კონფერენცია

∘ Vasil Khizanishvili ∘
GERMAN SOCIAL MARKET ECONOMY AND THE STATE ROLE IN THE FUNCTION OF THE SESTEM

Summary

The social market economy is a model of social-economic development of the Federal Republic of Germany. In the above mentioned model the main task of the state is that without privileges to make a guarantee for the egsistence of free and fear competition.

Besides that, the state ensures(guarantees) through a distribution the worthy existence of individual citizens and cares for the equality of their chance(possibility). The social market economy with its cornerstones (freedom, competition, property, responsibility and solidarity) creates prosperity for everything.

The model of the social market economy is the competition system. It is based on the democratic legal principles of state, according to which must rule not the people but the laws. Because of this the political and economic power is successively limited, the individual decision-makers acquire the non-authoritarian spaces of the personal independence. Thus(Consequently), the regulatory policy of the State has the responsibility in order to guarantees a legal and organizational conditions of the functional competition.

Today the German regulatory system stands something a postmodern socio-economic challenges. Besides of(In addition to) the reform to(of )the labour market, it needs the revitalization of the comprehensive and sustainable regulatory policy of the social and economic system. Finally, we are talking about the transformation of the model of the social market economy, suitable for the 21st century. This renewal should takes into account the changed environment, the development of service and telecommunications, as well as globalization.

The social market economy provides the answers about the question of our time.Without the trade barriers, the free borders create a prosperity for all not only in Germany, but also in the rest of the world. The modern competition law(Wettbewerbsrecht) provides the answers to the digitalisation challenges. Social policy, that is based on the personal responsibility and not on the paternalism, (with cultural aspect) creates an justice in social security sphere between generations. Herewith, it is achievable to get the important benefits by experience of the successful market economy reforms. In this way, it’s possible to open up a new chances(opportunities) for Germany, Europe and the world, if will be loyalty to the principles of the social market economy. If the necessary reforms will be boldly implemented, it is possible that the social market economy would be all-embracing and sustainable in the perspective. As a result, to it stand a chance, that also in 21 century to stay as a dominant social and economic model in Europe and all over the world.

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

E ISSN 2587 - 4691	∘ Vasil Khizanishvili ∘ GERMAN SOCIAL MARKET ECONOMY AND THE STATE ROLE IN THE FUNCTION OF THE SESTEM Summary The social market economy is a model of social-economic development of the Federal Republic of Germany. In the above mentioned model the main task of the state is that without privileges to make a guarantee for the egsistence of free and fear competition. Besides that, the state ensures(guarantees) through a distribution the worthy existence of individual citizens and cares for the equality of their chance(possibility). The social market economy with its cornerstones (freedom, competition, property, responsibility and solidarity) creates prosperity for everything. The model of the social market economy is the competition system. It is based on the democratic legal principles of state, according to which must rule not the people but the laws. Because of this the political and economic power is successively limited, the individual decision-makers acquire the non-authoritarian spaces of the personal independence. Thus(Consequently), the regulatory policy of the State has the responsibility in order to guarantees a legal and organizational conditions of the functional competition. Today the German regulatory system stands something a postmodern socio-economic challenges. Besides of(In addition to) the reform to(of )the labour market, it needs the revitalization of the comprehensive and sustainable regulatory policy of the social and economic system. Finally, we are talking about the transformation of the model of the social market economy, suitable for the 21st century. This renewal should takes into account the changed environment, the development of service and telecommunications, as well as globalization. The social market economy provides the answers about the question of our time.Without the trade barriers, the free borders create a prosperity for all not only in Germany, but also in the rest of the world. The modern competition law(Wettbewerbsrecht) provides the answers to the digitalisation challenges. Social policy, that is based on the personal responsibility and not on the paternalism, (with cultural aspect) creates an justice in social security sphere between generations. Herewith, it is achievable to get the important benefits by experience of the successful market economy reforms. In this way, it’s possible to open up a new chances(opportunities) for Germany, Europe and the world, if will be loyalty to the principles of the social market economy. If the necessary reforms will be boldly implemented, it is possible that the social market economy would be all-embracing and sustainable in the perspective. As a result, to it stand a chance, that also in 21 century to stay as a dominant social and economic model in Europe and all over the world.