Development prospects of the competitiveness of Georgian economy and system limitations in the condit (ABSTRACT)

Alexander Pularia

The article examines the development status of the competitiveness of Georgian economy in transition period. In the conditions of transition economy, factor potential is the first to develop and advance.

In this context, efforts of the Georgian government and civil society should be, mainly, aimed at the following: attraction and efficient use of foreign capital including direct foreign investments; liberalisation and expansion of external economic ties; successful co-operation with international organisations and active participation in regional unions. According to M. Porter’s classification, Georgia is in the first stage of competitiveness with development of country’s factor potential playing the main role. Activation of foreign capital interest, expansion of external economic relations and in particular, assistance of international organisations fully depends on the specialisation of Georgia in international labour division that consists in our country’s performance of the function of energy resources transport corridor in the Caucasian region. Realisation of competitiveness possibilities in Georgia depends on the overcoming of system limitations in the economy of the country. Their elimination will provide a substantial stimulus for the development of competitiveness in the conditions of globalisation.