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 difficult to strongly estimate the investment environment in Georgia. For the investment environment evaluation it is necessary, processin and analyse 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 farming etc. It is important to consider the country's economic sovereignty issue whem attracting foreign investments in Georgia.
It is important for sustainable economic development of the country to eradicate disproportions in regional aspect. This requires 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 policy it 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.
In order to evaluate the investment environment in Georgia it is necessary to study the economic potential of the country, organizational-legal status, financial resources, social sphere, political environment, general structure of the economy etc.
Today, many forms and methods of foreign investment in the world are used. However, we will focus directly on foreign investments, as one of the major forms of inflow of foreign capital in Georgia is direct real investment.
Important problem of economic reform in Georgia is to attract foreign investments and use then rational. The solution to this problem depends on the real growth of the Georgian economy and the level of its involvement in the world economy.
It is important to pay attention to the motivation of foreign investors, which is most relevant in the modern stage. First of all, the resources invested in the country are less expensive than the actual resources. Conquer new markets and more.
When talking about the impact of foreign investments on our country's economy, there are a number of factors to consider: first of all how the country's economy is developed, what is the quality of development of market mechanisms, how well is regulated legislation base and other. Depending on which sector of the economy is invested and what forms and methods of investment are used, the economy will be different. Influence of investments can be expressed: in the growth rate of the economy, the recovery of investment activity, the growth of technological progress, the development of country infrastructure, the effective use of labor resources, etc.
The positive effect of investment is that it leads not only to the development of the sector where investments are made, but also the development of neighboring sectors.
In attracting investments, in the country the following facts should be considered:
1. What socio-economic policies are imposed on foreign direct investments.
2. Promote investment business.
3. Economic factors.
In order to attract foreign investments in the country, it is necessary to create favorable climate and formulate mechanisms for its efficient use. When the country experiences its own resource deficit, the only way to make internal investments is to attract direct foreign investments. It is also important to note what investment policy is being implemented by the country, because it depends on it how many investments will come into and how they will be effectively used. Effective investment policy determines the creation of attractive investment climate.
When it comes to attracting foreign investments in the first place it is important that these investments take place in the real sector of the economy. Overall, the effectiveness of foreign investments depends on the quality and quantity of attracted investments in the country. It is also important that investments provide new technologies in the country, introduce innovations, consider national interests, and provide ecological safety. Taking into consideration everything it should be very important to determine the correct investment policy, as the market mechanisms are always in favor of our country's interests. The state must support investments in the areas and regions the development of which is the prerequisite of economic growth of the country. It is impossible to talk about their efficiency without the knowledge of scientifically substantiated investment policy.
In attracting investments, it is no less important to give foreign investors legal guarantees that their investments will be protected by law. The main objective of support of FDI is the establishment of an institutional environment in which the private sector will be free to make decisions, and the right to property will be reserved.
The private sector must be free to create an environment that facilitates direct foreign investment, and the government's activities must be transparent and effective. For instance, it is important to establish an institutional environment where property rights are maximally reserved corruption levels are low and others.
Georgia is an attractive country for foreign investments due to the following circumstances: attractive economic environment, liberal economic reforms, liberal tax code, active privatization of state property, strategic geographical area, as well as the fact that Georgia is a country with ancient culture and traditions.
When we talk about attracting foreign investments in Georgia, it is important to pay attention to the World Bank's research, one of its projects "Doing Business" has been studying most of the world countriesover many years in terms of assessing favorable environment for business. According to the report of the 2017, Georgia is in the 16th place among the 190 countries in the simplicity of doing business. Georgia has advanced with eight positions in comparison with the previous year. The reason for this promotion is the reforms implemented in 2015-2016, concerning property registration, in particular improving in Tbilisi land management, plotting on the map private lands this has improved Georgia's position in terms of property registration simplicity in the world and setting on the third place.
In Georgia the protection of small investors has grown, too due to the growth of shareholders' rights and role in corporate decisions, resulting the seventh place.
The improvement of the electronic processing system enabled us to introduce export and import documents more quickly, as well as the introduction of preliminary electronic documents. All of this brought Georgia to the 54th place in the direction of foreign trade simplicity. In terms of the tax system Georgia occupies the 22nd position.
Due to the change of the research methodology, Georgia retreated 9 positions in 2016 and took 24th place, though in 2006 it was ranked 98th.
According to the data of the National Statistics Office of Georgia, the volume of direct foreign investments in Georgia amounted to $ 1645 million in 2016, which is 22% higher than the previous year's data.
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 countryiet. 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.