at the same time reporting weapons about how these decisions were made. The main advantage of the program budget is compared to the traditional, organizational structure budget that the program budget allows the
2017-06-20
∘ Ketevan Kveladze ∘
THE IMPORTANCE OF INNOVATIVE MODEL DEVELOPMENT IN GEORGIA IN THE TOURISM SECTOR “DYNAMIC PACKAGING OF TOURS”
Summary The article discusses some of the main aspects of today challenges of modern tourism and their importance in the development of tourism business in Georgia: in particular, modern IT technologies and one of the innovative models of this information technology - "dynamic packaging of tours". Dynamic packaging of tours is a new technology for forming and realizing tour products when tour booking includes minimal set of services: flight and settling and envisages formation of tours in selected tourist destinations and payment at the moment of ordering. The paper deals with the importance of this model in the world and Georgian tourism market. The innovative technology of dynamic packaging in America and Europe has been more than 10 years old and in recent years, in Europe, almost 50% of tourists use this model. Many American and European tour companies have been able to use dynamic packaging to enhance tourism products assortment increase efficiency, take new consumer signs,
2017-06-20
THE IMPORTANCE OF INNOVATIVE MODEL DEVELOPMENT IN GEORGIA IN THE TOURISM SECTOR “DYNAMIC PACKAGING OF TOURS”
Summary The article discusses some of the main aspects of today challenges of modern tourism and their importance in the development of tourism business in Georgia: in particular, modern IT technologies and one of the innovative models of this information technology - "dynamic packaging of tours". Dynamic packaging of tours is a new technology for forming and realizing tour products when tour booking includes minimal set of services: flight and settling and envisages formation of tours in selected tourist destinations and payment at the moment of ordering. The paper deals with the importance of this model in the world and Georgian tourism market. The innovative technology of dynamic packaging in America and Europe has been more than 10 years old and in recent years, in Europe, almost 50% of tourists use this model. Many American and European tour companies have been able to use dynamic packaging to enhance tourism products assortment increase efficiency, take new consumer signs,
2017-06-20
∘ Lali Chagelishvili-Agladze ∘
GEORGIAN EDUCATIONAL MARKET AND CONCEPTUAL ISSUES OF ENTROPY IN THE CONTEXT OF GLOBAL COMPETITION
Summary The innovative century puts new competition conditions and it is the possession of information-network economy management tools without which, it is impossible to manage future and gain competitive advantages at global level. The purpose of the work paper is to study the nature of the entropy and its causes; Establishment of entropy management capabilities and roads at the corporate level. It contains the multilateral nature of entropy. Entropy as an economic phenomenon in the context of global competition is studied in the context of Georgian educational market. At the end of the work, the author brings the causes of natural and artificial entropy and gives recommendations to avoid adverse effects of
2017-06-20
GEORGIAN EDUCATIONAL MARKET AND CONCEPTUAL ISSUES OF ENTROPY IN THE CONTEXT OF GLOBAL COMPETITION
Summary The innovative century puts new competition conditions and it is the possession of information-network economy management tools without which, it is impossible to manage future and gain competitive advantages at global level. The purpose of the work paper is to study the nature of the entropy and its causes; Establishment of entropy management capabilities and roads at the corporate level. It contains the multilateral nature of entropy. Entropy as an economic phenomenon in the context of global competition is studied in the context of Georgian educational market. At the end of the work, the author brings the causes of natural and artificial entropy and gives recommendations to avoid adverse effects of
2017-06-20
∘ Nunu Achuashvili ∘ Sese Khatiashvili ∘
INFLATION AS A COMPLEX ECONOMIC PHENOMENON
Summary Inflation as a decrease of purchasing power of money is expressed in impairment of money, this is an important significant indicator of microeconomic instability, whose growth is followed by severe economic consequences. The negative impact of inflation is most clearly reflected in social sphere, it's socio-economic consequences are as follows: Impairment of monetary income and cash savings, Inflation is also a hidden confiscation of cash in the hands of the population through taxes and physical and legal entities are treated to a higher taxpayer, Inflation and money purchasing power are inversely proportional, The more the one increases, the second is reduced, People's hard-earned money buying ability deprive by increasing inflation, People have to buy fewer goods and services that lead to worsening of their quality of
2017-06-20
INFLATION AS A COMPLEX ECONOMIC PHENOMENON
Summary Inflation as a decrease of purchasing power of money is expressed in impairment of money, this is an important significant indicator of microeconomic instability, whose growth is followed by severe economic consequences. The negative impact of inflation is most clearly reflected in social sphere, it's socio-economic consequences are as follows: Impairment of monetary income and cash savings, Inflation is also a hidden confiscation of cash in the hands of the population through taxes and physical and legal entities are treated to a higher taxpayer, Inflation and money purchasing power are inversely proportional, The more the one increases, the second is reduced, People's hard-earned money buying ability deprive by increasing inflation, People have to buy fewer goods and services that lead to worsening of their quality of
2017-06-20
∘ Givi Bakradze ∘ Nanuli Dzimtseishvili ∘
SOME ACCOUNTING ISSUES AND TAXATION OF RETAINED EARNINGS
Annotation. The present article reviews changes in tax legislation and of Georgian legislation “Financial Accounting, Reporting, and Audit”, impact on business environment. Examines substance of profit tax reform and its replacement with tax of distributed profit .It is noted that replacement reform is quite compatible with international financial reporting standards. Although, introduction of this model does not ensure simplification of tax administration and tax legislation. It is mentioned that there is close connection between the amendments put into Georgian tax legislation and the Law of Georgia on “Financial Accounting, Reporting, and Audit”. Keywords: Financial accounting, tax accounting, tax legislation, profit tax, Estonian model. Creation of a stable business environment is inevitable precondition of country’s sustainable economic development, as well as solid guarantees of investment safety, inviolability of private property, and
2017-06-20
SOME ACCOUNTING ISSUES AND TAXATION OF RETAINED EARNINGS
Annotation. The present article reviews changes in tax legislation and of Georgian legislation “Financial Accounting, Reporting, and Audit”, impact on business environment. Examines substance of profit tax reform and its replacement with tax of distributed profit .It is noted that replacement reform is quite compatible with international financial reporting standards. Although, introduction of this model does not ensure simplification of tax administration and tax legislation. It is mentioned that there is close connection between the amendments put into Georgian tax legislation and the Law of Georgia on “Financial Accounting, Reporting, and Audit”. Keywords: Financial accounting, tax accounting, tax legislation, profit tax, Estonian model. Creation of a stable business environment is inevitable precondition of country’s sustainable economic development, as well as solid guarantees of investment safety, inviolability of private property, and
2017-06-20
∘ Nino Bitsadze ∘
MAIN INDICATORS OF "MIDDLE-INCOME TRAP" AND THE WAYS TO AVOID IT
Summary During the last two decades, both the press and economists have dedicated increasing attention to the so-called “middle-income trap.” This refers to a group of countries that became middle-income some time ago, but which have not been able to cross the high-income threshold. The problem with the debate of what prevents these countries from becoming high-income economies is that it is not clear what the trap refers to, as there is no accepted definition. The “middle-income trap” is the phenomenon that is characterized by rapidly developing countries who stop their economic growth after they reach the middle level. Is it possible that Georgia can be gambling in the above mentioned trap? This is a major question that might be facing Georgia and which is one of the most important issue for country's economic progress. The possible causes of "middle income trap" can be: Improving Immigration Flows, Insufficient Human Capital, Slow Technological Progress,
2017-06-20
MAIN INDICATORS OF "MIDDLE-INCOME TRAP" AND THE WAYS TO AVOID IT
Summary During the last two decades, both the press and economists have dedicated increasing attention to the so-called “middle-income trap.” This refers to a group of countries that became middle-income some time ago, but which have not been able to cross the high-income threshold. The problem with the debate of what prevents these countries from becoming high-income economies is that it is not clear what the trap refers to, as there is no accepted definition. The “middle-income trap” is the phenomenon that is characterized by rapidly developing countries who stop their economic growth after they reach the middle level. Is it possible that Georgia can be gambling in the above mentioned trap? This is a major question that might be facing Georgia and which is one of the most important issue for country's economic progress. The possible causes of "middle income trap" can be: Improving Immigration Flows, Insufficient Human Capital, Slow Technological Progress,
2017-06-20
∘ Tinatin Gugeshashvili ∘
THE ROLE OF FINANCIAL MANAGEMENT IN THE ISSUE OF EFFECTIVE INVESTMENT DECISIONS
Summary Wise investment decisions are based on the net present value rule. In this paper we can think about how to apply the rule to practical capital investment decisions. Our task is threefold. First, what should be discounted? We know the answer in principle: discount cash flows. But useful forecasts of cash flows do not arrive on a silver platter. Often the financial manager has to do with “raw” data supplied by specialists in product design, production, marketing, and so on. This information has to be checked for completeness, consistency and accuracy. The financial manager has to ferret out hidden cash flows and take care to reject accounting entries that look like cash flows but truly are not. Second, how does the financial manager pull everything together into a forecast of overall, “bottom-line” cash flows? This requires careful tracking of taxes; changes in working capital; inflation; and the end-of-project “salvage values” of plant,
2017-06-20
THE ROLE OF FINANCIAL MANAGEMENT IN THE ISSUE OF EFFECTIVE INVESTMENT DECISIONS
Summary Wise investment decisions are based on the net present value rule. In this paper we can think about how to apply the rule to practical capital investment decisions. Our task is threefold. First, what should be discounted? We know the answer in principle: discount cash flows. But useful forecasts of cash flows do not arrive on a silver platter. Often the financial manager has to do with “raw” data supplied by specialists in product design, production, marketing, and so on. This information has to be checked for completeness, consistency and accuracy. The financial manager has to ferret out hidden cash flows and take care to reject accounting entries that look like cash flows but truly are not. Second, how does the financial manager pull everything together into a forecast of overall, “bottom-line” cash flows? This requires careful tracking of taxes; changes in working capital; inflation; and the end-of-project “salvage values” of plant,
