Some peculiarities of economic system transformation in Georgia (ABSTRACT)

Paata ModebadzeI

The major problem of modern economy is economic growth. State promotes economic growth by means of structural policy and unity of long-term measures aimed at production growth, improvement of branch structures and export of finished products.

Structural modernisation should become a priority of structural transformations in Georgia.
In performing structural transformations in Georgia, a state should play the role of the factor that makes up for weak points of market economy. When a country is unable to avert crisis by means of market mechanism regulation at fixed time, then it strengthens direct and indirect influence on national economy. The role of state is observed in purposeful capital investment in particular branches, in support of firms’ risk activities and encouragement of purchase of imported modern equipment as well as in export. Balance between open economy (without it competition on internal market is limited and scientific progress becomes senseless) and protectionism is a main pre-condition for the development of Georgian economy. Preservation of old production structure is impossible but at the same time we should take into account the fact that formation of new branches depends on many factors. Special attention should be paid to economic traditions of the given country, in particular, to integration, interconnection with alliances of regional economies, participation in international projects, etc.