კონფერენცია

∘ 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 important for the country.

For effective investment policyit is necessary to reduce the difference between foreign direct investment and domestic investment. Equally important is the mobilization of the direct foreign investments to be implemented in the real sector of the country.

Based on statistical data a number of positive steps were done to attract foreign investments in recent years, but there are still many things to do:

- There is still no stable legislative environment in the country yet. Frequent legislative changes threaten investors;

- The process of reform of the Code of Labor reform is quite complicated;

- New regulations in postal services and labor migration;

- There is no unified state policy for foreign investments in Georgia, including all sectors of economy.

The activities of the National Investment Agency established in order to facilitate attracting investments in Georgia should be more transparent, which will be more efficient in carrying out its activities.

It is necessary to carry out such monetary and fiscal policy in the country, which will improve the investment environment in Georgia and will increase the trust of investors more.

It is necessary to take such measures that will promote science, technology and innovation in the country.

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	∘ 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 important for the country. For effective investment policyit is necessary to reduce the difference between foreign direct investment and domestic investment. Equally important is the mobilization of the direct foreign investments to be implemented in the real sector of the country. Based on statistical data a number of positive steps were done to attract foreign investments in recent years, but there are still many things to do: - There is still no stable legislative environment in the country yet. Frequent legislative changes threaten investors; - The process of reform of the Code of Labor reform is quite complicated; - New regulations in postal services and labor migration; - There is no unified state policy for foreign investments in Georgia, including all sectors of economy. The activities of the National Investment Agency established in order to facilitate attracting investments in Georgia should be more transparent, which will be more efficient in carrying out its activities. It is necessary to carry out such monetary and fiscal policy in the country, which will improve the investment environment in Georgia and will increase the trust of investors more. It is necessary to take such measures that will promote science, technology and innovation in the country.