2017-06-20
∘ Inna Zelisko ∘
EVOLUTIONARY TRENDS OF THE ECONOMIC CATEGORY FINANCIAL RESOURCES
Summary Reformatting economic and financial relations in society is reflected in the dynamism of the financial basis of social reproduction that requires rethinking the nature and understanding of the economic importance of financial resources. Financial resources are the determining basis of the process of social reproduction and functioning of the state and the enterprises of any legal form and ownership. The purpose of this article is to identify the relationship evolution of views on the nature and importance of the economic category “financial resources” and financial relations existing in society. Research object – a set of economic phenomena, processes and relationships that take place in the national economy.Subject of investigation – a set of theoretical and applied aspects of the formation and use of financial resources in the process of social reproduction. The methodological basis of research the dialectical method of knowledge of social and
2017-06-20
EVOLUTIONARY TRENDS OF THE ECONOMIC CATEGORY FINANCIAL RESOURCES
Summary Reformatting economic and financial relations in society is reflected in the dynamism of the financial basis of social reproduction that requires rethinking the nature and understanding of the economic importance of financial resources. Financial resources are the determining basis of the process of social reproduction and functioning of the state and the enterprises of any legal form and ownership. The purpose of this article is to identify the relationship evolution of views on the nature and importance of the economic category “financial resources” and financial relations existing in society. Research object – a set of economic phenomena, processes and relationships that take place in the national economy.Subject of investigation – a set of theoretical and applied aspects of the formation and use of financial resources in the process of social reproduction. The methodological basis of research the dialectical method of knowledge of social and
2017-06-20
∘ Giorgi Tetrauli ∘
EVALUATION OF EFFICIENCY OF INFLATION TARGETING (CASE OF GEORGIA)
Summary Inflation targeting is one of the most actual issues in modern monetary policy. Inflation target is an important landmark for a money market, plays a crucial role in planning and implementing various macroeconomic decisions. Thus, setting a correct target and timely evaluation of its efficiency has a key impact on success of the whole process of targeting. Switching to inflation targeting regime was caused by low efficiency of conventional methods in face of growing globalization. Initially targeting was used in developed countries, but since 1990s it has also been implemented by countries with transitional economies. Inflation targeting means adopting a concrete, transparent, quantitative target value of inflation rate, which is used as a landmark for monetary policy decisions, while for private sector inflation target forms inflation expectations. The target is usually set by the central bank in collaboration with the government. In this article two different approaches
2017-06-20
EVALUATION OF EFFICIENCY OF INFLATION TARGETING (CASE OF GEORGIA)
Summary Inflation targeting is one of the most actual issues in modern monetary policy. Inflation target is an important landmark for a money market, plays a crucial role in planning and implementing various macroeconomic decisions. Thus, setting a correct target and timely evaluation of its efficiency has a key impact on success of the whole process of targeting. Switching to inflation targeting regime was caused by low efficiency of conventional methods in face of growing globalization. Initially targeting was used in developed countries, but since 1990s it has also been implemented by countries with transitional economies. Inflation targeting means adopting a concrete, transparent, quantitative target value of inflation rate, which is used as a landmark for monetary policy decisions, while for private sector inflation target forms inflation expectations. The target is usually set by the central bank in collaboration with the government. In this article two different approaches
2017-06-20
∘ Lela Kamladze ∘
SOME ASPECTS OF DISASTER RISK INSURANCE
Summary Traditionally, the insurance business is divided into two classes: life insurance and all other types of insurance. When these classes are characterized, it is important to note that life insurance is the long-term business, and the second class species are short-term. Despite the fact that catastrophic and other property risks in practice are in one package, these differences require that the insurance company develop dramatically different approaches. If the behavior criterion chooses average gross cash flows before the disaster is over, the regional insurance company should try to maximize the catastrophic risks on the international market if the reinsurance premium is not unnaturally high. This conclusion is just as proportionate as well as disproportionate reinsurance. In other words, when there is a strong dependence on the risks associated with the portfolio, it is financially profitable to produce a long-term business of business, or even risk distribution, even
2017-06-20
SOME ASPECTS OF DISASTER RISK INSURANCE
Summary Traditionally, the insurance business is divided into two classes: life insurance and all other types of insurance. When these classes are characterized, it is important to note that life insurance is the long-term business, and the second class species are short-term. Despite the fact that catastrophic and other property risks in practice are in one package, these differences require that the insurance company develop dramatically different approaches. If the behavior criterion chooses average gross cash flows before the disaster is over, the regional insurance company should try to maximize the catastrophic risks on the international market if the reinsurance premium is not unnaturally high. This conclusion is just as proportionate as well as disproportionate reinsurance. In other words, when there is a strong dependence on the risks associated with the portfolio, it is financially profitable to produce a long-term business of business, or even risk distribution, even
2017-06-20
∘ Elguja Konjaria ∘
THE MEANING OF PAYMENT, ITS ORIGIN AND DEVELOPMENT
Summary It is important to create each country’s financial marketing, which will succeed to provide country’s income system. The most important is to improve healthy taxing policy, create healthy business system, eliminate marketing’s economic disadvantages and solve social problems. Taxes are the main element in economic system, it describes the level and degree of interrelation of state and economy. It makes a great deal in reapportion of economic system, which is directed to satisfy state’s marketing. It is impossible to provide the state without taxeis. Hard, stable financial system is necessary for the state. It is impossible to describe taxes as to decide social-economical problems. It characterizes social-economic advantages and disadvantages, but straightened economic system can and want to be one of the main axes for transformation of social-economic
2017-06-20
THE MEANING OF PAYMENT, ITS ORIGIN AND DEVELOPMENT
Summary It is important to create each country’s financial marketing, which will succeed to provide country’s income system. The most important is to improve healthy taxing policy, create healthy business system, eliminate marketing’s economic disadvantages and solve social problems. Taxes are the main element in economic system, it describes the level and degree of interrelation of state and economy. It makes a great deal in reapportion of economic system, which is directed to satisfy state’s marketing. It is impossible to provide the state without taxeis. Hard, stable financial system is necessary for the state. It is impossible to describe taxes as to decide social-economical problems. It characterizes social-economic advantages and disadvantages, but straightened economic system can and want to be one of the main axes for transformation of social-economic
2017-06-20
∘ Tea Lazarashvili ∘
INVESTMENT ENVIRONMENT AND ITS PECULIARITIES IN GEORGIA
Summary Formation of the investment environment in the country, both in micro and macro -economy is carried out as a result of the impact of a number of interrelated processes. It is quite difficultto strongly estimate the investment environment in Georgia. For the investment environment evaluationit is necessary to process and analyze complex factors. Among them it is important to study economic potential of the country, organizational and legal status, financial resources, social sphere, political environment, general structure of farmingetc. It is important to consider the country's economic sovereignty issue when attracting foreign investments in Georgia. It is important for sustainable economic development of the country to eradicate disproportions in regional aspect. Thisrequires the realization of such an investment policy that will increase the incentives for attracting investment in the lagging regions. This will help us to restore and effectively enact economic sectors
2017-06-20
INVESTMENT ENVIRONMENT AND ITS PECULIARITIES IN GEORGIA
Summary Formation of the investment environment in the country, both in micro and macro -economy is carried out as a result of the impact of a number of interrelated processes. It is quite difficultto strongly estimate the investment environment in Georgia. For the investment environment evaluationit is necessary to process and analyze complex factors. Among them it is important to study economic potential of the country, organizational and legal status, financial resources, social sphere, political environment, general structure of farmingetc. It is important to consider the country's economic sovereignty issue when attracting foreign investments in Georgia. It is important for sustainable economic development of the country to eradicate disproportions in regional aspect. Thisrequires the realization of such an investment policy that will increase the incentives for attracting investment in the lagging regions. This will help us to restore and effectively enact economic sectors
2017-06-20
∘ Dali Magrakvelidze ∘
MACROECONOMIC RISKS OF CREDIT SYSTEMS AND ITS ESTIMATION MODELS
Summary The mechanism of macroprudential analyzes involves the development and use of various indications, which are based on aggregated indicators received from central banks or supervisory bodies, as well as on macroeconomic and financial indicators, which characterize sustainability of banking castor. It is necessary to apply modern models of the financial crisis for the analysis of macroeconomic risks in banking activities due to the limitations of the currently obtained results ofmacroprudential indicators. The definition of currency and banking crises was founded by Franklin and Roose, and Demiriguk-Kunt and Deragich. Franklin and Roose proposed to understand 25% nominal devalvation of national currency as the crisis of currency that had been accompanied by a 10% increase in the rate of impairment rate during past five years. According to the research done by Demiriguek-Kunt and Demagich, the situation in the banking system can be assessed as a crisis, if one of the
2017-06-20
MACROECONOMIC RISKS OF CREDIT SYSTEMS AND ITS ESTIMATION MODELS
Summary The mechanism of macroprudential analyzes involves the development and use of various indications, which are based on aggregated indicators received from central banks or supervisory bodies, as well as on macroeconomic and financial indicators, which characterize sustainability of banking castor. It is necessary to apply modern models of the financial crisis for the analysis of macroeconomic risks in banking activities due to the limitations of the currently obtained results ofmacroprudential indicators. The definition of currency and banking crises was founded by Franklin and Roose, and Demiriguk-Kunt and Deragich. Franklin and Roose proposed to understand 25% nominal devalvation of national currency as the crisis of currency that had been accompanied by a 10% increase in the rate of impairment rate during past five years. According to the research done by Demiriguek-Kunt and Demagich, the situation in the banking system can be assessed as a crisis, if one of the
2017-06-20
∘ Merab Mikelashvili ∘
SOME THEORETICAL AND PRACTICAL ASPECTS OF PROPERTY TAXATION
Summary Property taxes represent one of the most compulsory ones. This is the outcome of the fact that in earlier times, realty was the only thing through which the government could influence on people. Property tax includes the tax of land, construction process and constructions. It's a regular tax and is paid once a year, whether the property is exploited or not. This is a local tax and has an important fiscal function for the budgets of the areas where it's on. Concluding from the international instruments of regulating the property taxation, we can say that Georgia needs to draw out a more effective system of it. Nowadays, based on the analysis of the Georgian taxation system, we can say that the state regulation level of property taxes is not enough. Experience of foreign, developed countries shows us that the state regulation of economic relations has an integral part in economic and social development. Property relations area demands a massive involvement of the state
2017-06-20
SOME THEORETICAL AND PRACTICAL ASPECTS OF PROPERTY TAXATION
Summary Property taxes represent one of the most compulsory ones. This is the outcome of the fact that in earlier times, realty was the only thing through which the government could influence on people. Property tax includes the tax of land, construction process and constructions. It's a regular tax and is paid once a year, whether the property is exploited or not. This is a local tax and has an important fiscal function for the budgets of the areas where it's on. Concluding from the international instruments of regulating the property taxation, we can say that Georgia needs to draw out a more effective system of it. Nowadays, based on the analysis of the Georgian taxation system, we can say that the state regulation level of property taxes is not enough. Experience of foreign, developed countries shows us that the state regulation of economic relations has an integral part in economic and social development. Property relations area demands a massive involvement of the state
2017-06-20
∘ Suren Ovakimyan ∘ Tamara Ovakimyan ∘
THE PROBLEMS OF EVALUATION AND ENSURE FINANCIAL STABILITY IN THE COUNTRIES WITH ECONOMIES IN TRANSITION
Summary A key issue of the modern world is its financial security. A sustainable development of the economy and financial system plays a special role in providing that security. The global financial crisis had a significant impact on the stability of the financial system of almost all countries. The foregoing has greater relevance for the countries with economies in transition if we take into account their weakly developed financial system and vulnerable economy. This article is devoted to an actual problem of provision of financial stability in the countries with economies in transition. This research observes international experience of financial stability provision, identifies factors that negatively affect on financial stability and offers the mechanisms of its
2017-06-20
THE PROBLEMS OF EVALUATION AND ENSURE FINANCIAL STABILITY IN THE COUNTRIES WITH ECONOMIES IN TRANSITION
Summary A key issue of the modern world is its financial security. A sustainable development of the economy and financial system plays a special role in providing that security. The global financial crisis had a significant impact on the stability of the financial system of almost all countries. The foregoing has greater relevance for the countries with economies in transition if we take into account their weakly developed financial system and vulnerable economy. This article is devoted to an actual problem of provision of financial stability in the countries with economies in transition. This research observes international experience of financial stability provision, identifies factors that negatively affect on financial stability and offers the mechanisms of its
2017-06-20
∘ Tea Udesiani ∘ Tatia Udesiani ∘
FRAUD PREVENTION, DETECTION AND INVESTIGATION IN AUDITING PROCESS
Summary In accordance with international standards of audit, the notion of “fraud” means the intentional act of the enterprise’s management, employees or one or more representatives of the third party, which resulted in misstatement in the financial statements. For its part, misstatement in the financial statements means incorrect data reflection and their misrepresentation. The mentioned inaccuracies may result from fraud or errors. The difference between them is that fraud is an act, which may result from intentional misrepresentation of information in the financial statements, but the error is not intentional. There is also another type of fraud, which is associated with misappropriation of assets. To prevent fraud, the leadership of an organization should consider the risk-factors for fraud. The fraud risk-factors do not have to point to the existence of fraud, often, they are represented at the time when fraud arises. The management has to identify and
2017-06-20
FRAUD PREVENTION, DETECTION AND INVESTIGATION IN AUDITING PROCESS
Summary In accordance with international standards of audit, the notion of “fraud” means the intentional act of the enterprise’s management, employees or one or more representatives of the third party, which resulted in misstatement in the financial statements. For its part, misstatement in the financial statements means incorrect data reflection and their misrepresentation. The mentioned inaccuracies may result from fraud or errors. The difference between them is that fraud is an act, which may result from intentional misrepresentation of information in the financial statements, but the error is not intentional. There is also another type of fraud, which is associated with misappropriation of assets. To prevent fraud, the leadership of an organization should consider the risk-factors for fraud. The fraud risk-factors do not have to point to the existence of fraud, often, they are represented at the time when fraud arises. The management has to identify and
2017-06-20
∘ Leila Ghudushauril ∘
CURRENT BANKING RISK MANAGEMENT ISSUES
Summary In recent years, the banking system has undergone rapid changes both within the country and outside the country, resulting in a rise in complex risks associated with banking operations, which differ from time to time, as well as quality and influence. Therefore, it is important to consider the risks as a whole, a change in risk, as a rule affects other risks. This makes it difficult to assess the specific risk, optimal decision often requires deeper analysis and consideration of additional risk factors. Risk research should be distinguished by two main directions: 1. determining the risk level and assessment and 2. decision making in the risk area. To assess the risks it is recommended to use methods based on the concept of VaR analysis (deltanormal, historical modeling and stochastic modeling (Monte Carlo)) as well as various stress testing procedures. Methods of risk assessment based on the concept of VaR analysis allow the maximum possible loss of the banking
2017-06-20
CURRENT BANKING RISK MANAGEMENT ISSUES
Summary In recent years, the banking system has undergone rapid changes both within the country and outside the country, resulting in a rise in complex risks associated with banking operations, which differ from time to time, as well as quality and influence. Therefore, it is important to consider the risks as a whole, a change in risk, as a rule affects other risks. This makes it difficult to assess the specific risk, optimal decision often requires deeper analysis and consideration of additional risk factors. Risk research should be distinguished by two main directions: 1. determining the risk level and assessment and 2. decision making in the risk area. To assess the risks it is recommended to use methods based on the concept of VaR analysis (deltanormal, historical modeling and stochastic modeling (Monte Carlo)) as well as various stress testing procedures. Methods of risk assessment based on the concept of VaR analysis allow the maximum possible loss of the banking
2017-06-20
∘ Khatuna Shalamberidze ∘
BASIC DIRECTIONS OF IMPROVING THE BANKING COMPETITION IN GEORGIA
Summary Banking activity in Georgia requires a regulation that will ensure fair and workable competition conditions that guarantee the effective development of the country's banking sector. The existence of a competitive level of sustainability of the banking system is a very important problem today, since the civilized competition is an essential component of the banking system's efficient functioning and progressive
2017-06-20
BASIC DIRECTIONS OF IMPROVING THE BANKING COMPETITION IN GEORGIA
Summary Banking activity in Georgia requires a regulation that will ensure fair and workable competition conditions that guarantee the effective development of the country's banking sector. The existence of a competitive level of sustainability of the banking system is a very important problem today, since the civilized competition is an essential component of the banking system's efficient functioning and progressive
2017-06-20
∘ Izolda Chiladze ∘
THE NEW MODEL OF PROFIT TAXATION AND THE ACCOUNTING ISSUES IN GEORGIA
Summary The subject of the study is the new model of profit tax and its relevant accounting issues. From January 1, 2017, new regulations of profit taxation in Georgia have been launched, which is known by the name of the Estonian model. According to this model, the taxable object is the distributed profit. According ro the author, reinvestment of profit by the indirect coercive enterprise can not bring real positive results, first of all, reinvestment of profits has not been banned yet, secondly, 20% of the profit tax rate is not so high that the owners will refuse dividends and thirdly, unfortunately, in Georgia, the culture of the necessity of payng taxes is low. Therefore, the following measures need to be taken: For all types of enterprises to legalize the minimum percentage margin of profit (30%) for reinvestment; First of all, from the annual profit of the enterprise, must be allocated the investment amount and the remaining amount will be issued on the dividends after
2017-06-20
THE NEW MODEL OF PROFIT TAXATION AND THE ACCOUNTING ISSUES IN GEORGIA
Summary The subject of the study is the new model of profit tax and its relevant accounting issues. From January 1, 2017, new regulations of profit taxation in Georgia have been launched, which is known by the name of the Estonian model. According to this model, the taxable object is the distributed profit. According ro the author, reinvestment of profit by the indirect coercive enterprise can not bring real positive results, first of all, reinvestment of profits has not been banned yet, secondly, 20% of the profit tax rate is not so high that the owners will refuse dividends and thirdly, unfortunately, in Georgia, the culture of the necessity of payng taxes is low. Therefore, the following measures need to be taken: For all types of enterprises to legalize the minimum percentage margin of profit (30%) for reinvestment; First of all, from the annual profit of the enterprise, must be allocated the investment amount and the remaining amount will be issued on the dividends after
2017-06-20
∘ Vladimir Arkhangelsky ∘ Nataliya Janaeva ∘
FERTILITY RATE DYNAMICS IN THE FORMER SOVIET UNION COUNTRIES
Summary The article considers fertility rate dynamics in the former Soviet Union countries, analyzes crude birth rate and total fertility rate in 1990-2015, the distribution of births by birth order, total fertility rate by birth order, indicators of average birth order, average maternal age at child birth, the share of out-of-wedlock births. Research studies of reproductive behavior in the former Soviet Union states has been reviewed. The total fertility rate data for 1990-2015 are available on statistical agencies websites of all post-Soviet states, except Turkmenistan and Uzbekistan (Kyrgyzstan data are unavailable for the periods of 1990-1999 and 2001-2004). Tajikistan and Kyrgyzstan featured the highest TFR value in 2015, 28.1‰ and 27.4‰ respectively. On the other hand, Estonia (10,6‰), Ukraine (10.7‰), Lithuania (10,8‰), Moldova (10,9‰) and Latvia (11,1‰) featured the lowest rate. Compared to 1990 the total fertility rate
2017-06-20
FERTILITY RATE DYNAMICS IN THE FORMER SOVIET UNION COUNTRIES
Summary The article considers fertility rate dynamics in the former Soviet Union countries, analyzes crude birth rate and total fertility rate in 1990-2015, the distribution of births by birth order, total fertility rate by birth order, indicators of average birth order, average maternal age at child birth, the share of out-of-wedlock births. Research studies of reproductive behavior in the former Soviet Union states has been reviewed. The total fertility rate data for 1990-2015 are available on statistical agencies websites of all post-Soviet states, except Turkmenistan and Uzbekistan (Kyrgyzstan data are unavailable for the periods of 1990-1999 and 2001-2004). Tajikistan and Kyrgyzstan featured the highest TFR value in 2015, 28.1‰ and 27.4‰ respectively. On the other hand, Estonia (10,6‰), Ukraine (10.7‰), Lithuania (10,8‰), Moldova (10,9‰) and Latvia (11,1‰) featured the lowest rate. Compared to 1990 the total fertility rate
2017-06-20
∘ Nino Gomelauri ∘
MULTIPLE CHILDREN FAMILY IN THE EYES OF MODERN SOCIETY
Summary The majority of studies show that the society is going through devaluation of family values and roles, mitigating family behavior motivation, reducing demand for many children, changing it with the need for self-realization. However, multiple children family is still remaining a valuable charm. Relatives and acquaintances respect their work, endure their patience, for combining career and family activities. Multiple children families mostly are people with an active lifestyle. Despite the fact that in recent years the birth rate decreases, the third and subsequent sequencing of children among the living born was increased and in 2016 amounted to 21.3%. There are different opinions on multiple children families in the society in Georgia. A third of the population perceives the phrase "multiple children family", as a factor determining difficulties and poverty in the family. Most of the population of the country thinks that many children are in unsuccessful families,
2017-06-20
MULTIPLE CHILDREN FAMILY IN THE EYES OF MODERN SOCIETY
Summary The majority of studies show that the society is going through devaluation of family values and roles, mitigating family behavior motivation, reducing demand for many children, changing it with the need for self-realization. However, multiple children family is still remaining a valuable charm. Relatives and acquaintances respect their work, endure their patience, for combining career and family activities. Multiple children families mostly are people with an active lifestyle. Despite the fact that in recent years the birth rate decreases, the third and subsequent sequencing of children among the living born was increased and in 2016 amounted to 21.3%. There are different opinions on multiple children families in the society in Georgia. A third of the population perceives the phrase "multiple children family", as a factor determining difficulties and poverty in the family. Most of the population of the country thinks that many children are in unsuccessful families,
2017-06-20
∘ Gulnaz Erkomaishvili ∘
OBJECTIVE PREREQUISITES OF SOCIAL RESPONSIBILITY FORMATION IN GEORGIA
Summary The work outlines the objective prerequisites for the formation of social responsibility in Georgia, which has been actual in the last 10 years; however, philanthropy has a long history in our country. The social responsibility of companies in Georgia is mainly supported by charity, as well as by the support of various spheres. It should also be noted that the quality and structure of social responsibility for business in Georgia is far more chaotic and non-violent. Corporate Social Responsibility (CSR) can solve the problems of individual spheres, and therefore need to carry out corporate social responsibility support policies. The development of corporate social responsibility will have a positive impact on sustainable development of the country, improving foreign relations and many of the problems in the
2017-06-20
OBJECTIVE PREREQUISITES OF SOCIAL RESPONSIBILITY FORMATION IN GEORGIA
Summary The work outlines the objective prerequisites for the formation of social responsibility in Georgia, which has been actual in the last 10 years; however, philanthropy has a long history in our country. The social responsibility of companies in Georgia is mainly supported by charity, as well as by the support of various spheres. It should also be noted that the quality and structure of social responsibility for business in Georgia is far more chaotic and non-violent. Corporate Social Responsibility (CSR) can solve the problems of individual spheres, and therefore need to carry out corporate social responsibility support policies. The development of corporate social responsibility will have a positive impact on sustainable development of the country, improving foreign relations and many of the problems in the
2017-06-20
∘ Naira Virsaladze ∘
CHRISTIAN TEACHING IN SERVICE OF PROSPERITY OF THE STATE AND FAMILY
Summary For Christian religion the prosperity of the state and family is very significant. In market economy the development of moral economics, complying with the rule of Christian moral and suppression of immoral activity are important problems. Here, compulsory inclinations of the human beings towards their disposition to receiving material profit happen very often than in other environment. Economic wealth, along with its benefits, consists of assumptions of passion of the people for temptation and pseudo-wealthy, it pushes greedy people to unethical, unjustified behavior that contradicts religion, beliefs, and moral imperatives. Today's reality, to say nothing about the past, is full of such facts. As a result, few people live in clover and majority of them live in poverty, violence and dirt. Depending on the current situation, there is a question: Is it possible to make compatible untamable aspiration of the people to wealthy with moral imperatives, requirements of
2017-06-20
CHRISTIAN TEACHING IN SERVICE OF PROSPERITY OF THE STATE AND FAMILY
Summary For Christian religion the prosperity of the state and family is very significant. In market economy the development of moral economics, complying with the rule of Christian moral and suppression of immoral activity are important problems. Here, compulsory inclinations of the human beings towards their disposition to receiving material profit happen very often than in other environment. Economic wealth, along with its benefits, consists of assumptions of passion of the people for temptation and pseudo-wealthy, it pushes greedy people to unethical, unjustified behavior that contradicts religion, beliefs, and moral imperatives. Today's reality, to say nothing about the past, is full of such facts. As a result, few people live in clover and majority of them live in poverty, violence and dirt. Depending on the current situation, there is a question: Is it possible to make compatible untamable aspiration of the people to wealthy with moral imperatives, requirements of
2017-06-20
∘ Nodar Kaberti ∘
THE INSTITUTE OF LARGE FAMILIES AND ITS PECULIARITIES IN THE REGIONS OF THE NORTH CAUCASUS
Summary The institute of large families and its consequences in the civilized countries have undergone and are still undergoing major changes. Despite the great demographic burden, in Russia, which has only recently got out of the state of depopulation, this phenomenon is not sufficiently studied, especially in the regional context.This article examines some indicators of the current and expected conditions of women with many children in the regions of the North Caucasus Federal District. Comparative analysis is primarily based on the materials of the 2015 micro-census of the population of the Russian Federation. ceiving material profit happen very often than in other environment. Economic wealth, along with its benefits, consists of assumptions of passion of the people for temptation and pseudo-wealthy, it pushes greedy people to unethical, unjustified behavior that contradicts religion, beliefs, and moral imperatives. Today's reality, to say nothing about the past, is full of such
2017-06-20
THE INSTITUTE OF LARGE FAMILIES AND ITS PECULIARITIES IN THE REGIONS OF THE NORTH CAUCASUS
Summary The institute of large families and its consequences in the civilized countries have undergone and are still undergoing major changes. Despite the great demographic burden, in Russia, which has only recently got out of the state of depopulation, this phenomenon is not sufficiently studied, especially in the regional context.This article examines some indicators of the current and expected conditions of women with many children in the regions of the North Caucasus Federal District. Comparative analysis is primarily based on the materials of the 2015 micro-census of the population of the Russian Federation. ceiving material profit happen very often than in other environment. Economic wealth, along with its benefits, consists of assumptions of passion of the people for temptation and pseudo-wealthy, it pushes greedy people to unethical, unjustified behavior that contradicts religion, beliefs, and moral imperatives. Today's reality, to say nothing about the past, is full of such
2017-06-20
∘ Olga Lebed ∘
THE IDEAS ABOUT A FAMILY LIFE AND THE ROLE OF MASS MEDIA IN PUBLIC MIND OF RUSSIANS
Summary The article is devoted to the description of Russians ' attitude to his family life and the prospects of formation of state information policy aimed at strengthening family values, are the opinions of Russians about the forms in which the designated policy can be expressed. Also describes the opinions of these media workers – managers and rank – and-file journalists on the same theme. In real life, the Russians prefer to live married, have a family consisting of parents and children, although unable to recognize family members a wider range of persons living separately. Having children is the most important part of family life, however, spread having a small family with 1-2 children, who in their overwhelming majority do not plan to have more than 2 children. In their assessments of the possibility and necessity of influence on the content of media and the current state of information policy professional producers of media content have proved even more
2017-06-20
THE IDEAS ABOUT A FAMILY LIFE AND THE ROLE OF MASS MEDIA IN PUBLIC MIND OF RUSSIANS
Summary The article is devoted to the description of Russians ' attitude to his family life and the prospects of formation of state information policy aimed at strengthening family values, are the opinions of Russians about the forms in which the designated policy can be expressed. Also describes the opinions of these media workers – managers and rank – and-file journalists on the same theme. In real life, the Russians prefer to live married, have a family consisting of parents and children, although unable to recognize family members a wider range of persons living separately. Having children is the most important part of family life, however, spread having a small family with 1-2 children, who in their overwhelming majority do not plan to have more than 2 children. In their assessments of the possibility and necessity of influence on the content of media and the current state of information policy professional producers of media content have proved even more
2017-06-20
∘ Lela Menabdishvili ∘
THE PECULIARITIES OF REPRODUCTIVE BEHAVIOR OF ORTHODOX BELIEVERS
Summary The views and attitudes of every human being towards the demographic processes is developed generally through the national, family traditions, religious affiliation, the certain living conditions, education level and the social environment, where people live. The religious affiliation exerts an important influence on the demographic behaviors. The clear example of that is a proposal of His Holiness Catholicos – Patriarch of all Georgia Ilia II to the Georgian population, made in 2007. As a result, the percentage share of third and the subsequent child was increased accordingly from 10,9% to 18,3% among the total number of those born during 2014-2015 years. The reproductive behavior of Orthodox Christians is characterized with the important peculiarities because of their faith: family planning is not common practice in their families, according to their point of view, this matter is decided by the God’s will (85,2%). Concerning the fact that the most
2017-06-20
THE PECULIARITIES OF REPRODUCTIVE BEHAVIOR OF ORTHODOX BELIEVERS
Summary The views and attitudes of every human being towards the demographic processes is developed generally through the national, family traditions, religious affiliation, the certain living conditions, education level and the social environment, where people live. The religious affiliation exerts an important influence on the demographic behaviors. The clear example of that is a proposal of His Holiness Catholicos – Patriarch of all Georgia Ilia II to the Georgian population, made in 2007. As a result, the percentage share of third and the subsequent child was increased accordingly from 10,9% to 18,3% among the total number of those born during 2014-2015 years. The reproductive behavior of Orthodox Christians is characterized with the important peculiarities because of their faith: family planning is not common practice in their families, according to their point of view, this matter is decided by the God’s will (85,2%). Concerning the fact that the most
2017-06-20
∘ Nana Menabdishvili ∘
SELF-PRESERVATION AMONG STUDENTS
Summary The self-preservation behavior is directed towards the preservation of health and the extension of lifespan throughout the full life cycle. It has the greatest role as for the certain person, also for the country from the demographic and the economic point of view. The study of the self-preservation behavior is carried out by following indicators: an ideal, a desired and an expected years of life expectancy. Our study is based on the research results carried out among the students. Respondents named 84,8 years on average as the ideal life expectancy, the desired life expectancy was amounted accordingly 83,2 on average. The expected life expectancy on average equals to 78,3 years. The expected life expectancy is the less among the respondents, who estimates health as “the bad”. The ideal life expectancy exceeds the desired by 3,2 years in this group, but the expected - by 11,7 years. Among the respondents who estimates own health as
2017-06-20
SELF-PRESERVATION AMONG STUDENTS
Summary The self-preservation behavior is directed towards the preservation of health and the extension of lifespan throughout the full life cycle. It has the greatest role as for the certain person, also for the country from the demographic and the economic point of view. The study of the self-preservation behavior is carried out by following indicators: an ideal, a desired and an expected years of life expectancy. Our study is based on the research results carried out among the students. Respondents named 84,8 years on average as the ideal life expectancy, the desired life expectancy was amounted accordingly 83,2 on average. The expected life expectancy on average equals to 78,3 years. The expected life expectancy is the less among the respondents, who estimates health as “the bad”. The ideal life expectancy exceeds the desired by 3,2 years in this group, but the expected - by 11,7 years. Among the respondents who estimates own health as
2017-06-20
∘ Vladimer Sulaberidze ∘
EVOLUTION OF DEMOGRAPHIC STRUCTURE IN GEORGIA
Summary The article discusses the evolution of the age-sex structure of the population of Georgia for 120 (1897-2015) years. Formation of structures of 1897-1959 was undergoing severe social and economic conditions during the First and Second World War and Georgia’s independence periods, which resulted in a large number of people being sacrificed. Contrast political, socio-economic and demographic processes happened during period of 55 year after 1959 had a substantial impact on 2002 and especially on the demographic structure of 2015. The two generations of this period had given different contributions for the demographic development of the country. During the period of 1959-1992 the natural increase of population exceeded the negative balance of migration, which led to the increase in population. At the same time rapid reduction of birth rate and slow growth of mortality, characteristic to the third phase of population reshuffle, would provide low level of expanded
2017-06-20
EVOLUTION OF DEMOGRAPHIC STRUCTURE IN GEORGIA
Summary The article discusses the evolution of the age-sex structure of the population of Georgia for 120 (1897-2015) years. Formation of structures of 1897-1959 was undergoing severe social and economic conditions during the First and Second World War and Georgia’s independence periods, which resulted in a large number of people being sacrificed. Contrast political, socio-economic and demographic processes happened during period of 55 year after 1959 had a substantial impact on 2002 and especially on the demographic structure of 2015. The two generations of this period had given different contributions for the demographic development of the country. During the period of 1959-1992 the natural increase of population exceeded the negative balance of migration, which led to the increase in population. At the same time rapid reduction of birth rate and slow growth of mortality, characteristic to the third phase of population reshuffle, would provide low level of expanded
2017-06-20
∘ Vano Shushtakashvili ∘
FAMILY MODERNIZATION PROBLEMS IN GEORGIA IN 1970-2002
Summary At the modern stage the social-demographic modernization of the family is considered as the formation of new social-demographic values and norms of the behavior of the individual orientation in the system of public value forming in the family. Georgian society and family are unprepared to meet modern social and demographic modernization of the country as a whole, as well as others. In the 70s of the last century, sociologists and demographers in Europe have allocated four main characteristics of the modern family: 1. The widely disseminated joint legal life (unregistered marriages) and alternative forms of family; 2. Transition to the number of children individually oriented by the partner couples from the child modeling model;3. Transition to a familiar plan of childhood; 4. Transition from traditional family model to a democratic-pluralistic model. Some demographers were even thinking about the disappearance of the family institution in the future. If we consider
2017-06-20
FAMILY MODERNIZATION PROBLEMS IN GEORGIA IN 1970-2002
Summary At the modern stage the social-demographic modernization of the family is considered as the formation of new social-demographic values and norms of the behavior of the individual orientation in the system of public value forming in the family. Georgian society and family are unprepared to meet modern social and demographic modernization of the country as a whole, as well as others. In the 70s of the last century, sociologists and demographers in Europe have allocated four main characteristics of the modern family: 1. The widely disseminated joint legal life (unregistered marriages) and alternative forms of family; 2. Transition to the number of children individually oriented by the partner couples from the child modeling model;3. Transition to a familiar plan of childhood; 4. Transition from traditional family model to a democratic-pluralistic model. Some demographers were even thinking about the disappearance of the family institution in the future. If we consider
2017-06-20
∘ Mikheil Bagdavadze ∘
THE ESSENCE OF PROCUREMENT, ITS PRINCIPLES, ORGANIZATION
Summary In the main part of this article it is discussed the essence of procurement, its obligation, consisting elements, function, principles, motivation of choosing the supplier, organization of purchase etc. Procurement is a combination of these methods and procedures to meet the requirement of purchaser on product, service and work. There are achieved by: purchase planning, defining the target of purchase, regulations, accomplish purchase and its control. So, procurement is the process of purchase. It is realized by the state organization by the mean of budget and commercial (private) organizations by their own resources. The purchase of good is accomplished in competitions, auctions, tenders. The purchaser is mentioned as a supplier. The quality of good should be evaluated by the client who is the best supplier. In Georgian state purchase, the main attention is paid to the fare of good what isn’t correct. The approval of purchase necessity is seldom as well.
2017-06-20
THE ESSENCE OF PROCUREMENT, ITS PRINCIPLES, ORGANIZATION
Summary In the main part of this article it is discussed the essence of procurement, its obligation, consisting elements, function, principles, motivation of choosing the supplier, organization of purchase etc. Procurement is a combination of these methods and procedures to meet the requirement of purchaser on product, service and work. There are achieved by: purchase planning, defining the target of purchase, regulations, accomplish purchase and its control. So, procurement is the process of purchase. It is realized by the state organization by the mean of budget and commercial (private) organizations by their own resources. The purchase of good is accomplished in competitions, auctions, tenders. The purchaser is mentioned as a supplier. The quality of good should be evaluated by the client who is the best supplier. In Georgian state purchase, the main attention is paid to the fare of good what isn’t correct. The approval of purchase necessity is seldom as well.
2017-06-20
∘ Teona Gedevanishvili ∘
PREVIOUS DETECTION OF THE THREAT CAUSED BY CRISES IN COMPANIES
Summary In developing countries, including Georgia, the companies which are in crisis and failed to adapt the new economic environment search for ways to overcome the massive bankruptcy which is the problematic issue. Crisis means the condition of organization, which preccedes there qualitative transition. Crisis in the industrial firm is a long and difficult problem. It can cause damage to the reputation of the organization and also to its financial condition. The crisis in the organization depends partly on external factors as well, but if the firm’s management is carried out properly, then the risk of the crisis happening is less. In fact, the biggest damage comes to the reputation of the organization or its financial position, which may cause problems. Even today many companies continue the policy when delegation of crisis management is going on to middle-level managers, which is a big mistake. It is definitely the
2017-06-20
PREVIOUS DETECTION OF THE THREAT CAUSED BY CRISES IN COMPANIES
Summary In developing countries, including Georgia, the companies which are in crisis and failed to adapt the new economic environment search for ways to overcome the massive bankruptcy which is the problematic issue. Crisis means the condition of organization, which preccedes there qualitative transition. Crisis in the industrial firm is a long and difficult problem. It can cause damage to the reputation of the organization and also to its financial condition. The crisis in the organization depends partly on external factors as well, but if the firm’s management is carried out properly, then the risk of the crisis happening is less. In fact, the biggest damage comes to the reputation of the organization or its financial position, which may cause problems. Even today many companies continue the policy when delegation of crisis management is going on to middle-level managers, which is a big mistake. It is definitely the
2017-06-20
∘ Irina Davrashelidze ∘
THE QUALITATIVE DEFINING METHODS OF CREDITOR’S CREDITABILITY
Summary In this article it is considered and evaluated the specific qualitative defining methods of creditor’s creditability. These are: the method of 5-C, PARSERI, CAMPARI, the methods of Irkutsk and Babushkin. Thecombination of features makes its credit rating.These features are: Credit history; The level of financial providing; Credit providing by deposit; The management of creditor’s company or management level; Creditor’s business market. This method was invented by the Russian scientist Babushkin. These features make creditor’s creditability. These features are evaluated by different methods: with marks or percent. Low mark or low percent means better payment. (0 point is a negative assessment). Comercial banks are making weight ratio from these features, there is no doubt that it is different in different banks and it depends on how important this feature is in payment. The author thinks that this approach is a fault of
2017-06-20
THE QUALITATIVE DEFINING METHODS OF CREDITOR’S CREDITABILITY
Summary In this article it is considered and evaluated the specific qualitative defining methods of creditor’s creditability. These are: the method of 5-C, PARSERI, CAMPARI, the methods of Irkutsk and Babushkin. Thecombination of features makes its credit rating.These features are: Credit history; The level of financial providing; Credit providing by deposit; The management of creditor’s company or management level; Creditor’s business market. This method was invented by the Russian scientist Babushkin. These features make creditor’s creditability. These features are evaluated by different methods: with marks or percent. Low mark or low percent means better payment. (0 point is a negative assessment). Comercial banks are making weight ratio from these features, there is no doubt that it is different in different banks and it depends on how important this feature is in payment. The author thinks that this approach is a fault of
2017-06-20
∘ Alexander Ergeshidze ∘
THE IMPACT OF EXCHANGE RATE ON MACROECONOMIC ENVIRONMENT
Summary During the last 10 years, exchange rate volatility increased worldwide as a result of global financial crisis (2008) and the decline in commodity prices including oil price (2014). In addition, several central banks, including FED, ECB, Bank of England, Czech National Bank, Central Bank of Japan,People's Bank of China, started to use exchange rate as a monetary policy instrument to amplify economic growth and achieve their inflation target. Current episodes of exchange rate volatility confirmed that exchange rate is one of the important tools, which can affect country’s economic situation, financial stability and social welfare. Taking into account current events, review of existing literature about exchange rate impact on macroeconomic environment and in-depth analysis of exchange rate effect is becoming significant, in order to inform policy makers and implement correct economic policies. The aim of this research is to analyze whether exchange rate depreciation is
2017-06-20
THE IMPACT OF EXCHANGE RATE ON MACROECONOMIC ENVIRONMENT
Summary During the last 10 years, exchange rate volatility increased worldwide as a result of global financial crisis (2008) and the decline in commodity prices including oil price (2014). In addition, several central banks, including FED, ECB, Bank of England, Czech National Bank, Central Bank of Japan,People's Bank of China, started to use exchange rate as a monetary policy instrument to amplify economic growth and achieve their inflation target. Current episodes of exchange rate volatility confirmed that exchange rate is one of the important tools, which can affect country’s economic situation, financial stability and social welfare. Taking into account current events, review of existing literature about exchange rate impact on macroeconomic environment and in-depth analysis of exchange rate effect is becoming significant, in order to inform policy makers and implement correct economic policies. The aim of this research is to analyze whether exchange rate depreciation is
2017-06-20
∘ David Keshelava ∘
PECULIARITIES OF STRUCTURAL TRANSFORMATION OF GEORGIA IN 1990-2015
Summary Structural transformation of the economy is one of the most important determinants of economic development. Almost invariably, nations that have managed to pull themselves out of poverty were able to diversify their economies away from low productivity sectors. In advanced countries, productivity differences between sectors are generally small, and growth mostly happens because of productivity improvements within sectors. Developing countries, on the other hand, are characterized by large productivity gaps between the sectors of their economies. These gaps are potentially good growth engines. When a labor force moves from a low productivity sector to a high productivity one, economic growth happens even if there is no productivity improvement within the sectors. This “development recipe” sounds simple, yet the speed of structural transformation differs greatly between countries. One may say that this is the key factor that differentiates unsuccessful economies
2017-06-20
PECULIARITIES OF STRUCTURAL TRANSFORMATION OF GEORGIA IN 1990-2015
Summary Structural transformation of the economy is one of the most important determinants of economic development. Almost invariably, nations that have managed to pull themselves out of poverty were able to diversify their economies away from low productivity sectors. In advanced countries, productivity differences between sectors are generally small, and growth mostly happens because of productivity improvements within sectors. Developing countries, on the other hand, are characterized by large productivity gaps between the sectors of their economies. These gaps are potentially good growth engines. When a labor force moves from a low productivity sector to a high productivity one, economic growth happens even if there is no productivity improvement within the sectors. This “development recipe” sounds simple, yet the speed of structural transformation differs greatly between countries. One may say that this is the key factor that differentiates unsuccessful economies
2017-06-20
∘ Luka Lazviashvili ∘
MACROECONOMIC POLICY DURING THE GREAT DEPRESSION
Summary The Great Depression - that's how we call the most widespread, durable and severe economic slump in history of modern world. While seeking for solutions, an economic thinking changed eternally and that process formed such an important direction of economic science as macroeconomics. The article includes some descriptions and analysis of the macroeconomic policies made by US governments during that huge
2017-06-20
MACROECONOMIC POLICY DURING THE GREAT DEPRESSION
Summary The Great Depression - that's how we call the most widespread, durable and severe economic slump in history of modern world. While seeking for solutions, an economic thinking changed eternally and that process formed such an important direction of economic science as macroeconomics. The article includes some descriptions and analysis of the macroeconomic policies made by US governments during that huge
2017-06-20
∘ Nino Lobzhanidze ∘
IMPACT OF THE TAX SYSTEM ON SMALL AND MEDIUM SIZED ENTREPRENEURSHIP IN GEORGIA
Summary The paper evaluates the role of the tax factors in improving the conditions of small and medium sized enterprises. The characteristics of the tax system are analyzed. There are discussed best cases of stimulating tax policies in a developed country and the corresponding data for the comparative analysis of small and medium sized businesses for individual cases in each country. Firstly the paper evaluates the strengths and weaknesses of the small and medium sized enterprises and its role in the improvement of the business environment and the overall economic situation in the country. The paper discusses the development of entrepreneurship in accordance with existing government policy and highlights the impact of the tax system; it is reviewed tax benefits for the local and foreign entrepreneurs of all the countries in which Georgia has signed an agreement of double taxation and tax zero out evasion. Also, it is estimated already conducted tax reforms and the future EU tax
2017-06-20
IMPACT OF THE TAX SYSTEM ON SMALL AND MEDIUM SIZED ENTREPRENEURSHIP IN GEORGIA
Summary The paper evaluates the role of the tax factors in improving the conditions of small and medium sized enterprises. The characteristics of the tax system are analyzed. There are discussed best cases of stimulating tax policies in a developed country and the corresponding data for the comparative analysis of small and medium sized businesses for individual cases in each country. Firstly the paper evaluates the strengths and weaknesses of the small and medium sized enterprises and its role in the improvement of the business environment and the overall economic situation in the country. The paper discusses the development of entrepreneurship in accordance with existing government policy and highlights the impact of the tax system; it is reviewed tax benefits for the local and foreign entrepreneurs of all the countries in which Georgia has signed an agreement of double taxation and tax zero out evasion. Also, it is estimated already conducted tax reforms and the future EU tax
2017-06-20
∘ Tamta Meskhoradze ∘
POST-COMMUNIST TRANSITION IN INSTITUTIONAL CONTEXT: SHOCK THERAPY VERSUS GRADUALISM
Summary The paper tells us about the historic transition of ex-communist countries from socialism to the market economy. Herewith, it analyzes the transition period based on the opinions existed between those who advocated rapid reforms, and those who advocated a gradual approach. This paper shows that early and rapid reformers ended up with better institutions than gradual reformers. As to the timing of institutional development, the arguments that it should precede liberalization are not supported by the historical facts. The fastest progress on institutions was made by the very same countries that undertook rapid
2017-06-20
POST-COMMUNIST TRANSITION IN INSTITUTIONAL CONTEXT: SHOCK THERAPY VERSUS GRADUALISM
Summary The paper tells us about the historic transition of ex-communist countries from socialism to the market economy. Herewith, it analyzes the transition period based on the opinions existed between those who advocated rapid reforms, and those who advocated a gradual approach. This paper shows that early and rapid reformers ended up with better institutions than gradual reformers. As to the timing of institutional development, the arguments that it should precede liberalization are not supported by the historical facts. The fastest progress on institutions was made by the very same countries that undertook rapid
2017-06-20
∘ Yerkezhan Moldakenova ∘
FOREIGN EXPERIENCE OF STATE REGULATION OF INNOVATIVE PROCESSES IN AGRARIAN AND INDUSTRIAL COMPLEX
Annotation.The most important priorities of development of agricultural industry in modern conditions are the innovative processes allowing a message continuous updating of production on the basis of achievements of science and technology. Broad application of scientific and technical achievements is the most effective and effective form of ensuring sustainable development of branch, and scientific technical progress is defined by opportunities of an innovative way of development of agrarian production. In article examples of development of agrarian and industrial complex of Kazakhstan, Russia and Georgia are given. Keywords: agricultural industry, innovative processes, agrarian and industrial complex, state regulation Process of introduction of innovations in agricultural industry represents a constant and continuous stream of the concrete biological, biotechnological and technical ideas on creation of new scientific production (the equipment, technologies, new materials,
2017-06-20
FOREIGN EXPERIENCE OF STATE REGULATION OF INNOVATIVE PROCESSES IN AGRARIAN AND INDUSTRIAL COMPLEX
Annotation.The most important priorities of development of agricultural industry in modern conditions are the innovative processes allowing a message continuous updating of production on the basis of achievements of science and technology. Broad application of scientific and technical achievements is the most effective and effective form of ensuring sustainable development of branch, and scientific technical progress is defined by opportunities of an innovative way of development of agrarian production. In article examples of development of agrarian and industrial complex of Kazakhstan, Russia and Georgia are given. Keywords: agricultural industry, innovative processes, agrarian and industrial complex, state regulation Process of introduction of innovations in agricultural industry represents a constant and continuous stream of the concrete biological, biotechnological and technical ideas on creation of new scientific production (the equipment, technologies, new materials,
2017-06-20
∘ Nino Zhorzhikashvili ∘
SUPERVISORY POLICY PECULIARITIES OF THE NATIONAL BANK OF GEORGIA
Summary The 2007-2008 global financial crisis revealed defective supervisory policy activities. In the academic circles before the global financial crisis there was a widespread perspective that there was a conflict between the monetary policy and the prudential policy (inflation / financial stability), which justifies the division of monetary and prudential functions. Depending on this approach, in some countries there was a significant tendency for separation of certain functions. After the crisis, the weakness of this approach was clearly demonstrated by the fact that the result was the negation of macroprudence themes. Nowadays, consensus has been suggested that development of banking regulatory norms and their implementation in practice is a necessary condition for achieving the financial and economic stability of each
2017-06-20
SUPERVISORY POLICY PECULIARITIES OF THE NATIONAL BANK OF GEORGIA
Summary The 2007-2008 global financial crisis revealed defective supervisory policy activities. In the academic circles before the global financial crisis there was a widespread perspective that there was a conflict between the monetary policy and the prudential policy (inflation / financial stability), which justifies the division of monetary and prudential functions. Depending on this approach, in some countries there was a significant tendency for separation of certain functions. After the crisis, the weakness of this approach was clearly demonstrated by the fact that the result was the negation of macroprudence themes. Nowadays, consensus has been suggested that development of banking regulatory norms and their implementation in practice is a necessary condition for achieving the financial and economic stability of each
2017-06-20
∘ Tsotne Zhghenti ∘
THE SIZE AND DEVELOPMENT TRENDS OF INSTITUTIONS
Summary The institutional development is one of the actual topic in economics science. Directions of institutional development is depended on its structure and framework. Transformation of institutions is important for every economy, especially for developing countries. Institutions have a major role in our daily life. Economic processes are influenced as economic as non-economic institutions.Theyare different by their importance, structure and nature. So, economic analysis of institutions requires their arrangement into different groups characterized by specific features. To measure different institutions, firstly we must group them. The most popular distinction is formal and informal institutions. Also, an interesting question is who sanctions rule-breaking? Government or society?So internal vs external institutions is present as a second dimension in the institutional structure. First goal of research is to measure a size for each institutional type in transition/post-transition
2017-06-20
THE SIZE AND DEVELOPMENT TRENDS OF INSTITUTIONS
Summary The institutional development is one of the actual topic in economics science. Directions of institutional development is depended on its structure and framework. Transformation of institutions is important for every economy, especially for developing countries. Institutions have a major role in our daily life. Economic processes are influenced as economic as non-economic institutions.Theyare different by their importance, structure and nature. So, economic analysis of institutions requires their arrangement into different groups characterized by specific features. To measure different institutions, firstly we must group them. The most popular distinction is formal and informal institutions. Also, an interesting question is who sanctions rule-breaking? Government or society?So internal vs external institutions is present as a second dimension in the institutional structure. First goal of research is to measure a size for each institutional type in transition/post-transition
2017-06-20
∘ Maia Rokhvadze ∘
THE ESSENCE OF JOINED VENTURES, THEIR TYPES AND FORMATION STAGES
Summary In the article:” The essence of joined ventures, their types and formation stages” is discussed an effective type of enterprise – such as joined venture. It was spread after globalization. It was found that the capitals of many countries in the world are free, in another ones there is a lack of it, but they own their product and cheap working power. Such countries are connected to each other and under partnership are making joined ventures. Therefore both sides are the winners. In the article there are mentioned the types of joined venture.It might be founded by the different government or the companies of different countries. Georgia is a poor country, it doesn’t have free, huge capital, but has different products and unemployed population. So, Georgian government can get investors from different countries in foundation of joined venture In the article 7 types of joined venture formation are given: define the aims and profit with expenses,
2017-06-20
THE ESSENCE OF JOINED VENTURES, THEIR TYPES AND FORMATION STAGES
Summary In the article:” The essence of joined ventures, their types and formation stages” is discussed an effective type of enterprise – such as joined venture. It was spread after globalization. It was found that the capitals of many countries in the world are free, in another ones there is a lack of it, but they own their product and cheap working power. Such countries are connected to each other and under partnership are making joined ventures. Therefore both sides are the winners. In the article there are mentioned the types of joined venture.It might be founded by the different government or the companies of different countries. Georgia is a poor country, it doesn’t have free, huge capital, but has different products and unemployed population. So, Georgian government can get investors from different countries in foundation of joined venture In the article 7 types of joined venture formation are given: define the aims and profit with expenses,
2017-06-20
∘ Levan Silagadze ∘
GDP-DFI INTERRELATION IN POST-SOVIET STATES
Summary It is impossible to retain traditional economic state financing in the new states emerged after the collapse of the Soviet Union because there is no sufficient internal financial resources. It is impossible to introduce innovative economy with such efforts. The focus should be placed on attraction of foreign investments and simultaneously, on the development of innovative economy. The analysis given in this work reveals that in post-Soviet period, more investments are attracted in the states which are rich in resources but the same cannot be said about DFI % share in
2017-06-20
GDP-DFI INTERRELATION IN POST-SOVIET STATES
Summary It is impossible to retain traditional economic state financing in the new states emerged after the collapse of the Soviet Union because there is no sufficient internal financial resources. It is impossible to introduce innovative economy with such efforts. The focus should be placed on attraction of foreign investments and simultaneously, on the development of innovative economy. The analysis given in this work reveals that in post-Soviet period, more investments are attracted in the states which are rich in resources but the same cannot be said about DFI % share in
2017-06-20
∘ Salome Silagadze ∘
WOMEN’S EDUCATION – A NEW STARTING OF ECONOMIC DEVELOPMENT: PRIORITIES, OBSTRACLES, RECOMMENDATIONS
Summary Scientists all over the world are starting to notice a new, yet unexpected force in economics: women. Ladies are increasingly proving the importance of their participation in both national and global economics, by expending their income and their role in the global professional market. Although, the effect of womenomics on society is staggering and is growing day by day, none of the success would be positive if women had no education. Education still proves to be a timeless factor and a source of development. However, due to many unfortunate circumstances there are a number of females throughout the world that are unable to receive proper schooling. The article presented discusses the benefits of having erudite women in the society and gives details of why ladies abandon and/or are unable to get schooling. The analyses are based on noteworthy statistical data and studies that are being increasingly conducted by various acclaimed international organization. Additionally, the
2017-06-20
WOMEN’S EDUCATION – A NEW STARTING OF ECONOMIC DEVELOPMENT: PRIORITIES, OBSTRACLES, RECOMMENDATIONS
Summary Scientists all over the world are starting to notice a new, yet unexpected force in economics: women. Ladies are increasingly proving the importance of their participation in both national and global economics, by expending their income and their role in the global professional market. Although, the effect of womenomics on society is staggering and is growing day by day, none of the success would be positive if women had no education. Education still proves to be a timeless factor and a source of development. However, due to many unfortunate circumstances there are a number of females throughout the world that are unable to receive proper schooling. The article presented discusses the benefits of having erudite women in the society and gives details of why ladies abandon and/or are unable to get schooling. The analyses are based on noteworthy statistical data and studies that are being increasingly conducted by various acclaimed international organization. Additionally, the
2017-06-20
∘ Lika Tkemaladze ∘
EXCHANGE RATE REGIMES AND ITS DETERMINANTS
Summary In practice, the preffered exchange rate regime, particularly for developing and emerging market economies, has evolved considerably over the past couple of decades. Pegging the exchange rate to a strong anchor currency was popular in the early 1990s. But, the 1990 also saw a spate of capital account leading to collapsing currencies and underscoring the fragility of such fixed exchange rate regimes. In practice, central banks were willing to follow such a policy of benign neglect because they cannot be indiferrent to the value of their currency. When the value of the currency declines, authorities worry about both imported inflation and the balance sheet effects of an exchange rate depreciation on borrowers that have borrowed in foreign currency and suddenly find that debt more expensive to service. On the other hand, when a currency’s value rises, there is a loss of export competitiveness. The current study finds important trade-offs in the choice of exchange rate
2017-06-20
EXCHANGE RATE REGIMES AND ITS DETERMINANTS
Summary In practice, the preffered exchange rate regime, particularly for developing and emerging market economies, has evolved considerably over the past couple of decades. Pegging the exchange rate to a strong anchor currency was popular in the early 1990s. But, the 1990 also saw a spate of capital account leading to collapsing currencies and underscoring the fragility of such fixed exchange rate regimes. In practice, central banks were willing to follow such a policy of benign neglect because they cannot be indiferrent to the value of their currency. When the value of the currency declines, authorities worry about both imported inflation and the balance sheet effects of an exchange rate depreciation on borrowers that have borrowed in foreign currency and suddenly find that debt more expensive to service. On the other hand, when a currency’s value rises, there is a loss of export competitiveness. The current study finds important trade-offs in the choice of exchange rate
2017-06-20
∘ Zhuldyz Utegenova ∘
INNOVATIVE DEVELOPMENT OF THE ENTERPRISES OF THE PRODUCTION SPHERE OF KAZAKHSTAN, RUSSIA AND GEORGIA
Annotation.Innovative and technological modernization of branches of economy is a basis for formation and realization of strategy of innovative break without which existence of the civilized competitive state is impossible now. Rates and efficiency of development of the innovative sphere depend on the pursued investment policy which has to provide the conditions favoring to innovative development. Creation of the infrastructure favorable for functioning of the innovative sphere can be the best way of stimulation of innovations. In article experience innovative development of the enterprises of the production sphere of Kazakhstan, Russia and Georgia is considered, conclusions according to the carried-out comparative analysis are drawn. Keywords: innovative development, enterprises, production sphere, stimulation of innovations. The role of innovations considerably increased in modern economy. Without application of innovations it is almost impossible to create the competitive
2017-06-20
INNOVATIVE DEVELOPMENT OF THE ENTERPRISES OF THE PRODUCTION SPHERE OF KAZAKHSTAN, RUSSIA AND GEORGIA
Annotation.Innovative and technological modernization of branches of economy is a basis for formation and realization of strategy of innovative break without which existence of the civilized competitive state is impossible now. Rates and efficiency of development of the innovative sphere depend on the pursued investment policy which has to provide the conditions favoring to innovative development. Creation of the infrastructure favorable for functioning of the innovative sphere can be the best way of stimulation of innovations. In article experience innovative development of the enterprises of the production sphere of Kazakhstan, Russia and Georgia is considered, conclusions according to the carried-out comparative analysis are drawn. Keywords: innovative development, enterprises, production sphere, stimulation of innovations. The role of innovations considerably increased in modern economy. Without application of innovations it is almost impossible to create the competitive
2017-06-20
∘ Roland Katamadze ∘
GREAT DEPRESSION AND ITS CAUSES
Summary As economists have learned more and more about the importance of monetary and banking forces in both the contraction and recovery phases of the Great Depression, they have recognized the importance of sound macroeconomic policies in ensuring a strong economy. The Great Depression was not a failure of capitalism of or markets, but rather a result of misguided government policies-specifically, the Federal Reserve allowing the money stock to collapse as panics engulfed the banking system. If the Fed had stepped up to the plate and ensured that banks had ample reserves to meet their costumers’ withdrawals demand, the money stock would not declined, and the economy probably would not have sharply contracted. The Great Depression also demonstrated the importance of price stability. Deflation was an important cause of falling incomes and financial distress, as households and firms found it increasingly difficult to repay debts. Because debt contracts almost always specify
2017-06-20
GREAT DEPRESSION AND ITS CAUSES
Summary As economists have learned more and more about the importance of monetary and banking forces in both the contraction and recovery phases of the Great Depression, they have recognized the importance of sound macroeconomic policies in ensuring a strong economy. The Great Depression was not a failure of capitalism of or markets, but rather a result of misguided government policies-specifically, the Federal Reserve allowing the money stock to collapse as panics engulfed the banking system. If the Fed had stepped up to the plate and ensured that banks had ample reserves to meet their costumers’ withdrawals demand, the money stock would not declined, and the economy probably would not have sharply contracted. The Great Depression also demonstrated the importance of price stability. Deflation was an important cause of falling incomes and financial distress, as households and firms found it increasingly difficult to repay debts. Because debt contracts almost always specify
2017-06-20
∘ Ani Kimadze ∘
THE LEGAL AND INSTITUTIONAL SUPPORT OF SMALL AND MEDIUM BUSINESS IN GEORGIA
Summary The article discusses the environment of small and medium business development in Georgia. This environment is made by the state government and expresses the supporting policy for small and medium business. This work considers the legal and institutional maintenance by the Georgian government from 1990. In 1994 the law about entrepreneurs was adopted, in 1999 – the law about the maintenance of small enterprises and in 2000 was created a center of small business development and encouraging and in 2002 – a state help program for small and medium enterprises. It is said in that from 2004 the actual maintenance of small and medium business was stopped by the Georgian government and the law about “the maintenance of small business”was annulled. The government declared the liberal economic course that meant the creation of equal conditions for all enterprises. Scientists criticized this behavior of Georgian government, but till October, 2012 nothing
2017-06-20
THE LEGAL AND INSTITUTIONAL SUPPORT OF SMALL AND MEDIUM BUSINESS IN GEORGIA
Summary The article discusses the environment of small and medium business development in Georgia. This environment is made by the state government and expresses the supporting policy for small and medium business. This work considers the legal and institutional maintenance by the Georgian government from 1990. In 1994 the law about entrepreneurs was adopted, in 1999 – the law about the maintenance of small enterprises and in 2000 was created a center of small business development and encouraging and in 2002 – a state help program for small and medium enterprises. It is said in that from 2004 the actual maintenance of small and medium business was stopped by the Georgian government and the law about “the maintenance of small business”was annulled. The government declared the liberal economic course that meant the creation of equal conditions for all enterprises. Scientists criticized this behavior of Georgian government, but till October, 2012 nothing
2017-06-20
∘ Vakhtang Chkareuli ∘
THE OPTIMAL LEVEL OF ECONOMIC LIBERTY AND ITS IMPACT ON THE ECONOMIC DEVELOPMENT
Summary Fundamentally, there are only two ways of coordinating the economic activities of millions. One is central direction involving the use of coercion, so called the technique of the army and of the modern totalitarian state. The other is voluntary co-operation of individuals – the technique of the market place. A common objection to totalitarian societies is that they regard the end as justifying the means. Liberals disagree with this statement and argue that appropriate means are free discussion and voluntary co-operation, which implies that any form of coercion is inappropriate. Basically, individuals can be considered as economically free when a) property they acquire without the use of force, fraud or theft is protected from physical invasions by others, and b) they are free to use, exchange or give their property to another as their actions do not violate the identical rights of others. Economic freedom is a fundamental right of every individual to control his/her
2017-06-20
THE OPTIMAL LEVEL OF ECONOMIC LIBERTY AND ITS IMPACT ON THE ECONOMIC DEVELOPMENT
Summary Fundamentally, there are only two ways of coordinating the economic activities of millions. One is central direction involving the use of coercion, so called the technique of the army and of the modern totalitarian state. The other is voluntary co-operation of individuals – the technique of the market place. A common objection to totalitarian societies is that they regard the end as justifying the means. Liberals disagree with this statement and argue that appropriate means are free discussion and voluntary co-operation, which implies that any form of coercion is inappropriate. Basically, individuals can be considered as economically free when a) property they acquire without the use of force, fraud or theft is protected from physical invasions by others, and b) they are free to use, exchange or give their property to another as their actions do not violate the identical rights of others. Economic freedom is a fundamental right of every individual to control his/her
2017-06-20
∘ Shorena Tsiklauri ∘
FAMILY REGULATION OF FERTILITY IN THE SOUTH CAUCASUSCOUNTRIES
Summary Fertility level are quit low in South Caucasus region. One of the main reason of fertility decline is the changes in reproductive behavior: social life and self-activity are valuable more in the modern society than children and modern society are oriented to have a fewer children. In South Caucasus region an abortion is the main means of fertility control. In the most cases, main reasons of abortion is that they do not want more children. Nevertheless, we believe that there is some potential in the South Caucasus countries and a properly designed demographic policy will enable to change the reproductive
2017-06-20
FAMILY REGULATION OF FERTILITY IN THE SOUTH CAUCASUSCOUNTRIES
Summary Fertility level are quit low in South Caucasus region. One of the main reason of fertility decline is the changes in reproductive behavior: social life and self-activity are valuable more in the modern society than children and modern society are oriented to have a fewer children. In South Caucasus region an abortion is the main means of fertility control. In the most cases, main reasons of abortion is that they do not want more children. Nevertheless, we believe that there is some potential in the South Caucasus countries and a properly designed demographic policy will enable to change the reproductive
2017-06-20
∘ Medea Kharaishvili ∘
THE INEQUALITY OF LIVING STANDARDS OF THE POPULATION AND ITS INFLUENCE ON A HUMAN CAPITAL FORMATION
Summary The paper reviews the living standards of the population and assesses the factors that affect it: population revenues, expenditure, inequality in the country, and the variability of GDP. The level of life of the population is presented in four main directions: well-being, normal level, poverty, beggary. The article analyzes poverty indicators: median consumption and Gini coefficient; The relative poverty index is considered, its dynamics is estimated. The variable analysis of the relative poverty index is given as on a whole country level, as well as by urban and rural population. The main causes of the differentiation of the indicators are presented in the work, explaining the variability factors of the Gini coefficients. Poverty levels and Gini coefficients in Georgia are comparable to those in the Central, South-Eastern Europe and CIS countries. Poverty reduction in Georgia is considered to be one of the major challenges in Georgia, and it is suggested to reduce it. The
2017-06-20
THE INEQUALITY OF LIVING STANDARDS OF THE POPULATION AND ITS INFLUENCE ON A HUMAN CAPITAL FORMATION
Summary The paper reviews the living standards of the population and assesses the factors that affect it: population revenues, expenditure, inequality in the country, and the variability of GDP. The level of life of the population is presented in four main directions: well-being, normal level, poverty, beggary. The article analyzes poverty indicators: median consumption and Gini coefficient; The relative poverty index is considered, its dynamics is estimated. The variable analysis of the relative poverty index is given as on a whole country level, as well as by urban and rural population. The main causes of the differentiation of the indicators are presented in the work, explaining the variability factors of the Gini coefficients. Poverty levels and Gini coefficients in Georgia are comparable to those in the Central, South-Eastern Europe and CIS countries. Poverty reduction in Georgia is considered to be one of the major challenges in Georgia, and it is suggested to reduce it. The
2017-06-20